Is Wholesale Colocation Causing Market Oversupply? (SlideShare)

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Is Wholesale Colocation Causing Market

Oversupply?

Answers to the following questions can help make a definitive statement about wholesale colocation and its effect on the market:

•Which different solutions compete in this market? Which factors affect it?•How are colocation resources provided – in a continual stream or one mega data center at a time?•Who wants to buy data center capacity?•Which channels are available for selling data center capacity?

Sponsored by http://www.DataCenterLeadGen.com

http://www.datacenterleadgen.com/

Processor speeds continue to increase, data generated and stored continues to rise, and the appetite for more compute power at all

levels is healthy.Overall, it seems that data center capacity is

being led by demand, rather than outstripping it.



Hiccups come when leasers of large data centers build their own facilities and existing DC capacity then arrives

again on the market, often as wholesale colocation capacity.



As supply goes up, prices tend to come down, unless sellers find

additional sales channels for their wares.



Monolithic, mega data centers mean large chunks of capacity arriving at once

on the market.However, if new data centers use

modular construction, customers will be able to buy smaller portions, or acquire large one-tenant solutions as required.



Market oversupply, if it exists today, would tend to diminish tomorrow as the supply curve for data center capacity

becomes smoother and stays closer to the demand curve.

This includes purpose-built colocation facilities.



As technology becomes more accessible and affordable, the mass market

develops.This holds for data centers too.

Colocation can address an additional market, making the whole demand pie

bigger. Sponsored by http://www.DataCenterLeadGen.com


The last piece of the jigsaw is a sales channel to get colocation

capacity out to customers in the new mass market.



Colocation service providers already see new demand for a hundred-

kilowatt-level rental that they can satisfy by carving up megawatt-

capacity.Retailers can help bring colocation

sales down to rack level.Sponsored by http://www.DataCenterLeadGen.com


This meets the demand of small and mid-size enterprises looking for

solutions that save on capital expenditure and that are robust (for

business continuity) into the bargain.



Before, the high-end and low-end DC facilities markets were separate.Now demand and facilities exist to

allow customers to grow from a rack of colocation to occupying an entire

data center.Sponsored by http://www.DataCenterLeadGen.com


Market oversupply may never completely go away for the

reasons above, but it will become less and less of an issue.



How much modularity would you look for in a data center destined

for wholesale colocation?



Share your opinion by leaving a Comment in the space

below.



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Is Wholesale Colocation Causing Market Oversupply? (SlideShare)