Colocation refers to hosting your own server on a datacenter where you yourself completely own the hardware, the datacenter just provides the necessary housing, the required internet bandwidth and ample power to keep your server going and up. There are a lot of advantages one can gain from collocating instead of leasing, various of them even applying to the reseller hosting platform.
When you colocate a server, you donft have to pay lease for the server hardware. This allows you to cut costs quite a bit and if youfre a reseller hosting provider, send those savings down onto customers. Since you own the hardware, it also allows you to have in-depth knowledge about it and deploy your reseller hosting services suited to it. Without the proper deployment of services, one canft expect any significant profit, can they?
Colocation allows webmasters to cut quite a bit of the hefty cost usually associated with hosting a dedicated server on your own. Itfs a great initiative for newbies to start off suing.