Although a good number of large organizations are operating their websites and other IT functions from their in-house data center facilities, it is strongly predicted that the migration to cloud or colocation hosting will reach its crescendo by 2018 with as many as 65 percent all infrastructure associated with enterprise IT will be either located in colocation facilities or cloud environment.

Significance of colocation data centers has been well established since these facilities provide a rock-solid infrastructure for keeping business critical websites and applications up and running. Enterprises are able to leverage these services for leasing a secured place to position and host wide array of physical equipment at one place.

In terms of their basic objectives, cloud computing services and colocation hosting services, share multiple similarities. Both services are designed to empower organizations with economical and purpose built solutions.

It is for the same reason cloud is emerging as a strong competitor for colocation hosting services. Moreover, since cloud is able to cater to multiple demands of customers, it is feared that colocation will witness a downward trend in years to come.

Impact of cloud on colocation

In order to understand the prospects of colocation services in the face of advanced cloud computing, we must understand the reasons that prompted development of colocation industry.

The most overwhelming aspect of running an onsite data center facility is to make provision for unrelenting power, cooling, and networking to support mission critical applications and websites. These factors are also accountable for massive budgetary outlays in terms of IT budget of the organization.

Colocation hosting can significantly reduce these expenses and help organizations focus on their core competencies rather than looking after mundane tasks of managing and maintaining hardware equipment. Colocation providers are capable of freeing up enterprises from complexities of running on premise data centers.

However, small and medium businesses are found to prefer cloud computing services over colocation and are rapidly shifting their workloads to cloud to explore advantages of modern computing technology offered by cloud service providers. It has severely impacted colocation industry since an idea of having cloud to support your application is much more lucrative than having a cost intensive facility of an individual data center.

One of the most important attributes of colocation hosting serviced is the availability of carrier neutrality. However, cloud computing scores over this feature by enabling cloud neutral services that facilitate use of different cloud services with ease of migration. Colocation providers are therefore expected to provide facility of accessing wide range of cloud instances to their clients.

Providing facility for implementation of cloud neutral strategies for customers is a debatable issue and moreover it remains to be seen whether the comprehensive deployment of such resource is viable or not.

Prospects of cloud computing

Is the accelerated pace of cloud adoption indicative of the nemesis of legacy hosting services or colocation hosting? If every enterprise migrates workloads to cloud services, then the future of colocation hosting is destined to be bleaker than expected.

It is expected that colocation as well as cloud computing will work in harmony for a considerable period of time in spite of accelerated pace of cloud adoption by majority of enterprises. In terms of infrastructure planning of majority of enterprises, colocation still continues to be part and parcel of policies. This is mainly due to particular requirements of hardware equipments or compulsions of compliance.

Even though cloud computing cannot be termed as future of IT it is definitely a part and parcel of the same. It can be safely assumed that colocation is going to be around for the next couple of decades. It is going to grow in tandem with cloud hosting services.

Cloud like advantages of colocation

It is interesting to note that colocation servers as well as IT equipment have capability of offering multiple benefits of cloud hosting. There is no need to invest in arranging connectivity and other fundamental resources such as cooling, power, and networking even though enterprises are supposed to invest for server procurement.

This can guarantee massive savings in terms of capital outlays. In case of cloud, one can also come across the advantages of reduced or minimum hardware expenditure. It is also easy to expect considerable savings in terms of power consumptions if your colocation host is serious about optimization of energy.