number one data center operator, Equinix, only accounts for 8.5% of total global revenue in the market. Kelly Morgan, research director for North American Datacenters, says geography is the biggest factor keeping parity in the market.
“This remains an extremely fragmented industry,” Morgan said. “The majority of colocation facilities are provided by local operators with only one to three facilities each. However, it is becoming harder for them to compete with the more geographically diverse providers that are now entering many local markets. We will see continued consolidation in this sector.”
Scalability, security and maintenance are other factors that make colocation a cost-effective business model. “With colocation you have the option of adjusting your amount of data center space as needed, paying only for what you use,”
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