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Key Growth Drivers: Sam Badri Talks SDN On-Ramps and Industry Partnerships at Boston Data Center Summit

Sep 6, 2018
by Josh Anderson

CAMBRIDGE, MA – CapRE has often welcomed Sami Badri, Senior Analyst at Credit Suisse to speak at our Data Center Summits, in which he has recently focused on outlining a handful of forces that will accelerate cloud demand in the future. Fortunately for us, Badri was willing to serve as Keynote Speaker at CapRE’s Second Annual Boston and New England Data Center Summit this month, and while providing remarks, he provided an update on the central theses to his research. Below, we highlight his remarks on two driving forces: software-defined networking on-ramps and industry partnerships.

“The second key vertical is software defined networking on-ramps,” began Badri. “It’s very similar to the public cloud on ramps, except the one big difference is that they specialize in just carrier connectivity across the web, in just one simplified workload, which is a cloud workload.”

data center summitAccording to Badri, the two big players are MegaPort and PacketFabric. “Even PacketFabric has dramatically stepped up its number of on-ramps because they identified a massive monetization opportunity,” he explained. “And just to show you how the numbers really look across the company, the only frame of reference I actually have is MegaPort. And for a period of time, with the more on-ramps that they started rolling out, their metrics, or their key performance indicators, started accelerating.”

“They’re in a period where they’re trying to pick it back up,” Badri continued. “But I would say that they’re going to figure it out, although they’re not at their full tail-wind or full stride just yet. But I do think that this Cloud on-ramp or software defined on-ramp theme is going to continue to be very prolific, and you’re going to see these types of companies continue to pop up all over the place, just as a function of the monetizing such a rich enterprise-customer base.”

Next, Badri moved to his third key vertical. “You’ve always had partnerships in the sector. You’ve always had multiple introductions, multiple announcements, etc. that’s great,” he shared. “But I think that the one big difference is that the magnitude of the partnerships has never been this big. You’ve never had a company like Equinix sign up specifically with Verizon. Or Digital Realty with Oracle.”

“All of a sudden, you can look at the data center providers, and look at their enterprise values – essentially the values of the company – these are very small compared to the right side of the chart, which is the strategic partnerships,” he outlined, referring to his graphic.

Above: Credit Suisse's Senior Analyst, Sami Badri, captured the attention of this Cambridge, MA audience with captivating insight and analysis. CAPRE's Greater Boston & New England Data Center Summit was held on June 19, 2018 at Harvard Law School in Cambridge, MA.
Above: Credit Suisse’s Senior Analyst, Sami Badri, captured the attention of this Cambridge, MA audience with powerful insight and analysis. CAPRE’s Greater Boston & New England Data Center Summit was held on June 19, 2018 at Harvard Law School in Cambridge, MA.

Concluded Badri, “I think this going to be a key enabler in our sector, because all of a sudden, the entire technology eco-system around the world has decided, why are we in the business of multi-tenant data centers? We can completely outsource this to the specialists and the experts that are very good at it. and I think this is a testament to the sector and that’s why it’s going to continue to grow and essentially keep clipping on with gains.”

For more from Badri at CapRE’s Boston Data Center Summit, check out previous CapRE Insider Reports covering Badri’s earlier remarks:

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