CAPRE Boston 360: Landmark Dividend’s John Regan Says Enterprises are Marching Toward Cloud-First Approach, with Investment Opportunities in Partial Sale-Leasebacks on the Rise
BOSTON, MA — CAPRE’s recent Boston & New England Data Center & Cloud Infrastructure Summit kicked off with a bang – a panel discussion titled “Greater Boston Data Center Market 360: What Firms are Actively Developing, Investing, and Why? And What Type of Product (Hyperscale, Colocation, Enterprise, or Edge) is Being Delivered?” And Jim Buratti, Account Executive at Schneider Electric, who moderated the opening panel, started off with a big question.
“Let’s talk about the big guys – the big three, Amazon, Google, and Microsoft,” he suggested, before asking a handful of questions. ”Are those guys going to take over the entire business and leave nothing left for the entire business? Are we only going see the big three and not see any small data center anymore? Look at other industries, like automobiles, or the mobile business – there are always only three or four. And regardless of the answer, are they too big? What’s the impact of their size on the market?”
John Regan, Chief Technology Officer at Landmark Dividend offered his take, being sure to keep an eye on the little guys. “I think we’ve all seen how the hyperscalers have really been sucking all of the oxygen out of the marketplace for a lot of lower tier players,” he replied. “If you talk to some of the enterprise IT guys out there, they’re marching forward with a Cloud-first type of approach. I’ve heard that so many times. When they’re evaluating where to put an application, where to put servers, storage, etc., it’s always Cloud-first type of approach.”
“And I shouldn’t say it’s always that, but that’s how things have been progressing over time,” he clarified. “The focus [used to be] on the enterprise data center having control and being able to put your arms around your servers and the data, and being able to control security around those systems. And with the progression of the Cloud and addressing of security-related concerns, we’ve been able to see that type of shift toward enterprises adopting a Cloud-type of platform. And we’ve seen that impact over time, and I believe that it’s going to continue down this path of a Cloud-first type of approach.”
Having said that, Regan then referred to previous comments by co-panelist Rashad Kawmy, Partner at Boundary Street Capital, who had earlier said as 5G comes online, the industry will probably expand toward the Edge, which is probably less attractive to the Amazons and the Googles who are really scales-of-economy players. “That will open up a second wave of transformation to the global network,” shared Kawmy.
“Rashad brought up a very good point of 5G and IoT, and the prospective impact of that on the marketplace,” mused Regan. “I think we’re seeing some of that today already, and the prospect is pretty good for getting out to Edge data centers, and continuing to build on-demand in that space. I think that prospects going forward are pretty good across all of those different platforms – the Edge and hyperscale. It’s very likely that we are going to continue to see a distribution from the enterprise level and into both of those different areas.”
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