Stringing together a cluster of 30,000 processing cores, Amazon’s EC2 or Elastic Compute Cloud has managed to achieve the rank of 42 in the top 500 supercomputer ranking of the world. Granted, it isn’t the first in performance with a score of 240 trillion calculations per second but it is by no means an average performer either. The main point is that it is available to anyone, unlike your usual supercomputer cluster which has been built with a dedicated purpose in mind and therefore has rather limited access (and even longer waiting lines).

Amazon proved this by doing an actual paid-for supercomputing process at a mere $1279 an hour. While this may seem like a lot to some people, the people who have set up an actual supercomputer cluster will be shaking their heads in disbelief (and probably regret!) at the millions of dollars used to create a dedicated supercomputer cluster, much less keep one running. What boggles the mind even further is that Amazon did this while running all of their other Cloud related services at the same time.

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Is your internal data center expensive to operate? Forget what’s in the racks. I’m not talking about servers, networking equipment and storage. I’m talking about facilities: your raised floor, your security, your power, your cooling, your telecommunications infrastructure and your fire suppression. How expensive is it to maintain?

Operating a data center in-house is expensive. Real estate floor space costs, raised flooring, reliable air conditioning systems, specialized security and fire protection all drive up the data center capital costs. Small data centers can easily exceed $1 million in capital up front.

Data center power and cooling redundancy is expensive. Multiple UPS systems are fairly common. Dual generators are rare. Rarer still are in-house data centers have two utility feeds. Data center capital costs are high, but the costs of maintaining and operating generators and UPS systems are high as well. N+N data center redundancy (two of everything) is prohibitively expensive for many organizations. You can’t deliver high uptime without power and cooling redundancy, yet uptime requirements continue to rise.

Staffing is expensive. Do you dedicate half an FTE or more to the maintenance of the data center?

Data center compliance and certifications are expensive. SAS70 (Now SSAE 16) data center certification audits start at about $20,000. Other certifications like the Uptime Institute’s Tier IV data center certification can cost more.

Not only are the data center capital and operating costs high, they’re also unpredictable.

How do you control costs?

Wholesale colocation offers an interesting solution. Wholesale data center providers build and operate high-tech real estate. Here are a few of the reasons that organizations choose to outsource the data center facilities.

You can rent the space you need in these giant data centers.

You can still have full control of your IT equipment and telecom infrastructure.

You can benefit from N+N data center redundancy in power, cooling, and telecom to improve uptime.

In a select few outsourced hardened data centers, you can protect your mission critical systems from F5 tornadoes and other regional risks.

Some Midwest colocation providers offer you access to multiple telecommunications providers with no cross connect fees. You can build telecom hubs to better manage the money spent on telecommunications.

You can trade capital costs for operating costs.

You can build a highly predictable cost model that allows for growth and change.

Sick of getting nickel and dimed to death? Call the outsourced data center experts.

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Your expertise on applications, software architecture, network, server and storage design is not expertise on building tier IV data centers with 99.995% uptime.

Likewise, experts on mission critical facilities like hardened data center buildings, data center power redundancy and cooling are rarely experts on mission critical systems and applications.

A best-of-breed CIO strategy would include expertise in both information technology systems design and highly available data center facilities. How is this done?

If your organization likes to “roll your own” enterprise data center, you probably hire design/build experts to help you accomplish your goals of high data center uptime. Although the capital costs associated with in-house data centers can be enormous, internal data centers offer the highest level of control.

If your organization is considering outsourcing the facilities disciplines, wholesale colocation offers a simple way to offload the “landlord” side of the data center without losing control of the systems.

It’s often best to outsource data center facilities when you’re great at IT but not so great at building data centers.

Midwest colocation facilities like Lifeline Data Centers offer F5 tornado resistant buildings,N+N power and cooling redundancy, and access to many telecom providers. Midwest data centers offer low power costs also give you peace of mind that you’ve done the best job at solving the data center downtime problem using an affordable colocation solution.

Are you trying to be an expert in both facilities and IT? Talk it over with the mission critical facilities experts.

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Your purchasing department would probably say yes. Your legal department might too. One throat to choke. They’re looking at the problem from a vendor management perspective, and fewer vendors is better. Or is it?

Ask yourself these questions:

What if you love the data center facility but the quality of the IT services offered are marginal?

What if you already have vendors for specific IT services?

What if you prefer to choose best of breed vendors for specific projects and technical support?

What if your staff does most of the IT work?

Would it be more sensible to separate the choice of data center provider from the choice of IT services provider?

Most companies that choose wholesale data centers over self-built data centers make the decision based on the uptime they get per dollar spent. That’s because these pure data centers, also known as wholesale colocation, concentrate on one thing: mission critical facilities. 99.995% uptime requires incredible attention to detail with hardened data center buildings, redundant power, cooling, telecom access, and data center regulatory compliance. But not all colocation providers are alike; data center reliability varies greatly based on the companies power, cooling, telecom systems, and compliance. If data center uptime is important, then the sensible approach would be to pick the best-designed facility for your needs.

Does it make sense to reject the best-fit data center facilities provider because they don’t do router work, or AS/400 support, or eCommerce platform support? The answer could be yes. It depends on your organization’s applications and your own staff’s talent in supporting these business-specific applications and their platforms. When considering full-service providers, make sure that you understand the quality of the data center behind the provider’s services. You have the option to pick your own wholesale colocation facility and require your vendors to support the hardware in your colocation space.

If you’re purchasing rack space from a full-service provider, you may be paying too much for your colocation space. Especially if your provider maintains a large staff of IT Support Engineers. Bench time is expensive, and unless these Engineers are fully utilized, your rack space pays for part of the Engineers’ wages. Make sure you consider competitive pricing from other colocation facilities. Data center pricing models are excellent indicators of what vendors value and how they handle their overhead.

Your outsource data center provider does not have to be your IT services provider. You have options. You can choose the best among data center vendors with a little homework.

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Some studies have shown that a little over half of commercial organizations will be faced with a change in their primary data center in the next five years.  These companies usually move because they are faced with a shortage of data center space, data center power or data center cooling. Some will be moving the data center because the headquarters is also moving   Are you considering moving your data center?.  If so, you are probably considering outsource computer room facilities as well as the alternative of building your own computer room.  Is there value in outsource data center facilities? Are outsource data center costs lower than building your own?

The answer is often yes.  Unless your company has in-house expertise on building mission critical facilities like data centers, there may be great value in considering outsource data centers.  Data center capital costs can be outlandish, even for a small computer room.  The cost of building facilities with uptime levels that are comparable to Uptime Institute Tier IV data centers is even higher.

Ask yourself these questions:

What level of data center uptime does my company require?  If the company needs 99.995% uptime or better, you should consider outsource data center.

What level of mission critical facilities expertise does my company have on staff?  Is the company prepared to build and maintain facilities in-house?

Does it make more sense to trade data center capital costs for operating expenses?  Is the cost of capital too high?

Does data center compliance play a role in my company’s decision?  Outsource data centers with a focus on compliance can solve problems that cost a company tens of thousands of dollars to handle on their own.

Do you have more questions?  Call the outsource data center and compliance experts at Lifeline Data Centers.

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IT staff are good at supporting applications. They are usually talented at designing reliability into your most important business software: application, server and connection redundancy, along with data replication and fail-over procedures. How good is your staff manage the facilities side of reliability?

The lion’s share of outages are related to data center downtime. Power, cooling, security, fire suppression and building failures account for the majority of outages in the enterprise data center.

Large and small companies alike are investigating alternatives to the in-house data center. Some consider outsource data center facilities for high data center uptime (high reliability). 99.995% uptime (27 minutes of downtime per year or less) is the level expected of tier IV data centers. Many CIOs feel that their most mission critical applications require mission critical facilities with 99.995% uptime.

Selecting outsource data center facilities can be tricky. Also known as colocation facilities, these outsourced data centers come in a variety of shapes and sizes. Some focus on IT services. A few focus on providing high-tech real estate with flexible options, so that savvy IT organizations can grow and change without barriers.

Wholesale colocation facilities like Lifeline Data Centers in Indianapolis, Indiana

• Affordable colocation
• 99.995% uptime
• Hardened data center facilities
• Low data center power costs
• Pay as you grow rack and power pricing
• Fifteen telecom carriers in a carrier-neutral data center
• No monthly cross-connect fees
• SAS70 data center compliance
• Data center compliance: HIPAA, FDA, NIST and TIA 942 compliant data centers

Need more reliability? Use wholesale colocation facilities. Leverage decades of experience at Lifeline Data Centers, 317.423.2591.

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Reuters has reported that Gartner is forecasting server shipment growth percentage in the range of mid to high single digits for 2010; the research firm predicts that the revenue growth rate will lag slightly behind shipment growth, however. These encouraging numbers follow a rather dismal 2009, which saw server revenue decline by 18.3%, with a unit shipment decline of 16.6%, according to Gartner. Research firm IDC estimates server revenue decline at 18.9%, down to $43.2 billion, with unit shipments down 18.6% to 6.6 million units. Thus, IDC’s estimate suggests that unit shipments and revenue kept fairly close pace in their decline, despite Gartner’s estimate that revenue demonstrated a larger percentage decrease than did unit shipments.

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PwC is looking for IT professionals to fill vacancies on its network operations, security and facilities staffs, for example. Some positions are suitable for those with just a bit of experience while others require a much richer IT background, says Rick Ancona, deputy U.S. CIO and CTO at PwC, a professional services firm with U.S. headquarters in New York.

“The problem is, not that many people out there right now are versed in the data center of today,” he says.

By “data center of today,” Ancona means a highly automated, dense and virtualized IT infrastructure that relies on the most advanced electrical and mechanical components for ultra power efficiency.

The modern data center demands that IT professionals understand multiple disciplines as well as the facilities infrastructure — and that’s one of the big issues giving rise to the hiring difficulties.

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In turn, businesses like Digital Realty Trust — which offers move-in ready, enterprise-scale data center facilities that include security and rack-ready raised floor space with redundant power, cooling and network infrastructure — find they can’t get new space online fast enough to meet demand. These firms, sometimes called wholesale data center facility operators, typically cater to large enterprise customers and high-tech firms that need large amounts of floor space.

For its part, Digital Realty Trust has begun focusing more on the enterprise data center market by offering custom data center design, construction and management services. Some enterprises are also working through co-location providers, which provide smaller, caged space in a shared facility and offer less flexibility on the design.

The increased demand for leased data center real estate is being driven by reluctance on the part of IT, and on their executive management, to make the capital investments needed to buy and build the infrastructure for themselves.

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CIOs have used outsource data centers for years to drive higher uptime and reap the benefits of lower data center capital costs. Now, many companies are using outsource data center facilities to keep compliance costs under control.

Physical security is one of the main data center compliance benefits that outsource data centers provide. Outsource data center facilities employ multiple levels of physical security to meet state and federal regulations. It’s usually less costly to “rent” the physical security than to build physical security and managing the ongoing physical security costs in-house.

Some data center compliance centers around service levels, or uptime. High reliability for enterprise computer systems can only be achieved in “mission critical facilities” that employ N+1 data center power redundancy and other tier IV data center characteristics. Service levels of 99.995% uptime (27 minutes of downtime per year or less) can be be found in affordable colocation facilities. The cost of building an enterprise data center with similar levels of data center uptime usually reaches into the millions, even for a small facility.

Data center compliance pressures are coming from vendors and clients as well. Many companies now require that vendors and clients operate SAS 70 data centers, TIA 942 compliant data centers, tier III or tier IV data centers. The cost of maintaining these certifications alone can pay for outsource colocation facilities.

Would it make more sense for your organization to use compliance-centered outsource data center facilities rather than building and maintaining your own? Call the data center compliance experts to learn more.

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