What is colocation?

Do you have a small business? Are you interested in web hosting?

I really want to have a small online business of my own. I was just searching about web hosting and I got stuck with the word colocation.

What the h_ck is colocation? Sorry about that. Where I grew up, the word sounds really funny. So I went to my good friend Google. It said that Colocation is when a hosting service provider provides the housing and internet backbone, and the client provides the physical server. Okay, now it makes sense.

I also read about managed hosting. Very interesting, indeed. It would be nice to know what I should sell online soon. Until now, I don't have any idea. I am stuck again. Shouldn't I be thinking about that first before anything else? Okay, I admit. Like I said, I have no focus right now (read previous post).