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Microsoft Invests In Undersea Cable Projects
An anonymous reader writes: Microsoft announced today that it will partner with a group of telecom companies in order to build new undersea cables. A new cable will connect data centers in China, South Korea, and Japan to the West Coast. Microsoft hopes the New Cross Pacific (NCP) Cable Network will improve connection speeds and boost its competitiveness in cloud computing. They also made deals with Hibernia and Aqua Comms, to invest in a cable with each company connecting Microsoft's datacenter infrastructure from North America to Ireland and the United Kingdom. A company announcement reads in part: "Additionally, we joined a consortium comprised of China Mobile, China Telecom, China Unicom, Chunghwa Telecom, KT Corporation with TE SubCom as the cable supplier. As part of our participation in the consortium, Microsoft will invest in its first physical landing station in the US connecting North America to Asia. The New Cross Pacific (NCP) Cable Network will provide faster data connections for customers, aid Microsoft in competing on cloud costs, all while creating jobs and spurring local economies. The goal of our expansions and investments in subsea cables is so our customers have the greatest access to scale and highly available data, anywhere."
Software companies (Microsoft, Google, Facebook) are investing in internet infrastructure because they are out of ideas.
Microsoft continues to have vast amounts of cash; that some of it is going to be used to build some useful infrastructure is a good thing. However the idea that this is best value for shareholders, who surely invested in a software company, is less obvious.
Microsoft continues to have vast amounts of cash; that some of it is going to be used to build some useful infrastructure is a good thing. However the idea that this is best value for shareholders, who surely invested in a software company, is less obvious.
Fundamentally, a large part of what MS is selling today is its cloud services. Software subscriptions, OneDrive, MS hosted Exchange, Cloud computing, etc...
Better data links can be helpful with that. Think load-balancing or parallel processing or insurance against depletion of resources. If someone makes a bad call or an unexpected load comes up rapidly beyond their planned needs, low-latency connections let them offshore the needed resources for a day or two while they work to bring in a few thousand new machines locally, for example.
Data links they control also improve security. MS actually has pretty good privacy policies, people, and security compared to other providers; the more third-party companies involved in that, the less secure it is.
The NSA isnt the problem.
China Telecom
Thats the problem. Look up who they are and who is the hand that feeds them.