Cloud vs Cloud | DataBank’s Brandon Peccoralo Talks Changing Products and Adaptive Strategies at CAPRE’s Atlanta Data Center Summit

ATLANTA, GA — In the infancy of the data center space, deals were 1-2 megawatts. But with the advocacy of hyperscale and the Cloud, deals have become larger and more complex, and in many ways, the products that data center operators offer has completely evolved. So CAPRE’s Fourth Annual Data Center & Cloud Infrastructure Summit dove into the who, what, why and where with the panel “State of Multi-Tenant Data Center Leasing: Best Practices for Brokers, Marketers, and Attorneys as Deals Grow in Size and Complexity.” Halfway through the panel, Moderator Brian Klebash, Founder and CEO of CAPRE, asked his panelists to talk about the importance of Cloud on-ramps, which led to panelist Brandon Peccoralo, General Manager at DataBank offering some astute analysis on the the various “Cloud” products out there.

“I’ve been at three different data center companies, from 27,000 person data center firms to a 300 person shop,” shared Peccoralo. “And at each facility, we’ve always gone after Megaport. It’s kind of a necessary evil to give our customers the on-ramp to AWS. But I think it’s important to differentiate what the word “Cloud” means. So the Public Cloud, with AWS, Microsoft Azure, Rackspace, Google, IBM, that’s a public utility. You have to understand the technology that operates on the back-end. It’s not Hyper-V, it’s not VMware. They have different container systems, like Kubernetes, Docker, you name it. That’s a lot of development, it’s a lot for mobility.”

According to Peccoralo, if you’re going to sell your company in three to five years, you’re going to want to deploy a lot of your workload into Amazon Cloud, so that you have that mobility for a purchaser. “As a sales organization, we’re a SalesForce company. And that makes us more mobile. But a lot of companies still have men and women that are wanting to own their own hardware, wanting to own VMware licensing, patching their own operating systems, and Disaster Recovery as a Service (DRaaS),” he explained.

“Then folks like us, that own these services, we see another definition of the Cloud. We see the services piece, which we also call the Cloud – the Private Cloud and the Public Cloud,” continued Peccoralo. “And that has nothing to do with the same technologies that Amazon has. So we offer our own, Flexential and T5 do as well, flavor of what we call the Cloud. That might be taking over your activity, your Actifio, your CommVault, your Veeam, your Zerto. We can do Disaster Recovery as a Service, we can do Cybersecurity as a Service, or DDoS mitigation, And those services are completely different from what you’re getting in the Public Cloud. We can offer colocation, and we can offer “our Cloud” and then we have to offer the on-ramp to the Public Cloud.”

Brandon Peccoralo, General Manager, DataBank

In short, there’s a line in the sand about what the Cloud truly is. “It’s just somebody else under somebody else’s management,” he asserted. “And so when we look at slides about colocation at Equinix, they’re growing. They’re widening their footprint, they have their own business exchange fabric on the network side, and then they also have that same fabric exchange their Amazon footprint. It’s the same thing with CoreSite and Digital Realty, who have those on-ramps. But they don’t have services.”

“So yes, I may not be doing these megawatt deals like Equinix is everyday, but our revenues are in sophisticated managed hosting and sophisticated services,” concluded Peccoralo. “So you can see the private sector like TierPoint, Flexential, Cyxtera, we’re all adapting, scaling, and saying, What can we take off of your plate, Mr. or Mrs. IT Director, that won’t put your job in jeopardy? So yes, we’re threatened by the Cloud and yes, it’s “eating” the proverbial lunch that’s on our table. But we also have our own little niche that gives high margins and cash-flow positivity in “the Cloud.””

For more coverage of this panel, check out previous CAPRE Insider Reports:

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