M+E Connections

CoreSite Report Focuses on the State of Data Centers

More than 90 percent of IT decision-makers are considering moving critical workloads, including artificial intelligence and machine learning, to colocation, and nearly 95 percent say native, direct connection between colocation data centers and major cloud providers is now a necessity.

That’s according to a new report from hybrid IT solutions provider CoreSite and American Tower Corporation, in partnership with CIO. The 2023 State of the Data Center Report examines the latest data center and cloud computing trends, strategies, requirements and other findings from an annual quantitative survey and in-depth interviews with senior IT decision-makers.

“Businesses must closely scrutinize the value of their technology investments to ensure that their decisions will deliver on enterprise objectives and help gain competitive advantage in the marketplace. This new research illustrates that IT and business leaders are looking for improved connectivity, increased security, and an effective way to accelerate revenue growth through digital transformation and IT infrastructure modernization,” said John Gallant, enterprise consulting director at CIO.

“The 2023 survey findings demonstrate that colocation is increasingly being leveraged to deploy critical workloads such as artificial intelligence (AI) and machine learning (ML), Internet of Things (IoT) and business intelligence (BI). We are also seeing a resurgence of concerns around physical security and a focus on driving new revenue that is leading 2023 respondents to consider colocation.”

The report found 94% of IT leaders say native, direct connection between colocation data centers and major cloud providers is essential for improved performance, enhanced security, cost savings and hybrid cloud connectivity.

And while performance, scalability, ecosystem, and total cost of ownership are among the most important attributes in choosing a colocation provider, top decision-makers rank security as the most important in 2023.

Ninety-two percent of IT leaders are considering moving critical workloads from public cloud to colocation to accelerate revenue growth and support the increasing need for AI/ML and the survey results show that nearly 97 percent of CIOs have implemented or plan to implement a hybrid cloud model.

One survey respondent who is a senior IT director for a multi-billion dollar industrial products distributor stated: “You want to have the ability to directly connect into your public cloud provider’s ecosystem for performance and scalability. These are important things in comparison to just setting up a tunnel into the cloud provider. There’s a unique competitive advantage because the data can move so quickly between your colocation and the public cloud that, in a lot of instances, especially low-latency transactions, databases, data warehouses, direct connection makes a huge difference in performance.”

According to Matt Senderhauf, VP of interconnection strategy for CoreSite: “The way that businesses connect with each other is constantly evolving, and they require more efficient and automated ways to make today’s digital supply chain work. Similarly, public cloud providers want to deliver their services to customers in a more efficient manner.

“Direct network and cloud connections deployed in secure colocation data centers, like those offered by CoreSite, provide the perfect ecosystem for cloud providers to reach the most end users and for those end users to connect to the public clouds securely, with the highest performance and lowest cost.”

To access the full report, click here.