Switch - Changing the Colocation Industry


Switch - Changing the Colocation Industry

By Susan J. Campbell

The idea to go green in the enterprise is not new as companies have been long looking for strategies that allow them to save money and look good in the eyes of the public. For those who offer colocation services, this desire means greater demand if their focus is already guided toward a reduction in the carbon footprint.

A recent report, “Colocation Market [By Solutions (Retail, Wholesale), By End Users (SMB, Large Enterprises, SOHO), By Verticals, By Region, Demand and Supply] - Worldwide Market Forecast and Analysis (2013 - 2018)” shows the data center colocation market is moving in the green direction. Advancements in eCommerce, Internet and networking technologies are helping to drive the market as companies demand customization, superior scalability and the ability to upgrade features.

Produced by MarketsandMarkets, this report highlights the expectation that the colocation market worldwide hit $25.72 billion in 2013 and will continue to grow to reach $43.34 billion in 2018. The Compound Annual Growth Rate (CAGR) during this time period is projected to be 11 percent as new innovations help to uncover untapped areas. The largest segment of the market remains retail colocation, with wholesale close behind.

The biggest market in terms of spending and adoption is expected to be North America. At the same time, the increasing demand for colocation in developing regions is expected to enhance the growth of the market even further. As stated earlier, retail and wholesale services present the greatest opportunity for growth, with promise in every industry vertical.

The majority of wholesale colocation vendors are coupling skilled managed services and interconnection facilities as part of their expanding portfolios. Real Estate Investment Trusts (REITs) and tier 1 companies with significant data center spaces spread throughout the world tend to dominate the market.

One company in particular is trying to change the way colocation is offered in the industry. Switch has made a name for itself by offering proven services and meeting market needs. But focusing on colocation alone wasn’t enough to provide opportunities or meet expanding market demand. The company has now developed a technology ecosystem, allowing enterprises to leverage its access to recourses to shore up their success in this space.

To expand more on the concept, Switch recently joined MSPToday’s Rachel Ramsey in the TMC newsroom at ITEXPO. Check out their conversation and what this company has planned for the future in this ITEXPO video.

Edited by Cassandra Tucker

MSPToday Contributing Editor

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