Why IT Is Increasing Investments in Colocation

 
 
By Dennis McCafferty  |  Posted 10-17-2017 Email
 
 
 
 
 
 
 
 
 
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    Why IT Is Increasing Investments in Colocation
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    Why IT Is Increasing Investments in Colocation

    Needing more scalable use of data with better network connectivity, data center managers are increasingly looking into colocation options.
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    On the Radar
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    On the Radar

    65% of the data center managers surveyed said they are currently using colocation, or plan to within the next 12 months.
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    Expanding Footprint
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    Expanding Footprint

    57% said they expect their use of colocation services to increase over the next two years.
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    Going Offsite
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    Going Offsite

    80% of the data center managers surveyed are using either off-premises or hybrid data centers.
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    Multiple Paths
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    Multiple Paths

    35% said they've expanded data center capacity within the past two years by adding to the data center without physically expanding it; 30% said they've done so by using the cloud without colocation; and 25% have expanded capacity with colocation.
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    Multifunctional
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    Multifunctional

    52% of the data center managers surveyed use colocation data centers as a backup; 44% use them as primary data centers for computing and critical infrastructure; and more than 33% use them for cloud services.
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    Biggest Drivers of Colocation
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    Biggest Drivers of Colocation

    Better future scalability: 32%, Network and edge connectivity: 22%, Lack of staffing to support expansion: 13%
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    Biggest Colocation Challenges
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    Biggest Colocation Challenges

    Cost: 45%, Security: 31%, Internal staffing: 18%
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    Top Apps Moved to Colocation
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    Top Apps Moved to Colocation

    Storage management: 74%, Email: 66%, Database services: 59%, Web servers: 54%, Communication/collaboration: 48%
 

A clear majority of data center managers said they are already using colocation or plan to do so shortly, according to a recent survey from Vertiv. The resulting "Colocation Data Center Usage Report" defines colocation as an environment that includes multi-tenant data centers, off-premises computing, managed hosting and cloud hosting data centers. Most survey respondents said they'll increase their investment in such services within the next two years. Many use colocation as a data center backup, but a significant number of them are turning to colocation for primary computing and critical infrastructure needs. However, they've encountered challenges along the way, in the form of cost and security concerns, among other issues. "The early stages of colocation deployment are now over for most companies, and they are looking at future IT application deployments in colocation and the cloud that are more diverse, complex and business-critical," according to the report. "Colocation providers will have to differentiate themselves with new services, especially around the cloud; will have to offer a greater number of services to capture larger customers; and will have to demonstrate price transparency to retain customers." More than 225 U.S. enterprise data center managers took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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