Colocation as a driver for digital transformation
- Large amounts of data need to be managed,
- security standards must be guaranteed and
- IT capacities must be dynamically adapted to changing requirements.
This is where cloud solutions and colocation services come into play. They offer companies the opportunity to keep pace with digital change and meet the constantly growing requirements.
What is colocation?
For a long time, companies have opted to operate their own data centres in order to retain full control over their IT infrastructure. The desire to store sensitive data in-house and operate critical applications directly on site has been a key motivation for many organisations. In-house data centres allow a customised infrastructure design that can be precisely tailored to individual needs. Especially in times when cloud computing was not yet a mature alternative, the in-house data centre was considered the most secure and reliable solution for operating business-critical systems.
However, operating your own data centre comes with a number of challenges. The costs for construction, equipment and maintenance are considerable, especially if the highest standards of power supply, cooling and physical security are to be guaranteed. Added to this is the high level of effort required for ongoing operation: from monitoring the IT environment and regular hardware and software upgrades to compliance with strict regulatory requirements, for example in the area of data protection or energy efficiency. Unforeseen events such as power failures, technical defects or cyberattacks can also severely disrupt operations and pose a significant risk.
The increasing complexity of modern IT systems poses a further challenge. The development of new technologies and increasing demands on computing power and storage capacity require constant investment and a high level of expertise. However, in view of the shortage of skilled workers, it is becoming increasingly difficult to find qualified IT experts who can ensure both the operation and further development of the data centre.
Against this backdrop, colocation services are becoming increasingly important. Companies rent space in an external data centre in order to operate their own hardware there. The providers supply the entire infrastructure, including redundant power supply, efficient cooling systems, high-performance network connections and comprehensive security measures. This infrastructure is professionally managed and regularly adapted to new requirements.
Colocation centres are an excellent alternative to an in-house server room or data centre, as they provide the necessary infrastructure and can be flexibly scaled to meet demand. On the other hand, companies can significantly reduce the costs incurred for operating their IT infrastructure by using such a centre. According to a study by Gartner, colocation services also facilitate access to new technologies and make companies less dependent on operating their own servers. This creates a solid basis for efficiently meeting the increasing demands placed on IT systems.
The advantages of colocation in the digital transformation
Colocation offers a number of significant advantages in the course of digital transformation:
1. Scalability and flexibility
As companies become increasingly digital, their requirements for computing power and storage capacity are growing. Colocation offers the necessary flexibility to quickly adapt IT infrastructures to growing needs. According to McKinsey & Company, a fast and flexible response to increasing requirements is an essential factor in meeting the challenges of digital transformation.
2 Improved security standards and compliance
Data protection and security are key requirements for digital infrastructure. Colocation providers invest in state-of-the-art security measures such as early fire detection, extinguishing systems, video surveillance, access control and emergency power supply to ensure maximum security. This is particularly relevant for companies in highly regulated industries such as healthcare or the financial sector. The Bitkom association emphasises that companies that rely on colocation can meet compliance guidelines more efficiently, as these data centres are certified to the highest security standards.
3 Reliability and uptime
High availability and uninterrupted uptime are essential for digital business processes. An outage can not only cause financial losses, but also affect customer retention. Colocation providers rely on redundant systems and regular maintenance to minimise downtime. A study by the Uptime Institute shows that the reliability of IT infrastructure can be significantly increased through colocation services.
4. Cost optimisation and efficiency
Operating your own data centre is associated with high investment and operating costs. Colocation centres usually spread the operating and investment costs over several companies, which in turn have to spend less on their own IT infrastructure. According to an analysis by Deloitte, this is a significant cost advantage for companies that want to concentrate on their core business processes.
5. Environmental friendliness and energy efficiency
Sustainability is increasingly a key factor in the choice of IT infrastructure. Colocation providers often rely on energy-efficient technologies and operate their data centres with green electricity. This helps companies to reduce their carbon footprint and operate in a more environmentally friendly way. A study by the German Federal Environment Agency shows that colocation centres often consume up to 30% less energy than conventional in-house data centres.
6. Focus on core competences
The complexity of modern IT infrastructures often ties up a large proportion of internal IT resources. By using colocation services, companies can relieve the burden on their IT departments and concentrate on their core competences. Colocation providers not only take over operations, but also offer support and monitoring so that internal IT teams have more time for innovation-orientated tasks. According to a PwC study, companies that use colocation improve the innovative capacity of their IT departments by more than 20 % by reducing the workload.
Conclusion: Colocation is a catalyst for digital transformation
The digital transformation has long been a necessary and, above all, strategically sensible step for companies. Colocation services offer companies the opportunity to react flexibly to the constantly growing demands of digitalisation at any time. Advantages such as scalability, cost efficiency, security and sustainability are just some of the points that speak in favour of using colocation centres. In this way, companies remain competitive in the long term and can concentrate on their actual core competences.
Notes and sources (in German and English):
Trusted-Colo: For general information and details on colocation services and the services offered, it is worth taking a look at providers such as Trusted-Colo.
McKinsey & Company: Analysis of the scalability and flexibility of IT infrastructures and their role in digital transformation
Kamp.de: Entscheidungshilfe für Unternehmen: Ein Vergleich von On-Premise und Colocation für Unternehmen
Uptime Institute: Various reports on colocation services, such as a study on the reliability and uptime of colocation services
Deloitte: Analysis on the cost optimisation and efficiency benefits of colocation compared to in-house data centres
Umweltbundesamt: Umweltzeichen Blauer Engel für Co-Location-Rechenzentren
Bitkom: Rechenzentren in Deutschland: Studie zur Darstellung der wirtschaftlichen Bedeutung und der Wettbewerbssituation
PwC: Study on the relief of IT departments through colocation services and the positive effect on innovation capability
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Philipp Nessmann
Philipp Nessmann has specialised in search engine optimisation (SEO) in his 17-year career as a web designer. His strength lies in a pragmatic and technically savvy approach, with a particular focus on optimising websites so that they not only perform well in search engines, but also contribute to the success and sales growth of companies. He has the talent to tailor SEO strategies to a company’s specific requirements and goals and implement them successfully.