Necip Fazıl KESKİNKILIÇ

Chronological Growth of Data Center Industry

Data Centers were just used for Military service between 1950 to 1970s

During the boom of microcomputer industry (in 1980s), computer started to be deployed everywhere and then the importance of Data Centers had inevitably increased

After the formation of IT Sector, the requirements of big companies to Data Centers got occurred (from 1990s to now)

Verne Global was co-founded by trio Icelandic entrepreneurs

Verne was a highly innovative venture and different from their competitors in this respect

Verne took customers’ data traditionally stowed away in large facilities in major metropolitan areas such as NY, San Francisco, London

Verne was visionary symbol of Data Industry due to the activities mentioned above.

BACKGROUND ON

Customers typically either built their own data center (Google, Yahoo, Microsoft) or rented space in third-party data centers.

is very similar company with the exception that would sell very a large amounts of space and power to customers.

WORLD TREND IN DCI

THE PERFECT LOCATION FOR DATA CENTER

Iceland had been labeled by some industry analysts as a perfect location for data center because of ;

%99 electricity of Iceland was produced by very inexpensive and renewable energy. The highest percentage in the World

Iceland’s cool climate enabled the usage of an innovative technology labeled “free cooling” it reduced the need for mechanical cooling

Iceland basted a highly skilled and technologically savvy population which enabled Verne to supply well-qualified staff to service customer need

The most important value proposition of the company is its easily reachable and one of the least expensive power sources.

Because of Iceland's climate and resources provided by the geographical location of the company Verne Global was highly advantaged regarding its other conventional facilities of its competitors.

THE VERNE VALUE PROPOSITION

company used geotherm

al and hydroelectric

energy sources in Icelan

d.

Because of Iceland's climate and availability for these energy resources, the company have acquired a high competitive advantage in their data centers.

Data center’s needed to be kept very cool

for the health of the hardware stored

inside

Verne used the air outside directly to cool its datacenter

Verne have signed a long term contract with a leading Icelandic energy provider, and that helped them to provide high amounts of power savings to its customers

Isaac Kato the CFO of the company thought that; by these factors and with his calculations, the Verne global could provide a lot of customer savings and much more profits to the company

So the company decided to approached into the carbon market with a green strategy, as a reason of their excess, easily reachable and renewable energy supply.

It would be very smart for any other companies to collaborate with Verne global to run their data operations because of the offerings they provide differently than their

competitors in the U.S or Europe.

THE CARBON MARKETS AND VERNE’S GREEN STRATEGY

By 2009 companies started growing global concerns about the climate change and global warming.

This is where Kyoto Protocol has come around.

These mechanisms are to help global marketplaces for the exchange of gas emissions.

As of 2007 , the overall size of the carbon market had grown to $64 billion

While the U.S had not yet contributed to the Kyoto Protocol , many U.S. companies and organizations voluntarily desired to reduce carbon emissions for lots of reasons like establishing goodwill with their customers.

1. Sell carbon credits via a voluntary exchange market

2. Partner with its utility provider to sell renewable energy certificates

3. Directly charge customers a premium for the value of their net carbon reductions compared to a comparable data center

Due to the attractiveness of the growing carbon market options, Isaac Kato the CFO of the company

had 3 options to review in his mind.

CUSTOMER DESIGN MARKET PROCESS

ENSURING THE CUSTOMER : MINIMIZING THE RISK

DATA CENTER MANAGER : ‘GATEKEEPER’

MISSION OF CIO1) PURCHASING THE EQUIPMENT INFRASTRUCTURE

INSIDE THE DATA CENTER

2) POWER PURCHASING DECISION

CFO CEO DATA CENTER

MANAGER

TARGET AVOID

OVERCOMING CUSTOMER CONCERNS

Iceland’s ongoing economic crisis Bandwidth availability and latency issuesFear of the unknownThreat of earthquake or other geological even