Analyzing the Impact of Shifting Workloads on Colocation Providers

It’s not a big revelation that enterprises have shifted workloads to the cloud hosting. But it is useful to consider how enterprise requirements are changing based on this shift and how colocation providers can capitalize on the opportunities being created.

To that end, 451 Research, with support from Vertiv, surveyed more than 700 IT decision makers to determine their plans for dealing with the increasing complexity of IT workloads, particularly as related to cloud and IoT.

We’ll discuss the findings from the resulting report, Data at the Edge: The Impact of Cloud and IoT on Data Center Location and Demand, over multiple posts in the next several months. For this post, I want to focus on the results as they relate to cloud services and colocation.

Direct Connectivity with the Cloud Providers for increasing IT workloads

On average, participants in the survey already had less than a quarter of their workloads running on non-cloud, on-premises data centers. Slightly more than two-thirds of workloads are running on some form of cloud service, including private cloud hosting, IaaS/public and SaaS. They don’t expect those percentages to change significantly in the next two years.

What they do expect to change is the size of those workloads. A large majority (86 percent) expects workloads to increase in the next two years, with 40 percent preparing for workloads to grow by at least 50 percent.

One way they’ll deal with that growth is through enhanced connectivity. More than half of participants are evaluating direct connection to cloud providers (57 percent) or internet exchanges (56 percent). This makes colos even more attractive as they can offer enterprises a choice of public cloud and private cloud hosting as well as a diversity of connectivity services.


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