In typical B2B tech market, there’re talks about possible decline of physical data centres and their replacement with more radical cloud in a probable future.
This is because data centres are considered “stuck” in the past and suitable only for multi-tier and large corporations that can spare a fortune.
You might be tempted to argue over data centres being imperfect for every corporation; the rise of colocation presents a different picture. From an industrial point of view, the concept has already been given a real-time shape and booming rapidly without any visible signs of deceleration.
A tech report in 2016 indicated about more or less 4,800 data centres compared to colocation market that’ll be worth 35 billion British pounds by 2018. Till date, more or less 27 billion has been achieved globally and major portion of this revenue came from local providers.
Many things are to be clarified such as why colocation data center is so lucrative even with the boom of cloud technology. It contributes a lot to B2B tech market and from typical corporate perspective, how small businesses are benefited from this! Let’s find out below.
No matter the size or nature of the business, each deals with mass of information daily that requires effective management. Traditionally, data centres were a great way of doing so and still are but many corporations simply couldn’t afford owning one. This is when colocation steps in providing smaller businesses a chance to garner the same benefits as their larger corporations.
SMEs following the route are able to rent space, equipment and bandwidth at a budget.
A collocated data centre offers power, cooling facilities, space and security for servers alongside storage and networking equipment.
It’s quite similar to the outsourced staff that carries forward certain tasks thus contributing greatly to overall business requisites.
There’re many different benefits other than cost-saving which however, is an important aspect of colocation. Businesses can conveniently focus on other important areas as experienced professionals are there to manage routine activities, ensuring achievement of goals without downtime. This also means you needn’t worry over extensive technical expertise as professional workers have that all figured out!
Flexibility is another major aspect that allowed businesses to shift from typical data ownership and server rooms courtesy of colocation.
Advantage of collocated data centres is achievement of IT needs especially when a company needs expanding its operations.
They can do so without investing in oversized data centres but rent space as needed.
Revenue from wholesale and retail datacenter colocation market worldwide from 2014 to 2018. Source: Statista.com, one of the leading statistics companies on the internet.
Not every business nowadays has the resource and time to spare building in-house systems for data management that’s another reason colocation is lucrative right from the start.
In simple terms, it’s a reliable yet convenient way for organisations to manage their data needs alongside saving money altogether.
Corporations can easily outsource their data centre requirements. There was a time when market actually oversupplied following the “built it and they’ll definitely come” mantra however; today we can see sustainable growth as demand exceeds supply. This is driven by extraordinary surge in cloud services, the Internet of Things, digitisation and competition that tend to drive down the costs.
Better global footprint
By reducing overall carbon contribution, colocation helps businesses to improve their worldwide impression with a potential to access low-cost power that can last for years. Business innovation nowadays depends on effectively managing data insights. Companies that look forward to expand their data centre operations and retain more control can effectively do so with colocation.
The ability to grow on a global level quickly and easily with minimal upfront, reduce paperwork and guaranteeing low-cost power for years is all packed in a colo facility. Procedures, policies and technologies are kept up-to-date therefore promising delivery of high-standard data centre management.
As data grows in mass and significance, it becomes mission critical giving customers an opportunity to access the public cloud in microseconds. IT teams on the contrary would be able to interconnect with a partner-based ecosystem more reliably, easily and quickly possible only through colocation.