Vendor Landscape: US Co-location/Managed Services
Learn how to navigate the super-sized US market.
- The US co-location/managed services market has over 430 vendors providing similar offerings. The initial instinct of many IT decision makers is to select the vendor they are most familiar with; however, choosing a vendor based on name alone may not yield desired results.
- Because the US co-location/managed services market is highly commoditized, customers may have trouble differentiating the most appropriate vendor for their needs. Vendors actively attempt to set apart their services from others, when in reality, the differences are quite minimal.
- Many vendors offer only pure co-location or only managed services. This makes it difficult for customers whose needs change throughout the course of their engagement. Customers with pure co-location who wish to add managed services must seek them from a third-party provider, which means entering into additional contracts.
Our Advice
Critical Insight
- Many vendors no longer offer a full spectrum of services. Many have discontinued pure co-location in favour of managed services, or they offer private or public clouds instead of basic co-location. This makes it difficult for first time customers to take the time to comfortably evolve in their engagement.
- Customers must be diligent in their search for a vendor. Selecting based on name and reputation alone is not recommended; use reputation to help create a shortlist, while also identifying the knock-out criteria that is essential for your unique needs. Not every vendor is a fit for every customer.
- Price is not the only differentiator. Have an educated conversation with potential vendors over their engagement practices, their customer service and support, and your specific requirements.
Impact and Result
- Understand the changing US co-location/managed services market.
- Evaluate vendors and services based on your unique requirements.
- Determine which services are appropriate for particular use cases and scenarios.
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