Colocation options have taken the big data world by storm. Offering convenient, smart solutions to so many of the data storage problems that come up today, this doesn’t surprise most experts. Market forecasts are reflecting this change.
A new report by knowledge Sourcing Intelligence entitled “Data Center Colocation Market – Forecasts From 2016 To 2021” confirmed the continued growth of this market. Small and medium sized companies have always had to find solutions that were quick and stable for their data consumption, contributing to the original appeal of Colocation. Particularly, the investment in private data centers was far too extensive for young companies. Now, even larger companies are starting to shy away from the daunting task of building big infrastructure for themselves. Beyond the headache, contractors, and huge upfront costs, the up time for a major data center is years, which businesses needing more and more data can’t afford to wait.
In seeking new solutions, more companies are moving to the cloud, because of its flexible structure and easy access points. It also allows for quick expansion, a necessity with the rapid rate of change in data usage across sectors. Hybrid cloud set ups are becoming the norm, requiring excellent backup and careful management. Colocation centers, like Centralcolo are leading the pack when it comes to providing cloud friendly hubs.
The knowledge Sourcing Intelligence report predicted an estimated growth rate of 14.45% annually for the next five years for the colocation market. These rates are very promising for the industry, indicating the trust and confidence business are finding in colocation data solutions. The market size is expected to be $55.31 billion at the end of 5 years, with no end in sight to the market value.
Virtualization is another factor that is being adopted as the norm for data storage. The move away from physical hardware to virtual platforms has transformed the traditional ways in which companies managed their data. The change, though speed and cost efficient, also places a lot of pressure on data solutions to perform at the most cutting edge level. This is another reason why Colocation is exploding.
Finally, the report reiterated the most common shift in approach to data by companies. Despite growing demand and more and more complicated virtual data structures, IT budgets are shrinking across the board. Outsourcing to Colocation locations has become the only trustworthy option to meet those monetary demands.
What do you think the next five years look like for data storage? Let us know!