HOME Research Insight Due to the continual demand for data centers and increasing adoption of cloud computing in the organizations and Technological growth



Due to the continual demand for data centers and increasing adoption of cloud computing in the organizations and Technological growth


Due to the continual demand for data centers and increasing adoption of cloud computing in the organizations, the data center colocation market is gaining substantial traction at the global upfront. Cost benefits, bandwidth scalability, reliability, efficiency, and security provided by data center colocation services are the major factors adding to the growth of this market. Factors such as high start-up costs and fluctuating operating expenditure are expected to limit the market growth. However, these factors will be impactful only for a short period of time.

Technological giants such as Equinix Inc., Verizon Communications Inc., Telecity Group, Digital Realty Trust, and NTT Communications have created leading data center services and infrastructure to cater to the needs and demands of the market. These players have adopted various growth strategies, such as expansions, partnerships, agreements, and joint ventures with acquisitions and new product launches being the key strategies. Business expansions have been a major strategical trend, accounting almost half of the market share of all the growth strategies adopted by the major market players.

Equinix Inc. and Verizon Enterprise Solutions Inc. are the two key players to have adopted these strategies to grow in the market. Equinix Inc. has adopted a strategic mix of organic and inorganic growth strategies, such as rapid business expansion and acquisitions to expand its presence to new geographical frontiers. Some of the new developments of Equinix Inc. include business expansion in Dallas, Toronto, Singapore, and Hong Kong. The company acquired Bit-isle, an independent data center provider in Japan to strengthen its presence in the Asia-Pacific (APAC) region.

Verizon Enterprise Solutions Inc. is also one of the leading players whose main strategic move has been based on strengthening its market standing and product portfolios in the rapidly growing areas of the market. The recent partnership with Mesosphere Inc. has helped the company to improve automation, scalability, and efficiency in its 200 global data centers. The company also launched Secure Cloud Interconnect Service, a network-based software offering to impart security, performance, simplicity, reliability, and efficiency to the mission-critical workloads and applications in public sector organizations.

Key players are engaging in collaborations and partnerships to provide innovative offerings and increase profitability. Some of the companies that have engaged in partnerships and collaborations in the data center colocation market are AT&T Inc., Interxion Holding NV, Internap Corporation, and Verizon Enterprise Solutions Inc.

Related Reports:

Data Center Colocation Market by Service Types (Retail, Wholesale) by Industry Verticals (Banking & Insurance, IT & Telecom, Healthcare, Government & Public, Energy) by End Users (SMEs, Large Enterprises) by Regions - Global Forecast to 2020

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