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Both cloud and colocation (data centre) providers store and process data, however only data centres house servers and other physical infrastructure. Cloud service providers therefore use data centres to house their cloud operations, leading to the claim that colocation providers are the 'home of the cloud'.

However, by the very nature of the technology, the 'home of the cloud' does not exist in a single data centre location. It is through the combined service of best-of-breed colocation and best-in-class network operators that the cloud is readily available to all enterprises across multiple industries.

COLOCATION IN A CLOUD-BASED INDUSTRY
Despite existing misconceptions, the cloud and colocation offerings available today exist in a topology that can be modelled to suit any corporate business objective, including rapid growth, consolidation, simplification, mobilisation or simply cost reduction.

In order to remain competitive, traditional colocation providers must ensure that their data centres are capable of delivering not only first class colocation services with flexible contract options, but also offer their customers a clear on-ramp to cloud.

COLOCATION FOR CLOUD-BASED BUSINESSES
We are seeing the needs and expectations of businesses changing when it comes to data storage and infrastructure. In retail-based businesses, we are seeing millennials move into senior roles, and these digital natives expect to be able to use the cloud for all of their IT needs. This puts a demand for a seamless, highly scalable service onto cloud providers, who in turn require a colocation provider to give them the power and infrastructure to provide this.

Large enterprises are increasingly using hybrid cloud for their data storage. According to Gartner, large enterprises are regularly introducing a bimodal IT model, in which enterprises use the public cloud for all of their applications that they need to scale widely and quickly - systems of innovation, but also maintaining a private cloud operation for sensitive company data - systems of record.

It is actually colocation that enables these hybrid cloud solutions by providing the power, cooling and maintenance services to service the private cloud, as well as the networks and connectivity to deliver access to the public cloud. Through colocation, cloud providers can provide their customers with hybrid cloud solutions without having to build and manage their own physical data centres - a major cost saving, which can in turn be passed onto customers.

THE CONNECTIVITY FACTOR
Best-in-class colocation providers already offer high grade infrastructure for cloud connectivity, including diverse fibre duct infrastructures and multiple network connectivities, that cloud providers can take advantage of without having to manage and run their own data centres.

This connectivity is extremely important for cloud providers, as their customers need a cloud provider with the connectivity to reach other cloud providers and enterprises, exchange traffic and connect systems, platforms and applications where necessary. Colocation providers are already designed to be connected to carriers, which means that cloud providers can trust and rely on colocation providers to offer this functionality to their customers.

Though their functions are intertwined, it is worth noting that networks and data centres are increasingly being operated separately. Carriers that own and operate data centres in a dual strategy are rapidly divesting these two distinct businesses due to the high capital investment requirements of both, and reverting to their pure-play model of network only solutions. However, despite their changing business model, carriers and data centres are still working together to provide highly connected colocation services to cloud providers.

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