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Sami Badri, Credit Suisse: “The Network Has Finally Been Optimized”

CAPRE’s 7th Annual Greater New York Data Center Summit was held on April 5, 2018 at Westin New York at Times Square. Above: Sami Badri, Senior Analyst, Credit Suisse presents the keynote address: Cloud Enablers Boosting Enterprise Colocation Growth.
May 15, 2018
by Josh Anderson

NEW YORK, NY — According to Sam Badri, we are in the middle of a great IT architecture shift. And it bodes very well for data center developers and operators. Badri is a Senior Analyst for Credit Suisse, and a frequent contributor at CapRE Data Center Summits. At our 2018 New York Data Center Summit, Badri was the Keynote Speaker, and he had a lot to say about where the industry is headed. Specifically, he outlined four key forces that will accelerate cloud demand in 2018 and beyond, and below we highlight his remarks on the second force — software-defined networking fabrics – as well as some insider intel he was able to collect from Inflect, a data center infrastructure marketplace.

“On architecture enhancements, 90% of Inflect’s engagements are specifically about Hybrid Cloud, and specifically removing workloads from public clouds, because now you can connect to the cloud on-ramps and SDNs in the data centers,” began Badri. “You no longer need to rely on this massive platform to serve your needs at the right cost. You can now move things back in-house, because the network has finally been optimized.”

data center summitNext, Badri shifted to a topic that isn’t talked about as often — latency. “80% of service providers that Inflect is engaged with wants to show connectivity types with associated latency to other end-points,” he shared. “And then, more specifically, to build on that, not every application belongs in the Public Cloud. Not every application needs to be in an interconnection-dense facility. All that we’ve done historically, is look at what is mission-critical or not, and made interconnection-density deployment decisions. But in reality, the messaging has changed.”

Badri then shared that, now that applications have become more sophisticated, more enhanced, and the connectivity in the network is there, you can dramatically change latency requirements, or even how much money you’re spending for low latency. “So, just to give you a quick, tangible example – say you’re an investment bank. And you traditionally needed 100 cabinets of deployment per year,” he ventured.

Sami Badri, Senior Analyst, Credit Suisse participates in CAPRE's Seventh Annual Northern California Data Center Summit, held on February 20, 2018 at St. Francis Yacht Club in San Francisco, CA.
Sami Badri, Senior Analyst, Credit Suisse participates in CAPRE’s Seventh Annual Northern California Data Center Summit, held on February 20, 2018 at St. Francis Yacht Club in San Francisco, CA.

“The simple solution used to be calling up Equinix and say, here are our 100 cabinets, get them deployed,” he recalled. “But now that latency, and application-specific latency, has emerged, now the enterprise engineer and the IT spender can become more sophisticated. He or she can say, I want 20 cabinets in Equinix, but the other 80 can go into Ashburn, where I’ll take the benefits of lower cost and lower power needs. So, the dynamic has completely changed in the sector.”

Finally, Badri pivoted to the third and final revelation from Inflect – the prevelance of international data center expansion. “So you have probably heard about how a lot of US data center operators are acquiring data center operators in Europe and Asia and Australia, etc,” he quipped.

“Well, one key questions that everyone needs to answer is, what are the regulations? What are the requirements? What do I need? How can I potentially go wrong as far network interconnectivity?” asked Badri.

Badri says that the bottom line really is that companies like Inflect are solving the big problem. “They’re matching service provider with IT spenders that are looking for specified needs that comply with their internal mandates,” he explained. “This can be a complete mess, because half the time, an enterprise engineer doesn’t even know who to call to deploy into Brazil or China. Companies like Inflect who have a lot of experience in this are actually simplifying this entire process. This is changing the way that IT spenders deploy their capital. A simple solution today is no longer that Equinix has all of my business, because everything I have is mission critical. Now you can make very intelligent deployment decisions, because of these new forces coming into the market.”

Stay tuned to www.CapREmedia.com for future CapRE Insider Reports covering this keynote presentation by Badri exploring the more forces that will drive Cloud demand in 2018 and beyond. In the meantime, check out previous CapRE Insider Reports, covering his earlier remarks:

 

CAPRE’s 7th Annual Greater New York Data Center Summit was held on April 5, 2018 at Westin New York at Times Square. Above: Sami Badri, Senior Analyst, Credit Suisse presents the keynote address: Cloud Enablers Boosting Enterprise Colocation Growth.
CAPRE’s 7th Annual Greater New York Data Center Summit was held on April 5, 2018 at Westin New York at Times Square. Above: Sami Badri, Senior Analyst, Credit Suisse presents the keynote address: Cloud Enablers Boosting Enterprise Colocation Growth.
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