& cplSiteName &

CLECs Feasting on Data Center Growth

Carol Wilson
4/14/2015
50%
50%

ORLANDO -- ComptelPlus Spring 2015 -- While mobile backhaul remains a driving force for competitive network expansion, data center interconnection is also in the spotlight here. Multiple fiber optic network builders and operators say their network expansions are increasingly driven by the need to connect enterprises to data centers and data centers to each other.

That was the motivation behind Global Capacity 's decision to add a second point of presence in Dallas and to connect its two PoPs with a metro fiber ring, says Mary Stanhope, VP-product and marketing. Specifically, GC is adding a PoP at 2323 Bryan Street and connecting to its existing One Marketplace PoP at 1950 North Stemmons Freeway. (See Global Capacity Lights Metro Fiber Ring in Dallas.)

"What we had in Dallas was a bunch of data centers, and we were getting more and more demand from the enterprise side to connect," Stanhope says. "There are a number of carriers at the 2323 Bryan St. PoP -- Level 3 has a jump-off point right there and they are a big customer of ours -- so we decided rather than go out and buy a lot of access, we would light up a fiber between the two locations."


Want to know more about how data center interconnections are impacting the telecom industry? Come to our Data Center Interconnect Summit at Light Reading's Big Telecom Event on June 9-10 in Chicago. Get yourself registered today or get left behind!


Most of the services Global Capacity will be providing in this new space are higher capacity connections between the new PoP and its existing Stemmons facility which is an Equinix ecosystem connecting data centers.

"As we expand further and further into the enterprise market, connecting data centers is becoming more important," she says. Large and medium enterprises with multiple sites and applications are no longer content to get an MPLS connection to a carrier. They now need multiple connections to data centers for access to different clouds or applications. And that will impact how network operators such as Global Capacity build out their networks going forward, Stanhope says.

FirstLight Fiber operates five data centers of its own and is seeing significantly greater interest in connections to those and other data centers, particularly in some of the Tier 2 and Tier 3 cities it serves, says Maura Mahoney, senior director of marketing and product management.

"A lot of folks are pursuing data centers in Tier 2 and Tier 3 cities and we are able to give them connectivity back to the Tier 1 cities, where most enterprises are already operating," Mahoney says in an interview.

365 Data Centers is one of the companies targeting those smaller markets, mostly to enable social media companies and content providers to push video content and more closer to their customers, says Keao Kaindec, chief commercial officer. Its most recent addition of an Internet exchange in Nashville is an example of how traffic patterns are changing as video content drives bandwidth needs up. Rather than try to backhaul traffic all the way to Chicago or Atlanta, content companies are pushing it out toward the edge. (See 365 Opens Nashville Internet Exchange.)

There is also greater effort by carriers expanding their networks to make sure they include data centers in their planned build-out.

Access to cloud services is certainly driving much of the data center interconnect interest but enterprise outsourcing of their own data centers is another driver, Mahoney notes. Hospitals and other customers who have to store large volumes of data are looking to offload that responsibility and its costs and staffing requirements. They then need highly reliable, high-capacity connections into those outsourced resources.

EarthLink Inc. (Nasdaq: ELNK) is finding the data center market is growing but it's also posing some interesting challenges. Some data center operators don't want to provide direct access to their facilities and prefer to build their own last mile networks and connect to carriers at a nearby point, says Lorenzo Leuzzi, VP of carrier and wholesale services for EarthLink Carrier.

EarthLink is connecting data centers and large interconnect sites for big social media players and others, and that focus is honing its wholesale strategy. The company is building out networks, particularly in the Southeast, that use different routes from the existing networks, in order to provide diversity.

"Our customers are companies who can't afford any outages," Leuzzi notes. EarthLink Carrier now offers multi-service aggregation for MPLS and Layer 2 Ethernet traffic to its wholesale customers, and that is proving attractive to the data center crowd as well, notes his colleague, Kristie Warren, senior manager of carrier sales engineering. The company can aggregate services from multiple providers and provide those under a single contract.

One immediate impact of the increased traffic is fast growing 100-Gig services, Leuzzi notes, joking that "100 is the new 10" when it comes to selling high capacity links. "We've quoted more 100G services in the past month then we did in the previous year," he says. EarthLink, which built out its network on Infinera gear, believes it is well-positioned to handle that growth.

ADVA Optical Networking (Frankfurt: ADV) , which sells metro optical gear, is also seeing the impact of data center interconnection, among both its telecom carrier and enterprise customers, says John Scherzinger, VP of North American Sales. "The North American fiber market is as hot as it's ever been," he says. "In the metro market, we are seeing carriers upping the ante in terms of data center connectivity. But there are still enterprises who choose to build private networks, or use a hybrid approach."

— Carol Wilson, Editor-at-Large, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (0) comments


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Custom TV
5G Spectrum Wars

8|15|17   |   2:22   |   (0) comments


Service provider Three has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Analyst Nolle: Fundamental Errors Plague NFV
Carol Wilson, Editor-at-large, 8/11/2017
Snapchat Misses Estimates, Eyes Reality Shows
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/11/2017
ATIS: Connected Car Security an Industry-Wide Issue
Carol Wilson, Editor-at-large, 8/10/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.