Scale drives almost everything in the era of cloud computing, and it’s a big reason why customer choice is not always the name of the game when it comes to infrastructure.
Globally, there are really three major cloud providers (four if you count Alibaba’s growing cloud business, and five if you count IBM) and now a decreasing number of companies from which to lease data center space, as well. On Friday, it was announced that Digital Realty, the world’s largest wholesale data center provider, is buying rival DuPont Fabros for about $7.6 billion
. According to estimates by market research firm Structure Research
, the deal will give Digital Realty more than 26 percent of global data center market share.
Meanwhile, Amazon Web Services announced a new campus
near its U.S. East cloud region in northern Virginia, which might or might not include new data center capacity. AWS also announced on Thursday that Ancestry.com is in the midst of a major migration to its cloud. According to ZDNet
, “the company has moved 8 petabytes of data and 6 petabytes of images already to Amazon, and is in the process of moving 550 databases and 500 services.”
The economics of data centers seem to demand that the big get bigger, and everybody else get out of the way. While large data center and colocation providers like Digital Realty and Equinix continue to see revenues increase, even in the face of competition from the public cloud, part of that is due to rabid expansion via acquisition. For better or worse, companies with serious computing and storage needs are seeing their pool of providers—and some of their bargaining power—shrink before their eyes.