By 2025 in-house data centers will almost be a “thing of the past”. Companies are fast forward moving to solutions such as colocation and the cloud. What makes the case for colo?

Colocation has been and will be a viable solution for every type of organization looking to eliminate IT costs and enjoy secure and reliable IT services. 

Now, as the 4th Industrial Revolution starts to have a significant impact on the organizations’ IT department, Managers often come to realize that colocation is not anymore a “value adding service”. It has become a necessity for every company looking to meet the rising global market demands, which trigger unprecedented IT workloads expected to provide optimal customer experience, meet changing business objectives and maintain top security standards. 

These 3 requirements, as they evolve in the form of heavy workloads, are making colocation a real necessity. Here is why:

1. Cost control

Enterprise in-house data centers have become more expensive than ever before. It is not only about the initial capital involved. Costs can be extremely high for staff, operations, and maintenance for this complex environment. Colocation services are based on the principles of the economies of scale offering unmatched business potential and significantly lower costs.

2. Scalability and control

Colocation services provide companies with the autonomy of running mission-critical applications useful not only for the current timeframe but also very useful for the mid and for the long term. As the business is expected to scale, it is only with colocation that cost will remain “eligible” while infrastructure will be updated to meet new demands. 

Additionally, colocation also enables businesses to enjoy better network bandwidth and additional services from an ecosystem of providers with a wide range of options around connectivity and the IT spectrum. 

3. Legislation and compliance

Companies operating on-premise data centers are now finding it hard to keep up with legislation surrounding the digital spectrum. As it happens, consumers’ data is the “new oil” and governments are now tightening laws around this space. Yet, it is not about data security. Legislation has now included other aspects as well, such as energy efficiency. 

Last but not least, climate change has raised significant concerns over physical security for data centers. 

Contact our team at Lamda Hellix via this form to find out how colocation can help your company offer better services, reduce operating costs, increase efficiency and leverage actual business opportunities for further growth.

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