Adam Eaton, Sales Director at Pulsant discusses the trends in the colocation market in the second instalment of his blog.
Following on from Part 1, another trend that should influence your selection of a colocation provider is the ongoing consolidation underway in the European and global markets. Equinix have announced the US$3.6bn acquisition of European provider Telecity, DRT are circling TELX and NTT has announced further consolidation of its investment in e-Shelter. So, at the top end of the colocation market, particularly in the top 20 global providers, we are seeing significant consolidation, but how does this impact the UK mid-market? Where does this leave local providers of colocation only and how will they differentiate themselves? Is there a risk of local providers being swallowed up by the global providers to satisfy their expansion plans, and, if so, what does this mean for you?
One thing is certain, the consolidation of these large players will result in significant amounts of space particularly suited to providers of cloud-based services or large global corporations. That is to the advantage of the mid-market provider who is able to benefit from the cloud and connectivity ecosystems generated by these global providers. What the global colocation provider delivers for the mid-market services provider is a tremendous platform from which to deliver cloud and telecommunication services. Take Pulsant as a case in point. Pulsant will provide Microsoft Azure Express Route services through direct fibre connectivity into Microsoft’s Express Route Node hosted by Equinix in Slough. As the buyer of enterprise colocation and cloud services, you get access to these vast communication hubs but without having to forego the benefits of customer service and price competitiveness offered to you by the mid-market provider.
The colocation market is undergoing a number of external influences, yet today’s enterprise buyer need not be affected by them. Ultimately, enterprise organisations should take the opportunity to benefit from the expertise of a service provider such as Pulsant to take them on the journey from colocation to cloud. This is not the role of colocation providers. The colocation providers allow Pulsant and other service providers, large and small, to cost effectively and securely access multiple cloud services, all hosted under one roof in the colocation provider.
In conclusion, the trends of cloud adoption and colocation industry consolidation lead to key factors that must be taken into consideration when procuring colocation:
What support will my vendor give me when I choose to embark on the journey from colocation to cloud?
Does the vendor have a skilled team of people able to advise not only on colocation design but also on cloud design?
Is the vendor financially stable, or at risk of being acquired?
Do I have resilient, secure, highly available access to a cloud exchange?
Want to know more?