Colocation allows you to place your server machine in someone else’s rack and share their bandwidth as your own. It generally costs more than standard Web hosting, but less than a comparable amount of bandwidth into your place of business. Once you have a machine set up, you take it physically to the location of the colocation provider and install it in their rack or you rent a server machine from the colocation provider. That company then provides an IP, bandwidth, and power to your server. Once it’s up and running, you access it much like you would access a Web site on a hosting provider. The difference being that you own the hardware.