co-lo or rent

[Serverius]

If you plan to place a lot of servers i think its best to own them yourself. Benefit of renting however is someone taking care of the servers..

 

[SkylarM]

Prefer to colocate. Owning your hardware gives your business equity that you don't have when renting.

 

[RisingFog]

If you're starting off in the web-hosting business, Renting is definitely your best bet. Co-location is nice and all, but very expensive just to start it off.