Next Generation Colocation Management: Why the Choice of Management Solution Matters for Colocation Providers

The colocation market is in a state of flux. Dynamic change is the only constant, with competition fierce and customer expectations rising. Operators need to set themselves apart from the competition, boost customer satisfaction, secure new income streams, and achieve greater cost efficiency – all at the same time. Many are extending their business models beyond retail customers to serve hyperscalers. New players, such as network operators, are entering the arena, consolidation is gathering pace, and global competition is heating up. Space, power, and cooling are no longer enough to retain your customers and win new ones. Stability and security are being joined by other key requirements: customer focus, compelling services, and a state-of-the-art data platform to handle management. All contribute to customer loyalty.

The traditional view that colocation and innovation don’t go together no longer holds water. After all, most resources for hyperscale and hybrid IT are housed in colocation provider facilities. Without them, virtualization and edge computing would simply not be possible. The shift has been further accelerated by Covid-19. Strong demands for IT solutions for remote working and for storing and analyzing large quantities of data have driven healthy growth in the colocation market for private and hybrid cloud services.

Analysts at Grand View Research valued the global colocation market at $44.4 billion in 2020, with a compound annual growth rate of over 13 percent expected from 2021 to 2028. One reason is the increasing number of use cases. These range from electronic health records, IoT production, e-commerce, autonomous vehicles, and advanced robotics to the migration of enterprise applications to the cloud. The enablers here are customer-focused colocation services, which are offered flexibly and efficiently based on cutting-edge technology.

As the demand for data centers is set to rise, the criteria for a good colocation operator is also changing. Today, they must build faster while reducing costs and carving out a distinctive profile. Successful providers are innovative, understand what customers want, and manage their capacities efficiently.

With modern tools such as FNT Command, colocation providers can ease the burden on their own resources, offer their tenants additional new services, boost the speed of their operations, improve customer satisfaction, and achieve greater cost efficiency.

Download our white paper to learn how various colocation operators have implemented FNT’s solution to meet customer demands and set themselves apart from global competition.


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