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Data Center Services: Why Cloud Providers Turn to Colocation

For many years, enterprises have turned to colocation providers for data center services. The huge expense and time requirements for building a company-owned facility create a huge deterrent. Learn more about Data Center Services by visiting http://www.cyrusone.com/.

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Data Center Services: Why Cloud Providers Turn to Colocation

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  1. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION

  2. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • For many years, enterprises have turned to colocation providers for data center services. • The huge expense and time requirements for building a company-owned facility create a huge deterrent. • In fact, industry analyst Frost & Sullivan estimate land purchase and facility construction costs in the United States can reach $1,500 per square feet, depending on the location. • The project can also take upwards of five years, from concept to completion. • With these kinds of numbers, it’s not surprising enterprises have migrated to colocation models. • But what’s interesting is cloud providers and managed service providers have also turned to leasing data center services from third-party providers for the same reasons.

  3. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • Although the U.S. market is fairly mature, Frost & Sullivan estimates total data center space will increase by 10% through 2015. • However, the analyst notes this growth figure won’t include space built and owned by cloud and managed service providers. Instead, these providers will lease the capacity and data center services they need from colocation providers. • By using colocation, cloud providers can lease space by the room, cage or rack. The cloud providers decide how to configure their leased space. They deploy their equipment and develop the data center services they will market to their own customers. • In some cases, cloud providers re-package another service provider’s data center services and market them to their customer base. • Colocation creates a low barrier to entry and allows a cloud provider to bring solutions to market more quickly.

  4. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • DOES LEASING SPACE AFFECT CLOUD PROVIDER SERVICE DELIVERY? • Turning to colocation presents many advantages for cloud and managed services providers. As discussed, lower costs and faster deployment are major benefits. But do any drawbacks exist? • A major concern for cloud providers using colocation involves service delivery to their end customers. A tricky messaging project for these providers is how they describe their data center services delivered from colocated facilities. In other words, cloud providers must determine how they position the data center space they own versus the space they lease.

  5. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • DOES LEASING SPACE AFFECT CLOUD PROVIDER SERVICE DELIVERY? • The risk of inconsistent service delivery across diverse data center locations is of grave concern for cloud providers leasing colocated space. These providers don’t have control over facilities with different owners, locations, networks, power stations and more. These locations won’t always deliver uniform data center services to the cloud provider’s end user customers. • Cloud providers can help create more standardized data center services among leased facilities by taking certain measures. For example, installing similar equipment and using common configurations across locations can help deliver the same performance.

  6. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • DOES LEASING SPACE AFFECT CLOUD PROVIDER SERVICE DELIVERY? • In terms of building out future data center space, cloud and managed services providers will mirror their enterprise customers’ behaviors. Instead of investing huge amounts of capital and time into constructing complex facilities, cloud providers will lease space from a third-party colocation provider.

  7. DATA CENTER SERVICES WHY CLOUD PROVIDERS TURN TO COLOCATION • CyrusOne currently provides more than 1,000,000 square feet of colocated floor space in top tier data centers across the nation. • The company operates colocation facilities in various centers of business including Houston, Dallas, Austin, San Antonio, Cincinnati, Chicago, London and Singapore. • CyrusOne serves enterprise clients in many industries, including energy, oil and gas, medical, technology, finance and consumer goods and services.

  8. About the author Nicole Aguillard is the marketing director for CyrusOne, a global enterprise colocation provider operating 23 highly secure data centers across the United States, London and Singapore. Learn more about Data Center Servicesby visiting http://www.cyrusone.com.

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