Providers / Co-los with sunk costs and older facilities need to identify the best way to make their existing investments play in the new world to come without throwing good money after bad. Options include:
Negotiating better deals with key suppliers such as electrical utilities and partners such as telecom suppliers and optimizing power efficiency to squeeze every penny of cost savings out. This is where power optimization now only saves cost, yet helps tailor the right use.
Understanding the interplay with cloud solutions and joining in with them as Equinix did with its Cloud Exchange to allow customers to hybridize their platforms – rather than attempting for lock-in by making migration harder.
Working with RampRate as a channel partner to find the buyers and workloads for whom your solution is the absolute best fit.Knowing when to cut your losses and divest a facility that’s not going to be in the top 75% in the short term or the top 25%-50% in the long term.
New Incoming Providers that are looking to make new wise investments should think carefully about their levers of success before breaking ground:
Is the power contract long term, flexible, and competitive?
Is there enough fiber coming into the building (not wish casting who will want to come in when your customers are already there)?
Is there something that I’m absolutely going to be best at? PUE / green power? Density? Network? Service / support? Latency to some key location like a stock exchange? This is not a world for also-rans.
Is everything I build modular? How quickly can I expand so that I don’t have to run idle capacity?
Outside Investors that are not necessarily experienced in the data center market should doubt everything and everyone before signing the check:
The business models of the past are almost guaranteed to not work – the new business plan should have not just the economics of the last few years, but of the next big thing.
Middle-of-the-road generalists are not worth investing in with an age of specialization and optimization coming. If someone can’t say what they’re best at, they won’t succeed.