F E A T U R E
WHY COLOCATION
IS SET FOR A STARRING ROLE AS BUSINESSES ESCAPE THEIR ON-PREMISES PASTS
Nick Layzell , Customer Success Director , Telehouse Europe , provides insight into the growing impact of colocation , highlighting how it ’ s poised to transform operations , positioning itself as the preferred service model for businesses seeking scalability , efficiency and innovation . unning an in-house
R data centre is expensive , with multiple overheads and many drawbacks , which is why colocation is set for considerable growth . Globally , the colocation market size is expected to reach US $ 155.40 billion by 2030 , growing at a compound annual growth rate ( CAGR ) of 14 % from 2030 , according to a study by Grand View Research .
In Telehouse ’ s Vision 2030 research , 54 % of organisations said they are opting for colocation services over on-premises IT infrastructure , significantly up from the 33 % in the company ’ s 2020 research .
Colocation offers organisations the ability to lease space for networking hardware within a facility that provides comprehensive connectivity , advanced cooling systems , networking , internet bandwidth , power and stringent security .
While the colocation provider ensures the facility ' s operational excellence and security , clients retain responsibility for their own equipment .
The growth in colocation is driven by several factors including Digital Transformation programmes and demand for high-speed interconnection services and scalable environments .
Whereas an in-house data centre offers organisations full ownership of their infrastructure , they bear the managerial burdens and cost of equipment , cooling and power , along with compliance with security regulations . When problems occur , downtime costs mount rapidly . The alternative is to migrate to the cloud . But in this year ’ s Flexera State of the
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