11-12-2015, 09:04 #1
[EN] Level 3 has no plan to sell off its data centers, CFO Patel says
The service provider currently operates over 350 carrier-neutral data centers throughout North America, Latin America and Europe.
December 10, 2015 | By Sean Buckley
Level 3 Communications could potentially get a financial gain from selling off its data centers, but the company's chief financial officer maintains it will hold onto them instead.
Speaking to investors during the UBS 43rd Annual Global Media and Communications Conference, Sunit Patel, EVP and CFO of Level 3, said that it sees the data center assets as a strategic element of its business.
The service provider currently operates over 350 carrier-neutral data centers throughout North America, Latin America and Europe.
"Our view is that we're comfortable with the data center assets we have in 350 locations in 60 countries," Patel said. "We use the majority of them for own network services and we do offer data center services to our customers, typically to customers that are several times more in bandwidth than in data center services so I don't think we'll be looking to sell those assets."
While Level 3 is going to retain its data center business, it's clear that a new consolidation trend is taking place in the industry segment. A number of other service providers like CenturyLink and Windstream are taking of either selling their data center assets or are considering a possible sale.
Earlier this year, Windstream sold its data center assets to TierPoint, a cloud and managed service provider, for $575 million in cash. Meanwhile, CenturyLink told investors during its third quarter earnings call that it is considering various options for its data center business, including a possible sale to a third-party provider.
Regardless of what the rest of the industry is doing, Level 3 will continue to offer a mix of traditional data center services and use its own data centers to build its growing set of cloud-based service capabilities, including managed IT hosting, managed security, cloud connect, and professional services.
Additionally, the service provider continues to leverage its growing global fiber and IP-based network to connect to other data center providers and cloud providers like Amazon Web Services (AWS), Equinix, Google, and Microsoft Azure.
Patel said that the ongoing demand for cloud services and the desire from customers for higher bandwidth services are key spots of growth for its business services unit, particularly in North America.
"In our industry, we're just in the early stages and we think this will pick up pace as more and more enterprises move their infrastructure into the cloud to take advantage of cheaper compute and storage resources off the cloud," Patel said. "As they do that will require connectivity to more than one cloud-based provider and that's where we will come into focus for them and we'll continue to do that."
Última edição por 5ms; 11-12-2015 às 09:07.
11-12-2015, 09:09 #2
Level 3 says ISPs should not be able to hide poor performanceDecember 1, 2015 | By Sean Buckley
Level 3 may serve as an intermediary between residential consumer service providers and content providers like Netflix, but it has told the FCC that traditional ISPs should provide information to consumers on broadband network performance.
In a recent FCC filing, the service provider said that making information available to consumers on whether they are getting the same user experience as others in their community is important.
"Too few consumers have a real choice for broadband service at their home. But for those who do, disclosures should help them make that choice," said Level 3 in the filing. "Consumers should have access to data that tells them, for each provider, whether the provider offers consistent, high-speed performance to Internet broadly, or whether the provider offers inconsistent performance, with better connectivity to some resources than to others."
Specifically, Level 3 said that ISPs should not be able to hide poor, inconsistent performance behind methodologies that provide a misleading "average" performance statistic.
A key area of focus for Level 3 is interconnection. Level 3 has been establishing a number of new interconnection agreements with Verizon and Comcast.
It said that in the event an ISP does not measure across interconnections, consumers should be able to get access to information to determine if they are getting an "FCC-validated" speed to "all or substantially all" of the Internet.
Today, the FCC's Consumer Advisory Committee (CAC) has recommended that ISPs should be measured during the evening peak time period for issues such as download speed, upload speed, latency and packet loss.
Level 3 suggested that besides providing CAC data, all ISPs should be required to report a color-coded "Connectivity Rating." This rating would include three main designations:
Green: Seeing 0-5 events a month, consumers would see that their service performance is rarely impacted by internetworking connectivity issues.
Yellow: Reporting 6-20 events per month, consumers might see its last-mile connection performance impacted to some of their favorite sites impacted occasionally due to internetwork connectivity problems.
Red: With over 21 events a month, consumers should expect that there is a significant likelihood that performance to at least some destinations on the Internet will be impacted by network connectivity problems.
"For ISPs that have the capability to measure performance across their interconnections to other networks, Level 3 recommends calculating average performance for each destination network, and disclosing the average performance for the destination networks with the best, median, and slowest averages," Level 3 said. "That will help ensure consumers are not misled by reported "average" performance figures that mask significant variations in actual performance to different parts of the Internet."
Providing access to real-world performance of sites across interconnections will enable consumers to compare broadband service options from telcos and cable operators.
11-12-2015, 15:44 #3
11-12-2015, 16:21 #4
Goodbye to the Carrier-Neutral Data Center?The trend of carriers entering the data center arena by opening ‘Carrier Hotels’ has been occurring for some time. Data center providers are now responding to this development by initiating the reverse. By creating their own long haul data center connections, providers will be able to offer communication services and become carriers themselves.
Data center service provider Equinix is building a 5,400km subsea cable connecting New York to London, collaborating with network provider Aqua Comms. The connection is scheduled to be operational before the end of 2015. The 52 Tbps cable will cross the Atlantic Ocean from Long Island, NY to the west coast of Ireland. The solution will include stubbed branching units for future landings.
This development gives the virtual data center an additional boost. The interconnected Virtual Metro Data Center of today becomes a Global Area Networked Data Center.
Data center providers were already linking their own data centers within a metropolitan area into a Virtual Metro Data Center. That way they enable their clients to use the carrier in one data center out of another data center. It then no longer matters where the client gets in. This now extended beyond the metro boundaries to cover an intercontinental area. It is a logical step towards further optimization of the investments made by the data center provider. It weakens, however, the role of the carriers as the data center provider governs the connectivity between the branches itself.
Will this be the end of carrier-neutrality? We believe that a carrier-neutral approach is as important as ever, especially for the ‘last mile’ between the data center to the enterprise’s premises, clouds and users, for avoiding vendor lock-in and also for getting the best price vs. performance. Carriers and data center providers will compete against each other even more than they already have. Changes in prices, technologies, latencies and bandwidths will accelerate. The end user should stay as flexible as possible to be able to continuously optimize the costs and quality of their connectivity, but the move by Equinix, being the market leader, makes It more difficult to find a carrier-neutral data center provider.
11-12-2015, 16:25 #5
When Carrier-Neutral Colo is Acquired By CarrierTerremark hosted a NANOG meeting in Miami shortly after its acquisition by Verizon was announced. A representative made a few statements during the opening of the meeting and during the peering track that Terremark was to continue operating as “business as usual.” He suggested that there are many new Terremark IXPs to be built out with the same business model as before.
Will this scenario work? ISPs and carriers have purchased carrier-neutral colocation facilities before, so there are some historical precedents to consider.
In 1999, AboveNet acquired the Palo Alto Internet Exchange (PAIX) of Palo Alto, California, and the community raised great concern of the form:
“The PAIX is no longer neutral.”
The rumblings continued that ISPs would move out and that AboveNet would leverage the ownership of the PAIX to its advantage. People suggested that a new neutral exchange point would arise and take over as the peering hub for the Bay Area. Others suggested that the ISPs would not expand their presence there.
However, none of these things actually happened.
The PAIX has changed hands several times since then without significant disruptions to the business. The PAIX continued to be operated as it always did, and continued to provide a quantifiable peering value to its customers.
All IXPs go through the network externality “S” curve and the PAIX in Palo Alto was already well past critical mass – the value of peering there greatly exceeded the cost of building in and operating peering infrastructure at the PAIX. The carrier neutrality “principle” was not a strong enough force to make people move out and give up that derived peering value (where peeringValue=valueDerived-costOfPeering).
So if history is any indication, Terremark’s facility in Miami will probably continue to contain a strong ecosystem moving forward.
However, the new Terremark buildings present a different situation altogether. Even if the Terremark buildings are operated as a completely separate Verizon subsidiary, building in ultimately supports the parent company, Verizon. Since the new buildings have to go through the exact same “start-up hump” that all colocation facilities and IXPs have to go through (where the value of participation is so much lower than the cost of participation), they will have a harder time attracting the critical mass of carriers and ISPs.
The Terremark neutrality message will also no longer ring true, so all of the heavy lifting needed to attract ISPs and build the value proposition will be much more difficult. After all, might Verizon get to pitch connectivity first to the new Terremark colocation prospects? Might Verizon get to peek through the tour and visitor logs to find prospects for bandwidth? Wouldn’t competitors prefer to see Verizon resources drain as a result of an over-built and unpopulated colocation facility? These questions are examples of concerns raised when carriers compared building into ISP-owned data centers against building into an open market Carrier-Neutral Data Center.
History has a way of repeating itself.
11-12-2015, 16:47 #6
Verizon converts data centers to carrier-neutral facilities20 June 2014 By Penny Jones
US enterprise services provider Verizon Enterprise Solutions has converted five of its US data centers to carrier-neutral facilities, giving a greater choice and flexibility to its enterprise and government clients.
Verizon said customers purchasing colo services from its data centers in Boston, Denver, New York, Manassas, Virginia and Seattle will have the option of selecting their own third-part network provider for carrier diversity and redundancy.
Before the conversion to carrier-neutral the data centers featured dual-carrier network connectivity with Verizon serving as the primary carrier and an alternate, pre-selected carrier providing backup network services.
Verizon said its customers would be able to benefit from universal internet connectivity as well as:
- Enhanced carrier diversity and redundancy.
- Ability to fully leverage existing relationship with network service providers.
- Streamlined processes and low cost associated with carrier management.
- Expanded business continuity options to maintain the accessibility and availability of mission-critical applications and data.
With the addition of its five converted carrier-neutral data centers, it brings Verizon total colocation facilities to a total of 16 that offer unrestricted interconnection with multiple carriers.
The other US data centers are Culpeper, Virginia, Dallas, Miami, and Santa Clara, California.
International carrier-neutral data centers are located in Amsterdam, Bogota, Colombia, Brussels, Istanbul, London, Madrid, Spain, and Sao Paolo.
Verizon Enterprise Solutions manager of data center interconnection services said businesses and government clients are opting to utilize colocation services rather than building their own data centers.
“By loosening previously restrictive interconnection policies, we are meeting customer requirements for flexibility and choice, thereby enabling an easier migration path to using a third-party provider for critical data center services,” Tal said.
Última edição por 5ms; 11-12-2015 às 16:49.
11-12-2015, 17:04 #7
350+ data centers
Level 3 knows data centers. We operate more than 350 carrier-neutral data centers throughout North America, Latin America and Europe. And each gets direct access to our award-winning, global, low latency, high availability network.
Our multi-tiered security, dual high-density power and redundant environmental systems help ensure maximum uptime.
High performance. Economical. Proven service. That’s the Level 3 difference.
12-12-2015, 15:58 #8
A definição deles de carrier-neutral é "datacenter onde deixamos os clientes acreditarem que as outras carriers conseguem entrar, para via regras pouco divulgadas dar um jeito disso ser impossível ou muito caro".
Dito isso, a Verizon Terremark Brasil é de fato carrier-neutral e não nessa definição "twisted".
12-12-2015, 16:46 #9
Talvez em alguns data centers sejam mais flexiveis, como o Henry Ford: "os clientes podem usar os carriers que desejarem, contanto que sejam aqueles que disponibilizamos".
(O que me chamou atenção no post #1 foi o seguinte:
"... we're comfortable with the data center assets we have in 350 locations in 60 countries," Patel said.
"We use the majority of them for own network services and we do offer data center services to our customers, typically to customers that are several times more in bandwidth than in data center services"
Com o post #2, no meu entender, fica aparente que o uso pretendido dos 350 DCs é oferecer (nas regiões em que opera) um serviço o mais próximo possivel da Akamai, ou em outras palavras, a melhor solução comercialmente viável depois da Akamai. Daí a reclamação no post -- que muitos parecem não entender/considerar -- com o desempenho inconsistente de ISPs.)
Mas talvez exista alguma liberdade dependendo da praça ou cliente.
Tomando por base a minúscula Oplink.net, que ocupa suite no data center da Level3 em Houston, eles tem circuitos com Level3 (60%) e Cogent (40%). Não exatamente um blend favorito de quem compra Level3 Fica a questão se a Cogent foi contratada independentemente pela Oplink ou é uma opção da Level3 naquele data center.
Última edição por 5ms; 12-12-2015 às 16:54.
12-12-2015, 17:28 #10
Situando quem é essa tal de Akamai:
- 200,000 servers
- 110 countries
- 1,400 networks
85% of the world's Internet users are within a single "network hop" of an Akamai CDN server.
Akamai is Trusted by:
- One out of every three Global 500® companies (Source: List compiled by Fortune Magazine)
- The top 30 media & entertainment companies
- All 20 top global e-commerce sites
- Ninety-seven of the top 100 online U.S. retailers (Source: Internet Retailer Magazine)
- All branches of the U.S. military
- More than 150 of the world's leading news portals
- Eight of the top 10 U.S online brokers (Source: Smart Money)
- Eight of the top 10 U.S asset management firms (Source: Institutional Investor)
- Ten of the top 10 P&C insurance carriers (Source: A.M. Best)
- Nine of the top 10 largest newspapers
- Eight of top 10 online publishers
- Nine out of 10 top social media sites
- Three of the top 5 semiconductor companies
- Thirteen of the top 15 largest auto manufacturers
- Nine of the top 10 global pharmaceutical companies
- Six of the top seven computer manufacturers
- All of the top anti-virus companies
- Four of the top five online auction companies
- All major U.S. sports leagues
Akamai is Proven:
- Akamai delivers between 15-30% of all Web traffic.
- Akamai delivers daily Web traffic reaching more than 30 Terabits per second.
- Akamai delivers over 2 trillion daily Internet interactions.
- Akamai helps securely enable more than $250 billion in annual e-commerce for its online retail customers.
- The top online music stores have sold billions of songs… and counting… delivered via the Akamai platform.
Akamai is Innovative:
- Akamai has the most pervasive content delivery network (CDN) - more than 200,000 servers in over 110 countries and within more than 1,400 networks around the world.
- Eighty-five percent of the world's Internet users are within a single "network hop" of an Akamai CDN server.