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| November 2009 |
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Out Front With Advocate Networks Trends in Data Centers - Impacts of the Recession By Scott Fogle, While attending the Hosting Transformation Summit in Las Vegas last month, I had the opportunity to listen to a wide range of industry participants (data center operators, vendors, consultants, industry analysts, bankers and venture capitalists) and compare their experiences with my own in the data center industry. • Clearly, the recession of 2008-2009 dramatically slowed or completely stopped many enterprises' plans to expand data center infrastructure. Conversely, data center operators experienced strong growth in collocation services sales - a 5-percent increase in the second quarter of 2009. Most attendees agreed: as data center infrastructure needs grow, enterprises are turning to collocation providers instead of building or expanding their own data center space. • According to Dan Golding, Director of Research at Tier 1 Research, "the recession has started a sea change - enterprises are realizing they should not build data centers, but should look to data center operators to provide the robust platform for new computing platforms." Golding attributed this to several factors, chiefly the continued constraints in the credit markets that are limiting enterprises' abilities to fund data center builds. • Several sides took their positions on cloud computing. Vendors, including Microsoft, touted the advantages and benefits of this new architecture, while Golding pronounced it to be pure hype, explaining that no providers are making money in this today. I believe advances in hosting services will continue to evolve, and cloud computing is just the latest label. • Utilization levels in most collocation provider data centers are high, and most data center operators are seeking funds to continue to build out. Atlanta has seen the opening of at least two new, large collocation facilities in 2009 by Verizon Business and Quality Technology Services. Golding commented that data center operators should pursue the "field of dreams" strategy - he said, "Build it and they will come." While I do not agree with this approach, I believe these data center operators will do well as more enterprises seek to rent data center space and avoid the capital costs and time associated with building or expanding internal data center operations. • There was also significant debate on the proposed "Cap and Trade" legislation going through the U.S. Congress during this session. The overwhelming view by most I spoke with at the summit was that owners and operators of data centers will be a huge carbon tax target. In fact, several people commented that Cap and Trade would spawn a new industry with services and tools for tracking and reporting on carbon output and carbon offsets at data centers across the country. We continue to recommend that enterprises carefully evaluate data center options, create a roadmap based on business and technical requirements, build a business case to consider the financial impact of "build vs. buy," and be sure to look at all the data center options available in the market. For more information about data centers, please contact Scott Fogle at (678) 987-5990 or scott.fogle@advocatenetworks.com. |
 In This Issue
Customer Spotlight: Univision Communications
"Yes, this is quite a feat. Thanks for your tenacious work, expertise and guidance throughout the process. Congratulations on a job well done. It is a privilege working with such a fine group of professionals." -Lindsey Johnson, Director of Technology Strategic Sourcing & Procurement, Univision Communications Arm Yourself against Carrier Reorganization By Rob Stewart, Managing Consultant, In today's economy, and particularly in the telecommunications market, structural reorganizations are a given. Although the enterprise customer cannot prevent carriers' reorganizations, it can prepare for them to minimize the impact on its organization and service. Many carrier reorganizations are splashed in the press. The AT&T/Cingular and Sprint/Nextel deals are obvious. Others take part with no fanfare, press or official notification. This can be more much harmful to the customer. Verizon Wireless had a significant reorganization in September, but little was heard outside the company. Wireless Asset Management and Tracking By Rajesh Batia, Partner Management Lead, Asset management has become a critical component in the day-to-day operations of several industries. Manufacturers, financial institutions, pharmaceutical services, law enforcement agencies and transportation services are just a few areas that require knowledge of where assets are as well as how to manage those assets in the most efficient ways possible. Knowing where your assets are located at any point during the day is imperative to improving customer satisfaction, meeting regulatory requirements, increasing efficiencies within your operation, and even eliminating theft or loss. Advocate Networks is deploying our broad expertise in wireless services, in partnership with inCode Telecom, to assist clients with the evaluation, justification, selection and implementation of wireless asset management and tracking systems. Read more about wireless asset management and tracking Advocate Networks Announcing New CIO-in-Residence By Scott Fogle, Co-President & Co-Founder,
Ongoing Community Service: Mountain Top Boys' Home Each year, on September 11, the Advocate Networks team supports the mission of the Mountain Top Boys' Home, a foster home for teenage boys in Calhoun, Georgia. This year we had another successful service day at the home with enthusiastic leadership from our 15 Advocate volunteers and Richard Bayersdorfer, a former customer. Our team completed a wide range of projects, including trimming hedges across the property, spreading several hundred bales of pine straw, distributing gravel over the driveway and walkways to control soil erosion, creating a rock creek bed, cleaning up and planting shrubs around a memorial for two volunteers, and pouring a new footer for a basketball post. The landscaping and clean-up work made a significant difference in the property's appearance. We also hope it showed the boys that people care about them and their home. Walter Jeske We lost a valuable member of the Advocate Networks family in October. Walter Jeske passed away on October 12, 2009. Walter served as a Senior Consultant in our Communications and Data Center Infrastructure practice. Walter's relationship with Advocate Networks began in 2002 during his service to Sage Software and continued during his assignment with CDC Software. Walter joined Advocate Networks in 2009. He was a high-energy contributor, always ready to tackle new and challenging assignments. Walter was an excellent technical problem solver and always found a creative and cost-effective solution. We will miss him greatly. Look For Us! GA HIMSS Healthcare Trade Fair & Regional Conference Wireless Technology Forum: General Meeting Creative Growth Group Client Advisor Awards Atlanta Bar Association: Making Sense of the Wireless World
Referrals are always appreciated (and rewarded)! Please contact Marina Harmon at marina.harmon@advocatenetworks.com or call (678) 987-5915 for information about our referral program. To learn how Advocate Networks can reduce your communications expenses, please contact Scott Fogle at (678) 987-5990 or scott.fogle@advocatenetworks.com. |
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Advocate Networks managed a strategic wireless RFP for Univision Communications that resulted in the negotiation of four new carrier contracts. Through optimization opportunities and new contract rates, the project saved Univision and estimated 28 percent on its wireless communications costs.
I am very pleased to announce that Nick Grecco is joining Advocate Networks as CIO-in-Residence effective November 9, 2009. Most recently Senior Vice President of Global Infrastructure Services, Nick will serve in his new capacity and operate out of our Norcross, Georgia location. As CIO-in-Residence, Nick will advise Advocate Networks clients on IT Strategy and Governance, Global IT Planning and Sourcing and Global Data Center Planning. Initially, Nick is working on the "Atlanta Community Data Center" project - an early stage business that will provide purpose-built data center infrastructure for healthcare systems in Georgia.