If you have not received a cost reduction for your outsourced Data Center Colocation provider in the last 18 months you could be missing out on up to a 50% reduction. It is worth going through a formal RFQ process and evaluating options based on: Provider, Geography, Support Strategy, and configuration.

1. DATA CENTER COLOCATION SAVINGS OPPORTUNITY
If you are operating an outsourced Data Center site and have not renegotiated
your contract in the last 18 Months you have an opportunity to save up to 50%
Proposed Presentation Notes:
Silicon Valley IT CIO Forum
Spring 2013
Santa Clara Marriott
Bill Kohnen

2. Data Center Sourcing Strategies
• Geography Drives Center Cost
• Big variations prices from
companies perceived as high end
and others with little real difference
• Capacity of a given provider in a
location
• Do you need physical presence
near data center?
• Technology at a specific site
• Required configuration • Who and where?
• Savings 10%
• Reduction of floor
space and
optimized power
savings of 30%
• Potential Savings
of 50%
• Potential savings
of 30% or more
Provider Location
Support
Strategy
Hardware and
Configuration
Best Total Cost Solution Considers
Conclusion: Many companies cut outsource data center cost in half

3. Region Cost per rack
Washington DC 2700
Bangalore
New York
San Francisco
Santa Clara 1400
Seattle
New Jersey
Oakland
Chicago
Phoenix 950
Virginia
Dallas 800
Jacksonville 550
Cost Per rack by region
Best Total Value
Locations

4. Range of Prices Between Providers illustration
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Washington Seattle
High
Average
Lowest
16 %
16%
53 %
28%

5. Make your current provider answer immediately
• Options to reduce
and improve your
cost and
performance
• Does current
provider have
limitations that
prevent
optimization?
• Ability to
Compete with
lower cost
regions
• Competitiveness
relative to other
providers.
• Past, Present, Fu
ture
Provider Location
Support
Strategy
Hardware
and
Configuration
Best Total Cost Solution Considers

6. You should review your Outsourced Data Center Costs
Data Center Cost often makes up largest portion of IT operations budget.
Data Center space has become a commodity.
If you have not changed providers recently big opportunity to save up to 50%.
If you chose to switch it is common industry practice for your new provider to give
you additional incentive to move.
Even if you stay with your current provider going through a formal RFQ process
will allow you to negotiate a reduction.
There are “free” services that offer to manage the rfq process for you. They get
paid a commission by the data center companies.
The planning and cost to do a formal RFQ and make visits to potential new
places are worth the effort and commissions will go to you as further savings.