How a Colocation Data Center Plans For Revenue Growth

Joshua Feinberg discusses strategies for colocation data centers to plan for revenue growth.

He highlights the need for data centers to support high-performance computing and AI and differentiates between single-location, multi-location, and nationally/globally scaled businesses.

He emphasizes the importance of understanding client needs, geographic considerations, and business model adaptability.

Feinberg stresses the significance of content and event strategies early in the buyer's journey, noting that over 80% is complete before sales contact.

He also underscores the value of upselling to existing clients and maintaining a competitive edge through continuous improvement and strategic planning.

This video is excerpted from the podcast Ep. #57 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast.

Action Items

Evaluate the company's business model, capabilities, and target client profiles.
Develop a content and event strategy to establish the company as a trusted advisor and subject matter expert.
Build a target account list of companies that need the company's colocation services, both locally and nationally/globally.
Ensure the sales team can have high-level, CTO-level discussions with clients during the sales process to uncover their actual needs.

Outline

Revenue Growth Strategies for Colocation Data Centers

Joshua Feinberg discusses the importance of colocation data centers being able to host clients running AI and high-performance computing, emphasizing the need for power and density requirements.
He differentiates between single-location, multi-location, and nationally/globally scaled colocation businesses, noting that each attracts different types of clients.
Feinberg emphasizes the importance of understanding where a colocation business can succeed and profit, mentioning the need for self-awareness and alignment with ideal client profiles.
He explains the impact of business models and industry considerations, such as compliance demands and multi-location requirements, on a colocation company's target market.

Geographic and Client Size Considerations

Feinberg elaborates on the importance of geographic considerations, including local clients and those needing a presence for latency or regulatory reasons.
He describes the need for specialized marketing strategies for local versus global clients, emphasizing the differences in sales approaches and the importance of virtual tours and product marketing.
The discussion includes the necessity of multiple revenue streams for single-location colocation operators to remain profitable.
Feinberg mentions various ways colocation operators can diversify their offerings, such as becoming marketing agencies, managed service providers, or telecommunications providers.

Content and Event Strategy for Buyer Journey

Feinberg stresses the importance of content and event strategies in the early stages of the buyer's journey, noting that over 80% of the journey is completed before sales contact.
He advises colocation providers to define and research buyer personas to create effective content and event strategies.
The conversation highlights the need for colocation providers to act as trusted advisors and subject matter experts to avoid commoditization.
Feinberg warns that unsophisticated colocation providers risk becoming obsolete if they continue traditional marketing practices.

Product and Service Roadmap for Future Growth

Feinberg emphasizes the need for colocation providers to develop a product and service roadmap to stay relevant and competitive in the future.
He discusses the importance of building a target account list to educate and build trust with the right stakeholders and buyer personas.
The conversation includes the necessity of staying with potential clients throughout their entire journey, from awareness to decision.
Feinberg points out that many colocation providers appear only in the decision stage, missing out on the early stages of the buyer's journey.

Maximizing Revenue with Existing Clients

Feinberg highlights the significant revenue growth opportunity with existing clients if they are reasonably happy and a good relationship is built.
He shares an example of a data center operator in the southwest United States that focuses on self-service sign-ups and quality conversations during onboarding.
The discussion includes the importance of up-skilling sales teams to have CTO-level discussions and explore actual client needs.
Feinberg concludes by emphasizing the need for colocation providers to stay relevant and competitive by adapting to changing market demands and buyer behaviors.

Resources

Watch the full podcast Ep. #57 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast

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