Data Center Services. Uncovering Colocation & Managed Hosting Opportunities

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1 Data Center Services Uncovering Colocation & Managed Hosting Opportunities

2 Agenda What s in it for you? Market overview Product overview Selling colo/hosting Q & A 1

3 What s in it for you? New revenue stream Recession protection Diversified income stream Differentiate yourself from the competition Enhanced value proposition Establish better credibility Maximize share of customer wallet 2

4 Revenue opportunities Pure Colocation Total MRC = $2,000/month x 12 = $24,000/year plus renewals One rack Power Connectivity Managed hosting Total MRC = $20,000/month x 12 = $240,000/year plus renewals Enterprise Colocation Total MRC = $40,000/month x 12 = $480,000/year plus renewals Three rack colocation Network & application monitoring Data back-ups Disaster recovery 2500 sq. ft. Power Network connectivity Remote hands 3

5 The evolution of colocation The increasing reliance on IT and digital communications brought increasing demand for specialized infrastructure to support it. Power Cooling Connectivity Security Redundancy 4

6 Despite recession demand is strong Managed Services Get Boost from Gloomy Economy PHONE+, August 2009 Datacenters increasingly seen as critical business priority echannelline, August 2009 IT Co-location Centers Will See a Boom in 2009 Despite the Macroeconomy eweek, December 2008 US Data Center Demand Outpaces Supply by Three Times Web Host Industry Review, October

7 6 IT market statistics

8 Market strategy In 2010 the growth component is off the table Our goal is to figure out how to increase our share of existing operational expenses Colo projects can be positioned as efficiency initiatives ways for your customers to get more out of their current spending 7

9 Healthcare Government Financial Media Key verticals remain strong in the recession 8

10 What is colocation? Installing IT/telecom equipment into a 3rd-party s data center Colocation can offer: Scalable space Redundant power Efficient cooling Extensive security Network connectivity 9

11 4 tiers of data centers Tier I Single path for power and cooling distribution, without redundant components, providing % availability (29 hours of allowed annual downtime) Tier IV Tier III plus fault tolerance, providing % availability (24 minutes of allowed annual downtime) Tier II Tier I plus redundant components, providing % availability (22 hours of allowed annual downtime) Tier III multiple active power and cooling distribution paths, but only 1 path active, has redundant components, and is concurrently maintainable, providing % availability (1.6 hours of allowed annual downtime) 10

12 Colocation vs. managed hosting No geographic issues Managed hosting Enterprise Web hosting Database management Application hosting Content delivery Client owns and controls IT infrastructure Limited geographic constraints Services are a la carte Ping, power and pipe Geographic constraints Colocation plus Dedicated hosting Server & storage mgt. Network & security mgt. Data protection & disaster recovery Colocation Space Power & cooling Connectivity Security 11

13 How it all fits in CLOUD Application Management Services OS Support Hardware Management Services Network Services Data Center Services 12

14 Power points Power accounts for over half of data center operating costs Power prices vary significantly from state to state Clients may realize up to 50% savings switching from high- to low-cost states 13

15 Curveballs HIPAA United States Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA establishes mandatory regulations that require extensive changes to the way that health providers conduct business SAS70 SAS 70 (the Statement on Auditing Standards No. 70) defines the standards an auditor must employ in order to assess the contracted internal controls of a service organization PCI compliance Payment card industry (PCI) compliance is adherence to a set of specific security standards that were developed to protect card information during and after a financial transaction. PCI compliance is required by all card brands Disaster-prone locations Miami, Louisiana, Oklahoma Demand for carrier-neutral facilities Carrier hotels are a good example. AT&T, Cogent or Verizon facilities are not carrier neutral Multi-homed bandwidth Copper, Ethernet or fiber handoff with a blend of carriers for redundancy Carriers on net Carriers in the building. If contracted directly with a certain carrier, this could limit your DC options Low latency trading Certain facilities host certain trading exchanges 14

16 Look for companies that... Are current colocation customers Have in-house data centers Need to establish or improve disaster recovery Are struggling financially Have expanding IT needs Need better data security Simply want to leave their service provider In other words, just about all of your clients are prospects! 15

17 Ask your customers... Who handles your IT? Are you currently colocated? Are your colo arrangements under a term contract or month-to-month? If so, when are your contracts ending? Are you happy with your current service provider? If not, why not? Would you like me to get you competitive quotes? 16

18 Ask your customers... Have you experienced any downtime? Are your facilities nearing capacity? What are your provisions for disaster recovery? Have you considered outsourcing your hosting needs to better focus on core competencies? 17

19 Recap What s in it for you? Adding colo & hosting to your service offering can improve your value proposition and your bottom line The market Demand for data center services remains strong, even during economic down turns The products Services range from simply housing, powering, and protecting equipment to comprehensive managed hosting packages Selling colo & hosting Most of your existing customers are colo/hosting prospects 18

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