Last updateSat, 04 Dec 2021 2am

19% of Enterprises Turn to Colocation in Wake of COVID-19

Bulk Infrastructure, the Nordic’s leading provider of ultra-scalable, highly connected, sustainable data centers, teamed with S&P Global’s 451 Research on a Market Intelligence Business Impact Brief, Transition to Versatile Digital Infrastructure Is Key for Success. The key finding of the report is that more enterprises are now using or looking to use third-party data center solutions providers, with many decisions shaped by COVID-19.

Recent 451 Research survey data found that 19% of organizations (see figure) lease capacity from third-party datacenter providers as they strive for infrastructure agility. The report goes on to say that colocation supplements the company-owned data center assets and smaller server rooms that remain an important part of the enterprise IT estate.

“Enterprise needs are changing, and colocation is increasingly the solution that meets those needs,” observes Rob Elder, Vice President, Data Centers for Bulk. “Critical workloads, digital transformation, cloud migration and remote work requirements driving more companies to look for reputable digital infrastructure partners for capabilities and support and Bulk does all of this sustainably.”

According to the survey, enterprises have begun considering reducing their overall real estate footprint due to expanded work-from-home policies. This migration out of traditional offices is raising questions about where their increasing compute workloads go in the process. One answer is increasingly colocation in third party data centers. All venues are under consideration, and many are likely to choose some form of cloud, colocation or managed infrastructure offering in the next two years.

Even those that retain their own data centers can use colocation for added services, including disaster recovery, improved reliability, connectivity, interconnection to cloud platforms, e-commerce, data interchange, financial function, and internet peering. Digital transformation is a common priority but staffing and skillsets within IT organizations is a challenge. Colocation partners can assist with design and planning capabilities to smooth the transition.


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