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Could Colocation Data Centers Be the Catalyst for Digital Transformation?
Digital transformation requires businesses to adapt and grow quickly, and colocation provides the flexibility to scale IT resources up or down as needed, writes Francesco Fontana.
Industry Perspectives
July 23, 2024
4 Min Read
Wu Kailiang / Alamy
Colocation has long been a mainstay for businesses seeking secure and reliable data solutions. But it’s no longer just about housing servers. It’s about fostering a dynamic environment that empowers businesses to innovate, operate efficiently, and navigate the ever-changing digital landscape.
The focus is shifting from simply providing physical space to creating a rich ecosystem. This includes high-speed connectivity, access to diverse cloud providers, and a network of interconnected businesses fostering collaboration and innovation. As technology advances, colocation providers that embrace AI, sustainability, and community building will be best positioned to lead the way.
The Growing Potential for Data Deluge
Data centers are the powerhouses that handle the ever-growing computing needs of the modern day. However, as the amount of data society generates continues to increase, from social media, streaming services, and online transactions to 5G networks, cloud computing, and the Internet of Things (IoT), there’s more pressure on data centers to deliver.
Having said that, businesses are set to transform to become more data-led than ever before, with plans to expand and upgrade IT infrastructures. But the reality is that many organizations have a digital transformation plan that neglects to consider their data center’s capabilities. To ensure their capacity and connectivity needs are met securely and seamlessly in the long term, this focus must shift.
Colocation: The Strategic Operational Solution?
To enable business growth, businesses require stable, resilient IT infrastructures that constantly deliver and deploy everyday workloads at scale. If the system fails to do so, companies risk handling critical operational issues like downtime, which can lead to loss of productivity, revenue, and customer satisfaction.
To address this, some businesses have turned to the cloud as a storage solution to drive new applications. While this option can meet the needs of enterprises with its impressive computing and operational space, there are a variety of elements companies must consider before investing – a key factor being affordability. The costs associated with the cloud can quickly build up and become difficult to manage due to unpredictable pricing models and data egress fees.
As such, many companies have moved certain workloads to on-premises data centers, employing a hybrid approach to their IT infrastructure. This approach couples on-site data storage and processing capabilities with the better elements of the cloud. It is important to note the complexity of this architecture and the considerable networking capacity necessary to seamlessly move data.
That’s where data center colocation emerges as a valuable tool for large-scale companies.
Colocation is essentially a service that allows businesses to rent space in a data center. This initiative provides the power, cooling, and physical environment for businesses to house their IT equipment, as opposed to hosting on-site.
Having evolved beyond providing ‘rack space’ for data, colocation data centers are now key enablers for effective digital transformation by giving businesses the enhanced flexibility, scalability, connectivity, and security necessary to push digital initiatives forward. With professional data facilities, companies can make use of a secure and reliable infrastructure without needing to fund the development and maintenance of their own physical space.
How Colocation Supports Digital Transformation
Digital transformation calls for businesses to be able to adapt and grow quickly. With colocation, companies gain the flexibility to scale IT resources up or down when necessary. Not only does this allow companies to adjust their infrastructure as their needs evolve, but it also plays a crucial role in supporting new applications, expanding cloud adoption, and accommodating data growth.
Furthermore, colocation data centers offer connectivity ecosystems that let enterprises connect directly to multiple internet providers, cloud services, as well as other businesses. This simplifies the digital transformation process by making it easier to build powerful IT systems, leverage cloud services seamlessly, and run applications quickly regardless of location. Also, by eliminating the burden of running on-premises data centers, colocation simplifies IT management and frees up valuable time and resources, giving business leaders the freedom to focus on other digital initiatives that support overall business growth.
While location doesn’t typically pose an issue for connectivity, it can offer significant benefits. Essentially, the closer your data is to you, the quicker it can be accessed. With data centers operating near major cloud regions, outcomes have shown reduced latency and enhanced company interconnectivity. This can improve the user experience and lower broadband costs for high-performance applications.
On top of the vast variety of benefits colocation has to offer, it also supports the growing ESG requirements spanning across the globe. The shift toward implementing sustainable practices has been underway for many years now. However, with businesses facing legislative pressures to balance digital transformation with carbon-neutral initiatives, it’s crucial for companies to adopt a future-proof approach. In response to this demand, colocation providers have made sustainability a key focus and have taken steps to be more environmentally friendly than typical on-premise data centers as a result.
The Future of Colocation
In today’s data-centric world, IT infrastructure needs to be fast, agile, and reliable to ensure businesses can digitize their operations as smoothly as possible. Colocation provides the ideal solution by delivering the power of cutting-edge technologies like the cloud, without the burden of exorbitant costs.
As more businesses initiate their digital transformation journeys, we can expect the market to continue its steady growth trajectory, with more services like AI-powered resource management and sustainable energy solutions becoming readily available.
Francesco Fontana is CMO at Aruba Enterprise.
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