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MANAGED HOSTING Buyer’s Guide

THIS eBOOK WILL HELP YOU:
• Learn the benefits of a managed hosting solution • Decide if you are a good fit for managed hosting • Compare the costs of managed hosting vs. doing it yourself • Discover questions to ask a prospective provider

877.843.7627 | contactsales@internap.com | www.internap.com ©2011 Internap Network Services Corporation. All rights reserved. Internap is a registered trademark of Internap. All other trademarks and brands are the property of their respective owners.

MANAGED HOSTING: Managed hosting is a type of Internet hosting in which the provider owns and manages the equipment, leasing full control to the client. Management of the equipment can include additional services such as monitoring, backup, installation of security patches and various levels of technical support.

Table of

Contents
1. Does This Sound Like You? 2. Drivers and Challenges 3. Top Nine Benefits of Managed Hosting 4. One Size Doesn’t Always Fit All 5. Strategic Considerations Before You Buy 6. Weighing Your Options: Cost Comparison 7. Summing it Up: A Short List of Questions 8. Why Internap?

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small businesses and enterprises alike still face challenges managing their IT Infrastructure.internap.com | www.Does This Although they come in different flavors. a new hurdle presents itself. Do you find yourself in any of the following situations? Sound Like YOU? Tweet this eBook! | 877.com [3] .843. At each stage of a company life cycle.7627 | contactsales@internap.

A MANAGED HOSTING SOLUTION may be right for you. What’s more.START-UP As a start-up.internap. Plus the complexity of the technology continues to advance at light speed. resources are stretched to a breaking point and your organization’s ability to focus on its core strategic objectives is diminishing. SMB Business is growing. ENTERPRISE Your multi-national software company has been using colocation services for years to house its IT Infrastructure.7627 | contactsales@internap.com | www. you need to focus on developing your product and don’t have the funds to hire a dedicated IT manager. in the long term. How do you reduce capital expenses and still maintain an advanced infrastructure that is capable of delivering your solution to your customers? If you find YOURSELF in any of the above scenarios. but technical staff is spread thin with the day-today responsibilities involved in managing your company’s IT Infrastructure.843. You’ve invested in a couple servers to handle your growth and are getting by with your limited IT knowledge. investing in IT Infrastructure isn’t something you want to focus on. The company has continually invested in its own equipment to maintain a certain level of control. The daily burden of infrastructure management is becoming distracting. However.com . you work to stretch every dollar as far as it will go. Ì [4] Tweet this eBook! | 877. READ ON. but the costs of a technology upgrade across the entire footprint are getting too expensive to justify.

what are the drivers behind this demand? *Tier One Research Group: Global Managed Hosting Market Overview 2011 Tweet this eBook! | 877.com [5] .* With considerable growth expected over the next few years. In fact. in the rest of the world market.843.com | www. growth rates in managed hosting for the North American and European markets are estimated in the mid-teens to low 20% range through 2013. Growth in the Asia-Pacific region is expected to be notably higher and.internap. Brazil currently leads the region in terms of Internet infrastructure activity and growth potential.Drivers & Challenges Managed hosting is clearly taking off.7627 | contactsales@internap.

Why? Receiving financing to build these new data centers has been a challenge for one thing. the Director of the data center practice at the real estate firm Grubb & Ellis. and that disparity is projected to grow over the next five years.com [6] . a Vice President at Goldman Sachs.843. In addition to simple wear and tear.com | www. batteries should be replaced every two to three years. however. *Strong Data Center Demand Seen for 2010. “It feels like someone closed a door.internap. What this means for companies is a constant technology refresh. servers every four years and so on. LIMITED DATA CENTER SPACE Demand for data center space has been pretty steady according to an article from Data Center Knowledge*. which can add up over time. Cost-cutting has resulted in increased IT Infrastructure outsourcing. For instance. according to Jim Kerrigan. the rate at which technology is advancing is also driving equipment replacements. the supply of space has become a problem. “There is a huge disparity between [data center space] demand and supply. removing you from the refresh game entirely. Data Center Knowledge Most data center equipment has an average lifespan of 3-5 years. the pending demand for data center space may be three times greater than the available supply of quality space. leading to more demand for services such as managed hosting.7627 | contactsales@internap.” Michael Siteman Real Estate Broker Jones Lang LaSalle At the national level. and things are backing up behind it.” said David Schirmacher. Managed hosting eliminates the need for your company to purchase your own hardware. *Source: Tier One Research Group Global Managed Hosting Market Overview 2011 Tweet this eBook! | 877.IT INFRASTRUCTURE COSTS Most data center equipment has an average lifespan of three to five years.

is 11 years old and companies are having a harder time finding facilities with adequate capabilities to support demand. The average data center in the U. Richard Sawyer. more than two million jobs remain unfilled in the United States.S. ease of scalability comes into question because a majority of data centers simply weren’t designed for the increased usage of power and cooling. The average data center in the U. and there’s no funnel to get trained workers into the data center industry. including power and cooling consumption.” says Sawyer. noted that despite huge job losses. LACK OF QUALIFIED PERSONNEL As data center demand remains steady. Total spending on data center staffing works out to about 38 % of the utility bill. a principal of HP's Critical Facilities. Training is a major issue because of the specialized nature of data centers and the range of skills required to operate them.843. “The Data Center Skills Gap” Data Center Knowledge HELP WANTED Tweet this eBook! | 877. Managed hosting mitigates scalability challenges. “These positions are valuable. the staffing of personnel is left to the provider.LIMITED POWER AND COOLING CAPACITY The need for additional power and cooling has become a key driver for companies looking for data center services. many companies are having trouble finding skilled IT staff.com | www.7627 | contactsales@internap. is 11 years old.com [7] .S. In a recent presentation at Data Center World. because the provider now bears the burden to expand based on the customer's needs. In a managed hosting environment. Under this circumstance.internap.

843.7627 | contactsales@internap. of Managed Hosting Tweet this eBook! | 877.Top Nine Benefits Managed hosting offers a variety of advantages to IT organizations and companies.internap.com [8] . To help you understand some of the advantages associated with managed hosting.com | www. here is a list of the benefits most valued by customers.

For a company with significant IT staff. 5. Scalability can help accelerate global expansion through a managed hosting provider with a global footprint rather than building data centers in-house.7627 | contactsales@internap. PREDICTABLE COST MODEL Managed hosting fees are billed as a monthly flat fee so you can easily predict costs.com [9] . when the equipment breaks. your 3.1. SCALABILITY Managed hosting allows you to easily scale infrastructure as your business grows. You no longer need to spend time and energy to understand and manage new hardware that would typically be placed on your own network. your IT Infrastructure becomes an operating expense. needs repairs or maintenance.843.com | www. managing employees and coordinating third-party providers.” You customize a solution to meet the particular needs of your company. REDUCED CAPITAL COSTS Instead of investing in equipment every three to five years. making budgeting for IT expenses simple. many different business units and diverse technologies to support. Plus. 2. TIME SAVINGS The learning curve for new enterpriselevel equipment is eased. a more customized managed hosting solution makes everyone’s lives that much easier. you don’t incur additional charges. CUSTOMIZED OPTIONS Managed hosting solutions aren’t “one-size-fits-all. 4. reducing your up-front capital investment.internap. Tweet this eBook! | 877.

8. Providers should be accessing your equipment through Secure Shell (SSH) or Remote Desktop Protocol (RDP).7627 | contactsales@internap. Make sure there is always a live person on the phone when you need support. 9. by selecting a hosting provider that offers other services you can "future-proof" your infrastructure with the option to leverage other solutions such as colocation or cloud from a single partner.com [ 10 ] . Check if you will receive alerts or a prompt phone call when something comes up. 7. Many providers will state their availability in their Service Level Agreement (SLA) as a percentage such as 99. Some important features include 24/7 on-site guards. Knowing the provider is really keeping an eye on things frees your staff to focus on business critical issues. and you never have to be bothered.6. The difference? Two fewer nines means an average of 86 seconds more downtime every day. Availability is usually expressed as Tweet this eBook! | 877. This ensures that the interaction with your data is secure. NETWORK AVAILABILITY A managed hosting provider should be able to offer you an advanced network connection that dynamically routes your traffic over the Internet. key card and padlocked doors. The provider handles this. of course. CONTROLLED ACCESS A managed hosting environment offers top-notch security with limited physical access to the facility where your data and applications are housed.999 or 99. or 43 minutes more downtime every month. Ask how often passwords are changed and make sure the provider always changes passwords after churn. You will also want to know who has access to your servers and how passwords are given out and stored. An SLA with five 9's will ensure your network is up and running when you need it.9. you don’t have to worry about managing vendor relationships for standard hardware and software. TECHNICAL SUPPORT Leading managed hosting providers have a staff of skilled engineers delivering customer support. All access to your environment should be logged as well. SINGLE PARTNER With managed hosting.843. a percentage of uptime in a given year.com | www.internap. In addition. biometric finger print and retina scanners and.

however.One Size Outsourcing the responsibilities around your IT Infrastructure with a managed hosting solution can provide the traditional benefits of lowering costs and redirecting resources. Doesn’t Always Fit All Tweet this eBook! | 877.843. “Is it a fit for me?” To make an informed decision.7627 | contactsales@internap.com | www.com [ 11 ] . like many organizations.internap. you may be asking. ask yourself the questions on the following pages.

redundancy and security under a more cost-effective structure. however. Tweet this eBook! | 877. For now.com | www.” you may want to skip to the cost comparison chart to see the value a hosted solution can bring.CONTROL “Do you require complete control over the facilities that house your equipment and/or the assets that define your IT Infrastructure?” Yes. No. power. In order to capitalize on the inherent value of these solutions. The solution you choose should match your application requirements. A provider that can offer both colocation and managed hosting will be your best bet. If the answer to the initial question is “no. HARDWARE OWNERSHIP “Do you currently own or have plans to obtain all of the required IT hardware assets you need to grow your business?” Yes.internap.com [ 12 ] . Your organization must be receptive to the idea and the potential benefits that managed hosting and other services offer. If your answer is “Yes.843. No.7627 | contactsales@internap. Proceed to the next question for further considerations. you must be willing to accept the transfer of responsibilities and allow the service provider to execute them. You will benefit greatly from a physical facility that offers space. Managed hosting could still be a good fit down the road if you change your IT strategy.” managed hosting may be a viable option since the provider takes on the capital expenses of hardware ownership. If the answer is “no. a colocation option may best suit your needs.” the following core questions can help you determine whether managed hosting or another service like colocation is best for you.

a colocation option may best suit your needs. the costs become re-categorized as monthly operating expenses and capital expenditures are avoided.com Ì [ 13 ] . You may also consider a partner who can provide a flexible IT platform which can serve you today. It is their responsibility to identify.” managed hosting could work in the future if you decide to minimize IT staff. do you have access to or a willingness to devote capital expenditures to this effort?” Yes. A provider that can offer both will be your best bet for added flexibility. Read on for more about how to choose a provider. If you answered "No" to two or more questions.internap.” then your organization should consider the advantages of a managed hosting solution. If the answer is “yes.AVAILABILITY OF CAPITAL “If your organization continues to grow and requires additional or new IT hardware. No. If the answer is “yes. With managed hosting.843. you should consider managed hosting as your number one solution. For now. If the answer is “no. hire and train (and re-train) the personnel needed to manage the infrastructure.” managed hosting could be a good fit if you later decide to avoid additional expenditures.7627 | contactsales@internap. the solution provider is responsible for acquiring the necessary hardware. a colocation option may best suit your needs. AVAILABILITY OF PERSONNEL “Do you have the personnel necessary to operate your IT deployment today?” Yes.com | www. No. A provider that can offer both will be your best bet for added flexibility. as well as over the life of your business. For now. The hosting service provider will allocate the appropriate level of personnel – with the requisite skills and certifications – who best fits the needs and demands of your IT Infrastructure. Tweet this eBook! | 877.

843. Tweet this eBook! | 877.com | www.internap.7627 | contactsales@internap.Strategic Considerations Before You Buy Choosing a managed hosting provider is a strategic business decision that evolves from thoughtful consideration. It is important to know what to look for so you can get the best solution for your business.com [ 14 ] .

In addition. shared or aggregate are just a few terms that reveal there is a layer of infrastructure shared by multiple customers.internap. you can listen out for key words that often describe this situation. if you are unable to send data between the provider's location. In fact. standard can have 14x the downtime. The data center facility in which your services are hosted must have redundant electrical and cooling infrastructure. where you access the facility to maintain the hardware yourself. WAN acceleration or TCP acceleration. means that the facility has what it needs to operate. plus one full spare. you should also consider the population of the network devices. find out if the provider Tweet this eBook! | 877.FACILITY RELIABILITY The foundation of your hosting service is the data center facility. while a facility designed to a lesser N NETWORK POPULATION When looking at the network and security of potential providers.com [ 15 ] . services mean you never have to visit the data center. hosting offers any Website Performance Optimization (WPO) technologies such as Intelligent Route Control (IRC). IP SERVICE QUALITY You should inquire about the reliability and redundancy of the Internet connections. A well maintained N+1 data center facility can achieve 99. While this can be hard to determine and many times companies are hesitant to reveal this information. your business or customers due to poor Internet connectivity. your business will suffer. the facility can be located across the country and still provide you with excellent performance.” Carrier neutral means the provider employs many carriers in the event that one goes down. These technologies can speed up your application or website delivery significantly.843. Infrastructure shared in this way can have a negative impact to the overall performance of any solutions attached to that infrastructure.7627 | contactsales@internap.com | www.99% availability for your hosted services. An N+1 rating. Ask if your provider uses multiple carriers or is “carrier neutral. where "N" is the primary system or piece of equipment. Network population density can be defined as the number of different customers who have traffic passing through the same infrastructure. Multi-tenant. Unlike colocation services.

SECURITY There are two types of security considerations – physical and logical. Getting repairs and replacement parts is easier with name-brand equipment than a “white box” solution.internap. how often passwords are changed and if passwords are changed after employee churn. Look for providers who monitor CPU usage. Name-brand equipment is supported by the manufacturer. Find out who will have access to your servers.7627 | contactsales@internap. It is also important that your provider offers reasonably new. Physical security focuses on the data center where the actual environment is housed. QUALITY OF EQUIPMENT What type of hardware will be used to host your business? Tweet this eBook! | 877. how passwords are distributed and stored. Logical security focuses on login and access to your environment.com | www. including why this equipment is right for your business and the number of spares that are generally stocked. These features help determine if your applications are functioning properly and can often prevent or minimize downtime. The provider should deliver historical data trends rather than snapshots so you can view the health of your environment over time and be able to predict your growth. It is comforting to have technical support from both the manufacturer and your hosting provider in case of a catastrophic event. Ask exactly what the hosting provider will monitor. MONITORING Once you are satisfied with the physical aspects of the hosting environment.843. you should investigate equipment monitoring. which thoroughly tests products prior to release. Request a copy of a SAS 70 or SOC 3 audit report from the data center provider. Ask questions about the specific equipment.com [ 16 ] . There should be 24/7 security staff on-site. Avoid providers that use Telnet or direct connections. as these indicate a less secure operating environment. In a dedicated managed hosting environment. processes running and ports responding. memory and disk usage and who allow you to check your log files. which provides a third-party validation. ensuring a secure interaction with your data. electronic or biometric scanners and video cameras. only the provider will have physical access to your equipment. namebrand hardware. Your provider should access your equipment through SSH or RDP. and all access should be logged.

how it's audited. insufficient product lines or unreliable data center facilities can result in much greater cost for your business in the long run. get to know the people who will be on both your sales and your account support teams. a database of customer details or knowledge base will guarantee there is little. If one person should leave. Finally. the provider for references.internap. and raise some hypothetical questions about what you might experience to see how they respond. Tweet this eBook! | 877. can someone else on the team easily pick-up where they left off? If a key team player leaves the vendor’s employment. the number of years it has been in business and its overall performance track record. Avoid automated e-mail attendants.com [ 17 ] . and then call them all. but the ACCOUNT TEAMS While you are investigating your technical support team. lowest bottom line isn’t necessarily the best for your business. Talk FINANCIAL HEALTH AND REFERENCES Make sure you understand the company’s financial condition.TECHNICAL SUPPORT Make sure that your provider has the data center and the support centers staffed 24/7.7627 | contactsales@internap. Look for redundancy of roles. However. so make sure you carefully examine each line item to know exactly what is included. transition period. contact references that can attest to how the provider responded in a failure situation. and make sure your tickets are immediately sent to a human being who is physically looking at your equipment to determine the nature of your problem.843.com | www. It’s important to understand the trade-offs you are making when saving money. Ask to the Tier II engineers. Lack of support. Technicians should be reachable by e-mail and phone in the event of any problem. Some providers will give you a very low initial price. noncovered items can quickly add up to an amount equal to or above what another vendor may have offered as a part of the solution package. COSTS There are many ways to save money when going with one provider over another. if any.

7627 | contactsales@internap.843.com | www. The following page presents a two-year cost comparison for managing your own IT in-house versus going with a managed hosting provider.com [ 18 ] .Weighing Your Options: Cost Comparison So you may be asking yourself.internap. "how much will this cost me?" or "are there any real savings for my business?" Let us spell it out for you in dollars and cents. See the savings for yourself! Tweet this eBook! | 877.

500 $420.000 1 Load Balancer 1 Firewall 1 Switch Space/Power/Bandwidth Subtotal Year One Year Two Headcount Maintenance & Hardware Replacements Space/Power/Bandwidth 6 Base Level Servers 1 Load Balancer 1 Firewall 1 Switch Subtotal Year Two Total Two Year Cost $0 $54.000 MANAGED HOSTING* Year One Headcount 6 Base Level Servers @ $9.540 $181.500 The Bottom Line? Managed Hosting Cost Savings = $770.900 $2.000 $12.843.7627 | contactsales@internap.640 $0 $90.000 $509.000 6 Base Level Servers @ $10.420 Over Two Years *Costs are approximate industry averages Tweet this eBook! | 877.000 1 Load Balancer 1 Firewall 1 Switch Space/Power/Bandwidth Subtotal Year One Year Two 6 Person Headcount @ $70.internap.540 $0 $0 $12.000 $12.000 $54.080 Subtotal Year Two Total Two Year Cost $442.000 $10.000 $60.900 $2.000 $21.000 $1.000 $951.com [ 19 ] .IN-HOUSE MANAGEMENT* Year One 6 Person Headcount @ $70.000 $90.500 $6.000 Maintenance & Hardware Replacements Space/Power/Bandwidth $420.640 $0 $12.000 $10.com | www.000 $21.

Summing it Up: A Short List of Questions Now that you have chosen to work with a managed hosting provider.843. you have an even more important decision to make: which one? The following questions summarize the key considerations outlined earlier in this eBook so you can get started with your search.internap. Tweet this eBook! | 877.7627 | contactsales@internap.com [ 20 ] .com | www.

843.com [ 21 ] . and is that information 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 manufacturer? • How many spares are kept on-site? MONITORING • What exactly is monitored and/or managed? • Will I have access to the monitoring interface? • Can the provider train my employees to use the interface? Tweet this eBook! | 877.com | www.7627 | contactsales@internap.internap.RELIABILITY • What systems in the facility are N+1? • How many outages has the provider experienced over the last year and what were the durations? NOTES IP SERVICE QUALITY • Which carriers are available? • Is this a carrier neutral facility? • Does the provider offer any WPO technologies? SECURITY • Who has access to my data.

com | www. and are they in good standing? • What do references have to say? Tweet this eBook! | 877.7627 | contactsales@internap.SUPPORT • What does the SLA cover? • What types of 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? NOTES ACCOUNT TEAM • Who will be my account representative? • Can I meet my account representative face-to-face? • Will there be a knowledge base in place so transitioning to another account representative is easy? COSTS • How much does the provider charge for space and bandwidth? • Does the provider offer multi-homed bandwidth and “meet-me rooms” where I can purchase extra bandwidth if necessary? FINANCIAL HEALTH AND REFERENCES • Is the company publicly traded or private? • Do they have any debt.com [ 22 ] .internap.843.

com | www.Why Internap? TRANSFORM YOUR IT INFRASTRUCTURE into a competitive advantage with IT IQ from Internap.internap. thousands of enterprises have entrusted Internap with the delivery and protection of their online applications. lower packet loss and high availability. Our enterprise IP. colocation. INTERNAP MANAGED HOSTING Our managed hosting services enable enterprises to optimize their business-critical IT Infrastructure with lower latency. improve service levels and lower the cost of IT operations. managed hosting and cloud solutions are differentiated by unparalleled levels of performance. Since 1996. flexibility and support. Click Here to FIND OUT How YOUSENDIT uses Internap's MANAGED HOSTING SOLUTION Tweet this eBook! | 877.™ global availability and premium support. Content Delivery Network (CDN). our managed hosting services increase enterprise operating flexibility while eliminating the need for the specialized resources required to provision and manage equipment and applications or operate an enterprise-grade data center. intelligent IT Infrastructure solutions that enable our customers to focus on their core business.7627 | contactsales@internap. Only Internap combines the superior performance of our Managed Internet Route Optimizer™ – which leverages multiple network connections for performance – with the rock-solid reliability of our 100% network uptime guarantee.com [ 23 ] . Built on the foundation of Internap’s Performance IP.843.