collocationFrom large corporations to small companies, businesses today are crossing over to colocation services. This trend continues to grow due to the need to quickly and efficiently access new technological advances while reducing business expenses. Colocation also reduces the stress of constant employee training as technologies change.
In general, there is an overwhelming drive in today’s business world for more IT capabilities to stay productive and ahead of the pack. But what exactly is driving the growth in the colocation industry? Analysts point to the following qualities businesses must have in order to survive and prosper in today’s ever-changing markets:
Power and Efficiency
A center designed to merge technology and house it off-site allows companies to focus on other employee needs and expenses. Colocation not only provides independent outsourced business access to more power, it also improves networking capacity. It eliminates the need to plan and build a data center on site that must be efficiently run and safeguarded.
Safety and Security
Whether it’s tornadoes, earthquakes, or floods, any crippling disaster can compromise the safety of data. Often, data might be completely lost forever. Off-site data centers act as a protective backup for company data and networking needs in the event of fire or other natural disasters.
Security breaches are another major problem. In fact, experts say concerns about security are the main factor behind the growth of the colocation market. Colocation offers an expert solution to security issues because, through this system, businesses can have access to a range of professionals who manage threats, contain security breaches, and make the required repairs. This means that company managers are freed from the burden of keeping private data or other information safe, and can focus exclusively on productivity.
Budget and Expenses
Colocation provides a great budget-cutting solution when it comes to data usage, storage, and maintenance. The option allows businesses to pay only for the networking and storage they require. Thus, they don’t have to use either generic or expensive exclusively-tailored bundle packages to fit their needs.
A colocation solution also relieves companies of the costs of having to build, staff, and maintain data centers of their own. The fees for this technological option far outweigh the expenses of having a company data center on site.
As technology moves forward, the colocation option is becoming more popular. Companies now have a choice between hiring highly skilled workers who can deal with new technological trends or adopting the colocation solution to handle and maintain off-site date and equipment. Colocation solutions, managed by an off-site provider, eliminate the expense of an in-house specialist. Also, it resolves the problem of continual employee training as data storage and networking solutions change with the times and trends.
Whether in the context of cost-effectiveness, networking, or staffing advantages–colocation allows a business to have more for less. Industry experts have projected statistics that predict a Compound Annual Growth Rate (CAGR) of 13.59% through 2018. The increasing demand for this alternative is fueling growth and innovation as it benefits all types of business models. In return, the efficiency of such an option saves money not only for companies but also for consumers due to a trickle-down effect. In this situation, everyone wins.
If you’re considering colocation solution for your business, now is the time to take the plunge, merge your technological needs and move them safely and efficiently off-site.