I N F O G R A P H I C
FROM COST CENTRE TO VALUE DRIVER : THE TRANSFORMATIVE POWER OF COLOCATION
C-suite confidence in the economy remains high , but many business leaders continue to emphasise cost control , predictability , flexibility and risk management .
It is not immune to this VUCA ( volatile , uncertain , complex , ambiguous ) mindset , with IT leaders closely watching their budgets despite the pressure to accelerate Digital Transformation initiatives .
It ’ s a delicate balance , given the urgency to accommodate more resource-intensive AI and other high-density workloads while ensuring the connectivity to the cloud and interoperability of their digital ecosystems – including data as well as applications .
Seeking the sweet spot of investment , cost control and risk management , more IT
leaders are embracing hybrid IT models . They ’ re combining colocation , public cloud , private cloud and on-premises environments to host IT infrastructure , buttressed by the valuable experience many have gained from a decade or more of cloud computing investments .
Forward-thinking leaders understand the benefits of supporting different types of data and workloads across a hybrid IT environment . They are
connecting into interconnected digital ecosystems – including colocation and cloud services – that align with business objectives to deliver value , performance and flexibility .
Increasingly , according to the 2024 State of the Data Center research , they are turning to colocation data centres to carry a heavier , more strategic load and
to support their interconnection requirements .
It ’ s a hybrid world , with all the benefits and challenges that go with it
To remain competitive in today ’ s business environment , organisations are digitally transforming to become more agile , innovative and efficient . Over the past decade , organisations have relied heavily on the public cloud to fuel these modernisation efforts . IT and business leaders view the cloud as an essential platform to replace legacy technology or to quickly add new capabilities that improve agility and flexibility .
However , they also realise the cloud is not the nirvana that many pundits predicted . Concerns over cost predictability , performance and compliance requirements have led many IT leaders to reconsider ‘ all-in ’ cloud approaches . Instead , they ’ re evolving toward a hybrid , ‘ cloudsmart ’ infrastructure that combines public and private cloud , on-premises and colocation services and which provides ‘ native ’, direct interconnections among them for seamless connectivity .
In the 2024 State of the Data Center study , 98 % of the participating organisations said they have currently adopted or plan to adopt a hybrid model using colocation , private cloud and public cloud to manage their workloads . Over the past three years , hybrid cloud adoption has steadily trended upward , with 60 % of the organisations surveyed already using this model in 2024 , compared to 58 % in 2023 and 55 % in 2022 . �
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