Colocation Data Centers Will See a Boom in 2009

Posted 1.3.09 by

Despite the Economy, Colocation and Web-Hosting Businesses will Thrive in the Coming Year

According to the article in eWeek, IT colocation, dedicated server and web hosting businesses are expected to thrive in 2009 as IT departments are looking for ways to cut their data center budgets. They are looking at colocation as a way top avoid capital expenses and outsource some of their operating costs.

IT colocation is the provision of space, bandwidth, and power in a data center, with the customer being required to provide and manage the computing hardware. Data centers that provide this service are called colocation centers; most are independently owned and operated.

According to the article, most analysts and industry insiders believe that the colocation and Web hosting businesses will thrive in 2009, despite the weakening economy. This is because as companies look to economize in their IT budgets, they are beginning to look more closely at hosted services as a way to avoid capital expenditures that include new servers, switches, software, and affiliated licenses and services.

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