CAPRE Exclusive | The Cloud On-Ramp Game: Clients are Changing, Deals are Changing, But It’s All About Connections & Flexibility
BOSTON, MA – CAPRE’s Data Center Summits are all about connections – both figuratively and literally. That’s why panel discussions about cloud on-ramps and connectivity have become a staple of CAPRE’s events. CAPRE’s Third Annual Greater Boston Data Center & Cloud Infrastructure Summit was the latest iteration of that panel, and it kicked off with an evergreen question that goes beyond the Cloud on-ramp crowd’s day to day. John Fidler, Manager and Solutions Engineer at INAP asked one of his panelists (and a co-worker) an evergreen question.
“I think it’s pretty common anymore that no one is talking about straight hardware anymore. We’re talking about business problems and solutions for our customers, and focusing those things on application tiers, and how those things can be migrated to the Cloud, whether that’s in piece-meal or across the board,” remarked Fidler. “So what do you think we’re talking about on a day-to-day basis?”
“For many of our clients, as I’ve been walking and wandering around the data center lately, the profile has changed within the last decade as to what you might have found within the data center,” replied panelist Dan Gauvin, Senior Director at INAP. “We’re seeing a lot of clients that are actually purveyors of the Cloud. We’re seeing people that are software companies, that are building their Clouds in a colocation environment. we’re seeing e-commerce companies that are building their platforms. We’re seeing ad-tech, technology companies, and we’re seeing quite a bit of gaming, due to INAP’s performance – gaming-related technologies.”
“And then the rest of the environment, is when you get to the more “normal” or mid-market clients, where some of them might still have that on-premise presence,” Gauvin continued. “Again, ten years ago, they would have been talking to us about, hey, let’s move into a data center. And that’s the transformation. to move it from their data center to our center, to now be having conversations about taking some of that, with multi-Cloud solutions, with that client. they’re leap frogging some of their environment. not going from on-premise to colocation, but going from on-premise to the Cloud or on-premise to Managed Hosting.”
“Maybe they’re already going to be dabbling with some hyperscale, and some of their legacy applications need to go into colocation, because that’s the only place that can really move and run those applications for the time being,” he mused.
Next, Gauvin shared that there are also many conversations about things like revenue portability – which he never talked about in the past. “When we’re doing contract negotiations, we’re actually having conversations about having some transformational flexibility,” he shared.
“So if, mid-contract, somebody decides that they don’t need as much of the colocation space anymore, and they want to move some of the serviced toward either managed hosting platforms, virtual clouds, or some hyperscale environments, we’re able to accommodate them with that transformation road map, and have it be contractually set up so that they have the flexibility to do that, when they’re ready to do that,” he explained, concluding his remarks.