Server colocation can save money

Businesses are moving more to server colocation. Back a few years, it was more common to try to host servers yourself. Companies would build expensive data centers in house. There were several reasons that in house hosting was preferred.
Early on, server colocation companies had many service interruptions. Often there was equipment failure as these companies launched. Additionally, with such growth during the Internet boom, many server colocation companies over committed. They were all hurting for revenue and they needed to get business any way they could. As the dot com era died, so did many hosting companies that were not able to provide good service.
What is the current state of server colocation services? There are certainly still companies that over promise and under deliver. All in all, the solid server colocation companies shine through from those who will not provide good service. Also, the technical issues that were common in the early days are gone. Equipment like core routers, load balancers and firewalls are now in very stable releases.
A new comer to the server colocation industry is virtualization. With virtualization hosting companies are able to deliver much more reliable server hosting. This has brought the costs of server hosting down. While you will still find in house data centers at the big companies, people are generally more secure with the idea of outsourced colocation.

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