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    Secret to saving electricity costs in Bay Area Data Centers, MOVE!!!

    I am back in the bay area and it is amazing the number of server hugging executive decision makers want to have their IT equipment within driving distance.  They have driven up the price of colocation space in the bay area, and ironically the colocation companies don’t want you to be energy efficient, they want you to be energy hogs.  You ever wonder why you are stuck not being to do simple things in colocation space like hot and cold aisles.

    What do you do to save energy costs?  MOVE out of the bay area!!!

    You look at Google, Apple, and Facebook to reduce costs and scale they move out of the bay area.

    Here is a case in point of how the server hugging behavior blinds people to save money.

    Power costs in the Bay Area from PG&E is about $0.13 – 0.14 kW.  Silicon Valley Power can save you a few cents, but you are paying over ten cents a kW.  You can go to Pacific Northwest or East in central US and get below five cents a kilowatt.  If you don’t want to move out of state, closer to the bay area you can go to Sacramento and get eight cents a kW.

    If you are going to move you need connectivity.  It is one of the reasons you are in the bay area.  Advanced Data Centers is an example we’ll use in Sacramento.



    McClellan Park is strategically located to leverage the multitude of carriers providing both wavelength (metro and long-haul) and traditional data/telecommunications services. ADC is committed to maintaining carrier neutrality and diverse options for its client’s connectivity requirements. Tenants will have direct access to the following carriers and service providers: 360, AT&T, Global Crossing, Level3, O1 Communications, Qwest, Sprint, Surewest, Time Warner Telecom, Verizon Business, and XO.

    Power and efficiency


    USGBC LEED© Platinum pre-certification.


    By utilizing energy efficiency strategies such as Air Side Economizers, Hot/Cold Isle and Highly Efficient Chiller and Fan systems, ADC uses 38% less overall energy (to operate the same Critical Load) as industry standard data centers according to the 2003 LBNL Data Center Benchmarking Study. This reduces both the burden on the environment and utility grid, while lowering the total cost of data center ownership.

    Cleaner power


    The ADC McClellan Park data center is served by SMUD, one of the nation's "greenest" utility districts. SMUD’s 2009 Power Mix includes 19% eligible renewable energy (biomass, geothermal, wind, solar), 20% hydroelectric and 60% natural gas. Additionally, customers may elect to receive 100% renewable power under SMUD's Greenergy® program.

    And oh by the way what all the big boys get moving out of state is sales tax exemption.  You can get it at McClellan AFD as well.

    Being located on a former Air Force Base, LAMBRA, an acronym for "Local Agency Military Base Recovery Area", allows our customers to claim a credit equal to the sales or use tax paid or incurred to purchase up to $20 million of qualified property. Qualified property includes high technology equipment, such as computers and electronic processing equipment.

    Now, moving may seem expensive, but it is often the easiest way to save money and be more efficient.

    Think about moving out of the bay area to save energy and costs.  All the big data center players are.

    Click to read more ...


    GOOG, AMZN, AAPL are the media distributors, MSFT lost this ability in the DOJ/EU court

    I am back in the bay area for a couple of days coming from Seattle, and it hit me after visiting a company yesterday that Google, Amazon, and Apple are the top companies in each of the areas – Search, eCommerce, Media who combined are defining media distribution.  What Microsoft lost in the DOJ/EU court cases is the ability to be in control of Windows as a way to define the user experience on PCs for these areas.  If Microsoft didn’t have the consent decree restraints it could be more powerful in search, ecommerce, and media.

    But, even if Microsoft had not lost the DOJ/EU court cases would they have moved to Mobile, Search, and e-reader type of devices like its competitors?

    Microsoft VP recently left Microsoft to Amazon to work on the Kindle.

    Mike Nash, Corporate Vice President of Windows Platform Strategy, will be leaving the company in February. A Microsoft spokesperson confirmed his departure when I asked. From the e-mailed statement:

    “We can confirm that Mike Nash is leaving Microsoft in a couple weeks. In his 19 years, Mike made an impact in number of key roles at the company. We appreciate his service and wish him well.”

    Update: Nash will be joining to work on the Kindle, I hear. I’ve asked to see whether Nash will be replaced. No word back yet on that one…. Microsoft officials declined to comment (at least for now) on when and if that will happen.

    There have been plenty of people who have left Microsoft to go to Google as well.

    But, few who leave Microsoft to go to Apple.  I know plenty including myself who left Apple to go to Microsoft, but not the other way around.

    Google, Amazon, and Apple are all trying to define the new media experience which as much as the content creators are in despair, I think throughout history the distributors, those who owned the channel defined the business model.

    The content Publishers used to own the channel, now it is in the hands of Google, Apple, and Amazon.  Whoever who can define the best business model will win.

    Click to read more ...


    CA, WA, and MO Sales Tax Exemptions for Data Center IT equipment used to lure customers

    Winning a data center deal is many times a matter of a few percentage points difference between sites.  Sales tax exemptions is one area that can help one site win vs. another.  A few examples of state sales tax exemptions for data centers are:

    Advanced Data Centers in Sacramento, CA on a McClellan AFB has a sales tax exemption under LAMBRA.

    Being located on a former Air Force Base, LAMBRA, an acronym for "Local Agency Military Base Recovery Area", allows our customers to claim a credit equal to the sales or use tax paid or incurred to purchase up to $20 million of qualified property. Qualified property includes high technology equipment, such as computers and electronic processing equipment.

    Columbia, Missouri is evaluating an exemption for data centers.

    Data centers could get tax exemption

    Columbia site would benefit.


    Tuesday, February 9, 2010

    JEFFERSON CITY — Columbia would have a better chance of attracting a data center to Ewing Industrial Park if Missouri offered a sales and use tax exemption to those types of businesses, a Senate committee was told yesterday.

    Jim Grice of Kansas City-based ARG Investments LLC told the Senate Ways and Means Committee that a data storage company is considering locating in Columbia while also weighing possibilities in Denver and Chicago. Grice said a sales tax exemption might provide sufficient incentive to the business to make Columbia the successful bidder.

    Source: Regional Economic Development, Inc.

    Center of Attention
    A bill making its way through the Missouri General Assembly would grant a state and local sales and use tax exemption for all machinery equipment, computers and utilities used in new data storage centers and "server farm" facilities. Local economic development officials and developers hope to secure such a facility for Columbia's Ewing Industrial Park.

    and Washington has a 15 month sales tax exemption proposed legislation change.

    Washington State proposes legislation to restart data center construction, 15 month sales tax exemption

    In Olympia, Washington there are two bills introduced with bipartisan support to allow a 15 month sales tax exemption on the purchase and installation of computers for new data centers.

    Legislation to boost rural counties

    DateWednesday, January 27, 2010 at 5:23PM | AuthorWNJ-Editor

    Today is a good day. The bills that we support -- SB 6789 and HB 3147 -- were introduced in Olympia with wide bipartisan support. The 13 sponsors of the bills are from all over the state, from Seattle and Spokane to Walla Walla and Wenatchee. And the state Department of Revenue requested the bills.

    The bills allow a 15-month sales-tax exemption on the purchase and installation of computers and energy for new data centers in rural counties. As the bills state, they provide a short-term economic stimulus that will sustain long-term jobs. In other words, the exemption will be temporary, but the jobs and tax revenue from the centers will boost rural counties for years and years to come.

    Click to read more ...


    Mobile data center impact, Cisco projects 39X global growth 2009 - 2014

    Cisco announced new marketing data projecting a 39-fold increase in Mobile data traffic from 2009-2014.

    Cisco Visual Networking Index Forecast Predicts Continued Mobile Data Traffic Surge

    More Mobile-Ready Devices and Mobile Video to Fuel 39-Fold Global Growth from 2009-2014

    Cisco Visual Networking Index Global Mobile Data Traffic Growth

    Cisco Visual Networking Index Global Mobile Data Traffic Growth

    Cisco Visual Networking Index Mobile Data Traffic Growth by Region

    Cisco Visual Networking Index Mobile Data Traffic Growth by Region

    San Jose, Calif., Feb. 9, 2010 – Cisco today announced the results of the Cisco® Visual Networking Index (VNI) Global Mobile Data Forecast for 2009-2014.

    The research projects that annual global mobile data traffic will reach 3.6 exabytes per month or an annual run rate of 40 exabytes by 2014.  Such a figure equates to a 39-fold increase from 2009 to 2014, or a compound annual growth rate (CAGR) of 108 percent.

    Two major global trends are driving this increase-the proliferation of mobile-ready devices and widespread mobile video content consumption. By 2014, there could be over 5 billion personal devices connecting to mobile networks – and billions more machine-to-machine nodes. Mobile video is projected by the study to represent 66 percent of all mobile data traffic by 2014, increasing 66-fold from 2009 to 2014-the highest growth rate of any mobile data application tracked in the Cisco VNI Global Mobile Data Forecast.

    Interesting little facts are

    Mobile video is projected by the study to represent 66 percent of all mobile data traffic by 2014, increasing 66-fold from 2009 to 2014-

    Global mobile data traffic today is growing today 2.4 times faster than global fixed broadband data traffic.

    Smart phones and laptop air cards are expected to drive more than 90 percent of global mobile traffic by 2014.

    If you aren’t thinking about mobile data out of your data center, you will be.

    This marketing data coincides with their new mobile data switch, ASR 5000.

    Cisco Unveils the Cisco ASR 5000

    End-to-end IP NGN Architecture Supercharges the Mobile Internet for Service Providers

    Cisco ASR 5000

    Cisco ASR 5000

    Cisco Visual Networking Index Global Mobile Data Traffic Growth

    SAN JOSE, CA, Feb. 9, 2010 – Cisco today announced it has expanded the ASR Series platforms with the introduction of the Cisco ASR 5000 as a result of the Starent acquisition.  The addition of the ASR 5000 gives Cisco a comprehensive end-to-endInternet Protocol Next-Generation Network (IP NGN) architecture and offers mobile operators a platform specifically designed to accommodate the rapid growth of mobile Internet traffic and mobile multimedia applications.

    Click to read more ...


    StorageMojo Blog votes for Emotions drive Private Cloud, commenting on James Hamilton’s post

    I wrote on Mike Manos’s comment regarding James Hamilton’s post that Private Clouds are not the future.

    Jan 25, 2010

    Private Clouds Dead or Alive, views from James Hamilton and Mike Manos, logic vs. emotional

    I’ve been thinking about what to write as a response to James Hamilton’s blog post on Private Clouds are not the Future.  It is well written and logical in its efficiency.

    Last week Alistair Croll wrote an excellent InformationWeek article arguing that “the true cloud operators will have an unavoidable cost advantage because it's all they worry about. They'll also be closer to consumers (because they have POPs everywhere and partnerships with content delivery systems), and connecting with consumers and partners will become an increasingly essential part of any enterprise IT strategy.” Have a look at Private Clouds are a Fix, Not the Future.

    Private clouds are better than nothing but an investment in a private cloud is an investment in a temporary fix that will only slow the path to the final destination: shared clouds. A decision to go with a private cloud is a decision to run lower utilization levels, consume more power, be less efficient environmentally, and to run higher costs.

    StorageMojo’s Robin Harris also votes for emotions keeping private clouds future bright.

    Why private clouds are part of the future


    James Hamilton, Amazon architect and a very smart guy, recently blogged about private clouds. In Private Clouds Are Not The Future he argues that economies of scale make public clouds much more efficient than private clouds.

    I think we agree that several effects make web scale public clouds more efficient

    Robin adds his view it isn’t all about economics.

    It isn’t all about the Benjamins
    Economics is not the driver many assume. Individuals and companies often select less economic choices. Some people buy cars that cost $200,000 and get 12 miles to the gallon. Some companies buy $6/GB storage and then utilize just 1/3rd of that costly capacity.

    Often perceived benefits are not well measured in dollars. Convenience, availability, consistency and control often relate to emotional needs and wants that are rarely quantified or questioned.

    But we don’t have to invoke those to understand why private clouds will be part of the computing landscape. Just a quick look at one of the large Internet data centers will tell us what we need to know.

    As much as people talk about Cloud Computing it is rare to hear someone talk about power.  Robin is the exception to the rule.

    Show me the power
    All the advantages of public clouds have analogs in the world of power generation and distribution. Power generation is cheapest when centralized and large-scale distribution systems move power at the lowest cost per watt.

    Electrical power generation and distribution is over 125 years old. The technology is well understood, the industry is mature, and a massive infrastructure — including mile-long coal-hauling trains — supports production and distribution.

    And yet, Google’s massive Dalles, Oregon data centers, built next to a substation a few miles from the nation’s largest hydropower system – one of the world’s most reliable power sources – flanks each data center with generators. I expect Amazon does the same.

    Click to read more ...