What Can Interconnection Providers Do to Extract Greater Upside from the Public Cloud Trend?

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By Reece Hayden | 2Q 2022 | IN-6588

 

Enterprises Increasing Looking to Move Operations to the Public Cloud

NEWS


Multi-national companies, such as Goldman Sachs, BP, and Coca-Cola, continue to transition from private data centers to run compute/storage in the public cloud.

This trend is motivated by a few factors:

  • Cost: Running workloads in a private data center requires Information Technology (IT) management resources, compute resources, and facilities. These rely on a Capital Expenditure (CAPEX), rather than Operational Expenditure (OPEX) model. Transitioning to a public cloud reduces overhead and limits upfront costs.
  • Scale and Complexity: As more and more Internet of Things (IoT) are integrated into enterprise networking, the sheer amount of data created will continue to increase exponentially, which not only has cost implications, but also complexity issues. Public clouds can abstract this complexity, offering easy to use facilities with nearly unlimited scalability.
  • Agility: Private data centers have long lead times, taking months, if not years to build within colocation facilities, while public clouds take minutes to build.
  • Critical Appli…

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