Colocation

As a general rule, colocation (or Colo) alludes to the foundation of a shared facility to store IT equipment and particular hardware of different individuals or companies.
In high-frequency trading (HFT), colocation alludes to a dedicated space inside a data center having a place with stock exchanges. Its primary purpose is to find PCs owned by HFT traders and firms in similar building as the stock exchange servers.
Thusly, the HFT companies and traders are able to receive current market prices sooner than the remainder of the public. Albeit the difference is in the order of nanoseconds, HFT firms frequently pay a large number of dollars for such an advantage.
At the end of the day, the high-frequency traders use colocation to gain an advantage with the physical vicinity between their PCs and the stock exchange servers.
The concept of colocation gained foothold in the past decade, bringing forth another sort of business. Some say that the developing demand for colocation services makes sense of why stock traders are making greater data centers close to major stock exchange servers.
For example, the previous New York Stock Exchange (NYSE) facility was domiciled in a space of roughly 4600sq feet. Nonetheless, the new data center consumes a space of around 39800sq feet, making it nine times bigger than the previous one.
Other than the trading environment, the term colocation may likewise allude to specific colocation centers (otherwise called carrier inns). These are data centers that rent space, professional hardware, bandwidth, and other IT services. Such a specific service is offered not exclusively to different companies yet additionally to individual customers.
These data centers offer enclosures, open racks, and private suites for institutions that require advanced security highlights. At last, colocation is an amazing option for more modest firms as it gives them the vital infrastructure without the need to build all that without any preparation.