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Top 10 Data Center Strategy
Success Criteria
Build, Buy, Colocation or Cloud?
May 16, 2012


Randy Ortiz
VP, Data Center Design and Engineering




                                         #datacentersuccess
Agenda




    What are your data center options?

    Top ten criteria to analyze your needs

    Why flexibility matters

    Questions?




                                             #datacentersuccess
2
End user
              to the
    Performance
                                                IT Vendor

                                                                   IT Vendor
                                  IT Vendor




                                                                IT Vendor
                                        IT Vendor


                                                    IT Vendor
                                                                               IT Vendor



                   Platform
                         Flexibility



                                                                                           #datacentersuccess   3
3
Performance
    to the End user
                                           Platform
                                           Flexibility
          IP Connectivity                     Colocation
          •  Enterprise IP                    •  Space, Power, Cooling
          •  TCP Acceleration                 •  Interconnection


          Content Delivery Network            Hosting
          •  Media Delivery, Transparent      •  Managed Hosting
             Caching, Mobile Delivery         •  Dedicated Hosting
          •  Analytics

                                              Cloud
                                              •  Private Cloud
                                              •  Public Cloud
                                              •  Cloud Storage
    We live and breathe a full
    range of intelligent IT
    Infrastructure services



                                                                 #datacentersuccess
4
What are my options?



                           #datacentersuccess
5
Where do I start? Where am I headed?




           Enterprises tend to migrate their
           infrastructure toward the cloud




    Build, Wholesale,    Managed               Private   Public
    Retail Data Center   Hosting               Cloud     Cloud




                                                         Internet start-ups tend to
                                                         migrate toward more
                                                         dedicated infrastructure

                                                                  #datacentersuccess
6
Four options: many considerations




    Build your own      Wholesale               Colocation                Cloud
     data center      considerations          considerations          considerations

 •  Time to market   •  Consistently        •  Cost-effective       •  Scalability
 •  Capital             high-occupancy         alternative to       •  Zero provisioning
    investment          in large pods          build your own          cost
 •  Capacity         •  Power and           •  Flexible footprint   •  Reduction of IT
 •  Security and        cooling cannot be      up to certain           staff
    asset control       scaled                 dimensions           •  Availability of
 •  Redundancy       •  Strong presence     •  Service level           cloud data
                        in key markets         agreements              centers
 •  Core business
    focus            •  Cash flow           •  Reduce and           •  Overestimating
                        stability              eliminate costs         your needs in the
                     •  Lower operating     •  Meets                   cloud
                        costs                  compliance           •  Does it meet
                     •  Lower price            requirements            compliance and
                        points              •  Customize your          security
                                               requirements            requirements

                                                                    #datacentersuccess
7
Definitions



                              Real Estate        Wholesale                         Retail



                                            Powered
              Greenfield      Brownfield       Shell       Turn-key       Colocation    Hosting/Cloud
Definition   A grassy field       An       An improved   A data center   An improved        Fully
                              unimproved     building                    multi-tenant    outsourced,
                                building                                 data center     no physical
                                                                                         equipment



Generally, greenfield, brownfield and powered shells are traditional real estate models

Turn-key is the core wholesale model, but some wholesalers will offer real estate solutions

Colocation is the most basic retail data center model

Hosting/cloud matches demand most closely, but higher opex per unit


                                                                                #datacentersuccess
8
Poll question




                 How will you handle
                demand for more Data
                 Center Infrastructure
                  over the next 12-18
                       months?



                                         #datacentersuccess
9
Topic: Data center demand trends



     Uptime Institute Symposium Survey: May 2012                                      66%

     How will you handle demand for
     more Data Center Infrastructure
     over the next 12-18 months?”
                                                                    42%



                                         29%          30%

                           24%



            10%
           Deploy          Lease
           Modular       Colocation    Build a New   Deploy to       Update         Consolidate
           Solution        Space       Data Center    Cloud      Infrastructure      Servers




                                                                                  #datacentersuccess
10
Top 10 Criteria to
     Analyze Your Needs


                           #datacentersuccess
11
1. Required availability: commonly known as the Uptime
 Institute s Tier level




              The more available your site,
                the larger the expense.


     Have your carefully evaluated your availability needs to
         avoid over sizing and over designing your data
                             center?




                                                          #datacentersuccess
12
2. Anticipated day one loads and incremental growth




          Track your IT equipment patterns.



        Do you know the power profile of your existing
                equipment and its longevity?




                                                       #datacentersuccess
13
3. Location impacts




       Decide on the most important factors.


        Can you rank what is most critical: close to
     headquarters, DR site, energy rates, power/cooling,
                     carrier diversity?




                                                  #datacentersuccess
14
4. Design and construction consulting and vendor selection




      Selecting the correct team can make or
                 break your project.



      How will you go about choosing a vendor/partner?




                                                        #datacentersuccess
15
5. Life cycle cost modeling




              Data center lifecycles include
                  many components.


      Have you considered your variables for computing,
                facility and financial impacts?
                                                                                PUE
                                             3.5

                                               3.0

                                                   2.5

                                                     2.0
                                                                                                                                                      5
                                                                                                                                                  24 2
                                                         1.5                                                                               2 23
                                                                                                                                   0   21 2
                                                                                                                              19 2
                                                                                                                         7 18
                                                           1.0                                                   5   16 1
                                                                                                        3   14 1
                                                                                              11   12 1
                                                               0.5                       9 10
                                                                                     7 8
                                                                                 5 6
                                                                     -       3 4
                                                                         1 2



                                                                            #datacentersuccess
16
6. Green evaluation to PUE




                 It isn t easy being green.


     Have you quantified the costs associated with going
     green? What are your business requirements for this
                        certification?




                                                  #datacentersuccess
17
7. Modular approach




           Build with the future in mind and
             allow for easy transitions.



         What are your sizing needs now and later?




                                                 #datacentersuccess
18
8. Staffing capabilities




           Building a data center is complex.



        Do you have the personnel needed to operate your
                             facility?




                                                 #datacentersuccess
19
9. Budget analysis




          Corporate expectations and goals
                need to be aligned.


                 Who makes these decisions?
                What about CAPEX vs. OPEX?




                                              #datacentersuccess
20
10. Regulatory impact




       Costs and time increase with specific
             regulatory specifications.


         Do you need to meet industry compliance
     requirements such as HIPAA or data center-specific
                   needs such as SOC?




                                                 #datacentersuccess
21
Why Flexibility Matters



                               #datacentersuccess
22
The Importance of
     Flexibility

                     Speed
        Expertise




                             Flexibility
        Money




                                   Have a clear goal
          Risk
                                      but be flexible in
                    Regul-           how you achieve it.
                    ations
                                                     #datacentersuccess
23
24
     ?
     Questions?


      www.internap.com
     #datacentersuccess


                          #datacentersuccess

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Top 10 Data Center Success Criteria

  • 1. Top 10 Data Center Strategy Success Criteria Build, Buy, Colocation or Cloud? May 16, 2012 Randy Ortiz VP, Data Center Design and Engineering #datacentersuccess
  • 2. Agenda What are your data center options? Top ten criteria to analyze your needs Why flexibility matters Questions? #datacentersuccess 2
  • 3. End user to the Performance IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor Platform Flexibility #datacentersuccess 3 3
  • 4. Performance to the End user Platform Flexibility IP Connectivity Colocation •  Enterprise IP •  Space, Power, Cooling •  TCP Acceleration •  Interconnection Content Delivery Network Hosting •  Media Delivery, Transparent •  Managed Hosting Caching, Mobile Delivery •  Dedicated Hosting •  Analytics Cloud •  Private Cloud •  Public Cloud •  Cloud Storage We live and breathe a full range of intelligent IT Infrastructure services #datacentersuccess 4
  • 5. What are my options? #datacentersuccess 5
  • 6. Where do I start? Where am I headed? Enterprises tend to migrate their infrastructure toward the cloud Build, Wholesale, Managed Private Public Retail Data Center Hosting Cloud Cloud Internet start-ups tend to migrate toward more dedicated infrastructure #datacentersuccess 6
  • 7. Four options: many considerations Build your own Wholesale Colocation Cloud data center considerations considerations considerations •  Time to market •  Consistently •  Cost-effective •  Scalability •  Capital high-occupancy alternative to •  Zero provisioning investment in large pods build your own cost •  Capacity •  Power and •  Flexible footprint •  Reduction of IT •  Security and cooling cannot be up to certain staff asset control scaled dimensions •  Availability of •  Redundancy •  Strong presence •  Service level cloud data in key markets agreements centers •  Core business focus •  Cash flow •  Reduce and •  Overestimating stability eliminate costs your needs in the •  Lower operating •  Meets cloud costs compliance •  Does it meet •  Lower price requirements compliance and points •  Customize your security requirements requirements #datacentersuccess 7
  • 8. Definitions Real Estate Wholesale Retail Powered Greenfield Brownfield Shell Turn-key Colocation Hosting/Cloud Definition A grassy field An An improved A data center An improved Fully unimproved building multi-tenant outsourced, building data center no physical equipment Generally, greenfield, brownfield and powered shells are traditional real estate models Turn-key is the core wholesale model, but some wholesalers will offer real estate solutions Colocation is the most basic retail data center model Hosting/cloud matches demand most closely, but higher opex per unit #datacentersuccess 8
  • 9. Poll question How will you handle demand for more Data Center Infrastructure over the next 12-18 months? #datacentersuccess 9
  • 10. Topic: Data center demand trends Uptime Institute Symposium Survey: May 2012 66% How will you handle demand for more Data Center Infrastructure over the next 12-18 months?” 42% 29% 30% 24% 10% Deploy Lease Modular Colocation Build a New Deploy to Update Consolidate Solution Space Data Center Cloud Infrastructure Servers #datacentersuccess 10
  • 11. Top 10 Criteria to Analyze Your Needs #datacentersuccess 11
  • 12. 1. Required availability: commonly known as the Uptime Institute s Tier level The more available your site, the larger the expense. Have your carefully evaluated your availability needs to avoid over sizing and over designing your data center? #datacentersuccess 12
  • 13. 2. Anticipated day one loads and incremental growth Track your IT equipment patterns. Do you know the power profile of your existing equipment and its longevity? #datacentersuccess 13
  • 14. 3. Location impacts Decide on the most important factors. Can you rank what is most critical: close to headquarters, DR site, energy rates, power/cooling, carrier diversity? #datacentersuccess 14
  • 15. 4. Design and construction consulting and vendor selection Selecting the correct team can make or break your project. How will you go about choosing a vendor/partner? #datacentersuccess 15
  • 16. 5. Life cycle cost modeling Data center lifecycles include many components. Have you considered your variables for computing, facility and financial impacts? PUE 3.5 3.0 2.5 2.0 5 24 2 1.5 2 23 0 21 2 19 2 7 18 1.0 5 16 1 3 14 1 11 12 1 0.5 9 10 7 8 5 6 - 3 4 1 2 #datacentersuccess 16
  • 17. 6. Green evaluation to PUE It isn t easy being green. Have you quantified the costs associated with going green? What are your business requirements for this certification? #datacentersuccess 17
  • 18. 7. Modular approach Build with the future in mind and allow for easy transitions. What are your sizing needs now and later? #datacentersuccess 18
  • 19. 8. Staffing capabilities Building a data center is complex. Do you have the personnel needed to operate your facility? #datacentersuccess 19
  • 20. 9. Budget analysis Corporate expectations and goals need to be aligned. Who makes these decisions? What about CAPEX vs. OPEX? #datacentersuccess 20
  • 21. 10. Regulatory impact Costs and time increase with specific regulatory specifications. Do you need to meet industry compliance requirements such as HIPAA or data center-specific needs such as SOC? #datacentersuccess 21
  • 22. Why Flexibility Matters #datacentersuccess 22
  • 23. The Importance of Flexibility Speed Expertise Flexibility Money Have a clear goal Risk but be flexible in Regul- how you achieve it. ations #datacentersuccess 23
  • 24. 24 ? Questions? www.internap.com #datacentersuccess #datacentersuccess