To give you a better idea about the trends in colocation hosting, we’ve put together the top colocation statistics for 2019. Find out just how popular colocation is and why your business could benefit from it. If you are looking for the best business colocation hosting option in Atlanta, contact Digital Service Consultants today.
The following are a selection of the top colocation statistics for 2019. They cover areas of growth in the market, size of the market, who is providing these services, and colocation’s relationship with the cloud.
The Growth of Colocation Hosting
The colocation market is expected to grow at a 15.4% compound annual growth rate
between 2016 and 2020
There’s no doubt that the popularity of colocation hosting has been growing over recent years. The following colocation statistics clearly back this up.
According to a news release from Globe Newswire “The colocation market is expected to grow at a 15.4% compound annual growth rate between 2016 and 2020.”
In a 2017 survey done by Vertiv (formerly Emerson Network Power), 226 US enterprise data center managers were asked about their use of colocation services. “47 percent of these managers use more than one type of data center in their operations.”
According to QuoteColo, “90% of senior executives reported that their data center budgets have been increasing year over year.”
Some of the reasons why colocation is so popular and continues to grow is because colocation data center providers help organizations:
- Scale their data storage requirements quickly and cost effectively
- Meet security compliance
- Lower IT infrastructure costs
- Recover data in case of a disaster
Colocation gives you an offsite backup in case of a disaster
How Big Is Colocation Hosting?
The data center and colocation market is expected to be worth $54.8 billion by 2020
The following colocation statistics will give you a better idea about how big of a business colocation is worldwide.
According to the report done by the Colocation Data Center Industry: Global Markets to 2020 “the data center and colocation market is expected to be worth $54.8 billion by 2020. That figure is well up from $30.9 billion in 2016.”
The big IT corporations also see the value in the colocation market as is evidenced by their spending. For example, according to a news release from Globe Newswire,” in 2016, Amazon, Microsoft and Google spent a combined $31.5 billion on data centers, up 22% from 2015.”
Colocation is a multi-billion dollar industry worldwide
Who Is Providing Colocation Hosting
43% of the world’s operational space for colocation is in North America
North American data center providers have led the way in colocation hosting. However, as you can see from these next colocation statistics, that trend is shifting. In addition, you will see that there isn’t a huge monopoly in this sector.
According to Quotecolo, currently “43% of the world’s operational space for colocation is in North America.”
By 2020, however, a projection made by Structure Research estimates that Asia will overtake North America in Revenue generated by colocation. The projections are as follows:
“Asia/Pacific – 39.2%
North America – 38.1%
Europe, Middle East, Africa – 20.9%
South America – 1.8%”
Globe Newswire points out that, “The four largest colocation centers account for only 21.1% of revenues in 2016.”
In this same article by Globe Newswire, BCC Research Senior Editor, Michael Sullivan points out that “the global colocation data centers market is relatively fragmented with only a few global players having more than a 5% market share.”
Security of their data is a major concern for businesses
Colocation and the Cloud
Cloud-based storage will see 50 fold growth between 2010 to 2020
Both colocation and cloud hosting offer businesses the security of having their data backed up offsite. This is very beneficial in case a disaster occurs at their original site. Offsite data can then be recovered quickly from the colocation or cloud provider.
Because of this, according to Quotecolo, when surveyed, “50% of senior executives reported that they believe that the majority of their data would be hosted by colocation centers or the cloud.”
Along with colocation hosting, cloud-based hosting is also growing very quickly.
An article posted by Slideshare outlining key industry trends predicts that “cloud-based storage will see 50 fold growth between 2010 to 2020.”
Forbes makes its own predictions about the growth of the cloud, stating that “83% of enterprise workloads will be in the cloud by 2020.”
And a survey cited by Rightscale suggests that “private cloud adoption increased to 75 percent from 72 percent in 2017.”
However, one of the biggest drawbacks for companies considering using the cloud is the concern about security. This is evidenced by the fact that “66% of IT professionals say security is their most significant concern in adopting cloud computing strategies.” according to Forbes.com.
DSC is a trusted colocation and cloud back up provider in Atlanta
Looking for a Trusted Colocation and Cloud Hosting Provider? Contact DSC
Digital Services Consultants is a premier data center located just outside of Atlanta, Georgia in Buford, that offers you the best server colocation and cloud hosting possible. We provide a full range of internet- related and cloud services including colocation hosting, cloud backup, system monitoring, cloud storage for businesses, software hosting, dedicated email, website development and implementation, web hosting, e-commerce, security, and a variety of related products and services. We also provide network support for Linus, Microsoft server and workstation platforms, Fortinet firewalls, and Cisco Systems. DSC has been a trusted name in the IT industry in Atlanta for more than 30 years. Contact us today for all of your internet-related requirements.
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DSC Gives Back to the Georgia Community
DSC is proud to be part of a thriving Georgia community, and we care enough about our community to want to give something back. That is why we started the “Next Generation” training days. During the training, our students learned about the history of CPUs and GPUs. The training focused on the performance and success of different models and brands and which ones excelled during their various time periods. You can access an audio recording of the training on the DSC website for free. Click here to listen to this informative podcast.