Why Demand for Colocation is on a Steep Rise?

Jul 26,2021 by Manoj Yadav

With organizational IT demands growing exponentially with each passing day, the need for data center space has reached its peak. It has led CEOs to question the expenses associated with running an in-house data center. From physical location to security implementation and network integration, there are multifarious activities that need careful contemplation, along with heavy capital outflow. In this light, data center colocation services are evidenced as the optimal way out that help organizations in reaping maximum benefits.

The global colocation data center market is expected to grow $36 billion by the end of year 2017.– 451 ResearchThe Data Center Colocation market is expected to grow from $25.07 billion in 2014 to $50.18 billion by the year 2020 at a Compound Annual Growth Rate of 12.26%.– Research and MarketsIn North America, colocation in the energy sector is estimated to grow at a faster rate of 14.3 percent.– Allied Market ResearchNorth American colocation market has generated around $6.5 billion in 2012, and this figure is expected to reach $10 billion by the year 2017.– IMS Research

Colo Business: Driving Force

High demands for power, cooling including other computing capabilities are registered as the driving force behind flourishing colocation business. Companies across different industry sectors are leveraging capabilities of these specialized data center solutions to propel their business forward. The services enable companies to focus on important projects by streamlining their workflows and slashing down their operating IT expenses.

However, regulatory compliance remains a top concern for CEOs on a lookout to embrace colocation for placing their IT components with a colocation company. It is of high importance that colocation benefactors support different compliance requirements while addressing diverse customer scenarios. That’s why; the selected provider needs to be scrutinized as it is the question of your key business functions and customer interactions. For your information, a minor difference between vendors can have a major impact on the overall performance of your organization, and can derail you from your set goals.

Related Topic:  Pros and Cons of Colocation Hosting

Take a Quick Look at the Factors that Supports Business Development:

How these Facilities Outstripping Building New Data Center Culture?

CEOs have realized and understood that setting up a completely new environment which can support their workflows may not be that yielding what partnering with such specialized facilities can bestow.  

They can withdraw more performance by investing less – this is what has outstretched the colo business.

Architecting a data center is not an intricate undertaking, however demands power of mind, capital, and resources to sustain in this digital world. Any slip-ups or wrong decision can resonate for years. Here, these specialized colocation setups are encumbered with robust resources and are designed to meet your specific business requirements, all available for you at cropped prices.

The Bottom Line: For companies with high IT infrastructure requirements and limited IT budgets, colocation services can yield best outcomes while giving businesses an access to latest technology. It is an ideal way forward for companies to reap the maximum out of their IT spends.

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