Colocation data centres: fast tracking the digital future

Dec 10, 2020
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The anticipation about the rise in cloud computing, data centers, and everything that comes with it is now solidifying in the mindset of even the most conservative entities out there, and colocation services is stealing the spotlight in this next big chapter.


Accelerated flux and effective business conversion


Working from home was just the beginning, and we expect to see companies and organizations following the same path towards online services. Some may succumb to the economical pressure that’s going to manifest over the next couple of years, which will force everyone to make cuts like shutting down their offices (1) and making their workflow leaner. Others will just aim for more efficient and versatile operational models where traditional data handling methods can no longer fit in.


Colocation is at the epicenter of this transition because it can hit the golden means between cost and benefits, and as long as it’s done right, it can accelerate the passage to this new age. The entities that will choose to postpone this for any reason will see the chances of getting alienated by their own target market increasing exponentially month by month (2).


At the rate this is moving, cloud computing vendors develop and extend the offered services more dynamically than ever before. This however doesn’t mean that things must be built on loose ground. Whenever the situation calls for sudden changes though, risks always lurk, so moving quickly shouldn’t come at the expense of being diligent. Many pivotal factors come into play when commencing in the development or the adoption of data centers, and some of them can easily fly under the radar due to bad prioritization or lack of clear vision.


Moving to an interconnected future


The role of colocation services is to support the vision that business have about transitioning to an interconnected future. IoTs are pullulating quickly, data lakes are satisfying the thirst for data collection, categorization, and analysis, and targeted advertising is becoming the number one commodity to commercialize. With the arrival of the 5G, the final frontier to have a truly interconnected world has been reached, so from here onwards its about supporting all of that and making it happen.


It’s up and running at all times


Service reliability is our highest priority, and to guarantee that, one has to take proactive action on a wide spectrum of different areas. To ensure uninterrupted uptime and business continuity, STT GDC India has diligently built a multi-layer system of failsafes and also redundancy systems, so even if something goes wrong, we can respond immediately and effectively. On the physical security side, we have 24/7 monitoring and video surveillance, and also agents on location at all times. The same applies to every aspect of the electric power supply, cooling, and network connectivity, as all of these elements are non-negotiable for anyone who wants to offer a robust service.


Market growth estimates and skid factors


Discussing market growth estimates in volatile conditions is challenging, but the sign remains positive nonetheless. The market revenue growth for colocation services this year alone will reach 6.2%, while between 2020 and 2024 it’s going to grow at a 7.1% compound annual rate (3). While these figure are characteristic of the trends fueled by the situation, they are a little bit lower compared previous estimates (4). Another thing that played an adverse role was the inability to scale up quickly.


Understandably, managing explosive demand isn’t free of complications, but the lack of scalability is one that concerns problematic designs. STT GDC India has been assiduous in developing holistic solutions that fundamentally support rapid scaling. This is where "fast-tracking the digital future" enters the equation, as one needs to have a concrete plan on how scaling up, expanding, and growing will take place without getting derailed from their core values’ track.


India opportunities and challenges


In India, we are called to support an unprecedented demand in colocation services, which is expected to take large proportions in the next five years. I would say that this is fueled mainly by two distinct factors. First, the tax-cut incentives recently announced by the finance ministry and which concern investments of $1.5 trillion (5). Second, the rise of the local software and online services providers is explosive right now, and it’s going to scale even further (6).


The estimates are putting the growth of India’s public cloud market to $856 million USD by 2025 (7), but this won’t come without challenges. Those involved in the field point out the same long-term issues that have been plaguing the sector for quite some time now, including the lack of management support, absence of enough talent to carry out the endeavor, and capital shortages.


Future gazing with confidence


At STT GDC India, we are not merely catching up with the rising demand in colocation services, but we instead strive to lead the developments in the field, offer reliable and flexible solutions, and eventually make our clients forget about this aspect of their operation entirely.


As we move forward towards the end of 2020, we are scaling up quickly and decisively to address the rising complexities that have spawned due to the combination of the pandemic and the otherwise natural technological developments that push everything towards cloud computing. We are confident that we can do all that because everything we do is based on solid planning, in-depth anticipation, and cherry-picked talent.