Equinix, Savvis hold dominant spots in U.S. colocation market
These two providers continue to see positive colocation and managed service earnings results.
In Q3 2013, Equinix's recurring revenues, which consist of colocation, interconnection and managed services, were
At the same time, Equinix and Savvis continued to enhance their offerings and reach throughout 2013.
Equinix opened eight new Solution Validation Centers, which provide a demonstration and proof-of-concept testing environment for new and existing customers to measure the performance of application platforms, in key markets U.S. markets such as Ashburn (Washington, D.C., metro), Miami, New York, and Silicon Valley.
But retail colocation is only one part of the market picture. Digital Realty Trust and DuPont Fabros are driving the burgeoning wholesale market. Wholesale colocation revenues, reports Synergy, rose to $700 million in 2013.
A big factor in driving new colocation growth will be the continued adoption of cloud services.
"Looking ahead, the adoption of cloud infrastructure services will act as a damper on some aspects of the colocation market, while stimulating others," said John Dinsdale, chief analyst and research director at Synergy. "We forecast that U.S. colocation revenues will grow by a CAGR of 7 percent over the next five years."
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