The growth of cloud and mobile applications, connected devices, data analytics and global connectivity have radically changed the IT landscape, having a profound impact on the businesses driving it. These businesses are experiencing an explosion of data causing an immense consumption of IT infrastructure and creating a class of company with data and compute needs far outpacing traditional enterprise companies.
Demand for hyperscale capacity is growing rapidly with recent industry research forecasting the Hyperscale Data Center market growing from $86.97 million in 2016 to $359.7 billion in 2023.1 The IoT and the growth of cloud and compute-hungry applications such social media platforms, mega-scale online retailing, and artificial intelligence applications are driving demand for compute capacity to unprecedented levels. (source: Hyperscale Data Centers: Market Shares, Strategies, and Forecasts, Worldwide, 2017 to 2023. Published by ReportsNReports, January 2017)
QTS’ position as a Hyperscale Service Provider
Through QTS’ national platform of mega scale data centers, we are able to satisfy the needs of these hyperscale customers through both large wholesale capacity deployments, as well as, through smaller blocks of space that are scalable over time to meet their more immediate needs.
QTS Data Centers has been a provider of multi-megawatt deployments to high-growth cloud and SaaS companies for over 10 years. QTS hyperscale customers include some of the world’s largest cloud providers, social media platforms and Internet companies. Today four out of five of the largest cloud providers are QTS customers. QTS’ bilateral hyperscale strategy was engineered specifically to meet enterprises’ requirements for speed, flexibility, visibility, economics and operator excellence. The first approach is QTS HyperBlock, deploying two megawatts in 120 days or less at any of its mega data center locations.
Proven Operational Excellence
QTS has the unique combination of maturity and innovation required of a Hyperscale Service Provider to meet these growth strategies. Elements of these strategies include:
- Speed – Hyperscale companies require an optimal mix that includes speed of deployment and speed of daily operations. Often needing fast provisioning of 2, 6, 20, or 50+ megawatts, these companies need a partner with the inventory and scale to match their needs. In addition to time of delivery, Hyperscale companies have a need for speed that spans logistics (dock to rack), contracting, access to information, maintenance, incident resolution and reporting, among a myriad of other requirements. QTS can deploy 2MW at any of our mega data centers within 120 days.
- Flexibility – QTS recognizes that customers are operating at the speed of the Internet. There are nuances in their business model that require flexibility that covers power delivery, usage, contracting, SLA’s, and day-to-day data center operations.
- Competitive Economics – Data center value extends well past the cost per kW. Hyperscale customers require predictability and tremendous economic value around Total Cost of Ownership (TCO). QTS understands what it takes to operate at scale. This knowledge, combined with the ability to spread costs across a large inventory, enables customers to garner value in upfront pricing and the ongoing operational costs of their environments.
- Proven Operational Excellence – Hyperscale companies need a partner that can deliver the same operational excellence that they have come to expect from their own centers. QTS’ industry leading NPS scores are a testament to the importance placed on process, procedure and customer communication.
- Ultimate Visibility – Transparency spanning the delivery of important usage data via Service Delivery Platform (SDP), time to provisioning, maintenance windows, all the way to simplicity and clear understanding of pricing/billing.
Current Hyperscale Deployments
Hyperscale buyers employ distinctive data center growth strategies that can include “availability zones/nodes” in strategic regions, edge strategies, or simply raw economic requirements. QTS has been solving the needs of hyperscale customers for over 10 years. Current deployment use cases include:
- Availability Zones – QTS solved for a three-node delivery strategy for large-scale social media company. This solution included 20+ megawatts, super economics, and a highly efficient PUE design.
- Edge Strategies – Multiple companies have taken advantage of QTS’ optimal footprint of data center locations across the country. This includes a solution for an emerging cloud player that was afforded the flexibility to start with smaller deployments with a path to 10+ MW edge deployments in multiple locations.
- Raw Economics – QTS’ mega data centers allow hyperscale companies the comfort of practically unlimited expansion with upfront and long-term economics. A large cloud provider has taken advantage of edge deployments in population centers while using the supreme economics provided by QTS Richmond for larger compute needs. QTS also has a keen understanding of local, state and federal tax incentives and has worked in concert with Hyperscale companies to provide immense tax savings on equipment and labor.