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    6 Replies Latest reply on Dec 20, 2011 9:59 AM by MAMCLOUD

    What is the best route to start a data center?

    trowerhosting Newbie
      Hello,
      I would first like to thank you for reading this post and helping me deside which is the best route for my company. I own Trower Hosting Service Provider, LLC. and we our partners with InitialOne, LLC. We provide Managed VPS, Managed Dedicated Servers, and also Colocation. I resell Colocation, and the Dedicated Servers. I am wanting to open up a data center and I am wondering what is the best route to take in doing so. I have some cash flow to help go along but not enough to get the data center built and operation ready. I am looking for the cheapest and easies route but good quality. I don't know if I should either purchase a building that is already in place and set up for a data center? Also what is the best way to get a good size loan to keep it running for 6 months to 1 year? I have looked at a few locations to set up a data center. Possible either Central Arkansas. Dallas, Texas, or pennsylvania. Also should i lease or purchase all my equipement? I do have experience in the Data Center Industry as a Linux Administrator. I have RHCA and Network Administrator Degree. What kind of loan should I go for? The economy is so bad is it even worth it? Any pointers? Thank you for your help in advance.
        • Re: What is the best route to start a data center?
          LUCKIEST Guide
          The best route to start a data center, Welcome Chris

          If you want to raise money to finance a new business, you need a Business and marketing Plan.

          Do not look for "the cheapest route". Look for the BEST (not the most expensive).

          Also if you are looking for a loan you will need the Business Plan.

          Good luck, LUCKIEST
            • Re: What is the best route to start a data center?
              trowerhosting Newbie
              Hello luckyist,
              I do have a business plan. I have been looking for the best way but not expensive way and a line of credit for 60k would really help me out on this business. It wouldn't take 60k but that would be the total expenses per year. I would be able to use 20k and be able to get all of that back plus some within 3 months. Also I am wondering do you lend money? Credit line? You may email me at raymond.trower@gmail.com that is my personal email address. Thank you in advance for helping me out.
            • Re: What is the best route to start a data center?
              phanio Pioneer
              Try SCORE (score.org) or SBDC - they are free and can direct you more specifically.

              Business Money Today
              • Re: What is the best route to start a data center?
                consultingbob Wayfarer
                I have to wonder, after a couple of decades in this industry - is opening your own data center really the right direction to go?

                Providing the hosting services, yes. Providing the services, yes. Focus on what you do best, provide fantastic services, even better CUSTOMER service, at a great price and build up your customer base so you can build up your bank account and make profit.

                Creating your own data center at this point, however, seems like it would be incredibly expensive and quite a risk for a company as small as yours (at least as small as it sounds). You would be competing against such giants as Level 3 and you would never be able to compete with them in providing the same type of volume, quality, cost benefits, etc.

                If I were you, i would be focusing on going to one of those big companies and negotiating some great volume discounts for co-located space at their existing facilities and take advantage of their work. Let them worry about the capital expenses, backup generators, utility bills, security, and so on, while you focus on building your business over the next few years. Once you have that customer base built up and your bottom line is looking good, then you'll have a much stronger case for setting up your own center and a strong track record to back it up.

                Just some free advice, for what that's worth :)

                Bob Parker
                Complete Internet Consulting
                • Re: What is the best route to start a data center?
                  fortuitous Newbie
                  As the last poster suggested, if your business is not in Colocation, you should concentrate on finding good colo rental, and not on building your own
                  data center. I recommend studying your business model and finding ways to make each server (or rack) self-sustaining financially. If you do this
                  you don't need to worry about borrowing capital to build a data center.

                  Once you start to lease a large data center space you can get economy of scale on that rental.
                  Also, you should focus on scalabe systems like data storage via SAN, and performance tuning so that your servers perform to their fullest.
                  A good performance consultant is worth his weight in this matter.