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Space for Rent: Corporate Demand for Co-location on the RiseDuring the dot com fervor, providers couldn't keep pace with the demand for co-location space. These companies were all about information and they needed someplace to house their servers outside their corporate headquarters. Co-location provided a convenient, efficient, and secure answer. That's still the case, but the reasons for today's interest have changed. When the bubble burst in 2001, many providers found themselves with plenty of real estate for rent, but no one knocking at their door. Today, however, plenty of companies are re-looking at co-location to address heightened security and business continuity. Almost weekly the media reports on missing computer back-up tapes containing personal information on everything from credit card accounts to Social Security numbers to tax returns. In the wake of Katrina and new demands for information storage that stem from HIPAA and Sarbanes-Oxley legislation, businesses of all size now face additional requirements. And they realize the work needed to do it in-house can prove an expensive, time-consuming investment. Companies need a secure, off-site location to store information so they can protect it from theft or quickly re-route it in case of disaster. They need high-end connections, an efficient network, and premium security. And in most cases, it's much more cost effective to opt for co-location rather than building and maintaining this kind of a facility through their own IT staff. |
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