Data Outsourcing and the Rise of Colocation

Managing and operating a data center can be manual intensive and costly. That’s one reason why businesses are seeking assistance from third parties to handle such work — now called as colocation facilities.

Colocation, another option to in-house data center solutions, lets businesses benefit economically from power sharing, cooling, and data floor space with other tenants, while allowing complete equipment control for every user.

Such approach works for enterprise IT in a similar manner that shared offices are perfect for each entrepreneur — neither deserves the complexity, hassle, installation costs, and maintenance of their own space.

A lot of companies are now seeing the importance of colocation and are taking measures to include it in their IT strategy.

A Trend Worldwide

It’s believed that, by the end of 2017, the colocation market worldwide will have a value of $36 billion. A majority of the expansion will take place in the Asia-Pacific region, where colocation is expected to resolve infrastructure problems in expanding companies that don’t have the space for a data center.

The popularity of colocation can also be attributed to more firms leaning into hybrid IT, a strategic maneuver involving offsite and on-site data centers.

Opting a hybrid approach is suitable for companies that desire colocation facilities as a ground for cloud testing. In this manner, they can make cloud experiments for specific computing tasks while allowing everything else to be confined within an in-house data center.

Offsite installation should be straightforward if the colocation service provider meets the enterprise needs and requirements and is cloud-ready.

All About Scaling Up

Colocation facilities are into assisting companies in efficient data handling, and making room for resources and time so they can concentrate on their essential competencies. Through colocation, companies can utilize as much as they require at present, and can easily scale up as they expand. Companies will then move these cost savings into strategic-specific aspects of their business.

Colocations lets firms convert capex spending to opex spending. This makes it easier for them to spend on their resources more efficiently and in a predictable manner.

Since data center managers utilized by colocation providers are experts, they possess more insight on perfecting processes and dealing with challenges. They can also acquire the right gear that most separate firms can’t match, offering further cost savings benefits.

There are a number of ways for companies to shift IT to a cloud. Colocation is making such transition simpler and affordable. With enough money and time saved, companies can concentrate on their business essentials.