Monthly Archives: March 2012

Intra-Asian Subsea Cable Market Eyes Supply/Demand Issues

Intra-Asian Bandwidth Demand Chart, Price/RevenueTeleGeography’s Global Bandwidth Forecast Service presented new numbers this week, covering intra-Asian submarine cables and some interesting market dynamics at work. Of course, projected demand for bandwidth on this particular piece of infrastructure remains strong – as would be any forecast against demand on anything to do with bandwidth these days. A 39% annual growth projection is pegged for the time period between 2011 and 2018 (1).

The picture painted illustrates a need to find some 99Tbps of lit capacity to meet growth expectations. To align this forecast demand with capacity, consider the current situation of existing intra-Asian routes and their respective capacity, coupled with projects coming online. Telegeography identifies a large amount of potentially available capacity within the existing infrastructure. Three consortium cables are also anticipated to come online by 2014, including the Asia Submarine Express (ASE), the Southeast Asia Japan Cable (SJC), and Asia Pacific Gateway (APG) system.

Naturally, as this new capacity becomes available to the market, expectations are that prices will fall fairly rapidly between 2012 and 2014. As the market absorbs the introduction of the new cable systems, TeleGeography expects prices to fall rapidly, especially between 2012 and 2014. For example, Telegeography cited an example of a 27% decline – compounded annually…

So, the interesting crux is that demand growth is not seen as strong enough to completely offset the supply/demand price erosion effect. The underlying issue pointed out by Telegeography Analyst Erik Kreifeldt is that, “as demand grows, bandwidth buyers continue to obtain greater volume discounts. Volume discounts compound the effect of Unit price declines, and amplify their effect on service provider revenues.” Let that be a lesson to your business model, indeed…

  1. Telegeography, New Cables and Falling Prices to Disrupt Intra-Asian Submarine Cable Market

http://www.telegeography.com/products/commsupdate/articles/2012/02/29/new-cables-and-falling-prices-to-disrupt-intra-asian-submarine-cable-market/

Webair Launches Open Network Access In the Cloud

Webair announced today that it is launching its latest service concept aimed at packaging carrier neutral cloud infrastructure with bundled hosting services, all in a simplified format that provides the many benefits of cloud computing with the advantage of complete carrier neutrality. The solution delivers truly transparent access from Cloud environments to thousands of transit and transport providers through a proprietary Cloud Cross Connect technology.

While technology adoption ripples through industry, the appeal of efficiency, cost savings, scalability and reliability are furthered with the flexibility and freedom of a cloud hosting environment, while providing total control over all network infrastructure and carrier choices.

The Premise

In the late 1990s physical data center infrastructure became disassociated from particular carriers. The result was increased competition among carriers, greater consumer choice among business owners, lower bandwidth costs and more reliable services. Then cloud computing came along and businesses faced decision points between the computing scalability of the cloud, or the network freedom of physical infrastructure

The Webair Carrier Neutral Cloud solution offers scalable cloud computing services with complete carrier neutrality, allowing clients the best of both worlds. Clients configure any combination of transit or transport providers to directly connect to their computing infrastructure. This allows businesses with already established carrier relationships to utilize them in a cloud deployment with a truly open access environment. Options to work with providers based on metrics that matter to their unique needs, such as latency, route preferences, proven stability, or cost are left to their own specification. Further, strategies to aggregate commitments and consolidate contracts can more readily be executed.

Barriers are removed and clients win the unique ability to custom build a truly multi-homed cloud environment using any carriers they prefer. Webair’s Carrier Neutral Cloud services are currently available in the NYC metro area. For more information, visit http://www.webair.com/webhosting-cloud-fusion.html or email sales@webair.com. Follow Webair on Twitter: @WebairInc and Facebook: www.facebook.com/WebairHosting.

Wired Real Estate Group Brokers 82,000 SF Denver Data Center

Growth in cloud computing, maturity of the online business model, new regulatory compliance record keeping…so many pressures are driving the need for data center build-outs and expansions to handle our world of big data, and massive processing tasks.

A handful of states are benefiting from the domestic infrastructure developments to support these requirements, and Colorado is a major player among them. Wired Real Estate Group, Inc. (“WiredRE”), the nation’s leading data center advisor, has completed the placement of another national colocation company in an 82,000 square foot property in Denver, Colorado. The site offers 14 MW of existing utility service, and when completed, the site is expected to garner over $50 million in investment as a high density, Tier III colocation facility. With the brokerage of this deal, WiredRE successfully garnered a 100% growth rate in 2011. Sure evidence of the market’s hot trend.

“We doubled our revenues in 2011 and we expect to achieve 200% revenue growth in 2012. The broad adoption of our services and increasing market demand are strong indicators driving the preference for advisory and development firms solely focused on data centers,” commented Everett Thompson, CEO. In fact, the Colorado data center market absorbs approximately 40 MW of new demand annually, and nearly half of that demand surrounds Denver with the remaining 20 MW landing in Colorado Springs.

Complex managed services will continue to have almost half of the market share, however, shared services are expected to grow fastest The Colorado data center market has seen significant investment and finance activity over the last several years. WiredRE also represents the Vineyard Data Center Park, located in South Colorado Springs, which has recently been awarded both state and federal incentives (New Market Tax Credits) estimated at over $100 million.

For more information about WiredRE and its approach to data center advisory solutions, visit http://wiredre.com/.