Simply wondering what your determining factors are when deciding to go Dedicated or Colocation? Is it how you manage accounting parameters? Is it upfront cost? Or what?
Along the same lines, has anyone used or uses lease to own? How would accounting work for that?
Collocation is only recommended if you have a DC near by to avoid remote hands fees. It also involves more upfront investment to buy the hardware and also maintain spares. The key advantage is that its cheaper in the long run.
Dedicated server would be right if you don't have a DC nearby or you can't afford for high upfront fees.
There's many advantages and disadvantages to leasing vs colocation. I'll touch on colocation as that's our primary business:
Colocation Advantages:
1) Lower running cost as you take on more servers and/or with higher density.
2) You are more in control of the server specs/configuration. You can build some beefy servers, loads of memory, etc.
3) You are in control
Colocation Disadvantages:
1) Higher initial cost of hardware
2) You need to have spares, or be able to get them quickly in the event of a hardware failure.
3) You need to know a little about switching/routing to properly secure your network.
4) Cost of refreshing equipment depending on your lifecycles - assuming you want to be running the latest or near latest technology.
Single CPU server, older hardware, etc - dedicated server rental. Do not worth to collocate.
2 x CPU servers, high end hardware - collocation.