Colocation gives you total control over the specification and deployment of your hardware, you can easily improve your redundancy, move your system, do as you please. Dedicated servers (or renting) is normally acheived by your provider taking a finance agrement out on the hardware on your behalf, this obviously incurs interest which is included in the cost. Dedicated serverproviders may be limited in terms of what they can provide (i.e they may not offer leading edge technologies or allow you to install additional drives, USB devices or PCI-X cards. The choice is a personal decision depending on your needs
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