THE MULTI-TENANT DATA CENTER

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1 THE MULTI-TENANT DATA CENTER IS IT RIGHT FOR YOUR ORGANIZATION? Josh Rabina Sentinel Data Center 1

2 AGENDA Introductions The Multi Tenant Data Center What is It? What is Driving Adoption (i.e. Value Proposition)? Questions 2

3 THE MULTI-TENANT DATA CENTER WHAT IS IT? 3

4 THE SIMPLE ANSWER Most Simply, An Assembly of Standalone Data Centers/Server Rooms/Computer Rooms/DR Sites (and associated staff) into a Single-Use Specialized Facility 4

5 KEY INGREDIENTS #1 A purpose-built facility Purpose-built as a modular data center Hardened concrete shell / heavy duty roof (i.e. Natural Disaster Proof) Large areas of raised floor Floor loads and ceiling heights for optimal latest generation server room design Multiple redundant, underground utility feeds Diverse fiber entrances Second source of water to municipal system Capacity for mass diesel fuel storage Convenient location for staff and/or DR access Sensible security characteristics 5

6 KEY INGREDIENTS #2 A master plan for the intelligent provisioning of technical space, workstation areas, power & HVAC Fully-demised and autonomous technical areas Dedicated IT workstations and/or NOC areas adjacent to data center Dedicated UPS System Vaults Dedicated Storage/Staging Areas Distribution B Distribution A 6

7 KEY INGREDIENTS #3 A Large-Scale, Flexible & Modular Plant Enables low-fixed cost growth through all stages of firm life cycle and all future technology evolution; Enables complete autonomy for those who value it. 7

8 KEY INGREDIENTS #4 Experienced On-Site Technicians and Security Personnel Experience in and Enterprise Data Center Environment and a Service Environment Suite of services includes support of basic power, cooling and connectivity ( ping, power and pipe ) and remote helping hand services on an a la carte basis (i.e. fiber/power drops, rack and stack, inventory management, power mapping, data connectivity management, tape rotation, etc ) For larger occupants do it all yourself (including management of dedicated critical facility infrastructure, if desired), rely on staff for surge capacity as desired. 8

9 KEY INGREDIENTS #4 Communications Capacity and Diversity SERVICES NETWORK REACH PRIVATE LINE WAVE LENGTH DARK FIBER INTERNET METRO AREA NATIONAL TRANS ATLANTIC LEVEL 3 RCN VERIZON CTC Others * * ATT, Sprint, XO, Abovenet, GXing, Sunesys, Qwest, Internap available in proximity sufficient to service customers if demand dictates. 9

10 KEY INGREDIENTS #5 Vendor Rich, Vendor Neutral Environment for IT Services IT Equipment/Services Vendor Rich, Vendor Neutral Direct Third Party Service Contracts With No Prohibitions or Exclusivities (Favored/Bulk Pricing Available from Select Vendors) Occupant Premises MIGRATION/ SPACE & LOAD PLANNING Enhanced Infrastructure Services Fiber Diverse Carrier Access SERVER MONITORING/ IP MONITORING / APPLICATION SERVICES / OTHER MANAGED SVCS HARDWARE LEASING SERVICES 10

11 KEY INGREDIENTS #6 A Product Suite That Provides Ultimate Flexibility for Growth in Space (and Power) Secure Cabinets Lock secured Pay for power/fiber as needed Secure Cages (8 x16 ) Key-card secured Holds up to 6 cabinets Pay for power/fiber as needed Workstations can be set up within cages as necessary Fully-Demised Suite 500 to 20,000+ sf Dedicated critical plant, as desired (incl. dedicated Gens, UPS, PDUs, CRACs, etc ) Metered power w/o markup Supporting office areas as needed 11

12 THE MULTI-TENANT DATA CENTER WHAT IS DRIVING ADOPTION AMONG MID/LARGE ENTERPRISE? 12

13 A MASS MIGRATION IS ON Although it didn t happen on internet time, a mass migration out of legacy, officebuilding-contained data centers is underway and accelerating. Why? 13

14 REASON #1 DATA AS LIFE BLOOD The Increasing Importance of Electronic Data Processing and Storage to the Health of an Organization: Electronic tools moving beyond desktop (POS, field and bedside applications, digital imaging and storage, digital record management ) Centralization of content creates hyper-reliance on core data bases, network uptime, and key asset security (electronic and physical) Regulatory attention (HIPAA, etc ) The obvious corollary: Disaster Recovery Downtime increasingly catastrophic Recovery mean time targets falling precipitously 14

15 REASON #2 POWER! Legacy sites built as late as the late-90s, often lack critical infrastructure needed to support high-density UPS power and cooling (room & floor-load for electrical plant, chiller capacity, raised-floor height, diesel fuel permits, etc ) 15

16 REASON #3 BAND-AIDS ARE WEARING THIN The insufficiency of legacy data centers to support the power, cooling and connectivity uptime needs of modern IT equipment Power density 5kW+ per rack with blade deployments Fuel storage (regulatory issue) and prioritized fuel delivery / priority on generators Requires floor loads to support large battery systems Dual feeds and reliable grids Cooling density requires tonnages per sf of 3x or more mid-90s designs Raised floor and unobstructed plenum Redundancy in cooling is just as important as electrical Ceiling Heights / Floor loads The inability of multi-use facility managers to provide the TLC that data centers require Specialized electrical, mechanical and networking skill sets Constant monitoring and reporting Documentation and disaster recovery planning 16

17 REASON #4 FIBER PRICING Precipitous decline in connectivity costs has rendered off-site data processing and storage financially viable (and has enabled geographic diversification of key IT assets). $1,400 $1,200 T-1 Pricing $1,000 $800 $600 $400 $200 $

18 REASON #5 DRAMATIC SCALE ECONOMIES MAKE HAPPY CFOS! Build costs for Tier 4 data centers (at ~100 watts psf) range from $800 sq/ft (for 150,000 sq/ft) to in excess of $1,500 sq/ft of raised floor (for 10,000 sq/ft) $1,600 $1,500 Capital Cost PSF of Raised Floor $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 Scale effects render the construction of data centers with less than 40,000 sf of raised floor highly inefficient. - 20,000 40,000 60,000 80, , , , ,000 SF of Raised Floor Built 18

19 REASON #5 DRAMATIC SCALE ECONOMIES (Part II) 24X7 SPECIALIZED STAFFING (ONE EXAMPLE AMONG MANY) On-Site VP, Ops (CPE, 15 yrs. Experience) On-Site Security Captain (Career in Law Enforcement) High-Level Technicians (10+ yrs. Experience) Mid-Level Technicians Multi Tenant 10,000 sf Standalone Security Guards Technicians On Site 24/7 Loaded Annual Cost/ Cost PSF of Raised Floor At Least 2 $918,000 $7.74 psf Generally 1 (Limits work scope due to skill gaps & safety issues w/ energized equipment) $526,500 $52.65 psf Annual Cost to 10k sf User $77,375 $526,500 19

20 REASON #6: UNCERTAINTY Uncertain in technical facilities purchasing mimics that of technology purchasing Sentinel enables flexibility of phased growth relative to standalone construction, converting fixed costs to variable costs and allowing the avoidance of up front expenditure for uncertain future capacity needs 120% 100% 80% 60% 40% 20% 0% Typical Stand-Alone Data Center Installed Capacity Actual Usage Years From Commissioning 120% 100% 80% 60% 40% 20% 0% 128 First Sentinel Avenue, -- Needham Installed Capacity Actual Usage Years From Comissioning 20

21 REASON #7: NETWORK & PROXIMITY EFFECTS Having access to multiple on-site connectivity and managed IT service providers yields optimal negotiating leverage and resource availability Proximity to full eco-system of IT oriented users and service providers optimizes opportunities for organizational learning 21

22 IN CLOSING The multi-tenant data center option enables a are opportunity to improve quality, lower cost and enhance flexibility relative to a vast majority of legacy alternatives. 22

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