Maturity marking data center colocation sector

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There are many arguments to be made as to why an organization should work with a colocation provider. This is not meant as marketing hype or hyperbole, but instead is a reflection of the diverse solutions made available by colocation vendors. This diversity is made possible because colocation models are well refined and capable of meeting a diverse range of needs. This maturity was a central point at the recent HostingCon event, where Phil Shih, of Structure Research, explained that maturation is a common theme in the colocation sector, Data Center Knowledge reported.

Data center colocation sector becoming more refined
Shih explained that the colocation sector had been experiencing annual growth rates in the high teens, a rate that has diminished in recent years, according to the news source. Colocation has not experienced a massive decline or anything, it is still rising at a rate in the low teens. This expansion is significant, and the decrease in industry expansion is not a sign of problems in the colocation sector. Instead, the market for various colocation services has matured to a point that growth is slower, but the industry is still in a healthy place.

3 ways colocation maturity benefits customers
Increased maturing in the colocation sector may be leading to slower growth, but it also points to major benefits for companies look to partner with a colocation provider. A few ways that colocation maturity stands out include:

Management services: A data center services provider can take functionality beyond just hosting systems in a facility, but also managing them for clients. Advanced management capabilities including being able to operate within specific regulatory guidelines. For example, a healthcare provider can partner with a colocation vendor that will manage the systems it hosts in the third-party facility in compliance with HIPAA regulations. 

These sorts of mature data center services can play an invaluable role in helping organizations ease their IT burden by moving systems into a third-party data center and not have to worry about managing them. This is particularly important as more organizations make a move to the cloud. The rise of cloud services is forcing IT teams to focus more on strategic operations and less on maintaining hardware. Data center services make this possible.

Cloud integration: Getting data to flow freely between cloud systems, premise-based infrastructure and systems in various hosting centers. Colocation serves as an ideal hub in these multi-faceted technology environments because data center connectivity solutions offered by colocation vendors provide an ideal conduit for data transit to diverse application and system architectures. This is especially true as colocation has evolved and matured.

Colocation providers have long built their facilities close to major operator networks. However, improvements in interconnects and internal networks have positioned some colocation vendors to maximize this advantage and provide an ideal complement to cloud and Web hosting strategies.

High-density computing: Supporting high-density system architectures is becoming increasingly important for businesses in many sectors, meaning organizations need to overhaul their data centers to support changing technology requirements. Renovating or building a data center to support high-density computing can be so expensive that it is out of the reach for most businesses, a major problem as companies of all sizes become more dependent on technology.

Colocation providers have gradually matured to the point that their power, cooling, network and facility architectures are able to support high-density computing in a cost-efficient way. Customers leasing colocation space can take advantage of this functionality to meet demanding contemporary IT requirements.

Businesses are facing a wide range of technology challenges as they try to adjust to emerging trends like cloud computing and big data. The maturation of the colocation market presents organizations with an effective way to handle these trends.