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Posted by James Staten on August 5, 2009
Digital Realty Trust is trying to do to the data center business what Dell did to computer manufacturing and Wal-Mart continues to do to the retail market — make delivery efficiency the killer app. It claims it can build out a complete enterprise-class, energy-efficient data center in as little as 26 weeks (versus 16-24 months by its competitors) and for less than half the competitive cost.
Bringing velocity and low price to data center construction is certainly a new concept and one that could have revolutionary implications. This area of design and construction has been very specialized, with each project being unique and the magnitude of a single order in the $50 million range. DRT, a REIT focused purely on the data center market, has made a name for itself by building and operating data centers for corporate clients. As a REIT, DRT has held onto the facility, leasing it back to the client or using it as a collocation facility.
But this week it announced its POD Architecture Services through which it will build you the data center of your choice and you can own it at the end of the process.
How does DRT deliver against these dramatic claims? By borrowing from Henry Ford, Dell, and Wal-Mart and bringing the best of their concepts to this staid business:
Combine these tactics together, open up your market to all takers and you have a recipe for even more efficient data center delivery. DRT believes that through increased supply chain velocity it can drive data center build-times down to as little as 16 weeks and wring out potentially 20-30% greater cost savings. If so, others in the market will be hard pressed not to follow their lead.
And smart enterprises will be remiss not to invite DRT to bid on their next data center.
By James Staten
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