Is colocation the catalyst for digital transformations?

Colocation has always been the go-to for businesses that need a safe and dependable home for their data. But now, it's not just about servers. It's about creating a vibrant space where companies can thrive, push boundaries, and conquer the constantly evolving digital world.

It's not just about the physical space anymore. It's about building a thriving colocation ecosystem. That means super-fast connections, a variety of cloud providers, and a network of businesses working together to spark new ideas and breakthroughs. As tech keeps evolving, colocation providers who get behind AI, sustainability, and community building will be the ones paving the way forward.

An increasing risk of data deluge

Data centres are the engines that drive our digital world, handling the ever-growing need for computing power. But with society producing more and more data – from social media, streaming services, and online shopping to 5G networks, cloud computing, and even the Internet of Things (IoT) – the pressure is on for data centres to keep up and keep delivering.

That being said, companies are ready to embrace data and become even more data-driven, with plans to grow and revamp their IT systems. But here's the catch: many of these companies have grand plans for digital transformation, but they're forgetting one crucial ingredient – their data centre. 

Something needs to change to ensure their capacity and connections can keep up in the long run and to keep everything secure and running smoothly.

Could colocation be the solution?

If companies want to grow, they need rock-solid, dependable IT systems that can handle their everyday workloads and then some. If their systems can't keep up, they risk major headaches like downtime, which can mean lost productivity, lost money, and even unhappy customers.

To tackle this issue, some companies have looked to the cloud as their storage saviour, hoping to power new applications. While the cloud's impressive computing and operational space can certainly fit the bill for big enterprises, there are a few factors to consider for the rest, and affordability is a primary consideration. 

Cloud storage costs can quickly accumulate and become difficult to manage due to unpredictable pricing models and data egress fees.

As a result, many companies have brought some of their workloads back home to on-premise data centres, using a hybrid approach for their IT setup. This way, they get the best of both worlds: on-site data storage and processing power combined with the benefits of the cloud. 

But keep in mind that this setup is complex and needs significant networking muscle to keep the data flowing smoothly. And that's where data centre colocation steps in as a real game-changer for big companies.

Think of colocation as renting an apartment for your data. Companies pay for space in a data centre, which gives them the power, cooling, and a safe place to keep their IT gear instead of having to host it all on-site. But colocation isn't just about ‘rack space’ anymore. It's become a major player in making digital transformation happen, giving businesses the flexibility, scalability, connections, and security they need to push their digital projects forward. By using these professional data facilities, companies get a secure and reliable infrastructure without the hassle of building and maintaining their own space.

How colocation enables digital transformations

Digital transformation requires companies to be quick on their feet and ready to grow. Colocation offers the power to scale IT resources up or down whenever needed. That doesn't just mean adjusting their infrastructure as things change; it's also crucial for supporting new applications, diving deeper into the cloud, and handling all that growing data.

In addition, colocation data centres create ecosystems of connectivity. Companies get direct links to multiple internet providers, cloud services, and other businesses. This makes digital transformation much smoother because it's easier to build powerful IT systems, tap into cloud services without a hitch, and run applications lightning-fast, no matter where you are. And by taking away the hassle of running data centres, colocation simplifies IT management, freeing up valuable time and resources. That means business leaders can focus on other digital projects that actually help the company grow.

While location isn't usually a problem for connectivity, it can be a real game-changer. The closer your data is to you, the faster you can get to it. It is for this reason we see colocation data centres operating near major cloud regions. Countries like Italy and Spain, for example, benefit from strong connectivity to North African and Middle Eastern markets, as well as North and West Europe. We've seen real results from this: lower latency (less lag time) and better connections between companies. That translates to a smoother user experience and even lower broadband costs for those power-hungry applications.

And there's more. Colocation also supports growing worldwide ESG requirements. Going green is a significant priority already, but with all the pressure on businesses to balance digital transformation with being carbon neutral, colocation becomes crucial. Companies need a future-proof plan. Colocation providers understand that, and they've had sustainability as their top priority for years.

The future is already here

In our world, where data is at the heart of everything, IT systems need to be lightning-fast, adaptable, and dependable if businesses want to go digital without a hitch. Colocation is the perfect answer, giving companies the power of all those cutting-edge technologies, such as the cloud, without the exorbitant price tag.

As more companies jump on the digital transformation train, the colocation market will keep moving forward, growing steadily. As it grows, expect to see even more services emerge, such as the highly sought-after AI-powered resource management and eco-friendly energy solutions.