M&A, hyperscale, subscale cloud earnings, edge, managed SAP, expansions, geopolitics
It was another busy week across the sector. Earnings season kicked off and the public clouds were the first to report from the Internet infrastructure space. Elsewhere, there was more M&A, capital raises, regulatory developments and expansions into new markets.
The big three public clouds all reported in the last week and continue to push aggressive levels of growth. AWS is seeing acceleration in its growth rate, while Microsoft and Googleare maintaining levels in the 40-50% y/y range. On the subscale side, OVH also reported its results, which provide a good perspective on the overall depth of the market. And we have some data points from Megaport’s recent earnings report.
The strategic side of the business continues to motor along. Lemongrass acquired SAP Azure specialist Wharfedale Technologies, while H5 Data Centers picked up the bulk of vXchnge’s remaining assets, CloudHQ bought a data centre site in NoVA and AtlasEdge added to its footprint in the UK. In other strategic activity, distributed computing enabler Ridge raised $22m in a Series A round and IXcellerate raised additional capital to support more expansions to its footprint in Russia.
The geopolitical landscape continues to impact the hyperscale leasing side of the game and we take a look at the ramifications of the Biden administration’s probe of Alibaba’s public cloud business. Meanwhile, on the regulatory side, the Singaporean government provided more guidance on the new approval process for data centre builds and there are new restrictions being put in place in Dublin, Ireland.
Expansion activity continues to push out on a global basis. DATA4 began construction of its new data centre in Warsaw and Equinix’s JV with GIC will build two xScale data centres in South Korea.
Finally, on the cloud side, Alibaba shared data points about database uptake, Wasabi opened a new cloud storage region in France and we saw more hybrid integrations with Azure. In managed public cloud, Syntax moved to push more into managed OCI.
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