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Three Industry Trends, Three Business Opportunities for Colocation Providers

Jun 2021

Three Industry Trends, Three Opportunities for Colocation Providers

The events of 2020 forced most organizations to quickly figure out how to close the gaps in their business continuity plans. Now, many of them are recognizing that multi-tenant data centers can help them maintain operational resiliency and enable innovation moving forward.

Here are three post-pandemic industry trends that present business-building opportunities for colocation providers:

  1. More Applications, More Diverse Workloads, More Demand for Hybrid Cloud

For IT leaders focused on ensuring that the growing number of applications in use are always available and performing as expected, hybrid cloud architectures can make both dollars and make sense. Hybrid cloud architectures provide the flexibility they need to allow application workload requirements to determine where they run, which might be in or across an on-premises data center, public cloud or in an edge environment.

This is an area where colocation shines strong, and a booming business opportunity for multi-tenant data center providers. In fact, Arizton Advisory and Intelligence predicts that the colocation market will grow at an annual rate of 7%, reaching revenues of more than $53 billion by 2025.

2. Tenant Expectations for a Touchless Experience

As IT leaders look to the future, it’s with a fresh perspective shaped by experiences of the pandemic. Perhaps more than ever before, they are focused on worker and workplace safety. As a result, they are making virtual business practices the new normal, and expecting their colocation partners to do the same by providing a touch-free tenant experience.

Panduit solutions, such as SmartZone G5 iPDUs, provide tenants with complete environmental monitoring, true power consumption transparency and cabinet-level security and help colocation providers keep pace with changing business requirements.

3. Infrastructure Requirements for Interconnection Services

Innovation is made better though collaboration, which is one more reason why more and more organizations are partnering with colocation providers. IT teams are looking for fast, reliable access to SaaS offerings and interconnected services from multiple vendors across the technology industry ecosystem.

Mordor intelligence predicts the Data Center Interconnect Market to reach a value of $7.65 billion in 2025, up from $3.48 billion in 2019.

An Infrastructure to Build On

A physical infrastructure that can keep pace with changing business requirements is foundational for multi-tenant data center success.

Visit our website to learn more about Panduit solutions for colocation providers.


Teri Acuna

Teri Acuna is a Global Account Manager within the MTDC vertical at Panduit. In this role, Teri works with not only the MTDC Accounts directly but, with the Integrators, Consultants and Contractors deploying solutions from core & shell projects to cage fit outs within the MTDC sites. As President of a Chapter of AFCOM, Teri collaborates with various MTDC’s and their tenants throughout the US and abroad on their strategic data center plans, pain points, speed to deploy models and trending data center solutions. Teri is a LEED AP/BD+C and focuses on the wholistic solutions that align with the energy efficiency challenges in the MTDC world. Teri has been with Panduit for 14 years and brings over 25 years of experience in structured cabling, conveyance, power, and cooling. Prior to Panduit, Teri owned a structured cabling contracting company in Central Texas with customers like the University of Texas, the City of Austin, and the State of Texas.