For a long time now, financial firms have been among the world’s foremost curators of data. For every client they add and every transaction they make, there’s a paper trail, and new information is piling up on a daily basis. The best financial organizations work doggedly to save every scrap of information about their activities.
The problem, of course, is where to store all that info. For big companies with staggeringly large stockpiles of data to maintain, it can be difficult to keep it all saved locally on employees’ machines – and even if that is feasible, it ignores the challenge of saving backup copies for disaster recovery purposes. No, financial companies need a better solution than that. What they need is data centers.
Unfortunately, such facilities can be hard to come by. This is why today’s business leaders have gone off in search of more creative solutions – including data center colocation.
Finding real estate for data
Your data is just like any other asset of your business, like your employees or your equipment – you have to find space for it. And in the financial sector especially, such space tends to be limited. This is largely because many financial firms operate in New York, where real estate is at a premium.
According to Seeking Alpha, this leaves business leaders looking for other ways to house all that data. Building a new data center in that region of the country would be extremely difficult, as noted by Shally Bansal Stanley, managing director for global services at Acumen Solutions.
“There is no data center space in the New York and Northeast corridor,” Stanley told the news source. “It’s driven a lot of companies to change how they buy, build and manage their data centers.”
An industry-defining moment
Because there’s so little space for data, companies are trying to do less than more – for example, by using colocation to house their data more efficiently. Paolo Gorgo, founder and CEO of Nortia Research, told Seeking Alpha that we’re now at an inflection point in the financial sector, as providers will be lining up to help them deploy their colocation plans.
“In spite of the distress recently experienced by many financial institutions, it looks like this is a key moment for the definition of who, among colocation providers, will gain a leading role in the sector and attract the major players within its data centers – no doubt the domino effect this event will generate might guarantee a great long term business to the winner.”
Why colocation is the answer
While housing data can be taxing both financially and space-wise, there’s reason to believe that colocation solutions can be a solution to the problem. With data center colocation, there’s no daunting construction project to be done – all you need is to set up servers and cables, plug and play.
Financial data center construction may not be feasible for many in today’s economy, but not to worry. There’s another way to confront the data curation challenges of the 21st century.