The coronavirus epidemic carefully shifted the digital needs of many businesses offline. These shifts are likely to positively impact many industries, especially IT and data centers. In 2020, the explosive growth of data was never realized before. As more businesses have begun to move their IT infrastructure to the cloud, demand for colo or colocalization facilities has grown rapidly.
A colocation facility is primarily a data center in which an organization rents space for servers and other hardware that they purchase. The colocating firm provides the necessary structure for working organizations, such as a cooling facility, power, bandwidth, and physical security. A preferred option for traditional hosting, many businesses may have colocalization facilities, depending on the requirements of each.
Talking about how the size of the colocation industry will change in 2021, presumably to say that one of the consequences of the epidemic was digitization. A recent report by CRISIL stated that India’s data consumption has seen a jump of 38% during this period, which is expected to reach $ 4.5-5 billion by FY 2025. After 5G is launched, it will enable new applications requiring less delay. . The data centers will then be upgraded to the latest technology. The expansion is likely to be Kolao in all major cities like Mumbai, Chennai, Delhi NCR and Hyderabad.
As more businesses adopt smart technologies in their homes and businesses, the demand for edge computing is bound to increase, and will therefore shore up data centers. Leading collocation and hyperscale providers such as Amazon are likely to enter the market during 2021, due to improved reliability and demand for speed in the growing market. Such investment by a major player suggests that much expansion is expected in the colocation sector. In India and abroad.
“Initiatives by the government, such as Digital India and with an emphasis on self-sufficiency and data security through data localization, are expected to double the size of IT and communications infrastructure in the coming years. In such a scenario, many private organizations are moving from captive data centers to collocation services to carefully reduce operations and maintenance, ”Mr. Ravi Raj, Director, Netrack India. Callulation facilities through multiple service providers provide uninterrupted power supply. As of November 2020, India has 126 colocation facilities spread over 7.5 + million square feet, and average IT power capacity is 590 million / MW.
The impact after Kovid-19 has led to a shift towards optimization of cloud services that are more secure and scalable. According to NASSCOM, cloud spending in India is projected to grow at a CAGR of 30% to reach $ 7.1 billion in 2022. One of the largest colocona providers, Equinox announced expansion in India. With so much growth and growth expected in the data and collocation industry, an increased demand for IT and server racks and enclosures is clearly nothing. In India, a single data center may have the highest market share, however, the colocalization service is seeing tremendous growth and is expected to be at the same level as captives.
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