Colocation is an advantageous infrastructure model for any company concerned about supporting its data storage needs. Among the variety of data center, server placement and management options available, it's the one that directly marries an organization's desire to maintain control over its equipment with its need for better network and security support.

In a colocation environment, an organization leases data center space for servers it owns. The data center provider offers server racks, power, bandwidth and physical security. The organization retains control over server management, unless it chooses to outsource these needs to the provider as well. 

Simple, right? Because the colocation business is booming, it attracts a lot of upstart providers. Not all of them offer the same level of service. That's just the reality of the situation. Additionally, one provider's solutions may be right for one organization and match up poorly with another's needs. Misfiring on this selection can be a costly decision, not only in wasted capital expenses but potentially down the road if business continuity is affected, according to ComputerWeekly. 

Determining the most pressing concerns is a company's first step. For example, a company with its central location in an area more susceptible to natural disasters should look for a colocation facility in a safer area. Connectivity is another issue. While every business wants to stay online, some may be able to afford less than 99.999 percent uptime ("five-nines uptime") in exchange for a more cost-effective colocation plan. A financial services firm or federal entity may need to pay a premium to ensure servers are always available. It's simply a matter of weighing financial costs with the price of availability.

Security is a near-universal concern, while many organizations may be dealing with increased complications related to industry compliance, according to Data Center Knowledge contributor Bill Kleyman. A company needs to make sure its colocation provider is certified for adherence to compliance standards. A variety of physical and facility safeguards can provide additional protection, which may be the way to go if a company's colocation center is in a more populated area.