Colocation market poised for growth

Thursday 20th February 2014 •
Billy Law-Bregan, Communications Officer

IMG_3315_jpgA recent report by TechNavio has forecasted that the data centre colocation market in the UK is to grow at a CAGR of 14.43% in the next five years.

Here at Node4, we can’t say that we are surprised to see this sort of growth being predicted. Data is becoming more and more important to organisations of all sizes, in every sector, and as a result the need for storage is increasing exponentially. But as on-premise storage solutions increase in cost and complexity, most UK businesses are considering colocation as a cost-effective and reliable alternative.

Indeed the report cites increased SME adoption of colocation and the increasing complexity of network infrastructure as the two key drivers behind the expected growth. Our own research of IT decision makers at UK SMEs also supports these forecasts – indicating that 70% of SMEs now rely on at least some element of outsourced IT infrastructure.

Colocation offers users significant benefits by providing space and power for hosting customer owned equipment in a secure, resilient facility. By managing all of these elements for users, colocation vendors can offer businesses significant cost savings compared to managing an in-house data centre.

Choosing the right colocation partner is just as important as the technology itself. Many SMEs want their data to be nearby, so having a locally based data centre is of the utmost importance to them. But regardless of location, working with a partner that you can trust is paramount.

No two organisations are the same, and SMEs need to find data centre vendors that understand their businesses and work in partnership to provide colocation solutions that are tailored to the exact requirements of their business.

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