AFCOM's Data Center Institute Issues Five Bold Predictions for the Future of the Data Center Industry; New Survey Identifies Labor Shortage, Power Failures, Relocation, Risk Management and Virtualization as Major Issues

Business Wire, March 23, 2006

ORANGE, Calif. -- AFCOM's Data Center Institute has issued five bold predictions for the future of the data center industry. The predictions were presented by Data Center Institute Board Members in the keynote address to data center professionals attending Data Center World(R), the industry's premier educational conference, taking place this week in Atlanta.

Formed in 2001, AFCOM's Data Center Institute is a prestigious think tank comprised of data center managers, solution providers, and industry leaders, whose charter is to identify and examine issues affecting the data center and provide thought leadership for the industry and the media.

The predictions:

--Within the next five years, one out of every four data centers will experience a business disruption serious enough to affect the entire company's ability to continue business-as-usual. (Presented by Christopher Caprio - Technical Services Manager, Imation)

--By 2015, the talent pool of qualified senior-level technical and management data center professionals will shrink by 45%. (Presented by Leonard Eckhaus - Founder and President Emeritus, AFCOM)

--By 2010, nearly 70% of all data centers will utilize some form of grid computing or other virtual processing. (Presented by Ray Heath - Chief Technology Officer, Data Dynamics)

--By 2010, more than half of all data centers will have to relocate to new facilities or outsource some applications. (Presented by Tom Roberts - Director of Data Center Services, Trinity Information Services)

--Over the next five years, power failures and limits on power availability will halt data center operations at more than 90% of all companies. (Presented by Rick Sawyer - Director of Data Center Technology, American Power Conversion)

The predictions, intended to inspire debate and discussion industrywide, are the backbone of a strategic educational campaign that AFCOM and the DCI will be supporting for the balance of the year and beyond.

"All of the issues addressed in our predictions are looming ominously on the horizon and need to be taken seriously," said Jill Eckhaus, AFCOM President and Board Chair for the Data Center Institute. "If data center managers don't prepare now, the potential for catastrophe is huge."

Eckhaus added: "Phase one of AFCOM's campaign will focus on raising awareness of the issues and their implications, and then it will evolve to provide solutions. AFCOM and the Data Center Institute plan to work independently and with strategic partners to develop and disseminate information that will help data center professionals address these issues."

New Survey Findings

Findings from a survey of AFCOM's membership undertaken in January 2006 were assessed as the primary source for the Data Center Institute's predictions. Key findings include: (complete survey findings available upon request)

--Eighty-three percent of respondents say they have a risk management plan in place, however, only 1.3% of the plans address security breaches, and 2.7% address viruses. Forty percent confirmed that a business disruption would cost their company from $250,000 to upwards of $5 million per hour of downtime.

--Thirty-eight percent of respondents say they currently have unfilled positions in their data centers, and 15% say it usually takes six months or longer to fill open senior-level technical or management positions. Forty-seven percent believe finding qualified senior-level employees will become more difficult over the next five years.

--More than half of respondents anticipate needing to physically expand their data center in the next 10 years, with 5% planning to outsource and 13% planning a combination of expansion and outsourcing. Nearly a third expect to have to relocate their data centers, while 45% believe they will need to make major improvements to existing data centers.

--In the past five years, 34% of respondents have had to upgrade or add feeders to their data centers to accommodate higher loads, 14% had to build new centers with additional capacity to meet IT requirements, and 8% had to ask landlords for more electrical capacity. Sixteen percent say they haven't made changes in the past five years, but anticipate they will in the next five years.

--Twenty percent say their data center is currently exceeding 80% of power capacity in their data center, 49% say it's exceeding 50%, and 21% say the demands are between 25% and 50% of capacity.

For additional background information, complete survey findings, and interview opportunities with AFCOM executives and/or Data Center Institute Board Members, please contact Layne Maly, Director of Communications for AFCOM, at lmaly@afcom.com, (571-344-1807).

About AFCOM:

AFCOM (www.afcom.com) is a leading association for data center professionals, offering services to help support the management of data centers around the world. Established in 1980, AFCOM currently boasts more than 3,000 members and 19 chapters worldwide, and provides data center professionals with unique networking opportunities and educational forums and resources through its annual Data Center World(TM) Conferences, published magazines, regional chapters, research and hotline services, and industry alliances.