Portfolio Approach Critical to Cloud, Colocation and Data Center Investing According to WiredRE
Whether a purchase or lease (aka Build vs Buy), WiredRE advocates for decision making based on cost of capital and by who’s best suited to manage risk.
Las Vegas, NV – May 8, 2014 – Wired Real Estate Group Inc. (“WiredRE”), the nation’s leading cloud, colocation and data center investment advisor, presented at Data Center World on finance and development to promote thought leadership around data center investing. WiredRE CEO recommended a portfolio approach to infrastructure investing, advising the combined use of cloud, colocation, and data centers, and spreading planning, performance, and obsolescence risk across each platform.
“With technical obsolescence and over-provisioning common, history shows cloud, colo and data center investing is a high-risk arena,” commented Everett Thompson, CEO, WiredRE. “Mature enterprises should take a portfolio approach, investing in cloud, colo and data center real estate, using demand response and forecasting risk as guides for each asset class.”
In light of a maturing industry, and accelerating interest amongst investors, cloud and data center financing costs have dropped dramatically, making enterprise (non-financial) ownership of large-scale fixed assets less desirable. Mr. Thompson went on to say that, “With the average user over-provisioning by 50% or more, this is an issue with large dollars attached. We recommend distributing full compute requirements across each asset class and maximizing the utilization of long-term fixed assets, like real estate, and then using cloud and hosting for load following and as a hedge against risk. These are measurable and concrete guidelines for cloud and data center investing.”
WiredRE has been quoted by the Wall Street Journal and Data Center Knowledge, and is ranked in the top 4% by the Gerson Lehrman Group for colocation and data center investment advisory services.
About Wired Real Estate Group Inc.
WiredRE is the nation’s leading independent cloud, colocation, and data center investment advisor, having advised two of the top three global telecom firms and over half of the top banks in the US in transactions up to $100 million. The firm uses its proprietary research to advise enterprises on strategy, planning, brokerage and finance. The firm represents major developments globally. To search 2,000 data centers, visit our US and International Data Center Lists.