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February 16th, 2007 - Journal Record

Plenty in store: Perimeter finishes Tulsa data center, plans second OKC facility

by Kirby Lee Davis
The Journal Record
2/16/2007

 

TULSA – With its Tulsa Business Continuity Center now finished, fast-growing Perimeter Technology intends to add a second Oklahoma City data center in its quest to emerge a regional power.

“Over the next four to five years we’ll have five facilities,” said Stan Chase, chief operating officer of Oklahoma City-based Perimeter. “We see substantial growth in our forecast.”

The private company owned by Chase and six other partners saw its revenues double last year to $5 million. With physical work on the 36,000-square-foot Tulsa facility now complete, at a total investment estimated at $3 million, Chase conservatively expects the profitable company to raise its revenues by up to $2 million this year.

Perimeter now provides “lockbox” protection for 30 company data centers in Tulsa. Now that the two-year renovation is complete, Chase wants to add 140 more server racks to bring his client base up to about 100 firms. Steven Curtis, director of sales engineering for the Tulsa office, expects that to take up to three years.

“That’s our biggest challenge,” said Chase, “getting companies to turn loose of their data centers.”

In comparison, Perimeter serves about 80 companies in Oklahoma City’s 36,000-square-foot center, about 80 percent of its capacity. That explains its expansion plan.

Launched in March 2003, Chase said that Perimeter reached a positive cash-flow position within its first year. It drew benefits from the already advanced state of its 4100 Perimeter Center Dr. office, a former hub for iBeam Broadcasting and Williams Communications.

“We had millions of dollars invested in the facility, but we didn’t have to pony up any of that,” said Chase.

Perimeter enjoyed similar good fortune when it acquired Tulsa’s 322 E. Archer St. facility, formerly used by the telecom arm of General Electric. Over the last two years, Perimeter has proceeded to develop the center into a reflection of its Oklahoma City base.

Even so, due to the constant need to upgrade, Chase said Perimeter has invested millions into both of its facilities – and will again with its second Oklahoma City complex, a projected 20,000-square-foot structure still under development.

All of the infrastructure that makes the Perimeter centers attractive precautionary measures – in Tulsa, that ranges from 13-inch-thick walls and multiple security layers to clean power redundancies and 140 tons of cooling power – also carry a high cost. Chase estimated its operating budget at $1 million a year.

But that also proves Perimeter’s strength, since it pales against the combined operating costs of all its client data centers.

“That’s why we’re working very hard with companies to educate them to get out of the business of data centers,” Chase said.

Even in this security-minded age regulated by Sarbanes-Oxley and the Health Insurance Portability and Accountability Act of 1996, “the economics of scale work against it,” he said. “It’s a very expensive proposition to keep a data center operational.”

On Jan. 19, Perimeter finished outfitting the Tulsa office’s 17,000 square feet of business continuity office space, complete with showers and break room, for when office staffs must relocate at times of emergency. Capable of seating up to 450 people, all the space awaits now are some 15 additional tables and 30 chairs.

Perimeter already has a long-term lease for half of that office.

“It can help you sustain your business operations. That’s all it’s for,” said Chase. “I pray to God we’ll never have to need them.”

Its digital communications area now claims 4,200 square feet with a raised floor, cooled by seven 20-ton HVAC units. Perimeter intends to reorganize its neighboring carrier-neutral collocation room to accommodate more customer servers. The company also offers the ability for off-site storage, if the customer desires.

Perimeter runs its Public Service Co. of Oklahoma electrical feed through automated transfer switches and batteries that stabilize the current. If at any time the PSO line fails, battery power fills the 11-second interval before an indoor Caterpillar generator kicks in, fed by a 4,000-gallon diesel fuel tank.

If the often-tested generator somehow fails, the batteries can power the complex alone for almost four days, depending on the operational load – with a second generator hookup available to ease the stress. It also maintains maintenance contracts on its generator, switches and batteries.

Chase expects the second Oklahoma City center, projected to come online within 18 months, will duplicate all of these features except for the continuity space. With Sarbanes-Oxley encouraging “best effort” protection measures, he foresees not just large public firms, but smaller companies to realize the advantages of maintaining their data centers in protected facilities like these.

“That’s another reason why I think our business has taken off,” he said. “Companies can pass that responsibility off to us.”

Chase credited the backing of BOK Financial for his company’s foundation, as well as a private equity firm providing expansion capital.

Perimeter draws revenue not just from leasing data equipment storage space or continuity office space, but also from offering professional data services – ranging from wide area network design and implementation to managed firewall services, disaster recovery consulting and network security consulting. It will even help companies establish their own secure data centers, “although I strongly try to encourage them otherwise.”

“Our biggest competition is internal IT staffs,” he said. “It’s not other data servers.”

A partnership born of fire

TULSA – Within its first two months of business, the Oklahoma City computer services firm Rock Island Group found itself facing a nightmare task.

Suffering a near-mortal wound from the 1995 bombing, its Murrah building home and vital computer systems literally destroyed, the Federal Employees Credit Union turned to Rock Island for resuscitation.

“I asked him what he wanted,” Stan Chase recalled of his talks with Raymond Stroud, then vice president and comptroller at the FECU, “and he said, ‘I want it back the way it was.’”

Even after almost 12 years, Chase still pauses when thinking about that daunting task.

“We started from scratch,” said Chase, now chief operating officer of Perimeter Technology. “And we had them up and operating in 48 hours. That was nothing but the grace of God; I don’t know how we did that.”

That emergency effort led Rock Island to refocus on data management and recovery. After several corporate permutations, Rock Island’s core executives continue that focus as Perimeter Technology.

“This operation’s engineering team has been together 11 years,” Chase said. “You prepare for the worst and you pray for nothing to happen. But you want to be ready if it does.”

Along those lines, Perimeter’s seven partners made their firm a success by building on their data core competencies.

“I hate to read an article where it says, ‘Stan Chase built …,’” he said. “Stan Chase didn’t build any of this. He had partners in all of that.”

They include Chief Executive John Parsons, Vice President of Sales Heath Rutz, Vice President of Operations Todd Currie, Vice President of Engineering Terry Morrison, Vice President of Technology Brad Thomas, and Vice President of Marketing Russ Koch.

“We stay focused on our core competencies,” said Chase. “We stay focused on providing service to our customers. And that’s all it is.”

– Kirby Lee Davis

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