M&A, APAC, managed infrastructure, managed cloud, products, on-premise, margins
Another busy week saw a number of notable strategic developments, activity in the Southeast Asia market, product developments at Rackspace and we continue to look at enterprise cloud adoption and track the growth trajectory of public cloud services.
The realignment in the market continues and Sungard’s assets in the Paris market were transacted, with investor Penta Infra picking them up, with plans to expand further. Meanwhile, in APAC, a new operator called Digital Halo, backed by Arch Capital, will enter the Manila market and Singtel and Telkom Indonesia partnered up to enter the overflow market developing in Batam, Indonesia.
Rackspace has had a rough stretch with the hosted Exchange outage, but continues to add to its portfolio. It is pushing forward with managed Google Cloud services and has a new baseline managed service for its managed public cloud services. Elsewhere, Fastly introduced new automation tokens, Zenlayer and Cyxtera partnered for bare metal and interconnection and AtlasEdge partnered with Megaport.
The public cloud market continues to move forward through the current macro environment as enterprises make the transition from traditional on-premise to cloud. We look at the case of Clariant and some of the metrics it shared from the experience. The current slowdown in enterprise adoption is impacting public cloud growth numbers, but it is not going to have a significant impact on operating margin. Some commentators, however, think the latter will happen and we take a closer look at why that is not accurate.
Finally, there were a number of notable hires. DataBank brought in an industry veteran, Digital Realty has a new APAC MD, EdgeUno has a new chief gowth officer for cloud and Google Cloud hired a VP, GM of compute services even as it culls around 6% of its global workforce.
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