Peter Radizeski is Founder and President of RAD-INFO INC. He is an accomplished blogalyst, speaker, author and consultant. He has helped many service providers with sales training, marketing, channel development and business strategy. He is a trusted source of knowledge about the telecom sector. His honest and direct approach make him a refreshing speaker.

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Data Centers are Hot

The Internet lives in a Hotel in NYC. Nice look at a carrier hotel.

“The third party data center market is in continual growth mode,” JLL said in its 2015 report on data centers in North America. “Data centers are key economic drivers in markets within which they operate. They generate new jobs, involve significant capital investment and help strengthen the overall business environment.” [Forbes]

Switch from Vegas has been in negotiation with Michigan for tax breaks to build a data center in the state. I don’t quite understand the tax break thing. You want their tax money. Data Centers are not a bunch of jobs. And they suck electricity up — on an electric grid that is old and stretched thin. But I understand the need for the Economic Development team to have a win. ED teams count every job the same. It is antiquated thinking. Government needs to be disrupted by the Internet.

CyrusOne, a data center company majority owned by Cincinnati Bell, has opened the first phase of another data center. This phase covers “55,000 square feet, in its new 120,000 square foot facility in the Met Center just west of Austin-Bergstrom International
Airport. The building will eventually offer 18 megawatts of critical power capacity as well as 25,000 square feet of Class A office space.” [BizJournal]

Will Public Cloud eat up Enterprise Cloud? In a way yes. InfoWorld looks at the way scale defeats building your own. Amazon, Google, and others buy SO many servers – and have so much experience building mass computing environments that their costs are considerably less than what an enterprise can build it for.

“In the future, enterprises may be as unlikely to stand up their own data centers as build their own power plants…. How any cloud vendor can hope to compete with the “relentless economies of scale” of the mega-clouds. … Their variable costs decrease due to their ability to purchase in larger quantities; their fixed costs are amortized over a higher volume customer base; their relative efficiency can increase as scale drives automation and improved processes; their ability to attract and retain talent increases in proportion to the difficulty of the technical challenges imposed; and so on.” [InfoWorld]

“A typical AWS data center includes 50,000 hosts or 1,000 racks… The idea that [enterprises or even start-up cloud operators] can operate at anywhere near the cost of public cloud mega-vendors is, increasingly, crazy talk.”

Why all the data center talk? Well, I have been spending more time with my buddy COLOTRAQ CEO, Dany Bouchedid. We talk about cloud computing – IAAS, PAAS – data center infrastructure (DCI) and colocation. Colo is my favorite service to sell as an agent. Yet clients today want colo as well as public cloud access and all of that integrated into their network. The enterprise will have their own servers, AWS, Azure, Google, and Microsoft – all of that will have to be On-Net. It is that kind of network I like designing.

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    Data Centers are Hot

    The Internet lives in a Hotel in NYC. Nice look at a carrier hotel.

    “The third party data center market is in continual growth mode,” JLL said in its 2015 report on data centers in North America. “Data centers are key economic drivers in markets within which they operate. They generate new jobs, involve significant capital investment and help strengthen the overall business environment.” [Forbes]

    Switch from Vegas has been in negotiation with Michigan for tax breaks to build a data center in the state. I don’t quite understand the tax break thing. You want their tax money. Data Centers are not a bunch of jobs. And they suck electricity up — on an electric grid that is old and stretched thin. But I understand the need for the Economic Development team to have a win. ED teams count every job the same. It is antiquated thinking. Government needs to be disrupted by the Internet.

    CyrusOne, a data center company majority owned by Cincinnati Bell, has opened the first phase of another data center. This phase covers “55,000 square feet, in its new 120,000 square foot facility in the Met Center just west of Austin-Bergstrom International
    Airport. The building will eventually offer 18 megawatts of critical power capacity as well as 25,000 square feet of Class A office space.” [BizJournal]

    Will Public Cloud eat up Enterprise Cloud? In a way yes. InfoWorld looks at the way scale defeats building your own. Amazon, Google, and others buy SO many servers – and have so much experience building mass computing environments that their costs are considerably less than what an enterprise can build it for.

    “In the future, enterprises may be as unlikely to stand up their own data centers as build their own power plants…. How any cloud vendor can hope to compete with the “relentless economies of scale” of the mega-clouds. … Their variable costs decrease due to their ability to purchase in larger quantities; their fixed costs are amortized over a higher volume customer base; their relative efficiency can increase as scale drives automation and improved processes; their ability to attract and retain talent increases in proportion to the difficulty of the technical challenges imposed; and so on.” [InfoWorld]

    “A typical AWS data center includes 50,000 hosts or 1,000 racks… The idea that [enterprises or even start-up cloud operators] can operate at anywhere near the cost of public cloud mega-vendors is, increasingly, crazy talk.”

    Why all the data center talk? Well, I have been spending more time with my buddy COLOTRAQ CEO, Dany Bouchedid. We talk about cloud computing – IAAS, PAAS – data center infrastructure (DCI) and colocation. Colo is my favorite service to sell as an agent. Yet clients today want colo as well as public cloud access and all of that integrated into their network. The enterprise will have their own servers, AWS, Azure, Google, and Microsoft – all of that will have to be On-Net. It is that kind of network I like designing.

    Tags: , ,
    Related tags: , , , , ,

    Related Entries

  • Lessons from the NGC15Dec 10, 2015
  • COLOTRAQ Talking About DCI-TRAQAug 31, 2015
  • What Happened in Vegas?Mar 19, 2015
  • IPR Secure’s Channel Chief on Merger and MoreMar 06, 2015
  • Data Center Trends with COLOTRAQMar 04, 2015
    COLOTRAQ.png
  • The M&A Picks Up SteamJan 14, 2015
    mergers-ma.jpg
  • The Expo News UpdateSep 09, 2014
    microcorp.png
  • Some Data Center M&AJul 07, 2014
  • Telx Says They Love the ChannelMar 05, 2014
  • Peak10 For SaleJan 24, 2014
  • TrackBacks
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    End of Year News Tidbits (Part 2425)

    As we end this year, there has been a flurry of “news”.

    Sprint gave its employees layoffs for the holidays. Despite the cash from Softbank, Sprint is losing ground to T-Mobile and has little hope of catching up to Ma and Pa Bell (ATT and VZW). It isn’t about price as much as it IS about a quality network. Access to exclusive phones doesn’t hurt either.

    In positive news for this cellco, Sprint teams with Conversocial to become the first US telecommunications brand to introduce Messenger as part of their social care strategy.

    Lots of throttling claims from YouTube, DISH and others to both wireline and cellular network operators. It figures.

    It leads to an interesting question: Should ISPs filter the Internet for their customers?

    Broadband use is down from 70% to 67% in homes in the US according to Pew. They probably can’t afford it.

    Lightower Fiber Networks has acquired network assets from HarborLite Networks, based in Baltimore, Md., which includes fiber in downtown Baltimore. Always good to buy fiber density in an NFL city.

    Microsoft acquired Talko. Dan York talks about what that means here. Basic problem with every new talk or text app: You need network effect for it to work. Hyper-crowded market right now. And no one has a Snapchat problem.

    Altice is trying to buy both Suddenlink and Cablevision. New York State authorities aren’t buying their story about network upgrades. For once, consumer good IS being looked at. The authorities have to know that once they say YES, there is no way for them to enforce acquisition conditions. And every major acquisition that has come with conditions has had the buyer skirt them.

    ShoreTel is buying Corvisa out of the UK and Netherlands for $8.5M.

    IBM and BellSouth had a short history of working together. Now IBM is taking over AT&T’s Managed Hosting Services. If you can’t be good at it, outsource it!

    Happy Holidays!

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    Sliding into 2016

    As we slide into 2016, the web is full of predictions. (Bill Miller’s UC predictions are here.)

    2015 consisted of M&A, musical chairs and hacks. Next year, more of the same.

    We are ending 2015 with a revelation that Juniper’s software has had malicious code in it for a couple of years

    “At the Connected Health conference, [director of Verizon’s RISK Team] revealed that it had investigated 1,931 incidents affecting 392 million records in 25 countries.” [source]

    TMC CEO Rich Tehrani has a report of cyber attacks in the Greater NYC area.

    IoT will only make matters worse when it comes to hacks. Every drone is a possible hack. We still take security for granted – or worse as something to not worry about. (When was the last time you changed any passwords?)

    Next year, we will have the Dell-EMC merger and most likely the Charter-TWC-BrightHouse merger. This will result in massive layoffs and worse customer servcie. For the Tampa Bay area, both ISPs will be changing in 2016 as Frontier takes over FL, CA and TX from Verizon in a $10B deal. Broadband is going to suck at home in 2017.

    RLECs are consolidating almost as fast as the VoIP companies. Both for the same reason: survival!

    RLECs have gone through a massive reform of USF, which has upended their business model. Telco TV, Hosted VoIP, fiber to the tower and rural cellular are the means to which RLECs are hoping to survive, but consolidation is always viewed as a way to scale and be profitable.

    FCC Rural voice rules will also hamper them a little in 2016.

    Data center is still hot. Private money is buying up data centers for their REITs. That won’t change as cloud services are housed in data centers. And it looks like where the ROI is right now. Plus it looks a lot like real estate – and old money understands real estate!

    Cablecos will be pushing hard for DOSCIS 3.x and to take even more market share from the ILECs in both the residential and the SMB markets. All about broadband now. It might also be about threatening to rollout MVNOs but we’ll seeif they are serious. Quad plays haven’t really burned up the market yet.

    Internet Unicorns will still be the talk of the town – until they try to IPO!

    Look for more strategic partnerships between CLECs and IT specialty shops, especially security, due to the increase in hacks and concerns (and liability).

    Lastly, software companies, especially UC shops, will add more functionality to their software offerings in the way of integration, analytics and BPI (business process improvement). See more about this at ITEXPO.

    BTW, the Merger Between Alteva, Inc. and MBS Holdings, Inc. (Momentum) has Completed according to an email this morning. I was told that shareholders at Alteva wouldn’t vote Yes for this due to the share price offer. I guess that person was incorrect.

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    Thank You

    Just a quick note to say thank you for reading. It is always a pleasure to hear from people at shows or by email that have read my blog. I appreciate – even if you don’t agree with me.

    As the year closes it a time for reflection and goal setting. I am less than 20 posts from #2000 on this site, so that will likely happen at ITEXPO in January in Lauderdale, FL.

    Set your sights high in the sky for 2016. Happy New Year!

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    Apex Technology Services
    Sponsored by Apex Technology Services, a leading IT Services company