The Global Data Center Colocation market is expected to grow from $29.46 billion in 2015 to $50.18 billion by the end of 2020 at a CAGR of 12.26%. This is being driven by the increasing concerns regarding the expenses associated with running a data center.
With businesses expanding globally, the need for space and utilities has increased to unprecedented levels. Data Center colocation helps businesses to strengthen operation in their specific industries by taking advantage of high quality managed data center services. This is enabling companies to focus on revenue generation by streamlining their workflows and reducing operating IT expenses.
The demand for colocation services is on the rise and vendors are now providing unique scalability features with increased control to enterprises. Colocation providers are partnering with cloud providers or hardware vendors to offer turnkey cloudsÂ for their colocation clients. The level of flexibility now being offered by colocation providers is unprecedented with solutions ranging from simple data warehousing to high velocity data analytics solutions. These features along with the reduced expenses and greater ease of use make colocation a very lucrative business for investment.
Data center Management is currently undergoing transfomration. Data Center managers are struggling to keep abreast with growing capacity needs while working under the constraints of tightened budgets and energy efficiency initiatives. Under this norm, managers are working towards adopting colocation as a viable solution. Colocation enables companies to rent specific space to house their servers along with the servers of other companies in a common physical location. Colocation offers the flexibility to upscale or downscale a company’s technology as per their requirements. Another major advantage of colocation is cost savings. The present market scenario is forcing companies to keep check on the spending pattern and hence, focus on cost savings is expected to be a major driver for the growth of the data center colocation market.
North America leads the colocation market with 1,294 colocation centers in the US alone. This is followed by the European market, especially London, Paris and Amsterdam. The APAC market is growing rapidly with nearly 300 centers. India leads the way with 100 centers with an immense scope for expansion.
The report analyzes the market based on application segregated by various end user industries like BFSI, Healthcare, Government, Energy and Power and Information Technology across the major geographies of the world. Detailed market shares are given and forecasts for the next five years are estimated. The major companies in the market like AT&T, IBM, Fujitsu and among others are studied and their strategies are analyzed. Recent developments and their impact on the market has also been analyzed in the report.
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