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The proliferation of cloud computing in workplaces across the globe has fostered a healthy atmosphere for data center colocation providers.

Cloud computing and data center colocation rise together

The proliferation of cloud computing in workplaces across the globe has fostered a healthy atmosphere for data center colocation providers. Many business leaders would like to expand their cloud storage capacity, yet lack the funds to do so. That said, budgetary constraints haven't decelerated the growth of the cloud market.

451 Research recently noted that it expects cloud market revenue to increase at a 36 percent compound annual growth rate, bringing it to nearly $20 billion by the end of 2016, according to Firstpost.

"Cloud computing is on the upswing and demand for public cloud services remains strong," Yulitza Peraza, an analyst with 451 Research, told the news outlet. "However, public cloud adoption continues to face hurdles including security concerns, transparency and trust issues, workload readiness and internal non-IT-related organizational issues."

Forbes reported that midsize enterprises are the primary catalyst for the ascent of the cloud market. Chief executives are thinking in new ways about how the technology can optimize their business models.

The rising demand for cloud storage has bolstered the value of colocation solutions. These services often provide a secure, high-performance network that has the flexibility to align with specific client needs. It is also widely regarded as a strong alternative to building out an in-house data center.

While cybersecurity measures such as encryption and biometrics have proven to be useful strategies, colocation solutions can be a way for businesses to ensure that they are using secure, high-performance networks.

Cloud capacity demand fuels growth of colocation solutions

The proliferation of in-office technologies such as cloud computing and BYOD have created an array of opportunities for IT managers and tech engineers. As business leaders transition into the era of the digital workplace, they consistently seek trained assistance for the process. Part of this trend is rooted in a knowledge gap in relation to the cloud and other recent developments. However, these chief executives also seek a secure network. This widespread desire has boosted the value of data center colocation as well.

While cybersecurity measures such as encryption and biometrics have proven to be useful strategies, colocation solutions can be a way for businesses to ensure that they are using secure, high-performance networks. This option is almost always less expensive than expanding an in-house data center. And by all indications in the marketplace, the concept is catching on. Through the help of a variety of factors, such as high demand for cloud capacity and even political initiatives, the colocation market is growing quickly.

Global colocation reaches $25 billion in annual revenue
In a recent study, 451 Research found that the global data center colocation market has tallied $25 billion in annual revenue and more than half of that figure is derived from the top 60 providers, Data Center Knowledge reported.

There are 1,086 data center providers in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. They run a total of 3,685 individual data centers. Yet despite the global nature of the industry, the news outlet noted that the top 10 companies lure 28 percent of the sector's revenue.

"At its heart, the multi-tenant data center business is a regional business," Greg Zwakman of 451 Research, a global technology analysis group, told the news source. "So despite active consolidation and some concentration at the top, much of the market remains highly fragmented, with a mix of national and local players."

Legislators in Nevada push for data center support
The Senate Committee on Revenue and Economic Development in Nevada recently introduced a bill that would provide tax deductions to colocation providers, according to the Las Vegas Review-Journal. The group said that the bill could lead to billions of dollars in economic activity in the state.

"As we look at some of the numbers that underlie this element of our economy, they are nothing short of massive," Jeremy Aguero, the principal of AppliedAnalysis, a local IT and finance group, said during a hearing on the Senate bill, according to the publication.

The threat of cyberattacks is ongoing, but there are a growing number of strategies aimed at preventing heavy damage. Colocation is at the top of the list.

Political entities prioritize secure data center services

Businesses, organizations and political agencies around the globe are recognizing the value of cloud computing and have accordingly adapted their business models. Chief executives from New York to Shanghai are streamlining operations by easing the processes of data storage, sharing and backup.

However, a significant percentage of chief executives approach the cloud with hesitance or avoid the technology altogether. Their main concern is the threat of a data breach. Over the past few months, high-profile cyberattacks against major companies like Sony Pictures, Target and bitcoin have led to significant ramifications and renewed people's widespread fears of cybercrime. That said, there are a number of available cyberattack deterrents, many of which are encouraged by political entities, such as the decentralization of data, encryption and biometrics.

Another effective and increasingly popular tactic for improving cybersecurity is data center colocation. This approach to data storage can be much less expensive than an in-house data center expansion. Meanwhile, many colocation providers offer a secure, high-performance network to their clients.

The threat of cyberattacks is ongoing, but there are a growing number of strategies aimed at preventing heavy damage. Colocation is at the top of the list.

New York Attorney General calls for greater statewide data security
New York Attorney General Eric T. Schneiderman recently announced that he will attempt to restructure the state's data security law. New York does not currently have a law that mandates data security protection for consumers.

"With some of the largest ever data breaches occurring in just the last year, it's long past time we updated our data security laws and expanded protections for consumers," Schneiderman said. "We must also remind ourselves that companies can be victims and that those who take responsible steps to safeguard customer data deserve recognition and protection. Our new law will be the strongest, most comprehensive in the nation. Let's act now to make our state a national model for data privacy and security."

Potential for bipartisan agreement on cybersecurity
According to FCW, there is bipartisan support in Congress for a bill that would create a federal mandate for cybersecurity. At this time, there are 47 states that have independent data breach oversight. However, a national standard could lead to a greater push for colocation.

"A single requirement across the states would give companies some confidence that their methods are sound in handling electronic data, an inherently interstate activity," said Rep. Michael Burgess (R-Texas), chairman of the Subcommittee on Commerce, Manufacturing and Trade of the House Energy and Commerce Committee, according to the news outlet.

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Cloud investments bolster value of data center services

As more and more businesses across the globe further embrace cloud computing, the importance of data center performance will continue to grow. A number of high-profile corporations, such as Apple and Amazon, have the capital to invest in their own data center operations. However, the vast majority of cloud users must make tough decisions with a budget in mind. That said, no matter the scale of operation, colocation solutions can be a great way for companies to buttress their existing cloud foundations.

Investors are well aware of the cloud’s emergence and have played a key role in the sector’s appreciation. From early seed startups to later stage operations, cloud services are raising plenty of capital and, in turn, increasing the value of proficient data centers.

Blue Box lures $4 million in VC funding
Cloud service providers and businesses that leverage this technology are drawing sizable investment figures by the day. A good example comes out of Seattle with Blue Box, a private cloud firm that recently raised $4 million in venture capital funding, according to Datacenter Dynamics.

“The combination of our unique IP and true operating experience makes it possible for Blue Box to deliver consistent, reliable, efficient and agile private cloud infrastructure as a service directly and through channel partners,” Blue Box CEO Matthew Schiltz told the news outlet.

The company has data centers in Seattle, Virginia and Zurich. Yet if the investment capital leads to data center expansion, Blue Box may want to consider a colocation provider.

Cloud investors move forward with caution
The TABB Group surveyed 66 investment firms and found that 23 percent expressed comfort with the public cloud. Yet despite this low figure, 60 percent of the survey respondents said that they expect to boost their public cloud spending in the next 12 months, Cloud Tech reported.

“Although the market at large is still not ready to leverage the public cloud for mission-critical operations and proprietary data it considers competitive differentiators, institutions have opened up to the greater possibility of utilizing the cloud to maintain commoditized operations in a cost effective and timely manner,” Shagun Bali, a TABB research analyst, told the news source.

The colocation advantage
Cloud investors and regular users of the technology would be wise to keep colocation hosting in mind. This service can provide clients with a secure, high-performance network and expandable capacity at reasonable costs. It can be a great alternative for a company that wants to expand its in-house data center but doesn’t have the capital to do so.

The data center colocation market will grow as cybersecurity measures are enacted universally.

Data center colocation compliments companies that focus on stronger security

The value of colocation providers continues to grow hand in hand with the proliferation of cloud computing. Business leaders across the globe are seeing the value of this nascent technology because of its ability to streamline operations in a variety of ways. It can significantly ease the processes of data storage, access, sharing and backup and reduce a company's carbon footprint as well.

Despite the vast array of benefits associated with cloud computing, many chief executives continue to express caution. Tech engineers and IT managers have made great strides with cybersecurity methods such as encryption, decentralization and biometrics. However, these developments haven't been enough to quell fears of cyberattacks, especially in the aftermath of high-profile data breaches against Sony Pictures and bitcoin, to name a few.

Data center colocation can be a great option for businesses that want to expand their cloud storage capacity without committing to a major new investment. That said, this strategy will prosper only if cloud users feel comfortable with the technology. And perhaps no sector is more focused on cybersecurity than banking.

The cyber threat against banks
According to The Guardian, a group of multinational cybercriminals pilfered up to $1 billion over a two year period from more than 100 banks in 30 countries. The news outlet also noted that the Bank of England alerted financial institutions in the United Kingdom about the ubiquitous threat of cybercrime.

Zero day attacks – a data breach before a cybersecurity measure has been enacted – are posing some of the greatest risks to banks in the U.K.

"If I was a customer of that bank and they weren't protecting against zero day attacks, I'd take my money out of there," Steve Bell, spokesman for Bullguard, an internet security firm, told the news outlet. "If a bank hasn't got defenses against zero day attacks, they really don't have a handle on cybersecurity."

U.K. banks spend at least 700 million euros per year on cybersecurity, however, the problem is still quite prevalent. Even a seemingly minor attack against a personal account can lead to broad ramifications for a banking service.

"If hackers can access 2 million accounts and siphon off a little bit from each, they can scoop up millions, and the bank probably wouldn't want to publicize this," Joram Borenstein, a spokesperson for Nice Actimize, an IT security group for global financial firms, told the news outlet. "We don't read about attacks on the banks on a daily basis, but I know for a fact in the UK that it's a regular occurrence. The major banks have teams monitoring alerts, unusual behavior and spikes in activity, 24/7."

New York financial leader calls for more stringent bank security
Benjamin M. Lawsky, the superintendent of Financial Services in New York, said that his office is mulling the idea of mandating senior bank executives to prove the strength of their security systems against money laundering and cyberattacks, according to The Wall Street Journal.

The consideration arrives in the midst of regular cyber threats against Wall Street banks. J.P. Morgan Chose & Co. recently noted that a cyberattack this past summer affected approximately 76 million households.

"If this proposal is enacted, as seems likely, senior executives will personally be on the hook for faulty [anti-money laundering] controls, a potentially scary prospect, and one that should cause them to become as personally involved in compliance as they are in financial reporting," Matthew Schwartz, a partner with Boies, Schiller & Flexner LLP, told the news outlet.

Colocation solutions can be an effective way for cloud users to bolster data center performance without heavily cutting into their bottom line. However, the colocation market will reach its true potential as companies enact needed cybersecurity measures as well.

As more and more businesses across the globe further embrace cloud computing, the importance of data center colocation will continue to grow.

Cloud investments bolster value of data center services

As more and more businesses across the globe further embrace cloud computing, the importance of data center performance will continue to grow. A number of high-profile corporations, such as Apple and Amazon, have the capital to invest in their own data center operations. However, the vast majority of cloud users must make tough decisions with a budget in mind. That said, no matter the scale of operation, colocation solutions can be a great way for companies to buttress their existing cloud foundations.

Investors are well aware of the cloud's emergence and have played a key role in the sector's appreciation. From early seed startups to later stage operations, cloud services are raising plenty of capital and, in turn, increasing the value of proficient data centers.

Blue Box lures $4 million in VC funding
Cloud service providers and businesses that leverage this technology are drawing sizable investment figures by the day. A good example comes out of Seattle with Blue Box, a private cloud firm that recently raised $4 million in venture capital funding, according to Datacenter Dynamics.

"The combination of our unique IP and true operating experience makes it possible for Blue Box to deliver consistent, reliable, efficient and agile private cloud infrastructure as a service directly and through channel partners," Blue Box CEO Matthew Schiltz told the news outlet.

The company has data centers in Seattle, Virginia and Zurich. Yet if the investment capital leads to data center expansion, Blue Box may want to consider a colocation provider.

Cloud investors move forward with caution
The TABB Group surveyed 66 investment firms and found that 23 percent expressed comfort with the public cloud. Yet despite this low figure, 60 percent of the survey respondents said that they expect to boost their public cloud spending in the next 12 months, Cloud Tech reported.

"Although the market at large is still not ready to leverage the public cloud for mission-critical operations and proprietary data it considers competitive differentiators, institutions have opened up to the greater possibility of utilizing the cloud to maintain commoditized operations in a cost effective and timely manner," Shagun Bali, a TABB research analyst, told the news source.

The colocation advantage
Cloud investors and regular users of the technology would be wise to keep colocation hosting in mind. This service can provide clients with a secure, high-performance network and expandable capacity at reasonable costs. It can be a great alternative for a company that wants to expand its in-house data center but doesn't have the capital to do so.

In the age of the digital workplace, business leaders are discovering the many advantages of data center colocation.

How to prepare for colocation solutions

In the age of the digital workplace, business leaders across the globe are gradually discovering the many advantages of technologies that can streamline their daily operations. And few strategies have gained more steam over the past few years than cloud computing.

The cloud has made it significantly easier for organizations of all kinds to reduce their carbon footprints and store, share and back up large batches of company information, among a host of other benefits. Understandably, many chief executives have a strong interest in expanding their cloud capacity to meet business demands. However, many of them don't have the capital to fund this kind of plan or they doubt their network could hold up against threats of cybercrime. In these circumstances, which are quite common in global commerce, data center colocation is becoming a strong and increasingly popular solution.

What to consider for colocation
A growing number of businesses view colocation as a viable alternative to building out their own data center. That said, the concept is still quite new to a hefty percentage of cloud users. What are the best practices for colocation?

Ted Davies, senior vice president of the Bick Group, explained to Data Center Knowledge some of the primary reasons for the trend and also some worthwhile preparation steps.

"Capacity is one of the drivers," Davies told the news outlet. "Usually the main driver of colocation or managed services is the company's asset is not functioning well. It's at the end of life, such as power or cooling are insufficient, or it could be capacity."

While colocation solutions can be compatible for a wide range of operations, he added that the partnership should be tailored to the specific demands of each company. This means that the first step, before coming to any kind of agreement, is understanding the needs of the business. After this stage, he noted that many colocation providers can offer more storage capacity on an almost immediate basis. However, it is not as easy to minimize capacity as it is to expand. An accurate estimation of storage demands are quite important to the process.

A few other benefits of colocation
Continuity Central reported that colocation can provide economies of scale, improved bandwidth, lower latency rates, higher performance networks and constant cybersecurity, to name a few advantages.

The news outlet noted that businesses with an existing IT infrastructure don't need to completely alter their setup to embrace the cloud. With colocation, chief executives should be able to reap the many benefits of the cloud without setting back their plans.

The proliferation of digital workplace strategies has gone hand in hand with the growth of the data center colocation market.

The state of the data center colocation market

The proliferation of digital workplace strategies such as cloud computing and "bring your own device," or BYOD, has gone hand in hand with the growth of the colocation market. As more business leaders hope to expand their infrastructural capacity to keep pace with business demands, colocation data centers are becoming an increasingly vital part of global commerce.

A new report by Research and Markets projects the data center support infrastructure market to appreciate from $27.51 billion in 2014 to approximately $44.4 billion in 2019 with a compound annual growth rate of 10.1 percent.

Chief executives weaving outsourced data centers into their business models would be wise to understand the primary advantages of this kind of transition. Data Center Knowledge reported that this strategy can save a business plenty of capital while also providing access to top-shelf technology. Many colocation providers can also offer a high performance network and advanced cooling systems.

The news outlet added that a colocation data center outside of a city can provide all of the standard benefits of the strategy while also distancing itself from the typical hubs of cybercrime. This approach can also help a business avoid some of the higher costs that are usually affiliated with urban colocation solutions.

in-the-age-of-the-digital-workplace-business-leaders-are-discovering-the_21_40039751_0_14095293_500

How to prepare for colocation solutions

In the age of the digital workplace, business leaders across the globe are gradually discovering the many advantages of technologies that can streamline their daily operations. And few strategies have gained more steam over the past few years than cloud computing.

The cloud has made it significantly easier for organizations of all kinds to reduce their carbon footprints and store, share and back up large batches of company information, among a host of other benefits. Understandably, many chief executives have a strong interest in expanding their cloud capacity to meet business demands. However, many of them don’t have the capital to fund this kind of plan or they doubt their network could hold up against threats of cybercrime. In these circumstances, which are quite common in global commerce, data center colocation is becoming a strong and increasingly popular solution.

What to consider for colocation
A growing number of businesses view colocation as a viable alternative to building out their own data center. That said, the concept is still quite new to a hefty percentage of cloud users. What are the best practices for colocation?

Ted Davies, senior vice president of the Bick Group, explained to Data Center Knowledge some of the primary reasons for the trend and also some worthwhile preparation steps.

“Capacity is one of the drivers,” Davies told the news outlet. “Usually the main driver of colocation or managed services is the company’s asset is not functioning well. It’s at the end of life, such as power or cooling are insufficient, or it could be capacity.”

While colocation solutions can be compatible for a wide range of operations, he added that the partnership should be tailored to the specific demands of each company. This means that the first step, before coming to any kind of agreement, is understanding the needs of the business. After this stage, he noted that many colocation providers can offer more storage capacity on an almost immediate basis. However, it is not as easy to minimize capacity as it is to expand. An accurate estimation of storage demands are quite important to the process.

A few other benefits of colocation
Continuity Central reported that colocation can provide economies of scale, improved bandwidth, lower latency rates, higher performance networks and constant cybersecurity, to name a few advantages.

The news outlet noted that businesses with an existing IT infrastructure don’t need to completely alter their setup to embrace the cloud. With colocation, chief executives should be able to reap the many benefits of the cloud without setting back their plans.

the-proliferation-of-digital-workplace-strategies-has-gone-hand-in-hand-_21_40039351_0_14109253_500

The state of the data center colocation market

The proliferation of digital workplace strategies such as cloud computing and “bring your own device,” or BYOD, has gone hand in hand with the growth of the colocation market. As more business leaders hope to expand their infrastructural capacity to keep pace with business demands, colocation data centers are becoming an increasingly vital part of global commerce.

A new report by Research and Markets projects the data center support infrastructure market to appreciate from $27.51 billion in 2014 to approximately $44.4 billion in 2019 with a compound annual growth rate of 10.1 percent.

Chief executives weaving outsourced data centers into their business models would be wise to understand the primary advantages of this kind of transition. Data Center Knowledge reported that this strategy can save a business plenty of capital while also providing access to top-shelf technology. Many colocation providers can also offer a high performance network and advanced cooling systems.

The news outlet added that a colocation data center outside of a city can provide all of the standard benefits of the strategy while also distancing itself from the typical hubs of cybercrime. This approach can also help a business avoid some of the higher costs that are usually affiliated with urban colocation solutions.

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