1. Chip Freund
Director, Colocation Product
Marketing
50 Shades of Colocation:
The changing nature of the
data center market
chip.freund@centurylink.com

2. A Brief History of Colocation – 1990s Through 2010s
o Defined in Real Estate Terms
o > 500 kW & 5,000 sqft
o Customizable
o Long-term Lease
o Limited Services
o BYO Network
Large Enterprises
Service Providers
Wholesale Data Center
MarketSegmentsBuyers
o Defined Service Agreement
o < 300 kW & 4,000 sqft
o Standardized
o Short/Medium Term
o Broad Services
o Multi-Carrier
Medium Enterprises
Ecosystem Players
Retail Colocation
MarketSegmentsBuyers

3. • New price pressures, competitors
& channels
• Wholesale providers now
competing on enterprise deals
to aid in growth & share
• Retail providers competing on
larger deals as customer mix
shifts toward service providers
Gartner Describes Market Transition
“Increasingly this wholesale/retail distinction is less
relevant as wholesale providers move downstream to
supply smaller and more granular spaces along with
custom services, and the larger retail providers are
looking upstream to sell larger and larger chunks of
their data centers...” - Bob Gill
2013, Gartner, Inc.

4. The Colocation Marketplace Today
o Defined in Real Estate Terms
o > 500 kW & 5,000 sqft
o Customizable
o Long-term Lease
o Limited Services
o BYO Network
Large Enterprises
Service Providers
Wholesale Data Center
MarketSegmentsBuyers
o Defined Service Agreement
o < 300 kW & 4,000 sqft
o Standardized
o Short/Medium Term
o Broad Services
o Multi-Carrier
Medium Enterprises
Ecosystem Players
Retail Colocation
MarketSegmentsBuyers
o Variable Contract Models
o 100 kW – 1MW
o Varying Levels of Customization
o Medium Term Agreements
o Variable Services Available/Included
o Specific Network Requirements
Large Enterprises
Mid-sized XaaS
Internet-centric Companies
50 Shades of Colocation
MarketSegments
Buyers&
Workloads
Buyers will seek to deploy each workload
on the optimal platform and venue

5. What Drove the Change? How Did We Get Here?
Workloads Moving to Cloud
Enterprise Data Centers Closing
Explosive Data Growth
Mobility Adoption
Moore’s Law Continues
There’s an App for That
CSPs & XaaS Growing Fast
Uncertainty of Future IT
Needs
Provider Consolidation
Buyer Consolidation
Slow Recession Recovery
Record Low Interest Rates
Enterprise IT
Shift
Cloud
Adoption
IoT
M&A
Technology
Economy

6. Build
Traditional
Wholesale
50 Shades of
Colocation
Full-Service
Retail
o Powered Shell
o Power & Cooling Systems
o Facility Management
o Establishing fiber connects from carriers
o Containment Management
o Site Security
o Facility Compliance Management
o Rack-n-stack support
o Remote Hands
o BMS & DCIM System Management
o Provide racks & cabinets
o Connectivity to CSPs & XaaS
o Account & Service Management
o Phased Deployment
Customer/Buyer Responsibility
Varies, but likely Customer/Buyer
Varies
Varies, but likely Data Center Provider
Data Center Provider Responsibility
Responsibility by Delivery Type

7. Strengths and Challenges, by Type
Build
Traditional
Wholesale
50 Shades
of Colocation
Full-Service RetailStrengthsChallenges
Control
o Up-front Capital
o Lack of flexibility
o Lack of ecosystem
o Customization
o Geographic presence
o Scale
o Cost of capital (REIT)
Varies
o Pricing (perception)
o One size fits all service model
o Scale
(availability of large blocks)
o Customization
o Services offered
o Lack of flexibility
o Pricing
(quote vs. all-in)
o Lack of ecosystem
o Leading-edge services
o Geographic presence
o Networking flexibility
o Access to ecosystems
Varies

8. Considerations When Selecting a Colocation Provider
Operational Practices
Power & CoolingSupport Services
• Planning, Coordination & Management
• Staffing, Organization & Training
• Operating Conditions & Maintenance
• Strategy & Planning Support
• Migration Services
• Remote Hands
• Facility Design (N+1)
• 100% Uptime SLA
• Room for Growth
Security & Compliance
Connectivity & Services
Access
• Broad Array of Network Providers
• Access to Cloud & XaaS
• Connectivity to Ecosystems
Data Center Location
• Access Control & Practices
• Compliance Certifications &
Strategy
• Proximity to IT Staff
• Proximity to Users / Customers
• Proximity to Ecosystems

9. Thank You
chip.freund@centurylink.com