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What the future holds for the colocation industry in India

If we had to use one word for the future of the colocation industry in India, we would say that it is bright. The pandemic has pushed industries towards digitisation in an unprecedented manner and it no longer remains a choice whether you want to go digital or not. This has also resulted in a huge spike in data usage, not only in India but the entire world. Therefore, in order to meet the growing data storage requirements, colocation centres have taken the centre stage like never before!

Why colocation works

Colocation works on many levels, especially as an alternative to traditional hosting solutions. This means that multiple businesses can be hosted in the same location, with proper power, bandwidth and cooling facilities, security protocols and physical safety. This allows almost every size of business access to the best quality of data storage and processing without having to invest time and resources in the functioning of the data centre.

Let’s explore some of the key developments in the colocation industry in India.

Incentives by states

Even before the pandemic hit, state governments in Maharashtra, Telangana and Andhra Pradesh announced incentives for the development of data centres which has been a major boost for the colocation industry in the country. This has been made possible since, over the years, several benefits of colocation have become prominent, prompting more and more businesses to turn towards colocation. 

These benefits include access to high-performing environments, the capacity to allow every business dedicated, private connection without interruption from others, a reduction in ownership costs and the flexibility to scale at any given time. 

The data density explosion

Since data density has grown exponentially in the past few years, old data centres, especially purpose-driven data centres have not been able to keep up with the growing power demands. The costs for renovating such data centres in order to meet the demands is not practical in many instances. 

This has also led to a major shift towards colocation centres in the country. Colocation centres offer better flexibility and are therefore being preferred by businesses. 

The tech giants enter

When looking to expand the reach of a brand and work on the end-user experience in multiple locations, colocation centres are always preferred. In a country the size of India, this comes as a no-brainer that businesses invest more in colocation than dedicated data centres. A giant boost came to the practice when tech giants like Google, Microsoft and Amazon showed interest in the stakes for colocation in India. 

Future prospects

Experts believe that the demand for data and thus colocation is only bound to rise in the future, in India and in the world. With more and more data centres and colocation centres opening up in the country, newer innovation is finding its roots in the country; be it the physical aspects of managing data or the different software technology being used. 

Hardware manufacturers, too, are coming up with ingenious solutions to meet the demands of data through smart storage solutions, allowing a much smoother running of colocation and data centres. 

At Hardy Racks, we have a key supporting role to play in this new revolution, partnering with data centers and colocation facilities to offer the best server racks and accessories for efficient, seamless, and secure operations. Contact us to know more about the solutions we offer.

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