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CIOs Are Making Bigger Investments in Colocation

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Needing more scalable use of data with better network connectivity, data center managers are increasingly looking into colocation options.
A clear majority of data center managers said they are already using colocation or plan to do so shortly, according to a recent survey from Vertiv. The resulting ” Colocation Data Center Usage Report ” defines colocation as an environment that includes multi-tenant data centers, off-premises computing, managed hosting and cloud hosting data centers. Most survey respondents said they’ll increase their investment in such services within the next two years. Many use colocation as a data center backup, but a significant number of them are turning to colocation for primary computing and critical infrastructure needs. However, they’ve encountered challenges along the way, in the form of cost and security concerns, among other issues. “The early stages of colocation deployment are now over for most companies, and they are looking at future IT application deployments in colocation and the cloud that are more diverse, complex and business-critical,” according to the report. “Colocation providers will have to differentiate themselves with new services, especially around the cloud; will have to offer a greater number of services to capture larger customers; and will have to demonstrate price transparency to retain customers.” More than 225 U. S. enterprise data center managers took part in the research.

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