Datacentre Due Diligence - the bottom line


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Irrespective of the type of IT services on which your business is based, be that Cloud, traditional hosting, on-premise or Co-Location, at the end of the line sits a datacentre.

In all but the on-premise variant, Datacentres offer a due diligence paradox, especially when it comes to the large international providers. Whilst the complexity of DataCentre Infrastructure Management (DCIM) is abstracted away from CIOs and the business as a whole, it makes deep due diligence more difficult.

With the large number of Australian based data centres now in operation, and more coming online in the next 12-18 months, Australian Businesses appear to be spoilt for choice. A core aspect of the selection process is being able to conduct a robust due diligence of the entire stack, right through to the bricks and mortar of the date centre itself.

This offers a ‘win-win’ for all parties in that the best of breed Australian based platform and infrastructure players can offer competitive services within the Australian legal jurisdiction with full transparency of their offering, which in turn should help overcome unfounded concerns of risk in the eyes of clients. This also has direct consequences for other areas of the client’s business, such as business interruption insurance to name but one.

In this presentation, Neil Shepherd, Engineering Director of Nutbrook Engineering and Rob Livingstone, both authorities in their respective fields, shared the podium in an open forum in an open forum Q&A session where Rob, as an ex CIO, asked Neil the hard questions as to data centre due diligence from a potential client’s perspective

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Datacentre Due Diligence - the bottom line

  1. 1. HOW TO MANAGE 3RD PARTY DATACENTRE RISK Nutbrook Engineering Group & RLA Advisory
  2. 2. AGENDA• Overview of the Market• What does this mean for CIOs?• Datacentre risks• Heads of Terms (HOT’S)• Q&A Nutbrook Engineering Group & RLA Advisory
  3. 3. OVERVIEW OF THE MARKET• Datacentres have evolved significantly in the last 5yrs• Rate of change unlikely to slow:According to Gartner• Data center budgets are not growing commensurate with demand.• Expect an 800% growth in data over the next five years, with 80% of it being unstructured.• Tablets will augment desktop and laptop computers, not replace them.• Data centers can consume 100 times more energy than the offices they support.• The cost of power is on par with the cost of the equipment.Gartner 31 January 2012 ID:G00229650
  4. 4. OVERVIEW OF THE MARKET• Demand for ICT related services is growing across the board, fuelled in part by compute demands from mobile devices• Resultant is an increase in demand for High Density premium assets• >$2 billion of investments in data centres announced in the first half of 2012
  5. 5. OVERVIEW OF THE MARKET• Datacentres • Dramatic changes in less than a generation
  6. 6. WHAT DOES THIS MEAN FOR CIO’S?• The challenges for CIO’s and CFO’s are becoming more and more strategic• The expectation is to do more with less• CFO’s know that that IT budgets are uncertain• Why Shift from internal to external DC’s?• Moving your equipment off-site? Nutbrook Engineering Group & RLA Advisory
  7. 7. DO I HAVE A RISK PROFILE? Nutbrook Engineering Group & RLA Advisory
  8. 8. CIO’S & POWER Risk or Opportunity??Source - Fujitsu 2012 Nutbrook Engineering Group & RLA Advisory
  9. 9. DATACENTRE RISKS*India’s ministry of powers vision statement - Reliable, adequate and quality power for all atreasonable prices. Nutbrook Engineering Group & RLA Advisory
  10. 10. SO HOW CAN WE MITIGATE OUR RISK? Nutbrook Engineering Group
  11. 11. HOT’S (HEADS OF TERMS)• Comprehensive list of terms to protect the client – rolls up to form a subset of the agreement Important to specify your requirements and your conditions• Reason:• Important as ‘No’ Australian standards apply • ISO 27001 – does not relate to the physical building itself• Technology Industry Association (TIA) 942 - guideline only Nutbrook Engineering Group & RLA Advisory
  12. 12. Q&ANeil Shepherd – Engineering Nutbrook Engineering Group & RLA Advisory