CapEx, infrastructure savings, earnings, expansions, enterprise cloud wins, M&A
It was a busy week that saw more results coming out of earning seasons, cutbacks at big tech that have implications for data centre infrastructure, more data centre expansions on a global basis, enterprise cloud wins and some M&A.
Earnings season is in full swing and we took a closer look at the results coming from Digital Ocean, Rackspace and Digital Realty. The three play in very different parts of the market and delivered varying results. Digital Ocean is still growing steadily and Digital Realty continues to show strong leasing performance. Rackspace, however, has seen growth slow as it deals with the ramifications of a tougher macroeconomic environment and internal restructuring.
Larger technology firms continue to make cuts and now some of them are looking at infrastructure as a way to find cost savings. While hyperscalers like AWS, Azure and Google Cloud do not appear to have cuts in the plans, the likes of Meta and Twitter are considering it. We look at why dramatic cuts may be unrealistic and possibly detrimental to Twitter, while Meta seems to be taking a more long-term and deliberate approach to the question.
Data centre expansion continues to push forward on a global basis. ESR started a project in Japan, Vantage Data Centers opened facilities in Germany, while STACK Infrastructure, QTS and Prime Data Centers were active in various US markets.
Cloud growth is increasingly about existing customer expansion and this is happening more often in the enterprise space. Renault Group in France is expanding its use of Google Cloud and Formula 1 is doing the same with AWS.
Meanwhile, there was more M&A on the MSP and managed public cloud side of the market. Node4 in the UK acquired Tisski to enhance and expand its Microsoft practice, while private equity took a stake in an AWS shop in the Bay Area called nClouds.
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