Companies that require complete control over their server configuration opt for collocation services. Typically, these companies place their servers on the premises of a third company, and then these are connected to the Internet. Some companies also offer to “build” servers for those who do not already have them. There are certain factors that need to be assessed prior to handing over the server to such a company. First and foremost, the location where the server is going to be placed needs to be checked. This is important, as the data in the server might be crucial and as such should not face any natural disasters.

Security is an important aspect, especially in cases where only authorized personnel are allowed access to the server. The information may be vital to a company, and any leak could cause irreparable losses.

The rate at which data is transferred, i.e., the bandwidth, should be at an optimum speed. The host should also have a “back up” plan in case there is a break in the Internet connectivity. Internet protocol, commonly called IP, is the connectivity of the machine to the Internet. In instances where there are game servers, multiple IPs are required. This increases the cost and thus should be considered before selecting a collocation service. When a company provides hosting services, it is essential that it has experienced hands with sound knowledge of technology in case of any difficulty. They must be experts in troubleshooting.

Some companies use the services of two different companies, where the server is hosted with one and the other provides the Internet connectivity. Here, there are issues with cross-connection fees, which can complicate the matter. The host must be able to provide uninterrupted connectivity without any major hiccups. Prior to signing the contract, the terms of service, charges, uptime guarantees [the amount of time the site is online in a month] and the duration must be discussed in detail.