Global Colocation and Managed Hosting (CMH) Facts for 2019
If you’re curious to learn more about the 2019 trends in global colocation and managed hosting (CMH), we want to offer some of the statistics that matter the most. We’ll share exactly how popular colocation is and why many businesses benefit from using it. While there are many choices for colocation and managed hosting, understanding the basics is important before moving forward.
Expected Growth of Colocation Hosting
It is believed that the colocation market is going to grow quite a bit from now until 2020. In fact, a 15.4% compound annual growth is expected from 2016 through 2020. This just goes to show how popular colocation hosting has grown over the last few years. There are plenty of statistics that show this is accurate and likely to continue.
A survey done by Vertiv, which used to be called Emerson Network Power, of over 225 enterprise data center managers showed that 47% of the manages used more than a single type of data center for operations at their companies. In addition, 55% of these managers noted that they believe that over the next two years, they would be increasing their usage of cloud hosting and colocation data centers.
Why Colocation is Increasing in Popularity
There are several different reasons that colocation is both popular and growing. Colocation providers can help organizations record their data after a disaster, scale their requirements for data storage in a quick and cost-effective manner, lower the costs of IT infrastructure, and meet security compliance requirements. This takes a lot of work off of an organization and can save time, so it makes sense that this is taking off at lightning speed.
The True Size of Colocation Hosting
Another statistic that might seem crazy is that the colocation and data center market is expected to be worth nearly $55 billion by 2020. A report by Colocation Data Center Industry: Global Markets to 2020 shows that this is a massive jump from the $30.9 billion the market was worth as of 2016.
Globe Newswire also explains in a news release that in 2016, Microsoft, Amazon, and Google spent over $31 billion on data centers, which is 22% more than was spend the year before. Those are pretty shocking numbers and show how serious global colocation is.
Providers of Colocation Hosting Services
Data centers in North America has led the way as far as colocation hosting goes. However, things are steadily changing. A projection from Structure Research shows that by 2020, Asia will beat out North America in terms of revenue from colocation with a 39% market share. North America is expected to have a 38% market share while Europe will have nearly 21% and South America will boast less than 2%.
Cloud hosting and colocation offer businesses the extra security of having important data stored and backed up off-site. This can offer a huge amount of peace of mind if a disaster or other issue happens on the site of the company. If your business isn’t looking into colocation services yet, it might be time to do so.
