Colocation is defined as the moving or placing of things together, sometimes implying a proper order. In the case of a business and technology company, colocation is the renting of physical space on a service provider’s premises.

Data center colocation allows a small or mid-sized business to save money by storing and running parts of its IT infrastructure (servers) off-site instead of building and maintaining a large dedicated data center in-house.  In the case of a small business, their servers are owned by the business but are colocated to save money in overhead costs incurred by things like cooling, physical security or insurance.  This will save them a lot of money and help their business get things going much easier.  They will have less problems and not have to worry about not having to deal with compliance standards.