Exploring the Solutions for the Challenges of Colocation Data Center Market

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Exploring the Solutions for the Challenges of
Colocation Data Center Market The term
colocation or colo is actually getting
popular because of its ease of use. The
businesses are heading towards colocation data
center with their own servers and IT assets but
some still struggle to understand how to increase
revenue by choosing the best colocation data
center provider. So, what are some of the main
challenges in the arena of server colocation? If
you are in regular contact with the marketing
and sales departments of the colocation data
center, then you must be getting to know about
the vast range of colocation trends in various
target markets. In the colocation data center
market too, the services and customers average
lifetime value differs. Therefore, all colocation
data center providers end up designing a
different plan for solving issues and increasing
revenue growth. Finally, there is only one thing
that colocation is widely based on, and that is
nothing but the location and the assets.
Although, assets with many value-additions can be
rented on a premium package too.
Colocation services are growing continuously, but
the colocation data center market still faces
some challenges, which are in the addressing
phase. For example, the stiff competition from
the multiple cloud-based solutions and CIOs being
reluctant for not giving complete control of
data, infrastructure, etc. are few of the common
issues. In the current scenario, the challenges
of the colocation data center market arent much
discussed.
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So, let us have a look at the challenges and
their probable solutions for enhancing the
colocation data center market. 1. Cost of Energy
and the Need for Green Data Centers It is
evident that the increasing demands of a data
center raise the requirements for energy too.
Reports suggest that data centers top the list of
highest electricity consumers and still the
demands are going to grow by more than 52
(approximately) by 2020. Generally, data centers
are seen as useless power hogging and polluting
industries due to the enormous carbon footprints
they leave behind.
Solution The colocation data center providers
can beat this notion as they use energy more
efficiently and even other sources of power. To
lessen the extra and unwanted redundancy, DCIM
(Data Center Infrastructure Management) tools
can prove effective in removing it. To create a
green data center, there is a huge scope in
exploring renewable energy resources like wind,
solar, and geothermal. Another option which some
data centers use is taking primary energy source
as electricity and further fueling it with the
natural sources. Using electrical source just as
a back-up option eliminates the pollution of the
DGs (diesel generators) which are used as
back-ups. In future, there would be an increase
in facilities because there wont be enough space
left then, the options like liquid cooling
instead of air can be more widely implemented.
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2. Merger or Market Consolidation The current
colocation data center market is already huge,
and the revenues are going to increase in
manifolds. At a CAGR of 15.4, it is going to
become a 55 billion (approx.) industry by 2020!
However, in the current scenario, the colocation
data center market is also witnessing an
increase in buying and merging or consolidating
the firms around the globe. The consolidation
happens for the obvious reasons like cost savings
in the global market and raising the bar of
security levels, protocols, and
compliances. Solution The above fact reveals
the need for small and mid-sized colocation data
centers to come together and compete with the
more prominent brands. They need to either
provide services and solutions to the niche
markets or unique ones who can make them stand
out. Hence, merger or consolidation is a trend
these days. 3. Increase in Containerized and
Modular Data Centers One of the problems that
colocation data centers witness is the reluctance
of CIOs in handing over the complete control of
IT assets and infrastructure. The main benefit
that colocation data centers get is building
their own facilities and/or renovating the
current buildings. Although, rather than
building new ones, firms are more interested in
choosing secure, efficient, less costly, and
containerised/modular solutions.
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As per a report, in 2017, the global
containerised data center market had a value of
4.78 billion, and by 2023, it is forecasted to
reach up to 18.64 billion with a CAGR of 25.46
Solution Colocation managers, have to know
about this trend and leverage the benefits of
colocation. Further, the colocation data centers
can also have modular design and containers, so
that they can provide two-in-one benefits of
colocation and stand-alone containers together.
This modularisation method is in process.
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Do you all have anything to add to the techniques
that the colocation data center markets can
further enhance? Let us know your views.