How are Cloud Providers Playing with Traditional Data Centers? It’s All About Trade-Offs

DALLAS, TX – Hybrid IT is all the rage. But it’s far from a homogeneous trend. That’s why panels about enterprise end-users are a staple at CapRE’s Data Center Summits. And these discussions are never quite the same as before, since this topic is so dynamic. CapRE’s Dallas Data Center Summit in August was no different, and that’s why we invited Emil Sayegh, CEO of Hostway Services, Inc to present an opening keynote presentation, titled The Future of Data Centers: How the Cloud Providers are Playing with Traditional Data Centers. And Sayegh had quite a bit to say about the direction – and reality – of the Cloud.

data center summit“We’re not going to deny the trends, but choices have become daunting, if not confusing,” remarked Sayegh. “Customers are looking at all of this and asking, what do I do? Do I go to AWS? Do I go to Azure? Do I go to Google? AliBaba? Should I do Public Cloud or should I do colo? Should I skip all of this stuff and just go to an app? Should I go with Software-as-a-Service?”

According to Sayegh, there is a whole industry that has emerged to help customers essentially manage their costs and figure out which one of these models is best. “There is a whole cottage industry that has come up to help manage AWS spend and Public Cloud spend and so on and so forth – to help customers decide which one is most cost-effective,” he explained.

“So, I’m here to tell you that it’s all about trade-offs,” he advised. “Just like apartments did not “obsolete” the need to own house, or obsolete the need for hotels, the Cloud is not going to obsolete all of these models. The cloud is not going to obsolete colo. It’s not going to obsolete traditional hosting. And all of these models are going to co-exist. But the Cloud that we’re going to is a multi-Cloud world.”

“The most important thing for us in the room, as all of you are building data centers or running data centers, or are just in the data center industry, is to really understand what goes where,” continued Sayegh. “Just like when you were a teenager, it made sense to live in an apartment while in college, but then as you grew up, it maybe made more sense to rent a home and then buy a home. Right?”

However, Sayegh did offer a bit of qualifier. “And look, these things change. Millennials nowadays are delaying the idea of owning a home,” he mused, concluding this portion of his remarks. “But, as they age, they are more likely to own a home. So the bottom line is that these things are not going to go away. And the Cloud is the same way. It’s not going to replace dedicated, colo, or so on and so forth. It’s just important to understand what goes where.”

For more coverage of this presentation, check out a previous CapRE Insider Report: Hostway Services’ Emil Sayegh: How are Cloud Providers Playing with Traditional Data Centers?