How Colocation Can Help Partners Boost Profit

By Todd R. Weiss

Colocation services are booming, with estimates of annual growth exceeding 14 percent through 2022, according to recent research.

With that growth continuing, Kirk Killian, president of Partners National Mission Critical Facilities (PNMCF), will speak at the Channel Partners Conference & Expo about how partners can capture and monetize colocation business opportunities. The session, “Mastering Colocation to Maximize Profit,” April 11, is part of the cloud and colo conference track, sponsored by Nextiva.

PNMCF’s Kirk Killian

Killian, who advises clients in selecting and procuring data-center capacity, colocation suites and telecom switch facilities worldwide, has worked at PNMCF with a wide range of clients since 1999, including Walmart, Citi, T-Mobile, Verizon, Southwest Airlines, HSBC, Charles Schwab, Wells Fargo, Marsh McLennan, Western Union, Acxiom, Jack Henry and Chubb/ACE Group.

We spoke with Killian ahead of the event to get insights about the colocation market. His responses have been edited for length and clarity.

Channel Partners: How can partners prepare for the expected continuing growth in the colocation marketplace?

Kirk Killian: Channel partners can become familiar with recent trends in colocation data-center design and delivery, including edge deployments in markets not previously served by large colocation providers. Channel partners can also familiarize themselves with discounted bundled colo and network circuits offered by some interconnection providers [that] are expanding their colocation footprints. They can also learn about and focus on the geographic markets with the most competitive pricing and tax incentives.

CP: Are there steps they should be taking now to help maximize their profit?

KK: When helping clients select additional network POPs (point of presence) or setting up telecom circuits for new IT projects, channel partners can assist in procuring colocation cabinets and cages for the IT equipment supporting those new projects. They can also establish referral relationships with the colocation leaders to get information about specific facility openings and new referral promotions that usually accompany them.

CP: Are there new colocation services they can add to their offerings?

KK: Yes. Colocation providers have broadened their offerings to include more managed services, including private cloud and direct connect into the public cloud providers, plus expanded their geographic availabilities. As the colocation market has matured, the proliferation of additional colo providers – at both ends of the services/pricing spectrum – makes it more likely than ever that a knowledgeable channel partner can match their client’s needs with a tailor-made colocation solution.

CP: How can partners compete in a growing colocation marketplace? How can they stay ahead of the competition?

KK: Certainly, market knowledge coupled with good client service are powerful tools to serve end-user clients well. Understanding the strengths and weaknesses of different colocation providers, and the locations most suitable for client deployments, helps them match specific client projects with …