Where to locate a Datacentre Support China


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For a multinational wanting to establish direct online presence in China for products and/or cloud based XaaS selection of a Co location Data Center provider is an important decision.

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Where to locate a Datacentre Support China

  1. 1. Asia Based Colocation Data Center Options to Support Customers in China For a multinational wanting to establish direct online presence in China for products and/or cloud based XaaS selection of a Colocation Data Center provider is an important decision. William Kohnen
  2. 2. Assumptions of Discussion • Multinationals wanting to establish direct online presence in China for products and/or cloud based XaaS • There is a desire to locate the data center regionally • Building a data center in China is not an option • Relative to similar requirements in the US overall costs will tend to be higher in Asia so this is not an outsourcing to save cost driven project. William Kohnen
  3. 3. Most Likely Options • Singapore • Hong Kong • China William Kohnen
  4. 4. Hong Kong and Singapore • Mature technology dependent industries such as banking require data centers built based on similar standards as those in the US and Europe • As a result both Hong Kong and Singapore attractive because of: – Stable and adequate electricity supply as well as good backup power, – Telecommunication infrastructure – Security – Rarely suffer from major natural disasters – Both have government support and encouragement for DC industry. Singapore has more tangible support. William Kohnen
  5. 5. Hong Kong and Singapore Concerns • Real Estate Prices High Impacting Cost • Existing Centers constrained for expansion • Outside of China Firewall so potential connection/latency issues • Perception of Chinese partners and officials about not have DC in China William Kohnen
  6. 6. Benefits of Colocation in China • Take advantage of new technology and not be held down by legacy applications and business processes • China has a competent labor pool from which to draw the necessary skills to build and support data center operation. • Inside the China Firewall so less likely for erroneous filtering resulting in interruption of cloud service • Best performance for China based customers William Kohnen
  7. 7. Geographic Distribution of Colocation Data Centers in China 25% 18% 11% 7% 7% 4% 4% 4% 5% 5% 5% 5% Shang Hai Bejing Shenzhen Hangzhou Chengdu Gaoxin Guangzhou Hangzhou Haikou Wuxing Taiyuan William Kohnen
  8. 8. Concerns • Majority of higher end Centers are still concentrated in major business cities • Existing Data center facility design in both Beijing and Shanghai lag behind more mature markets • In these locations, real estate costs are rapidly rising and data center managers need to carefully plan for space if they are to ensure effective use of prime resources. • While labor is less relative to the Silicon Valley, HKG and Singapore others costs are comparable and make up the majority of DC operating expense • Connectivity costs can be significantly higher • Operational standards are not as uniform as in the US • Power constraints • Logistics of purchasing and maintenance of equipment William Kohnen
  9. 9. Upon Deciding To Locate Colo DC in China • Take time for careful review – might take 6 months and multiple reviews and visits • Remember as a general rule starting a new business relationship in China follows a different process • The Basic Elements That Will Impact Total Cost Are the Same as Anywhere •Options to reduce and improve your cost and performance. •Does current provider have limitations that prevent optimization? •Comparing Regions and Countries • Competitiveness relative to other providers. • Past, Present, Fut ure Provider Location Support Strategy Hardware and Configuration
  10. 10. Specific Things To Look At carefully • Make sure to really take time to review a providers actual operation • Identify and areas where the providers are not following your version of standard practice • The most common problem people have faced is not planning for growth and the data centers reaching capacity within a matter of 18 months • Understand the Logistics support for equipment • Look closely at the process for on site support and monitoring • Consider the cost and response time needed when you need to deploy staff to the Colocation site. William Kohnen
  11. 11. Summary • There is no single correct solution • Continuum of choices although with right plan can mitigate Location Start Up Risk Ongoing Support Absolute Cost Performance for China based Customers Singapore Easy Low Easy Highest Good Hong Kong Easy Low Easy High Better China top Tier Challenging Moderate Challenge Moderate to Easy Moderate Best China Lower Tier Difficult High Moderate to Difficult Lowest Good to Better Ultimately best solution might be to work with a large global DC provider to ease into China or if you have a business partner in China you trust have them manage the Colocation sight selection and support . Either way it is important to stay engaged with the process.