The rise of public cloud computing has transformed the way most IT organizations view investments in data centers, but it turns out providers of public cloud services are not the only major beneficiaries of that shift.
A new report from 451 Research finds that as of the third quarter of 2016 the datacenter colocation and wholesale market was on track to generate $28.9 billion in annualized revenue. The research firm is predicting the datacenter colocation and wholesale market will top $48 billion by 2021.
That level of growth suggests that while IT organizations may not be investing in building new data centers as much as they once did, they are not moving all their application workloads into the public cloud. Instead, they appear to be applying the IT infrastructure lesson taught by public cloud providers in a way that allows them to maintain more control of the IT environment while benefiting from higher levels of service.