Many businesses face a considerable challenge when they try to figure out how they will expand, especially when they are thinking about moving into international markets. While staffing, logistics and market dynamics are all major issues, one of the most problematic considerations is what to do about data centers.
Many companies gain an edge over the competition through technology. However, an international move is already expensive enough without having to figure out a way to build a new data center in a foreign location where real-estate processes vary and new regulatory laws have to be considered. This can make establishing a private data center in a foreign location a nightmare for IT managers and real estate teams. Turning to a colocation provider can alleviate this burden by giving organizations access to state-of-the-art data center space in a leasing deal.
Considering colocation for international expansion
With the global economy increasingly moving toward the Asia-Pacific region, many businesses find themselves with a unique opportunity to expand their services to new markets. However, doing so requires moving quickly into new regions to get a jump on the competition. By using colocation, companies can travel a simple path to expanding. The service gives them access to data center space, but allows them to still control their infrastructure. As a result, a business opening a new office in Sydney, Australia, can use a local colocation data center to handle its IT setup, avoiding the cost and logistical challenges of trying to open a new office and a new data center in the area. At the same time, the facility is still close enough to the office for IT workers to get there easily.
Convenience is not the only benefit of colocation in foreign regions. Many businesses trying to expand internationally also have to wrestle with regulatory environments that are different than those in the home country. Working with a third-party provider that can help ensure the data center is managed and secured in such a way that it complies with all laws can remove risk.
Colocation as an expansion driver
Implementing a colocation solution does not just pay off if a company is expanding internationally. Many experts agree that the colocation sector has been growing recently because more businesses are using the solution to expand their service blanket. For example, a company based in San Francisco may turn to a Boston colocation solution to support East Coast expansion.