Will Zynga's stock performance affect its data center build out? Stock gets close to 8, 20% below IPO

Zynga is close to a stock price of 8 today.

NewImage

Zynga has increased its data center capacity with a recent 9 MW in Vantage.

Zynga signed the largest deal of the year for Grubb & Ellis, leasing nine megawatts of capacity, or six PODs, at a data center in Santa Clara, Calif.

Zynga has about 5 MW on east and west coast locations before this addition.

Part of the IPO was to fund data center expansion.

But to cut costs and diversify its risks, Zynga is now investing more money in building its own data centers, according to the company’s initial public offering filing with the Securities and Exchange Commission.

Zynga considers the investment in its own infrastructure to be important enough to warrant an investment of $100 – $150 million in the second half of 2011, according to the filing.

But with the stock opening at 10 and now at 8 in less than a month, you would think there are a lot of people thinking on how to get the stock price up.  And, one way is to cut costs and figure out how to support more on less hardware which then brings down the need for data center space.

Even though Zynga doesn't own its data centers they can't do much about their PUE.  They can still take efforts to be green in their data center space evaluating how efficiently their code is and their hardware systems.

Now that Zynga is IPO they need to manage their costs to match their revenue if they want their stock to go up long term.

 

Obama's Leaner Military equals investments for intelligence-gathering and cyberwarfare, therefore more data centers

NYTimes reports on President Obama's leaner military.  The part that caught my attention is what the future is.

Mr. Obama, who spoke surrounded by a tableau of the Joint Chiefs of Staff in dress uniforms and with chests full of medals, underscored the national security successes of his administration — the ending of the Iraq war, the killing of Osama bin Laden and the ouster of Col. Muammar el-Qaddafi of Libya — before declaring that the United States would downsize to a smaller ground force, get rid of “outdated cold war-era systems” and step up investments in intelligence-gathering and cyberwarfare.

Pentagon officials also chimed in.

Pentagon officials made it clear that the department’s priorities in coming years would be financing for defense and offense in cyberspace, for Special Operations forces and for the broad area of intelligence, surveillance and reconnaissance.

Reuters reports in more detail on the Defense technology investment.

Cyberwarfare and unmanned drones would continue to grow in priority, as would countering attempts by China and Iran to block U.S. power projection capabilities in areas like the South China Sea and the Strait of Hormuz.

Here is the Defense Strategic Guidance.

NewImage

There may be 1200 data centers being shut down, but the new data centers will be way more fun to work on than the 1200 that were shut down.

27 of 35 IBM's European Data Centers receive Energy Efficiency European Commission Award

IBM has a press release on 27 of its 35 European data centers receiving energy efficiency status.

European Commission Awards IBM for Energy Efficient Data Centers

27 IBM Data Centers in Europe Receive Data Center Energy Efficiency Status

ARMONK, N.Y. - 05 Jan 2012: IBM (NYSE: IBM) today announced the European Commission (EC), the executive body of the European Union, has awarded 27 IBM Data Centers for energy efficiency, based on the European Union (EU) Code of Conduct for Data Centers. The honor represents the largest portfolio of data centers from a single company to receive the recognition.

The EU Code of Conduct was created in response to increasing energy consumption in data centers. The EU aims to inform and encourage data center operators and owners to reduce energy consumption in a cost-effective manner without decreasing mission critical data center functions. The assessment is made against a set of best practices to reduce energy losses which include the usage of energy efficient hardware, installing free cooling and cold aisle containment. Power usage effectiveness (PUE) is an indicator for how efficiently a computer data center uses its power. In May, the Uptime Institute gave IBM data centers a rating of 1.65 for average power usage compared to the industry average of 1.8.

 

 

 

 

 

 

 

 

I had a chance to chat with Rich Lechner, IBM VP, Global Technology Services and Cloud in more detail on the press announcement.

NewImage

One of the thing IBM has achieved in these same facilities is a doubling of compute and storage capacity in three years without increasing power use.

The energy improvements implemented in these data centers helped IBM meet a goal set in 2007 to double the IT capacity of its data centers within three years without increasing the power consumption.

Rich took some time to explain the range of 27 facilities that have achieved the award and there are more facilities that are planned to be submitted.  IBM also has services to help companies get their own certification for their facilities.

For more details on what IBM did to achieve the energy efficiency improvements check out this PDF.  Here is a graph you'll find interesting.

NewImage

One of the tangents we took is discussing IBM's modular/flexible data center designs.  Rich said there are 500 data center sites that use IBM's flexible modular architecture described here.

Upgrade to a modular data center design with IBM. Modular data centers are not about containerization, but about using smaller increments of standardized components. These enable you to match your business requirements to your IT requirements and add data center capacity when needed. A modular approach can enable you to pay as you grow and buy only what you need, when you need it, to defer capital and operational costs by perhaps 40 to 50 percent.

Data centers designed by IBM deliver flexibility throughout their entire life cycles, over an expected life of 10 or 20 years. But how can you estimate the capacity your business will need years from now? The best up-front investment is a statement of requirements created during data center strategy planning. We've infused our data center strategy with mathematical modeling services and tools to help bring the future into the present, so you can take action today. The analytics are designed to reveal your existing data center's status. They report on your data center's financial and operational terms, while modeling alternative scenarios based on your business data.

IBM services for designing a flexible, smarter data center

Data Center Design and Construction Services can help you design your data center with the future in mind.

Steve Manos accepts leadership role at Norland Managed Services as GM of North America, parties don't stop

Steve Manos announced he was leaving Lee Technologies.

I hope this email finds everyone well rested and recharged from the oasis that is the last week of the year.  It is with mixed emotion that I type this email to notify everyone of my resignation from Lee Technologies to pursue a new endeavor in 2012.  All of you have played a role in my life here at Lee over the last few years whether as clients, partners, co-workers, vendors, etc.  For whatever form our relationship has taken, it is your friendship that has bound us and I am grateful to have forged that during my time here.  Lee Technologies has been an incredible experience for me and the organization has provided me tremendous opportunity and growth.

 

I believe a Roman philosopher once said that from all endings come new beginnings.  Many of you will agree that, in my case, a more fitting proverb would be that of an Irish nature.

 

The Parting Glass

 

Of all the money that e'er I had, 
I spent it in good company. 
And all the harm I've ever done, 
alas it was to none but me. 
And all I've done for want of wit 
to memory now I can't recall; 
So fill to me the parting glass, 
Good night and joy be to you all. 

Of all the comrades that e'er I had, 
They're sorry for my going away. 
And all the sweethearts that e'er I had, 
They'd wish me one more day to stay. 
But since it falls unto my lot, 
That I should rise and you should not, 
I gently rise and I’ll softly call, 
Good night and joy be to you all.

Steve has a new job that will be public soon, but given his new role is starting a North America operations and the web site will not be ready for a couple of weeks Steve let me share what his new job is.  Steve will be General Manager of Norland Managed Services for North America.  This means for those of you who use Norland in Europe, you will now have the option of using the same company in the USA.

Critical Environment Services

We maintain the ‘mission critical’ engineering and infrastructure facilities fundamental to a clients business – facilities whose failure would have a major impact on profit, revenue and reputation.

Working round the clock, our specialist staff oversee and maintain the complex technical infrastructure of leading banks and financial service institutions, data centres, telecommunications, high security broadcasting production and research facilities.

We have harnessed Norland’s unrivalled experience and expertise to develop our pioneering approach ‘Critical Engineering and Risk Management’  (CERM™), which has reduced the operational risk of incidents in critical environments by up to 80%.

Installing and sustaining the correct culture is fundamental to the application and ongoing success of CERM™. We work with our clients to ensure that the entire team is immersed in risk reduction. Change management tools, specialised training, and Norland’s unique management style will support swift culture change, and then sustain this over the long term.

Research has shown that over 90% of business impacts can be traced to a failure of people or process. We’ve taken best practice from nuclear, petrochem and aviation maintenance to develop a bespoke human factors approach which focuses on reducing risk through people.

Steve has created a following with his Lee Tech on Tap and Parties in LV.  And, written quite a few popular blog posts.  I have given Steve the same advice I gave to his brother Mike.  Develop your own brand.  Develop your own blog and twitter following.  Lee Tech on Tap needs to be renamed to Manos on Tap or something like that.

(and yes, the Steve Manos parties in Vegas and other places will continue…)

We'll see when the next LV party is.

Is this the last of Great Steven Manos LV parties, now that Lee Tech is part of Schneider Electric?

Steven Manos asked me if I had any pictures from the party at Pure Nightclub in Las Vegas at AFCOM/Data Center World 2011

image

Steven Manos and Katie O'Hara (no relation to me Dave Ohara)

If you are having fun at a LV party the last thing you want is a blogger taking pictures, so I don't bring a camera.

David Schirmacher returns like a boomerang to his Commercial Real Estate Operations Role at Digital Realty Trust as Sr VP of Tech Ops

Digital Realty Trust announced David Schirmacher's new role at Digital Realty Trust as Sr VP of Technical Operations.

Digital Realty Names David Schirmacher Senior Vice President of Technical Operations

Industry Veteran Brings Best-In-Class Experience to Lead Company's Global Technical Operations
Company Release - 01/03/2012 08:00

NewImage

SAN FRANCISCOJan. 3, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global wholesale datacenter provider, has named David Schirmacher Senior Vice President of Technical Operations. Schirmacher will be responsible for technical operations, uptime and reliability of Digital Realty's global portfolio of data center properties in North AmericaEurope and Asia-Pacific. He will report to Senior Vice President of Portfolio Management Dave Caron and will be based in the Metro New York region.

I've had the pleasure of many hours of conversations with David.  For those you who are not familiar with David, here is his background.

Schirmacher joins Digital Realty from FieldView Solutions, a venture capital- backed software company focused on driving data center operational performance, where he was a principal and the Chief Strategy Officer. Prior to FieldView Solutions, Schirmacher was Vice President, Global Head of Engineering and Critical Systems at Goldman Sachs. During his 12+ years at Goldman Sachs, Schirmacher was focused on developing data center strategy and IT infrastructure for the company's headquarters, trading floor, branch offices and data center facilities around the world. Schirmacher has also held senior executive and technical positions at Compass Management and Leasing, and Jones Lang LaSalle.

Back in October David said he was thinking of making a big move.  At 7x24 Exchange in Nov, David let me know of his new job and how it will be announced shortly. One of the things I told him is don't hurry on making the announcement as he was about to leave on a  week cruise after the event, so he wouldn't be reachable and when he returns the thanksgiving holidays start the slow news period.  So, guess what Jan 3, 2012, the press announcement goes out from Digital Realty Trust.  When David told me of the news of his new role as Sr VP of Technical Operations, he told me the story of how Digital Realty had asked for people he thought of who could do the job.  He threw the names out, but Digital Realty kept on coming back to see if he would take the job.  David was returning to his past like jobs he had in real estate operations he had at Compass Management and Jones Lang LaSalle.  The image came to mind is like a boomerang that comes back.  It takes skill to throw a boomerang to come back.

David has his share of data center skills, and is one of the great guys to discuss new ideas.  The Digital Realty press release chooses to emphasize David's strength of thought leadership.

Considered a thought leader within the data center industry, Schirmacher has held a leadership position at 7x24 Exchange International, served on the Technical Advisory Board of Mission Critical Magazine, and spoken widely at industry conferences.

I've had the luxury of knowing David's change would be announced in the new year.  And, as expected he has a lot of phone calls today.