The colocation hosting market is expected to grow at a 16.57 compound annual growth rate from 2012 to 2016, according to market research firm TechNavio. Over the past few years, colocation has been a top consideration for enterprises in many different industries. As capital and operational expenses related to data management and IT infrastructure continue to escalate, many companies have found that some degree of managed hosting solutions have best equipped them to face the challenges ahead.
Colocation hosting offers several tangible benefits with direct positive ROI, keeping companies lean, agile and prepared to ready to explore innovations in technology or business practices.
1. Colocation hosting regulates IT costs
Many organizations trying to sufficiently support growing IT needs fall into one of two camps – companies with aging infrastructure that cannot provide optimal availability, or rapidly growing organizations with a lack of system and network support. Replacing costly data center and server equipment can take a long time to complete and puts the organization at increased risk for system component incompatibility and unplanned downtime. In the case of newer or rapidly growing companies without a lot of legacy infrastructure in place, coping with higher demands can lead to sporadic reliability and ultimately slow down the speed of business.
In a colocation hosting environment, IT departments are relieved of the need to manage bloated infrastructure logistics. They can retain oversight of their systems without the higher costs and unpredictability of granular infrastructure management. Network support issues can be dealt with through contributions by the hosting provider, which typically provides 24/7 network and security support, and ensures that systems operate at their highest functionality. As more mission-critical business components depend on IT, making IT more dependable is a must.
2. Colocation hosting improves network reliability
Maintaining highly available uptime is a critical part of enterprise networks, especially in the use of application and email servers that maintain connections with remote workers, business partners, and clients. Most colocation hosting facilities have premium fault-tolerant fiber solutions and dedicated connections to other networks across the world, making their infrastructure more reliable than connectivity a company has in-house.
3. Colocation hosting permits optimal siting of data and network resources
One of the key benefits of colocation hosting is implied in its name. While a company’s physical location may be ideal for its business interests, it may not be optimal where data and network interests are concerned. For businesses with operations in areas with volatile climates, mediocre network coverage, or prohibitive real estate costs, moving data and IT infrastructure needs offsite can generate substantial cost savings and increase peace of mind.
4. Colocation hosting provides access to superior bandwidth
Businesses keeping their data center and server needs onsite likely invest in more inflexible and unnecessarily expensive network connectivity to obtain the required bandwidth. Many companies end up paying for peak-level traffic all the time, in order to avoid the risk of bandwidth shortages when demand spikes. Insetad, colocation hosting providers offer scalable bandwidth services, as they can allocate quantities of shared bandwidth to whichever tenant needs it at the moment.
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