From my head on colocation services
Assuring that a designated employee is available at all times of the day and night to support those functions is a challenging task. More and more companies are relying on server colocation to provide that support. When a company chooses server colocation, it hires another company to house and host its servers and related support functions. The server colocation facility offers a secure environment supported by back up power systems, extra bandwidth and dedicated personnel. One of the main reasons a small company chooses a colocation option is because of the significant cost to create and maintain back up power alternatives.