CoreSite: Data Centers, Colocation, Peering



	Q1’2010 - CoreSite Newsletter Welcome to CoreSite’s Q1’2010 newsletter. This issue contains content on the Los Angeles data center market, cloud forecasting for 2010, a breakdown of the broadband stimulus, and numerous CoreSite updates. Use the below links to navigate directly to the desired content. To view the newsletter on our website, please visit www.CoreSite.com/Newsletter_Q1_2010.php.

	Please Answer Our Q1’2010 Survey Question: Which of the following aspects of the data center industry most interest you? (A) Efficiency, (B) Peering and Interconnection, (C) Improvements to Reliability, (D) Where Data Centers are Being Built, (E) Security, or (F) Data Center Technology and Data Enhancements Please email your response by clicking here and entering your answer in the subject field. Thank you for taking the time to share your opinions. Results will be posted in the Q2’2010 newsletter.

	Data Center Market Analysis: Los Angeles, CA Rich Miller \| Editor, Datacenterknowledge.com The Differences Between Virtualization and Cloud Computing Barry X Lynn \| 3Tera, Inc Chairman & CEO Carrier Ethernet Services - Breaking Down One of Today’s Hottest Products Mark Fishburn \| CENX VP of Marketing Industry Insight: Carriers \| Broadband Stimulus - Can It Really Be Done for $7.2 Billion? Hunter Newby \| Allied Fiber CEO Data Center Energy Efficiency through Transparency and BCM David Dunn \| CoreSite SVP of Marketing and Business Development Jameson Agraz \| CoreSite VP - Bay Area Service Success Stories: International Networking Company Rates CoreSite as the Market Leader in Service Jeff Slusarz \| CoreSite Service Director CoreSite Peering Update Dominic Tobin \| CoreSite SVP of Operations Regional Roundup: A Coast to Coast Update Mark Jobson \| CoreSite Marketing Director

	Data Center Market Analysis: Los Angeles, CA Written By: Rich Miller \| Editor, Datacenterknowledge.com It’s no surprise that Los Angeles is a key hub for data center and telecom facilities. As the largest city on the West Coast and the entertainment capital of America, the city is home to a large number of businesses requiring data storage, hosting and content delivery. But the City of Angels also boasts a critical mass of connectivity and international Internet traffic, and a downtown cluster of telecom “carrier hotels” and data centers. The most wired of these buildings is One Wilshire, one of the best-known telecom buildings in the country. More than 60 percent of the 30-story property is occupied by communications companies including Verizon Communications, Savvis, Level 3, Global Crossing, Qwest Communications, Pac-West and CoreSite. The building was owned by The Carlyle Group for many years, but was sold to Hines REIT in 2007. CoreSite manages the 4th floor Meet-Me Room and operates more than 100,000 square feet of data center and colocation space at One Wilshire. The company also recently announced a 2 megawatt expansion of its Los Angeles data center at 900 N. Alameda. The greater Los Angeles market can be sorted into three major sub-markets. In addition to the buildings in downtown Los Angeles, there’s a cluster of data centers in El Segundo near LAX airport, and another in the southern suburb of Irvine. Let’s look at the key business trends driving demand in the Los Angeles data centers market. Growth in the Asia/Pacific Region: Los Angeles is a key gateway for Internet and telecom traffic to Asia due to the proximity of the cable landing in nearby Grover Beach, Calif., where the major trans-Pacific undersea communications cables come ashore. Internet use in Asia is growing at a faster rate than in Europe or North America, as recently noted by Google chief Internet evangelist and Internet pioneer Vint Cerf. “The Asian population will be the dominant user population of the Internet,” Cerf says. “There’s no doubt about that.” That means future growth in traffic between the U.S. and the Asia/Pacific region, which reinforces the value of proximity to the trans-Pacific cable landings. Changes in Media Consumption: The ability to deliver digital media over the Internet is transforming the entertainment business, providing consumers with the ability to watch TV and movies when and where they like, and on a growing array of devices. This will be disruptive to the entertainment business, but good for the data center business. This transition will drive demand for digital storage and delivery of media content, especially for the Hollywood TV and movie companies. Given Apple’s track record in accelerating the digital shift in the music industry, the recent introduction of the video-friendly iPad has the feel of a watershed moment in this transition. It remains to be seen whether the iPad will live up to the massive hype surrounding its debut. But make no mistake: Apple’s product launch is serving as a catharsis for its rivals and content providers. In the shift to digital media delivery, the era of fence-sitting and sorting out business models is over. Web Hosting and Cloud Computing: While San Francisco and Silicon Valley may have a higher concentration of Internet companies, Los Angeles is home to a number of fast-growing providers in mass-market web hosting, including Media Temple, DreamHost and Net2EZ. DreamHost recently took an equity position in LA data center provider Alchemy Communications, while Net2EZ leased a large chunk of space at the Garland Building (1200 W. Seventh) in early 2009. While government data center requirements are boosting the northern Virginia market, the picture is different in Los Angeles, where the city recently announced plans to outsource its e-mail system to Google Apps (via CSC). Then there’s the oft-delayed project to build a new high-tech data center for Los Angeles County, which has been expanded to include additional departments and a construction cost of $110 million. In early 2008 the project was being held up because the property at the Rancho Los Amigos South Campus in Downey was occupied – by 150 wild cats. After a protracted dispute with an animal rights group, the County arranged to have the cats relocated by the national Stray Cat Alliance, and in January the County Board of Supervisors approved plans to move ahead with the facility, which is scheduled for completion in 2014. Rich Miller is the President and Editor of Data Center Knowledge, a leading source of daily news and analysis about the data center industry. DCK offers a daily email update with the latest industry news.

	The Differences Between Virtualization and Cloud Computing Written By: Barry X Lynn \| 3Tera, Inc Chairman & CEO Do you know the difference between a hammer and carpentry? People often ask me, “What’s the difference between virtualization and the Cloud?” It’s like asking the difference between a hammer and carpentry. The latter is a comprehensive craft, while the former is one of many tools used by craftsmen who practice it. Simple, right? Unfortunately that question occurs far too often to stop thinking about it. There seem to be two reasons why people ask the question, one right and one not so right. The not so right reason is that there are people behind the Cloud curve who would like us to think that virtualization and the Cloud are similar because they have embraced virtualization technology and do not want to appear out of step. Consequently, there is a ton of noise in the market that is very hard to sort through. The right reason to ask the question is that most of today’s virtualization vendors are also introducing Cloud offerings. So, people are correctly are associating the two (just like someone would rightfully associate hammers and carpentry). The difference, however, is that no one thinks that hammers and carpentry are the same thing. How do I suggest one sort through this virtualization and Cloud noise? When faced with a potential Cloud solution, ask yourself some of the following questions. Does the technology help me to provision and deploy virtual machines on demand? If the answer is no, I’d ask why are you even looking at the Cloud. If the answer is yes, simply deploying virtual machines (“VMs”) on demand does not a Cloud make, as Shakespeare or Yoda might say. Does the technology enable the encapsulation and on demand deployment of multiple VMs as a single entity? If instead of managing VMs, you want to manage frequently used “appliances” that are comprised of multiple VMs (e.g. a specific app server, a specific messaging system and a specific database server), then you are on your way to a real Cloud solution. Does the technology enable the encapsulation and on demand deployment of whole software stacks (e.g. LAMP, Ruby on Rails, .NET, etc.)? If the answer is yes, you are certainly in the Cloud. Does it enable encapsulation and on demand deployment of entire multi-tiered apps? If yes, you have a very powerful Cloud solution. Does it enable the encapsulation of the apps along with everything they need to run – network, storage, infrastructure, configurations, policies, documentation, etc., etc., etc.? If yes, then you have the most complete Cloud solution. So, you might sense a theme here – Encapsulation. Yes. Encapsulation is the key, but it is only half of the story. Encapsulation results in many benefits, especially operational cost savings and faster time to market. But encapsulation alone does not make a Cloud. It lacks portability. Encapsulation itself does not create the ability to deploy anywhere, anytime. To deploy anywhere, anytime, you need Abstraction. Not only do the most comprehensive Cloud solutions have to provide unlimited granularity of encapsulation, but they must completely abstract what is encapsulated from the physical resources (machines) they run on, so that they can run anytime, anywhere there are available, idle resources. In short, you do not measure a Cloud solution simply by how it does virtualization. You measure it by the granularity of its encapsulation capabilities and its ability to abstract VMs, stacks, apps/services and entire data centers from the physical resources they run on. What is the future of virtualization and where is it going in 2010? Virtualization is going the way of the hammer. It will be a necessary commodity for the Cloud, just like the hammer is a necessary commodity for the carpenter. Now, before all the virtualization vendors get their shorts in a knot and start screaming at me that I am implying that all virtualization is the same, I am not. I acknowledge that some have features others do not, some outperform others, etc., but, can you tell who the best carpenter is only by knowing what brand of hammer he uses? And as virtualization becomes a commodity, it will require massive volume to be profitable. Cloud computing will be the technology that enables massive volume. Finally, what is the future of Cloud Computing and where is it going in 2010? Cloud Computing represents the future of IT and the next generation data center. We already see more and more service providers offering the Cloud. This trend will grow quickly throughout 2010. For many IT executives the light bulb will go on and the same question will start popping up – “Hey - I’m in the financial services business. Hey, I’m in the healthcare business. Hey, I’m in the manufacturing business. Why the heck am I managing servers?” Enterprises will start to quickly implement private and hybrid Clouds. 2010 will be the year that the best cloud platforms will be accepted and tested as successful enablers of mission-critical enterprise applications in need of high availability, dependable SLAs and world class disaster recovery. Barry X Lynn is a Chairman and CEO of 3Tera, Inc., leading provider of the award winning, turn-key cloud computing platform AppLogic that enables service providers and data center operators to offer cloud computing services. Barry has 35+ years IT experience as an entrepreneur, investor and Fortune 100 CIO. For comments He can be reached at bxl-at-3tera-dot-com. Read his full biography here.

	Carrier Ethernet Services - Breaking Down One of Today’s Hottest Products Mark Fishburn \| CENX VP of Marketing Those already familiar with the rapid growth of Carrier Ethernet ($0 to $17bn in 5 years, the fastest growing sector in 2009’s down market and heading for a predicted $40bn market by 2013) will be well aware that these new Carrier Ethernet services will likely profoundly affect the approach customers at data center companies like CoreSite take to networking over the next several years. The Metro Ethernet Forum (“MEF”) was founded in 2001 by CENX president, Nan Chen. It has been the industry body that has defined the standards and certification. Since then, over 160 of the world’s most prestigious carriers, MSOs and equipment manufacturers have worked on Carrier Ethernet’s development and deployment. This article gives an industry view on the state-of-the-art of Carrier Ethernet from those involved day-to-day in the technical and market developments around the world. First and foremost, for those not familiar with Carrier Ethernet, it’s definitely not your father’s Ethernet! The MEF has defined Carrier Ethernet as: "A ubiquitous, standardized, carrier-class service and network defined by five attributes that distinguish it from familiar LAN based Ethernet: standardized services, scalability, reliability, service management, and quality of service. Carrier Ethernet enables a rich set of virtual connection types, classes of service, bandwidth profiles and service characteristics suited for differentiated services, across all manners of metro and access networks. For additional information, please visit www.metroethernetforum.org. Now back to the breakdown. To enterprise users, Carrier Ethernet appears as a ubiquitous, consistent service, reaching locations serviced by high speed metro Ethernet fiber, DSL, cable and Ethernet access services, wireless and even over traditional E1/T1 lines. It is being adopted worldwide as the underlying service transport for IP, MPLS and recently, mobile backhaul. It brings the cost model of Ethernet to the wide area network together with ubiquity and scalability. Its characteristics make it ideal for, site-to-site access, data center & server consolidation, disaster recovery, service orientated architecture, Internet access, converged networking, virtualization and cloud computing, image intensive applications, video, VoIP, etc. The service is delivered as point-to-point (E-Line) or multi-point (E-LAN) over dedicated or virtual connections. It’s consistent, standardized and available worldwide in bandwidths from 1mbps to 10Gb and beyond. It has specific profiles for variable bandwidth and QoS demands, making it ideal for data, voice and video. It brings the cost model of Ethernet to the wide area network together with ubiquity and scalability. Carrier Ethernet 2009-2013: Until now, the rapid expansion of Carrier Ethernet has largely taken place on islands of connectivity within individual service provider networks. Now Carrier Ethernet is entering a new and important phase: global interconnect, the interconnection of the world’s service providers to form global Carrier Ethernet service networks. This is a new strategy for the MEF, and CENX management has been instrumental in its definition and development. Attendees at recent industry conferences this year have seen how the complex work of integrating a vast range of differentiated services can be accomplished. In January 2010, the MEF’s first external network to network interface specification (ENNI) was ratified. In November 2009, CENX ushered in the era of Carrier Ethernet Global Interconnect when it opened the world’s first Carrier Ethernet Exchanges in CoreSite’s One Wilshire and 427 S. LaSalle data centers. For the first time, one physical connection gives access to all Carrier Ethernet providers (the easy part), brings service alignment & innovative management (the hard part), streamlines and automates the business processes of Carrier Ethernet service interconnection (the slow and painful part!). If you are a service provider looking to connect, buy or sell Ethernet services with other service providers, or just want help entering the new world of Carrier Ethernet services, then contact us – we can help. +1 877.504.CENX or info@cenx.com. We look forward to meeting you. Mark Fishburn is vice president of marketing at CENX and regular contributor to the Metro Ethernet Forum. Please view Mr. Fishburn’s full biography here.

	Industry Insights: Carriers \| Broadband Stimulus - Can It Really Be Done for $7.2 Billion? Hunter Newby \| Allied Fiber CEO The first round of the Broadband Stimulus portion of the ARRA is scheduled to be awarded by February 16th. Over the next week or so, more than 1,400 applicants will receive notice that they will not be getting awards of either grants, or loans out of the approximately $4.2 billion being allocated from the full $7.2 billion. Thus far several last-mile and middle-mile projects have been awarded funds, but yet there is still no real, clear plan as to how this Nation will address the issue of high-speed broadband access for all. It is a wonder how the $7.2 billion figure was calculated since it was not based on a network plan of any type that would actually address and resolve the problem. Aside from the very apparent issues at the root and with the process we can all be encouraged that the Federal government has at least openly stated that there is in fact a problem with broadband in the country. It is abundantly clear that many other nations around the world acknowledge the critical importance of broadband for their economies, health care, education and overall standard of living as there are already numerous National Fiber Plans and National Broadband Plans underway. Most other countries have an advantage over the USA, though, in that they are much smaller and then therefore it costs much less time and capital to solve the issue. Our biggest problem in solving the issue aside from the federal government itself is our geography. In order to solve access to broadband we must first solve physical proximity to open, neutral fiber that can take rural networks from the middle of nowhere and bring them to the middle of everything - in a network sense. The major carrier hotels and data centers in the USA are now established. We have spent the last 10 years identifying them and building them up. They are located where every major network already is - such as One Wilshire in Los Angeles. In order to solve the problem we need to either bring the rural networks to those interconnection points, or bring the points out to them. Either way, the A and the Z are easily identifiable on a map. From that, a network map consisting of fiber and microwave wireless transport can be built, and from that the basis of costs to extend one to the other (either way, or both) can be built. That is the beginning of a real plan. It will probably cost more than $7.2 billion to get it all done, but it can get done. Then hopefully we can catch up to the rest of the world that already built this very same design and are enjoying the benefits of national broadband. Hunter Newby is CEO of Allied Fiber and one of the most trusted thought leaders in the world of data centers and interconnection. We encourage you to learn more about Allied Fiber or visit Mr. Newby’s bio page.

	Data Center Energy Efficiency through Transparency and BCM David Dunn \| CoreSite SVP of Marketing and Business Development Jameson Agraz \| CoreSite VP - Bay Area It happens each month to everyone who owns a home. Within the pile of invoices, letters, coupons and credit card offers that arrive in the mailbox, you find a utility bill that details the amount of electricity you consumed the previous month and the price for that electricity. You might very likely look at the bill and make a resolution to reduce your power consumption to save cash, while simultaneously reducing your carbon footprint. A noble initiative indeed! What if your bill not only excluded the amount of power consumed, but showed the same amount owed, month after month, regardless of use? Would you run your furnace or air conditioner less? Would you turn your computer off when not in use, unplug unused appliances, or buy more expensive energy-efficient lights? Probably not, because without information there would be no incentive to consume less. Now project this situation into the billing cycles of large companies. Just as with a family home, when a company’s energy usage is not transparent and the amount of money paid each month is the same no matter what is used, millions of dollars and millions of kilowatt-hours are wasted. The problem is the same, but there is a difference of several meaningful decimal places between a residential utility bill and a major company’s data center utility bill. Believe it or not, this nightmare billing scenario happens to companies of all sizes at many of today’s colocation facilities. It’s even worse for in-house data centers, where you might not even see, let alone be responsible for, your data center utility bill. How did the colocation industry come to bill power so nebulously? Lack of Individual Usage Information: The cardinal rule to keep in mind when managing a data center is that power (for both IT and mechanical loads) is a finite resource. You have to restrict usage to the amount of available power. Colocation providers have understood this since the inception of the industry, and that’s why they design electrical and mechanical distribution systems around the total amount of power available (the minimum amount of power available from the utility company or the level of a generator’s capacity). Historically, colocation providers simply have not had a means to monitor each customer’s individual power usage to help them stay within the capacity of the power sources. They couldn’t provide customers with a summary of their electrical usage, let alone provide an incentive to reduce electrical consumption. Because they could not tell exactly how much power each customer was using, colocation providers developed pricing models that resulted in fixed power fees based on provisioned power instead of usage. A fixed price for power per breakered-amp was largely set at a level designed to cover the direct utility cost for the circuit’s power draw, plus the electricity required to cool the heat produced by the IT equipment. Because colocation providers lacked information and wanted to be sure to cover their costs, they set the breakered-amp price at an approximate level that assumed each customer would fully utilize each power circuit. Companies ended up paying for power they didn’t use, and at no point did they understand how much power they were actually consuming. It’s not that colocation customers haven’t wanted to save money or consume less power. They have always sought ways to get the most mileage from technical deployments. Data center power bills can be upwards of 30%-50% of total deployment cost, so power is an obvious target for cost-cutting initiatives. BCM Provides New Costing Model: With economic events intensifying the need for a change in the way power is billed, branch circuit monitoring (BCM), the newest technology for measuring data center power, is becoming a benchmark to help both customers and colocation providers face some of their biggest power monitoring challenges. In its simplest form, BCM is a way to track actual usage of each power circuit, whether in a home, office or data center. Technically speaking, BCM is a system that uses current transformers (CTs) to measure the electrical current of each power circuit within an electrical panel or PDU. The BCM equipment used today has been engineered to integrate seamlessly with a wide variety of turnkey hardware and software packages used for gathering and storing circuit data. Alternatively, using open standards, it is possible to gather and store the data from a BCM circuit board using custom software and hardware. In either case, once the readings have been gathered and stored, they can be analyzed, ported, retrieved or transferred as easily as any other piece of data. BCM originally was implemented as an easy way to see electrical usage on each panel at a glance. Engineers and operators could know when physically looking at electrical panels if there were any circuits in danger of tripping or if there were any tripped breakers (indicated by zero current). As the technology progressed, BCM was used to trigger simple alarms for local or remote personnel charged with monitoring the health of the electrical distribution system, which resulted in higher facility uptime. Though these uptime-maximizing functions of BCM have become more robust in recent years and are one of the most important features of the technology, BCM also has opened new doors for customer-facing transparency. Perhaps the most profound application of the modern BCM system within the colocation facility is the ability to measure the actual usage of each power circuit as a means of calculating power fees. Now, not only can a colocation provider offer insight into actual usage, but the provider can help customers save money by identifying opportunities to reduce consumption. To accurately accomplish this, a BCM system must have a few key elements in place. The first requirement is a location to record and store the data supplied by the CTs within the electrical panel. As it stands today, relational databases such as SQL are used commonly as the preferred storage method for the CT measurements. A second reference table or database that defines each circuit is also required. This element of the BCM system must define the panel/PDU, circuit voltage, breaker positions within the panel (for 208V or 3-phase power), and the appropriate circuit user (the customer). The CT’s historical data and reference table makes it possible to generate a usage trend of each circuit, along with the ability to reference that circuit back to a specific customer. If a colocation provider can summarize power consumption in customer bills or through an online portal, customers can see usage trends and reap the benefits of energy conservation through virtualization, smart power management, or simply by identifying and shutting off underutilized servers. Different departments within a single data center deployment could also verify individual power usage for more accurate cost accounting. Though usage-based power pricing is primarily a boon to colocation customers, the BCM system also offers a number of meaningful benefits to colocation providers. As we all have witnessed in the past several years, energy prices are anything but stable, and the fees from a utility company often reflect this volatility. Employing a usage-based pricing model allows colocation providers to immediately pass along any cost changes directly to customers nearly real time without the need to manually notify customers and adjust billing, often the case in fixed pricing scenarios. Usage trending is another benefit BCM systems offer to colocation providers. A database of circuit data allows for the analysis of trends on circuit, panel or UPS usage to help predict future demand. Depending on the level of detail maintained in the reference database, it also might be possible to analyze power based on equipment type, market segment, geography and more. Time for a Change: In the past, fixed power pricing made logical operational and business sense. Without the ability to measure and collect data on individual circuit use, it was impossible to see actual use below the UPS units (electronics on UPS units show usage). Fixed pricing still makes sense where BCM technology is not installed or for small customers. For smaller deployments, the cost of monitoring and billing relatively low power draws exceeds the benefits of transparency. On the other hand, for very large data users, monitoring consumption at the electrical panel or UPS level may make more operational or fiscal sense. The impact of the change from fixed to usage-based power pricing varies greatly from customer to customer, depending on their unique usage profile. At the very least, access to data on actual power usage can lead to benchmarking and, hopefully, eventual reduction. If companies can reduce their bills through reduced usage, then they have an incentive to reduce power consumption, which is good for everybody. For some companies whose power consumption periodically varies (seasonal usage, holiday peaks, etc.), the benefits of usage-based power pricing can be even greater. These companies can reduce costs during non-peak periods compared to fixed pricing models. Other types of users that have low usage/high breakered-amp profiles, such as network operators, could also stand to benefit greatly. These customers are paying a relatively high fixed power price for little power use. Power is the primary resource in a data center, and its availability and emissions are a growing concern. As the effects of climate change gain more attention in the national media and result in potential government regulation and oversight (as in H.R.2454), knowing not only how much power you consume, but also the generation mix of consumed power (to specifically understand carbon usage) will become increasingly important, if not a requirement. Further, you can get ahead of the curve by setting targets for future reduction. Implementing BCM in your own data center or asking your colocation provider to implement BCM technology and usage-based power pricing, is one way your company can help reduce long-term carbon emissions and save money. David Dunn is senior vice president of marketing and business development at CoreSite. View Mr. Dunn’s full biography here.

	Service Success Stories: International Networking Company Rates CoreSite as the Market Leader in Service Jeff Slusarz \| CoreSite Service Director The Company ControlCircle is a London-based, high availability networking company providing enterprise services to financial, legal and several of the UK’s largest online businesses. Named 2008 Thames Gateway Business Growth Business of the Year, ControlCircle supports multiple offices, branches, disaster recovery sites and remote clients with secure data centers in London, Paris, Frankfurt, Berlin, Hong Kong, Amsterdam and the US, with Network Operation Centers (NOCs) in Ireland and London docklands, all manned by highly qualified technical staff 24x7x365. For more information, please visit www.ControlCircle.com. The Need ControlCircle needed sufficient space within Manhattan (NY) that offered diverse connectivity options and direct interconnection opportunities with major financial exchanges. The desired partner was a multi-regional U.S. data center provider with reliable data center space that would allow for future growth objectives. On the service side, ControlCircle was looking for a highly-responsive organization that understood their business and as a result could help to ensure corporate objectives were met. The desired partner was a multi-regional U.S. data center provider with reliable data center space that would allow for future growth objectives. On the service side, ControlCircle was looking for a highly-responsive organization who understood their business and as a result could help to ensure corporate objectives were met. The Decision As a result of ControlCircle’s due diligence process, CoreSite was identified as a data center provider that could meet all deployment requirements. Further research showed CoreSite’s building, 32 Avenue of the Americas, as one of New York City’s hubs for interconnection. CoreSite’s New York data center also offered direct connection to the NYSE’s SFTI network as well as numerous other global financial exchanges as well as available space across the United States in key sites which coincided with ControlCircle’s geographical interest. Upon engaging CoreSite’s local vice president, it was evident the company understood ControlCircle’s business. ControlCircle toured the data center and was pleased to see CoreSite had completely overhauled a former AT&T site, creating a state-of-the-art, turn-key data center. It quickly became clear that CoreSite was the perfect choice for ControlCircle’s New York data center deployment initiative. “CoreSite had the ability to offer us turn-key data center space in the most important locations throughout North America. Their vendor and carrier-neutral stance compliments our business model and allows us to strengthen our position within the U.S. enterprise market,” commented Nathan Milkins, New Business Sales North America, ControlCircle. The Results CoreSite’s New York data center has become an integral part of ControlCircle’s East Coast U.S. footprint, with the 32 Avenue of the Americas Meet-Me Room acting as an interconnection hub. A favorite of ControlCircle’s Network Operations Center (NOC) team members is MyCoreSite, the “innovative” online customer management portal provided free of charge to every CoreSite customer. MyCoreSite allows ControlCircle to order services, analyze data and take appropriate operations actions - quickly and efficiently - creating a seamless integration with NOC engineers based in London, UK. “We found the CoreSite team to be helpful, interested in our business and eager to help us,” commented Ian Finlay, Chief Technology Officer at Control Circle. “Indeed the time taken from signing the paperwork to go-live was under two weeks which, exceeded our original expectations of a four to five week lead time. A true test of any provider only ever happens when issues arise. CoreSite’s response and professionalism consistently exceed our expectations and that of our customers.” ControlCircle also commented that working with CoreSite has greatly added to the success of their U.S. presence, stating CoreSite’s “outstanding,” 24x7x365 customer service has more than proven itself to be a leader in the market. The future is bright for the ControlCircle-CoreSite relationship. ControlCircle has commented that CoreSite has data centers in numerous U.S. markets that are attractive both on a corporate and client level, hinting at a strong likelihood of cross-brand expansion. Mr. Milkins stated, “We have taken advantage of their technology and competitive pricing and can envision growing our North American business through CoreSite infrastructure.” ControlCircle Info ControlCircle is headquartered in London, England - with offices in New York located at 40 Wall Street, 28th Floor \| New York, NY, 10005 USA. T: +1 (646) 512 5832 F: +1 (646) 512 5834 E: us.sales@controlcircle.com More information on ControlCircle can be found at www.controlcircle.com. Jeff Slusarz is service director at CoreSite.

	CoreSite Peering Update Dominic Tobin \| CoreSite VP of Operations CoreSite’s Any2 Northeast Internet Exchange CoreSite’s Any2 Internet exchange continues to grow, expanding to new markets across the United States. Any2 Northeast now connects CoreSite’s New York, Northern Virginia and Washington, DC data centers. CoreSite is pleased to announce the planned extension to Boston by the end of March 2010! The extension to Boston means that Any2 Northeast participants have the opportunity to negotiate peering (public or private) relationships and interconnection among more than 100 unique customers. Those companies interested in a charter membership on Any2 Northeast should contact Sales@CoreSite.com. Participation Currently, CoreSite’s Any2 California continues to be one of the largest distributed peering exchange points in the world with 191 participants. Most Any2 participants are listed publicly on the CoreSite website, including their IPv4 and IPv6 IP addresses and their respective CoreSite data center location. The list includes the world’s largest CDNs, enterprises, Web 2.0 companies, hosting/cloud companies, and domestic/international carriers. CoreSite’s Any2 California also has a diverse selection of Asian carriers, making it the West Coast’s most compelling peering point (public or private). New/Recently Upgraded Peering Participants Thank you to our newest members or members who have recently upgraded their ports: + Merit Network + Steadfast Networks + True Records + ICANN + Citylink Fiber Holdings + New Dream Networks + Cavalier Telephone + Linkline Communications + Digital Voice Solutions + Axcelx Technologies + DENIC eG + Liveworld Traffic Traffic levels on CoreSite’s Any2 Internet exchange have increased steadily since 2007. Real-time performance data can be viewed on our Any2 stats page at any time, with charts for the past 48 (eliminate hyphen) hours, past 30 days, and since 2007. As of January 2010, Any2’s traffic was as follows: + Past 30 Days + Peak: 155 GBPS \| 1/10/10 + Average: 76 GBPS For frequently updated information/posts regarding Any2, we encourage you to join CoreSite’s Any2 blog via the Any2 RSS feed. Dominic Tobin is senior vice president of data centers at CoreSite. View Mr. Tobin’s full biography here.

	Regional Roundup: A Coast to Coast Update Mark Jobson \| CoreSite Marketing Director Bay Area Construction continues on CoreSite’s newest data center campus at 2901 Coronado in Santa Clara, California. Phase I of the project is scheduled to open by the end of Q1’2010. 2901 will be the third CoreSite data center in the Bay Area, joining 55 S. Market in downtown San Jose and 1656 McCarthy in Milpitas. The new data center will deliver 5.3 critical megawatts of power and both CoreSite private data center suites and cage-to-cabinet colocation will be available. Boston CoreSite’s Boston data center at 70 Innerbelt Road in Somerville, MA will be expanding in early Q2’2010. Included in the project are 12,000 SF of new raised floor space and security upgrades such as additional mantraps, biometric scanners and cameras, and gated parking with perimeter fencing. In addition to the data center expansion, CoreSite will be extending its Any2 Northeast Internet exchange to Boston by the end of March. This will provide customers with access to any network present at the company’s New York, Northern Virginia, and Washington, DC data centers. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Boston. Chicago CoreSite delivered an additional 2 megawatts/20,000 SF of raised floor data center space on the third floor of its Chicago data center in Q3’2010. We are also proud to announce the addition of MERIT Networks to Any2 in Chicago. Existing customers of the data center include major financial exchanges and financial services companies, cloud companies, and Tier 1 carriers. Los Angeles We have numerous expansions and upgrade projects underway. Construction is on-schedule to deliver 2 megawatts of additional space and power at our 900 N. Alameda data center in Q2’2010. The "World’s Most Connected Room," otherwise known as One Wilshire’s; 4th Floor Meet-Me Room, will be upgraded throughout 2010 with additional UPS power and cooling, and security upgrades. CoreSite’s new Operations Support Center (“OSC”) is now complete and 100% operational at 900 N. Alameda. This will function as a virtual NOC and help improve customer service and uptime. CoreSite’s Any2 California continues to grow in membership, with nearly 200 networks passing traffic as of January 2010. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Los Angeles, CA. Miami CoreSite’s Miami data center offers connectivity to more than 200 carriers via onsite providers and dark fiber connectivity to other local data centers. The data center is rated to withstand Category 5 hurricane winds and its location is at one of the highest points in Miami, an ideal for flood prevention. Florida Power & Light (FPL) delivers multiple electrical feeds from diverse grids to CoreSite’s on-site power vault, providing customers with the ability to deploy in a full 2N mechanical and electrical configuration. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Miami, FL. New York Since its grand opening in 2008, CoreSite’s New York data center has shown strong leasing activity from a diverse set of customers. The ability to connect with major financial exchanges and scores of carriers make our New York data center an attractive location for financial firms and content companies. CoreSite’s New York data center offers some of the lowest latencies to the financial exchanges. CoreSite currently offers cage-to-cabinet colocation only in New York, NY. Northern Virginia/Washington, DC An additional 6 megawatts of power (and associated space) were recently delivered to CoreSite’s Northern Virginia data center at 12100 Sunrise Valley Drive. Demand continues to outpace supply in the region. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Northern Virginia. CoreSite also recently expanded its 1275 K Street data center by another 20 cabinets to accommodate further network provider growth. If you would like to schedule a private tour of any CoreSite data center or join our event invitation list, please click here to email your information. Mark Jobson is marketing director at CoreSite. Thank you for taking the time to read through our newsletter! To view online, please visit www.CoreSite.com/Newsletter_Q1_2010.php. Our goal is to produce a quarterly version of this document and we welcome your feedback for future improvements. To offer your comments, please visit www.CoreSite.com/Feedback.php. CoreSite Headquarters 1050 17th Street, Suite 800 Denver, CO 80265



	Q1’2010 - CoreSite Newsletter Welcome to CoreSite’s Q1’2010 newsletter. This issue contains content on the Los Angeles data center market, cloud forecasting for 2010, a breakdown of the broadband stimulus, and numerous CoreSite updates. Use the below links to navigate directly to the desired content. To view the newsletter on our website, please visit www.CoreSite.com/Newsletter_Q1_2010.php.

	Please Answer Our Q1’2010 Survey Question: Which of the following aspects of the data center industry most interest you? (A) Efficiency, (B) Peering and Interconnection, (C) Improvements to Reliability, (D) Where Data Centers are Being Built, (E) Security, or (F) Data Center Technology and Data Enhancements Please email your response by clicking here and entering your answer in the subject field. Thank you for taking the time to share your opinions. Results will be posted in the Q2’2010 newsletter.

	Data Center Market Analysis: Los Angeles, CA Rich Miller \| Editor, Datacenterknowledge.com The Differences Between Virtualization and Cloud Computing Barry X Lynn \| 3Tera, Inc Chairman & CEO Carrier Ethernet Services - Breaking Down One of Today’s Hottest Products Mark Fishburn \| CENX VP of Marketing Industry Insight: Carriers \| Broadband Stimulus - Can It Really Be Done for $7.2 Billion? Hunter Newby \| Allied Fiber CEO Data Center Energy Efficiency through Transparency and BCM David Dunn \| CoreSite SVP of Marketing and Business Development Jameson Agraz \| CoreSite VP - Bay Area Service Success Stories: International Networking Company Rates CoreSite as the Market Leader in Service Jeff Slusarz \| CoreSite Service Director CoreSite Peering Update Dominic Tobin \| CoreSite SVP of Operations Regional Roundup: A Coast to Coast Update Mark Jobson \| CoreSite Marketing Director

	Data Center Market Analysis: Los Angeles, CA Written By: Rich Miller \| Editor, Datacenterknowledge.com It’s no surprise that Los Angeles is a key hub for data center and telecom facilities. As the largest city on the West Coast and the entertainment capital of America, the city is home to a large number of businesses requiring data storage, hosting and content delivery. But the City of Angels also boasts a critical mass of connectivity and international Internet traffic, and a downtown cluster of telecom “carrier hotels” and data centers. The most wired of these buildings is One Wilshire, one of the best-known telecom buildings in the country. More than 60 percent of the 30-story property is occupied by communications companies including Verizon Communications, Savvis, Level 3, Global Crossing, Qwest Communications, Pac-West and CoreSite. The building was owned by The Carlyle Group for many years, but was sold to Hines REIT in 2007. CoreSite manages the 4th floor Meet-Me Room and operates more than 100,000 square feet of data center and colocation space at One Wilshire. The company also recently announced a 2 megawatt expansion of its Los Angeles data center at 900 N. Alameda. The greater Los Angeles market can be sorted into three major sub-markets. In addition to the buildings in downtown Los Angeles, there’s a cluster of data centers in El Segundo near LAX airport, and another in the southern suburb of Irvine. Let’s look at the key business trends driving demand in the Los Angeles data centers market. Growth in the Asia/Pacific Region: Los Angeles is a key gateway for Internet and telecom traffic to Asia due to the proximity of the cable landing in nearby Grover Beach, Calif., where the major trans-Pacific undersea communications cables come ashore. Internet use in Asia is growing at a faster rate than in Europe or North America, as recently noted by Google chief Internet evangelist and Internet pioneer Vint Cerf. “The Asian population will be the dominant user population of the Internet,” Cerf says. “There’s no doubt about that.” That means future growth in traffic between the U.S. and the Asia/Pacific region, which reinforces the value of proximity to the trans-Pacific cable landings. Changes in Media Consumption: The ability to deliver digital media over the Internet is transforming the entertainment business, providing consumers with the ability to watch TV and movies when and where they like, and on a growing array of devices. This will be disruptive to the entertainment business, but good for the data center business. This transition will drive demand for digital storage and delivery of media content, especially for the Hollywood TV and movie companies. Given Apple’s track record in accelerating the digital shift in the music industry, the recent introduction of the video-friendly iPad has the feel of a watershed moment in this transition. It remains to be seen whether the iPad will live up to the massive hype surrounding its debut. But make no mistake: Apple’s product launch is serving as a catharsis for its rivals and content providers. In the shift to digital media delivery, the era of fence-sitting and sorting out business models is over. Web Hosting and Cloud Computing: While San Francisco and Silicon Valley may have a higher concentration of Internet companies, Los Angeles is home to a number of fast-growing providers in mass-market web hosting, including Media Temple, DreamHost and Net2EZ. DreamHost recently took an equity position in LA data center provider Alchemy Communications, while Net2EZ leased a large chunk of space at the Garland Building (1200 W. Seventh) in early 2009. While government data center requirements are boosting the northern Virginia market, the picture is different in Los Angeles, where the city recently announced plans to outsource its e-mail system to Google Apps (via CSC). Then there’s the oft-delayed project to build a new high-tech data center for Los Angeles County, which has been expanded to include additional departments and a construction cost of $110 million. In early 2008 the project was being held up because the property at the Rancho Los Amigos South Campus in Downey was occupied – by 150 wild cats. After a protracted dispute with an animal rights group, the County arranged to have the cats relocated by the national Stray Cat Alliance, and in January the County Board of Supervisors approved plans to move ahead with the facility, which is scheduled for completion in 2014. Rich Miller is the President and Editor of Data Center Knowledge, a leading source of daily news and analysis about the data center industry. DCK offers a daily email update with the latest industry news.

	The Differences Between Virtualization and Cloud Computing Written By: Barry X Lynn \| 3Tera, Inc Chairman & CEO Do you know the difference between a hammer and carpentry? People often ask me, “What’s the difference between virtualization and the Cloud?” It’s like asking the difference between a hammer and carpentry. The latter is a comprehensive craft, while the former is one of many tools used by craftsmen who practice it. Simple, right? Unfortunately that question occurs far too often to stop thinking about it. There seem to be two reasons why people ask the question, one right and one not so right. The not so right reason is that there are people behind the Cloud curve who would like us to think that virtualization and the Cloud are similar because they have embraced virtualization technology and do not want to appear out of step. Consequently, there is a ton of noise in the market that is very hard to sort through. The right reason to ask the question is that most of today’s virtualization vendors are also introducing Cloud offerings. So, people are correctly are associating the two (just like someone would rightfully associate hammers and carpentry). The difference, however, is that no one thinks that hammers and carpentry are the same thing. How do I suggest one sort through this virtualization and Cloud noise? When faced with a potential Cloud solution, ask yourself some of the following questions. Does the technology help me to provision and deploy virtual machines on demand? If the answer is no, I’d ask why are you even looking at the Cloud. If the answer is yes, simply deploying virtual machines (“VMs”) on demand does not a Cloud make, as Shakespeare or Yoda might say. Does the technology enable the encapsulation and on demand deployment of multiple VMs as a single entity? If instead of managing VMs, you want to manage frequently used “appliances” that are comprised of multiple VMs (e.g. a specific app server, a specific messaging system and a specific database server), then you are on your way to a real Cloud solution. Does the technology enable the encapsulation and on demand deployment of whole software stacks (e.g. LAMP, Ruby on Rails, .NET, etc.)? If the answer is yes, you are certainly in the Cloud. Does it enable encapsulation and on demand deployment of entire multi-tiered apps? If yes, you have a very powerful Cloud solution. Does it enable the encapsulation of the apps along with everything they need to run – network, storage, infrastructure, configurations, policies, documentation, etc., etc., etc.? If yes, then you have the most complete Cloud solution. So, you might sense a theme here – Encapsulation. Yes. Encapsulation is the key, but it is only half of the story. Encapsulation results in many benefits, especially operational cost savings and faster time to market. But encapsulation alone does not make a Cloud. It lacks portability. Encapsulation itself does not create the ability to deploy anywhere, anytime. To deploy anywhere, anytime, you need Abstraction. Not only do the most comprehensive Cloud solutions have to provide unlimited granularity of encapsulation, but they must completely abstract what is encapsulated from the physical resources (machines) they run on, so that they can run anytime, anywhere there are available, idle resources. In short, you do not measure a Cloud solution simply by how it does virtualization. You measure it by the granularity of its encapsulation capabilities and its ability to abstract VMs, stacks, apps/services and entire data centers from the physical resources they run on. What is the future of virtualization and where is it going in 2010? Virtualization is going the way of the hammer. It will be a necessary commodity for the Cloud, just like the hammer is a necessary commodity for the carpenter. Now, before all the virtualization vendors get their shorts in a knot and start screaming at me that I am implying that all virtualization is the same, I am not. I acknowledge that some have features others do not, some outperform others, etc., but, can you tell who the best carpenter is only by knowing what brand of hammer he uses? And as virtualization becomes a commodity, it will require massive volume to be profitable. Cloud computing will be the technology that enables massive volume. Finally, what is the future of Cloud Computing and where is it going in 2010? Cloud Computing represents the future of IT and the next generation data center. We already see more and more service providers offering the Cloud. This trend will grow quickly throughout 2010. For many IT executives the light bulb will go on and the same question will start popping up – “Hey - I’m in the financial services business. Hey, I’m in the healthcare business. Hey, I’m in the manufacturing business. Why the heck am I managing servers?” Enterprises will start to quickly implement private and hybrid Clouds. 2010 will be the year that the best cloud platforms will be accepted and tested as successful enablers of mission-critical enterprise applications in need of high availability, dependable SLAs and world class disaster recovery. Barry X Lynn is a Chairman and CEO of 3Tera, Inc., leading provider of the award winning, turn-key cloud computing platform AppLogic that enables service providers and data center operators to offer cloud computing services. Barry has 35+ years IT experience as an entrepreneur, investor and Fortune 100 CIO. For comments He can be reached at bxl-at-3tera-dot-com. Read his full biography here.

	Carrier Ethernet Services - Breaking Down One of Today’s Hottest Products Mark Fishburn \| CENX VP of Marketing Those already familiar with the rapid growth of Carrier Ethernet ($0 to $17bn in 5 years, the fastest growing sector in 2009’s down market and heading for a predicted $40bn market by 2013) will be well aware that these new Carrier Ethernet services will likely profoundly affect the approach customers at data center companies like CoreSite take to networking over the next several years. The Metro Ethernet Forum (“MEF”) was founded in 2001 by CENX president, Nan Chen. It has been the industry body that has defined the standards and certification. Since then, over 160 of the world’s most prestigious carriers, MSOs and equipment manufacturers have worked on Carrier Ethernet’s development and deployment. This article gives an industry view on the state-of-the-art of Carrier Ethernet from those involved day-to-day in the technical and market developments around the world. First and foremost, for those not familiar with Carrier Ethernet, it’s definitely not your father’s Ethernet! The MEF has defined Carrier Ethernet as: "A ubiquitous, standardized, carrier-class service and network defined by five attributes that distinguish it from familiar LAN based Ethernet: standardized services, scalability, reliability, service management, and quality of service. Carrier Ethernet enables a rich set of virtual connection types, classes of service, bandwidth profiles and service characteristics suited for differentiated services, across all manners of metro and access networks. For additional information, please visit www.metroethernetforum.org. Now back to the breakdown. To enterprise users, Carrier Ethernet appears as a ubiquitous, consistent service, reaching locations serviced by high speed metro Ethernet fiber, DSL, cable and Ethernet access services, wireless and even over traditional E1/T1 lines. It is being adopted worldwide as the underlying service transport for IP, MPLS and recently, mobile backhaul. It brings the cost model of Ethernet to the wide area network together with ubiquity and scalability. Its characteristics make it ideal for, site-to-site access, data center & server consolidation, disaster recovery, service orientated architecture, Internet access, converged networking, virtualization and cloud computing, image intensive applications, video, VoIP, etc. The service is delivered as point-to-point (E-Line) or multi-point (E-LAN) over dedicated or virtual connections. It’s consistent, standardized and available worldwide in bandwidths from 1mbps to 10Gb and beyond. It has specific profiles for variable bandwidth and QoS demands, making it ideal for data, voice and video. It brings the cost model of Ethernet to the wide area network together with ubiquity and scalability. Carrier Ethernet 2009-2013: Until now, the rapid expansion of Carrier Ethernet has largely taken place on islands of connectivity within individual service provider networks. Now Carrier Ethernet is entering a new and important phase: global interconnect, the interconnection of the world’s service providers to form global Carrier Ethernet service networks. This is a new strategy for the MEF, and CENX management has been instrumental in its definition and development. Attendees at recent industry conferences this year have seen how the complex work of integrating a vast range of differentiated services can be accomplished. In January 2010, the MEF’s first external network to network interface specification (ENNI) was ratified. In November 2009, CENX ushered in the era of Carrier Ethernet Global Interconnect when it opened the world’s first Carrier Ethernet Exchanges in CoreSite’s One Wilshire and 427 S. LaSalle data centers. For the first time, one physical connection gives access to all Carrier Ethernet providers (the easy part), brings service alignment & innovative management (the hard part), streamlines and automates the business processes of Carrier Ethernet service interconnection (the slow and painful part!). If you are a service provider looking to connect, buy or sell Ethernet services with other service providers, or just want help entering the new world of Carrier Ethernet services, then contact us – we can help. +1 877.504.CENX or info@cenx.com. We look forward to meeting you. Mark Fishburn is vice president of marketing at CENX and regular contributor to the Metro Ethernet Forum. Please view Mr. Fishburn’s full biography here.

	Industry Insights: Carriers \| Broadband Stimulus - Can It Really Be Done for $7.2 Billion? Hunter Newby \| Allied Fiber CEO The first round of the Broadband Stimulus portion of the ARRA is scheduled to be awarded by February 16th. Over the next week or so, more than 1,400 applicants will receive notice that they will not be getting awards of either grants, or loans out of the approximately $4.2 billion being allocated from the full $7.2 billion. Thus far several last-mile and middle-mile projects have been awarded funds, but yet there is still no real, clear plan as to how this Nation will address the issue of high-speed broadband access for all. It is a wonder how the $7.2 billion figure was calculated since it was not based on a network plan of any type that would actually address and resolve the problem. Aside from the very apparent issues at the root and with the process we can all be encouraged that the Federal government has at least openly stated that there is in fact a problem with broadband in the country. It is abundantly clear that many other nations around the world acknowledge the critical importance of broadband for their economies, health care, education and overall standard of living as there are already numerous National Fiber Plans and National Broadband Plans underway. Most other countries have an advantage over the USA, though, in that they are much smaller and then therefore it costs much less time and capital to solve the issue. Our biggest problem in solving the issue aside from the federal government itself is our geography. In order to solve access to broadband we must first solve physical proximity to open, neutral fiber that can take rural networks from the middle of nowhere and bring them to the middle of everything - in a network sense. The major carrier hotels and data centers in the USA are now established. We have spent the last 10 years identifying them and building them up. They are located where every major network already is - such as One Wilshire in Los Angeles. In order to solve the problem we need to either bring the rural networks to those interconnection points, or bring the points out to them. Either way, the A and the Z are easily identifiable on a map. From that, a network map consisting of fiber and microwave wireless transport can be built, and from that the basis of costs to extend one to the other (either way, or both) can be built. That is the beginning of a real plan. It will probably cost more than $7.2 billion to get it all done, but it can get done. Then hopefully we can catch up to the rest of the world that already built this very same design and are enjoying the benefits of national broadband. Hunter Newby is CEO of Allied Fiber and one of the most trusted thought leaders in the world of data centers and interconnection. We encourage you to learn more about Allied Fiber or visit Mr. Newby’s bio page.

	Data Center Energy Efficiency through Transparency and BCM David Dunn \| CoreSite SVP of Marketing and Business Development Jameson Agraz \| CoreSite VP - Bay Area It happens each month to everyone who owns a home. Within the pile of invoices, letters, coupons and credit card offers that arrive in the mailbox, you find a utility bill that details the amount of electricity you consumed the previous month and the price for that electricity. You might very likely look at the bill and make a resolution to reduce your power consumption to save cash, while simultaneously reducing your carbon footprint. A noble initiative indeed! What if your bill not only excluded the amount of power consumed, but showed the same amount owed, month after month, regardless of use? Would you run your furnace or air conditioner less? Would you turn your computer off when not in use, unplug unused appliances, or buy more expensive energy-efficient lights? Probably not, because without information there would be no incentive to consume less. Now project this situation into the billing cycles of large companies. Just as with a family home, when a company’s energy usage is not transparent and the amount of money paid each month is the same no matter what is used, millions of dollars and millions of kilowatt-hours are wasted. The problem is the same, but there is a difference of several meaningful decimal places between a residential utility bill and a major company’s data center utility bill. Believe it or not, this nightmare billing scenario happens to companies of all sizes at many of today’s colocation facilities. It’s even worse for in-house data centers, where you might not even see, let alone be responsible for, your data center utility bill. How did the colocation industry come to bill power so nebulously? Lack of Individual Usage Information: The cardinal rule to keep in mind when managing a data center is that power (for both IT and mechanical loads) is a finite resource. You have to restrict usage to the amount of available power. Colocation providers have understood this since the inception of the industry, and that’s why they design electrical and mechanical distribution systems around the total amount of power available (the minimum amount of power available from the utility company or the level of a generator’s capacity). Historically, colocation providers simply have not had a means to monitor each customer’s individual power usage to help them stay within the capacity of the power sources. They couldn’t provide customers with a summary of their electrical usage, let alone provide an incentive to reduce electrical consumption. Because they could not tell exactly how much power each customer was using, colocation providers developed pricing models that resulted in fixed power fees based on provisioned power instead of usage. A fixed price for power per breakered-amp was largely set at a level designed to cover the direct utility cost for the circuit’s power draw, plus the electricity required to cool the heat produced by the IT equipment. Because colocation providers lacked information and wanted to be sure to cover their costs, they set the breakered-amp price at an approximate level that assumed each customer would fully utilize each power circuit. Companies ended up paying for power they didn’t use, and at no point did they understand how much power they were actually consuming. It’s not that colocation customers haven’t wanted to save money or consume less power. They have always sought ways to get the most mileage from technical deployments. Data center power bills can be upwards of 30%-50% of total deployment cost, so power is an obvious target for cost-cutting initiatives. BCM Provides New Costing Model: With economic events intensifying the need for a change in the way power is billed, branch circuit monitoring (BCM), the newest technology for measuring data center power, is becoming a benchmark to help both customers and colocation providers face some of their biggest power monitoring challenges. In its simplest form, BCM is a way to track actual usage of each power circuit, whether in a home, office or data center. Technically speaking, BCM is a system that uses current transformers (CTs) to measure the electrical current of each power circuit within an electrical panel or PDU. The BCM equipment used today has been engineered to integrate seamlessly with a wide variety of turnkey hardware and software packages used for gathering and storing circuit data. Alternatively, using open standards, it is possible to gather and store the data from a BCM circuit board using custom software and hardware. In either case, once the readings have been gathered and stored, they can be analyzed, ported, retrieved or transferred as easily as any other piece of data. BCM originally was implemented as an easy way to see electrical usage on each panel at a glance. Engineers and operators could know when physically looking at electrical panels if there were any circuits in danger of tripping or if there were any tripped breakers (indicated by zero current). As the technology progressed, BCM was used to trigger simple alarms for local or remote personnel charged with monitoring the health of the electrical distribution system, which resulted in higher facility uptime. Though these uptime-maximizing functions of BCM have become more robust in recent years and are one of the most important features of the technology, BCM also has opened new doors for customer-facing transparency. Perhaps the most profound application of the modern BCM system within the colocation facility is the ability to measure the actual usage of each power circuit as a means of calculating power fees. Now, not only can a colocation provider offer insight into actual usage, but the provider can help customers save money by identifying opportunities to reduce consumption. To accurately accomplish this, a BCM system must have a few key elements in place. The first requirement is a location to record and store the data supplied by the CTs within the electrical panel. As it stands today, relational databases such as SQL are used commonly as the preferred storage method for the CT measurements. A second reference table or database that defines each circuit is also required. This element of the BCM system must define the panel/PDU, circuit voltage, breaker positions within the panel (for 208V or 3-phase power), and the appropriate circuit user (the customer). The CT’s historical data and reference table makes it possible to generate a usage trend of each circuit, along with the ability to reference that circuit back to a specific customer. If a colocation provider can summarize power consumption in customer bills or through an online portal, customers can see usage trends and reap the benefits of energy conservation through virtualization, smart power management, or simply by identifying and shutting off underutilized servers. Different departments within a single data center deployment could also verify individual power usage for more accurate cost accounting. Though usage-based power pricing is primarily a boon to colocation customers, the BCM system also offers a number of meaningful benefits to colocation providers. As we all have witnessed in the past several years, energy prices are anything but stable, and the fees from a utility company often reflect this volatility. Employing a usage-based pricing model allows colocation providers to immediately pass along any cost changes directly to customers nearly real time without the need to manually notify customers and adjust billing, often the case in fixed pricing scenarios. Usage trending is another benefit BCM systems offer to colocation providers. A database of circuit data allows for the analysis of trends on circuit, panel or UPS usage to help predict future demand. Depending on the level of detail maintained in the reference database, it also might be possible to analyze power based on equipment type, market segment, geography and more. Time for a Change: In the past, fixed power pricing made logical operational and business sense. Without the ability to measure and collect data on individual circuit use, it was impossible to see actual use below the UPS units (electronics on UPS units show usage). Fixed pricing still makes sense where BCM technology is not installed or for small customers. For smaller deployments, the cost of monitoring and billing relatively low power draws exceeds the benefits of transparency. On the other hand, for very large data users, monitoring consumption at the electrical panel or UPS level may make more operational or fiscal sense. The impact of the change from fixed to usage-based power pricing varies greatly from customer to customer, depending on their unique usage profile. At the very least, access to data on actual power usage can lead to benchmarking and, hopefully, eventual reduction. If companies can reduce their bills through reduced usage, then they have an incentive to reduce power consumption, which is good for everybody. For some companies whose power consumption periodically varies (seasonal usage, holiday peaks, etc.), the benefits of usage-based power pricing can be even greater. These companies can reduce costs during non-peak periods compared to fixed pricing models. Other types of users that have low usage/high breakered-amp profiles, such as network operators, could also stand to benefit greatly. These customers are paying a relatively high fixed power price for little power use. Power is the primary resource in a data center, and its availability and emissions are a growing concern. As the effects of climate change gain more attention in the national media and result in potential government regulation and oversight (as in H.R.2454), knowing not only how much power you consume, but also the generation mix of consumed power (to specifically understand carbon usage) will become increasingly important, if not a requirement. Further, you can get ahead of the curve by setting targets for future reduction. Implementing BCM in your own data center or asking your colocation provider to implement BCM technology and usage-based power pricing, is one way your company can help reduce long-term carbon emissions and save money. David Dunn is senior vice president of marketing and business development at CoreSite. View Mr. Dunn’s full biography here.

	Service Success Stories: International Networking Company Rates CoreSite as the Market Leader in Service Jeff Slusarz \| CoreSite Service Director The Company ControlCircle is a London-based, high availability networking company providing enterprise services to financial, legal and several of the UK’s largest online businesses. Named 2008 Thames Gateway Business Growth Business of the Year, ControlCircle supports multiple offices, branches, disaster recovery sites and remote clients with secure data centers in London, Paris, Frankfurt, Berlin, Hong Kong, Amsterdam and the US, with Network Operation Centers (NOCs) in Ireland and London docklands, all manned by highly qualified technical staff 24x7x365. For more information, please visit www.ControlCircle.com. The Need ControlCircle needed sufficient space within Manhattan (NY) that offered diverse connectivity options and direct interconnection opportunities with major financial exchanges. The desired partner was a multi-regional U.S. data center provider with reliable data center space that would allow for future growth objectives. On the service side, ControlCircle was looking for a highly-responsive organization that understood their business and as a result could help to ensure corporate objectives were met. The desired partner was a multi-regional U.S. data center provider with reliable data center space that would allow for future growth objectives. On the service side, ControlCircle was looking for a highly-responsive organization who understood their business and as a result could help to ensure corporate objectives were met. The Decision As a result of ControlCircle’s due diligence process, CoreSite was identified as a data center provider that could meet all deployment requirements. Further research showed CoreSite’s building, 32 Avenue of the Americas, as one of New York City’s hubs for interconnection. CoreSite’s New York data center also offered direct connection to the NYSE’s SFTI network as well as numerous other global financial exchanges as well as available space across the United States in key sites which coincided with ControlCircle’s geographical interest. Upon engaging CoreSite’s local vice president, it was evident the company understood ControlCircle’s business. ControlCircle toured the data center and was pleased to see CoreSite had completely overhauled a former AT&T site, creating a state-of-the-art, turn-key data center. It quickly became clear that CoreSite was the perfect choice for ControlCircle’s New York data center deployment initiative. “CoreSite had the ability to offer us turn-key data center space in the most important locations throughout North America. Their vendor and carrier-neutral stance compliments our business model and allows us to strengthen our position within the U.S. enterprise market,” commented Nathan Milkins, New Business Sales North America, ControlCircle. The Results CoreSite’s New York data center has become an integral part of ControlCircle’s East Coast U.S. footprint, with the 32 Avenue of the Americas Meet-Me Room acting as an interconnection hub. A favorite of ControlCircle’s Network Operations Center (NOC) team members is MyCoreSite, the “innovative” online customer management portal provided free of charge to every CoreSite customer. MyCoreSite allows ControlCircle to order services, analyze data and take appropriate operations actions - quickly and efficiently - creating a seamless integration with NOC engineers based in London, UK. “We found the CoreSite team to be helpful, interested in our business and eager to help us,” commented Ian Finlay, Chief Technology Officer at Control Circle. “Indeed the time taken from signing the paperwork to go-live was under two weeks which, exceeded our original expectations of a four to five week lead time. A true test of any provider only ever happens when issues arise. CoreSite’s response and professionalism consistently exceed our expectations and that of our customers.” ControlCircle also commented that working with CoreSite has greatly added to the success of their U.S. presence, stating CoreSite’s “outstanding,” 24x7x365 customer service has more than proven itself to be a leader in the market. The future is bright for the ControlCircle-CoreSite relationship. ControlCircle has commented that CoreSite has data centers in numerous U.S. markets that are attractive both on a corporate and client level, hinting at a strong likelihood of cross-brand expansion. Mr. Milkins stated, “We have taken advantage of their technology and competitive pricing and can envision growing our North American business through CoreSite infrastructure.” ControlCircle Info ControlCircle is headquartered in London, England - with offices in New York located at 40 Wall Street, 28th Floor \| New York, NY, 10005 USA. T: +1 (646) 512 5832 F: +1 (646) 512 5834 E: us.sales@controlcircle.com More information on ControlCircle can be found at www.controlcircle.com. Jeff Slusarz is service director at CoreSite.

	CoreSite Peering Update Dominic Tobin \| CoreSite VP of Operations CoreSite’s Any2 Northeast Internet Exchange CoreSite’s Any2 Internet exchange continues to grow, expanding to new markets across the United States. Any2 Northeast now connects CoreSite’s New York, Northern Virginia and Washington, DC data centers. CoreSite is pleased to announce the planned extension to Boston by the end of March 2010! The extension to Boston means that Any2 Northeast participants have the opportunity to negotiate peering (public or private) relationships and interconnection among more than 100 unique customers. Those companies interested in a charter membership on Any2 Northeast should contact Sales@CoreSite.com. Participation Currently, CoreSite’s Any2 California continues to be one of the largest distributed peering exchange points in the world with 191 participants. Most Any2 participants are listed publicly on the CoreSite website, including their IPv4 and IPv6 IP addresses and their respective CoreSite data center location. The list includes the world’s largest CDNs, enterprises, Web 2.0 companies, hosting/cloud companies, and domestic/international carriers. CoreSite’s Any2 California also has a diverse selection of Asian carriers, making it the West Coast’s most compelling peering point (public or private). New/Recently Upgraded Peering Participants Thank you to our newest members or members who have recently upgraded their ports: + Merit Network + Steadfast Networks + True Records + ICANN + Citylink Fiber Holdings + New Dream Networks + Cavalier Telephone + Linkline Communications + Digital Voice Solutions + Axcelx Technologies + DENIC eG + Liveworld Traffic Traffic levels on CoreSite’s Any2 Internet exchange have increased steadily since 2007. Real-time performance data can be viewed on our Any2 stats page at any time, with charts for the past 48 (eliminate hyphen) hours, past 30 days, and since 2007. As of January 2010, Any2’s traffic was as follows: + Past 30 Days + Peak: 155 GBPS \| 1/10/10 + Average: 76 GBPS For frequently updated information/posts regarding Any2, we encourage you to join CoreSite’s Any2 blog via the Any2 RSS feed. Dominic Tobin is senior vice president of data centers at CoreSite. View Mr. Tobin’s full biography here.

	Regional Roundup: A Coast to Coast Update Mark Jobson \| CoreSite Marketing Director Bay Area Construction continues on CoreSite’s newest data center campus at 2901 Coronado in Santa Clara, California. Phase I of the project is scheduled to open by the end of Q1’2010. 2901 will be the third CoreSite data center in the Bay Area, joining 55 S. Market in downtown San Jose and 1656 McCarthy in Milpitas. The new data center will deliver 5.3 critical megawatts of power and both CoreSite private data center suites and cage-to-cabinet colocation will be available. Boston CoreSite’s Boston data center at 70 Innerbelt Road in Somerville, MA will be expanding in early Q2’2010. Included in the project are 12,000 SF of new raised floor space and security upgrades such as additional mantraps, biometric scanners and cameras, and gated parking with perimeter fencing. In addition to the data center expansion, CoreSite will be extending its Any2 Northeast Internet exchange to Boston by the end of March. This will provide customers with access to any network present at the company’s New York, Northern Virginia, and Washington, DC data centers. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Boston. Chicago CoreSite delivered an additional 2 megawatts/20,000 SF of raised floor data center space on the third floor of its Chicago data center in Q3’2010. We are also proud to announce the addition of MERIT Networks to Any2 in Chicago. Existing customers of the data center include major financial exchanges and financial services companies, cloud companies, and Tier 1 carriers. Los Angeles We have numerous expansions and upgrade projects underway. Construction is on-schedule to deliver 2 megawatts of additional space and power at our 900 N. Alameda data center in Q2’2010. The "World’s Most Connected Room," otherwise known as One Wilshire’s; 4th Floor Meet-Me Room, will be upgraded throughout 2010 with additional UPS power and cooling, and security upgrades. CoreSite’s new Operations Support Center (“OSC”) is now complete and 100% operational at 900 N. Alameda. This will function as a virtual NOC and help improve customer service and uptime. CoreSite’s Any2 California continues to grow in membership, with nearly 200 networks passing traffic as of January 2010. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Los Angeles, CA. Miami CoreSite’s Miami data center offers connectivity to more than 200 carriers via onsite providers and dark fiber connectivity to other local data centers. The data center is rated to withstand Category 5 hurricane winds and its location is at one of the highest points in Miami, an ideal for flood prevention. Florida Power & Light (FPL) delivers multiple electrical feeds from diverse grids to CoreSite’s on-site power vault, providing customers with the ability to deploy in a full 2N mechanical and electrical configuration. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Miami, FL. New York Since its grand opening in 2008, CoreSite’s New York data center has shown strong leasing activity from a diverse set of customers. The ability to connect with major financial exchanges and scores of carriers make our New York data center an attractive location for financial firms and content companies. CoreSite’s New York data center offers some of the lowest latencies to the financial exchanges. CoreSite currently offers cage-to-cabinet colocation only in New York, NY. Northern Virginia/Washington, DC An additional 6 megawatts of power (and associated space) were recently delivered to CoreSite’s Northern Virginia data center at 12100 Sunrise Valley Drive. Demand continues to outpace supply in the region. CoreSite private data center suites and cage-to-cabinet colocation are both currently available in Northern Virginia. CoreSite also recently expanded its 1275 K Street data center by another 20 cabinets to accommodate further network provider growth. If you would like to schedule a private tour of any CoreSite data center or join our event invitation list, please click here to email your information. Mark Jobson is marketing director at CoreSite. Thank you for taking the time to read through our newsletter! To view online, please visit www.CoreSite.com/Newsletter_Q1_2010.php. Our goal is to produce a quarterly version of this document and we welcome your feedback for future improvements. To offer your comments, please visit www.CoreSite.com/Feedback.php. CoreSite Headquarters 1050 17th Street, Suite 800 Denver, CO 80265

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