Global Data Center Colocation Market 2017-2021
About Data Center Colocation
Data center colocation is a type of data center service in which the service provider offers data center spaces to other organizations. Data center spaces include racks, private suites, as well as other full-fledged facilities. These data centers are also being developed as carrier-neutral facilities for customers to select from a wide range of available networking connectivity options. Data center services include colocation, managed colocation, interconnection, and managed hosting services.
Technavio’s analysts forecast the global data center colocation market to grow at a CAGR of 9.87% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global data center colocation market for 2017-2021. To calculate the market size, the report considers the retail and wholesale colocation service revenues generated by both local and global vendors in the market.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Data Center Colocation Market 2017-2021
Technavio recognizes the following companies as the key players in the global data center colocation market: China Telecom, Equinix, Digital Realty Trust, NTT Communications, and CenturyLink.
Other Prominent Vendors in the market are: 21Vianet, Ascenty, AT&T, British Telecom (BT), China Mobile, China Unicom, Chunghwa Telecom, CtrlS Datacenters, CyrusOne, Deutsche Telekom, DuPont Fabros, Fujitsu, Global Switch, iAdvantage, Internap, Interoute Communications, Interxion, Level 3 Communication, NEXTDC, PCCW Global, Singtel, Sungard Availability Services, Switch (SUPERNAP), Telehouse (KDDI), Telstra International, ViaWest, and Zayo Group.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is implementation of SDN by colocation providers. The number of organizations operating their infrastructure using colocation facilities is growing significantly irrespective of the types of services adopted. This growth in the number of customers and their business operational needs will lead to the requirement for higher reliability in the bandwidth offered by colocation providers.”
According to the report, one driver in the market is reduction in CAPEX and OPEX. Enterprises are rapidly adopting technologies, such as cloud, big data, and IoT, to gain a competitive advantage in their operating markets. Large enterprises with sufficient budgets to plan and build their private facilities are also moving toward colocation facilities for the benefits of rapid deployment. The cost of building a data center varies based on the design of the facility. Building traditional brick and mortar data center facilities that will be completely operational can take up to one and half years.
Further, the report states that one challenge in the market is hidden cost of colocation services. In colocation contracts, hidden costs play a vital role. This could affect the IT budget of an organization as the demand for its services will grow faster than expected. Every colocation provider has a specific SLA for customers adopting its services. Customers are required to carefully verify the cost of adopting the services with possible future expansion plans and scenarios with variations in demand. For example, an increase in the network bandwidth requirement will lead to additional charges and also include the cost of data backup in case of operational disturbances.
China Telecom, Equinix, Digital Realty Trust, NTT Communications, CenturyLink, 21Vianet, Ascenty, AT&T, British Telecom (BT), China Mobile, China Unicom, Chunghwa Telecom, CtrlS Datacenters, CyrusOne, Deutsche Telekom, DuPont Fabros, Fujitsu, Global Switch, iAdvantage, Internap, Interoute Communications, Interxion, Level 3 Communication, NEXTDC, PCCW Global, Singtel, Sungard Availability Services, Switch (SUPERNAP), Telehouse (KDDI), Telstra International, ViaWest, and Zayo Group.
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