UK merger and acquisitions (M&A) activity is at a record high, with the number of completed transactions in 2021 up over a third on the previous year. Mergers and acquisitions provide brilliant business opportunities, from diversifying talent and skills to economies of scale, but maintaining business continuity can be a challenge – especially when it comes to data.
As an independent solution, or as an addition to a hybrid cloud environment, colocation can support critical business continuity for a successful merger or acquisition. Features like reliability, physical security and adaptability are all advantageous in an M&A scenario, and can support service delivery to ensure operational efficiency and customer experience is maintained throughout the merger process.
Business continuity challenges for M&A
What to consider…
A merger or acquisition poses the question of physical consolidation of assets – including data and hardware. The likelihood is that physical premises will be downsized which means existing hardware and infrastructure will need to be evaluated. If on-premises infrastructure is no longer viable you need a solution that can still keep up with your data and storage requirements, in addition to taking on new data and systems.
Similarly, if data is stored in multiple locations, it will be critical for business continuity that all data is identified and then consolidated correctly in order for the merged company to benefit from efficient and accurate information. Compatibility of the merging systems, data compliance, and consistency of data will also need to be considered.
Top 3 benefits of colocation for M&A
Here’s our pick of the top benefits of colocation for mergers and acquisitions, and how they can mitigate those business continuity challenges.
- Space (and cost)-saving data storage
In acquiring or merging with another company you have to assess what is going to happen with the data that is also acquired, and where it’s going to be stored. Archive data, more back up data, additional storage – it all has to go somewhere. Colocation data centres are not only off-premises and therefore saving physical real estate for the company, but can also be scaled easily to accommodate additional software and employees.
With the acceleration of hybrid and remote working as well, new M&A will likely consider further consolidation of physical property in the process to reduce capital expenditure on unnecessary real estate. Therefore, the migration of servers and other network infrastructure to a colocation data centre can provide the scalability, network resilience and security still needed without the associated costs of maintaining on-premises infrastructure.
- A resilient data environment
Colocation is a brilliant solution for those looking for resiliency as they can provide facilities that are protected against power outages, surges, spikes and electrical noise. Tier III data centres like Brightsolid will have multiple paths for power in place, in addition to cooling solutions and SLA-backed availability so you can rely on uptimes of up to 99.98%. For M&A companies relying on successful business continuity during the merger process, the resiliency of colocation is a big plus.
- Expert management and maintenance
During the merger and acquisition process there will be a number of departments, teams, software and systems to manage so time management is critical. Colocation data centres can provide essential expertise to execute data migration and software maintenance and free up resources within IT departments or fill any potential skills gaps. In addition, colocation provides physical site security and access control so you can benefit from enhanced security of your critical data and equipment, without having to invest additional resources, time and capital.
This will be a critical time for organisations to focus on continuity of service delivery, evaluating brand position and restructuring teams, so assurance of data security, management and maintenance through a colocation data centre is extremely beneficial.
Scaling your business with colocation
At Brightsolid we think about M&A as an opportunity for growth and expansion as opposed to purely consolidation. While merging companies will be consolidating assets and aiming for cost-efficiency, there will also be great opportunities for growth – especially if you’re smart with your data and the solutions you choose to invest in.
In response to Covid-19, organisations are looking for more adaptable, scalable and flexible solutions that can respond quickly to changes in demand, behaviour, working styles and global events. M&A deals are at a record high post-pandemic with a ‘strategic need for innovation, technology and growth’ driving M&A deals, and colocation is an easily scalable solution that can facilitate that business growth. Here’s how:
- Increase and decrease servers as needed
- Expand data storage as you grow
- Cost-efficiency – only pay for the space or bandwidth you need
- Complementary to cloud
The foundation of your cloud journey
Colocation is a great working partner for your cloud services, whether you are adopting private cloud, public cloud or a hybrid environment. If your hardware needs a new home or is reaching end of life (EOL), colocation is your stepping stone to transitioning from legacy IT infrastructures and making the most of what the cloud has to offer.
A report of IT priorities for 2022 found that the number of enterprises aggressively investing in digital-ready workplaces is up by 28%. This aggressive investment strategy is definitely a sign of the times and that cloud solutions can add the kind of value that is worth investing in.
Brightsolid’s Scottish data centres can support colocation services and provide a solid foundation for cloud expansion as your business grows. In addition to colocation, we can also support private cloud services from our local data centres and support you throughout your entire cloud journey.