Data Center Build vs. Buy What are the Advantages and Disadvantages? Tuesday, October 4, :45 a.m.

Transcription

1 Data Center Build vs. Buy What are the Advantages and Disadvantages? Tuesday, October 4, :45 a.m.

2 PLEASE SILENCE YOUR CELL PHONES THANK YOU!

3 Moderator: Marco Kuysten, Managing Consultant Steve Finnerty, VP of Sales Speakers: Alex Vaxmonsky, Director, Global l Networks & Mobility Chris Liou, VP of Network Strategy Rajan Palat, Technical Consultant

4 Build vs. Buy Data Center Operations Space + Power Data Center Operations 2011 Advocate Networks, LLC

5 Business Challenge Data Center capacity requirements increasing due to customers desire for more data Traditional evaluation focused on: Space & Power Actual total cost of ownership and operations more complex Space + Power Data Center Operations 5

6 Total Cost of Ownership Space + Power $14M Delta Space & Power Only Total lcost of Ownership Buy Build 6

7 Data Center Operation Components Compare the total stack of Data Center Operations and Total Cost Space Market Place Power Latency Availability Remote Hands Network Administration 7

8 Zayo Learnings zcolo part of Zayo Group: BMM Operator at 60 Hudson with 3 suites Leading carrier hotels in NY (111 8 th /165 Halsey) Extensive in building riser assets Provider of highly customized colo services requiring ultra dense connectivity Broad range of customers; domestic and international carrier, C&E, VAS/Cloudproviders andenterprises enterprises. Operate 11 data centers throughout the country Flexibility and expandability are key to satisfying evolving customer needs One size does not fit all, requirements evolve! Connectivity density a key value proposition allowing customer to implement new services & carrier/providers with minimal cost &time.

9 Challenges at 60 Hudson St Older Carrier Hotel building with extremely high network density (key traffic exchange point in US) Landmark and zoning issues Limitations it ti of roof space for gen and chiller plants Carriers disbursed on multiple floors in private suites Certifications (e.g. fuel handling) Unionized building (electrical, mechanical, elevator, etc) requires planning and volume of work to optimize costs Addressing these issues allows delivery of high value custom colocation solutions for network centric applications i

10 When Companies Should Buy Size doesn t support the build effort (~3,000 sq/ft) Preservation of CAPEX for core business initiatives Business issues require flexibility: Time to market Uncertain growth/demand necessitates scalability Broad geographic footprint required Network and connectivity dense applications (concentration node) Concern regarding OPEX and Processes: Competencies not currently in house Incremental or remote employees versus outsourcing

11 Trends Key Industry Drivers IMPACT BY 2014* 39x 5x 4x 3x MOBILE TRAFFIC: Double every year through 2014 VIDEO: >90% of consumer traffic IP TRAFFIC: 12B DVDs/month SOCIAL MEDIA Twitter and Facebook get more searches per day than Google Mobile platform usage skyrocketing 39x Video and real-time applications growth - 5x IP traffic growth 4x Massive Shift to Virtualization and the cloud 3x GLOBALIZATION: NA business IP traffic 2.3 exabytes/month. Western Europe business IP traffic 2.2 exabytes/month. CLOUD**: 3X revenue growth Data Center Power requirements Globalization of business * Cisco VNI, June 2010 ** Gartner, Equinix Confidential Equinix Inc. 11

12 Your Best Performance Platform Multi-tier architectures enable performance and economies of scale Aligns applications with End-user geographies Delivers 15% faster page load times and 80% reduction in downtime The primary reason for building a new data center on the East Coast was latency. It takes about 70 milliseconds to send a packet across the country. Enables high business continuity with % uptime Optimize network performance and cost Jason Sobel, Facebook Legend Application Hub Performance Radius Service Node Equinix Confidential Equinix Inc. 12

13 Platform Equinix The Gateway to Highly-Profitable Leads The Equinix Marketplace Advantage Aggregation points for rich concentrations of potential retail customers in network- centric industries. Capitalize on growth markets in Mobile, Content & Cloud for tremendous revenue opportunities with high- margin retail services. 6M square feet 675+ carriers 38 markets 13 countries 4,000+ businesses Strategic ecosystems 700+ Cloud & IT 675+ Networks 600+ Financial 450+ Content & Digital Media Equinix Confidential Equinix Inc. 13

14 Optical Bandwidth for Data Centers Optical bandwidth enables multiple forms of DC connectivity Building 2 2 nd Floor Customer prem to DC 1 st Fl Intra DC DC to DC (MAN) Peering/Transit Virtual/Distributed DC DC to DC (WAN) Network virtualization What are today s options? Bundled solutions (DC + bandwidth) Leased circuits / waves Dark/dim fiber & WDM equipment? San Jose Data Center 1 st Floor Optical BW Dallas Pi Private managed network solutions Data Center North Carolina Data Center

15 Bandwidth Build vs Buy Considerations Data Center strategy Location, scale, growth & network bandwidth expectations 40GbE/100GbE evolution TCO Economics [Fiber + Equipment tcapex + Nt Network kopex] vs. [Recurring Bandwidth Costs] Capital vs. operating expense accounting Bandwidth utilization & capital efficiency Digital grooming & switching vs. all optical ROADM Bandwidth Control & Visibility Latency determinism Speed of bandwidth activation Frequency of bandwidth reconfiguration

16 IT Challenges in the Data Center

17 Factors in Deciding to Outsource

18 CONTACT TODAY S SPEAKERS Marco Kuysten marco.kuysten@advocatenetworks.com Steve Finnerty sfinnerty@zcolo.com Alex Vaxmonsky avaxmonsky@equinix.com Chris Liou cliou@infinera.com Rajan Palat, rajan.palat@paetec.com

19 THANK YOU FOR ATTENDING!