Colocation vs. Dedicated

Colocation is the term given to renting rackspace from a datacenter or host which provides you with an internet connection, bandwith, and power to run your own server from their hosting location.

Colocation means you provide your own server and can configure it any way you want, but ultimately makes you responsible for your hardware and any failures. Also unless you pay for management you need to know how to run your own server and do things like backups and configurations of OS and things like that.

Unlike colocation, Dedicated servers are the responsibility of the hosting provider. They will usually manage the box for you and help with installations and reboots. They are also responsible for hardware failures.

Usually you are better off with a Dedicated Server or VPS unless you have vast experience and can manage your own server and it's hardware.

Hope this helps