Colocation offers a data solution to keep up with the tech giants

Gartner predicts an astonishing 770 per cent growth in data levels worldwide from 2010-2016. The UK alone invested an estimated £3.35 billion in data centre facilities in 2011-2012, with only the US spending more. Worldwide, spending on data centre systems is predicted to swell to £147 billion this year.

Gartner predicts an astonishing 770 per cent growth in data levels worldwide from 2010-2016. The UK alone invested an estimated £3.35 billion in data centre facilities in 2011-2012, with only the US spending more. Worldwide, spending on data centre systems is predicted to swell to £147 billion this year. The importance of this data is also growing rapidly. New data-heavy solutions like cloud computing for example bring strong business advantages, with more firms discovering how to analyse and utilise customer databases and other valuable information. As a result, it has become even more pressing to find a solid data storage solution. This has seen a great deal of opportunity for investment in the data centre market, meaning that data centre real estate is in high demand despite the economic downturn.

Organisations looking for a data centre solution must first make the decision of whether to invest in constructing or running their own facility, or renting storage space in a colocation centre operated by a third party.

Unsurprisingly, it’s the technology giants that are leading the charge for constructing self-owned and run facilities. Late last year Apple announced the construction of a new facility in Oregon to help support the expanding needs of its iCloud service, while Google is investing $150 million on its first Latin American data centre.
Outside of the technology sector, automotive giant General Motors is investing heavily in a new data centre in Atlanta, looking to hire around 1,000 IT staff as it seeks to bring its technology management in-house. However, while buying up data centre real estate might be a feasible and ultimately more economical option for leading global organisations looking to expand their IT capacity, it represents a risky venture for many businesses, and an impossible one for SMEs. The cost of constructing a new data centre in Europe averages at around €20 million, even before the cost of staffing, maintaining and powering the facility is included. In a time of economic crisis, when the government is using phrases such as ‘triple dip’, business need be thinking of ways to keep themselves afloat while simultaneously thinking about how not to miss out on opportunities.

Renting space in a colocation data centre has the potential to offer customers affordable and flexible options in an effective economical manner. It also offers multiple benefits without the organisation having to manage the space itself. When options like this are offered, it makes buying real estate seem highly unnecessary. Aside from the cost benefits, data centre ownership is also a much riskier strategy that leaves far less flexibility and room for error. A company building a smaller and more affordable centre might find their demand outstripping it before long, while a large and expensive facility could become a costly white elephant if demand and growth don’t live up to expectations. Renting space in a data centre with a flexible offering provides a more viable solution that allows for much easier expansion or contraction of storage to match the company’s needs.
Another factor to consider is energy consumption. Recently, many of the world’s leading technology companies have come under fire for their data centres’ impact on the environment. In fact, both Greenpeace and the New York Times have accused Apple, Amazon and Google to name a few for running hugely wasteful facilities under an environmentally friendly image. Trying to imply that data centres do not consume a great deal of energy is futile, but this burden can be removed if businesses rented its data space. The centre’s MEP (mechanical, electrical and plumbing) components also require constant attention and maintenance, while core equipment such as PDUs are eventually going to become unreliable as they age. Likewise, all equipment will become outdated eventually, especially given the breakneck speed of the technology sector.

Even the most pristinely maintained technology will become inefficient and costly as new advancements are made. Given the mounting focus on sustainability, outdated equipment could also fail to meet future energy compliance laws. Implementing these upgrades is vital but brings its fair share of challenges, including the risk of downtime among other, but when space is rented, this needn’t be the occupier’s concern.

The location of a data centre is also vital to its success. There are several very exacting demands a data centre location must meet, and finding the right site can be a major challenge. The site must be clear of environmental risks such as flooding and even flight paths. At the same time, a data centre has rigorous requirements on energy supply and network connections which also must be taken into account.
Aside from these necessities, cooler climates have also become a popular choice as they are useful for environmental cooling techniques. Finding these locations to meet a data centre’s needs can be a long and laborious task – delays which could be unacceptable for a company already feeling constrained by its current data storage capacity. Colocation data centre owners are often practiced real estate investors and therefore specialise in finding locations for functioning buildings. The added cost and time of finding the location can be entirely eradicated if a business was to rent its space.
The decision to expand an organisation’s IT storage should not be taken lightly, and all options must be fully considered and researched. However, bearing in mind the points above, business owners need to be pragmatic and realise that ownership of data space is not necessary. Renting has the ability to offer businesses all the benefits of having a data centre, but without having to manage it.

Even with a colocation solution, finance tends to be a major concern for any IT investment. With this in mind, there is a growing onus on data centre managers to provide more flexible financial options to make their facilities even more accessible. With our upcoming centre the MK DataVault for example we have offered a unique scalable financial package with the first year being rent free, helping to ease the financial strain on organisations looking to expand. Likewise, we secured more flexible planning permission to allow additional input from customer in the centre’s design and structure.

I believe that rented space in a colocation centre offers the ideal storage solution in a time where companies ranging from SMEs to multinationals are under pressure to both cut their spending and keep pace with the growing demands on their IT strategy.