PTCouncil PTC17 The Colocation Sector Shifting Dynamics and Stable Fundamentals Jon Hjembo TeleGeography Outline Network and Colocation Growth Mergers and Divestments Pricing Movements ID: 796163
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Slide1
TELEGEOGRAPHY WORKSHOP
@
PTCouncil
#PTC17
Slide2The Colocation SectorShifting Dynamics and Stable Fundamentals
Jon Hjembo
TeleGeography
Slide3OutlineNetwork and Colocation Growth
Mergers and
DivestmentsPricing Movements
Slide4Network and Colocation Growth
Slide5Major Interconnection Hubs
Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com
International Internet Bandwidth, 2012 (Tbps)
Slide6Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com
Major Interconnection Hubs
International Internet Bandwidth, 2016 (Tbps)
Slide7Mixed growth rates in secondary hubs
Growth in International Internet Bandwidth, CAGR 2012-2016
Slide8Content positions for localized growth
Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com
Slide9Local peering is global
Source: TeleGeography’s Internet Exchange Map, www.internetexchangemap.com
Slide10Tremendous capacity in core markets
Retail Colocation Floor Space, Core Markets, 2016
Slide11…with moderate but steady growth
Growth in Retail Colocation Space, Core Markets, CAGR 2012-2016
Slide12Secondary markets establishing a foothold
Retail Colocation Floor Space, Secondary Markets, 2016
Slide13…while showing signs of maturation
Growth in Retail Colocation Space, Secondary Markets, CAGR 2012-2016
Slide14Mergers and
Divestments
Slide15Equinix alters the competitive landscapeFirst Bit Isle (Dec 2015)
TelecityGroup (Jan 2016)
And now Verizon (pending approval)
Slide16Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com
Equinix
has been busy
Equinix Capacity by Market before Mergers, thousands of sq. ft.
Slide17Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.com
Equinix
has been busy
Equinix Capacity by Market after Mergers, thousands of sq. ft.
Slide18Are carriers getting out of colo?
These regions now Equinix
Now TierPoint
Slide19Pricing Movements
Slide20Consistent regional differences in base price
Median Monthly Price per Kilowatt at 4-Kilowatt Density, H2 2016
Slide21Some markets more predictable than others
Range in Monthly Price per Kilowatt at 4-Kilowatt Density, H2 2016
Slide22U.S. XCs still far pricier than European ones
Median Monthly Fiber Cross-Connect Price, H2 2016
Slide23…as they have been for a while
Change in Median Monthly Fiber Cross-Connect Prices, H1 2015-H2 2016
Slide24…but lots of variance within markets
Range in Monthly Fiber Cross-Connect Price, H2 2016
Slide25Similar TCO, despite varying component costs
Total Cost of Ownership per Month, One Cross-Connect, H2 2016
Slide26…but with more XCs, differences amplify
Total Cost of Ownership per Month, Five Cross-Connects, H2 2016
Slide27Prices likely won’t budge much
Operator Near-Term Price Change Expectations by Metro Area, H2 2016
Slide28ConclusionNetwork and colocation growth mixed but generally robust
M&As in past year confirm focus on both primary and secondary markets
Pricing is stable across major colo markets
Slide29Jon HjemboSenior AnalystTeleGeography
jhjembo@telegeography.com
+1 202 741 0046