TechNavio, an independent tech-focused global research firm, announced today the publication of its market research report on the Retail Colocation Market in the US 2014-2018. Increased adoption of virtualized computing solutions is one of the major trends in the market as virtualization enables high productivity in the existing computing infrastructure. The limited capital spending capability of small and medium enterprises is leading to a higher adoption of colocation services from retail colocation vendors.

Colocation services refer to the outsourcing of the data center and networking layer to third-party vendors. Retail colocation is a setup where an enterprise and end-user rent out part of the data center to meet their computing requirements. A data center is hosted by a single vendor but multiple end-users can gain access to the services offered. Retail colocation service providers offer a dedicated computing resource that can meet the computing requirements of enterprises. The colocation service provider also maintains continuous computing support to enterprises, which is a major advantage of colocation services.

“The rising costs of enterprise data center management, as a result of the increasing complexity of the network infrastructure, is one of the major driving factors for the growth of retail colocation services in the US,” says Faisal Ghaus, Vice President of TechNavio Research.

“Colocation service providers have established data center facilities in order to offer services to enterprises and end-users at lower costs compared to internal hosting of data center services.”
Virtualized Computing Infrastructure
With the increased demand for high-performance computing infrastructure and a focus on the productivity of the existing computing infrastructure, there has been an impressive adoption of virtualization and virtualized computing infrastructure. Virtualized computing solutions have enabled enterprises to reduce their operational costs considerably.

To define the market conditions in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.


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