Rather than IT departments storing, maintaining and housing servers on prem, they may choose to use a colocation provider to house their equipment. This is often times cheaper and more efficient than renting or operating servers in house. Bottom line is to do your research before choosing a provider. The advantages of this service far outweigh the disadvantages.
Read the full article here:
http://www.techrepublic.com/article/colocation-providers-solve-problems-the-cloud-cant/
