I get the distinct feeling that some here thought they'd get a 'quick flip' and have either forgotten or don't know what GBLX is building.
It's meaningful (to me) that, in the article about WCOM from your link, it states WCOM is beefing up co-location operations & ventures.
From that article: With the launch of its "generation d" initiative, MCI WorldCom said it will redirect much of its $8 billion to $10 billion annual capital budget into new technologies and services as it bulks up its hosting and co-location operations and ventures into other, uncharted fields.
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Colocation Will Grow to US$ 5.4 Billion Market in Europe by End of 2001 Due to the Demand From the E-business Economy, According to a New Independent Report From The Phillips Group
LONDON, Apr 13, 2000 (BUSINESS WIRE) -- The Phillips Group, the international comms consultancy, is today launching its new report, Towards Unified Communication Exchanges - Colocation and Beyond, which predicts that the Colocation market in Europe will experience accelerated growth across Europe over the next 18-24 months, and grow to US$ 5.4 Billion in value, due to the massive need for colocation facilities from the e-Business economy.
The study shows that demand for colocation space is still outstripping supply because of the dramatic growth in e-Business. Application Service Providers, Internet Service Providers, Web-Hosting companies and corporates requiring dedicated Internet access without the cost of a leased line, now use colocation facilities, both carrier owned and carrier neutral.
Key players are entering the colocation market from both real estate as well as telecommunications background and include Global Switch, IP Powerhouse, Telecity, and Telehouse SpeedPort (owned by Versatel), Global Crossing, Above Net, Teleglobe and Infonet among many others. Now incumbent operators, global network providers, competitive local exchange carriers and large ISPs are beginning to build and operate their own facilities, and a reseller market too is emerging.
The metropolitan operator COLT, for instance, offers colocation for its own wholesale and retail customers in the business districts of most major European cities. The pan-European carrier, GTS has recently announced plans to build colocation facilities across Europe, and European carriers Iaxis and Carrier 1 have also entered into a joint venture, called HubCo to build colocation services. Other carriers such as Level3 and KPNQwest are following suit.
Nicola Ainsworth, senior consultant at The Phillips Group and the lead consultant for the research said: "We are moving away from a colocation model based on pure facilities, to one providing tenants with high quality networks facilitating e-Business. This model will eventually migrate beyond data centres towards Unified Communications Exchanges."
Colocation is the physical location of a carrier's or ISP's switching equipment either in a facility owned by an independent company or a network-owning carrier. Increasingly it refers to the location of a server or web server owned by a web-hosting company, an ASP, an ICP, an ISP or a corporate in a facilities management centre.
The success of independent colocation providers was primarily due to the reluctance of incumbent operators to offer colocation for interconnection purposes. Independent `telehousing' could only be found in the major cities of London, Amsterdam, Frankfurt and Paris but companies offering independent facilities soon announced ambitious rollout plans throughout Europe prompting other companies to follow suit. The UK has led the colocation market in terms of growth, venture capital and roll out of facilities.
Carriers began to offer colocation to their own network customers, in some cases building their own facilities, but many have taken suite space in independent facilities in order to resell. The report found that carriers are now implementing their own rollout plans for colocation facilities.
The colocation market in Europe has grown exponentially over the past 12 months and a new lexicon has evolved to describe these services. The term 'Data Centre' has become common amongst both independent providers and carriers offering colocation and illustrates the move towards an internet-centric model.
Pricing for colocation space, both in terms of racks and suites has remained high. This is in part due to continued high demand and partly due to additional services such as 1st and 2nd line maintenance being offered and bundled in with the actual space.
The report examines a number of mission critical issues surrounding the continued evolution of colocation facilities including build plan and costs, security, power supply, finance and pricing. The Phillips Group envisions that beyond colocation and data centres, e-Business will eventually be transacted across a connected universe of web-provisioned applications facilitated by a new model of unified communications exchanges.
Towards Unified Communication Exchanges - Colocation and Beyond is available from The Phillips Group - contact kprior@the-phillips-group.com Price (pound)1,995.00 (html or adobe pdf version (pound)4,245.00)
The Phillips Group will also be hosting a conference in London this summer - The Colocation Summit (June 28-30th).
Information on The Phillips Group:
The Phillips Group is an international comms consultancy with offices in London, Washington DC and New Jersey and offers niche consultancy services that deliver professional advice and informed decision support for telecommunications operators, service providers, e-markets, new entrants, next generation service providers and regulatory bodies. The consultancy group is composed of practices and research groups in Pricing, e-Business, e-Business Applications and Law, ASP Markets and Mobile Content.
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Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Julia Vockrodt/Charlotte Delaforce VP Ltd 121 Oxford Gardens London W10 6NE E-mail: vp@vp-pr.com Fax: 020 8964 0277 Tel: 020 8964 0260 or Katie Prior The Phillips Group 19 Thomas More Street London E1 9YW E-mail: kprior@the-phillips-group.com Fax: 0207 423 4558 Tel: 0118 959 7728 www.tarifica.com
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