Public cloud, subscale cloud, earnings, edge expansions, Indonesia, M&A, product development

  • May 9, 2022
  • Analyst: Philbert Shih

It was another busy week in the sector with earnings season in full swing, hyperscale edge developments, strategic activity and more developments out of the burgeoning market in Indonesia.

We previously reviewed the cloud results of Microsoft and Google and this week took a deeper dive into AWS. The AWS cloud continues to grow and underneath the covers, scale and profitability is kicking in further. On the subscale side, we analyzed the results coming from Digital Ocean. It did well in the quarter, but suffered material impact from the conflict in Ukraine – a part of the world where it has a lot of customers. Elsewhere, we take a look at Megaport’s results and on the private side, Claranet shared some useful data points about its progress.

Hyperscale clouds continue to extend their footprints and are now pivoting to edge locations. This demand is driving expansion efforts from the likes of FlexentialDataBank and telcos like Bell Canada. We have some of the details.

The M&A arena was somewhat quieter in the past week, but we saw more activity in global data centre markets. In Europe, Digital 9 Infrastructure added a Finnish operator to its portfolio, Equinix closed its deal in Chile and EdgeConneX entered another large APAC market with the acquisition of GTN in Jakarta, Indonesia, along with a significant land bank. Jakarta continues to be at the centre of Southeast Asia’s cloud build-out and we look at recent movements from several operators.

Finally, there were some interesting product developments in the public cloud ecosystem. Google Cloud rolled out a new Media CDN based on YouTube’s platform, 2nd Watch released a new managed services for AWS Elastic Kubernetes Service and Virtuozzo integrated its converged infrastructure platform with Acronis’s backup and protection technology to enable DR services.