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Data center colocation: Lock in prices now, experts advise
This article is part of the CIO Decisions issue of September 2010 Volume 4
The recession has been good for data center colocation providers. The perfect storm, if you will. A scarcity of capital, the rise in high-power-density computing and a need for high-quality redundant data centers have boosted demand for colocation space, according to data center experts. More on data center colocation Purdue chooses containerized data center over colocation Managing data center growth: Consolidate, colocate or move to cloud? "We have not seen a slowdown in interest and growth in colocation. If anything, the recession is driving CIOs to look more closely at colocation," said Ted Ritter, senior research analyst at Mokena, Ill.-based The Nemertes Research Group Inc. Faced with the worst fiscal crisis in a half-century, businesses that under ordinary circumstances would have built their own data centers scurried to find alternatives. Now, as the recession appears to be receding for many industries, data center colocation space is at a premium, ranging from $700 per month for a low-density power-utilization rack, to...
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News in this issue
Is it better to own or rent data center space? CIOs are seeking more modular, green data center designs and considering data center outsourcing, as consolidation takes precedence.
Demand for data center colocation is up, and so are the prices, prompting a debate over whether investments in colocation services match the ROI.
Public and private cloud computing have penetrated enterprises, forcing IT to develop a plan for managing two distinct service-delivery models.