How colocation can improve TCO for the enterprise

2021-05-31 04:00

"As businesses continue to empower remote workers and fortify their digital footprints in response to pandemic-induced changes, colocation has emerged as an essential pillar in a successful hybrid IT strategy," said John Gallant, Enterprise Consulting Director at IDG Communications.

Colocation lowers operational costs and improves TCO Increased security and flexibility/scalability were reported as top two primary reasons to migrate workloads to colocation solution.

Thirty-five percent surveyed say that colocation lowers operational costs and improves TCO. 46% of respondents say their companies are gravitating to an operating expense model for IT spending.

Ninety-three out of 100 IT leaders say they are confident their colocation partners can enable future transformation initiatives.

One survey respondent, a senior director of a SaaS provider, stated "I don't want to build my own data center - our competency is designing, engineering and maintaining software. I don't want to get into the business of peering with carriers. Those are things that a colocation business provides."

"Colocation enables enterprises to save up to 60% on cloud connectivity, compared to telecommunications or software-defined network offerings, and roughly 70% for data replication expenses. Eliminating egress charges when restoring data from certain cloud availability zones is an example of how colocation can improve TCO for the enterprise."

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