ScaleMatrix Opens Business Continuity Center | Private Cloud ...

451 Research: Analyst:?Rick Kurtzbein??Glenn Ford
27 Jan, 2013

ScaleMatrix has opened its San Diego Business Continuity Center located next to the company?s Kearny Mesa campus in the eastern suburbs of San Diego. Supported by power generators for emergency power, the 46,000-square-foot, climate-controlled business continuity center provides diverse and redundant Internet connectivity and armed security, as well as phone services. The facility features high-speed, multi-homed Internet connectivity and direct interconnection to colocated cabinets and cloud infrastructure. Amenities also include a shared kitchen space, which will have coffee service and vending machines.

Most of the larger multi-tenant datacenter (MTDC) facilities today provide temporary office space, conference rooms and kitchen areas for colocation customers. These amenities are typically offered on a first-come, first-serve basis. ScaleMatrix?s new facility, in contrast, offers secure, dedicated cubicles for $499 per month, and suites starting at $1,499 per month. The company will also provide custom suites to customers with specific space and configuration requirements. The company reported that several San Diego institutions have already secured space and that half of those clients have asked for custom suites. With an on-site construction crew, ScaleMatrix can build a custom suite within 30 days.

The value of dedicated business continuity space

The temporary office space, conference rooms and kitchen areas provided in MTDC facilities suffices if a colocation customer suffers an outage and requires time to restore systems and data. However, significant issues arise around office space utilization when a widespread disastrous event occurs that affects multiple customers in the MTDC facility or if multiple customers schedule recovery testing at the same time.

IT resources from multiple companies converge on the datacenter and vie with one another for resources to restore systems and data. It should be noted that some disasters could result in IT resources working for days to ensure all critical systems are operational and business operations have been restored. It will be during such events that an organization will most appreciate the investment in dedicated cubicles and suites for its recovery team?s uses while restoring business continuity.

Competition

San Diego has the 17th largest GDP out of the metros in North America and the city has seen steady demand for MTDC services. The economy in the city has a number of drivers, including the city?s deepwater port; hosting the world?s largest naval fleet; a shared border with Mexico, leading to important trade; tourism and the city?s growing number of technology firms providing demand for MTDC facilities, including wireless, life sciences, pharmaceutical research and health services. San Diego is located about 120 miles south of Los Angeles and 87 miles south of Orange County, so MTDC providers in the city do see some limited competition from datacenter providers in Orange County and even further north in Los Angeles. We estimate that roughly 75% of the demand for San Diego datacenter space tends to come from within a 75-100 mile radius.

We identified nine MTDC providers in San Diego during our research of the market this year with a total of 14 active datacenters. While local competition for colocation services exists from regional providers American Internet Services (AIS) and RedIT, ScaleMatrix aims to target clients on a national basis with a combination of traditional colocation services, cloud-based hosting and a growing managed service portfolio. The company sees Rackspace and Layered Technologies as its biggest cloud competitors for private cloud services.

The 451 Take

We think ScaleMatrix?s new Business Continuity Center serves a need and will be well received in the San Diego market. We are beginning to see MTDC providers in other areas adding dedicated workspace and suites for customers. The workspaces can be used to support disaster-recovery exercises (both testing and actual), break fix activities, major scheduled maintenance and many other activities. We believe that colocation customers with mission-critical systems will take a close look at ScaleMatrix?s Business Continuity Center offering.

Source: http://www.scalematrix.com/blog/scalematrix-opens-business-continuity-center/

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