OCTOBER 4-5, 2023 TORONTO, CANADA Register Here

Outages, M&A, managed public cloud, hyperscale, APAC, BTS, next-generation hyperscale, earnings

  • June 5, 2023
  • Analyst: Philbert Shih

Long weekend holidays in the US, UK and Singapore saw activity slow, but the sector continued to push forward.

There were a number of notable developments across various pockets of the Internet infrastructure ecosystem. Rackspace suffered another outage that lasted for a day and impacted customers in a number of global data centre locations. The timing could not be worse as Rackspace is still feeling the after-effects of a disastrous outage of its hosted Exchange email service.

There was some M&A activity and both transactions we tracked were in the managed public cloud category, though the buyers came from different angles. CloudHesive, a managed AWS shop, acquired a similarly focused provider called Eplexity, while Bell acquired FX Innovation in Montreal as it looks to push deeper into managed services and expand its managed public cloud expertise in Canada.

There were also a number of hyperscale data centre developments. AirTrunk completed a 20MW expansion in MelbourneSTT GDC released plans to build a large campus in the PhilippinesPrinceton Digital Group entered the market in Johor, Malaysia and CyrusOne and KEPCO formed a JV to develop hyperscale data centres in Japan. Hyperscale data centres continue to involve power and real estate entities in a more meaningful way as requirements expand and in the process, mandate new resources and skill sets from operators and providers. We saw this dynamic at work with the recent CyrusOne deal signed with PowerHouse Data Centres in Ashburn, Virginia.

In other hyperscale developments, Quantum Loophole continues to make progress with its massive fibre build in Maryland connecting to VirginiaQScale signed an anchor tenant in Quebec City and Google Cloud launched a new cloud region in Doha, Qatar. And while it may have flown a bit under the radar, a very senior executive responsible for AWS’s data centre operations abruptly departed. We take a look at some of the implications for the data centre colocation business.

Finally, we took a closer look at the recent results coming from Akamai, with insights about the cloud computing division, enabled by the Linode business.