If you want to move assets out of your data center but for whatever reason can’t shift to the cloud, a colocation, or “colo” for short, is increasingly a viable option.
Colo is where the client buys the compute, storage, and networking equipment but instead of putting it into their own data centers, they put them in the data center of a hosting company. They still own and manage the hardware, but they don’t have responsibility for manage the facilities—heating, cooling, lighting, physical security, etc
As such, colocation facilities attract considerable interest from enterprises. IDC puts the 2020 US colocation market at $9 billion, growing to $12.2 billion by 2024 for a compound annual growth rate (CAGR) of 8%. Grand View Research estimates the global data-center colocation market size was valued at $40.31 billion US dollars in 2019 and is expected to grow at a CAGR of 12.9% from 2020 to 2027. Gartner makes the bravest prediction, saying that by 2025, 85% of infrastructure strategies will integrate on-premises, colocation, cloud, and edge delivery options, compared with 20% in 2020.
Source:: Network World – Data Center