Dupont Fabros Technology 1Q16 Earnings Call Notes

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A leading enabler of cloud

“A good portion of our leasing in Q1 can be attributed to the exponential growth of our cloud customers. As a leading enabler of cloud, we are encouraged by the continuing evidence of demand for cloud-based services”

CIOs expect to move 50% of their workloads to the public cloud from 16% over the next 5 years

“notably a recent JPMorgan survey of CIOs found that only 16.2% of enterprise workloads are on the public cloud today. The same CIOs expect this to triple over the next 5 years to 50% of enterprise workloads.”

Examples of cloud

“Microsoft announced Azure contracts with BMW and Toyota, to assist in making their cars smarter and more connected. This is in addition to contracts Microsoft has with Volvo and Nissan. BMW is using Azure to power its open mobility cloud for their new BMW connected app. Toyota will use Azure to run Toyota Connected to support in-car services, telematics, Internet of Things, home connectivity and smart city integration. It’s no wonder Microsoft’s datacenter spend is up 65% year-over-year.”

Cloud adoption is expanding in almost every way

“We see cloud adoption expanding at an increasing rate in almost every way. Be it protestant development, storage or compute, the move to the cloud appears inevitable.”

There’s tremendous demand from social media, media, cloud. We’re in the first inning

“there’s a tremendous amount of demand for our product, and it’s the hyperscale cloud providers, it’s social media, it’s media and content, we’re in the very early stages of cloud right now, I’d say we’re in the first inning, so I think demand is going to be healthy over the next coming years.”

Very early stages of cloud

“we are at the very early stages in cloud. So I think you’re going to see more outsourcing to the cloud, that hybrid model that a lot of us talk about, so I would say we’re in the first inning, and two years or three years from now we’ll probably be in the third inning. So I think the pace of lease up is going to continue for the next five years.”