News & Events
June 2013DICE - Data Center Investment Conference and Expo: JW Marriott, Washington, DC
Overview of our Service Offerings
Data Center Purchases
We can represent our clients on the purchase of a “Greenfield” site, cold shell, powered shell or a turnkey facility. We have also been involved in several M&A transactions where we have acquired another company, their data center and the revenue.
Data Center Sales & Leasebacks
These are solid transactions for enterprises to free up capital and then the new ownership group provides all the “upgrades” required that the enterprise could not previously fund.
This lease could be for a complete shell that the company will then utilize their cap-ex to fit out. A lot of our clients are finding it beneficial to lease old industrial sites that have access to power and fiber as well as key building attributes; such as, ceiling heights and solid wall construction.
In some instances, the client might “masterlease” a complete powered shell or turn-key facility from a wholesale provider.
Basically another form of a lease, but in this case we are arranging for our client to take data center space in a developers or providers facility where data center services are also being provided to other clients. On the larger size (i.e. 10k sf) these can be for complete PODs down to cages and simple rack deployments. Usually in a POD deployment, our client has dedicated infrastructure.
Greenfield Searches & Site Selection
We have an extensive approach for data center site selection which involves much more than simply looking for “good dirt” to build on. First, we get a good understanding of how big the facility needs to be, how much “white space” it needs to yield, power density requirements and connectivity / latency required. Our approach is to then map out the utility substations and determine power availability at each substation. We then focus on the preferred 2 or 3 substations and use fiber mapping software to overlay the major networks. From there we conduct ring searches from the power out to find the best Greenfield site. We will also look at the environmental risks, tax impact and demographics as we drill down on a particular site.
Modular Data Centers
We have extensively studied the “modular” or “container” approach that several companies are now offering. We can guide clients through the several arrangements that can be made, such as purchasing the container and deploying it on a provider’s site, a straight lease of shared space in a container, lease of a full or multiple containers, and purchase or lease of a container with deployment on the customers site. There are also various ways to configure the container, from power densities (ie 100-300w/sf) to redundancies (N, N+1, 2N). All of this effects space usage so our ability to understand this assists in maximizing our client’s space.
Managed Hosting Arrangements / Cloud Services
We will work with our clients down to the rack level with or without associated bandwidth. We will work to construct RFPs and manage the process of ensuring we are receiving “apples to apples” quotes from providers. Most enterprises that are outsourcing for the first time are extremely confused by this process and how to interpret provider quotes.
Roll-ups & Acquisitions
Some clients feel the best approach to growth in new markets is through acquisitions and/or roll-ups. In these cases, they might purchase a mid-level provider in a single market to gain quick access to a new market and revenues. In other instances, our clients have a strategy to roll-up mid level providers in several markets to achieve larger market footprints. This could be an east coast provider that decides to expand west and requests that we find several acquisition candidates in 4-5 west markets. Our team will find the potential acquisition candidate as well as conduct a financial analysis on the company and a technology review. Usually, this is funded by a 3rd party. Members of our team have extensive experience in these arrangements having worked previously for Wall Street firms that funded these transactions for their portfolio clients.
Market Strategies & Markets Reports
For clients looking to expand into new geographic markets, we provide detailed analysis that offers a comprehensive view of all aspects of that market. We look at basic real estate shells available for data centers as well as wholesalers that can be utilized; we survey the utilities for power options, fiber map the areas to highlight connectivity options, contact the local EDCs to discuss tax incentives and programs to develop new data centers, map where competitors are located and provide basic competitive pricing. These reports have been extremely well received by our clients and are a great value add component of our practice.