1. Info-Tech Research Group1 Vendor Landscape: US Co-location/Managed Services Learn how to navigate the “super-sized” US market. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2012 Info-Tech Research Group

2. 2Info-Tech Research Group The US co-location/managed services market consists of commoditized facilities and countless vendors; differentiate on services and engagement. Introduction This Research Is Designed For:This Research Will Help You: Mid-sized enterprises seeking to select a solution for co-location or managed services for all or part of their data center environment. Customers whose co-location/managed services use may include: o Basic co-location services with customer supplied equipment and vendor supplied facility with some basic services. o Managed services with customer supplied equipment, but vendor supplied services. o Hybrid model whereby the customer supplies equipment and subscribes to a mix of basic co- location and managed services. o Fully managed services with vendor supplied equipment and services. Understand what’s new in the US co-location/ managed services market. Evaluate US co-location/managed services vendors and services for your enterprise needs. Determine which services are most appropriate for particular use cases and scenarios.

3. 3Info-Tech Research Group Executive Summary Info-Tech evaluated 13 competitors in the US co- location/Managed Services market, including the following notable performers: Champions: NaviSite’s high-quality equipment and wide range of service offerings at an affordable cost place it in the Champion quadrant. Savvis’ large global network and attractive features make it a very attractive provider for enterprises. Terremark’s acquisition by Verizon has allowed the company to broaden its already large network, as well as offer a more competitive range of services. Value Award: Peak 10’s competitive pricing, coupled with its commitment to customer service and its full spectrum of services, earns the vendor the Value Award for the US market. Trend Setter Award: Rackspace’s Fanatical Support sets the standard for customer engagement by offering no vendor lock-in and personalized support 24/7/365, making the vendor a Trend Setter in the US market. 1.Vendor management is becoming a more essential skill for IT managers. The ability to manage multiple vendor relationships is increasingly part of IT’s job. Unless you select a full service provider, expect to manage several different relationships. 2.Reputation is only one part of the equation. Don’t select a vendor based on name alone; use vendor reputation to help create your shortlist, but select a vendor that suits your specific needs and price range. 3.More vendors are focused on providing an end-to-end experience. Vendor offerings are expanding to include a whole spectrum of services, with fewer and fewer strictly co-location vendors. Info-Tech Insight

4. 4Info-Tech Research Group Market Overview How it got here Where it’s going As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Facility capabilities have become Table Stakes and should no longer be used to differentiate solutions. Instead, focus on vendor engagement and contract flexibility to get the best fit for your requirements. Co-location emerged alongside the growth of internet businesses and e-commerce. Initially, vendors focused strictly on hosting servers and meeting connection requirements. In the wake of the Dot Com Bust, co-location providers began to expand their services to remain in business. They began offering managed services to increase their profit margins. The market has evolved into three tiers based on size, geography, and market influence. Where vendors were formerly differentiated based on capacity or capability, differentiation now relies primarily on the vendor’s size in the market. Co-location has expanded to a multi-billion dollar market in which even system integrators, large Telcos, and hardware vendors are fighting for a presence. Vendors are increasingly including cloud IaaS options within the spectrum of services. Many have been replacing their traditional co-location offerings with cloud alternatives. Customers must consider vendors that offer the full spectrum of services that they may need over the course of the engagement so they can evolve in their relationship with the vendor. The trend of private equity firms and Telcos acquiring co-location and managed service providers does not appear to be slowing down. While private equity acquisitions should not significantly affect customers, Telco and horizontal acquisitions may affect service levels and pricing. Vendors are partnering with providers overseas in response to customer needs. Look for vendors that have worldwide data centers and can help facilitate global expansion plans.

5. 5Info-Tech Research Group US Co-location/Managed Services Vendor Selection Criteria AT&T. This global Telco provider offers hybrid services for the medium to large space. CoreSite. A co-location provider with a presence in all of the major US financial hubs. CyrusOne. A global enterprise co-location provider headquartered in Houston, Texas. Data Intensity. A cloud services and application management company focused on tier one ERP platforms such as the Oracle E-Business Suite. Equinix. An American co-location pioneer with data centers worldwide and a focus on financial verticals. Level 3. This former start-up now has over 200 co-location facilities across the US. NaviSite. A hosting company recently acquired by Time Warner Cable, headquartered in Andover, Massachusetts. Peak 10. A hybrid services provider focused on the Southeastern US. Rackspace. A “managed co-location” provider that owns and manages all equipment in its data centers. Savvis. Now a part of CenturyLink, Savvis provides hybrid services to the mid-sized company. Telx. One of the smaller vendors surveyed, Telx offers pure co-location in urban markets. Terremark. With the recent acquisition of Terremark, Verizon has increased its worldwide hybrid services offering. Windstream. A provider of voice and data network communications and managed services to businesses in the US. Included in this Vendor Landscape: The US co-location/managed services vendor market has three tiers. Tier 1 vendors are highly influential, global vendors with offerings that are generally not as appropriate for the mid-sized market. Tier 2 vendors are typically regional vendors appropriate for the mid-sized space, and Tier 3 vendors offer lower grade facilities that Info-Tech cautions against. For this Vendor Landscape, Info-Tech focused primarily on Tier 2 vendors that offer broad capabilities across multiple platforms and have a strong market presence and/or reputational presence among small to mid-sized enterprises.

6. 6Info-Tech Research Group Criteria Weighting: The Table Stakes US Co-location/Managed Services Criteria & Weighting Factors Vendor is committed to the space and has a future product and portfolio roadmap. Strategy Vendor offers global coverage and is able to sell and provide post-sales support. Reach Vendor is profitable, knowledgeable, and will be around for the long-term. Viability Vendor channel strategy is appropriate and the channels themselves are strong. Channel The three year TCO of the solution is economical. Affordability The delivery method of the solution aligns with what is expected within the space. Architecture The solution’s dashboard and reporting tools are intuitive and easy to use. Usability The solution provides basic and advanced feature/functionality. Features Usability ArchitectureAffordability Product Vendor ViabilityStrategy ChannelReach Product Evaluation Criteria Vendor Evaluation Criteria

7. 7Info-Tech Research Group Vendor Landscape Methodology: Fact Check & Publication Info-Tech takes the factual accuracy of its Vendor Landscapes, and indeed of all of its published content, very seriously. To ensure the utmost accuracy in its Vendor Landscapes, we invite all vendors of evaluated solutions (whether the vendor elected to provide a survey and/or participate in a briefing or not) to participate in a process of Fact Check. Once the research project is complete and the materials are deemed to be in a publication ready state, excerpts of the material specific to each vendor’s solution are provided to the vendor. Info-Tech only provides material specific to the individual vendor’s solution for review encompassing the following: All written review materials of the vendor and the vendor’s product that comprise the evaluated solution. Info-Tech’s Criteria Scores / Harvey Balls detailing the individual and overall Vendor / Product scores assigned. Info-Tech’s Feature Rank / Stop Lights detailing the individual feature scores of the evaluated product. Info-Tech’s Value Index ranking for the evaluated solution. Info-Tech’s Scenario ranking for all considered scenarios for the evaluated solution. Info-Tech does not provide the following: Info-Tech’s Vendor Landscape placement of the evaluated solution. Info-Tech’s Value Score for the evaluated solution. End-user feedback gathered during the research project. Info-Tech’s overall recommendation in regard to the evaluated solution. Info-Tech provides a one-week window for each vendor to provide written feedback. Feedback must be corroborated (be provided with supporting evidence), and where it does, feedback that addresses factual errors or omissions is adopted fully, while feedback that addresses opinions is taken under consideration. The assigned analyst team makes all appropriate edits and supplies an edited copy of the materials to the vendor within one week for final review. Should a vendor still have concerns or objections at that time, they are invited to a conversation, initially via email, but as required and deemed appropriate by Info-Tech, subsequently via telephone, to ensure common understanding of the concerns. Where concerns relate to ongoing factual errors or omissions they are corrected under the supervision of Info-Tech’s Vendor Relations personnel. Where concerns relate to ongoing differences of opinion they are again taken under consideration with neither explicit not implicit indication of adoption. Publication of materials is scheduled to occur within the six weeks immediately following the completion of the research project, but does not occur until the Fact Check process has come to conclusion, and under no circumstances are “pre-publication” copies of any materials made available to any client.

8. 8Info-Tech Research Group Product Pricing Scenario A small media agency with 100 employees has an in-house data center, but as its office grows, the agency is looking to outsource one of its servers, and potentially more if the experience is successful. The agency is interested in obtaining the cost information for one full rack (42U) of co-location space, including the cost of power of at least 110V 20A (‘A’ side/’B’ side included). The expected solution capabilities are as follows: The organization is interested in a vendor that has at least two facilities in the US that it owns and operates. The organization is interested in a facility that has physical security, including biometric access points, pre-action sprinklers and a dry chemical suppression system, and in which power is drawn from two grids. The organization is interested in possibly evolving into a managed services relationship at some point during the engagement. The organization wishes to work with a vendor that has flexibility built into its contracts to allow for potential contraction and/or a change in the required service mix. The organization wishes to work with a vendor that has, at least, basic remote hands support and basic networking services. The organization wishes to have a metered power option. The organization is interested in having Cloud services available (either private, public or hybrid). The organization is concerned with Green IT and would like to engage with a vendor that takes actions to lower its environmental footprint (including free cooling, LEED certification, etc). The organization is interested in a vendor that has second level support available in the US.

9. 9Info-Tech Research Group Product Pricing Scenario, continued For the purpose of this report, the following terms were used to express the multiple service layers of a co- location/managed services provider: ◦ Basic/Pure Co-location. Customer supplied equipment, vendor supplied facility with some basic services such as remote hands. ◦ Managed Services. Customer supplied equipment, but vendor supplied services. ◦ Hybrid Co-location Model. The ability of the customer to subscribe to co-location services and some managed services as they evolve and as it fits their level of need. ◦ Fully Managed Services. Vendor supplied equipment and service. ◦ While consideration was taken into whether or not the vendor provided cloud services to give the customer a full spectrum of services, cloud services were not evaluated in depth. Please refer to Vendor Landscape: Cloud Infrastructure-as-a-Service for additional information on cloud services in the market.Vendor Landscape: Cloud Infrastructure-as-a-Service

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