Dallas Colocation Firms Aggressively Growing Their Cloud Businesses

Dallas colocation firms are in a state of aggressive competition because of the changing landscape of the colocation business.

Both established data centers and new entrants in the market are all expanding rapidly to meet the needs of the target market.

The increase in demand for colocation services is directly linked to businesses seeking to cut costs.

Growth Amid Intense Competition

As more companies understand the benefits of partnering with an external data center, the future looks even brighter. The demand, for the most part, has been coming in from a wide range of industries including:

• Finance
• Hospitality
• Insurance
• Technology

Dallas has seen small new entrants and established giants like IBM fighting it out to attract the most business. So, how does a Dallas colocation firm evolve and grow their business amid intense competition?

Sure you can offer cloud services, mobile technology, and savings, but what is really important is for data center brands to stand out and differentiate!

Cloud Computing Made Easy

Cloud-based computing has increasingly become more complicated. Further, there is no blueprint for placement or pricing. By understanding these different variables, Dallas colocation firms are adapting their packages to help customers understand the best way to move forward.

Although companies have employees that understand colocation, they may not necessarily have experience with cloud migration. Providing easily accessible information and making the migration process easier has become integral to the selection process.

Cloud computing is going to keep growing and as a result so are data centers nationwide. According to Cisco, global data center traffic is expected to triple over the next couple of years to 7.7 zettabytes (at an annual compound growth rate of 25%).

Pricing Strategies

About five years ago, data center pricing was on an upward trend (for the most part). When the competition significantly increased, prices started drop and level out. There are so many factors that affect pricing, so it’s hard to devise with a “one size fits all” solution. So, expect pricing strategies employed by Dallas colocation businesses to continue to evolve.

There is more control and adaptability when the data center is in-house, but it is just not cost effective anymore. By offering a flexible and adaptable strategy at a low cost, the competition in Dallas, Texas will continue to focus on a price point.

At the present time, data centers in the area are offering large strategic whole packages to customers with the hope of averaging out the cost amongst high margin customers. Further, if customers are not using the provided space as expected, the difference can be moved toward services.

It is important to note that all data center spaces are not the same. This means that spaces with more redundancy will cost more to deliver. By correctly assessing the needs of the customer, Dallas collocation firms are able to develop flexible pricing strategies to provide custom space. As a result, price fluctuations within the same facility can also be observed. 

Has your company just transitioned to a colo provider in Dallas? Let us know about your experience in the Comments box below. 

And if you’re responsible for growing the client list and revenue of a colocation provider in Dallas, be sure to download your free copy of “Lead Generation Best Practices for Colocation Data Centers.”