Category: Data Center

Multiple Region Data Center Deployment Made Simple

Many businesses struggle to find data center solutions that are both cost effective and flexible. MicroCorp partner Open Spectrum was challenged with finding a data center deployment solution that filled both of those requirements for a national, outsourced IT service provider with headquarters in the Bay Area and offices across the United States.

The Initial Mismatch

In early 2011, this client began an RFP process with the specific purpose of seeking a managed hosting provider to serve as the backbone for their core production environment serving hundreds of SMEs across the country. They had vetted and aligned a hybrid hardware/colo and elastic hosting (AWS) solution that could help, although they were unsure of where to put their infrastructure for sub-2 millisecond AWS access to ensure bottlenecks would be pushed out much further down the road.

The customer proceeded to spend just under a year trying to develop a working platform from which to operate. In the end, they were able to bend the environment and the service provider successfully to their bidding, but the solution proved to be far more costly and less flexible than initially sold and expected.

A More Flexible, Cost-effective Data Center Deployment Solution

At this point, the client brought on a new team to assess the possibility of simplifying and centralizing the production facilities. After crunching the numbers, it was determined that due to their scale, they could see significant cost savings and greater flexibility and control by bringing the solution back in-house. Leveraging a few regionally optimized points of presence would make this possible.

One of the client’s engineers realized that the data center search on which they were about to embark was going to be highly challenging, given their list of needs and the timeline they were under. At this point, the concerned engineer recommended that the client contact Open Spectrum.

Data Center Deployment Problem Solved

Open Spectrum determined that working with a single provider across all locations would drastically reduce the time needed to negotiate terms, SLAs, and pricing. Once the first round of conversations were complete, Open Spectrum compiled the data and presented it to the client, along with objective advice as to what they believed the pros and cons were as related to each option.

When all was said and done, the client decided they were most comfortable with the team and facilities provided by Latisys, a national data center and managed services provider with facilities in Ashburn, Chicago, Denver, and Irvine. Ultimately, Latisys was able to provide the client with with everything they needed for their data center deployment:

  • Flexibility on deal terms, expansion rights, pricing, and more
  • A unique and cost-effective metro cross-connect solution to the local IX
  • Access to nearly every carrier present in the specific region without the costs associated with a physical presence within the IX itself

With Open Spectrum’s expert assistance, a process that would have surely taken the client at least two months to complete on their own was completed in just two weeks, and most of that time was spent after the provider was already selected.

At MicroCorp, we ensure our partners’ customers are always taken care of, including those in need of a multiple region data center deployment. Our People Powered Network™ is nothing short of the most powerful combination of back office, systems, people and support offerings in the industry. Contact us today to talk about how we can help you grow your business, or set up time to meet with us at Tech+Connect 2.0 in November.

Cloud Technology Provides Opportunity for Data Centers to Reorganize

Learn how cloud services are helping data centers reorganize.The days of major data center expansion are numbered. That’s what a recent survey by 451 Group’s Uptime Institute indicates may be the result of increasing traffic in the cloud. Companies are no longer stretched thin at their data centers, but are instead looking for ways to reorganize them now that the cloud is relieving storage space problems.

The survey included a variety of executives from traditional enterprise companies, including IT directors and facilities managers from retailers, banks, and manufacturers. Here are some of the key findings about how data centers are being impacted by increasing cloud software and storage investments:

The shrinking isn’t proportional: The expansion of cloud technology and investment in software in the cloud has resulted in companies feeling a bit of relief in their data centers. Storage options available in the cloud mean that IT departments may experience a little less push to keep expanding data storage. In most cases, however, this relief is not experienced at the same pace that cloud investment is growing.

Capacity planning is still a big investment: Almost half of the respondents responsible for facilities were working on upgrading infrastructure, cooling infrastructure, and improving power availability as part of their capacity planning strategy.

New data centers are still springing up: 30 percent of respondents were involved in plans to build new data centers.

Getting more out of existing data centers: While many companies are using third-party vendors to handle increasing demand for data storage, they are also focusing on improving support for existing on-site systems. An IT director is no longer seeking out a $50 million investment in a data center, but is instead asking for smaller amounts to improve the data center that’s there. In most cases, it’s turning out to be easier to get approval for investments in supporting and protecting the legacy technology.

IT teams work with various solutions to handle demand for storage: The survey revealed that 40 percent of respondents will work to consolidate servers in the next year and 33 percent will deploy additional workloads to the cloud. Thirty-three percent of respondents say they will update or upgrade their existing physical infrastructure.

While the cloud provides solutions for a wealth of processing and storage challenges, companies are recognizing the need for continued investment in on-site resources. Cloud storage provides much-needed relief for over-stretched data centers and allows IT teams to focus on improving support and security for their legacy systems.

Want to know more about how cloud is affecting the data center? Check out MicroCorp’s Data Center Market Report library for industry expertise.

To learn more about how the cloud is impacting the IT practices of individual companies like yours, talk with our specialists at MicroCorp, experts in cloud, connectivity, and communications.

Expanding Data Center Trend Continues

Learn how channel partners can stay ahead of the data center industry's growth.The data center industry continues its rapid growth in 2017 to meet the storage demands of existing robust cloud providers. At the same time, the vacancy rate of U.S. data center space is 4.6%, according to real estate brokerage firm CBRE. Even though tightness remains for server capacity, there is still much more data center development on the way.

Geography of Expansion

Most of the construction going on in 2017 for new data centers is in Northern Virginia, which is expected to add 121 MW of power. Other key places for larger data space include the Dallas-Fort Worth area and Silicon Valley in California. According to CBRE, about 271 MW of capacity is being built in big metropolitan areas, of which 160 MW is under construction without signed leases from vendors.

Will Expansion Pay off for Cloud Providers?

Data center facility owners are expected to do well in 2017 in terms of a balance between supply and demand, according to real estate experts. It appears to be a positive move for modern data centers that can offer a multitude of cloud and managed services. As owners of traditional data centers move into outsourced data centers, the door will be opened for more vacant facilities to be sold.

In 2016, data center asset sales reached $1.78 billion with an average price per square foot of $275. Acquisitions that had not yet closed by the end of the year included Equinix’s purchase of Verizon data centers in the Americas and CenturyLink’s proposed acquisition of BC Partners and Medina Capital. Data facility owners with the greatest potential to capitalize on rising demand for network connectivity and pricing are those in heavily populated areas.

What Expansion Means for IT

The IT industry is challenged by tight budgets and limited space. That puts IT firms in a position to make one of three choices, according to CenturyLink:

  1. Construct a new facility
  2. Upgrade an existing data center
  3. Outsource with a trusted provider

The key factor in choosing what to do to meet growth challenges will be for IT companies and the businesses they serve to evaluate costs together. The increasing emphasis among businesses on big data and analytics is part of what’s fueling this steady expansion. Other reasons for this growth include:

  • Demands to replace outdated technology
  • The trend toward globalization
  • Mergers and acquisitions, and spinoffs that require more space
  • Increasing interest in more disaster recovery server space

Conclusion

MicroCorp has been supporting MSPs, VARs, and agent partners for over 30 years. If you’ve run out of server space or need a more efficient data center solution, contact us to learn how we can accommodate your technology needs.