A colocation or colo, is a data center facility where a particular business can lease space for servers and related hardware which assembles its IT needs. Colocation center provides power, cooling facilities, space and security for networking equipment of other organization and connect them to various telecommunication service providers with minimum cost and complications. The colocation market is classified into two categories, retail colocation and wholesale colocation. A data center collocation system covers on-site system administrators, security and network providers, backup power supplies and various physical security services.
The key factor that complements the increasing demand of colocation systems include the adoption of cloud computing as compared to physical infrastructure. The colocation service providers have joined hands with the cloud computing providers in order to offer managed data center services to the colocation customers, enabling businesses to strengthen their operation and reducing the maintenance cost for enterprises. Huge capital investment in installing data centers is a major challenge for the market. A huge development in the field of IT and increasing demand of IT infrastructure spaces is likely to bring strong growth opportunities in the near future.
The data center colocation market has been segmented based on types, industry and geography. On the basis of type, the market has been bifurcated into retail and wholesale colocation. Whereas, by industry the market has been segmented into IT, BFSI (Banking, Financial Services and Insurance), Manufacturing, Energy, Healthcare, Government and others. By geography the segmentation includes North America, Europe, Asia-Pacific (APAC) and Rest of the World.
The key market players that offers data center colocation services are Equinix Inc, American Telephone & Telegraph Inc (AT&T), Centurylink, Digital Realty, KDDI Corp., Data Foundry, DuPoint Fabros Technology, Verizon Communications Inc, Global Switch and TeleCity Group.
Data Center Colocation Market Segmentation
The market is segmented on the basis of type, Industry and Geography.
- Retail Colocation
- Wholesale Colocation
- BFSI (Banking, Financial Services and Insurance)
- Energy and Utilities
Key Market Players:
- Equinix Inc
- American Telephone & Telegraph Inc (AT&T)
- Digital Realty
- KDDI Corp.
- Data Foundry
- DuPoint Fabros Technology
- Verizon Communications Inc
- Global Switch
- TeleCity Group