About Data Center Colocation
A data center colocation facility allows organizations to rent space for hosting servers and storage infrastructure. It provides options such as power, bandwidth, and physical security for the infrastructure.A hosting solution managed by a service provider and owned by a client can be termed a managed hosting solution. Colocation and managed hosting services are useful for customers across different industry verticals. Colocation reduces the spending on IT infrastructure and improves the security and ownership control of the data.
Technavio’s analysts forecast the global data center colocation market to grow at a CAGR of 12.36% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global data center colocation market for 2015-2019. To calculate the market size, the report considers revenues generated by both local and global colocation vendors, irrespective of the types (retail and wholesale). The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Data Center Colocation Market in the US 2016-2020
Technavio recognizes the following companies as the key players in the data center colocation market in the US: CyrusOne, DuPont Fabros Technology, Digital Realty, Equinix, CenturyLink, and Level 3 Communications.
Other Prominent Vendors in the market are: 365 Data Centers, AT&T, ByteGrid Holdings, CentriLogic, Cogeco Peer 1, Cologix, Coresite, Colocation America, Fujitsu, Infomart Data Centers, Internap, IO, Iron Mountain, NaviSite, Peak 10, PhoenixNAP, PhoenixNAP, Rackspace, Sabey, Sentinel Data Centers, ServerCentral, Sungard Availability Services, Switch, T5 Data Centers, The Benaroya Company, TierPoint, Vantage Data Center Services and Solutions, Verizon Communications, ViaWest, vXchange, and Zayo.
Commenting on the report, an analyst from Technavio’s team said: “Incorporating implementation of SDDCs in enterprises will be a key trend for market growth. A software-defined data center (SDDC) is a data center where infrastructure is delivered as a service through virtualization of the physical infrastructure; hardware infrastructure is managed through intelligent software systems. SDDC supports both legacy applications and cloud computing services. It improves efficiency, lowers costs, provides applications in minutes, offers higher availability and better security, and creates an opportunity for the delivery of workloads through the cloud.”
According to the report, one of the key drivers for market growth is the availability of advanced network connectivity. Enterprises are witnessing a rapid increase in the digital content transmitted and manipulated in their networks. Due to rising network traffic and the increase in the complexity of network management, there is a growing need for human expertise to manage operations. However, with the adoption of colocation services, enterprises are finding it easier to manage network dynamics, control traffic flow, and scale up data center infrastructure efficiently.
Further, the report states that one of the challenges against the market growth will be the rapid evolution of technology leading to ambiguity. Due to the rapid evolution of technology and increased number of services provided by colocation vendors, enterprises are finding it difficult to choose services that best fit their business requirements. Enterprises want to ensure that they make the right business decision, especially if it involves heavy capital investments and making changes in the operational processes. Therefore, many enterprises are delaying the process of adopting colocation services, which is affecting market growth.
CyrusOne, DuPont Fabros Technology, Digital Realty, Equinix, CenturyLink, Level 3 Communications, 365 Data Centers, AT&T, ByteGrid Holdings, CentriLogic, Cogeco Peer 1, Cologix, Coresite, Colocation America, Fujitsu, Infomart Data Centers, Internap, IO, Iron Mountain, NaviSite, Peak 10, PhoenixNAP, PhoenixNAP, Rackspace, Sabey, Sentinel Data Centers, ServerCentral, Sungard Availability Services, Switch, T5 Data Centers, The Benaroya Company, TierPoint, Vantage Data Center Services and Solutions, Verizon Communications, ViaWest, vXchange, Zayo.
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