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For those new to the term, colocation hosting refers to the system whereby multiple businesses share a common data center infrastructure in order to save money on their computer system mainframe operating costs. Colocation hosting also offers its customers greater bandwidth capacity and a quicker Internet access response time. In addition, having IT facilities in the hands of professionals frees a company to concentrate more of its time and money on its core business. The colocation hosting company also takes over all regular IT system maintenance and upgrades. All the customer does is provide and manage the actual computer hardware and pay rent for its alloted space.

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