Central Data Centers Critical in Emergencies
Deborah Held Maslia
April 13, 2007

Following a corporate lead, there is an emerging trend of nonprofit organizations housing their mission-critical and other sensitive technological information in centralized data centers.

A corner of the office or a large on-site closet at one time seemed a fine space to store volunteer, client and financial information. As nonprofit organizations have begun to realize the critical role that technology plays in their daily routines, however, they are beginning to make use of not only the professional risk management and technical expertise that a data center offers, but of the cost-effectiveness of utilizing a hosting facility as well.

"It's an emerging trend," but not a 'surge,' " said Jack McMillan, CEO of TechBridge, a nonprofit technology consulting organization that works for other nonprofit organizations. "[Nonprofits] that are highly dependent on their informational systems for their core operations ... need to exercise their assets with the care that any corporation would use as they become more dependent on their information systems."

A centralized data center provides the appropriate space and security for computer equipment and its stored data, secure data backup, greater network reliability and increased network uptime through redundant power and accessibility to said equipment and data. Also, the increased operational efficiency provided by the hosting center for the network grants freedom to the nonprofit organization, which is then free to locate its offices at a convenient and/or affordable site with little to no interruption of service.

"Companies in general go to a hosting location because we focus on data center facilities and managed services and we do it in a cost-effective way," said Matt Searfoss, director of sales for Suwanee-based Quality Technology Services, a national, full-service technology infrastructure company and provider of data center and managed technology services. "Ultimately, companies are trying to provide availability and reliability of their application systems and their data."

In its 367,000-square-foot facility, Quality Technology Services houses its computer equipment on 168 feet of temperature-controlled, raised floor space, providing permanent, low-risk IT resource housing.

"We provide the depth and the breadth that a company cannot go out and hire" in full-time counterpart components, said Dan Kurtz, Quality Technology Services' vice president of sales and marketing. "We spread the 'full-time equivalent' (FTE) across many companies -- providing 'economy of scale.' "

Some of the larger nonprofits -- like their large corporate counterparts -- have been outsourcing their IT resources for several years, according to experts, but essential technology is creating a need for data hosting facilities for organizations of all sizes. For example: All nonprofits are expected to have a Web presence, said Searfoss, for facets such as online fund-raising, and membership and volunteer management. "Most nonprofits don't have that kind of money, so they are choosing to host their services with a provider."

Advocates of nonprofit organizations are hoping to spread the word about the security, peace of mind and cost benefits a consolidated data center can offer, as the majority of nonprofit organizations are still housing their computers in non-secure environments, said McMillan, although "more are recognizing the need to change that."

The most obvious risk of an organization housing its own technology is loss of data. Both McMillan and Searfoss cited examples of organizations that had lost vital information that had not been properly backed up.

"[Nonprofits] have to be sure that they are getting good data backups and that they are being stored off-site," said Searfoss.

But disaster is just a footstep away if a volunteer or organization member happens to trip over the wrong computer cord and wipes out pertinent data, for instance. Other disasters waiting to happen could include a lightning surge, flooding of the premises or an A/C outage that causes computer equipment to overheat.

"You can no longer afford to risk downtime and lack of security in your office environment," said McMillan.

This applies to any nonprofit organization. Centralized hosting facilities are beneficial to organizations of all sizes, said McMillan. "From a standpoint of managing risk, these facilities are vital if you're at the scale that your technological operations are complex and essential to what you do." And for the smaller nonprofit with less complex technology, while "you don't need a highly secure data center for risk management, for economics, you do."