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What’s driving the colocation feeding frenzy? • The Register

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Analysis Colocation facilities aren’t just a place to drop a couple of servers anymore. Many are quickly becoming full-fledged infrastructure-as-a-service providers as they embrace new consumption-based models and place a stronger emphasis on networking and edge connectivity.

But supporting the growing menagerie of value-added services takes a substantial footprint and an even larger customer base, a dynamic that’s driven a wave of consolidation throughout the industry, analysts from Forrester Research and Gartner told The Register.

“You can only provide those value-added services if you’re big enough,” Forrester research director Glenn O’Donnell said.

The past few months have seen this trend play out en masse, with the latest being private equity firm DigitalBridge Investment Management’s take over of datacenter provider Switch Inc in a deal valued at $11 billion.

Switch operates datacenters specializing in high-performance infrastructure. The company completed its fifth Prime datacenter campus in Texas last year, but this is only the latest colo acquisition in recent memory.

“There have been a pile of smaller colocation providers that have been coming together, either being acquired by the big boys, or they’ve been merging,” O’Donnell said.

There’s been a flurry of colocation mergers and acquisitions over the past few months. Here’s just a sampling: NorthC acquired Netrics, LightEdge bought NFinit, EdgeConnex made off with GTN, Unitas Global snapped up INAP, VPLS nabbed a Carrier-1 datacenter in Texas, and Digital 9 absorbed Finnish colo Ficolo and Volta’s London datacenters.

It’s the cloud! Except, it’s also not

So what’s driving this ramp in M&A activity? You might think it’s the cloud, and while there’s certainly some truth to that, O’Donnell says it’s not the full story.

“I always like to remind people that just because cloud is so big and growing does not mean the datacenter is dead,” he said, adding that to some extent cloud has actually driven people to colos more than it has hurt them.

“I won’t give cloud all of the credit, but cloud certainly proved that this is a viable way of doing things,” O’Donnell added.

What the cloud has managed to do is force colocation providers to innovate around new consumption models and platform services, while simultaneously expanding their reach closer to the edge.

The major cloud providers operate a relatively small number of extremely large datacenters located in key metros around the world. By contrast, colocation providers like Equinix and Digital Realty operate hundreds of datacenters around the globe.

This reach is not only one of the big attractions of colocation providers, Gartner analyst Matthew Brisse said, but it also turns out to be one of the biggest drivers of M&A activity.

Location, location, location

“Size matters in this business because customers, especially multinational customers, want datacenters in a lot of different places,” O’Donnell said.

According to Brisse, when enterprises start looking into colocation facilities, their main concern is getting workloads spun up in the right place. “The main reason that people go to colos, is location, location, location,” he said.

And this demand has only accelerated as colocation providers look to offer services closer to the edge.

“We see the colocation providers starting to build out their edge offering as opposed to a simple hoteling experience for your infrastructure,” Brisse said.

These aren’t necessarily large datacenter facilities in the traditional sense, either, he explained. These can be as small as a half-sized shipping container positioned at the base of a cell tower.

Smaller regional colocation providers also serve an important role because they tend to build in places the larger players overlook, Brisse explained.

“A lot of companies don’t have the luxury of sitting right next to an Equinix facility,” he said. “There’s lots of opportunities out there for colocation market in totality.”

And as colocation providers inch closer to the edge, Brisse argues networking and automation are only becoming more important.

Where networking plays in

One of the most potent value adds offered by major colocation providers today is networking.

“As you look at the colocation services, the networking services have become a pretty big deal to differentiate them from just being a simple chunk of real estate to plop your servers,” O’Donnell said.

And here again the larger players have the advantage. “Networking connectivity requires a big provider with lots of locations connected by their own fiber,” he added.

These backbone networks allow workloads running in a datacenter on one side of the country to communicate with another without ever going out over the open internet.

But it’s not just networking between colocation datacenters that’s important. Many of these colocation facilities are located directly adjacent to the major cloud and software-as-a-service providers.

“So AWS, for example, or Microsoft Azure might be in the same building as you and connecting to it is just a matter of connecting to a different cage in that same building,” O’Donnell said. “Smaller players can’t do that, but the bigger guys can.”

However, as customers increasingly turn to colocation providers for edge compute and networking, complexity rears its ugly head, Brisse argues.

In the future, “we’re going to have lots of datacenters everywhere; we’re going to have lots of data distributed in the right location; we’re going to have edge facilities everywhere bringing data close to the edge,” he said. “It is not going to be possible for humans to monitor all of that activity.”

So, in addition to growing their footprint and network services, Brisse believes colos will also need to invest in AI operations capabilities to manage this complexity.

More consolidation to come

Both Brisse and O’Donnell expect the colocation market to continue to consolidate as macroeconomic forces put a pressure on smaller players.

“If the economic troubles we’re seeing are persistent, I think we will see an acceleration of this kind of [M&A] activity,” O’Donnell said.

It’s important to remember that while colos may look like tech companies on the inside, on the books, they’re really real estate investment trusts, he said, adding that in the current economic environment, colos are a comparatively safe bet in an otherwise dismal commercial real estate market.

“Colo is a hot market and getting hotter,” O’Donnell said. ®

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Welsh council extends contract for Oracle EBS 12.1 • The Register

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Swansea City Council has been forced to extend an IT service provider contract to keep its unsupported and unpatched ERP system up and running because its replacement is running two years behind.

A procurement document published last week shows Infosys was awarded £2 million contract (c $2.40 million) extension, until 30 November 2023, to support the Welsh council’s Oracle eBusiness Suite ERP system while it waits for the replacement Oracle Fusion system to be ready. It takes Infosys’s total for supporting the old system to £6.7 million (c $8.1 million).

Council documents reveal the authority runs its finance and HR systems on EBS R12.1, which moved into Oracle Sustaining Support in January 2022 and will therefore no longer receive new fixes, updates, or security patches.

In 2019, the council approved plans to move to Oracle Fusion [PDF] in the expectation that the new system would be live by November 2020.

However, the council had to change the schedule due to time lost to the COVID-19 pandemic.

Council risked failing its Public Service Network accreditation: report

It said using unsupported software “increased the risk of cyber-attacks and potential data theft” while there was also “a risk payroll may not function, staff and pensioners may not be paid.” The report also said the council risked failing its Public Service Network (PSN) accreditation, which meant it could be prevented from sharing data with the health service, police, and the Department for Work and Pensions (DWP).

However, in March 2020, the council invoked a force majeure clause – which alters parties’ contractual obligations – with the support provider Infosys and began discussions to resume the program.

It opted to suspend the program and start back up in February 2021, with the aim to go live in October 2021. The plans said Infosys had agreed to absorb additional costs for this extension.

It said Oracle had agreed to extend support from November 2020 to 2022 so it could get regular updates and patches. “Although this risk still exists, it has been mitigated,” it said.

Given the council has awarded a contract well after the planned go-live of its replacement, it seems those assumptions are under threat. The council has so far failed to respond to The Register‘s request for comment.

Its Fusion project might provide some lessons for the London Borough of Waltham Forest, which plans to have its core solution – a move away from an ageing SAP ERP system – live within a year of the project’s start.

Other councils have learned about the complexity of ERP projects the hard way. In December last year, The Register revealed that West Sussex County Council was facing a two-year delay to a £7.5 million ($9.2 million) Oracle ERP project to replace its 20-year-old SAP system with Fusion. Surrey County Council has also seen its project to move from SAP to Unit4 delayed and incur additional costs. ®

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Sony shifts focus to PC gamers with new Inzone monitors and headsets

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Sony aims to boost the ‘growth of gaming culture’ with two 27-inch monitors and three headsets, designed for both PC and Playstation gamers.

Sony has announced a batch of new monitors and headsets with a focus on PC gamers, as the company looks to reach out to more than its core Playstation audience.

The Inzone range consists of two 27-inch monitors and three headsets, which are all designed to enhance a gamer’s experience. While the main target appears to be PC gamers, the products have features that suit PS5 users.

Sony said its Inzone M9 monitor has 4K resolution and a high contrast with full array local dimming, designed to boost the detail of gaming scenes in deep black and brightness. The monitor also has a 144Hz refresh rate, an IPS display and a 1ms response time. Sony said the monitor will help lead to quicker reactions, which is a clear benefit for competitive PC gamers.

Meanwhile, the M3 monitor will have a 240Hz refresh rate, along with variable refresh rate technology to help gamers “capture movements of rivals in shooter games”.

To go with the monitors, Sony is releasing two wireless headsets, along with the wired Inzone H3 model. The Inzone H9 will have 32 hours of battery life, while the H7 model will have 40 hours.

Speaking on the products, Sony’s head of game business and marketing office Yukihiro Kitajima said there has been a higher interest in gaming with the spread of e-sports tournaments and the advancement of gaming entertainment.

“With Sony’s strong history of high-end audio and visual technology products, we believe this new line will offer even more options for those looking to upgrade their current gaming systems,” Kitajima said.

“We are committed to contributing to the growth of gaming culture by providing PC and PlayStation gamers with a wider range of options to enrich lives through gaming.”

The Inzone headsets range from €300 to €100 and are expected to launch in July, while the M9 monitor is due to launch in the Summer at a cost of €1099. Sony said the pricing and availability of the M3 monitor is expected to be revealed sometime this year.

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Why US women are deleting their period tracking apps | Privacy

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Many American women in recent days have deleted period tracking apps from their cellphones, amid fears the data collected by the apps could be used against them in future criminal cases in states where abortion has become illegal.

The trend already started last month when a draft supreme court opinion that suggested the court was set to overturn Roe v Wade was leaked, and has only intensified since the court on Friday revoked the federal right to abortion.

These concerns are not baseless. As with various other apps, cycle trackers collect, retain and at times share some of their users’ data. In a state where abortion is a crime, prosecutors could request information collected by these apps when building a case against someone. “If they are trying to prosecute a woman for getting an illegal abortion, they can subpoena any app on their device, including period trackers,” said Sara Spector, a Texas-based criminal defense attorney, and ex-prosecutor.

“But every company has their individual storage and privacy policy about how they use and how long they store data,” Spector added.

Cycle trackers are popular for a reason. Nearly a third of American women have been using them, according to a 2019 survey published by the Kaiser Family Foundation. They have helped make women’s lives easier in many ways, from family planning and detecting early signs of health issues to choosing the perfect time for a holiday.

A 2019 study published in the British Medical Journal (BMJ) found that 79% of health apps available through the Google Play store that were related to medicine, including apps that help manage drugs, adherence, medicines, or prescribing information, regularly shared user data and were “far from transparent”. But many of the big players have made progress over the past years.

A smartphone sits on a light wooden table showing the period tracker app Clue in the Google Play store.
The Berlin-based period tracker app Clue says it does not store sensitive personal data without the user’s explicit permission. Photograph: Piotr Swat/Alamy

Two of the most popular period trackers in the US, Flo and Clue, have more than 55 million users combined. The Berlin-based app Clue said it was “committed to protecting” users’ private health data and that it was operating under strict European GDPR laws. The company’s website says the app collects device data, event and usage data, in addition to a user’s IP address, health and sensitive data it may use for the purpose of improving the app, the services, and preventing abusive use of its service. But Clue does not track users’ precise location, and says it does not store sensitive personal data without a user’s explicit permission. The company also tweeted that it would have a “primary legal duty under European law” not to disclose any private health data and it would “not respond to any disclosure request or attempted subpoena of their users’ health data by US authorities”.

But just because data is being processed by a European company, doesn’t mean that it is entirely immune from US prosecution, said Lucie Audibert, a lawyer at Privacy International, a global NGO that researches, litigates and advocates against abuses of technology and data by governments and corporations.

“The fact that GDPR applies is not that relevant in this case. When it comes to a legitimate legal request from US authorities European companies usually comply. Also, a European company may be hosting data outside the EU, making it subject to different legal frameworks and cross-border agreements,” Audibert added. She also stressed that using a Europe-based app won’t protect women from the courts requesting data from them directly. But it can be a slightly better option than using a US-based one because US companies are more easily compelled to comply with American authorities and courts’ requests. Enforcement is more difficult against European ones.

Flo has come under fire for sharing its users’ data before. The company says on its website it only uses data “for research activities” and that it only uses “de-identified or aggregated data, which cannot be associated” with specific users. But an investigative piece by the Wall Street Journal has found that the app informed Facebook when a user was on their period or if they intended to get pregnant. In 2021, the Federal Trade Commission (FTC) reached a settlement with Flo. Under the settlement, Flo must undergo an independent review of its privacy policy and obtain user permissions before sharing personal health information. Flo did not admit any wrongdoing.

On Friday, Flo announced that it will soon be launching an “Anonymous mode” that can help keep users’ data safe in any circumstances.

The company did not respond to a request for comment.

A relatively new, astrology-focused period tracker, Stardust, became the most downloaded free app on iOS in the days after the supreme court’s decision. Stardust’s Twitter bio says it is a “privacy first period tracking app”. But as Vice News reported, the company stated in its privacy policy that if authorities ask for user data, it will comply, whether legally required to or not. It said that the data was “anonymized” and “encrypted”.

“We may disclose your anonymized, encrypted information to third parties in order to protect the legal rights, safety and security of the company and the users of our services; enforce our terms of service; prevent fraud; and comply with or respond to law enforcement or a legal process or a request for cooperation by a government or other entity, whether or not legally required,” their privacy policy stated as of Monday.

Following Vice’s request for comment, Stardust changed its privacy policy to omit the phrase about cooperating with law enforcement “whether or not legally required” to “when legally required”.

Stardust did not immediately respond to a request for comment.

Planned Parenthood encourages people to use their app Spot On. “People who want to track their periods and birth control always have the option to remain anonymous by using the Spot On app without creating an account,” the organization said in a statement. “This way, period or birth control data is only saved locally to a person’s phone and can be deleted at any time by deleting the app.”

Third-party apps are not the only option when it comes to period trackers. Apple has a built-in cycle tracker in its Health app that offers more privacy than most external apps. With just a few steps, one can turn off the storing of their health data in iCloud, and it also has the option to store the encrypted data on their computer or phone.

Evan Greer, deputy director of the non-profit advocacy group Fight for the Future, said the best way to protect sensitive health data was to only use apps that store data locally rather than in the cloud. “Because any app where a company [that could receive a subpoena] has access to their users’ data could make it vulnerable for a legal request.”

An image of an Apple iPhone screen shows app icons, including the Health app.
Apple’s Health app has a built-in cycle tracker that offers users privacy. Photograph: Richard Sheppard/Alamy

Eva Blum-Dumontet, a tech policy consultant, said, “It is normal that in times of concern, people are looking differently at technology and apps that we trusted.

“I think when there is a discourse around whether women should delete these apps, we have to think about why they use them in the first place,” Blum-Dumontet said. “These trackers help them manage menstrual cycle when they are experiencing pain.”

Blum-Dumontet stressed that instead of asking users to change their behaviors, “it is period trackers that should change their practices”.

“They should never have owned so much data in the first place. If they adopted practices like storing data locally and minimizing the data to what’s strictly necessary we wouldn’t be having this debate now. It’s not too late for them to do the right thing,” she said.

“The companies that have been making a profit out of women’s bodies need to think very carefully about how they will protect their users,” she continued.They haven’t all been the best in the past when it comes to data sharing. The only way they can survive in this market, the only way they can make themselves trustworthy is by improving their privacy policy and giving users more control over their data,” she said. “If any of these apps will be used in court against their users, it will not be good PR for them.”

Melissa, a 27-year-old mother from Texas who is goingby only her first name to not jeopardize her employment, said she deleted the app because she fears that when she travels, her state could use her missed period data against her.

“I will miss using the app so much. I have used it for so many things, like tracking my ovulation or predicting my mood changes. Sometimes I wake up feeling irritable, and I don’t know why until my app tells me that this could be normal at this point of my cycle,” she added. Melissa also says she would have loved to use it for future conceptions, but now she can’t.

Although much of the warnings on Friday were focused on just period trackers these are not the only apps that can be used against users when it comes to criminal prosecution, experts warned.

“Google Maps or a random game on your phone could just as easily be weaponized against someone as a menstrual tracking app,” Greer said. “While we need to educate each other and take precautions, it’s not OK to put the responsibility solely on individuals. Companies and lawmakers need to act immediately to protect people.”

The concerns over period tracking data are part of a broader conversation about the amount of personal information smartphones collect. Women’s rights organizations all over the world are warning users to be more mindful of their digital presence, not just when it comes to period trackers.

Cycle tracking apps can be hugely useful for many women, said Jonathan Lord, UK medical director for MSI Reproductive Choices. “But all data can be used against you.”

According to Lord, this danger will remain until “we treat abortion like all other healthcare – regulated like all other medical procedures, but not criminalized”.



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