SPONSORED BY LEAD GENERATION BEST PRACTICES FOR COLOCATION DATA CENTERS Is Wholesale Colocation Causing Market Oversupply?
SPONSORED BY LEAD GENERATION BEST PRACTICESFOR COLOCATION DATA CENTERS
Is Wholesale Colocation Causing Market
Oversupply?
Answers to the following questions can help make a definitive statement about wholesale colocation and its effect on the market:
•Which different solutions compete in this market? Which factors affect it?•How are colocation resources provided – in a continual stream or one mega data center at a time?•Who wants to buy data center capacity?•Which channels are available for selling data center capacity?
Sponsored by http://www.DataCenterLeadGen.com
Processor speeds continue to increase, data generated and stored continues to rise, and the appetite for more compute power at all
levels is healthy.Overall, it seems that data center capacity is
being led by demand, rather than outstripping it.
Sponsored by http://www.DataCenterLeadGen.com
Hiccups come when leasers of large data centers build their own facilities and existing DC capacity then arrives
again on the market, often as wholesale colocation capacity.
Sponsored by http://www.DataCenterLeadGen.com
As supply goes up, prices tend to come down, unless sellers find
additional sales channels for their wares.
Sponsored by http://www.DataCenterLeadGen.com
Monolithic, mega data centers mean large chunks of capacity arriving at once
on the market.However, if new data centers use
modular construction, customers will be able to buy smaller portions, or acquire large one-tenant solutions as required.
Sponsored by http://www.DataCenterLeadGen.com
Market oversupply, if it exists today, would tend to diminish tomorrow as the supply curve for data center capacity
becomes smoother and stays closer to the demand curve.
This includes purpose-built colocation facilities.
Sponsored by http://www.DataCenterLeadGen.com
As technology becomes more accessible and affordable, the mass market
develops.This holds for data centers too.
Colocation can address an additional market, making the whole demand pie
bigger. Sponsored by http://www.DataCenterLeadGen.com
The last piece of the jigsaw is a sales channel to get colocation
capacity out to customers in the new mass market.
Sponsored by http://www.DataCenterLeadGen.com
Colocation service providers already see new demand for a hundred-
kilowatt-level rental that they can satisfy by carving up megawatt-
capacity.Retailers can help bring colocation
sales down to rack level.Sponsored by http://www.DataCenterLeadGen.com
This meets the demand of small and mid-size enterprises looking for
solutions that save on capital expenditure and that are robust (for
business continuity) into the bargain.
Sponsored by http://www.DataCenterLeadGen.com
Before, the high-end and low-end DC facilities markets were separate.Now demand and facilities exist to
allow customers to grow from a rack of colocation to occupying an entire
data center.Sponsored by http://www.DataCenterLeadGen.com
Market oversupply may never completely go away for the
reasons above, but it will become less and less of an issue.
Sponsored by http://www.DataCenterLeadGen.com
How much modularity would you look for in a data center destined
for wholesale colocation?
Sponsored by http://www.DataCenterLeadGen.com
Share your opinion by leaving a Comment in the space
below.
Sponsored by http://www.DataCenterLeadGen.com
Copyright © SP Home Run Inc. SP Home Run is a Registered Trademark of SP Home Run Inc. All Worldwide Rights Reserved.
Recommended Reading
Learn How Colocation Data Centers Can Create a Scalable, Data-Driven, Marketing and Sales Funnel That Powers Growth
Download Your Free Copy Now at http://www.DataCenterLeadGen.com