Global Colocation Market Attains Maturity

Today, cost is major motivating factor when business owners approach a colocation provider. Likewise, the budgetary benefits of these strategies are only growing. Furthermore, a study carried out by “Infiniti Research” indicated that the colocation segment in the North America would grow at an annual rate of nearly 13.36 % during the forecast period of 2012 – 2016. While the “TeleGeography” ranks international operators in the colocation space, it confirms that competition level in the colocation industry differs majorly in terms of region and maturity level. In recent times, the aforementioned industry grows with reputed business leaders participating in mergers, acquisitions and collaborations.

 

According to an article published in the “Data Centre Knowledge “the key market player “Equinix” reserves nearly 10 percent of the colocation segment , is planning on acquiring “TelecityGroup”. Moreover, there are assumptions that “Digital Reality”, second largest operator in the aforesaid segment will soon acquire Telx. The acquisition would not on only encourage consolidation but also an entry into the retail colocation market for Digital, popular in the wholesale data centre operator.  Besides this, colocation providers are also seen upgrading their existing their data centre offerings.

 

Last month, 365 Data Centers disclosed that it has upgraded its data centres, to ensure speedy delivery, minimum latency and lower distribution cost of the content. Demand for rich content has triggered growth in the video and media industry worldwide. The CEO at 365 Data Centers, John Scanlon said “Each of these transactions furthers our commitment to facilitate the move of content and cloud services closer to the edge, which significantly improves the user experience. Our facilities offer a rich fabric of interconnection options to multiple distribution networks and are professionally managed to deliver 100 percent uptime. We will continue investing in strategic markets where we enjoy a competitive advantage and where the market is growing rapidly. In most cases, that means emerging Tier 2 cities in the U.S.,”

 

Apart from this Frost & Sullivan predicts that revenue for the colocation industry in United States would increase by 12 percent annually in 2017. Simultaneously, several colocation market operators are observing data center as their non-core functions best suited for enterprises specializing – thus increasing the demand of the colocation services. According to a report published by “Allied Market Research” titled “World Colocation - Market Opportunities and Forecasts, 2014 – 2020” the colocation segment would see a CAGR of 9.1 percent during the forecast period 2015 to 2020. 

Related Post