According to a recent report compiled by Allied Market Research, colocation is going to see a huge amount of growth in the coming years. The report stated that by 2020, the global colocation market is likely going to reach around $51.8 billion. A lion's share of this explosion of market growth is going to come from the IT and telecom industries. This is based on their ever-increasing need for data center services, as well as the quickly disappearing IT budgets many companies are seeing.
Why is colocation so popular?
Even now, before this predicted boom, colocation was and is an extremely profitable business, with the 2014 North American colocation market being valued at $11.78 billion. That's quite a lot of money, but it's a market that is of the utmost importance to the existence of many businesses.
Before colocation, companies that had data storage needs were forced to maintain their own data centers and servers. This was extremely inefficient in terms of the capital expenditures of having to purchase so much data center hardware, as well as the operational expenditures of having to have IT employees dedicated solely to the daily running and upkeep of this equipment.
This was especially hard on smaller companies that didn't have the money to operate their own data center equipment, making renting the equipment from outside vendors at offsite locations much more logical.
With all of these benefits to colocation, it's no wonder that the global colocation market is predicted to register a compound annual growth rate of 12.4 percent between 2015 and 2020. This growth rate shows that quite a few businesses are going to be relying on colocation services in the future.
Considering all the benefits, as well as how popular it is and will become, any business that believes its spending too much money managing its own data center should absolutely look into colocation from ISG Technology. With ISG's dedicated team of knowledgeable colocation professionals, you can trust that your data will be secure and fully accessible.
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