Why data-centric enterprises need colocation services

June 23, 2023

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Modern enterprises process vast volumes of data, from order and sale records to customer and supply chain information. This requires businesses to have on-site servers or make use of colocation data centres.

The latter is more affordable and comes with built-in maintenance, fire suppression and security features, which is why the colocation sector is booming in South Africa and the rest of the world. A colocation facility provides enterprises with a secure, purpose-built place to store vital data and ICT equipment.

For data-centric companies, these facilities are a cost-effective solution to the problem of processing vast quantities of digital information. The digital age has placed new demands on businesses, so using these facilities or partnering with an ICT provider has become necessary.

To put it simply, data centres and ICT services providers are the keys to unlocking the true potential of a business. They will allow enterprises to maximise the value of their data and put steps in place to become truly data-centric.

Colocation market growing

Africa has one of the fastest-growing colocation and data centre markets in the world, with forecasts predicting over 200% growth within the next three years. Africa’s data centre market is estimated to be worth $5-billion (~R96-billion) in 2025. As more enterprises unlock their data potential, more hyperscalers and data facilities will be needed.

If data is seen as a currency, then the colocation centre is the bank. These facilities are like the secure vault that keeps a company’s information safe with 24-hour security and various protection measures.

Even for a non-data-centric company, colocation services can offer the freedom to do business without having to manage your own IT infrastructure or pay for on-site maintenance and security. A colocation facility will protect your ICT equipment and valuable information, while helping to reduce overheads and the costs of various security provisions.

Trying to handle all the factors that a colocation facility will offer can be very time-consuming to manage, costly to implement and risky without the right knowledge and expertise. When you consider the total cost of ownership for an in-house data facility over the first five years, a third-party colocation service is far more cost-effective.

Key benefits of colocation for data-centric companies

Opting for a colocation service can unlock the following benefits for enterprises:

  • Improved data security - Not only is the data stored in these facilities protected by advanced firewalls and cyber security measures, but colocation facilities offer exceptional physical security, such as 24/7 on-site guards, biometric access control and full CCTV coverage.
  • Greater cost control - These facilities will help you save on maintenance, space, staff and security costs as they are all provided for in the monthly fees.
  • Always-on access - Colocation facilities ensure that your data is readily available, despite load shedding. They are often equipped with battery power systems and diesel generators to provide a seamless failover.
  • Environmental control - ICT equipment can be affected by temperature and humidity fluctuations, so colocation facilities offer essential cooling and humidity controls. In addition, the air conditioning systems also ensure a dust-free environment for your servers.
  • Regulatory compliance - The best colocation facilities will be compliant with international and local standards. Look for a service provider that can offer ISO certifications.

Data-centric companies should consider switching from on-premise hosting to colocation services in order to maximise their potential and unlock their data capabilities. SEACOM Business offers colocation services to enterprises in South Africa. For more information or to get a quote, email us at marketing@seacom.com or leave us a message.


SEACOM owns Africa’s most extensive network of information and communications technology (ICT) infrastructure, including subsea cables and secure internet connections. We offer a diverse range of flexible, scalable and high-quality solutions for businesses that meet world-class standards for connectivity.

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