The data center market has seen exponential growth in the last 5 years as the demand for cost-effective cloud hosting has grown. As data center operators from all over the world have expanded and grown to meet this demand, the market has become saturated with excess capacity. As a result, excess capacity has forced downward pressure on current models for colocation pricing and a slowdown in capacity expansion.
Experts believe this overall market cap on colocation supply will have an eventual cooling effect on falling prices. This pricing adjustment will be especially true in markets with competitive power and facilities capable of scaling to meet the needs of current enterprise demand. It is believed this adjustment in supply and the continued demand will have an overall upward push on pricing in the next 18 months.
Regardless of whether we have reached the bottom of the colocation price curve, it is more important than ever to choose a data center that is capable of meeting your needs based on facility and service than on price alone.
Let us offer 3 suggestions to consider when choosing a colocation provider.
- Scalability of the Provider
The data center market has not reached its “end of life” even with capacity for short-term colocation space drying up. The data centers you consider should have a plan for long-term growth. Your business’s growth potential does not need to be held hostage by the poor planning and short term choices of your colocation provider. If your provider options do not have the capacity for scalable space and power, you should look elsewhere to other providers who have plans to meet the eventual need for market growth.
- Design Flexibility and Service
Markets vary, but many data centers have fallen to only offering rigid and structured programs that leave little room for agility in meeting the needs of customers. Consider a search for providers who do not lock you into long term contracts and or penalize you for making changes to your solution as your business grows. Flexibility should be the new normal in the data center model. For those seeking a colocation provider who will be a partner in your long term success, seek out data centers with high levels of customer service and a sincere interest in the success of your business.
- Pricing Models
Don’t get caught in a bait and switch. Many data centers will lure you in with rock bottom monthly pricing but will catch you on the flip side with added costs that come with additional power usage and connectivity overages. Be sure you understand their pricing model and what you are paying for each month in your SLA (Service Level Agreement).
Colocation pricing in today’s market can offer great incentives to move your gear off-premise. Just be aware of the different offerings that can be found in the marketplace and take the time to evaluate providers with an understanding that these are long-term choices that have expensive consequences if done incorrectly.
If you would like some assistance evaluating whether a colocation solution would be a good fit for your infrastructure, contact us below or drop us a call at (405) 443-3667 to schedule a FREE consult and tour of RACK59.