Global Colocation Industry To Be Dominated By Retail And Wholesale Hosting Solution

The growing demand for Cloud technology drives the world colocation market today. According to an article published in the “Data Center Knowledge “the colocation segment is undergoing consolidation with various active participants considering collaboration, acquisitions and mergers. Furthermore, a study conducted by IMS Research firm, the aforesaid market in North America was valued at $ 6.5 billion in 2012. In addition IMS’s research indicates that the colocation industry would increase by $10 billion by the end of 2017. This growth would be visible in both retail as well as wholesale colocation data center services, and shows a strong foothold in the demand for multi-tenant space. In a discussion held at the “Data Center World “, the associate director at IMS Associate, Jason dePreaux explained that the wholesale colocation represented $2 billion of the total in 2012. Jason added that the retailcolocation accounted for the remaining $4.5 billion the same year. “Fierce Telecom” reveals that global retail colocation proceeds are growing annually 10percent, with China contributing over double the global average. Apart from this countries such as United Kingdom, Netherlands and Germany expanding over average rates.

Likewise, there are nearly 20 nations and each contributes to approximately $100 million each year in retail colocation figures. Besides this, the proceeds generated by the wholesale colocation, which contributes to just a quarter size compared to retail colocation, are also expanding at a greater pace. In an article published on “Datacenter Dynamics “ , John Dinsdale, the chief analyst and research director with the Synergy Research Group said "Despite the strong trend in companies shifting IT workloads from their own data center infrastructure to cloud services, growth in colocation remains robust in most countries.”  John commented "With over 60% ofcolocation spend coming from various types of service provider, the colocation market is reasonably well insulated against major shifts in IT strategy within the enterprise sector." According to a report published by Allied Market Research titled “World Colocation - Market Opportunities and Forecasts, 2014 – 2020, “the global colocation segment is expanding in regions including LAMEA, North America, Europe and Asia –Pacific. The report uncovers that the colocation industry worldwide would see a CAGR of 12.4 percent during the forecast period of 2012 to 2020.