Colocation providers are now providing unique scalability features with increased control of their data to enterprises to entice them. They are partnering with cloud providers or hardware vendors to offer “turnkey clouds” for their colocation tenants who desire to add a cloud component to their operations. The levels of flexibility now being offered by colocation providers are unprecedented, with solutions from simple data warehousing to high velocity data analytics solutions. These features along with reduced expenses and greater ease of use make colocation a very lucrative business investment for businesses. —
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Shrinking IT budgets coupled with economically infeasible requirements involved in setting up a dedicated data center are among the key drivers of the colocation market. With Colocation, businesses are now able to streamline their operations and concentrate on revenue generation. Colocation also allows companies to utilize the latest developments and technology for their data as the upgrades are provided by the provider with any significant investment from the tenant.
The United States leads the North America Colocation center data market with over 92% of the market share with 1294 colocation centers. Canada follows with 110 colocation centers. Los Angeles leads the way with 60 followed by New York and Dallas. Northern Virginia and Dallas are poised to be high growth regions as demand continues to increase for colocation services. The growing prices of power and water in addition to other critical supplies are becoming worrisome to firms as well as colocation service providers. The introduction of connection fees by water authorities in many regions, one data center project in Denver had been asked to pay a $5 million connection fee. This is a grave concern for new entrants into the market.
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