Colocation Goes to the Edge

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Colocation Goes to the Edge DartPoints Brings Schneider Electric Edge Data Center Solutions to Where You Are DartPoints Dallas, Texas, US

Contents Executive Summary 3 Overview 4 Challenge 5 Solution Approach 5 Results 6 March 2017 2

As we build our company, the Schneider Electric team is incredibly consultative along the way. Couple this with Schneider Electric s marquis and integrated product set we got the best of both worlds. Hugh Carspecken, CEO, DartPoints Executive Summary Leveraging Schneider Electric s edge data center solutions, Dallas-Fort Worth based DartPoints offers customized edge infrastructure solutions with site-specific colocation capabilities for businesses. When starting a company, especially one that s disrupting a traditional business model, the market often responds with skepticism at first. This includes not only prospective customers but potential technology partners as well. Hugh Carspecken, CEO of DartPoints, who has history as an entrepreneur, understood this when he launched a new type of colocation company in 2012. That s why he first created a strong proofof-concept and then focused on finding a provider that was willing to partner through the ups and downs of building out the offerings. It s why he chose Schneider Electric. March 2017 3

Overview Leveraging Schneider Electric s edge data center solutions, Dallas- Fort Worth based DartPoints offers customized data center services with site-specific colocation capabilities for businesses. Schneider Electric took us seriously from the beginning and wanted to create a long-term relationship, Hugh explains. As a startup, a lot of things move quickly, but other things take much longer and there are bound to be mistakes. The Schneider Electric team has been incredibly patient and consultative all along the way. Couple this with Schneider Electric s marquis and integrated product set we re getting the best of both worlds. Going from vision to reality required specialized expertise and a custom solution that was not customized. Our team understands what s compelling the need for edge computing, and our edge solutions were developed with those drivers in mind, according to Vance Peterson, Solution Architect for Schneider Electric. The Internet of Things (IoT) has created incredible demand for connectivity, speed and processing power, which has pushed the need for these capabilities closer to users. At the same time, because Schneider Electric s edge solutions are standardized, factory-tested, modular components, an edge data center can easily be built to a user s needs without customization. This minimizes compatibility issues, streamlines design and construction for quick deployment, while supporting flexibility and scale. To that end, DartPoints has been successfully delivering fully redundant 100 KW systems either on site within a building or on premise on a campus of buildings in its 24/7 colocation offering. It s now looking to multiply the number of local deployments as well as branch out into new regions. Schneider Electric s range has made it very easy for us to ramp up and to create a cohesive data center versus having to cobble different pieces together. Hugh Carspecken, CEO DartPoints Customer Benefits Traditional colocation alternative No capital expense outlay; lower TCO Full industry-specific compliance Convenient access to IT equipment Edge location reduces latency Project at a glance Leveraging Schneider Electric s edge data center solutions, Dallas-Fort Worth based DartPoints offers customized edge infrastructure solutions with site-specific colocation capabilities for businesses. March 2017 4

Challenge Traditionally, enterprises and small-to-mediumsized companies had two choices: run their own private data centers or colocate in a larger data center. Often times the decision between these two meant a tradeoff with control, security, flexibility or cost efficiency. In particular, running private data centers has become more challenging, according to Hugh, as security and disaster risks, regulation and demand escalate, while budgets shrink. Plus, with the speed of business today, companies are being forced to focus only on their core missions, so in-house IT resources have also dwindled. Yet, keeping core applications for operations, email and customer service running is more important than ever. These systems simply cannot come down and must also always be in compliance. Plus, smaller-to-medium-sized businesses are becoming more data driven than ever, so their data center needs have intensified. Satya Baddipudi, EVP, Engineering and Operations, CTO, DartPoints, also cites the new requirements in the data center market driven by users and the IoT. For example, large content providers and MSPs are under pressure to deliver more efficiently so they are looking to move closer to the customers, out at the edge. Edge infrastructure is the foundation of DartPoint s colocation model and ensures uptime and speed at a lower price. Solution Approach Hugh says, We are location independent and bring data centers to our customers. DartPoints enables customers to deploy the capabilities they need today, with room to expand in the future and alleviates the physical infrastructure concerns around square footage, cooling costs and power consumption, while managing all the needs of IT. To do so, DartPoints leverages edge data center products and solutions from Schneider Electric including: Symmetra PX 100 UPS scalable fault tolerant architecture offering high efficiency, performance and availability; InRow Cooling which significantly improves cooling efficiency by reducing power consumption while also increasing capacity and offering the ability to support higher rack density; EcoAisle Containment which increases data center cooling efficiency while protecting critical IT equipment and data center personnel racks; rack power distribution and cable management. StruxureWare Data Center Expert data center infrastructure management (DCIM) is also in place for centralized management and reporting on a slew of data points including availability, temperature, airflow, humidity and security. We wanted a full portfolio of products and solutions, says Hugh, and Schneider Electric s range has made it very easy for us to ramp up and to create a cohesive data center versus having to cobble different pieces together. Vance says the pre-engineered, tested nature of the modular components in the edge solution results in a highly flexible, resilient and adaptable infrastructure which allows DartPoints to deliver quickly and efficiently to its customers. In fact, with the goal of adding on new edge infrastructure implementations and doubling in revenue over the next year, size and speed of deployment are critical both are enabled by Schneider Electric solutions, according to Hugh. Now that our approach is defined and proven and we ve identified key target customers for growth, the relationship with Schneider Electric acts as a trusted advisor as we scale, he says, helping us understand how we should work moving forward and advising us on our future operations based on the team s deep expertise from past experience. 30-40% Reduction in total cost of ownership for a DartPoints customer 5 new markets in 2017 March 2017 5

Results DartPoints edge data centers bring flexibility and control into one industry-compliant, high-performing solution. This edge infrastructure is supported by highly trained and available staff and, since DartPoints retains equipment ownership, customers do not incur capital expenses. All management services and resources are included so the edge data center becomes an operational expense. The total cost of ownership (TCO) for a DartPoints customer is reduced by 30-40%, according to Hugh, and is even greater as time goes on, with a three year TCO savings of 35-45%. DartPoints solutions offer convenience as well. Customers can access IT equipment virtually or physically, anytime. Satya points out that colocating in larger data centers could mean long distance travel to the location, which would be prohibitive to productivity. Typically, businesses turned to big colocation providers for sufficient power and superior connectivity; DartPoints provides the same functions right where they are needed, he says. We are breaking these things down into edge data centers creating a highly distributed and highly connected colocation solution. The initial skepticism from the market has been replaced with respect as DartPoints is now considered an innovator. In fact, the company counts regional data centers and large content providers as its customers, which also range from accounting and law firms to hair salons and home building companies and building owners. There s also been work in the carrier market for provision of over-the-top services. Our strategic approach to partnership is well reflected in our work with DartPoints, says Vance. Contributing to its vision has been rewarding, and it has been exciting to see the company s standing rise over the last four years. Within the Dallas-Fort Worth area, DartPoints plans to build additional properties in 2017. The company also will be expanding into additional geographic areas with an ultimate goal of being in 10 markets in 5 years. We found that 100KW is a sweet spot for our market, says Hugh, With the help of Schneider Electric, we ve created a viable alternative to traditional colocation and built a robust data center solution to meet today s business needs, where it s needed at the edge. March 2017 6

Schneider Electric 132 Fairgrounds Road West Kingston, RI 02892 dcspservicesproviders@schneider-electric.com March 2017 2017 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies.