ANALYTICS
BY KIERAN CLARK
SUBMARINE TELECOMS MARKET SECTOR REPORT Data Center & OTT Edition
T
o address the growing reporting and analysis needs of the submarine fiber industry, STF Analytics continues its Market Sector Report series – designed to provide the industry with the information it needs to make informed business decisions. The Submarine Telecoms Market Sector Report is a bi-monthly product covering a specific sector of the submarine fiber industry, coinciding with the theme of each issue of the SubTel Forum Magazine. The second edition of this report addresses the data center and Over-The-Top (OTT) provider aspect of the submarine fiber industry. STF Analytics collected and analyzed data derived from a variety of public, commercial and scientific sources
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SUBMARINE TELECOMS MAGAZINE
to best analyze and project market conditions. While every care is taken in preparing this report, these are our best estimates based on information provided and discussed in this industry. The following Executive Summary provides an overview of the topics addressed in this month’s report.
EXECUTIVE SUMMARY
The world continues to consume more and more bandwidth as digital activity for both enterprise and consumer applications move to “the cloud”. The companies behind these services – including the likes of Facebook, Google and Microsoft – continue to grow at nearly astronomical rates in an effort to keep up with demand – pre-
senting numerous opportunities for the submarine fiber industry to provide new infrastructure for the growing digital economy.Data Center and OTT providers are an increasingly integral part of the submarine cable system development process. OTT providers like Facebook, Google, Microsoft – and Amazon in the near future – are moving from capacity purchasers to cable owners. Meanwhile, data center providers work to bridge the gap between the cable landing station and backhaul or interconnection services in an attempt to maximize network efficiency and throughput for their customers by attempting to bring once disparate infrastructure into a single facility. More closely integrating data center and