Colocation demand increasing rapidly

Monday 1st December 2014 •
Billy Law-Bregan, Communications Officer

New figuresIMG_3315_jpg from CBRE have shown that demand for Colocation (arguably the most traditional of all Data Centre services) by European companies is up 59% in the third quarter of 2014 compared to the same period in 2013.

These figures back up our own experience that outsourcing of IT infrastructure, and Colocation in particular, is increasingly seen as standard practice for businesses of all sizes. Our own report earlier this year highlighted that 60% of UK SMEs have partly or fully outsourced their IT infrastructure. Even so it is great to see that the market across Europe is in such rude health.

Interestingly the highest take up for 2014 was recorded in London. As the report from CBRE states London is Europe’s biggest market for Colocation services. Of course businesses in London are now able to take advantage of Node4’s own Colocation services much more easily thanks to the opening of our new London office.

As the economic recovery continues to gather pace we expect to see continued strong demand for outsourced IT services. CBRE also notes that: “Modernising customer experiences and improving efficiency has become prioritised”. This is not just great news for vendors though. This demand should continue to spur IT vendors to greater innovation and more flexible service offerings in order to differentiate in a competitive marketplace – a win-win for customers and vendors alike.

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