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By Rich Miller
Carrier Hotels Editor
Posted Mar 1, 2004
I see a strong pick up in colocation outsourcing but the deals are still viciously limited by budgets that have not grown. The core carriers are simply going to neutral data centers like the NAP of the Americas, Equinix, PAIX or Telx for their needs rather than even considering building out their own Central Office PoP's.
Important developments are definitely VOIP and Disaster Recovery. The VOIP guys take small spaces but they are making money which means rapid growth and more players coming into the market. The Enterprise Disaster Recovery space is a monster and is reaping benefits for the high end colo facilities but not as much for the basic colo's like legacy Switch & Data sites, etc.
2. How have bankruptcies and their outcomes affected the competitive landscape? Has it been more or less disruptive than you expected?
We have been only minimally affected by bankruptcies other than Global Crossing. The remaining clients that were NAP specific have simply been acquired by some other existing NAP client (so we just get a bigger single client) to they keep the NAP space out of bankruptcy because of our importance for their network.
3a. For landlords and property owners: What's your assessment of the current market for leasing of data center space? What trends are you seeing in demand for space and lease rates?
Traditional data center clients are virtually non-existent. The client demand we are seeing tends to be public sector or enterprise looking to be close to the center of the Internet. If you do not have a viable and easy Meet-Point-Room, you will lose these clients. The mothballed data center space at 10 cents on the dollar will kill new data center builds for years to come. Rates are dropping to the lowest pro-forma numbers the real estate owners ever considered when they purchased their properties. If you are not "the core property" in a city you should re-tool for other lease tenants.
3b. For service providers and analysts: What's your assessment of current demand for data center services? What products and services are getting the most customer interest?
I can only speak for the NAP of the Americas in Miami which is rocketing every day. We have so much demand from carriers, ISP's, enterprises and the public sector that we are strained to keep up with the RFP's and contracts. Again, if you are the core site for a city then the client almost walk into your door with little effort. Evidence of this is the doubling of the size of the NAP to 300,000 square feet, making us the single biggest NAP in the world as far as space goes. Clients are looking for peering, disaster recovery including hot, warm and cold site colo, data Storage including live mirroring and off-site back-up, enterprise network management and hub and spoke links.
4. Give us your outlook for 2004. What are the key trends you see affecting the industry?
BULLISH!!!!! This year the budget hounds are being released!
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http://www.carrierhotels.com/news/2004/Mar/01/qa_joshua_snowhorn_terremark_print.html
Q&A: Joshua Snowhorn, Terremark
By Rich Miller
Carrier Hotels Editor
Posted Mar 1, 2004
Joshua Snowhorn is Director of TerreNAP Data Centers, a unit of Miami-based Terremark Worldwide, the developer and operator of the NAP of the Americas, Inc.
I see a strong pick up in colocation outsourcing but the deals are still viciously limited by budgets that have not grown. The core carriers are simply going to neutral data centers like the NAP of the Americas, Equinix, PAIX or Telx for their needs rather than even considering building out their own Central Office PoP's.
Important developments are definitely VOIP and Disaster Recovery. The VOIP guys take small spaces but they are making money which means rapid growth and more players coming into the market. The Enterprise Disaster Recovery space is a monster and is reaping benefits for the high end colo facilities but not as much for the basic colo's like legacy Switch & Data sites, etc.
2. How have bankruptcies and their outcomes affected the competitive landscape? Has it been more or less disruptive than you expected?
We have been only minimally affected by bankruptcies other than Global Crossing. The remaining clients that were NAP specific have simply been acquired by some other existing NAP client (so we just get a bigger single client) to they keep the NAP space out of bankruptcy because of our importance for their network.
3a. For landlords and property owners: What's your assessment of the current market for leasing of data center space? What trends are you seeing in demand for space and lease rates?
Traditional data center clients are virtually non-existent. The client demand we are seeing tends to be public sector or enterprise looking to be close to the center of the Internet. If you do not have a viable and easy Meet-Point-Room, you will lose these clients. The mothballed data center space at 10 cents on the dollar will kill new data center builds for years to come. Rates are dropping to the lowest pro-forma numbers the real estate owners ever considered when they purchased their properties. If you are not "the core property" in a city you should re-tool for other lease tenants.
3b. For service providers and analysts: What's your assessment of current demand for data center services? What products and services are getting the most customer interest?
I can only speak for the NAP of the Americas in Miami which is rocketing every day. We have so much demand from carriers, ISP's, enterprises and the public sector that we are strained to keep up with the RFP's and contracts. Again, if you are the core site for a city then the client almost walk into your door with little effort. Evidence of this is the doubling of the size of the NAP to 300,000 square feet, making us the single biggest NAP in the world as far as space goes. Clients are looking for peering, disaster recovery including hot, warm and cold site colo, data Storage including live mirroring and off-site back-up, enterprise network management and hub and spoke links.
4. Give us your outlook for 2004. What are the key trends you see affecting the industry?
BULLISH!!!!! This year the budget hounds are being released!
http://www.carrierhotels.com -- Phone: (609) 243-7525