Good morning, this is Cold Isle Insights.
Data centers are where IT, telecom, and infrastructure converge. That’s our focus.

Today’s Big Stories:

1. Google Cloud has reason to celebrate: the colocation giant posted its first-ever profit this past quarter.

2. Quantum Fiber’s “QLoop”: A 43-mile hyperscale fiber ring that connects QL’s massive data center campus.

3. No love for 6G?: Telecom pros still weary of the 5G rollout question the value of relabeling a new generation.

Est. read time: 5mins, 1secs

- Cloud and Colocation -

Google Cloud can celebrate… kind of

Google Cloud, Alphabet's cloud computing arm, posted its first ever operating profit after 15 years in operation.

The division's revenue increased by 28% to $7.45 billion.

However, Alphabet CFO Ruth Porat noted a slowdown in Google Cloud's revenue growth due to customer optimization efforts amid macroeconomic uncertainty.

In comparison, Microsoft's Intelligent Cloud division, /including Azure, reported a 16% increase in revenue, reaching $22.1 billion, and oracle posted a 55% increase, to $1.2 billion.

Alphabet also initiated cost-cutting measures, laying off 12,000 employees (6% of its global workforce) and reducing its office space.

So what?

This is obviously a huge benchmark for the company and signals a crucial milestone for them. However, Google has noted that its revenue growth is slowing, and is slowing across the sector (as we’ve covered.)
It’ll be interesting to see how Google Cloud competes with rivals like Microsoft Azure and AWS moving forward.

- Fiber and Telecom -

Lots of loops for data new center co in Virginia

Quantum Loophole is a data center developer that focuses on centrally-planned master communities that allow hyperscalers to expand their capacities quickly.

GL’s QLoop project connects it’s Frederick, Maryland “data center city” site to Northern Virginia's Data Center Alley with a 40-mile hyperscale fiber ring.
It supports over 200,00 strands of fiber, with less than half a millisecond in RTT.

QL’s plan is to provide enhanced connectivity, capacity, and security for data centers in the area while reducing latency and expediting time-to-market for customers. (Basically, they’re building this huge fiber loop between the QL data center and dc alley, and they’re going to build more data centers on top of it.)

When it’s done, the fiber loop will house more than thirty 2-inch HDPE conduits, and its system-wide bend radius can accommodate 6,912 fibers, facilitating rapid and efficient capacity expansion.

So what?

QLoop has the potential to provide an innovative and efficient solution to the scalability of data infrastructure. Employing a “dig-once” approach to development and deployment, QL thinks they’re going to revolutionize the expansion and scalability of colocation.

- Telecom and Networking -

No love for 6G: telecom pros weary to embrace another label

2023 is anticipated to be a big year in the development of 5G, with over a billion connections and a shifting focus to 5G-Advanced. 
The technology being evolved right now is expected to pave the way for 6G, slated for commercial launch around 2030.

Many are pumped - they see 6G as an opportunity to employ more sustainable design, higher data rates, and AI integration.

BUT… plenty of telcos are frustrated with the returns they’ve seen on their investments in 5G, and are leery of embracing the next G. They want a rethink of the habitual approach of upgrading to a new generation every ten years and focus on technology evolution instead of making a big razzmatazz about each new G.

Because of the general consensus that AI will play a big part in 6G, telcos are arguing that the next generation won’t necessarily involve major changes or innovations to the fundamental waveform. This gives them further incentive to try to pump the brakes on 6G.

Daily Dall-e

Socrates as an 80’s rock star? Eh, we’ll try again tomorrow.

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- Taylor