Why is Portuguese man o' war considered a colony?
Physalia and Siphonophorans in general are multicellular Metazoans.

But the whole discussion is about modularity on the level of individuals: Siphonophorans are colonial organisms, which means they are composed of multiple individual polyps and medusae. This is in fact quite common among Hydrozoa, but in Siphonophora the degree of integrity and function division among the components is of extraordinary level.