With the continuously growing IT industry, it becomes a hectic task to manage and dedicate time. Things become even more difficult and tiresome when you own a company of your own. Managing your own data centers is one of the most hectic tasks popping at the top of my mind. But selecting a third party vendor is not an easy one too. Yes, sounds like a tricky job right?

But not to worry anymore, nowadays colocation services come in many varieties and all are readily available in the market. 

retail vs wholesale colocation

Colocation hosting India is gaining popularity due to its trustworthy and easy-going facilities which it provides. Server colocation means the process of deploying and hosting an organization owned server within a third-party managed environment. But now the term server colocation is divided into many other shades.

The colocation practice is very realistic universally but differs in the way in terms of the distribution of the service. So the two major divisions are the traditional wholesale colocation data centers and the other one is the newer retail colocation data centers. Now it depends on the company that what kind of data center capacity they want for their enterprise. Whether they want a simple retail colocation service or anything which is more widely based as a wholesale colocation service.

Market structure of colocation service India

There is a widely spread misconception that there is more demand for retail colocation services. But this is not true at all. It all depends on the demands and the current requirements of the company. Although such demands vary as the infrastructure of the company varies from time to time.

colocation hosting India

Companies make a research for the colocation service accordingly. Mostly they start with looking for a retail colocation hosting India. The segmentation of the data center colocation market is in a way that shows the domination of retail colocation services. This colocation segment holds the major market share due to the increased data center outsourcing service even among the small businesses. There are so many limitations on the server space that puts up real constraints when a business thinks of expanding.

There are so many sectors that have shown late interest in storing their data over retail colocation service. Nature if their database of being so sensitive and critical is the major reason for them being so skeptical. But after observing the success stories of either of the two i.e. retail or wholesale colocation service India many of the medical or health care industries have started to trust them.

Apart from the major adoption of data center colocation, there are other reasons as well as merging the colocation centers. When the small and medium colocation centers merge they lead to cost-saving. No security is compromised as adherence to the compliances that further drive the growth of the market. 

Differentiating factors between retail and wholesale colocation services

The basic purpose and designing of a colocation data center are done in the same way. A business rents space for servers and other computing resources like computing hardware. Due to the popularity of colocation services, there are now several options in the colocation hosting India market. It has helped people to question more and bringing up better solutions to manage data within a corporate setting. 

Both retail and wholesale colocation service understands the importance of business continuity. And during such competitive times, outsourcing services is the best option. This is because no one wants to keep their valuable employees busy in tasks that are not anything related to their core competency. Thus there has been seen a major shift towards both of the colocation services from on-site data management. 

Both of them have their own set of advantages and drawbacks. It would be wise to consider all the differences and tradeoffs before selecting the one. 

-         Retail colocation service- 

In a retail colocation service, the arrangement is as such where customers can lease space within a data center. It includes IT requirements be it a small individual rack or even a large caged-off area. This is the main differentiating factor between a retail and a wholesale colocation as in wholesale colocation one rents the complete data center. But not all companies require that much space but at the same time don’t want to keep the database on-site. Retail colocation is the best service that suits their kind of business infrastructure. Retail colocation is also preferred if a company is running out of budget. 

Retail colocation can be considered for the following kinds of business-

1. Businesses that don’t require much space or for a very short time

2. Businesses that cannot afford to rent the complete data center

3. Businesses that need to keep their data secured across various geographical locations

4. Businesses that have to increase capacities for an alternate facility

5. Businesses that do not prefer to appoint an IT staff on-site to manage server space

Wholesale colocation service- - 

In a wholesale colocation service, the arrangement is as such where customers can lease space within a data center. But unlike retail colocation, customer needs to rent the whole data center this time. There are many big firms that cannot compromise on the server space. These are mostly those organizations that deal with some critical data like the health care sector or banking sector. In a wholesale colocation service, there is a single owner selling space and a single center for power and cooling system.

When the enterprises are too big and interconnection is not required, wholesale colocation is the best kind of colocation service for them. But a wholesale colocation data center service does not take the responsibility of managing the mechanical and electrical system. Thus this needs to be managed by the customer himself. 

Retail colocation can be considered for the following kinds of business-

1. Businesses that don’t require much of a network diversity

2. Businesses that desire complete autonomy

3. Businesses that require a large amount of power usage

4. Businesses that don’t have any budget constraints

5. Businesses that have much security issues

Where does Wholesale colocation has an edge over retail colocation?

Both retail or wholesale colocation have their own set of services and advantages. Where retail provides you with short-term flexibility at low initial expenditure, wholesale is a service been rented for a long time. Wholesale colocation gives you more control and thus can improve the long term ROI (Return On Investment). 

Some might wonder that when we are already renting the server space from a third-party then why to worry about the autonomy factor. But you will understand the importance of control over your server space and bandwidth when your business will go under customizations. 

Wholesale colocation is considered to be the best when you are expecting a good ROI. Hence, the investment that wholesale colocation demands seem to be justified here.  


Now when you have gone through the differences and advantages of both, selecting one for your own enterprise is not that big of a confusion. When you sign up for a retail colocation service check carefully all the factors with your colocation service provider. This is the most important thing as not all belief in rendering the services they have promised for. But if you are looking for a long term trusted service then CloudOYE won’t make you regret even once.

Also Read: Tips to Choose the Best Colocation Plans for your Business