Seattle, WA -- (SBWIRE) -- 12/11/2019 -- Data center colocation refers to process of renting out physical space, network bandwidth and other resources by an organization within an existing data center. The process enables sharing of exiting data center resources for deploying and hosting data center services for external organizations. The growing need to expand, move or consolidate data centers is encouraging companies to shift towards colocation services for reducing cost and increasing operational reliability and security.

Key Trends:

The requirement of reliable, secure and scalable data center is the major force driving the global data center colocation market. Apart from this, the need to reduce overall operational cost in the IT industries is another factor fueling the global data center colocation market. Wholesale data center colocation provides large IT spaces to users and it has an efficient cooling and power infrastructure. These benefits provided by the wholesale colocation are creating a demand for wholesale colocation in the market. This is anticipated to further drive the global data center colocation market in the upcoming years.

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The data center colocation market is anticipated to witness substantial growth with the rise in demand for these services from small enterprises. Scalability is a major concern for small & medium enterprises where colocation hosting enables these companies to scale their resources. In addition, most of the colocation service providers offer managed services, such as OS updating, monitoring, replacement of disk drives, and hosting services, to their clients. Other major benefits of colocation data centers for SMEs include security, all-round customer support, reliability uptime, and compliance management.

Market Segmentation:

By Type
- Retail colocation
- Wholesale colocation

By End-Use
- SMEs
- Large enterprises

By Application
- BFSI
- Energy
- Government & defense
- Healthcare
- IT & telecom
- Manufacturing
- Retail
- Others
- SMEs

Regional Analysis:

The global data center colocation market is segmented into five major region namely North America, Asia Pacific, Europe, Middle East and Africa, and Latin America. Among all of them, North America is expected to hold highest growth potential in the data center colocation market in near future. This is due to the presence of key players in the region. Asia Pacific Data Center Colocation Market is expected to have the highest growth rate during the forecast period.
Key Players:

American Telephone & Telegraph, Equinix, SunGuard Availability Services, Interxion Holding, CenturyLink Technology Solutions, Verizon Communication, KDDI Corporation, Navisite, DuPont Fabros Technology, Telecity Group, Global Switch Corporation, NTT Data Corporation, Rackspace, Digital Reality

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