Network Communications News (NCN) NCN-July2017 | Page 11

TALKING POINT
These factors will open up edge market opportunities for collocation providers , reducing overall investment risk and thereby making them more financially viable .
Taking a prefabricated approach effectively introduces an on-demand or just-in-time ( JIT ) model to the provisioning of datacentre capacity – an unheard of concept until now .
Speed to revenue
Leveraging repetition
Lower cost of entry
The lower up-front cost of prefabricated data centres versus larger traditionally built facilities , will lower the cost of market entry making edge markets more accessible to service providers and making the cost of the services hosted there more attractive to the ultimate customers .
With prefabricated solutions minimising their initial capital outlay at individual sites , colocation companies will also see an increase in the total number of markets they can address as they will be able to spread their investment in modular data centres across a larger number of sites .
‘ The much faster speed of construction of prefabricated data centres will enable colocation providers to start bringing in revenue faster and to respond to customer demands more quickly .’
Unlike traditionally built data centres which can sometimes take years to build , the much faster speed of construction of prefabricated data centres will enable colocation providers to start bringing in revenue faster and to respond to customer demands more quickly .
In fact , the speed of prefabricated construction allows a colocation company to build an order book at the same time as building the facility offsite , without any serious risk that they will be late to deliver service .
Informed expansion planning
Traditionally constructed data centres are typically built oversized and then fractionally occupied over time – an expensive and highly inefficient process . By contrast , because prefabricated facilities are built in a controlled factory environment before being assembled on site , the lead times are shorter . This enables capacity to be planned over a much shorter time horizon and then incrementally expanded as the need for more capacity arises .
This provides a number of key benefits : Allowing colocation providers to delay expansion orders until much closer to when they are actually needed , when they will have a clearer view of exactly how much and what kind of additional capacity they ’ re going to need ; Enabling capital expenditure outlay to be phased more in line with business growth ; Significantly reducing business risk ; and Each new phase can take advantage of the latest innovations that typically increase efficiency and reduce cost .
A large element of the cost of data centres is the design element . With a prefabricated solution though , using a repetitive design approach will streamline the process , minimise the cost and standardise not only the facility design , but also the associated operational processes such as training , support , spares , engineering , etc .
In this way repetition not only reduces capital expenses ( with lower ongoing design costs ) but also operating expenses ( with lower and more streamlined operational processes ).
Using the same design for every site , means the design cost is only incurred once for the very first facility . Regional variations may be added over time but sitespecific designs can be kept to a minimum . Additionally , a standard design opens up the possibility of repetitive manufacturing that further increases efficiency and reduces cost .
Speed to the edge
With increasing numbers of businesses and consumers demanding quicker access to data outside the world ’ s Tier 1 cities , market opportunity at the edge is growing fast .
There is no question that the next wave of data centre development will be the land grab at the edge and the colocation companies that take a prefabricated approach to building their new facilities will undoubtedly be best positioned to take full advantage of this growth market while at the same time minimising their risks .
Speed to the edge for providers translates into speed to data for customers – a winning formula for both .
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July 2017 | 11