DCN September 2017 - Page 34

Colocation & Outsourcing Entering The Cloud Colosseum How can colocation providers hope to compete in the ever changing data cloud arena? Robert Neave, co-founder and chief technology officer at Nlyte gives us some much needed advice. T he dynamics of the data centre industry are fundamentally changing. Hyperscale cloud providers are stealing more and more customer workloads, and with that, even more data away from colocation providers. This is resulting in the slowing of the data centre and colo market, while the cloud market is rocketing away. Research from Synergy Research Group suggests that worldwide revenues from the cloud and SaaS market will continue on its upward trajectory with gains of 23-29% annually, while the data centre market is expected to drop by 2%. 34 | September 2017 However, all is not lost for colocation providers. While hyperscale providers such as Amazon, Microsoft and Oracle look to build on their strong worldwide revenues, colocation providers can still hold their own – they just need to play to their strengths. Livin’ on the edge In the battle against hyperscale, colocation has the upper hand when it comes to latency. Customers are not just looking to store data, they also want to know that they can access data rapidly, without lag. This is because they need to be able to use business processes much quicker than before to keep up with the blossoming number of devices they are now using. This requires holding data and processes at ‘the edge of the network’ as close to the origination source as possible. This is where the hyperscale providers fall. The incredible distances between their sites and the company’s location can cause latency to increase, meaning meeting the performance requirements necessary to maintain business critical functions will falter. An industry that would suffer irrevocably from latency issues would be the financial sector. In