Businesses endeavoring to expand their footprint in both national and international markets prefer to opt for colocation hosting solutions to increase ROI, and build diversified products/services portfolio. Colocation, being an alternative to conventional data center approaches, enables organizations of all ilk to leverage economies of scale while providing their clients complete control over their hosted servers and other IT components.

The colocation model is optimal for organizations that do not wish to trouble themselves with the hassles and high cost of setting up and maintaining their own data center facility. It substantially converts CAPEX expenditures into OPEX expenditures so that businesses can invest and focus on other strategic business initiatives.

Driving Factors behind Rising Colocation Hosting Adoption

Lack of Resources & Redundancy

It is a potential factor, attributed to the rising of colocation hosting platforms. Most companies either do not own a data center or have facilities that are far smaller than those of multi-tenant colocation vendors. Besides, their budget doesn’t allow them to build a state-of-the-art data center facility with an optimum level of resiliency.

Going forward, a few of them have server rooms that are not fully-equipped with resilient resources, obstructing them to incorporate applications demanding high resiliency in the similar location they require. This is the reason why companies look forward to a facility that can offer greater resiliency across all IT systems and in different geographies.

Rules and Regulations

Every country has its own set of regulatory demands. Most companies lack information about the policies and procedures of different countries. This, in turn, foils them into data sovereignty and regulatory compliance issues. Lack of awareness has even thrown a lot of businesses out of the market. For companies, looking out to step-in into global markets, choosing a colocation hosting is a sagacious decision. 

Global Connection

A host of companies prefers to deploy at a specific location to test the potential of the particular market to avoid legal and political battles. That’s why they opt for a colocation environment where they can promptly house their IT resources, and if anything goes wrong they can reverse their steps. 

Furthermore, some organizations that want to plunge into new international markets lack adequate funding to hire employees, achieve network connectivity, and manage resources. In this regard as well, colocation service proves to be a robust platform. Clients can partner with a reliable data center service provider having a global footprint as they will not only help in reducing upfront costs, but also manage complete infrastructure – from software patching to upgrading, sever reboots, and rigorous monitoring.

In addition to this, building a data center facility in a non-familiar country is not only a costly preposition, but also extremely risky. Smart companies start slowly by first housing their IT components in a secure third-party data center facility. In this scenario, a service provider will give you the flexibility to use their cabinets in a virtualized pattern so that you can easily opt-out.

Hybrid IT: Again, this is also a key enabler of colocation growth, which is expected to be worth $36 billion by next year. Hybrid IT involves both onsite and offsite data centers, allowing companies to text cloud computing for specific computing tasks while maintaining everything else in-house.

Colocation addresses an infrastructure riddle for organizations that lack space for a data center and have budget constraints. It allows businesses to manage resources efficiently and offload the responsibility of managing infrastructure.