Fig. 7.1 Percentage of legacy equipment in Colocation vs remaining on premises, by vertical Colocation Colocation service providers o昀昀er power, bandwidth, cooling, and physical security in a data center facility, giving businesses the ability to rent space for their servers and other computing hardware. Because of the high cost of building new data center space, enterprises are increasingly turning to colocation providers in a trend that has parallels to the move to IaaS. Respondents were asked about the percentage of equipment that has been/will be migrated to colocation services, as opposed to premises-based systems. The top three industries that are expected to grow their use of colocation services in the next 12 months are energy, healthcare/medical (including biotech), and legal services, according to survey respondents. Data privacy and regulatory concerns are helping to drive growth for Source: AVANT Analytics State of Disruption 2024 colocation services, as companies still own and manage their own equipment. Copyright © 2024 AVANT Communications, Inc. 23