Analyzing Popular Trends in Data Center Colocation Services 

Deluxe company -

The data center colocation market is becoming more competitive than ever. As a result, colocation providers such as ColoCrossing have become a popular choice for enterprises that need to strategically locate servers near their end users.

Let’s take a closer look at some of the biggest trends in data center colocation services so that your business can know exactly what to expect when it decides expand into a colocated data center facility.

Renewable and Sustainable Energy Sources

When data centers use renewable and sustainable energy sources such as hydroelectricity, data centers can pass along the energy savings to their customers. Different data center markets may have different pricing structures and much of this has to do with demand and how the data center receives energy. The ColoCrossing Buffalo datacenter, for example, benefits from the availability of renewable hydroelectric power due to its proximity to Niagara Falls.

As with all modern technologies, data center colocation facilities are striving to become as energy efficient as possible and this is a trend that won’t go away anytime soon. Data center colocation facilities of the future may implement exotic options as a way to reduce energy costs.

Colocation Data Centers Will Emerge in Localized Markets

As media becomes more centralized, localized and personalized, normal end users may require rapid access to their media which could lead to a spike of colocation providers that decide to extend into localized markets.

An end user in Upstate New York may currently have to retrieve data from a data center in Atlanta or Chicago. In order to provide a higher quality of service, a media conglomerate may choose to host the end user’s data in a data center in Buffalo or Toronto, in order to provider a shorter path for the data to reach the end user.

Colocation Providers Will Sell More Managed Services

IMG_0227-revised | Deluxe company Data center colocation providers are typically willing to provide discounts for enterprises that lease multiple racks or cages within a facility. In efforts to better serve the customer, colocation providers will begin offering more managed services as a way to increase profits and simplify the process of securely deploying services in a colocated data center.

Colocation hosting providers are quite busy these days. While many tech pundits may claim that everything will be hosted in the cloud, the truth is, many businesses will keep their colocation hosting provider on board to host the organization’s core infrastructure. As a result, many colocation provider may end up offering more services that are traditionally performed by managed service providers.

Colocation Hosting Market is Predicted to Double by 2020

colocation-supply-and-demand-201221 | Deluxe company Back in 2015, ReportBuyer’s research found that the size of the colocation hosting market will double by year 2020. In 2015, the colocation hosting market was worth $25B and in 2020, ReportBuyer predicts that the size of the colocation hosting market will exceed $50B.

This rapid growth of colocation hosting services equates to a compound adjusted growth rate (CAGR) of 12.26%. With so much rapid growth in the colocation hosting market, many businesses have begun evaluating the pros and cons of hosting their data centers onsite versus deploying their infrastructure in a colocation data center.

Colocation Will Continue to Solve Unique Problems

IMG_4015-3-X3 | Deluxe company Perhaps one of the reasons that the data center colocation market will flourish is due to the fact that server colocation may continue to be the best option for small to medium sized enterprises.

Some organizations may need their services hosted in the United States while maintaining excellent connectivity to services in the Asia Pacific region. To solve this problem, many organizations host their infrastructure in Los Angeles. This is just a simple example of how server colocation could solve a problem unique to specific business.

Since many organizations prefer to own their own servers, server colocation becomes a natural fit for enterprises that have outgrown their onsite server closet. With colocated servers, your business can maximize network uptime by minimizing outside factors associated with onsite data centers.

For organizations that need to maximize the uptime of their public and private infrastructures, strategic data center colocation becomes the logical choice.


ColoCrossing Team
ColoCrossing Team

Our team of dedicated IT experts strive to provide you the information you need to help improve your business' IT infrastructure.