Sami Badri Talks the Advent of 5G at Seattle Data Center Summit: Bandwidth Taking Leaps and Bounds into Next Iteration
by Josh Anderson
SEATTLE, WA – 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 Fourth Annual Greater Seattle & Pacific Northwest Data Center Summit, where he dove deep into a new area of research for him – 5G. Below, we highlight the introductory portion of his address, which outlined his methodology and approach.
“We’re going to get right into this,” began Badri. “Just to give everyone in the audience a bit about background about my role and my research on 5G, this is actually the first time I’m presenting my actual views from a research platform perspective on 5G. I spend almost the majority of my time on either Hybrid IT or Cloud Computing, but at some point the two are definitely merging together. Which is why I thought this presentation would be very timely.”
Next, Badri quickly covered his agenda for the day. “I’ll give you a slight introduction to how I look at the world and the technology supply chain. We’re going to go into some 5G quick facts – not to go into too much technological detail though. Then we’ll segué into how 5G and data centers are related, and then we’ll talk about some of the dynamics of the Q3 2018 earning results which just wrapped up a few weeks ago. Then we’ll talk about the timing of 5G with other technological trends, and I’ll open up the floor for Q&A,” he outlined, before explaining his research approach and how 5G ended up on his plate.
“I cover communications equipment on the left, which covers companies like Cisco, Juniper and Arista. And then I cover communications infrastructure on the right – that includes companies like Equinix, Switch, and Digital Realty,” explained Badri. “A lot of analysts on Wall Street do not actually cover these sectors together. The reason for that is that the financial models which actually drive these stock prices are very uniquely different. So it’s almost like if I asked an industrial engineer to do an electrical engineer’s job. That’s kind of like how the models are structured. They’re just totally different breeds of analysis.”
However, according to Badri, there is a very clear and present reasoning for molding these two sectors. “I generally cover these two sectors together because you can really extract insight from looking at two different layers of the technology supply chain, instead of looking at it from one specific vertical,” he shared. “That’s the case that I make and it allows me to look at data center trends, technology trends, telecom trends, etc. it really helps the research process.”
“So to briefly touch on 5G, I’m sure a lot of you have heard what it is. But to keep it very simple, 5G is the next telecommunications standard,” asserted Badri, diving right into the meat of his presentation. “The key purpose of this is to have access to significantly more broadband or data. The consumption of phones and data is actually pretty stepping up pretty materially over the next couple of years. And to give you guys an illustrative example, historically, to download 5 gigabytes of data, it would take you maybe one hour. That is actually shifting down to a couple of seconds. That is one of the key objectives of what 5G is trying to achieve.”
“To give you guys an example of how we’re going to do that, I’ll show you guys a progression,” he continued, pointing to the slide below. “You’ll be able to achieve 10 gigabyte per second of download speed on the wireless level. And the prior generation, in 4G, that was significantly less, at 100 megabytes per second. So the key here is that you’re essentially leaping through telecommunications standards from a broadband perspective, and that’s fairly significant.”
Stay tuned to future CapRE Insider Reports for more from Badri on the advent of 5G. Check out previous CapRE Insider Reports covering Badri’s remarks at other CapRE Data Center Summits:
- Sami Badri Tells the 2017 Narrative at Leesburg Summit, Brings 2020 Into Focus
- Key Growth Drivers: Sam Badri Talks SDN On-Ramps and Industry Partnerships at Boston Data Center Summit
- Credit Suisse’s Sami Badri at NYC Data Center Summit: Don’t Forget the Tier II Hyperscalers