San Francisco, California, September 14, 2017 – The global market for colocation is anticipated to witness a robust growth in the coming years. This growth can be credited to noticeably lesser investment in terms of capital to construct the data centers, and pocket-friendly operational expenses. TMR Research expects that the growth in adoption rate of green data centers will likely to strengthen the demand for global colocation market as well. According to a report authored by the market research company, titled, “Colocation Market – Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 – 2025” these are some of the factors that could change the global scenario of colocation market by augmenting its growth in coming years.
The major reason behind the rising demand of colocation technique is its ability to manage files across mid-sized, small, and large firms, effectively. This facility helps in reducing the in-house IT operational and maintenance cost, that in turn aids in focusing on the main business. As there is a tremendous increase in the data production worldwide, the firms are looking for a cost-effective and creative solutions in the form of data center services. This is also a contributing factor that has stirred up the growth in colocation industry. Moreover, several industries are acting as the end-users of the colocation technique, such as, government, IT and telecommunication, healthcare and life science, and banking, financial services and insurance (BFSI).
Owing to unavailability of the proper location for data centers is leading towards the adoption of cloud computing. This inclination towards cloud computing is making its way for hybrid platform, where the cloud colocation and traditional colocation techniques will be put to use together. This collaboration is expected to give relaxation in data storage and data management, amplifying the colocation market as well. There is also a significant improvement in disaster recovery abilities and business continuity which are boosting the demand for colocation services. Although, the initial-cost being very high, and apprehension about the control over the servers are some of the supporting factors that are likely to hamper the market growth to reach its optimum potential.
On the basis of geographical regions, the market is segregated into Asia Pacific, Europe, North America, and Rest of the World. The rise in the implementation of cloud computing in North America region, along with the rapid technological advancement and innovations chips in making it the most dominant region among all of them. The region is also bestowed with rich IT infrastructure that also adds up in the growth of the region. Apart that, Asia Pacific is not left far behind as it is also anticipated to flourish with a significant pace. In this region also there has been a noticeable shift towards the adoption of cloud computing, along with the rise in data production all over since a few years. Additionally, there has also been a surge in online businesses in the region, especially in the countries such as Taiwan, China, and India, which is pulling investors towards it to experiment in its colocation market.
As there has been a skepticism about the data control over the various servers, the leading firms in the market are working up on providing data security, scope of scalability, and cost-effectiveness to sustain their position in the market. AT&T, Coresite, Colt, Digital Realty Trust, Equinix, Dupont Fabros Technology, IBM, Navisite, Internap, NTT Communications, and Verizon Terremark are some of the leading players in the global colocation market. These and the other well-khnown firms are staking a huge amounts in research and development and experimenting with the existing technique in order to come up with some unique solution to control and secure the data, in order to lead the market.
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