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2016 Trends for Colocation Server Hosting

Posted by QuoteColo on August 10, 2016 - Updated on August 10, 2016

colocation trends

The last few years have proved to be exciting ones for the colocation industry and has created some interesting trends. This alternative form of hosting has gone from relative anonymity to a mainstream solution that companies of all sizes are considering for their needs. However, the best is still ahead of us. Below are some amazing trends to watch out for in 2016, a year that will advance the world of colocation even further.

Migration Will Continue on a Large Scale

The Uptime Institute Data Center Industry Survey of 2016 revealed a number of interesting facets of the industry, but one of them was especially telling for colocation. When asked, 23% of senior executives in the industry reported they were confident that their entire IT workloads would be hosted in colocation data centers or the cloud by the end of the year.

Keep in mind, too, that at the moment, 20% of all IT assets can already be found in colocation centers and you have some idea of how quickly this form of hosting is becoming the standard.

Colocation Providers Are Spending More

As you can probably imagine, in order to meet this demand, current colocation providers are going to need to begin spending more too. This is no small sum, though. By the end of 2017, it’s expected that spending will go from its current amount of $22.8 billion to $36 billion worldwide. Fortunately for the providers, revenues are also expected to increase 63%.

Colocation-Specific Security Will Grow

Colocation obviously has a lot going for it, but it’s far from perfect. Like any digital asset, it’s possible for a malicious party to gain access to it and cause all kinds of problems for companies who are hosting their sensitive data on it.

While colocation provides an arguably safer solution than traditional servers, you can still expect that 2016 will see more security measures designed specifically for this type of data center and the clientele who use it.

Uptime Institute Certifications Are Necessary

When colocation was still in its infancy, and even up to a few years ago, it wasn’t necessary for providers to have Uptime Institute certifications to attract customers. However, that’s changing and, by the end of 2016, you can expect demand for these certifications to force providers into getting them.

That’s because the market wants to do business 24/7, 365 days out of the year. As a result, colocation providers are going to need to prove they can acquiesce.

Scalability Will Also Become Important

Another thing colocation data centers are going to have to accommodate is the need for scalability. Customers want to know that, down the road, if they require an extra 500 to 1,000 square feet, they won’t need to move everything to another data center. Vertical growth and adequate resources for necessary power will help providers meet these demands and do so affordably.

The Hybrid Data Center Model Will Increase in Popularity

Even though colocation continues to prove itself and find new fans all over the world, taking the step to migrate is still a scary proposition for many. It’s a big leap to take, especially for companies with lots of legacy software to consider.

That’s why 2016 is going to continue to see a rise in the hybrid data center model. This allows companies to run legacy, public and private cloud infrastructures.

As you can see, 2016 is going to be another big year for the world of colocation. These trends will also produce ripple effects that help further the industry even more, meaning the way hosting is done will soon be unrecognizable compared to where it was a decade ago.

Categories: Colocation

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