Beckers said some of his clients are with Rackspace, In June, Rackspace began offering colocation services through its channel partners as it expands to fill needs for customers that aren’t ready to give up complete control of their IT infrastructure as they move to the cloud.
“Expenses keep rising,” Beckers said. “Building and maintaining compliant colocation data centers is definitely not cheap. Mainstream vendors with cloud solutions are driving down the price point in the traditional industry race to zero. So margins are getting lower each quarter.”
Cronin said contract flexibility and being able to provide the client with alternative programs that allow them to move their hosted compute to and from the cloud and onsite at their own location are important. The client “seems to be still developing their strategies around hosted, cloud and on-prem and want to be able to have the flexibility with pay as you consume in (a) private cloud (hosted) environment just as you would in the public cloud consumption model,” he said.