Data Center Colocation Market – An Economical Means of Data Storage

As the data requirement keeps growing so is there increasing demand for efficient Information Technology (IT) infrastructure. Datacenter colocation plays a major role in providing much-needed benefit to companies willing to reduce their operating costs and remain competitive. Enterprises (small, medium and large) which are facing challenges related to burgeoning data and moving their services onto the cloud, colocation has become one of the preferred options. This has led to a movement towards leasing of colocation facilities which was traditionally dominated by owning data centers and having a dedicated team of IT professionals for maintaining and troubleshooting the issues. The competitive intelligence section deals with major players in the market, which are Equinix, Rackspace, Telehouse, Verizon, Soft Layer, Colt Technology Services, Zayo Group, Century Link, Coresite Realty Corporation, Internap, Net Data Centers, and Single Hop.

Market Drivers:

The demand for the data center colocation market is driven by the increasing concerns regarding the cost of running the data center along with the high cost of maintenance and the non-availability of strategic locations. The growth is also augmented by the increased safety and availability of high bandwidth. Furthermore, the opportunity to focus on revenue generation rather than on non-revenue generation activities also support market growth, thereby increasing the data center collocation market size. The market will continue to grow  worldwide on account of increased spending by the SMBs and government enterprises, regulations, cloud computing and up-gradation of existing infrastructure.

Market Segmentation:

The data center colocation market has been segmented based on colocation model, enterprise size, industry vertical, and geography. Retail and Wholesale colocation is the major colocation models offered by different colocation service providers. Retail Colocation accounts for the major market while wholesale colocation providers have started focusing on short-term deals to remain competitive.

By enterprise size, the market is segmented as small enterprises, medium enterprises, and large enterprises. The large enterprise end-users hold the highest data center collocation market share on account for the need for reduction of cost and expenses associated with data centers and the increased safety and high bandwidth which comes with it. The growth of the market is also supported due to the increasing data theft which makes the users opt for these collocation services so that they can focus on the key revenue-generating activities.

By industry vertical, the market is segmented as Banking and Financial Services, Manufacturing, Communication and Technology, Healthcare, Energy, Education, Government, Media, and Entertainment, and Others. The banking and financial services hold a significant share of the market due to the vast amount of transactions which are done per second and the safety which is required in the increasing data fraud and data theft cases.

By geography, the market is segmented as North America, South America, Europe, Middle East, and Africa, and Asia Pacific. The data center collocation market analysis shows that the North America region holds the largest share in the market with the United States being the major market.

Key questions answered in the report:

What has been the performance of Data Center Colocation Market and how it will perform in the future?

What are the key players in the target market study?

What are the various segments on which the market research is conducted?

What are the driving factors that are leading to the growth of the market?

What are the recent developments happening in the industry?