Data Center Colocation and Managed Hosting Services Market – Provides better Speed, Efficiency and Reliability help companies Perform Faster in Critical Operations

As businesses are expanding their operations globally, the need for data storage solution is increasing at an extraordinary rate. The expenditure for setting up and maintaining a data center with perfect security, environmental and performance conditions is significantly high for any given small or medium sized organization. In addition, the energy consumption of data center is high and depends upon their size. Thus, companies also want to decrease their energy consumption in order to reduce their carbon footprint.

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Due to limited IT budget and increasing requirement of high operating bandwidth, companies are showing interest in outsourcing their in-house data center to third party service providers. With colocation of data center managed by hosting service provider, companies are able to focus on streamlining their business operation and revenue generation. A hosting service provider offers computing servers, storage space and power for companies apart from providing advanced networking facilities.

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A colocation facility managed by service provider and owned by a company can be termed as managed hosting service facility. These help to reduce spending on IT infrastructure and have ownership control over data. Companies also colocate their equipment with colocation service provider to avail the benefit of higher bandwidth in their operation.  

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The demand for colocation data center is estimated to increase in coming years as companies would need to cut down their operational cost in order sustain in the market. Colocated data center provides better speed, efficiency and reliability which help companies perform faster in critical operations.

An off-site data center also helps companies to protect their data and create a backup in case of a disaster in in-house data center. The increasing use of cloud computing is expected to spur the adoption of colocated data center in coming years.