CDN News: Mobile CDNs, Ono, Kontiki

There’s been a number of news stories today about the content delivery business. Here’s a roundup:

• Does mobile content require specialized CDN services? Stacey Higginbotham at GigaOm looks at a new software product from Dilithium Networks targeting mobile distribution, as well skepticism from CDNs that such services are needed.
• Can CDNs like Akamai and Limelight provide a roadmap for reducing network traffic used by peer-to-peer applications? Researchers at Northwestern have developed a plugin for the Azureus P2P client that identifies nearby users and seeks the shortest route to the files. The software, called Ono, assumes that two computers sent to the same node on a CDN network are close to one another. 
• ISPs and hosting companies are the target market for Aflexi, a new company that offers to aggregate CDN services from multiple providers. See coverage by Contentinople, Lydia Leong and Dan Rayburn.   

Chicago’s Data Fortress for the Digital Economy

The huge building rising above Lake Michigan was built as an icon of the Industrial age, but has been transformed into a lynchpin of the 21st century digital economy. 350 East Cermak Road in Chicago is a historic landmark that serves as a modern information fortress. Its halls are defined by elaborate Gothic architecture dating to its 1912 construction. But open any door - most of which are secured by keycards or biometric security - and you’re likely to walk into a data center managing high-value bits pulsing through the heart of the Internet economy.

The 1.1 million square foot facility is owned by Digital Realty Trust, the nation’s largest operator of data center facilities. Originally developed by the R.R. Donnelley Co. to house the printing presses for the Yellow Book and Sears Catalog, 350 East Cermak was converted to telecom use by the Carlyle Group in 1999, and owned by El Paso Global Networks from 2001-2005. In May 2005 Digital Realty bought the building, then known as the Lakeside Technology Center, for $140 million.

Today it is one of the world’s largest carrier hotels and the nerve center for Chicago’s commodity markets, housing data centers for financial firms attracted by the wealth of peering and connectivity providers among the 70 tenants. 

More than 90 percent of the building is occupied. In November, Digital Realty Trust negotiated an agreement to reclaim 120,000 square feet of unused space from Qwest, which is now being redeveloped as Turn-Key Datacenter space, providing additional inventory in a high-demand market.

The Great Debate: Data Center Containers

Last year Intel convened several events in which leading data center technologists debated some of the hot-button issues that divide the community, and has published the videos. These “great debate” panels are lengthy, but explore these issues in greater depth than is possible in a brief blog item. We’ll be presenting one debate each day this week. Our series begins with an Aug. 18 discussion on the merits of data center containers versus traditional brick and mortar data centers. Panel members making the case for containers include Jud Cooley of Sun Microsystems, Conor Malone from Rackable Systems and Microsoft’s Daniel Costello. The “bricks and mortar” features Sigurd Anderson of IDC Architects, Bruce Myatt of Critical Facilities Solutions, and Phil Reese, a research computing strategist at Stanford University. This video runs about one hour.

For additional video, check out our DCK video archive and the Data Center Videos channel on YouTube.

Center 7 Acquires Colo Provider Tier Four

In a deal combining Utah colocation providers, Center 7 Inc. has acquired Tier Four, the companies said today. Center 7 is also changing its name to C7 Data Centers Inc.

C7 has four data centers, including a new 10,500 square foot data center in Lindon, Utah. The deal adds facilities operated by Tier Four in Orem and Salt Lake City. C7 has plans to open additional green data center facilities in the south portion of Salt Lake County and northern Utah.

“Our new company name—C7 Data Centers—accompanied by corporate re-branding will better represent the company, its success, growth, and goals,” said Nathan Hatch, President and CEO of C7.

The Chill Off, Round Two

Data Center Pulse is an industry group on LinkedIn, which was convened earlier this year by Dean Nelson of Sun Microsystems and Mark Thiele of VMware. The group has launched a channel on YouTube with a video describing the 2009 version of The Chill Off, a side-by-side evaluation of the energy efficiency of leading cooling technologies (see our coverage of the 2008 Chill Off). In this video, Dean Nelson provides a detailed overview of the Chill Off, which is sponsored by the Silicon Valley Leadership Group (SVLG), Data Center Pulse and Lawrence Berkeley National Labs. This video is in two segments running about 11 minutes.

The second segment can be viewed by clicking the “Read More” link at right.

AFCOM: Data Centers Face Budget Cuts

More than a third of data center managers say they have been asked to cut their data center budgets for 2009, according new data from AFCOM, the industry group for data center professionals. The survey results, taken in late November, show that the economic crisis is having an impact on data center spending, but that any belt-tightening will be far from apocalyptic.

Thirty eight percent of managers surveyed by AFCOM said they have been asked to cut data center spending, with the average goal being a 15 percent reduction in the data center budget. Of those making cuts, 20 percent said they would delay or cancel a planned physical expansion of relocation. That equates to about 8 percent of all respondents.

Here’s a look at AFCOM’s breakdown of where managers say their cuts will be targeted:

The areas taking the biggest hits are travel and training, which suggests 2009 may be a challenging year for data center conferences.

Looking Back, Looking Ahead

For those of you who can’t get enough of those roundup/predictions stories for the New Year, here are some lists from other sites:

• Data Center Links: John Rath looks back at 2008 in review.
• Renesys: The Internet Year in Review, 2008.
• Contentinople: Top 10 stories for 2008
• Circle ID: Top 10 stories of 2008
• Telecom Ramblings: Predictions for 2009.

Will Data Centers Be Regulated in 2009?

What changes will the Obama administration bring for the data center industry? The change in Washington figures to create both challenges and opportunities, with the potential for new environmental regulations, as well as new investments in industries that could boost demand for data center services.

President-elect Barack Obama’s appointments for key positions reflect his campaign focus on the development of renewable energy sources and a “green economy.” Obama has named Prof. Steven Chu, a Nobel Price winning physicist and the director of the Lawrence Berkeley National Laboratory (LBNL). Chu is well known in Silicon Valley, and LBNL has been conducted extensive research on energy efficiency in data centers, which are often among the largest users of power within an organization.

“I look forward to the positive attention that our new Secretary of Energy can bring to the whole Department of Energy’s priorities for data center energy efficiency,” said Deborah Grove, Principal with Grove Associates. “Having an advocate in the top spot at this juncture can only bring terrific results.”

While data centers may not be direct targets for regulation, they would feel the impact of broader regulations on corporate carbon emissions. The Obama energy plan includes an “an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.”  A cap and trade system would set limits on corporate emissions, but allow companies to purchase or sell capacity in a carbon trading market.

“I wouldn’t be surprised to see cap and trade mechanisms put in place,” said Christian Belady, Principal Power & Cooling Architect for Microsoft, which has been a leader in measuring power efficiency in its data centers. “Tracking and trading carbon emissions will be a natural next step in evolution.

“However, many companies are still not measuring as they should and will have to invest heavily to ramp up these competencies to meet government requirements,” he added. “I would recommend that companies start tracking power and carbon now.”