Data Centres Now an Edge for Telcos

MELBOURNE: MNCs and large enterprise customers are being offered advanced cloud services by global carriers that require increased investment in data centers. Investment in data centers and the related infrastructure is now being integrated into a comprehensive strategy that includes additional service layers and advanced services beyond the traditional network services as global carriers expand, according to Ovum.

In this latest report, the independent telecoms analyst firm found that data centers are becoming the strategic service hub for new enterprise services. Each carrier has a different approach based on the individual carrier’s capital available, service portfolio and inclination to partner.

Mike Sapien, Principal Analyst, Enterprise Telecoms at Ovum and author of the report, said: “Global carriers are expanding outside the traditional franchise regions as they meet the demands of their MNC customers. This will lead to different approaches as there are different customer targets, regional priorities and service portfolios for each of these global carriers.”

According to the report, nearly all global telcos are consolidating their data centers within their home regions typically and also expanding into new regions with a single major data center location. This includes increasing their investment into fewer premium data centres globally and upgrading the facilities that house their advanced cloud services. Some global carriers are using third-party data center operators (e.g. Equinix, Interxion) to expand globally as well.

According to Sapien, “The long-term prospects for global expansion are to start with one primary regional location and then expand incrementally to meet customer demand. It is also likely and prudent to invest where and when required based on country regulations or application performance reasons. ”

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