Ted Ritter – The Coming Colo Crunch
Ted Ritter is a Principal Research Analyst with Nemertes Research.
Given all the time, investment and energy (literally) that enterprise organizations have been making in their data center facilities, you’d think that the availability of such facilities is a non-issue. You’d be wrong.
Nemertes Research predicts a shortage of colocation space in the U.S. beginning this year, growing to a $1.9 billion facilities gap by 2015.
How did we arrive at these conclusions? We looked at the data center market by independently assessing both supply (the current and predicted availability of commercial data center colocation facilities) and demand (the user need for such facilities). And we found that while supply is growing, demand is growing faster. This supply-demand imbalance creates what we’re calling “the colo crunch”.
Supply is Growing…
To assess supply, Nemertes relied on traditional primary and secondary market research techniques to determine the current market size and extrapolate growth rates. We arrived at an overall 2012 domestic market of roughly $18.5 billion in commercial data-center colocation facilities, growing to $31.2 billion in 2015.
More of the Data Center Knowledge article from Ted Ritter