Hyperscale, M&A, product development, expansions, colocation, CapEx versus OpEx
The recent week saw more out of earnings season, along with some M&A, product development and both hyperscale and data centre colocation expansions.
Oracle Cloud reports early and already has its CY1Q23 results in. Despite headwinds and slowing growth from across its peer group, Oracle Cloud has held steady. The cloud infrastructure base is smaller than other hyperscalers, but is now tracking to over $4b in annual revenue. Enterprises are moving to OCI and certain verticals are showing strong interest in its capabilities. We also take a look at Fastly’s improving performance.
The M&A arena has been slower, but there were transactions of note in the past week. Akamai continues to build out cloud infrastructure capabilities and purchased a persistent storage provider, euNetworks acquired dark fibre assets in Belgium and Coretelligent rolled up another MSP and IT services shop. Meanwhile, AtlasEdge completed its acquisition of Datacenter One.
Product developments continues across the sector. Cyxtera partnered up with Dell Technologies, 11:11 Systems teamed up with Cohesity on the storage side, Aptum released a new VMware-based cloud infrastructure service and Vultr released a free cloud service tier. We look at the implications of Vultr’s move, which is something the sector has not seen in quite some time.
Expansion activity remains on a consistent trajectory. Colt DCS began work on its new London campus, AWS confirmed plans to build a new cloud region in Malaysia and Evolution Data Centres formed a JV to enter the Manila market. Meanwhile, there was activity in Canada as eStruxture opened its new facility in Calgary, Alberta and Acronis set up a new cloud node in Toronto.
The extent to which hyperscale platform use colocation remains a big question that will go a long way to determine the sector’s demand profile. We take a look at what Twitter has been doing, and how that might impact colocation consumption, while discussing AWS’s decision in Malaysia around colocation and look at comments around CapEx and data centre development from Google and Equinix.
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