Business Operations

The Present and Future Of Colocation IT Infrastructure

Colocation IT Infrastructure Present And Future Efficiency

There has been a tremendous amount of debating regarding the validity and efficiency of colocation, or colo centers since the rise of the cloud. Many colo centers were built prior to 2000 and have a significantly outdated infrastructure. That, of course, does not help them gain any competitive edge. Such data centers survive mostly because they have long-term clients that aren’t willing to put in the work required to move elsewhere.

On the other hand, there are colo centers that have managed to keep up with the times and stay ahead of the technological curve. These are the centers that offer a valid and realistic argument to the current cloud-based preference. In most cases, the most popular colo centers offer a hybrid model with traditional mainframe infrastructure alongside private and public cloud infrastructures.

The most interesting statistic to note is that there has been a significant rise in the number of companies who rent colocation space since the rise of the cloud. It’s possible to debate the advantages of the cloud versus colocation, but you can’t argue with the statistics. Growing companies have big needs and they turn to colo centers when they want something reliable.

The colocation industry is already estimated to be worth more than $25 billion a year and most experts agree that its value will have doubled by the end of the 2020 year. Why is this happening? What allows colocation to continue to grow in popularity despite a seemingly superior alternative being readily available? Much of it boils down to the IT infrastructure itself. The need for biz learning in cloud computing increases the need for colocation IT.

The Cloud Isn’t Really On A Cloud

Of course, that’s painfully obvious, but the point is that the cloud has to be hosted somewhere. Companies invest in cloud infrastructure, which is primarily an IT service, but the cloud provider must invest in a hosted infrastructure. In a sense, cloud providers have become a middleman. This benefits companies because everything is easier for them, but it also greatly benefits colocation centers.

Cloud services still need physical servers to host their data. In most cases, they rent the necessary data center space from large colocation facilities. Therefore, as the cloud grows more and more popular, colocation centers become more necessary. If reliance on the cloud doubles in ten years, then the required colocation space will increase as well. These two industries are reliant on one another behind the scenes and most businesses simply don’t realize it.

Big Enterprises Are Looking To Outsource

Many companies start by running a sort-of data center in-house. In time, they may even invest in designing a large scale data center for their needs. Eventually, they reach a point where it becomes inefficient to spend more money on running an in-house data center. At that point, the enterprises begin looking for alternative locations to house their data centers. They almost always wind up at large scale colocation facilities.

It makes sense for the business to choose colocation over in-house systems. Colocation facilities have the IT infrastructure necessary to run systems that are highly efficient in almost every regard. In comparison, the price of cooling, power, and space is considerably cheaper for colocation facilities. An enterprise could pay 300 percent more for managing an in-house data infrastructure.

Business Is Booming

The colocation market has definitely changed over the past decade. The bulk of the business is coming from one of two sources. First, they are playing host for large-scale cloud infrastructures. Second, they are taking on the data center needs of enterprises that have outgrown their on-premise facilities.

As long as the colo center can keep their IT infrastructure up-to-date, then they can continue to enjoy a steady stream of big and expensive clients. Spastics are showing that most colocation facilities are engaging in fewer transactions, but those transactions are significantly larger than in the past. With there being fewer clients who pay for more services you also experience a surge in competition among existing colocation facilities.

More competition means that colocation centers are offering more services than ever to their clients. Those clients can enjoy lower prices, more flexible payment options, and plenty of bells and whistles that middleman two decades ago. As business continues to boom for colocation providers it actually becomes a more pleasant experience for the enterprise owners who need the data center space.

The Future Of Colocation IT Infrastructure

It’s safe to assume that the colocation centers that are thriving today have learned the importance of adaptability. They will likely continue to adapt and remain the dominant data center providers for decades to come. Those still relying on long-term clients and outdated infrastructure will eventually fade away as their clients move on or sell their companies. The colocation industry will continue to grow as long as it is fueled by a need for connectivity, a need for efficiency, and a need for improved performance.

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