Hyperscale, earnings, edge markets, IPO, M&A, APAC

  • August 3, 2020
  • Source: Philbert Shih

It was another busy week as earnings season kicked off and all eyes have been on the public clouds. Microsoft’s Azure busines had a significant drop in its growth rate, but AWS far less despite its tremendous scale. However, both clouds showed signs that the positive impact from the pandemic environment is not fully offsetting the negative. It was the first full quarter of results during the lockdwon period (globally) and the numbers were telling. We have details.

AWS’s growth means more data centre expansion and this is happening on a global basis. AWS added a fourth availability zone in Seoul, South Korea and is planning massive quantities of data centre capacity in NoVA.

Edge markets continue to see momentum. DataBank expanded again in Salt Lake City1623 Farnam added capcity in Omaha and T5 is building a campus in Atlanta, Georgia. T5’s campus build points to how some of these edge locations are going to cross over and become hyperscale-edge markets. Meanwhile, interconnection nodes continue to populate data centres and NTT partnered with PacketFabric for its US-based data centre footprint.

It was another busy week as earnings season kicked off and all eyes have been on the public clouds. Microsoft’s Azure busines had a significant drop in its growth rate, but AWS far less despite its tremendous scale. However, both clouds showed signs that the positive impact from the pandemic environment is not fully offsetting the negative. It was the first full quarter of results during the lockdwon period (globally) and the numbers were telling. We have details.

AWS’s growth means more data centre expansion and this is happening on a global basis. AWS added a fourth availability zone in Seoul, South Korea and is planning massive quantities of data centre capacity in NoVA.

Edge markets continue to see momentum. DataBank expanded again in Salt Lake City1623 Farnam added capcity in Omaha and T5 is building a campus in Atlanta, Georgia. T5’s campus build points to how some of these edge locations are going to cross over and become hyperscale-edge markets. Meanwhile, interconnection nodes continue to populate data centres and NTT partnered with PacketFabric for its US-based data centre footprint.

The pandemic continues to impact the sector and sales pipelines on the MSP side have stagnated over the last several months. But there are some signs this is shifting as customers start to adjust to a new environment. It may not be a positive and encouraging one, but the outlook that is coming into focus does provide clarity and that can make the difference for businesses making decisions.

Cloud and data centre companies have done well amid the challenging environment and Rackspace will be re-entering the public markets after launching its IPO process.

Back to APAC, there was some M&A in AustraliaHSBC signed on with AWS and Baidu became the latest hyperscale platform in APAC to announce expansion plans that are sure to incur significant infrastructure spending (Tencent and Alibaba recently made similar disclosures). Meanwhile, Hong Kong continues to be a flashpoint politically and we are starting to see some signs of the impact this will have on Internet infrastructure.

Europe has been busy of late, especially around Frankfurt and Paris (and we recently published a deep-dive into the Paris market). But the next tier of markets around FLAP continues to develop. Markets like Madrid, Milan and Warsaw have all seen activity lately and in the past week, Equinix confirmed some more details about its expansion efforts in MIlan. Meanwhile, over in Belgium, Datacenter United secured a new investment.

Finally, there was more activity on the product development side. VMware acquired Datrium to enhance its DR capabilities, Google introudced confidential VMs and AWS launched Honeycode as it targets non-technical end users.

or