Why IT Is Increasing Investments in Colocation

Published: Oct 17, 2017
Updated: May 12, 2021
1 minute read

Why IT Is Increasing Investments in Colocation

Why IT Is Increasing Investments in Colocation

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.

On the Radar

On the Radar

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

Expanding Footprint

Expanding Footprint

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

Going Offsite

Going Offsite

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

Multiple Paths

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.

Multifunctional

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.

Biggest Drivers of Colocation

Biggest Drivers of Colocation

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

Biggest Colocation Challenges

Biggest Colocation Challenges

Cost: 45%,
Security: 31%,
Internal staffing: 18%

Top Apps Moved to Colocation

Top Apps Moved to Colocation

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

Dennis McCafferty

Dennis McCafferty

Content Writer

Dennis McCafferty, a writer for eWeek, Baseline and CIO Insight, has more than 20 years of experience as a writer. He has covered a variety of technology and business topics for a number of publications, including those of Ziff Davis. Dennis was also an editorial staffer for USA Weekend, the nation’s second-largest magazine, with more than 22 million readers.

CIO Insight Logo

CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need to maintain regulatory compliance for their teams and organizations. CIO Insight is an ideal website for IT decision makers, systems integrators and administrators, and IT managers to stay informed about emerging technologies, software developments and trends in the IT security and management industry.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.