
Will colocation grow quickly in 2012 (and beyond)? Almost certainly.
Consider two statistics:
1. Data center space is expected to increase by 15 percent annually.
2. Ownership of data center space is expected to decrease six percent by the end of 2013.
(From a 2010 Frost & Sullivan research report.)
This can only mean one thing: as companies and their computing needs grow, more colocation services are being sought.
This doesn’t surprise us a bit. Over and over, we hear the same question: “How can we manage our IT costs so that we can grow more effectively?” In many cases, “colocation” is a great answer. Why?
• Colocation reduces capital expenditures. Servers can be expensive, but data centers are always expensive. Racks, cooling systems, fire prevention systems, security systems – these all add up to a hefty bill. Colocation cuts that bill down, freeing up capital for better uses. Moreover, the carefully controlled environment at most data centers helps extend the life and functionality of servers, cutting down on maintenance and replacement costs.
• Colocation reduces data center operating expenses. Data centers are also expensive to maintain. IT and security personnel expenses alone are often what drive companies to colocation. Again, they see that that capital can be invested in ways that more directly affect the bottom line.
• Colocation produces peace of mind. Colocation takes worries about physical security, cooling, electricity, connectivity off a company’s collective minds.
• Colocation gives companies flexibility. Companies move and expand all the time. With colocation, they don’t have to worry about the expense, worry, and (in some cases) considerable regulatory compliance associated with moving servers. Colocation also allows companies to grow easily: instead of expanding a data center, all they have to do is rent out extra cabinets.
• Colocation frees up staff…just like it frees up capital to better contribute to a company’s core business.
Want to know more about colocation? Call us at 612-395-9090. You can also take a virtual tour of our Eden Prairie Data Center or request a colocation quote today.