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MANAGED HOSTINGBuyer’s Guide
THIS eBOOK WILL HELP YOU:
• Learn the benets of a managed hosting solution
• Decide if you are a good t for managed hosting
• Compare the costs of managed hosting vs. doing it yourself
• Discover questions to ask a prospective provider
877.843.7627 | [email protected] | www.internap.com©2011 Internap Network Services Corporation. All rights reserved. Internap is a registered trademark o Internap.
All other trademarks and brands are the property o their respective owners.
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Table of
Contents 1. Does This Sound Like You?
2. Drivers and Challenges
3. Top Nine Benets o
Managed Hosting
4. One Size Doesn’t AlwaysFit All
5. Strategic ConsiderationsBeore You Buy
6. Weighing Your Options:Cost Comparison
7. Summing it Up: A Short Listo Questions
8. Why Internap?
3
5
8
11
14
18
20
23
MANAGED HOSTING: Managed
hosting is a type o Internet
hosting in which the provider owns
and manages the equipment,
leasing ull control to the client.
Management o the equipment can
include additional services such as
monitoring, backup, installation o
security patches and various levels
o technical support.
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Does This
Sound Like
YOU?
Although they come in dierent favors, small
businesses and enterprises alike still ace
challenges managing their IT Inrastructure. At
each stage o a company lie cycle, a new hurdle
presents itsel. Do you nd yoursel in any othe ollowing situations?
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START-UP
As a start-up, youwork to stretch every
dollar as ar as it
will go. You’ve invested in a couple
servers to handle your growth and
are getting by with your limited IT
knowledge. However, in the long
term, investing in IT Inrastructure
isn’t something you want to
ocus on. Plus the complexity o the
technology continues to advance at
light speed. What’s more, you need
to ocus on developing your product
and don’t have the unds to hire a
dedicated IT manager.
SMB
Business isgrowing, but
technical sta
is spread
thin with
the day-to-
day responsibilities involved in
managing your company’s IT
Inrastructure. The daily burdeno inrastructure management is
becoming distracting, resources are
stretched to a breaking point and your
organization’s ability to ocus on its
core strategic objectives is diminishing.
ENTERPRISE
Your multi-nationalsotware company
has been using
colocation services
or years to house
its IT Inrastructure.
The company has
continually invested
in its own equipment to maintain acertain level o control, but the costs o
a technology upgrade across the entire
ootprint are getting too expensive to
justiy. How do you reduce capital
expenses and still maintain an
advanced inrastructure that is
capable o delivering your solution to
your customers?
If you nd YOURSELF in any of the above scenarios, READ ON.
A MANAGED HOSTING SOLUTION may be right for you.Ì
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Managed hosting is clearly taking o. In act,
growth rates in managed hosting or the
North American and European markets are
estimated in the mid-teens to low 20% range
through 2013. Growth in the Asia-Pacic region
is expected to be notably higher and, in the rest
o the world market, Brazil currently leads the
region in terms o Internet inrastructure activity
and growth potential.* With considerable growth
expected over the next ew years, what are the
drivers behind this demand?
Drivers &Challenges
*Tier One Research Group: Global Managed Hosting Market Overview 2011
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IT INFRASTRUCTURE COSTS
Most data center equipment has an average liespan
o three to ve years. For instance, batteries should be
replaced every two to three years, servers every our yearsand so on. In addition to simple wear and tear, the rate at
which technology is advancing is also driving equipment
replacements. What this means or companies is a constant
technology reresh, which can add up over time. Managed
hosting eliminates the need or your company to purchase
your own hardware, removing you rom the reresh game
entirely.
*Source: Tier One Research Group Global Managed Hosting Market Overview 2011
Most data center equipment hasan average lifespan of 3-5 years.
LIMITED DATA CENTER SPACE
Demand or data center space has been pretty steady according
to an article rom Data Center Knowledge*, however, the supply
o space has become a problem. Why? Receiving nancing tobuild these new data centers has been a challenge or one thing.
At the national level, the pending demand or data center space
may be three times greater than the available supply o quality
space, according to Jim Kerrigan, the Director o the data center
practice at the real estate rm Grubb & Ellis. Cost-cutting has
resulted in increased IT Inrastructure outsourcing, leading to
more demand or services such as managed hosting. “It eels like
someone closed a door, and things are backing up behind it,”
said David Schirmacher, a Vice President at Goldman Sachs.
“There is a huge disparity between[data center space] demand andsupply, and that disparity is projected
to grow over the next ve years.”
Michael Siteman
Real Estate Broker
Jones Lang LaSalle
*Strong Data Center Demand Seen or 2010, Data Center Knowledge
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LIMITED POWER AND COOLING CAPACITY The need or additional power and cooling has become a
key driver or companies looking or data center services.
The average data center in the U.S. is 11 years old and
companies are having a harder time nding acilities with
adequate capabilities to support demand. Under this
circumstance, ease o scalability comes into question
because a majority o data centers simply weren’t designed
or the increased usage o power and cooling. Managed
hosting mitigates scalability challenges, including power and
cooling consumption, because the provider now bears the
burden to expand based on the customer's needs.
LACK OF QUALIFIED PERSONNEL As data center demand remains steady, many companies are
having trouble nding skilled IT sta. In a recent presentation at
Data Center World, Richard Sawyer, a principal o HP's Critical
Facilities, noted that despite huge job losses, more than two million
jobs remain unlled in the United States. “These positions are
valuable, and there’s no unnel to get trained workers into the data
center industry,” says Sawyer. Training is a major issue because
o the specialized nature o data centers and the range o skills
required to operate them. In a managed hosting environment, the
stang o personnel is let to the provider.
Total spending on data centerstafng works out to about 38 %of the utility bill.“The Data Center Skills Gap”
Data Center Knowledge
The average data center in the U.S.is 11 years old.
HELP WANTED
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Top Nine Benets of Managed Hosting
Managed hosting oers a variety o advantages
to IT organizations and companies. To help you
understand some o the advantages associated with
managed hosting, here is a list o the benets most
valued by customers.
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1. REDUCED CAPITAL COSTSInstead o investing in equipment every
three to ve years, your IT Inrastructure
becomes an operating expense,
reducing your up-rontcapital investment. Plus, when
the equipment breaks, needs repairs or
maintenance, you don’t incur additional charges.
2. PREDICTABLE COST MODELManaged hosting ees are billed as a
monthly fat ee so you can easilypredict costs, making budgeting or IT
expenses simple.
3. TIME SAVINGS The learning curve or new enterprise-
level equipment is eased. You nolonger need to spend time and
energy to understand and manage newhardware that would typically be placed on
your own network.
4. CUSTOMIZED OPTIONSManaged hosting solutions aren’t“one-size-ts-all.” You customize a solution
to meet the particular needs o your company. For
a company with signicant IT sta, many dierent
business units and diverse technologies to support,
a more customized managed hosting solution
makes everyone’s lives that much easier.
5. SCALABILITYManaged hosting allows you to easily scale your
inrastructure as your businessgrows. Scalability can help accelerate
global expansion through a managed
hosting provider with a global ootprint
rather than building data centers in-house,
managing employees and coordinating
third-party providers.
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6. TECHNICAL SUPPORTLeading managed hosting providers
have a sta o skilled engineers
delivering customer support. Make
sure there is always a live person on
the phone when you need support.
Check i you will receive alerts or a prompt phone call when
something comes up. Knowing the provider is really keeping
an eye on things rees your sta to ocus on
business critical issues.
7. SINGLE PARTNER
With managed hosting, youdon’t have to worryabout managing vendorrelationships or standard
hardware and sotware. The provider
handles this, and you never have to
be bothered. In addition, by selecting
a hosting provider that oers other
services you can "uture-proo" your inrastructure with theoption to leverage other solutions such as colocation or cloud
rom a single partner.
8. NETWORK AVAILABILITY A managed hosting provider should be able to oer you an
advanced network connection that dynamically routes your
trac over the Internet. Availability is usually expressed as
a percentage o uptime in a given
year. Many providers will state their
availability in their Service Level
Agreement (SLA) as a percentage
such as 99.999 or 99.9. The
dierence? Two ewer nines
means an average o 86 seconds more
downtime every day, or 43 minutes more
downtime every month. An SLA with ve 9's will
ensure your network is up and running when you need it.
9. CONTROLLED ACCESS A managed hosting environment oers
top-notch security with limited physical
access to the acility where your data and
applications are housed. Some important
eatures include 24/7 on-site guards, biometric
nger print and retina scanners and, o
course, key card and padlocked doors. Providers should
be accessing your equipment through Secure Shell(SSH) or Remote Desktop Protocol (RDP). This ensures that the interaction with your data is secure.
You will also want to know who has access to your servers
and how passwords are given out and stored. Ask how
oten passwords are changed and make sure the provider
always changes passwords ater churn. All access to your
environment should be logged as well.
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One SizeDoesn’t Always
Fit All
Outsourcing the responsibilities around
your IT Inrastructure with a managed
hosting solution can provide the traditional
benets o lowering costs and re-
directing resources; however, like many
organizations, you may be asking, “Is
it a t or me?” To make an inormed
decision, ask yoursel the questions on the
ollowing pages.
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CONTROL“Do you require complete control overthe acilities that house your equipmentand/or the assets that dene your ITInrastructure?”
Yes.I your answer is “Yes,” you may want to skip to the cost
comparison chart to see the value a hosted solution can
bring. Your organization must be receptive to the idea and
the potential benets that managed hosting and other
services oer. In order to capitalize on the inherent value o
these solutions, you must be willing to accept the transer o
responsibilities and allow the service provider to execute them.
No.I the answer to the initial question is “no,” the ollowing core
questions can help you determine whether managed hosting
or another service like colocation is best or you. The solution
you choose should match your application requirements.
HARDWARE OWNERSHIP“Do you currently own or have plans toobtain all o the required IT hardware assets
you need to grow your business?”
Yes.Managed hosting could still be a good t down the road i
you change your IT strategy. For now, however, a colocation
option may best suit your needs. You will benet greatly rom
a physical acility that oers space, power, redundancy and
security under a more cost-eective structure. A provider that
can oer both colocation and managed hosting will be yourbest bet.
No.I the answer is “no,” managed hosting may be a viable
option since the provider takes on the capital expenses o
hardware ownership. Proceed to the next question or urther
considerations.
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AVAILABILITY OF CAPITAL“I your organization continues to grow andrequires additional or new IT hardware,do you have access to or a willingness todevote capital expenditures to this eort?”
Yes.I the answer is “yes,” managed hosting could be a good t i
you later decide to avoid additional expenditures. For now, a
colocation option may best suit your needs. A provider that
can oer both will be your best bet or added fexibility.
No.With managed hosting, the solution provider is responsible
or acquiring the necessary hardware, the costs become
re-categorized as monthly operating expenses and capital
expenditures are avoided. You may also consider a partner
who can provide a fexible IT platorm which can serve you
today, as well as over the lie o your business.
AVAILABILITY OF PERSONNEL“Do you have the personnel necessary tooperate your IT deployment today?”
Yes.I the answer is “yes,” managed
hosting could work in the uture i
you decide to minimize IT sta. For
now, a colocation option may best
suit your needs. A provider that can
oer both will be your best bet or
added fexibility.
No.I the answer is “no,” then your organization should consider
the advantages o a managed hosting solution. The hosting
service provider will allocate the appropriate level o personnel
– with the requisite skills and certications – who best ts
the needs and demands o your IT Inrastructure. It is their
responsibility to identiy, hire and train (and re-train) thepersonnel needed to manage the inrastructure.
I you answered "No" to two or more
questions, you should consider managed
hosting as your number one solution. Read
on or more about how to choose a provider.
Ì
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StrategicConsiderations
Before You Buy
Choosing amanaged hosting provider
is astrategic business decision that evolves rom
thoughtul consideration. It is important to know
what to look or so you can get the best solution
or your business.
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FACILITY RELIABILITY The oundation o your hosting service
is the data center acility. Unlike
colocation services, where you access
the acility to maintain the hardware
yoursel, hosting services mean you never
have to visit the data center. In act, the acility
can be located across the country and still provide you with
excellent perormance.
The data center acility in which your services are hosted
must have redundant electrical and cooling inrastructure.
An N+1 rating, where "N" is the primary system or pieceo equipment, means that the acility has what it needs to
operate, plus one ull spare. A well maintained N+1 data
center acility can achieve 99.99% availability or your hosted
services, while a acility designed to a lesser Nstandard can have 14x the downtime.
IP SERVICE QUALITY
You should inquire about the reliability and redundancy o theInternet connections; i you are unable to
send data between the provider's location,
your business or customers due to poor
Internet connectivity, your business will
suer. Ask i your provider uses multiple
carriers or is “carrier neutral.” Carrier
neutral means the provider employs many carriers in the
event that one goes down. In addition, nd out i the provider
oers any Website Perormance Optimization(WPO) technologies such as Intelligent Route Control (IRC),
WAN acceleration or TCP acceleration. These technologies
can speed up your application or website delivery
signicantly.
NETWORK POPULATIONWhen looking at the network and
security o potential providers, you
should also consider the population
o the network devices. Network
population density can bedened as the number o
dierent customers who
have trac passing through the same
inrastructure. While this can be hard to determine and
many times companies are hesitant to reveal this inormation,
you can listen out or key words that oten describe this
situation. Multi-tenant, shared or aggregate are just a ew
terms that reveal there is a layer o inrastructure shared by
multiple customers. Inrastructure shared in this way can have
a negative impact to the overall perormance o any solutions
attached to that inrastructure.
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SECURITY There are two types o security
considerations – physical and logical.
Physical security ocuseson the data center where
the actual environment is
housed. There should be 24/7
security sta on-site, electronic or
biometric scanners and video cameras. In a dedicated
managed hosting environment, only the provider will have
physical access to your equipment, and all access should
be logged. Logical security ocuses on loginand access to your environment. Your provider
should access your equipment through SSH or RDP, ensuring
a secure interaction with your data. Avoid providers that use
Telnet or direct connections, as these indicate a less secure
operating environment. Find out who will have access to your
servers, how passwords are distributed and stored, how oten
passwords are changed and i passwords are changed ateremployee churn. Request a copy o a SAS 70 or SOC 3 audit
report rom the data center provider, which
provides a third-party validation.
QUALITY OF EQUIPMENTWhat type o hardware will be used to host
your business?
Ask questions about the specic equipment, including why this equipment is right or your business and
the number o spares that are generally stocked. It is also
important that your provider oers reasonably new, name-
brand hardware. Name-brand equipment is supported by
the manuacturer, which thoroughly tests products prior
to release. Getting repairs and replacement parts is easier
with name-brand equipment than a “white box” solution.
It is comorting to have technical support rom both the
manuacturer and your hosting provider in case o a
catastrophic event.
MONITORINGOnce you are satised with the physical
aspects o the hosting environment, you
should investigate equipment monitoring.
Ask exactly what the hosting
provider will monitor. Look or
providers who monitor CPU usage, memory
and disk usage and who allow you to checkyour log les, processes running and ports responding. These
eatures help determine i your applications are unctioning
properly and can oten prevent or minimize downtime. The
provider should deliver historical data trends rather than
snapshots so you can view the health o your environment
over time and be able to predict your growth.
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TECHNICAL SUPPORTMake sure that your provider has the
data center and the support centers
staed 24/7. Technicians should
be reachable by e-mail and phone
in the event o any problem. Avoid
automated e-mail attendants, and
make sure your tickets are immediately sent to a human being
who is physically looking at your equipment to determine the
nature o your problem. Talk to the Tier II engineers,
and raise some hypothetical questions aboutwhat you might experience to see how they respond. Finally,
contact reerences that can attest to how the provider
responded in a ailure situation.
ACCOUNT TEAMSWhile you are investigating
your technical support team,
get to know the people whowill be on both your sales and
your account support teams.
Look or redundancy
o roles. I one person should leave, can someone else on
the team easily pick-up where they let o? I a key team player
leaves the vendor’s employment, a database o customer
details or knowledge base will guarantee there is little, i any,
transition period.
FINANCIAL HEALTH ANDREFERENCESMake sure you understand the company’s
nancial condition, how it's audited,
the number o years it has been in
business and its overall perormance
track record. Ask the provider or
reerences, and then call them
all.
COSTS There are many ways to save money
when going with one provider over
another, but the lowest bottom
line isn’t necessarily the best
or your business. It’s important
to understand the trade-os you are
making when saving money. Lack o support, insucient
product lines or unreliable data center acilities can result in
much greater cost or your business in the long run. Some
providers will give you a very low initial price. However, non-
covered items can quickly add up to an amount equal to or
above what another vendor may have oered as a part o the
solution package, so make sure you careully examine each
line item to know exactly what is included.
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WeighingYour Options:
CostComparison
So you may be asking yoursel, "how much will this
cost me?" or "are there any real savings or my
business?" Let us spell it out or you in dollars and
cents. The ollowing page presents a two-year cost
comparison or managing your own IT in-houseversus going with a managed hosting provider. See
the savings or yoursel!
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Year One
6 Person Headcount @ $70,000 $420,0006 Base Level Servers @ $10,000 $60,0001 Load Balancer $10,000
1 Firewall $1,5001 Switch $6,000
Space/Power/Bandwidth $12,000Subtotal Year One $509,500
Year Two
6 Person Headcount @ $70,000 $420,000Maintenance & Hardware Replacements $10,000Space/Power/Bandwidth $12,000
Subtotal Year Two $442,000
Total Two Year Cost $951,500
Year One
Headcount $06 Base Level Servers @ $9,000 $54,0001 Load Balancer $21,900
1 Firewall $2,6401 Switch $0
Space/Power/Bandwidth $12,000Subtotal Year One $90,540
Year Two
Headcount $0Maintenance & Hardware Replacements $0Space/Power/Bandwidth $12,000
6 Base Level Servers $54,0001 Load Balancer $21,900
1 Firewall $2,6401 Switch $0
Subtotal Year Two $90,540
Total Two Year Cost $181,080
IN-HOUSE MANAGEMENT* MANAGED HOSTING*
The Bottom Line?Managed Hosting Cost Savings = $770,420
*Costs are approximate industry averages
Over Two Years
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Summing it Up: A Short List of
Questions
Now that you have chosen to work with amanaged hosting provider, you have an even
more important decision to make: which one?
The ollowing questions summarize the key
considerations outlined earlier in this eBook so you
can get started with your search.
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RELIABILITY• What systems in the acility are N+1?
• How many outages has the provider experienced over
the last year and what were the durations?
IP SERVICE QUALITY• Which carriers are available?
• Is this a carrier neutral acility?
• Does the provider oer any WPO technologies?
SECURITY• Who has access to my data, and is that inormation
logged?
• How does the provider access my equipment? RDP?SSH?
NETWORK POPULATION• Are there multiple customers on the same equipment?
• How dense is the network population?
QUALITY OF EQUIPMENT• What equipment will my data be hosted on?
• Is it a name-brand manuacturer?
• How many spares are kept on-site?
MONITORING• What exactly is monitored and/or managed?
• Will I have access to the monitoring interace?
• Can the provider train my employees to use the
interace?
NOTES
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SUPPORT• What does the SLA cover?
• What types o SLAs are there? Network Availability SLA?
Hardware Replacement SLA?
• What are the support hours?
• What level engineer will I have access to?
• Are engineers available by phone and email?
ACCOUNT TEAM• Who will be my account representative?
• Can I meet my account representative ace-to-ace?
• Will there be a knowledge base in place so transitioning
to another account representative is easy?COSTS• How much does the provider charge or space
and bandwidth?
• Does the provider oer multi-homed bandwidth and
“meet-me rooms” where I can purchase extra bandwidth
i necessary?
FINANCIAL HEALTH AND REFERENCES• Is the company publicly traded or private?
• Do they have any debt, and are they in good standing?
• What do reerences have to say?
NOTES
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Why Internap?TRANSFORM YOUR IT INFRASTRUCTURE
into a competitive advantage with IT IQ rom
Internap, intelligent IT Inrastructure
solutions that enable our customers to ocus
on their core business, improve servicelevels and lower the cost o IT operations.
Our enterprise IP, Content Delivery Network
(CDN), colocation, managed hosting and cloud
solutions are dierentiated by unparalleled levels
o perormance, fexibility and support. Only
Internap combines the superior perormance
o our Managed Internet Route Optimizer™ –
which leverages multiple network connections or
perormance – with the rock-solid reliability o
our 100% network uptime guarantee. Since
1996, thousands o enterprises have entrusted
Internap with the delivery and protection o their
online applications.
INTERNAP MANAGED HOSTING
Our managed hosting services enable enterprises
to optimize their business-critical IT Inrastructure
with lower latency, lower packet loss and high
availability. Built on the oundation o Internap’s
Perormance IP,™ global availability and premium
support, our managed hosting services increase
enterprise operating fexibility while eliminating
the need or the specialized resources required
to provision and manage equipment and
applications or operate an enterprise-grade data
center.
Click Here to FIND OUT How YOUSENDIT uses
Internap's MANAGED HOSTING SOLUTION
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