M&A, earnings, hyperscale, video delivery, OTT
It was a busy week, with earnings season underway, activity in M&A, hyperscale growth and more momentum in emerging segments such as managed third party cloud and video delivery.
The week saw a number of transactions. On the SMB side, Canada’s HostPapa acquired two providers as it becomes even more active in SMB consolidation. Meanwhile, infrastructure assets continue to be divested and moved between providers with a better fit and focus. Everstream acquired fibre assets from DataBank and 365 Data Centres picked up a data centre facility from mindSHIFT. Another deal saw Beanfield consolidate a fibre provider in Montreal.
Oracle has been pushing hard in cloud and continued to add new infrastructure locations. Meanwhile, AWS is pushing Outposts into new markets and is doubling down in Brazil. Data centre operators continue to benefit from this growth, though at some point, things may get tighter. We have an interesting data point about one hyperscale provider that could be looking to shorten its list of colocation vendors at least to some extent.
Given that reality, providers in the wholesale data centre game are looking to widen their scope. Vantage pushed its footprint into Canada through M&A and is now doing the same in Europe and this past week acquired Etix Everywhere (details to come). The thinking: the more locations and regions a provider supports (in this case, adding Europe to the portfolio), the more hyperscale business they can get. For the hyperscale provider, this could mean consolidation of providers and some economies of scale as well.
Earnings season is getting underway and we have some details on the results coming from EIG and Limelight. Limelight is an interesting one as it is starting to benefit from shifts in the content and edge markets. Similar momentum is hitting the managed third party cloud market and we have some insights on things at Mission.
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