How colocation can improve TCO for the enterprise

CoreSite and IDG released a report which examines the latest data center trends, strategies, requirements, and other findings from an annual quantitative survey and in-depth interviews with senior IT decision makers.

colocation can improve TCO

“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.

“The 2021 survey findings demonstrate that a diverse multi-cloud hybrid IT architecture can fuel transformation, foster resiliency and achieve important business outcomes.”

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
  • Ninety percent of respondents say interconnection to cloud providers is critical or important

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.”

“The findings in this year’s State of the Data Center Report reflect what we are hearing from our customers and prospects,” said Steven Smith, Chief Revenue Officer at CoreSite.

“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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