Let us face it: colocation is only for some. More than 99% of all companies in Connecticut are small businesses, with twenty-five employees or less. Very few are candidates for colocation. Smaller companies typically only have a few servers and rarely invest in colocation.

If less than 1% of the companies in the state are potential colocation clients, what are the characteristics of those companies that host their IT systems at our data center? We decided to look at the demographics of our colocation clients to see what they have in common.

Size Matters

Company size is an important parameter in terms of the number of employees. All our colocation clients have more than ten employees. There are a few with less than 25 employees. About 30% have between 25 and 50 employees. The majority, around 60%, have over fifty employees.

Another way to parse our colocation clients is by industry. There are many different industries in Connecticut. Financial services, defense, aviation, insurance, and life sciences are some of the most prominent in the state. About 80% of all colocation clients at CAPS are from one of four industries: investments, business services, consumer products, and software developers. Our clients are distributed evenly across these segments with about 20% of our colocation accounts in these four groups.

Location, Location, Location

Proximity to our data center is another key factor. More than 70% of our clients have headquarters within a forty-five-minute drive of Shelton. Many customers have offices in lower Fairfield County. Our data center is especially convenient for them since their travel to CAPS is in the opposite direction of rush hour traffic.

The structure of corporate IT leadership is also significant. Most of our colocation accounts have a senior IT manager, either a CIO or CTO, on their staff. More than 75% of our clients employ information technology management. The others typically rely on support from Managed Service Providers (MSPs) to oversee their IT systems.

How companies procure Internet connectivity is also a differentiator. CAPS allows clients to order Internet services directly from any of the carriers that serve our region. Colocation customers may also order their Internet bandwidth directly from CAPS. Clients who purchase Internet services from CAPS can benefit from our ability to automatically failover from one carrier to another if service on the primary circuit is interrupted. Though more than 80% of our colocation clients chose to purchase Internet services from CAPS, the option to purchase from carriers is becoming increasingly popular, especially for high bandwidth circuits.

Flexibility, Availability, and Savings

Finally, we can segment our clients based on their primary reason for choosing to move their IT systems to our colocation facility. Downsizing offices and migrating to remote work-from-home operations has put a lot of pressure on IT departments. Since the pandemic, about 50% of all clients have selected colocation to provide more flexibility as they change their office configurations. Another 30% of our clients have selected colocation to increase system availability and/or to improve data security. Finally, about 20% have chosen colocation to save money versus the excessive cost of certain cloud implementations.

Though colocation is not for everybody, we are honored to provide a high availability, secure, and cost-effective home for those who require the special hosting services we offer.