Networks Europe March/April 2019 - Page 26

26 OPINION There’s nothing to suggest that the colocation sector is at any greater risk than any other from the potential upheaval caused by Brexit. The vast majority of UK businesses will continue trading as normal and new ones will join the ranks The cloud An upsurge in cloud computing has driven the success of colocation with hyperscale cloud giants requiring vast swathes of data storage. But colocation is proving to be the ideal solution for organisations of all sizes, not just for these cloud giants. Many businesses are looking to the cloud to future-proof their activities, but most haven’t yet put all digital resources into the cloud. They’re looking for a hybrid solution combining cloud technology and locally-stored servers and IT equipment – cue colocation. What impact might Brexit have on colocation? Relocation versus reshaping We can only guess at the impact that Brexit might have, in the same way we can currently only guess what shape Brexit itself might take. While some companies might choose to relocate their UK headquarters and take their data centre requirements with them once the Brexit process has been completed, it’s likely that companies who are serving the UK market from other areas of Europe might end up moving in to the UK to make it easier for them to do business here. So, we may be looking at a reshaping of the data centre market as opposed to a dramatic tectonic shift. Pressure to remain competitive: The UK is the largest market for data colocation space outside the United States, and this is unlikely to change