DATA CENTRES OPERATIONAL ISSUES AND THE CONTRACT. Anthony Day - Associate 20 March 2012
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1 DATA CENTRES OPERATIONAL ISSUES AND THE CONTRACT Anthony Day - Associate 20 March 2012
2 Agenda Operationally what you need? Key Service Levels Managed Services Co-location When things go wrong contractual protections operational protections Your contract things to include What makes a contract "bankable"? Questions
3 Data centre options Fully-managed service Both the premises and the servers are supplier-owned/controlled, with the customer s data being migrated onto the hosted environment. Several customers may use the same data centre (and possibly even the same servers). Co-location The customer rents space and receives affiliated services. The supplier offers a data centre already fitted out with telecoms, cabling, lighting and air conditioning. The customer installs its own servers, sharing the building with other customers. Build and operate The supplier designs (to an agreed specification), builds, fits out, migrates the customer's data and provides on-going data centre services to the customer. The service is likely to be dedicated to one customer. Cloud solution Plethora of different flavours available on the market from virtualised data centres, to SaaS, PaaS, IaaS and DaaS, as well as hybrid cloud and private cloud. Essential characteristic is infrastructure is used from multiple locations to deliver the service
4 Managed Service - Operationally what you need Guaranteed availability Very resilient service Supplier to fix problems fast Flexibility to increase / decrease capacity on demand Up to date infrastructure / technology Need to control your costs
5 Co-location Service operationally what you need Uninterruptible power supply Climate control (temperature and humidity) Flexibility to increase / decrease space Security and health & safety services (eg, fire detection, etc) Professional services, capacity and power management Moves, additions, changes Incident/ problem management Need to control your costs
6 Importance of Connectivity Services Network Design single point of failure Bandwidth capacity Considering the data centre services as a "whole solution" End-to-end responsibility?
7 Service Level Modelling Level of Service Desired level Lowest Level tolerated 100% 90% 80% 50% SC SC All other rights and remedies Breach? Too many times? Service Credit Regime Actual Service Level Achieved Time
8 Managed Services Key Service Levels Availability beware carve-outs "planned" / "emergency maintenance" beware exclusions %
9 Managed Services Key Service Levels Incident/problem management Severity classification Response times Fix times Underlying problems
10 Co-location Key Service Levels Power (uninterruptible power supply) spikes Climate control temperature humidity Security/Access control Issue/root cause analysis
11 When things go wrong Contractual Remedies Did you do your service level modelling? Service credit regimes sole/exclusive remedy service credit cap Damages/heads of loss excluded (e.g. loss of business and data) Termination rights for "Critical Service Level" failures Step-in?
12 When things go wrong Operational Remedies Reporting/measurement format/frequency of reports Governance/Escalation peer-to-peer relationships clear line of escalation (who do you call?) Exit assistance/planning cost hassle effective lock in
13 Power pricing and PUE Pricing how is power priced - can prices be fixed? how has supplier obtained its pricing - can increase/decrease be passed on? Power Usage efficiency (PUE)
14 Your data centre contract - liability Liability caps market standards Recovering for loss of business/loss of profits? Recovering for loss of data Damage to equipment
15 Your data centre contract key points Benchmarking how feasible is benchmarking with a customised solution? Technology refresh and equipment shelf life of 10 years and even less for connectivity what will you be getting as part of the tech refresh? Step-in shared infrastructure implications Change in law? potential "green" DC requirements; revised data protection requirements
16 Your data centre contract termination Termination rights The "usuals" (material breach, insolvency, change of control, etc) "Critical Service Level Failures" Power costs spiralling Termination for convenience (at what price) Termination / Exit assistance Clear exit and data migration obligations spelt out Who pays? Work collaboratively with the new provider to ensure a smooth migration TUPE implications
17 What makes your contract "bankable" Change of control Termination for convenience Assignment / novation provisions
18 Questions
19 DATA CENTRES OPERATIONAL ISSUES AND THE CONTRACT THANK YOU Anthony Day Associate 20 March 2012
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