Lane Patterson, Chief Technologist of Equinix (EQIX), shared his thoughts on data centers and the challenges facing his industry at the 2007 Gilder Telecosm conference. He coined the term ‘bitmile’ and shed some light on how application providers such as CDN’s are adjusting their optical transport architectures to optimize cost.
It is amazing how little can change in three years. I spent a great deal of time working on Carrier Ethernet in 2004 and 2005, and the presentations I saw at the Lightreading Ethernet Conference and Expo were no different than the ones I saw in 2004.
Equipment makers such as Ciena (CIEN) sang the praises of Carrier Ethernet (all true) and spoke of the various impediments to deploying it: standardization of inter carrier interfaces, administration & operation, quality of service. It strikes me that the bigger problem is much more basic than the ones being presented.
Only one half of Verizon’s wireline (VZ) revenue comes from consumers; the rest comes from business connectivity and services. Verizon, as well as other carriers, have been spending money to deliver better broadband services to consumers. What will happen when they spray this capex hose in the direction of their long neglected business customers? Which equipment companies will benefit?
OK, since I’ve been called out by Om Malik, I’m going to let rip with a stream-of-conciousness monologue on optical. No backspace key, no delete key, spelling corrections ex-post-facto. Here goes.
A few weeks back, while in CA for OFC/NFOEC, I was lucky to get a late night tour of 365 Main, a massive, state of the art data center near the Embarcadero in San Francisco. My guide, Peter Kranz, was someone I worked with and co-adventured with in College who is now the owner and CEO of Unwired, a San Francisco based CLEC. His equipment is in this data center, and he invited me in for a look.