There is a reason organizations outsource services such as cafeteria management. Making coffee and sandwiches simply isn’t their core business. The same goes with data centers. They are a necessity but, again, not the core business of the organization. This is why a colocation data center makes sense to an organization. Compared to running an in-house data center, a colocation data center provides many benefits such as; cost savings, 100 percent uptime, scalability, compliance, security and disaster recovery replication. This has led to a steady adoption of colocation data centers over the last few years.
Recent research reports indicate that the data center colocation market is set to grow from $25.70 Billion in 2015 to USD 54.13 Billion by 2020. This represents a Compound Annual Growth Rate (CAGR) of 16.1%, impressive for any industry. The expansion of businesses globally has led to an unprecedented uptake of colocation data centers. The adoption of green data centers that use free cooling technology, renewables and waste recycling is also expected to further spur the global colocation market by the end of 2020.
The global colocation data center market is divided into two main solution segments, retail and wholesale. In a wholesale setup, an organization rents an entire facility for its dedicated use whereas, in retail, the organization hires space in a large facility and places its own equipment in racks or cabinets.
The retail market has so far dominated the market and is expected to account for $31 billion by the end of 2020. A retail colocation data center allows greater flexibility in how the platform grows and shrinks and the data center costs are shared across many clients.
The market is further segmented by verticals into banking/financial services, central/local government, energy, entertainment and media, healthcare, manufacturing, technology and more.
According to data center maps, there are currently over 4,000 colocation data centers worldwide. However, with 66.23% of the total centers globally, North America dominates the colocation data center market. The table above shows the 20 leading data center providers by number and region.
From the table, it is also clear that colocation data center market is dominated by a few large scale providers.
Choosing a colocation data center provider
Selecting a colocation data center for your organization is a big decision. There are many factors and issues to take into consideration such as location, flexibility, scalability, reliability, deployment efficiency, network ecosystem, lemming effect and, financial stability.
The best way to go about it is to bring in a telecommunications expert with access to fiber optic maps and data center mapping software who can quickly locate data centers throughout the U.S.A and abroad and propose a custom solution for your organization.
For a proposal or quotaion, please visit fiberguide data center colocation quotation page.