Colocation Market to Grow to $43.34 Billion by 2018

Colocation Market to Grow to $43.34 Billion by 2018

By Michael Guta

Colocation services help protect the digital assets of businesses and individuals in the event of a disaster of their on-site operations. Whether it is a fire, flood or a cyber attack, having this information housed in a remote data center ensures systems can be up and running with minimal interruption. According to a recent report, the colocation market will grow to $43.34 billion by 2018 from the estimated $25.72 billion in 2013, a compound annual growth rate (CAGR) of 11 percent.

This market is widely segmented by the type of colocation, end-users, verticals and region. Everyone from small office home offices (SOHO) to large-scale enterprises and governmental organizations use colocation services throughout the world. Having the digital asset dispersed throughout the world provides a multi-redundant system that ensures the asset is protected.

Colocation services are also being used by enterprises to reduce their IT investment for their on-site operations. Using cloud technology, they are able to reduce maintenance costs while at the same time leveraging the latest available applications along with security and reliability. They also use colocation services to take advantage of higher bandwidth availability and backup power, which can add up to a significant percentage of IT operational costs.

According to the report from MarketsandMarkets, the demand outweighs the available resources for colocation services, which is exasperated by the expense attached to building new centers that have to meet many of the regulatory compliances.

The data centers are under increasing pressure to improve the way in which the centers operate, especially in regard to power consumption, which is one of the biggest public relations problems the industry faces. With one data center consuming the same power as tens of thousands of homes, they have to start addressing this issue. The need to reduce their carbon footprint is becoming a bigger news item then the valuable service the industry provides for the world we live in today.

More colocation centers are expected to be deployed around the world in the next two years to meet the continual demand with new computing capacity and improved power technology. The report covers market drivers, the competitive landscape, future market opportunities, restraints, and present and future players.




Edited by Rachel Ramsey
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Writer

SHARE THIS ARTICLE
Related Articles

Shining a Light on the Dark Web: Searchlight Cyber Debuts Comprehensive Hub

By: Greg Tavarez    3/28/2024

The Dark Web Hub is a one-stop shop for crucial context and continuously updated information on dark web marketplaces, ransomware actors, hacking foru…

Read More

Stellar Cyber and Trellix Bridge the Gap in Security Operations

By: Greg Tavarez    3/28/2024

Stellar Cyber announced the integration with Trellix Endpoint Security HX to allow customers to deploy more robust security solutions and improve thei…

Read More

CyberSaint Raises $21M in Series A Funding to Continue Securing its CyberStrong Customers

By: Alex Passett    3/27/2024

CyberSaint announced that it succeeded in a huge $21 million Series A funding round. This was led by Riverside Acceleration Capital (RAC) with other i…

Read More

US Education Receives Security Upgrade with Free Browser Protection Offered by Conceal, Carahsoft

By: Greg Tavarez    3/27/2024

Conceal and Carahsoft recently unveiled an initiative to fortify the cybersecurity infrastructure of U.S. educational institutions.

Read More

Cato's AI Takes Control of Security and Incident Response

By: Greg Tavarez    3/27/2024

With Cato's recently announced Network Stories for Cato XDR, advanced AI algorithms instantly identify outages in customer networks and conduct root c…

Read More