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Data Center Colocation Market: What are the Main Drivers and Challenges? | China Telecom Corporation Limited, CyrusOne, Cyxtera Technologies, Digital Realty, Equinix, Global Switch, Interxion, KDDI Corporation, Navisite, NTT Communications, Zayo Group

02-22-2019 05:16 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Global Market Insights, Inc.

/ PR Agency: Electronics and Media Industry
Data Center Colocation Market

Data Center Colocation Market

The Data Center Colocation Market is predicted to witness a substantial growth over the coming years with the rise in the adoption of these services in SMEs. High initial costs associated with setting up the infrastructure facilities and the integration of several advanced solutions such as Automated Infrastructure Management (AIM) solutions are driving business expenses. These factors are compelling enterprises to focus on leasing facilities that will help in lowering the mounting expenses. Several advantages offered by these services to the SMEs include increased scalability & flexibility, predictable installation & integration costs, 24x7 support, and improved security of the business data. With increasing data center traffic, SMEs are increasingly adopting hosting services, thereby fueling the market growth.

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The process of hosting an onsite facility requires skilled employees to run the operations. It also involves expenditure on infrastructure maintenance and server management. In addition, setting up a new facility increases the overall CAPEX of enterprises and requires a large amount of initial investments. This has led to SMEs and large enterprises increasingly switching to colocation hosting, thereby driving the data center colocation market demand. These service providers offer several services such as skilled managed IT services, internet solutions, and interconnection services based on enterprise requirements.

The key players covered in this study: -
1. CenturyLink
2. China Telecom Corporation Limited
3. China United Network Communications Co., Ltd.
4. CyrusOne
5. Cyxtera Technologies
6. Digital Realty
7. Equinix
8. Global Switch
9. Interxion
10. Internap Corporation
11. KDDI Corporation
12. Keppel Data Centres
13. Level 3 Communications
14. Navisite
15. NTT Communications
16. Rackspace
17. Singtel
18. Telstra
19. Verizon
20. Zayo Group

The wholesale data center colocation market is anticipated to showcase a growth of nearly 17% CAGR over the forecast timespan. These providers rent the entire constructed facility to customers. They usually serve large-scale enterprises and rent out the data center space that ranges between 10,000 – 20,000 sq. feet or larger along with the cooling & power infrastructure. Several multinational enterprises that need to store a massive amount of data are dependent on these providers. The enterprises are responsible for bearing the costs that are associated with the power, capacity, network connectivity, and internal staff.

Browse Complete Report Summary @ https://www.gminsights.com/industry-analysis/data-center-colocation-market

Wholesale users benefit from economies of scale as the services provide reduced cooling and power costs in comparison with retail colocation. Such factors are encouraging several large-scale industries to establish their facilities in the space offered by these players, thereby accelerating the data center colocation market growth.

The energy sector is expected to witness a high adoption of these services due to the increasing requirements for effective storage facilities for high-performance computing, data transfer & processing, and back-up. The companies operating in this sector are partnering with data center colocation market players for improving the efficiency in these data management tasks.

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Major players operating in the market are Verizon Communication Ltd., Centurylink Technology Solutions, Equinix, Inc., NTT Data Corporation, Interxion Holding NV, Internap Corporation Global Switch Corporation, Cyxtera Technologies, Inc., KDDI Corporation, China Unicom, China Telecom Corporation Limited, Digital Realty Trust, Inc., CyrusOne, Inc., and Rackspace, Inc., among others. Several service providers in the industry are adopting strategies to address the growing demand for colocation facilities from various industrial sectors.

About Global Market Insights:

Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

Contact Us:

Arun Hegde
Corporate Sales, USA
Global Market Insights, Inc.
Phone: 1-302-846-7766
Toll Free: 1-888-689-0688
Email: sales@gminsights.com
Web: www.gminsights.com

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