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SPONSORED BY
LEAD GENERATION BEST PRACTICES
FOR COLOCATION DATA CENTERS
Should Colocation Data Centers Fear
Consolidation?
Yes! No!Wait a minute…To understand whether
consolidation is a threat to colocation data centers, we
need to know what kind of consolidation is concerned.
Sponsored by http://www.DataCenterLeadGen.com
IT consolidation, for instance, refers to the actions of an
enterprise to reduce its IT resources through more
efficient technologies.
Sponsored by http://www.DataCenterLeadGen.com
Data center market consolidation, on the other hand,
refers to mergers or acquisitions of service providers,
producing smaller numbers of providers, but increasing
their average size.
Sponsored by http://www.DataCenterLeadGen.com
Now that we know what we are talking about, we can
assess the negative risk, meaning the threat; and perhaps
also the positive risk, meaning the opportunity.
Sponsored by http://www.DataCenterLeadGen.com
Consolidation from the Customer’s Point of View
There is no shortage of technology to help customers
do more with less when it comes to hardware and
operating systems. Blade server systems have replaced
or obviated the need for mainframes.
Sponsored by http://www.DataCenterLeadGen.com
Server virtualization allows multiple virtual machines to
run on one physical box. IT automation makes processes
run faster, more efficiently, and with fewer errors.
Sponsored by http://www.DataCenterLeadGen.com
How does this affect colocation providers
that offer data center space and facilities?
Sponsored by http://www.DataCenterLeadGen.com
Overflow customers.Those whose own data centers
that were filled to the brim may now find consolidation
gives them space to bring colocated systems back in-
house. If so, they may no longer use colocation services.
Sponsored by http://www.DataCenterLeadGen.com
Outsourcing customers.Technology is only one part of
the total IT solution. Data center facilities and
competent data center staff are also critical.These
customers may consolidate their installations within the
colocation data center, but will reduce rather than
eliminate their colocation budget.
Sponsored by http://www.DataCenterLeadGen.com
Customers consolidating their own data center. In
this case, customers may end up needing only a
fraction of their original data center space. Compared
with trying to build or find a smaller data center of their
own, colocation can be an attractive solution.
Sponsored by http://www.DataCenterLeadGen.com
Colocation can also appeal to larger organizations
consolidating multiple data centers: some individual
business units may prefer to retain their IT autonomy by
moving to colocation, instead of trying to sort out
internal cross-billing in one organizational data center
that houses the systems of all business units together.
Sponsored by http://www.DataCenterLeadGen.com
Consolidation of the Colocation Market
Currently, larger colocation players are buying up smaller
ones. Other providers that remain independent must
compete with larger providers offering wider
geographical coverage, economies of scale, or both.This
situation is a classic one in business. Smaller colocation
providers then have several options.
Sponsored by http://www.DataCenterLeadGen.com
They can specialize in different colocation market
segments (retail, for example), and distinguish
themselves by offering personalized service.
Sponsored by http://www.DataCenterLeadGen.com
Some growth sectors, like the industrial internet services
requiring geographical proximity for low latency
networking, may be better suited to smaller, local
colocation providers, rather than bigger, but more
remote ones.
Sponsored by http://www.DataCenterLeadGen.com
Much as neighborhood stores continue to compete with
large supermarket chains, there are business
opportunities for both small and large colocation
providers, whichever way the consolidation wind blows.
Sponsored by http://www.DataCenterLeadGen.com
How is consolidation – in any sense of the word –
affecting you, as a colocation service provider?
Sponsored by http://www.DataCenterLeadGen.com
Share your experience and opinion with a line or
two in the space underneath.
Sponsored by http://www.DataCenterLeadGen.com
Copyright © SP Home Run Inc. SP Home Run is a RegisteredTrademark of SP Home Run Inc.AllWorldwide Rights Reserved.
Recommended Reading
Learn How Colocation Data Centers
Can Create a Scalable, Data-Driven,
Marketing and Sales FunnelThat
Powers Growth
DownloadYour Free Copy Now at
http://www.DataCenterLeadGen.com

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Should Colocation Data Centers Fear Consolidation? (SlideShare)

  • 1. SPONSORED BY LEAD GENERATION BEST PRACTICES FOR COLOCATION DATA CENTERS Should Colocation Data Centers Fear Consolidation?
  • 2. Yes! No!Wait a minute…To understand whether consolidation is a threat to colocation data centers, we need to know what kind of consolidation is concerned. Sponsored by http://www.DataCenterLeadGen.com
  • 3. IT consolidation, for instance, refers to the actions of an enterprise to reduce its IT resources through more efficient technologies. Sponsored by http://www.DataCenterLeadGen.com
  • 4. Data center market consolidation, on the other hand, refers to mergers or acquisitions of service providers, producing smaller numbers of providers, but increasing their average size. Sponsored by http://www.DataCenterLeadGen.com
  • 5. Now that we know what we are talking about, we can assess the negative risk, meaning the threat; and perhaps also the positive risk, meaning the opportunity. Sponsored by http://www.DataCenterLeadGen.com
  • 6. Consolidation from the Customer’s Point of View There is no shortage of technology to help customers do more with less when it comes to hardware and operating systems. Blade server systems have replaced or obviated the need for mainframes. Sponsored by http://www.DataCenterLeadGen.com
  • 7. Server virtualization allows multiple virtual machines to run on one physical box. IT automation makes processes run faster, more efficiently, and with fewer errors. Sponsored by http://www.DataCenterLeadGen.com
  • 8. How does this affect colocation providers that offer data center space and facilities? Sponsored by http://www.DataCenterLeadGen.com
  • 9. Overflow customers.Those whose own data centers that were filled to the brim may now find consolidation gives them space to bring colocated systems back in- house. If so, they may no longer use colocation services. Sponsored by http://www.DataCenterLeadGen.com
  • 10. Outsourcing customers.Technology is only one part of the total IT solution. Data center facilities and competent data center staff are also critical.These customers may consolidate their installations within the colocation data center, but will reduce rather than eliminate their colocation budget. Sponsored by http://www.DataCenterLeadGen.com
  • 11. Customers consolidating their own data center. In this case, customers may end up needing only a fraction of their original data center space. Compared with trying to build or find a smaller data center of their own, colocation can be an attractive solution. Sponsored by http://www.DataCenterLeadGen.com
  • 12. Colocation can also appeal to larger organizations consolidating multiple data centers: some individual business units may prefer to retain their IT autonomy by moving to colocation, instead of trying to sort out internal cross-billing in one organizational data center that houses the systems of all business units together. Sponsored by http://www.DataCenterLeadGen.com
  • 13. Consolidation of the Colocation Market Currently, larger colocation players are buying up smaller ones. Other providers that remain independent must compete with larger providers offering wider geographical coverage, economies of scale, or both.This situation is a classic one in business. Smaller colocation providers then have several options. Sponsored by http://www.DataCenterLeadGen.com
  • 14. They can specialize in different colocation market segments (retail, for example), and distinguish themselves by offering personalized service. Sponsored by http://www.DataCenterLeadGen.com
  • 15. Some growth sectors, like the industrial internet services requiring geographical proximity for low latency networking, may be better suited to smaller, local colocation providers, rather than bigger, but more remote ones. Sponsored by http://www.DataCenterLeadGen.com
  • 16. Much as neighborhood stores continue to compete with large supermarket chains, there are business opportunities for both small and large colocation providers, whichever way the consolidation wind blows. Sponsored by http://www.DataCenterLeadGen.com
  • 17. How is consolidation – in any sense of the word – affecting you, as a colocation service provider? Sponsored by http://www.DataCenterLeadGen.com
  • 18. Share your experience and opinion with a line or two in the space underneath. Sponsored by http://www.DataCenterLeadGen.com
  • 19. Copyright © SP Home Run Inc. SP Home Run is a RegisteredTrademark of SP Home Run Inc.AllWorldwide Rights Reserved. Recommended Reading Learn How Colocation Data Centers Can Create a Scalable, Data-Driven, Marketing and Sales FunnelThat Powers Growth DownloadYour Free Copy Now at http://www.DataCenterLeadGen.com