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Mike McMillan Vice President +1 513 369 1306 [email protected]

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Mike McMillan Vice President +1 513 369 [email protected]

Page Topic Value

3 Answering the What? Why? and How? questions Leaving Nothing to Chance

4 Strategic Planning Location plus Architecture plus Network

5 Strategic Planning Process Requirements plus Planning through Implementation

6IT Network Advisory Services “Leaving nothing to chance”

Network Solutions Connecting Property, People & Applications

7IT Network Advisory Services “Leaving nothing to chance”

Proven Structured Process

8 Data Center Market Dashboard With our Local, National and Global Market Knowledge

9 Structured Acquisition ProcessUsing our Proven Process all 60+ CBRE Data Center Professionals follow for our Client’s Globally

10 Retail Colocation Sites in Each City Leveraging our Local Colocation Market Knowledge

11 Lease Audit Negotiations 75 Point Lease Negotiation Checklist Including SLA’s

12 Total Cost of Occupancy (TCO) Analysis Detailed TCO to Support Board Presentation, Budgeting and Final Decisions

13 Platform OverviewCBRE Portfolio of Capabilities and Volume of Our Client’s Data Center Business We have Supported

14 Clients Represented CBRE’s Cross-Industry Client Experience and Expertise

Data Center Advisory Services

DATA CENTER ADVISORY SERVICE Example Work Products

Page 3 Data Center Advisory Services

ANSWERING THE WHAT? WHY? AND HOW? QUESTIONS Leaving Nothing to Chance

Page 4

Strategic Planning Process

• Risk• Cost• Capacity

• Reliability• Power Efficiencies

• Economic Incentives

• Flexibility by Tier

Capacity Planning

uuuuuu

NETWORKARCHITECTURE

LOCATION

• Virtualization• Optimization• Consolidation• Decommission

• Technology• Xaas Public vs

Private• Growth

• Latency• Bandwidth• Carriers

• Cost• Diversity• Redundancy

Data Center Advisory Services

STRATEGIC PLANNING

Page 5

uuuuuu uuu uuu

uuuuuu uuu uuu

DISCOVERY PROCESSREQUIREMENTS

CAPACITY PLANNINGGrowth Modeling

Technology RefreshOptimization PlanningApplication Architecture

Scenario Modeling

DATA COLLECTIONInterview Stakeholders

Asset ListsBusiness Functionality

AvailabilityDisaster Recovery Needs

Collect Data

ITNETWORKS

SYSTEMSOptimize: P - V

Capacity AnalysisOptimization, Growth

Business RequirementsApplication Architectures

IT DriversFacility Drivers

Analyze Data

NegotiationAgreements

uuuuuu

Capacity PlanningGrowth, Redundancy,Diversity, & Latency

STRATEGICPLANNING

SCENARIODEVELOPMENT

Application ArchitectureHigh Availability Needs

“What-If” ModelingFacility Architecture

EVALUATE ALTERNATIVESBuild versus Buy versus Xaas

Opportunities/RisksGap Analysis

Architecture ChangesLocation

TCO ANALYSISCost Comparison per Scenario

OptionStaffingNetwork

MigrationServices

IMPLEMENTATION EXECUTEData Center Strategy

SolutionsAnswers

TRANSITIONAcquisition of Cloud/

Managed ServicesRF/RFP

SLATerms

Providers

IMPLEMENTATIONLOI Negotiation

Lease NegotiationFinal TCO

Board Level Presentation

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uu u

u

STRATEGIC PLANNING PROCESS

Page 6

TELECOM NETWORKS ADVISORY SERVICES “LEAVING NOTHING TO CHANCE”

Voice and DataStaying Connected

Real Estate

Voice and Data

Telecommunicatio

ns

Cus

tom

er Se

rvice

Sales Marketing Operations

IT Business People HR

Team

ing

Work Smarter Faster

Productivity Saving Time a

nd M

oney

Busi

ness

Con

tinui

ty

Assessment/Audit Business Resilience

Unified Communications

WHY?

Moving Locations

Optimization (Portfolio)

HOW?

Expertise

Carrier Partners

Purchasing Power

CLIENT VALUE

Savings

Resources

Time

Cost

Page 7

TELECOM NETWORKS ADVISORY SERVICES “LEAVING NOTHING TO CHANCE”Client Value, Network Solutions Connecting Property, People & Applications

Remote Employees

Cloud Applications Data Centers

Satellite Offices

Corporate Offices

VoiceandData

25% Network Savings

Healthcare Company from Assessment, Adding New Services and Renegotiating Existing Services

35 - 40%Network Savings

Parking Services Company, 1,850 Locations and 7,000 Employees Assessment, Cost Effective and Growth Oriented Solution also Reducing 1,500 Invoices into one Invoice

$2 Million AnnualNetwork SavingsFinancial Service Company, a Data Center Consolidation Plan, 18 to 3 Locations

21% Network Savings

Energy Supplier, 25 Location Assessment, Reducing 34 Invoices down to 2 Invoices for Simpler Bookkeeping

Cloud Based Communications with Disaster Recovery

Healthcare Company, New Hosted Communications Solution for 82 Locations, and 1,200 Employees

Call CenterWarehouse

Page 8

CBRE OVERVIEW

BUSINESS LINES

SPECIALTY SERVICES

BUSINESS ACTIVITY STATISTICS MARKET STATISTICS CBRE

EXPERIENCE

POWERED SHELLS ENTERPRISE CENTERS RETAIL COLO WHOLESALE COLO UNDER CONSTRUCTION GREENFIELD SITES D

ATA

CEN

TER

DA

SHB

OA

RD

Market Statistics Data Center Solutions

Group Data Center

Primer Data Center

Map

Data Center Advisory Services

CBRE - DATA CENTER MARKET DASHBOARD With our Local, National and Global Market Knowledge

Page 9

Stage 1

Stakeholder Meeting

Stage 2

RequirementsDevelopment and Decision Criteria

Stage 3

Market and Site Sourcing

Stage 4

RFP Process

Stage 5

Market and Site TCO Analysis

Stage 6

Site Visits and Short Listing

Stage 7

Term Sheet Negotiation

Stage 8

Contract Negotiation

Stage 9

Facility Preparation/Data

Center Commissioning

Established and Structured Acquisition Process

Data Center Advisory Services

Established and Structured Acquisition Process

STRUCTURED ACQUISITION PROCESS Using our Proven Process all 60+ CBRE Data Center Professionals

Page 10

RETAIL COLOCATION SITES IN EACH CITY Leveraging our Local Colocation Market Knowledge

For Example; Cincinnati

CyrusOneCyrusOne

CyrusOne

TW Telecom

Peak 10

CyrusOne

Ascendum IMS

CyrusOne

Level 3

CyrusOne

Appica

CyrusOne

Level 3

Appica

Data Center Advisory Services

Page 11

LEASE AUDIT NEGOTIATIONS 75 Point Lease Negotiation Checklist Including SLA’s

Data Center Advisory Services

Page 12

TOTAL COST OF OCCUPANCY - ANALYSIS Detailed TCO to Support Board Presentation, Budgeting and Final Decisions

Data Center Advisory Services

Work Product Example

Confidential Client Total Cost of Occupancy StudyBuild vs. Lease vs. Modular/Container

Build on CampusWholesale Lease - Market

Terms (Nationally)Colocation - Provider 1

Modular Scenario - Manufacturer 1

Modular Scenario - Manufacturer 2

Modular Scenario - Manufacturer 3

Local Market National Data Center Market Local Market Local Market Local Market Local Market

ASSUMPTIONS

Analysis Start Date 6/1/2014 6/1/2014 6/1/2014 6/1/2014 6/1/2014 6/1/2014Analysis Term 10.00 years 10.00 years 10.00 years 10.00 years 10.00 years 10.00 years

Critical Load at Full Ramp (kW) 600 300 275 300 288 300

Raised Floor Space (SF) 3,500 2,800 TBD 1,440 1,212 1,552

Occupancy Costs $46,979,235 $10,352,184 $7,532,902 $34,419,168 $32,424,469 $31,506,770Day One Capital Costs $18,250,000 $0 $0 $8,782,080 $7,852,983 $6,677,556

Annual Weighted Avg Cost Per kW Used $19,020 $4,191 $3,050 $13,935 $13,127 $12,756Average Annual Cost $4,697,924 $1,035,218 $753,290 $3,441,917 $3,242,447 $3,150,677

NPV Occupancy Cost @ 8% $37,300,499 $6,766,534 $4,832,295 $25,729,327 $24,098,423 $23,089,307

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility

of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not

represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

2013

$4,697,924

$1,035,218 $753,290

$3,441,917 $3,242,447 $3,150,677

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

1 2 3 4 5 6

Average Annual Cost

Confidential ClientModular Scenario - Manufacturer 1

Local Market

ASSUMPTIONS NEW LEASE

ANALYSIS START DATE / END DATE Raised Floor/Data Center Space (SF) 1,440 Capital Costs per kW NominalAnalysis Start 6/1/2014 Data Modules (2) $6,001.93 $1,800,580Analysis End 5/31/2024 Power Module Container Equipment $5,630.00 $1,689,000

Construction of Shell and Pad $6,000.00 $1,800,000TERM Modular Data Center Critical Load Capacity in kW Electrical/Mechanical Infrastructure $7,666.67 $2,300,000Analysis Term - Years 10.00 Years Months 1-120 300 Power Run to Premises $0.00 $0 ***Analysis Term - Months 120 Months Data Run to Premises $0.00 $0 ***

Water/Sewer Run to Premises $0.00 $0 ***Real Estate Tax & Operating Expenses Installation of Add'l Utility Feed $2,500.00 $750,000

Growth 2014 Est.Real Estate Taxes 0.0% $0.00 /SF ***Annual Module Maintenantce & 3.0% $262,953.00 Out-Of-Pocket $27,798.60 $8,339,580 Software Support CostsElectricity 3.0% $0.0800 /kWh Soft Costs per kW NominalCooling Uplift Factor 40% * Shipping of Module $641.67 $192,500Office Space RE Taxes & Op Ex 0.0% $0.00 /SF Installation of Module $833.33 $250,000Storage Space RE Taxes & Op Ex 0.0% $0.00 /SF Commissioning $0.00 $0 **

Drawings/Permitting $0.00 $0

Out-Of-Pocket $1,475.00 $442,500

Additional Costs per kW NominalTenant Improvements Required $0 $0Tenant Improvement Allowance $0 $0

Out-Of-Pocket $0 $0

per kW NominalTOTAL OUT-OF-POCKET $29,273.60 $8,782,080

1 2 3 4 5 6 7 8 9 10Fiscal Year Ending Initial Investment 5/31/2015 5/31/2016 5/31/2017 5/31/2018 5/31/2019 5/31/2020 5/31/2021 5/31/2022 5/31/2023 5/31/2024Months in Period 12 12 12 12 12 12 12 12 12 12

Critical Load Capacity (kW) 300 300 300 300 300 300 300 300 300 300Estimated Power Draw (kW) * 205 205 205 205 275 275 275 275 275 275

Cost of Electricity $0.0800 $0.0824 $0.0849 $0.0874 $0.0900 $0.0927 $0.0955 $0.0984 $0.1013 $0.1044

Operating Expense and Electricity TotalsReal Estate Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Annual Maintenance & Software Support $262,953 $270,842 $278,967 $287,336 $295,956 $304,835 $313,980 $323,399 $333,101 $343,094 $3,014,461Electricity $143,664 $147,974 $152,413 $156,986 $216,908 $223,415 $230,118 $237,021 $244,132 $251,456 $2,004,087Cooling Uplift Factor $57,466 $59,190 $60,965 $62,794 $86,763 $89,366 $92,047 $94,809 $97,653 $100,582 $801,635HR/Staffing - Engineering - Salaries & Benefits **** $1,148,900 $1,148,900 $1,148,900 $1,148,900 $1,148,900 $1,300,989 $1,300,989 $1,300,989 $1,300,989 $1,300,989 $12,249,445HR/Staffing - Security - Salaries & Benefits (6 Officers) $618,000 $618,000 $618,000 $618,000 $618,000 $644,000 $644,000 $644,000 $644,000 $644,000 $6,310,000Fire & Life Safety $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $55,000Painting $2,400 $2,400 $2,400 $2,400 $2,400 $2,880 $2,880 $2,880 $2,880 $2,880 $26,400Parking Lot Re-Striping / Resurfacing $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $12,000Building-Level Plumbing Repairs $1,800 $1,800 $1,800 $1,800 $1,800 $2,160 $2,160 $2,160 $2,160 $2,160 $19,800Building-Level General Maintenance $9,600 $9,600 $9,600 $9,600 $9,600 $11,520 $11,520 $11,520 $11,520 $11,520 $105,600Building-Level Roof Repairs $1,200 $1,200 $1,200 $1,200 $1,200 $1,440 $1,440 $1,440 $1,440 $1,440 $13,200Electrical Infrastructure - Switchgear Maintenance $7,500 $7,500 $7,500 $7,500 $7,500 $9,000 $9,000 $9,000 $9,000 $9,000 $82,500Electrical Infrastructure - Generator Maintenance $4,400 $4,400 $4,400 $4,400 $4,400 $5,500 $5,500 $5,500 $5,500 $5,500 $49,500Electrical Infrastructure - Generator Fuel $15,734 $15,734 $15,734 $15,734 $15,734 $27,518 $27,518 $27,518 $27,518 $27,518 $216,260Electrical Infrastructure - Subontracted Work $3,600 $3,600 $3,600 $3,600 $3,600 $4,800 $4,800 $4,800 $4,800 $4,800 $42,000Electrical Infrastructure - Supplied & Repairs $4,800 $4,800 $4,800 $4,800 $4,800 $7,200 $7,200 $7,200 $7,200 $7,200 $60,000Mechanical Infrastructure - Building Automation $10,000 $10,000 $10,000 $10,000 $10,000 $12,500 $12,500 $12,500 $12,500 $12,500 $112,500Mechanical Infrastructure - Supplies & Repairs $18,000 $18,000 $18,000 $18,000 $18,000 $24,000 $24,000 $24,000 $24,000 $24,000 $210,000Janatorial - General $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000 $6,000 $55,000Landscaping Services $6,000 $6,000 $6,000 $6,000 $6,000 $7,200 $7,200 $7,200 $7,200 $7,200 $66,000Pest Control $518 $518 $518 $518 $518 $622 $622 $622 $622 $622 $5,700Water & Sewer $12,000 $12,000 $12,000 $12,000 $12,000 $13,200 $13,200 $13,200 $13,200 $13,200 $126,000

Total $2,339,735 $2,353,657 $2,367,997 $2,382,768 $2,475,279 $2,705,345 $2,723,873 $2,742,958 $2,762,615 $2,782,861 $25,637,088

Capital CostsData Modules (2) $1,800,580 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,580Power Module Container Equipment $1,689,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,689,000Construction of Shell and Pad $1,800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000Electrical/Mechanical Infrastructure $2,300,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,300,000Power Run to Premises $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Data Run to Premises $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Water/Sewer Run to Premises $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Installation of Add'l Utility Feed $750,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $750,000

Total $8,339,580 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,339,580

Soft CostsShipping of Module $192,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $192,500Installation of Module $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $250,000Commissioning $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Drawings/Permitting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $442,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $442,500

Additional CostsTenant Improvements $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Pre -Tax Occupancy Costs $8,782,080 $2,339,735 $2,353,657 $2,367,997 $2,382,768 $2,475,279 $2,705,345 $2,723,873 $2,742,958 $2,762,615 $2,782,861 $34,419,168

NOTES OCCUPANCY TOTALS* Estimated Cooling Uplift Factor of40% to be conservative. GROSS OCCUPANCY COSTS: $34,419,168

** Commissioning included? To be confirmed with Provider. NPV GROSS OCCUPANCY COSTS: 8.00% $25,729,327

*** Did not include costs for RE Taxes, or those to run power, fiber and water service to data center, as they would be uniform for "build" and all "modular" options. AVERAGE ANNUAL COST: $3,441,917

**** Amount includes a DC Facilities Mgr, Chief Engineer and 13 Staff Engineers. ANNUAL WEIGHTED AVG COST PER kW USED: $13,935

NEW LEASE

Build Greenfield Leased (Colo) Build Modular

Page 13 Data Center Advisory Services

PLATFORM OVERVIEW CBRE Portfolio of Capabilities and Volume of Our Client’s Data Center Business We have Supported

StrategicPlanning

NeedsAnalysis

Site Selectionand Acquisition

Design/ Construction Management

Operations and Maintenance

Upgrades and Modifications

Disposition

180 MW $500M $520M 300+ 86 M SF

200+ MW 100+ 75 $1B 1,000+

transactions globally in 2013

data center investment sales

since 2012

in contract value in 2013

data center Project Managers

480 Facilities Operated by

CBRE FM

in the 2014 pipeline data center advisors globally

Global Markets DCSG Project Management

Contract Value

Data Center Facility Managers

and Engineers

Page 14

CLIENTS REPRESENTED CBRE’s Cross-Industry Client Experience and Expertise

Data Center Advisory Services

Mike McMillan Vice President +1 513 369 [email protected]

For more information please contact

CBRE | 201 E Fifth Street, Suite 1200 | Cincinnati, OH 45202 | www.cbre.com/cincinnati

© 2015 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.