Jabez Tan on Cloud and Colocation
Source: Data Center Knowledge
Most of the growth, however, is concentrated at the top of the market, driven by the largest providers, Jabez Tan, research director at Structure, who co-authored the report, said in an interview with Data Center Knowledge. The bottom and middle of the market are seeing growth slow down as cloud providers chip away at the overall retail colocation revenue.
The addressable market for smaller colocation providers who aren’t operating at multi-region scale is shrinking, as they are essentially targeting local small and mid-size businesses, and those businesses are prime candidates for moving applications to the cloud. Many smaller providers have been trying to accelerate revenue growth by adding more sophisticated managed services capabilities, Tan pointed out, but “a lot of them are not growing as fast.”
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