EXCERPT:
Many companies are at a crossroads between outsourcing or upgrading their data centers to keep up with technology, while lowering capital expenditures and operating expenses. As more businesses look to public cloud services like Amazon AWS and Microsoft Azure to host their data and applications, they are consolidating their on-premises data centers.
For example, since 2015, financial corporation Capital One has consolidated from eight data centers to three, while General Electric consolidated from 34 data centers to four. And the U.S. Government has consolidated a total of 1.7 million square feet of data center space as part of the Federal Data Center Consolidation Initiative, with a goal of closing 25 percent of tiered and 60 percent of non-tiered data centers by the end of fiscal 2018 through the Data Center Optimization Initiative.
Many companies are also choosing to eliminate on-premises data centers but still manage their hardware through colocation services. IT research firm 451 Research reports that the data center colocation market reached $27 billion in annual revenue in 2015, and projects the global colocation market will jump to $33.2 billion by 2018.