Why go COLO?

WHY GO COLO?

BENEFITS OF MIGRATING TO A COLOCATION DATA CENTRE​

A colocation (colo) data centre leases fully equipped rack space with power, cooling, access to telcos and bandwidth included in one package.​

Cost Savings

Security & Reliability

• With data production for businesses doubling every two years, on-premise data centre facilities will need to keep up with increasing storage and maintenance requirements with having to manage outdated infrastructure, scaling IT, connectivity solutions and power/ cooling systems, which can be expensive and inefficient.​ • Similar to your real estate rental agreements, migrating to a colocation data centre can help you forecast a more predictable cost structure with long-term Capex and Opex savings of between 30-50%.

Scalability & Flexibility • Colocation data centres operators operate hyperscale facilities with sufficient IT power load across a single or multiple sites providing sufficient infrastructure that can facilitate more demanding IT requirements. As a result, they can accommodate for scale and cater to your business’ contraction/expansions needs.​ • Colocation migration is critical for achieving real-time and updated performance and efficiency to allow for you to optimise your business on a cloud operating model that can cater to ever increasing online demands and remote working requirements. • Colocation data centres are built around state-of-the-art infrastructure with high levels of physical security and skilled maintenance personnel onsite 24/7 providing optimised and up-to date operations.​ • They also have multiple layers of power back-up solutions on standby and fully redundant network connections to provide more protection against disruptions and help ensure that your business critical applications can run with 99.9% - 99.999% availability and reliability.

​

GOING COLO

can help with long term costs savings, ensure 24/7 reliability with minimal power interruptions, achieve higher sustainability and

Sustainability

flexibility in line with your business goals.

• On-premise data centre facilities usually have a PUE of over 2.0* whilst most colocation and hyperscale data centres aim to achieve a PUE of below 1.5. This means that just by migrating your data centre operations to an off-premise colocation facility you will be able to lower your organisation’s carbon footprints.​ • Due to increasingly stringent government regulations and updated criteria around the impact of data centres on the environment, operators are obliged to consider sustainability measures in the construction, operations and maintenance of their data centres, automatically helping you meet your ESG targets.​

*Source: AlphaBeta (commissioned by Amazon Web Services) 2022, Singapore’s sustainable data centre opportunity

From planning your transition to the cloud to moving your on-premise servers to a colocation data centre, find out how Cushman & Wakefield’s experts we can help you kickstart your digital transformation journey now!

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@ap.cushwake.com

DEEPENDRA SHUKLA Director, Data Centres, Cloud & IT Advisory deependra.shukla@cushwake.com

WHY GO COLO?

Cost Savings DID YOU KNOW?

Savings of close to 50% can be achieved over 5 years by moving on-premise servers to a colocation operator. The below table outlines the on-prem vs colocation cost savings that Cushman & Wakefield helped a major global IT client achieve in India.

(All values in USD. Costs will vary depending on location & specific requirements)

Y1

Y2

Y3

Y4

Y5

Cashflows

ON-PREMISE COSTS

CapEx* & OpEx†​

$326,601​

$41,243​

$45,368​

$63,046​

$68,693​

Power costs​

$73,827​

$77,518​

$81,394​

$85,464​

$89,737​

Total Spend​

$400,428​

$118,762​

$126,762​

$148,510​

$158,430​

COLOCATION COSTS

One time costs#

$21,807

MRC​

$53,910​

$55,258​

$56,640​

$58,056​

$59,507​

Power costs​

$57,048​

$59,900​

$62,895​

$66,040​

$69,342​

Total Spend​

$132,766​

$115,159​

$119,535​

$124,096​

$128,849​

Y-O-Y savings (%)​

67%​

3%​

6%​

16%​

19%​

48%

Total operating cost savings over 5 years (%)

* On-Prem CapEx costs include: UPS w/ 10min backup, air condition, DG set and exhaust piping, civil interior fitout, IBMS and physical security, electrical setup, rack & PDUs, consultancy & PMC​ † On-Prem OpEx costs include: Lease rent, MEP & maintenance, employee resources​ # One time costs for colocation include: Rack & cage setup, cross connects, monthly recurring costs​

From planning your transition to the cloud to moving your on-premise servers to a colocation data centre, find out how Cushman & Wakefield’s experts we can help you kickstart your digital transformation journey now!

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@ap.cushwake.com

DEEPENDRA SHUKLA Director, Data Centres, Cloud & IT Advisory deependra.shukla@cushwake.com

WHY GO COLO?

Security & Reliability DID YOU KNOW?

Not all cybersecurity breaches are caused with malicious or criminal intent. Often, they are a result of negligent or inadvertent employees working with data stored in on-premise servers. Many cybersecurity breaches can be avoided with the multi-layer security and reliability guaranteed by colocation providers.​ In early 2021, the city of Dallas suffered massive data losses because of employee negligence. An employee accidently deleted over 8 million critical police files due to a lack of training around properly moving files from cloud storage. The evidentiary value files lost were those the Dallas Police Department had collected for thousands of prosecution cases, which were impacted by the data loss.

Dallas Police Department

Affected institution

Employee negligence

Source of breach

~21TB critical data lost

Result

• Migrating to a secure colocation facility​ • Limiting access to data to authorised personel only​ • Data security training for employees (can be managed by colocation providers)​ • Regular data back-ups (can be automated at colocation facilities as an additional service)

Prevention methods

Source: https://dallascityhall.com/departments/ciservices/Pages/Report-on-Data-Loss.aspx

From planning your transition to the cloud to moving your on-premise servers to a colocation data centre, find out how Cushman & Wakefield’s experts we can help you kickstart your digital transformation journey now!

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@ap.cushwake.com

DEEPENDRA SHUKLA Director, Data Centres, Cloud & IT Advisory deependra.shukla@cushwake.com

WHY GO COLO?

Sustainability DID YOU KNOW?

With the extremely high consumption of power by data centres and the significant carbon footprint the sector generates, there is a need to strengthen sector-wide standards and commitments for sustainable data centre operations. Leaders in the data centre industry have responded by becoming powerful voices for sustainable change, making pledges in pursuit of zero carbon and passing the environmental benefits to their customers.

Operator

Sustainability initiatives

Science-Based Target commitment to reduce global emissions intensity 68% by 2030

First colocation operator committed to operating their facilities closer to 27°C (80°F)

v

Purchasing 100% reusable energy

First in industry to neutralise 100% of Scope 3

Sources: Digital Realty, Equinix, Iron Mountain, Scala Data Centers

From planning your transition to the cloud to moving your on-premise servers to a colocation data centre, find out how Cushman & Wakefield’s experts we can help you kickstart your digital transformation journey now!

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@ap.cushwake.com

DEEPENDRA SHUKLA Director, Data Centres, Cloud & IT Advisory deependra.shukla@cushwake.com

WHY GO COLO?

Scalability & Flexibility DID YOU KNOW?

Businesses that require flexibility for growth or fluctuation will benefit from the services of a colocation data centre.​

​In January 2020, when the first case of COVID-19 was confirmed, business leaders around the world had no idea to what extent the pandemic would impact their companies. As millions of people were forced to work from home due to lockdowns, Zoom, a videoconferencing application, had to manage a major, unprecedented surge in demand and needed to scale up their operations in a short amount of time.

Date

Number of Zoom users per day

Dec 2019 (pre pandemic)

10 million

March 2020

200 million

224%

(%) Increase between 1 Feb – 30 April 2020

​Zoom were able to absorb the impact of increased demand with minimal service disruptions thanks to a global hybrid cloud network of colocation data centres and other cloud resources that were running at around 50% of peak capacity prior to the pandemic.

Source: https://www.protocol.com/manuals/new-enterprise/how-zoom-scaled-covid19#toggle-gdpr

From planning your transition to the cloud to moving your on-premise servers to a colocation data centre, find out how Cushman & Wakefield’s experts we can help you kickstart your digital transformation journey now!

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@ap.cushwake.com

DEEPENDRA SHUKLA Director, Data Centres, Cloud & IT Advisory deependra.shukla@cushwake.com