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Should Colocation Data Centers Fear Consolidation? (SlideShare)

http://DataCenterLeadGen.com
Should Colocation Data Centers Fear Consolidation? (SlideShare).
Is consolidation a question mark hanging over the future of your colocation data center? Find out why this trend could be in fact good for you too.
Copyright (C) SP Home Run Inc. All worldwide rights reserved.

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Should Colocation Data Centers Fear Consolidation? (SlideShare)

  1. 1. SPONSORED BY LEAD GENERATION BEST PRACTICES FOR COLOCATION DATA CENTERS Should Colocation Data Centers Fear Consolidation?
  2. 2. Yes! No!Wait a minute…To understand whether consolidation is a threat to colocation data centers, we need to know what kind of consolidation is concerned. Sponsored by http://www.DataCenterLeadGen.com
  3. 3. IT consolidation, for instance, refers to the actions of an enterprise to reduce its IT resources through more efficient technologies. Sponsored by http://www.DataCenterLeadGen.com
  4. 4. Data center market consolidation, on the other hand, refers to mergers or acquisitions of service providers, producing smaller numbers of providers, but increasing their average size. Sponsored by http://www.DataCenterLeadGen.com
  5. 5. Now that we know what we are talking about, we can assess the negative risk, meaning the threat; and perhaps also the positive risk, meaning the opportunity. Sponsored by http://www.DataCenterLeadGen.com
  6. 6. Consolidation from the Customer’s Point of View There is no shortage of technology to help customers do more with less when it comes to hardware and operating systems. Blade server systems have replaced or obviated the need for mainframes. Sponsored by http://www.DataCenterLeadGen.com
  7. 7. Server virtualization allows multiple virtual machines to run on one physical box. IT automation makes processes run faster, more efficiently, and with fewer errors. Sponsored by http://www.DataCenterLeadGen.com
  8. 8. How does this affect colocation providers that offer data center space and facilities? Sponsored by http://www.DataCenterLeadGen.com
  9. 9. Overflow customers.Those whose own data centers that were filled to the brim may now find consolidation gives them space to bring colocated systems back in- house. If so, they may no longer use colocation services. Sponsored by http://www.DataCenterLeadGen.com
  10. 10. Outsourcing customers.Technology is only one part of the total IT solution. Data center facilities and competent data center staff are also critical.These customers may consolidate their installations within the colocation data center, but will reduce rather than eliminate their colocation budget. Sponsored by http://www.DataCenterLeadGen.com
  11. 11. Customers consolidating their own data center. In this case, customers may end up needing only a fraction of their original data center space. Compared with trying to build or find a smaller data center of their own, colocation can be an attractive solution. Sponsored by http://www.DataCenterLeadGen.com
  12. 12. Colocation can also appeal to larger organizations consolidating multiple data centers: some individual business units may prefer to retain their IT autonomy by moving to colocation, instead of trying to sort out internal cross-billing in one organizational data center that houses the systems of all business units together. Sponsored by http://www.DataCenterLeadGen.com
  13. 13. Consolidation of the Colocation Market Currently, larger colocation players are buying up smaller ones. Other providers that remain independent must compete with larger providers offering wider geographical coverage, economies of scale, or both.This situation is a classic one in business. Smaller colocation providers then have several options. Sponsored by http://www.DataCenterLeadGen.com
  14. 14. They can specialize in different colocation market segments (retail, for example), and distinguish themselves by offering personalized service. Sponsored by http://www.DataCenterLeadGen.com
  15. 15. Some growth sectors, like the industrial internet services requiring geographical proximity for low latency networking, may be better suited to smaller, local colocation providers, rather than bigger, but more remote ones. Sponsored by http://www.DataCenterLeadGen.com
  16. 16. Much as neighborhood stores continue to compete with large supermarket chains, there are business opportunities for both small and large colocation providers, whichever way the consolidation wind blows. Sponsored by http://www.DataCenterLeadGen.com
  17. 17. How is consolidation – in any sense of the word – affecting you, as a colocation service provider? Sponsored by http://www.DataCenterLeadGen.com
  18. 18. Share your experience and opinion with a line or two in the space underneath. Sponsored by http://www.DataCenterLeadGen.com
  19. 19. Copyright © SP Home Run Inc. SP Home Run is a RegisteredTrademark of SP Home Run Inc.AllWorldwide Rights Reserved. Recommended Reading Learn How Colocation Data Centers Can Create a Scalable, Data-Driven, Marketing and Sales FunnelThat Powers Growth DownloadYour Free Copy Now at http://www.DataCenterLeadGen.com

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http://DataCenterLeadGen.com Should Colocation Data Centers Fear Consolidation? (SlideShare). Is consolidation a question mark hanging over the future of your colocation data center? Find out why this trend could be in fact good for you too. Copyright (C) SP Home Run Inc. All worldwide rights reserved.

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