Global Data Center Colocation Market: Market Research by Knowledge Sourcing Intelligence

As the data requirement keeps growing, so is the need for efficient Information Technology (IT) infrastructure. Data Center Colocation plays a major role in providing much-needed benefits to companies working to reduce their operating costs and remain competitive. For enterprises (small, medium and large) which are facing challenges due to burgeoning data, colocation has become a preferred option. This has led to leasing or renting of colocation facilities, which was traditionally dominated by owning of Data Centers and having a dedicated team of IT professionals for maintaining and troubleshooting the issues.
Global Data Center Colocation market is estimated to witness the compound annual growth rate of 14.45% over the period 2015 to 2021. Retail and wholesale colocation is the major type of solutions, though the line differentiating the two has started blurring over the past couple of years. The new form of colocation solution, i.e. “Hybrid Colocation” is slowly being adopted by enterprises, which are trying to extract the maximum of retail and wholesale solutions.

Global Data Center Colocation Market by Geography:
On the basis of geography, Data Center Colocation market has been segmented into Americas, Europe Middle East and Africa and the Asia Pacific. These regions have been further segmented by major countries, which are important colocation markets.
Americas region is the major market for colocation globally. The region will continue to dominate this market worldwide on account of increased spending by the SMBs and government enterprises, new regulations, growth in cloud computing and upgradation of existing infrastructure. The region accounted for 50% of the global colocation market in 2015, with the U.S. being the major market in the region. The U.S. will continue to dominate the global and regional market over the next five years, though its share will decline on account of high growth being observed across fast-growing economies in the Asia Pacific region. The market research provides a detailed analysis of global data center colocation market on the basis of the various segment like- by geography, by industry verticals, by end-user, etc.

Global Data Center Colocation Market by Colocation Model:
As soon as an enterprise decides to opt for colocation space, it has two options: retail colocation or wholesale colocation. In retail colocation, the enterprise leases required space within a data center, while in wholesale colocation, the enterprise leases the complete data center, while it may or may not be managing the IT operations. Retail colocation is witnessing increased adoption across different regions on account of the benefits it offers.
Retail Colocation market is estimated to witness compound annual growth rate (CAGR) of 16.79% over the period 2015 to 2021. The market for this segment is estimated to be $XX.XX billion accounting for XX% of the Global Data Center Colocation market. Shrinking IT budgets and movement of wholesale colocation providers towards retail colocation are further driving the retail colocation market.
The other factors contributing to the retail colocation market growth are cost advantages, growth in cloud computing services y small and medium enterprises, deployment of high-end applications, accelerating usage of machine-2-machine applications among others.
Data Center Colocation market is evolving. wholesale colocation service providers are now pursuing deals as small as 100 Kilowatts (kW). Retail colocation service providers have modified their existing strategy to thwart the challenges arising from wholesale colocation solution providers. To cater to a different segment of small customers, retail colocation service providers are buying out a large chunk of space from the wholesale colocation providers, and are then reselling the space too small and medium enterprises, while catering to the additional requirement of the large enterprises.

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With the advancement in technologies and high adoption of cloud computing solutions, colocation has become imperative for financial enterprises considering latest hardware and software solutions, capable of handling and analyzing complex data sets while maintaining the privacy of customer data.




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