QTS Realty Trust, a leading datacenter solutions provider, recently announced its plan to redefine the organization by creating digital communities that can enable enterprises to directly interact with cloud, digital media and e-commerce companies.
The digital communities of QTS leverage an SDDC (software-defined data center) experience, which helps customers to interact and control their hybrid IT environment physically and virtually in real time. SDDC is a datacenter service where all the infrastructure is virtualized and delivered as a service.
QTS provides a Service Delivery Platform, an automated and cloud-based approach, which allows enterprises to gain in-depth insight into QTS solutions within the IT environment.
As a part of the redefining initiative, QTS will stop selling some of non-core products from its C3 custom products portfolio. The C3 portfolio, which currently consists over 100 products, will be reduce to only 15. The non-core products include dedicated cloud, specific managed services, etc. The elimination of products will help QTS to reduce the complexity within the business.
The non-core customer contracts will be transitioned to a strategic partner for customer support.
The company said that Hyperscale and Hybrid Colocation drove the maximum organizational growth. QTS will refocus its organization and salesforce on these key drivers to speed up momentum and growth.
“Today we are launching a restructuring plan to position QTS for accelerated future growth by re-focusing our organization around the two primary drivers of demand in our business, Hyperscale and Hybrid Colocation,” said Chad Williams, Chairman and CEO – QTS. “In addition, by simplifying our business and cost structure we anticipate achieving a meaningful increase in our profitability and long-term value for shareholders.”
QTS’s current COO of Sales and Marketing (Dan Bennewitz) will retire this year, and a new Chief Revenue Officer will lead both Hybrid Colocation Sales and Marketing. The current EVP of Sales (Tag Greason) will continue to lead Hyperscale sales team. The former C1-Wholesale sales team will now focus on top 30 Hyperscale accounts. It will accelerate the momentum in Hyperscale vertical, the company said.
David Robey, leader of QTS property development, sales and engineering, will now assume the role of COO as well. Whereas, Jon Greaves, CTO at QTS, will additionally lead Hybrid Colocation business as well.
“Our restructuring plan allows QTS to re-focus 100% of our resources on the two strongest growth drivers in our business and accelerate value creation for shareholders. In addition, this realignment creates an opportunity for several of our leaders to step into more substantial roles and help lead QTS into our next phase of growth supported by Hyperscale and Hybrid Colocation,” concluded Williams.
Additionally, QTS will also work on initiatives to reduce costs across several areas like rent expense, software licenses, communication expenses, hardware depreciation, personnel, etc.