Do or Die: Company-Owned Data Centers Face Extinction

IO Data Center Colocation Modules

Company-owned data centers are nearing extinction. While it won’t happen overnight or even this year, their long and arduous demise has begun.

Company-Owned Data Centers Decline

In fact, IDC expects the total number of all types of data centers deployed worldwide will peak at 8.6 million in 2017 and then begin to decline slowly—triggered by a decline in internal datacenter server rooms starting in 2016 and internal server closets starting in 2017.1

Despite the decrease in the number of data centers, total worldwide data center space will continue to increase, growing from 1.58 billion square feet in 2013 to 1.94 billion square feet in 2018. And this “race for space” will be led by a growing number of service provider data centers.2

“Over the next five years, a majority of organizations will stop managing their own infrastructure,” says Richard L. Villars, Vice President, Data Center and Cloud Research at IDC. “This will result in the consolidation and retirement of some existing internal data centers, particularly at the low end.”

Will your data center survive? Or will it go the way of the dinosaur?

Making the decision to rebuild or refresh a data center isn’t an easy one, and performance, availability, and security often drive these decisions. While overhauling the data center will naturally deliver increased efficiency and lower operational costs, it will often come at great expense.

There are alternatives, though. Running selected workloads in the cloud and/or performing whole site backups and creating redundant sites can often reduce the IT footprint, thereby reducing both real estate and operational costs. These hybrid cloud approaches are often favored by companies that want to retain a certain amount of control over their data center, and haven’t yet made the decision to entrust their entire data center to the public cloud for security, cost, or other reasons.

Alternatively, if companies already own the equipment or are simply undergoing a data center refresh, colocation can be an excellent option.

Colocation providers are experts in supplying all of the physical plant and support infrastructure needed to run the data center—and in finding the most reliable, cost-efficient way to do so. Options for power, cooling, and connectivity allow freedom of choice and economies of scale drive costs down.

In fact, IO makes significant investments in newer, renewable energy sources and stays on the cutting edge of renewable energies so you don’t have to. IO is also committed to being carrier-neutral, so that you can choose, change, or channel your Internet connection—without disruption to your data center. The result is a clean, “always on” connection.

In fact, IDC predicts that, by 2017, 60% of the datacenter-based IT assets that organizations rely on to conduct business and deliver services will be in colocation, hosting, and cloud data centers.3

So company-owned data centers may be going the way of the dinosaur. But, rest assured, IO can ensure that your data center has the supportive infrastructure to power your business success.


1 Source: “IDC Finds Growth, Consolidation, and Changing Ownership Patterns in Worldwide Datacenter Forecast,” IDC press release, 11/10/2014.
2Source: “IDC Finds Growth, Consolidation, and Changing Ownership Patterns in Worldwide Datacenter Forecast,” IDC press release, 11/10/2014.
3Source: “IDC Reveals Datacenter Predictions for 2015,” IDC press release, 12/09/2014.