The Colocation Data Center Market Moves To The Edge

Currently, the colocation data center market is undergoing changes to ensure that companies can effectively store their data and support the growing infrastructure needs; but the important thing is to get as close as possible to the data source and protect the data.

There is no sign that the colocation data center market is declining. According to a report by Allied Market Research, the global data center colocation market is worth US$46.08 billion in 2020 and may reach US$202.71 billion by 2030. However, the way companies use colocation is changing to meet the needs of distributed data networks, edge computing, and high-throughput data processing.

 

Calvin Nicholson, senior director of Legrand's Product Management Power division, said that the main drivers of colocation investments include lack of space and convenience. Colocation service providers with skilled maintenance and facilities personnel also provide additional assistance, and companies only need to access their data, without the need for routine hardware maintenance.

He said: "The cost of building a data center is very high, so I think in some cases, colocation can allow enterprises to tide over the difficulties until they have the opportunity to build or make other plans. Colocation really provides them with a lot choose."

 

Disaster recovery is another important use case for colocation data centers because they are convenient and colocation is a way to store data securely without the need to build infrastructure or move applications to the cloud.

 

Colocation data centers are helping companies bring their processing power closer to the data source; using this infrastructure to reduce latency is the main driver of the market, especially with the growth of edge computing and IoT use cases. For companies that don't want to invest or continuously manage hundreds of distribution points, hosting is a good choice.

 

Jon Mauck, Managing Director of Digital Colony, said: "Enterprise outsourcing is also a big driving force. You will see the importance of distributed content. However, these sharing platforms need to have interconnected parts, so that it will become a well-positioned Interconnect or colocation sites-in locations with ample fiber optics."

Colocation Data Center Market And Cloud Computing

Of course, considering the status quo of the cloud technology market, companies may wonder whether hosting is the right choice. Although the field of cloud computing is growing rapidly, companies are also concerned about control, security, and the suitability of cloud architecture for certain applications.

 

As companies try to increase digital diversity, experts say that hosting and cloud computing are more likely to coexist as part of the infrastructure.

 

Nicholson said: "I think there will always be applications or solutions where customers will want to stay on-premises instead of migrating to the cloud. I think you will see them all growing, and obviously, what we see One change is that with the growth of colocation and cloud computing, conventional types of user enterprise data centers are growing, or may even shrink."

 

In addition, companies can use colocation and public cloud to build dedicated infrastructure, and they may not be able to support it in other ways, such as storage. By doing so, companies can expand their customer service offerings without having to build entirely new data centers, and administrators can still control dedicated hardware.

 

Edge Use Cases Advance Hardware

Edge computing is the next major driver of the colocation data center market because these data centers help and provide infrastructure and processing centers. With the influx of data and edge computing deployments, companies hope to significantly reduce latency and make hardware as close to the data as possible.

 

To support the growing edge deployments, colocation data centers and colocation providers must invest in network interconnection hardware and power equipment to provide high-speed data processing and continuous uptime, and act as data distribution points. This will help companies support regional applications and bring data closer to customers.

 

Colocation providers can equip data centers with the latest Fibre Channel connections, software-defined networking, and high-bandwidth wireless options to attract businesses. In addition, in the colocation data center market, remote network monitoring and management is another advantage to attract customers.

 

Efficient power utilization is the key, especially when the colocation data center increases rack density and the power demand of different facilities changes.

Experts have seen the emergence of microgrids (ie, independent grid sources) that can help support more localized infrastructure and operate separately from any main grid in the region.

The separation of the microgrid from the main grid means that the colocation data center can exist outside of the infrastructure provided by the state or the government, and at lower cost, or automatically have backup power options other than generators. If the surrounding grid infrastructure is unreliable, they are also a way for data centers to obtain electricity.

 

Mauck said that microgrid power technology is still in its infancy, and we are still not sure about its role. Let us wait and see what role it plays in helping reduce the density and floor space of data centers.

 

Manage Diverse Digital Infrastructure

According to Scott Sinclair, a senior analyst at Enterprise Strategy Group, remote management and automation are additional considerations for colocation providers, especially when companies need more infrastructure flexibility.

 

He said: "We found that CIOs want more complex integration, and they want as much freedom as possible, and diversified technologies. These are two independent things that are somewhat contradictory."

By using the right toolset and management options, administrators can provide the right information to the right people in the enterprise, whether they are technical or non-technical. These programs can also help optimize the way companies track and move data.

 

Automation is an increasingly effective management tool because companies often manage colocation data centers, local facilities, and cloud computing at the same time.

 

He pointed out: "Usually, we see some internal development around automation in companies. In terms of their policies and various automation tools, even open source, this helps to solve these challenges."

 

Currently, the colocation data center market is undergoing changes to ensure that companies can effectively store their data and support the growing infrastructure needs; but the important thing is to get as close as possible to the data source and protect the data.

 

Sinclair said that he expects the number of office locations for traditional and data-driven companies will increase, and they will want to use colocation services. This will also promote investment in data security, no matter where the data exists.