& 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
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
LRTV Custom TV
VeEX at ANGA COM

6|27|17   |     |   (0) comments


At ANGA COM 2017, Cyrille Morelle, president and CEO of VeEX, updates Alan Breznick with VeEX's new products and technology. This includes VeSion cloud-based platform for network monitoring, AT2500-3G advanced spectrum analyzer and MTTplus-900 WiFi Air Expert module. He also comments on DOCSIS 3.1 deployment and Remote PHY technology.
LRTV Custom TV
The Overall Objective Is to Win the Game

6|26|17   |     |   (0) comments


SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
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
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Does AT&T Deserve Time Warner?
Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.