Despite the growing hype surrounding cloud computing, the colocation industry is still far from becoming irrelevant. In fact, a study from IMS Research (an IHS company), projects that demand for colocation will continue to rise significantly over the next several years.
“The North American colocation sector generated $6.5 billion in revenue in 2012, and is expected to grow to $10 billion by 2017” (Source Data Center Knowledge 2013)
Another report, from Research and Markets, estimates that the colocation industry will grow at a CAGR of 13.36 percent from 2012 to 2016 (Source Research and Markets 2013). The report also indicates that prices for colocation services continue to fall while the demand increases; demonstrating the extreme level of competition that exists between colocation providers today.