Colocation in the Age of Cloud Computing

Colocation and Cloud

Despite the cloud hype, colocation is still in the scenario and going well in the industry. Certainly, cloud offers advanced solutions and optimum features and is helping organization improve efficiency and optimize IT. Cloud technology has supported enterprises to easily use storage, servers, and other cloud-based solutions. But what about colocation services that were used long enough to eliminate the hurdles of managing servers and resources on site? Many think that data center colocation is a thing of past now and it can’t compete with the cutting-edge cloud solutions. But that isn’t the case.

The status of colocation

In one of our articles, we discussed how cloud and colocation are closely associated and that the growth of cloud will be accompanied by the growth of colocation industry. According to IDC, 65% of all data centers will on cloud or colocation by 2018, although now the attention is more on cloud.

A research firm showed that the colocation is not dead but it is steadily growing at 11% annually and the same study predicts that global colocation market will reach $36 Billion by 2018. After comparing the link between the spend on colocation and cloud, it would be appropriate to say that the growth of cloud is a big driver for colocation. Moreover, the research also shows that most of the colocation revenues come from service providers such as cloud, IT, etc. rather than enterprises. Considering all these aspects, colocation is surely the base for cloud technology as colocation market stands as a foundation for both off-site hosting and computing as well as cloud service providers.

How is colocation still alive?
Outsourcing. Cloud service providers are using outsourcing on a large-scale so as to reduce capital expenditure. Moreover, even organizations prefer using colocation services with the cloud servers residing at a remote location that entirely putting their business in the hands of cloud service providers.

Some of the reasons why organizations are choosing colocation vastly is mainly due to improve performance and uptime, and secondly for disaster recovery and reduce IT cost. However, one solution doesn’t fit all and thus, you need to choose what is convenient for your business and not for you. Cloud will continue to evolve and this trend won’t stop but colocation is expected to match the pace as well.