Colocation is a term used to define a Data Center that is a network-connected, secure and resilient commercial facility for housing the telecommunications and IT infrastructure. Colocation involves the sub-letting of space in a safe and secure environment for Internet Service Provider (ISP), Application Service Provider (ASP) systems and equipment and corporate IT systems. Both carrier and carrier-neutral organizations provide Data Center Colocation Services.
Colocation services have been growing rapidly due to various advantages associated with it. They enhance business functionality, and let organizations concentrate on their core competency. Businesses can also easily meet the fluctuating demands of its customers and enhance its customer services.
The North American Data Center Colocation market is very competitive due to the presence of many large players such as AT&T, Equinix, Navisite, Savvis, Terremark, etc. Further, this market is expected to grow due to the increase in adoption of Colocation services by companies due to its cost benefits.
Presently, the North American Data Center Colocation service vendors are developing solutions, such as advanced cooling systems, uninterrupted power supply, and intelligent storage space to reduce their operational costs (infrastructure cost). Further, these service providers are offering services such as maintenance of servers, 24/7/365 IT support, etc. This enables organizations to maintain their network hardware (such as servers), remotely.
The North American Colocation service vendors have targeted their services to suit the needs of small and mid-sized companies. Further, larger companies are also taking interest in the Colocation services due to Colocation service benefits such as low operation cost; thus, driving the North American Colocation market forward.
This report by Technavio Insights highlights the scope of the North American Data Center Colocation Services market over the period 2009-2013, along with trends, drivers, growth inhibitors and a few major vendors in the market.