Server Expansion

2015 Colocation Trends

The global data center colocation market is booming. According to a recent report by 451 Research, the market hit $25 Billion in 2014. And, wholesale data center leasing increased by 37 percent in 2014, according to North American Data Centers. There are four key trends driving this rapid growth:

Disaster Recovery – Every organization, large and small, needs a back up plan in case of an outage. Choosing a colocation facility that is less prone to natural disasters, but still within a reachable range from your primary site, is key to successful disaster recovery, as is the site’s implemented security procedures, power and generators, and uptime guarantees. Colocation allows businesses to duplicate their IT infrastructure, while backing up data and production environments to meet recovery objectives in the event of a disaster. More and more businesses are looking to shore up their ability to restore critical business functions quickly and efficiently with colocation.

Unexpected Growth – Many businesses have experienced unexpected growth year over year and have outgrown their on-premises data centers and offices. Colocation offers organizations the opportunity to focus limited IT resources on long-term, strategic initiatives rather than day-to-day operations. Cost benefit analyses are tipped in favor of colocation for many businesses as past barriers have fallen away. The availability of high speed connectivity and high density power, coupled with the dropping cost of bandwidth, has made in-house data centers a strain on IT budgets and a burden to maintain.

Moves and Consolidations – Moves to new offices and new data center facilities, as well as the consolidation of IT assets to reduce an organization’s IT footprint, are all leading businesses to invest in colocation services. The move to server and storage virtualization coupled with the rise of cloud computing are enabling IT departments to get out of the business of maintenance and construction, shifting into providing more efficient services to customers. In fact, hybrid cloud, which Gartner predicts will be the majority of cloud deployments by 2017, blends public and private cloud services to reduce operational costs while providing highly available networks that fulfill security and regulatory requirements.

There’s got to be an easier way – Many colocation facilities are now PCI and HIPAA compliant, SSAE16 certified, provide 24x7x365 security, offer redundant cooling infrastructure, are high density capable, and boast a 100% uptime guarantee. The question of whether to co-locate is no longer the barrier it once was; now, it’s the “how” and “where” that require detailed planning. Consider what your current data center or server room will look like in three, six, or even 12 months – can your current infrastructure support your future project load in terms of space, power, and connectivity? Do you have a redundant disaster recovery strategy that can recover critical business functions in a true disaster?

For many organizations, it makes better sense to move on-premises infrastructure and management to a colocation facility. Given the trends toward colocation and the growing market, which lends itself to continued investment in improvements, it just makes sense to consider a transition. Get started by evaluating your current data center or server room – is the current setup sustainable?

To learn more about the benefits of colocation, contact our Managed Services Program (MSP) and our Advisory Services teams.

Mark Holdsworth | Technical Account Manager

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