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A major advantage of colocation is that the business using the service still owns all of its own infrastructure if it so chooses, which ultimately keeps that business owner in charge, regardless of where the server is kept. For instance, if the business wants to install their own network attached storage (NAS) device to backup one or more server’s data, they can do so. If a firewall and router hardware needs to be installed, it can be done. If they want to set up a virtual local area network (VLAN) so that traffic between machines is faster,they can.

A major benefit involved with colocation is the convenience of not having to hire and maintain an on-site IT staff, alleviating concerns and allowing more time for business owners and managers to focus on running their business. Additionally, this practice frees up capital that would have be spent on hiring and maintaining an IT department.