Hivelocity Cements IaaS Leadership with Major Colocation Acquisition from Digital Realty
In a significant move reshaping the Infrastructure-as-a-Service (IaaS) landscape, Hivelocity has dramatically expanded its global presence by acquiring the retail colocation business from Digital Realty, one of the world’s largest data center providers. This strategic acquisition is more than a simple expansion; it marks a pivotal moment for both companies and signals a new era of opportunity for businesses seeking robust, scalable infrastructure solutions.
This landmark deal effectively triples Hivelocity’s data center footprint overnight, expanding its services into nine new U.S. locations. The company now offers its comprehensive suite of services in major markets including Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, Phoenix, Seattle, and Silicon Valley, solidifying its position as a dominant force in the industry.
A Strategic Partnership Benefiting Both Sides
At its core, this move represents a powerful strategic alignment. For Digital Realty, the sale allows the data center giant to sharpen its focus on its core business: providing massive-scale, wholesale data center solutions to hyperscale clients like major cloud providers and large enterprises. By divesting its retail colocation arm, Digital Realty can streamline its operations and concentrate on the market segment it serves best.
For Hivelocity, the acquisition is a calculated step toward becoming the world’s premier IaaS provider. By taking over the management of these colocation customers, Hivelocity not only gains a substantial new client base but also deepens its partnership with Digital Realty. This synergy allows Hivelocity to leverage world-class facilities while delivering its own specialized services and renowned customer support.
Key highlights of the expansion include:
- Massive Scale Increase: The acquisition triples Hivelocity’s data center locations, providing customers with unparalleled geographic diversity.
- Enhanced Service Offerings: Former Digital Realty colocation customers now gain direct access to Hivelocity’s full ecosystem of solutions.
- Strengthened Market Position: Hivelocity is now one of the largest and most capable bare metal and colocation providers in the world.
What This Means for Businesses and IT Leaders
This development brings tangible benefits to both existing and future customers. For the businesses transitioning from Digital Realty, the change offers a direct pathway to a richer portfolio of services without needing to physically migrate their hardware.
These customers can now seamlessly integrate Hivelocity’s industry-leading solutions, including instant-provisioning bare metal cloud servers, private clouds, and advanced network services, all from a single provider. This creates a unified infrastructure environment that is easier to manage, scale, and optimize. New customers, in turn, benefit from a provider with an even broader reach, ensuring they can deploy resources closer to their end-users for reduced latency and improved performance.
Actionable Advice: Navigating Your Infrastructure Strategy
This industry shift provides valuable lessons for any organization planning its IT infrastructure. Here are a few key takeaways:
- Evaluate Your Provider’s Core Focus: Understand if your infrastructure provider is a specialist in your specific needs (like retail colocation and bare metal) or a wholesaler focused on large-scale deployments. This acquisition highlights the value of partnering with a specialist who can offer tailored support and a dedicated service ecosystem.
- Prioritize Integrated Services: Managing multiple vendors for colocation, bare metal, and cloud services adds complexity and cost. Look for a provider that offers an integrated platform. A unified solution simplifies billing, support, and technical management, allowing your team to focus on innovation instead of vendor management.
- Geographic Footprint is Critical: In a global economy, the physical location of your servers matters. A provider with a wide and strategically located data center footprint enables you to improve application performance, enhance disaster recovery capabilities, and meet data sovereignty requirements.
Ultimately, Hivelocity’s acquisition is more than just a headline—it’s a strategic realignment that delivers greater choice, capability, and value to the market. By combining the world-class facilities of Digital Realty with its own specialized IaaS solutions, Hivelocity is poised to redefine what businesses can expect from their infrastructure partner.
Source: https://datacenterpost.com/hivelocity-expands-digital-realty-partnership-with-colocation-sale/
