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Colocation provides balance in a precarious world

Eric Tabor  |  April 1, 2014

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Colocation is an increasingly popular choice for companies that want to cut down on data center spending without relinquishing control over their equipment. The market for wholesale and retail colocation is expected to surpass $43 billion by 2018, according to MarketsandMarkets. This represents a compound annual growth rate of 11 percent from 2013 to 2018. Retail colocation, in which businesses lease space in a large data center that services multiple clients, is rising in demand, with retail colocation deals often topping 1 megawatt of critical power to satisfy scaling client needs.

Many organizations that have little experience with massive infrastructure needs are now faced with increasing convergence between business and IT. This dive into the deep end can quickly subvert budgeting, resourcing, tech support and data strategies that companies have carefully planned. Colocation provides an alternative to an endless cycle of purchasing new equipment, building additions to onsite data centers and retraining staff. As Computer Weekly contributor Clive Longbottom pointed out, it makes little sense to build a facility given so much uncertainty, when it’s nearly impossible to predict demand even a few years down the road.

Unlike managed services, in which a company outsources the oversight of its infrastructure to a provider, colocation enables it to use its own servers and retain control of installation, maintenance and management. This can be a good first step for an organization that may have less experience with IT outsourcing but knows that it can’t subsist much longer on the status quo.

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Eric Tabor

Chief of Staff | Vice President- Strategy & Operations at ISG Technology
Eric joined ISG Technology in 2012 bringing with him experience from ISG’s parent company, Twin Valley Telephone, Inc. He is a member of the Twin Valley senior management team that managed the company’s organic and acquisition growth strategies resulting in the company tripling in size from 2005-2010. Prior to joining Twin Valley he held sales and operations leadership roles at Southwestern Bell/SBC in multiple Midwest locations. He holds a B.A. in Mass Media and Communications from Washburn University. Eric currently resides in Olathe, KS with his wife and their two children.
About

Eric joined ISG Technology in 2012 bringing with him experience from ISG’s parent company, Twin Valley Telephone, Inc. He is a member of the Twin Valley senior management team that managed the company’s organic and acquisition growth strategies resulting in the company tripling in size from 2005-2010. Prior to joining Twin Valley he held sales and operations leadership roles at Southwestern Bell/SBC in multiple Midwest locations. He holds a B.A. in Mass Media and Communications from Washburn University. Eric currently resides in Olathe, KS with his wife and their two children.

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