Blog · WebJi® India

Colocation vs Dedicated Server

Quick answer: Colocation means you buy the server and rent space, power and a network port in someone else's data centre. A dedicated server means you rent the whole machine, including replacement parts. Choose colo if you keep hardware for three years or more and can staff it; rent if you need a working machine this week.
✓ In business since 2005✓ INR + GST billing✓ 24/7 Email Support — avg reply < 60 min
Soft evening clouds reflected in the glass facade of a modern office building at dusk — colocation vs dedicated server

Colocation or dedicated: the one-line choice

Choose colocation if you already own the hardware and will keep it for three years or more. Choose a dedicated server if you want a working machine this week and the provider to replace failed parts. The bill, the maintenance and the risk all move with that one decision.

Server colocation hosting is rented space, power, cooling and a network port for a machine you bought. A dedicated server is the whole machine, rented monthly, with the hardware on the provider's books. Neither is faster by nature; the difference is who pays for the metal and who gets the 2 am call.

What each one includes

The table is the short version of both contracts. Everything after it is a detail of one row.

FactorColocationDedicated server
Hardware ownerYouProvider
Upfront costServer purchaseNone
Monthly billRack unit, power, bandwidthOne rental fee
Failed diskYour part, your visitProvider replaces it
Hardware choiceAnything you shipProvider's menu
Setup timeShipping plus an install visitSame day to a week
Physical accessEscorted, by appointmentNot needed
GST18% on the facility invoice18% on the rental invoice

The last row matters in India. Both attract 18% GST, but only the colo invoice also carries the hardware purchase, which is a capital asset in your books rather than a monthly cost.

The money: capex plus rack rent

Colocation pricing has two parts: the server you buy once, and the rack you rent every month. Rental is one number. WebJi prints ₹4,999/month plus 18% GST for a Xeon E3/E5 class machine with 32 GB RAM on the dedicated server hub, read on 30 October 2026.

LineColocationDedicated rental
HardwareBought onceIncluded
Rack unitBilled per UIncluded
PowerBilled per amp or kWIncluded
BandwidthBilled per Mbps or TBIncluded per plan
Remote handsPer visit or per hourSupport included
Minimum termOften 12 monthsMonthly

No colo facility we read publishes a rack price on its own website, so a table of invented ranges would help nobody. WebJi quotes colocation by email rather than printing a number, because the rack unit, the power allowance and the remote-hands terms decide it.

Remote hands is the line nobody budgets for

In a colo, a failed disk is your problem unless you pay the facility to touch it. One provider publishes the rate: A$75 per 15 minutes inside business hours and A$150 outside, with a business-hours installation free, on its dedicated versus colocation page read on 30 October 2026.

Multiply that across a year. Two disk swaps and one power supply change is roughly an hour of hands plus three visits. On a rented server the same events cost nothing beyond the monthly fee, which is why rental usually wins for a single machine.

Power and rack space: what you actually rent

A 1U server occupies one rack unit, one power feed and one network port. A 2U box with redundant supplies occupies two units and two feeds, so the power line doubles while the rack line does not. Facilities bill the higher of allocated power or measured draw.

  • Rack unit: billed per U, usually with a minimum block.
  • Power: billed per amp or per kW, with a hard cap you should get in writing.
  • Bandwidth: a committed rate plus burst, or a monthly terabyte allowance.
  • Cross-connect: a one-time and a monthly charge for each carrier or peer.

Can you colocate a single server?

Yes, single server colocation exists, and it is usually poor value. The minimum commitment is commonly a quarter rack or a fixed power block, so one 1U box pays for space and amperage it never uses. Add the install visit and the spare disk you keep on a shelf.

The arithmetic turns at about three servers. Below that, a rented dedicated machine gives the same isolation for one predictable line. Above it, the rack, the power and the switch you already own start to earn their keep.

Colocation in India: what changes

Three things differ from the US guides. The invoice carries 18% GST on the facility charges. The data centre is a business address you may never visit, so remote hands is not optional. And the city you choose sets the latency your users feel, which matters more than the name on the door.

Ask for the power allowance in writing, the remote-hands rate per hour, and the notice period for access. Those three numbers decide the real monthly cost more than the rack rate does. The DPDP Act 2023 also applies to the personal data on that machine, wherever the rack sits.

Where WebJi fits

WebJi® rents dedicated servers from ₹4,999/month plus 18% GST and hosts them in Indian data centres. It does not publish a colocation rack price and has no walk-in colo cage; a colo request is quoted by email before payment.

If you are still working out what colocation means, what colocation means explains the model without the sales language. Ask for a quote with the machine you own or the specs you need; the desk answers email 24/7 in Hindi and English.

Frequently Asked Questions

What is the difference between colocation and a dedicated server?

In colocation you own the hardware and rent space, power and a network port. With a dedicated server you rent the whole machine, and the provider replaces failed parts. The monthly bill, the maintenance and who gets called at night all follow from that.

Is colocation cheaper than a dedicated server?

Only over several years. You buy the server once, then pay rack, power and remote hands every month; a rental is one fee with parts included. Below about three servers the minimum rack charge usually makes rental cheaper.

Can I colocate a single server?

Yes, but most facilities have a minimum commitment of a quarter rack or a fixed power block, so one 1U box pays for space it does not use. At that scale a rented dedicated server is usually the better buy.

Who fixes the hardware in colocation?

You do, or you pay the facility for remote hands. One provider publishes A$75 per 15 minutes in business hours and A$150 outside. Keep a spare disk and power supply on site to cut the number of visits.

What does colocation cost in India?

It is quoted, not listed: rack unit, power allowance, bandwidth, cross-connects and the remote-hands rate, plus 18% GST. Ask for the power cap in writing, because it decides how much hardware you can actually run in the space.

Does WebJi offer colocation?

WebJi rents dedicated servers from ₹4,999/month plus 18% GST. It does not publish a colo rack price and has no walk-in cage; a colocation request is quoted by email before payment.

Need help with this?

WebJi® support does it for you — free. Talk to our Jaipur team →