In today’s rapidly evolving technological landscape, the utilisation of cloud services has become increasingly widespread within enterprises. These services provide companies with access to robust computing resources, data storage, and software management without the need for maintaining on-premises infrastructure. However, not all businesses are prepared to fully embrace the cloud, which is where colocation, or colos, come into play.
Colocation facilities have emerged as the preferred solution for many companies seeking to retain control over their IT infrastructure while engaging partners for data center management. According to Grand View Research, the global data center colocation market exceeded $54 billion last year and is projected to grow at a compound annual growth rate of 14% by 2030.
The demand for colocation facilities has soared as companies seek cloud-like features along with essential benefits such as regulatory compliance, cost savings, security, and accessibility.
Colocation facilities offer a multitude of advantages to businesses, including faster connectivity, enhanced security, and more sustainable operations. Some companies have turned to colocations to manage the significant volume of data generated by a hybrid and remote workforce, as well as the rise in generative AI.
In certain industries such as healthcare or finance, colocations are crucial for meeting regulatory requirements by keeping data and applications on-premises while still accessing public cloud platforms and integrating SaaS applications.
By transitioning a company’s networking services to the cloud, also known as Network as a Service (NaaS), organisations can shift from a capital expense (CapEx) operational model to flexible operating expense (OpEx) subscriptions. This transition can lead to reduced IT costs, freeing up capital for other investments and enhancing operational efficiency.
Looking to the future, the middle cloud, which combines public and private cloud services with on-premises infrastructure, will see colocation providers playing a pivotal role. This makes colocation facilities a natural hub for cloud networking.
To fully capitalise on the capabilities of modern colocation facilities, businesses should adhere to the following guidelines:
– Prioritise Location: When selecting a colocation facility, consider how to bring your services as close as possible to end users to determine connection speed and overall performance.
– Ensure Elasticity: A colocation facility and design should allow for expansion and contraction, with flexibility built into a contract. Consider value-added services such as connecting to a Network as a Service platform to enable scalable services.
– Think Sustainably: Look for colocation facilities with more sustainable options, including water cooling, renewable energy, and geothermal power.
In conclusion, colocation facilities offer a variety of benefits to modern businesses, providing a desirable middle ground between traditional IT infrastructure and full-scale cloud adoption. By following the key strategies outlined above, organisations can fully maximise the advantages offered by colocations and position themselves for success in today’s rapidly evolving technological landscape.
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