Multi-tenant data centers (MTDC) are one of the key parts of the interconnected world we now live in. One of the main functions they provide is a location for enterprises and networks to meet and exchange data. A simple Zoom meeting may involve connecting the T-Mobile network from your home to the Zoom servers at a data center to the backbone cloud provider such as Oracle to another data center to connect to your colleagues’ AT&T cable connection. Without the connections provided at MTDCs, many of the internet functions we take for granted could not happen.
While there are virtual cross-connects that occur in the switching layer of the network, ultimately there needs to be physical connections between the multiple enterprises and carriers. These physical fiber connections have typically been implemented manually by technicians running fibers between patch panels in a meet-me-room in the multi-tenant data center. Coordinating the multiple steps involved in the process and Implementing the manual patching can take from 3 to 10 days in some data centers. Technicians may also have to redo the work is there is an error, such as incorrect connection of the transmit and receive ports. As fiber counts in data centers scale, it becomes a challenge to stay with the manual approach.
The Telescent Network Topology Manager (NTM) offers a fully reconfigurable, large-port-count, all-fiber robotic cross connect system that can bring the advantages of software-defined networking to the physical fiber layer. The core of the system is a robot that grabs a fiber and routes it around the other internal fibers in the system to make the requested connection. A patented algorithm is used to maneuver the fiber, allowing the system to make an any-to-any connection with full reconfiguration options. Each full NTM contains 1,008 duplex ports with designs and options to economically scale from a few hundred ports in an equipment cage to 10,000 connections spanning multiple buildings on a data center campus.
While there are many novel ideas, new products are usually only adopted if there is an economic benefit. In the case of automated cross connects using the Telescent NTM, the economic benefits can be both increased revenue and faster time to revenue from the customer and reduced operational expenses (OpEx) for the company. Both benefits will be examined below.
Possibilities for increasing revenue through the use of automated cross connects include faster service guarantees and improved performance. Since the business model for carriers and cloud providers is based on providing transport of the data, the sooner the connection to the enterprise is made the more revenue they will collect. Because of this, cloud providers are pushing for 1 day service levels for the cross connect. In some cases, MTDCs have charged double the standard price for this expedited connection (PTC’20, private conversation) demonstrating the ability to generate increased revenue through faster service.
Another option for premium service is the ability to provide better optical performance and diagnosis available from an automated cross connect. The Telescent NTM offers a very repeatable, low-loss connection with automated cleaning of the fiber before every connection. Using the optional OTDR functionality also allows the MTDC to test and guarantee the cross-connect performance while also offering very rapid diagnosis and troubleshooting should any issues arise.
The economic benefit of even a 25% premium can be significant in terms of the net income provided. The table below shows the revenue for standard and premium cross-connects for a mid-size MTDC company.
Table showing the revenue increase by offering premium cross-connects
Of course, one could argue that customers will not pay extra for the automated cross connect and instead are pushing for lower cost connection. If this is true, offering the automated cross connect becomes a differentiating advantage and may reduce the pressure to reduce prices. And there are also significant operational expense benefits to the automated approach.
The labor to install and verify connections in a manual cross connect can be significant. A few of the multiple steps include:
initial processing and issuing of the request
having the trained technician travel to the data center if they aren’t on site
locating the specific port for the connection in the data center
testing and verifying the link
closing out the request and manually updating the cross-connect status
If double-ended loss measurements are required and the cross connect spans multiple location, this will require coordination of a technician at each end. As with many manual processes, the installation is error prone and subject to rework, for example when the transmit and receive ports are connected improperly.
In reviewing all these steps with an operations manager at an MTDC, the total process requires approximately 8 hours of labor time. Using a burdened labor rate of $50 per hour gives a cost of $400 per cross connect. Multiplying the manual cost by the number of cross connects in a typical MTDC shows the significant cost of the manual process and the cost savings with the automated process. In contrast the operational expense of the automated process will be minimal, typically including just the warranty and RTU charge.
There are also additional unseen costs in the manual process such as inventory accuracy and management of cable trays. With manual record keeping there is always the chance of errors in tracking multiple connect and disconnect requests and errors will build up over time. Of course, any errors in the cross connect inventory will translate to errors in revenue. With cable trays, when a customer requests a disconnection of a cross connect, the fiber is often left in place since pulling the fiber out of the cable tray may cause issues with other installed fiber. This means the cable trays can fill up with unused fiber making it more challenging (and time consuming) to pull new fiber.
With both the increased revenue opportunity from premium services and the significant OpEx savings available from automation, it is easy to see why many MTDCs are moving from manual to automated provisioning of cross connects.