Your Board Is Concerned About the Data Center. Are You?

Is the data center a CXO concern? Absolutely. Consider this from McKinsey: “Despite the huge amounts of capital tied up in data centers, significant inefficiencies exist. With average data center costs now threatening to crowd out other technology investments, the matter has become a board level concern.”

Is the data center a CXO concern?

It’s a fair question, and the answer is yes. If risk is a concern, if cash flow is a concern, if shareholder value is a concern – then the data center is a concern.

“Despite the huge amounts of capital tied up in data centers, significant inefficiencies exist. With average data center costs now threatening crowd out other technology investments, the matter has become a board level concern.”

Mitigate future capacity risk – without stranding capital

The digital world is growing fast – exponentially. Consider: 90% of all the data that exists in the world today was created in the last two years alone, according to IBM. There is tremendous value in all that data, to be sure, but the ability to extract that value rests squarely on the shoulders of the data center. After all, while the processing capability of IT infrastructure has grown exponentially (that’s Murphy’s Law), the traditional data center – its technology and its model – has hardly changed.

Knowing all this, your IT team is trying to figure out how they’ll enable the business to derive value from the digital deluge. On one hand, they could provision more than enough data center capacity to meet the business’s demands well into the future. But then they’re going to have to ask you for a very big check – and they recognize theirs is just one of many priorities competing for dollars. On the other hand, they could ask for a modest financial commitment today, but then they risk not having enough capacity to take advantage of all the opportunities that the digital world (think: IoT) will present.

In a traditional data center, that tradeoff is real. And most IT leaders decide to over-provision today – check please – to avoid the risk of capacity constraint in the future. But it results in massive under-utilization of IT infrastructure. According to a 2015 enterprise data center survey by 451 Research, the average datacenter is utilized at 63% capacity from a square-footage perspective, and 56% from a power perspective. In other words, 44% of the power that enterprises are allocated – and paying for – is unused.

But what if the data center evolved? What if new power and cooling technology and a new data center model enabled your IT team to scale capacity in right size increments, basically on-demand? Then your IT team wouldn’t have to choose between mitigating future capacity risk and making smart use of capital. They could do both.

“A more transparent and usage-based model is sorely needed.”
Gartner analyst Bob Gill

Reduce cost, improve profitability, and deliver greater shareholder value

In addition to forcing you into a tradeoff between capacity risk and capital efficiency, the traditional data center is also inherently wasteful. It delivers reliability, but at the expense of efficiency. Consider, for example, Gartner’s perspective on data center cooling: “Gartner generally finds that most multi-tenant data center operators have an extremely diverse array of IT equipment operating within their facilities and generally take a ‘lowest common denominator’ approach to their environments operating them cooler than may be necessary – just to be safe.”

It doesn’t need to be that way. You can have your cake and eat it, too, with a data center that delivers industry-leading reliability and efficiency.

How big an issue is it? Consider McKinsey’s perspective: “The portion of the IT budget consumed by infrastructure and facilities is significantly reshaping the economics of many businesses…data center costs are diverting capital from new product development, making some products and segments uneconomical and materially affecting margins. Without radical changes in operations, many companies with large data centers face reduced profitability.”

Aligned Data Centers’ role

If you’re going to mitigate risk, reduce cost, improve profitability, and deliver greater shareholder value, you need control over your data center. And, you need a data center that is more cost-effective and more energy-efficient (i.e., it wastes less).

We’re give you back control of the data center, through:

  • A lower upfront contract commitment
  • Plug-and-play infrastructure and analytics for capacity planning

And we enable you to waste less through:

  • Consumption-based, pay-for-use pricing
  • Ultra-efficient power and cooling infrastructure
  • “The most reliable cooling system in the marketplace”

Does your data center enable you to mitigate risk, reduce cost, improve profitability, and deliver greater shareholder value? This three-page CXO’s Perspective can help you answer that question:

Why Your Data Center Must Evolve

New York, New York (October 12, 2015) The modern data center has changed far beyond the standard physical server. Now, many organizations are working with advanced networking components, new cloud computing platforms, site-to-site replication requirements, and greater amounts of uptime requirements. Although many of these technologies have created an agile and much more efficient data center – there have been challenges during the growth process. With the introduction of all these new pieces into the data center, organizations quickly found themselves having to manage numerous different components just to stay afloat.

The traditional data center model is like the old cable TV and music models, which forced you to buy and pay for all 189 channels and all ten songs, even if you only wanted a few. The evolved data center model, in contrast, is like the new TV and music models – you only buy the show or the song you want. Where the traditional colocation model locks you into long-term contracts for power you may not use, the evolved pay-for-use model eliminates the need to forecast IT demand and provides control over capacity. As a result, you reduce waste and align your data center to the needs of your business.

In this whitepaper from Aligned Data Centers, we learn about the three big trends which have shaped the recent IT ecosystem. These include:

  • A sea of change in how we consume and pay for things
  • Rising data center infrastructure and energy costs and falling IT infrastructure costs
  • Exponentially increasing demand for IT capacity

And yet – many of today’s data center environments, seen as the foundation for our digital world, are having challenges evolving to the next-gen state. Fortunately – there’s good news.

You no longer need to be confined by the constraints of traditional data center infrastructure, providers, and pricing. Providers and partners like Aligned Data Centers help create the data center evolution option. You can deploy the data center capacity you need when you need it and pay for what you use. You can improve reliability and cut cost. You can reduce the risk of making long-term commitments based on the unknown. You can free up stranded capital that could add value to other areas of your business. Download this whitepaper today to learn how to take your ecosystem to the next evolutionary state and allow you to be in complete control of your data center.

Press and Analyst Inquiries

Jennifer Handshew

[email protected]
Mobile: +1 (917) 359-8838

Aligned Data Centers Continues Rapid Expansion

New York, New York (October 8, 2015) Aligned Data Centers, a division of Aligned, announced today the addition of several key senior-level industry veterans to support the company’s rapid growth and expansion.

In August, Aligned Data Centers introduced the first pay-for-use, consumption-based pricing model to give clients greater control of data center cost and energy efficiency by eliminating stranded capacity.

Commissioning is nearing completion on the first phase of the company’s 300,000 square foot, 30 megawatt Plano, Texas data center, which is scheduled to open in November. In addition, construction has begun on a massive 550,000 square foot, 65 megawatt data center in Phoenix, Arizona. Aligned Data Centers, with backing from its financial partner BlueMountain Capital, has begun site selection in four other top-tier data center markets including California, Illinois, Virginia, and New Jersey in the near-future.

“We’re thrilled to have recruited this caliber of talent to help bring our pay-for-use model to the market,” said Jakob Carnemark, CEO of Aligned Data Centers. “Our clients will benefit from the depth and breadth of experience our team brings to the table.”

The new hires include:

  • Thomas Doherty joins Aligned Data Centers as Chief Operating Officer. Tom previously served as a senior corporate executive at Verizon where he managed the planning, design, construction, and operations for more than 40 million square feet of mission-critical real estate including Fios and Global Network, Inc. Tom brings a strong background in strategic planning, construction and facilities management having managed over 100 data center projects throughout his career. “My experience has been in managing mission-critical infrastructure at a massive scale. Aligned Data Centers is the first provider to give its clients access to hyper-scale infrastructure in a pay-for-use cost model.”
  • Mark Gibbens joins Aligned Data Centers as Head of Corporate Development and Chief Financial Officer. Mark previously held leadership positions at General Motors, Alcatel-Lucent, Affinion Group Holdings, and CFO Performance Partners. Mark has executed over $40 billion in capital markets transactions, over $35 billion in mergers, acquisitions, divestitures and partnerships, and supported customer financing of over $10 billion in 20 countries throughout his career. “I’ve spent years in the telecommunication industry and have worked for one of the largest, most capital intensive firms in the auto industry. I am looking forward to helping our clients transform their data center cost structure so they can redeploy that capital on initiatives that deliver business value.”
  • Paul Fox joins Aligned Data Centers as Director of Operations. Paul previously served in senior leadership roles at Morgan Stanley, Goldman Sachs, UBS, JP Morgan Chase, and Grubb & Ellis. Paul brings over 30 years of experience in capacity management, mission-critical operations and engineering. “I have spent my career helping large financial services firms with data center capacity planning. I am excited to be part of a company that is eliminating the guess work, so our clients can focus on what matters.”

In addition, Aligned Data Centers has attracted industry veterans from Digital Realty Trust, IO, Skanska, and CBRE to fill in its ranks in operations, engineering, marketing and sales.

“We are assembling a team of some of brightest people from inside and outside the industry. They have worked with some of the world’s most respected and innovative organizations including Google, Microsoft, HP, the U.S. Navy, and Yahoo”, says Carnemark. “We are well positioned to help our clients navigate the changing data center landscape and the disruption being caused by the cloud and other new technologies. Our goal is to remove the limits and cost drain associated with the current data center approach so they focus on driving their businesses forward.”

Press and Analyst Inquiries

Jennifer Handshew

[email protected]
Mobile: +1 (917) 359-8838