3 Trends that are Driving the Data Center Industry


With changes in the data center industry coming quick and furious, it pays to stay on top of the trends that are at the forefront. Here are just three of the trends that could help you adapt in an field that requires you to adjust to stay competitive.

Here are 3 of the trends driving change in the data center industry:

1. Use of data center colocation as a component of cloud computing solutions. According to recent research, data center colocation is expected to hit $54.13 billion in sales by 2020, up from $25.70 billion in 2015. That compound annual growth rate (CAGR) of 16.1 percent can be attributed to the interest in cloud computing services. It’s part of an overall solution as large enterprises look to outsourced and managed services instead of deploying their own IT infrastructure.

2. Identifying ideal locations for data centers. While hybrid solutions have long been considered essential for data center goals, location is emerging as a critical part of that objective. According to recent research, data centers of the future lie in hybrid solutions — but not just hybrid solutions that involve the cloud. Analyst firm IDC indicated that planning the location of data center resources of the future will be critical. “Geography matters more than ever — where you place these data center assets,” said IDC vice president Richard Villars.

3. Wholesale and retail colocation expected to grow. Through 2016 and beyond, colocation solutions are expected to grow — both in retail and wholesale colocation categories. Studies show that small and medium businesses will be attracted to retail colocation services because they do not require a large space for their equipment and servers, while larger companies are expected to drive an intense demand for wholesale colocation, which is more cost efficient overall.

About Tony Johnson

Innovative helps you balance your business requirements, service levels, staff and infrastructure to make your IT as effective as possible. Tony Johnson is Vice President of Operations at Innovative and has been helping clients optimize their IT spend and operations since 1983.

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