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A R I Z O N A’ S

TECHNOLOGY MAGAZINE

The

DATA CENTERS Issue

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FAT CHANCE

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INNOVATION NATION

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EXPO 2012

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GOLDEN TOUCH

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BY THE NUMBERS


www.innovationaz.com


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What’s Inside

A R I Z O N A’ S

TECHNOLOGY MAGAZINE

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sCiENCE FOuNdaTiON ariZONa

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iT ParTNErs

Where we’ve been helps tell us where we’re headed.

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CHuCK VErmiLLiON

OneNeck’s chief finds data as key to his success.

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EXPO 2012

Tech showcase will be at heart of centennial celebration.

The Network

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BY THE NumBErs

You’ll be surprised to find out how bytes add up.

On the Cover :: The Data Centers Issue

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Innovation Nation Arizona offers ideal environment for centers and new ideas to flourish.

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FAT CHANCE

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INNOVATION NATION

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EXPO 2012

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GOLDEN TOUCH

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BY THE NUMBERS

Contact us :: editor@techconnectmag.com

In Every Issue 004 President’s Letter 006 Editor’s Letter 020 Science Foundation Arizona 022 Arizona State University 024 Northern Arizona University 026 Capitol Watch


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President’s Letter

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Bigger is Better

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hile Arizona’s economy continues to struggle and the national unemployment rate remained high at 9.5 percent in July, a national study recently showed that 83 percent of large corporate data users plan data center expansions during the next 12 months. That is particularly good news for our state.

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The data center is essentially a physical location where multiple servers are maintained. Apart from housing servers, a data center has routers and switches to help the servers communicate with one another. Data stored in these centers can range from the health and accounting records of consumers to an organization’s human resources information to top secret defense plans. The growth and need for data centers in an otherwise rocky economy is being driven by a number of factors. Regulations and government mandates for increased

digitization of all types of information is driving up the need for data storage. The use of email continues to grow and the world is also embracing social-networking, YouTube and online purchasing. This is all contributing to a data explosion that shows no sign of abating. As the need for disaster recovery becomes critical and internal information technology systems become congested, organizations are looking to outsource to data centers and streamline infrastructure costs. Arizona has become one of the top locations for data center operations and is

considered a mecca for companies to store their mission critical IT systems. A data center requires adequate space, energyefficient systems, abundant conditioned power at competitive utility rates, and a well connected and safe environment. Arizona has a low risk for terrorism and natural disasters, such as hurricanes, tornados, earthquakes and winter storms, and it ranked in the intermediate category for severe storms and fires. Relatively inexpensive and diverse power sources including coal, hydro, geothermal nuclear and now solar also give us a huge competitive advantage. In fact, many clients of the myriad data centers in Arizona come from out of state, due to the attractive geographic, business and IT climate that exists here. In April, American Internet Services (AIS) announced that Color Broadband Communications was expanding its footprint in the AIS Phoenix data center. In June, Phoenix NAP, another large data center, opened in Phoenix after a year of construction. The industry is booming and it loves Arizona. We’re becoming known as a place where companies, particularly from the West Coast, back up their data. While some complain data centers produce few jobs and therefore are less appealing from an economic development standpoint, we embrace their presence in Arizona as a fundamental cog in building a world-class technology sector.

STEVEN G. ZYLSTRA

President & CEO, Arizona Technology Council


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Editor’s Letter

PuBLisHEr Steven G. Zylstra EdiTOr Don Rodriguez arT dirECTOr Jim Nissen, Switch Studio

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t’s amazing what you remember. Just last night I saw a former colleague from my years with The Arizona Republic. Within seconds I recalled a number of details from the place where we worked. No, not the glass tower (or Dark Tower, depending on whom you ask) in downtown Phoenix. I was thinking about the “old” building, as we called it, at Second and Van Buren streets.

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Harsh lighting. The precious few windows that let a little natural light into the newsroom. Hallways higher in some spots as indicators of past expansion projects. Vibrations when the presses started rolling. The elevator powered by water. The cafeteria grill on the ground floor where someone would make a burger while you waited. This place that first opened in 1947 was my world—a mini city filled with people doing what they loved. A good thing we did because of the great amount of time we spent there. There were a few hours in the middle of the night when just a handful of workers were there but otherwise the place was buzzing round the clock. When the time came for a change, we all couldn’t wait to move into the new place across the street. This new thing called the Internet was catching on and changing addresses was like stepping into the future. We never looked back at the old building. After all, it was a relic stuck in the past.

Fast forward. The old place didn’t crumble. And it definitely wasn’t left forgotten in the past. Consider this posting from its current managers: “Often referred to as the most connected building in Phoenix, … Van Buren data center is a premier point of interconnection for many of the world’s leading domestic and international carriers and network service providers in the southwest region. 120 E. Van Buren is a recognized fiber crossroad on almost every national network backbone, with multiple fiber entrances and vaults.” Can that be the same place where the little sign at the employee entrance reminded us not to bring in our weapons? In its new life, this former newspaper building has made news of its own. Data centers have put Arizona on the map when it comes to storing the world’s information. This issue of TechConnect gives you a chance to take a pulse on the action.

We offer some history on where we’ve been and where we’re headed. We explore the innovations that have moved from the centers and into our lives. Going green is very much a piece of the puzzle as you’ll read. We even tell you why the Valley of all places is a prime setting for the centers. This is just a sample of what you’ll see. And if you’re reading this edition online, we offer some special links to learn more about the organizations featured in both the editorial and advertising content of the magazine. One more thing: The next time you head to downtown Phoenix for a game or concert, drive by the “old” building to take a look at this landmark. While you can’t get a burger there any more, the place definitely is still cooking.

DON RODRIGUEZ

Editor, TechConnect Magazine

dEsigNErs Nicole Budz Chaidi Lobato Carla Rogers CONTriBuTiNg WriTErs Diane Boudreau Linda Capcara Bill Cassidy Steve Yozwiak TradEmarK // gENEraL COuNsEL Quinn Williams

E-maiL editor@techconnectmag.com For queries or customer service, call 480-620-3759. TechConnect is published by the Arizona Technology Council, One Renaissance Square, 2 N. Central Ave., Suite 750, Phoenix, AZ 85004.

Entire contents copyright 2010, Arizona Technology Council. Reproduction in whole or in part without permission is prohibited. Products named in these pages are trade names or trademarks of their respective companies. TechConnect is a trademark of the Arizona Technology Council. All rights reserved. Publication of TechConnect is supported by private-sector businesses, and is not financed by state-appropriated funds.


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Renewable Energy H[d[mWXb[;d[h]o Sustainable Technologies IkijW_dWXb[J[Y^debe]_[i Optics Efj_Yi Aerospace 7[heifWY[ Border Technologies 8ehZ[hJ[Y^debe]_[i

the data centers issue

INSPIRING INNOVATION. ?DIF?H?D=?DDEL7J?ED$ ADVANCING TECHNOLOGY. 7:L7D9?D=J;9>DEBE=O$


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TGen’s president and research director. The RYGB study will examine the genomes of 2,000 Geisinger patients, identifying upwards of 1 million variables in their DNA that could indicate an association with regaining weight after RYGB surgery. In addition, as many as 2,000 controls (or non-affected patients) will be examined, including patients from Geisinger—and study collaborators at Massachusetts General Hospital in Boston and Temple University’s Center for Obesity Research and Education in Philadelphia.

New Pathways DR. JOHANNA DISTEFANO OF TGEN

BREAKING THE CYCLE Study focuses on genetics’ relation to weight loss

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he number of Americans who are overweight has increased dramatically in the past two decades. Today, two of every three American adults suffer from obesity. Increasingly, many are reaching beyond diet and exercise to help stave off hunger and shed pounds—nearly 200,000 turned to bariatric surgery in 2009 as a means to achieve their weight loss goals. But such surgery, which involves risky reconnections of the stomach and small intestines, is at times ineffective and can leave patients permanently dependent on calcium, iron and additional dietary supplements, and more susceptible to hernias, ulcers and other conditions. Worst of all, for many the effects of surgery are fleeting, as they often regain the weight over a period of time. In an effort to better understand how one’s genetic make-up influences weight gain and its many effects on the human body, scientists at Phoenix’s Translational Genomics Research Institute (TGen) have partnered with Geisinger Health System of Danville, Penn., in a study potentially involving more than 4,000 patients. This study is the first planned as part of a recently signed strategic research agreement between TGen and Geisinger that provides for a focused look at the gaps in clinical medicine where biomedical research can make a difference. Obesity is a disease that stems from more

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than overeating or lack of exercise. Research has shown there is often an underlying genetic component leading to excess weight gain. Leveraging Geisinger’s wealth of clinical information—nearly 20 years of electronic health record data—the study will focus on identifying genetic markers that will enable physicians to determine who might be the best candidates for Roux-en-Y gastric bypass (RYGB), the most common bariatric procedure.

Personal Touch This long-term study also could assist in the development of new anti-obesity drugs, and lead to personalized weight-loss therapies. “This study is unique in that a wealth of clinical and behavioral information is available on each patient,” said Dr. Johanna DiStefano, director of TGen’s diabetes, cardiovascular and metabolic diseases division. “Such information is critical for unraveling the links between genetic susceptibility and environmental exposures that determine individual risk of regaining weight following a RYGB procedure.” The RYGB study is the first of many planned under an alliance announced in February between TGen and Geisinger. “We have a common mission to make major advances against complex diseases, and are working together on strategies for applying the advanced genomic profi ling technologies to individualized health care delivery, with an initial focus on diabetes, obesity and oncology,” said Dr. Jeffrey Trent,

“Given our unique research structure and a patient population that overwhelmingly supports cutting-edge research, I am confident our partnership with TGen will allow us to test and apply new clinical translation theories to obesity and other areas of patient care,” said Dr. Glenn D. Steele, Jr., Geisinger’s president and CEO. “I look forward to the results of this first study, as I am confident we can greatly improve the outcomes for individuals coping with obesity and its many associated complications.” More Americans are moving to RYGB after seeing only modest and short-term results from diet and exercise, even those adhering to disciplined weight loss efforts. In contrast, bariatric surgery—especially RYGB—yields more substantial and sustained weight loss. It is a more effective therapy for long-term weight loss in morbidly obese patients—and also as a surgical therapy for those suffering from type 2 diabetes. RYGB is the bariatric operation least likely to result in nutritional difficulties. The amount of weight loss with RYGB varies. Clinical and physiological characteristics have so far failed to distinguish individuals who will maintain weight loss after bariatric surgery from those who will not. “This study is especially innovative in that it seeks to incorporate environmental factors that interact with genetic variants to manifest a particular response, a complexity seldom examined in these kinds of studies,” DiStefano said. The knowledge gained from this study ultimately may help physicians decide which patients are suitable candidates for RYGB, and which are not. Steve Yozwiak is senior science writer at the Translational Genomics Research Institute.

+ GET CONNECTED www.tgen.org


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WRITING BY :: BILL CASSIDY

orporate data centers have long been the primary home of a vital business asset: information. Change is coming, though, and organizations are beginning to rethink their investments in both technology and the spaces to house that technology. Innovations such as virtualization and cloud computing are breaking the traditional bonds between applications and the physical infrastructure that supports them. Continued pressure on information technology budgets and the desire by many companies to go “green” are creating additional urgency to find more efficient ways to deliver IT services to users. The data center of today, often proudly displayed behind walls of glass, is a much different environment from its ancestors, “computer rooms” designed to hold one thing: the company mainframe. Prior to the clientserver computing era of the 1980s and 1990s, computing power in most organizations (if they had any at all) was concentrated in that one room. The advent of the PC and then the PC-based server resulted in an explosion of distributed computing power, with even the smallest companies having a file server or two under a desk somewhere. The physical and organizational consolidation of these computing silos has created the familiar data center of today, with its neat rows of racks containing servers, storage arrays and other supporting hardware.

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Easier to support, protect and manage perhaps, but not necessarily the most effective use of expensive computing technology. In many cases the equipment has been moved into the data center, but logically is still organized by department and application. This “server per application” model has led to amazing levels of inefficiency in the use of computing power and data center space, as well as complicating IT’s continuity and disaster recovery efforts.

Drivers Change DC Dynamic Developments in technology—along with changes in how users, both internal and external, access applications and information—are enabling businesses to change the way IT services are delivered. The Internet era, with the creation of browserbased applications, began this trend. In the corporate data center virtualization, the abstraction of the service being delivered from the physical technology supporting its delivery has been the game-changer. Of course, moving applications and services that traditionally resided in the corporate data center into a shared environment is not without challenges. First among these is maintaining data security. Hosted and cloud services create both physical and logical access control concerns that must be addressed by both IT and the business as a whole. Another primary concern is availability, which may sound a bit counter-intuitive.

TOP DOC WRITING BY :: STEVE YOZWIAK

Award recognizes cancer fighter Von Hoff r. Daniel D. Von Hoff, Physician-in-Chief for the Translational Genomics Research Institute (TGen), has won the top award from the American Society of Clinical Oncology (ASCO) for his cancer research. Von Hoff received the 2010 David A. Karnofsky Memorial Award and Lecture at ASCO’s 46th Annual Meeting in Chicago in early June. The group presented the award to Dr. Von Hoff “for his outstanding achievements

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Where Is This Going? One of things I always try to keep in mind is that it’s not about data centers, servers or any particular technology. It’s about delivering application services to users, internal or external, when and where they need to access them. All the technologies are simply there to deliver on that commitment. While it is unlikely that all organizations will be able to eliminate the own on-premise data centers, it’s just as unlikely that they won’t find a place in their plans for cloud-based solutions. Companies delivering hosted CRM, email, Web site and backup solutions have already made tremendous inroads supplanting previously “in-house” delivered services. In the near-term, as cloud and hosted services continue to mature, organizations will continue to evaluate them as possible solutions to some of the issues identified above. As security concerns are addresses and workload mobility issues are resolved, organizations will find the mix of on- and off-premise technologies that work best for their unique business requirements. Bill Cassidy is vice president of technology at IT Partners. For more information, go to www.goitpartners.com.

in cancer research and for his impact on the treatment of patients with cancer.” Von Hoff is an internationally recognized physicianscientist who has contributed to the development of numerous anticancer agents. He also is the chief scientific officer of TGen Clinical Research Services at Scottsdale Healthcare and at US Oncology, and is a clinical professor of medicine at The University of Arizona College of Medicine. Each year through its Special Awards Program, ASCO recognizes quality researchers, patient advocates and leaders of the global oncology community who through their work have made significant contributions to enhancing cancer care. These recipients of ASCO’s highest, most prestigious awards collectively represent significant strides in cancer treatment and leadership in the oncology community.

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Far beyond the “computer rooms” of yesterday

TECHCONNECTmag.COm

Evolution revolution

After all, your application is now running in a provider’s highly-redundant, highly-available data center, right? Even these types of providers have unplanned outages however rare. The real concern, though, is the organization’s own connectivity situation, including private circuits and Internet access. If you move an on-premise application off-premise to “the cloud“ or a hosted service, and your network connection to that location is disrupted...well, it won’t really matter to your users that the application is up and running at that point. Other challenges need to be overcome in a cloud-based or hosted server environment as well, including addressing regulatory and compliance requirements and tackling integration issues between applications that may be hosted by different providers.


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Find out what people are saying about Chuck Vermillion.

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their data center and technical management capabilities. “I recognized there was a niche for an outsourcing service provider who could deliver enhanced services, highly developed skill sets, and superior IT delivery and operations,” he says.

Chuck Vermillion builds on opportunities WRITING BY :: DON RODRIGUEZ

or Chuck Vermillion, chief executive officer and founder of the award-winning OneNeck IT Services, the road to the front office began early. Even as a child in the Midwestern farming community of Philo, Ill., his entrepreneurial roots had him planning his own businesses— paper route, lawn mowing service, maybe even a restaurant where he could make sure his family could get their own cooked-toorder breakfasts. Vermillion’s drive stemmed from lessons learned from father Joe, a sheet metal worker, and mother, Mary Grace, a vice president of a community bank. “My parents… taught me every lesson I needed to know to be a CEO,” he recalls. With the seeds planted, he attended the University of Illinois, receiving his bachelor’s in accounting and later becoming a certified public accountant. After graduation, he went to work for Ernst & Young in the firm’s St. Louis office, first as auditor before transferring to consulting. Then came the spark. While with one of his largest clients, McDonnell Douglas, he was the point person for enterprise resource planning, or ERP, implementation. “I found information technology, and specifically, to be a key component in strategic planning. I

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envisioned its future growth as companies moved towards more sophisticated technology systems to manage their operations,” he says. He later served as IT director at an advanced materials manufacturer. That brought the experience when data hosting and its related issues became part of his life.

Don’t listen to naysayers, and trust your gut—after all, it’s your company. - Chuck Vermillion, to entrpreneurs entering the technology market “I had to make the decision to build one or outsource the hosting of our new servers,” Vermilion says. He opted for the latter. “I saw a need at our company and quickly learned that there was an unmet market need,” he says. When he heard the news his employer was being sold to one of its largest competitors, he made his move. He talked with the same outside hosting company about building ERP implementation capabilities around

+ GET CONNECTED www.oneneckcom

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Data Driven

That was 13 years ago. Hiring the best people he could find, he grew OneNeck to today’s roster of more than 225 employees. “This translates into more jobs within Arizona, which is an objective that is very near and dear to my heart since this is where I call ‘home,’” he says. Vermillion encourages others coming into the market to “chase their dream, but be prepared to work very, very hard. Don’t listen to naysayers, and trust your gut—after all, it’s your company. Finally, pray for good luck! Lots of really good companies have folded due mostly to bad luck.” Luck has been on his side. OneNeck was named No. 1 computer consultant in the 2010 version of The Phoenix Business Journal’s Book of Lists. The company also has been selected by the independent Black Book of Outsourcing as the No. 1 mid-market service provider of ERP and hosted application management for a number of years. And Vermillion himself was named the Ed Denison Business Leader of the Year at last year’s Governor’s Celebration of Innovation sponsored by the Arizona Technology Council and the Arizona Department of Commerce. “I believe these recognitions help shine a light on Arizona as a leading provider of IT services and will guide IT professionals to consider making Arizona their home.” For Vermillion, there’s more to accomplish. His company’s goal is to be the first mid-market ERP outsourcing firm to reach $50 million in revenue. To help get there, plans call for acquisitions, additional applications, additional data centers and new market locales. But it all still boils down to one thing: keeping clients happy. Vemillion has a simple question he asks them on occasion to make sure that happens: “After having worked with us all of these years and knowing then what you know now, would you have still selected OneNeck as you outsourcing services provider?” He says,” I’ve yet to get a ‘no’ to that question.”

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VIDEO COURTESY OF ONENECK

Simply the Best


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– Rick Crutchley of CoreLink Data Centers

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Innovation NATION STORIES BY :: DON RODRIGUEZ

New ideas and products are byproducts of business

ost people hear the term “data center” and think of rows of servers in a cold, nearly sterile environment that only the IT guys at your company care about. Same old place doing the same old thing. No new innovation really affecting you, right? It’s something for your 9-to-5 life. Think again. If you use your personal computer or smartphone first thing in the morning to track what happens to your deposits and investments, you need a data center. If your kid spends free time at night playing online games with someone in Asia, your kid needs one. And it’s not just PCs and laptops. The popularity of devices such as iPhones, iPads, Android phones and others directly increase the need for data centers, says Kindra Martone, senior vice president/ general manager for i/o Data Centers. “The rapid adoption of Internet-connected devices, which are actually data center-connected devices, drives the need for new data center capacity,” Martone says. “The by-product of this unceasing level of innovation is increased demand on existing computer hardware and the regular need to increase capacity,” adds Chris J. Crosby, senior vice president of corporate development for Digital Realty Trust. “Data centers are the foundation that enables this unparalleled level of growth to continue transparently to the users of these new technical capabilities.”

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MORE EFFICIENT The quest to satisfy customers has led to residual benefits, too, in the form of efficiencies. Legacy data centers are unable to handle the increased power usage per rack, Jordan Jacobs, director of corporate strategy for NAP, points out. For example, 100 racks using 3 kW vs. 10 racks using 10 kW translates into 30 percent less power being used and a 90 percent reduction in floor space. Maximum use means a smaller footprint. “When a customer realizes that an outsourced facility can handle the increased power cost, they can reclaim the

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and engineering of new data center products, Martone says. An example of their efforts is the company’s patentpending ThermoCabinet®, a high-density cabinet capable of supporting up to 32 kW of IT load. It provides vertical space for about 6½ feet of completely sealed computer enclosures and rack cabinets with internal cable management and up to 2,500 watts per square foot of conditioned, uninterruptible power. The ThermoCabinet® offers customers complete privacy and the ability to displace the need for a caged environment, she says.

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All roads for innovation seem to go through data centers these days. Everything is becoming virtual. Our heads—and the rest of us, it seems—are in the clouds. “Cloud computing is by far the biggest change to the infrastructure,” says Hunter Bennett, vice president of managed hosting division for OneNeck IT Services. Whether you recognize it or not, things are changing at a dizzying pace. “The rate of new computer-based application development today is geometric,” Crosby says. Rick Crutchley, vice president channel sales at CoreLink Data Centers, says the market for data center services has changed dramatically since the time Y2K was on everyone’s lips. Ten years ago centers required consistent capital expense investment for alreadystretched IT budgets. But as IT evolved from a cost department to a business-enabling department, Crutchley says, companies began using their data center environments to generate revenue and reduce costs through automation and other technologyenablement functions. Add to that company Web sites began helping companies generate sales through e-commerce and leadgeneration tools. “As more companies turn to online revenue-generating applications, this makes the data center critical to the company revenue growth,” he says. To handle the new demands, center owners and operators have turned to their own innovations. For example, at i/o an entire team is dedicated to the innovation


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We are now able to accomplish in one physical rack what took an entire row of racks just five years ago.

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–Hunter Bennett of OneNeck IT Services floor space and staff,” he says. “We are now able to accomplish in one physical rack what took an entire row of racks just five years ago,” Bennett says. “We are reducing the physical infrastructure dependency by 80 percent with cloud computing and virtualization.” i/o’s On-Demand eliminates the customers’ need for staff required to maintain the physical hardware in the IT environment, Martone says. Corelink’s industry-leading power usage effectiveness enables customers to deploy at costs that are up to 20 percent cheaper without giving up reliability, Crutchley says. Both also can charge for their services in smaller increments depending on customer needs. “The best part about delivering a highly reliable and available data center is customers can focus on growing their core business,” Crutchley says. Some providers have turned to innovative services in addition to new technologies. At OneNeck, its vertical service provider assists enterprises in the utilities, energy trading, and petroleum refining and marketing industries with transforming their business models to digital performance, Bennett says. Crutchley says Corelink has the most flexible collocation offering in the industry.

From contract terms to packaged services to simplified pricing models, customers can leverage at the various stages of their business growth cycle. At Phoenix NAP, a company of any size gains the ability to compete with the big boys, says Jacobs. A customer using as little as a quarter rack of space there can tour customers, use conference rooms, and take advantage of Phoenix NAP’s other amenities to help create an enterprise-type environment for business. “Just the fact that we offer down to a quarter-cab customer to go direct to us is a huge deal that is not typical of a large multi-tenant facility,” adds Ian McClarty, Phoenix NAP’s president. What’s next for the industry? The forecast depends on your source. Crutchley: “The next big boom will be the next generation virtualized computing platforms that leverage the data centers and network to render the geographic location of the data center moot. This natural progression will enable virtual platforms to be meshed together, provider-independent much like the Internet is today, and enable customers to route their compute demand based on either the end user experience/ performance need or to the lowest cost location. The data centers that have solid connectivity and the best power/cooling

efficiency will be positioned to win the majority of this business.” Bennett: “Higher-speed WAN connectivity and a significant focus on zero carbon emissions for data centers. Don’t be surprised if we see some sort of tax to nudge the industry. It wouldn’t take much though; the industry seems to be way ahead of any regulatory body pushing for this.” Martone: “Nobody will ever build another data center less than 20 MW for a single enterprise to own and operate. Outsourcing is the wave of the future. i/o expects continued growth and expansion to additional geographies to service its customers’ and prospects’ growing demand.” Jacobs: “Data centers will start to rent racks full of servers as the hardware moves to become part of facilities.” McClarty: “I think there will be an easier migration from straight collocation solutions to more of an infrastructure-as-a-service model, where clients will outsource space, power and equipment to service providers specializing in IT and data storage solutions.” The future is closer than you think. + GET CONNECTED www.iodatacenters.com/

www.corelink.com

www.phoenixnap.com


hy Arizona? In particular, why are data center owners and operators so interested in the Phoenix metropolitan area as the place to host a growing amount of data that needs to be kept somewhere. Risk & Insurance magazine ranked Phoenix No. 2 when it comes to safe metro areas of more than 1 million people for the centers. (Rochester, N.Y., was at the top of the list.) The publication’s reasons included low risk for terrorism and natural disasters, such as hurricanes, earthquakes and winter storms. While terrorism wasn’t coming up among their reasons, most center representatives in the Valley questioned for this issue of TechConnect cited the lack of natural disasters as key to their decisions to set up shop here. No disaster translates into less chance for outages. “Seventy percent of all power outages are caused by weather,” says Jordan Jacobs, director of corporate strategy for NAP. “Every time you lose power you need to use your backups, putting more stress on the backup systems in place.”

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Other reasons in order of most mentioned were: Low utility costs – Power generation consists largely of hydroelectric and nuclear sources, says Kindra Martone, senior vice president/general manager for i/o Data Centers. Arizona is one of the nation’s largest exporters of utility power, she adds. Connectivity – In addition to high concentrations of electrical power, firms want to locate their facilities in areas with plenty of fiber optic cable to provide multiple alternatives for Internet access, says Chris J. Crosby, senior vice president of corporate development for Digital Realty Trust. “The Phoenix area possesses both of these attributes,” he says. Location – “The close proximity to Southern California without the natural disasters California can suffer makes Arizona an excellent location for data centers,” says Ian McClarty, Phoenix NAP’s president. Also, all major air carriers provide service from Phoenix Sky Harbor International Airport, he says. Tech Connection – There is good availability of technical resources for relatively

–Jordan Jacobs of NAP low cost, Martone says. Also, the labor force supports the needs of technology, Jacobs says. Lower Costs – Real estate is cheap and plentiful in Arizona due to the economic downturn, says Hunter Bennett, vice president of managed hosting division for OneNeck IT Services. Arizona still has a relatively low cost of living, Jacobs adds. In a time when nearly everyone is looking for ways to save a buck as the economy recovers, the data center industry has been able to weather the country’s level of financial turbulence relatively unscathed, Crosby says. This is due to the continued growth of the transaction-based component of the international economy, he says. Bennett says, “We (at OneNeck) actually thrived in the down economy.” The shift in budgets and spending put a renewed focus on getting the best value from IT investments and this includes outsourcing as an option due to high capital costs and day-to-day management costs of setting up and running a data center, he explains. Martone adds, “Enterprises are now adopting the outsourcing model and leaving the design, build and operation of the data center to companies like i/o.” With money to be made, it would make sense that the competition will heat up. McClarty predicts the area will continue to grow into a major data center player to meet the market demands. Any fear of competition? “There is plenty of room for others,” Jacobs adds.

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Host of reasons why Arizona is place to be for centers

There is plenty of room for others.

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Popularity Contest


Plugged in Finding ways to make the most of energy options

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resident Barack Obama wants federal agencies to use their “purchasing preferences or other incentives” to encourage the adoption of products that minimize greenhouse gas emissions in their data centers. You might call it “executive order sustainability.” The pressure is already on. Public utilities already are reporting CO2 emissions on a time-of-use basis and they are being reported to state and federal agencies, says Rick Crutchley, vice president channel sales at CoreLink Data Centers. For example, kilowatt-hours consumed at noon will result in a different emission profile than those used at 4 a.m. It’s no surprise the focus would be on the centers as major utility customers in order to create ideal artificial climates for the facilities. Cooling is a big part of the energy costs for data centers, often accounting

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Outsource, outsource, outsource. Large scale facilities are significantly more efficient.

– Jordan Jacobs of NAP

for 33 percent to 40 percent of those costs, says Hunter Bennett, vice president of managed hosting division for OneNeck IT Services. For every kilowatt of power a server consumes, 95 percent to 99 percent gets changed into heat that must be cooled, notes Jordan Jacobs, director of corporate strategy for NAP. More specifically, most data centers require 800 to 1000 watts of cooling for every 1000 watts of load, Crutchley adds. “The costs associated with cooling a data center are real, but can be managed with the appropriate design and adoption of efficiency enhancing technologies,” says Kindra Martone, senior vice president/ general manager for i/o Data Centers. In turn, processes that are digitized produce less carbon emissions than their analog counterparts and data centers provide the infrastructure that enables this digitization to occur, she says.

ECONOMIES OF SCALE So big doesn’t necessarily translate into exorbitant energy use and emissions. Large, modern, commercial-grade data centers utilize the latest technologies and provide energy savings through economies of scale, Martone says. “Outsource, outsource, outsource. Large scale facilities are significantly more efficient than in-house centers,” Jacobs adds. To enhance energy efficiency, the process of air-conditioning now includes

high-efficiency cooling, variable frequency chillers, cooling towers, air handlers, ultrasonic humidification, and thermal energy storage, Crutchley says. At Phoenix NAP, for example, the chiller plants, bidirectional closed water loop, and computer room air handler units combine to provide more than 5,700 tons of cooling and circulate more than 1.6 million cubic feet of air per minute through the entire building with incredible efficiency, Jacobs says. Other examples being used by data centers in the spirit of sustainability are: Thermal energy storage allows i/o to shift a large portion of its electricity usage from “on peak” to “off peak” hours, which results in a significant average monthly savings, Martone says. Crutchley explains that making ice at night when energy is less expensive and storing it for use during the day when energy is most expensive helps reduce energy costs. By allowing the ice to melt and cool the water, data centers are able to reduce the energy they consume from the utility grid, which saves money. In addition, thermal energy storage enhances reliability by providing backup redundancy for cooling systems, he says. By allowing data centers to run equipment under optimal load at all times, Crutchley says, variable frequency drives consume less energy. With variable frequency drives, providers like CoreLink can operate computer room air handlers and data center cooling systems much more efficiently. Heat exchangers allow companies such as i/o to use the ambient temperature to cool the chilled water for up to five months each year, which results in a significant average annual savings, Martone says. The big push is called “free air cooling,” which involves dumping all of the heat outside and cooling the datacenter from outside air, Jacobs says. While this does work, it leaves the facility open to problematic outside conditions such as volcanoes, storms and dust. Also, a facility as large as those operated by NAP could dump up to 2 million cubic feet a minute of air to the outside, which might leave a noticeable environmental impact, he says. Does this all sound pricey? On the surface, yes, but taking into consideration the size of the facilities, unit costs come into play. By doing things like using components specifically selected to service a defined area to enable them to use power most efficiently, a facility can be built out incrementally, says Chris J. Crosby, Digital Realty Trust’s senior vice president of corporate development.


The only way to truly reduce the carbon footprint is by being selective of your utility energy source. – Kindra Martone of i/o Data Centers CUSTOMER’S ROLE

The Players Background about the companies used as sources for these stories about the state of data centers. Owns, acquires, develops, redevelops and manages technology-related real estate in 27 markets throughout North America and Europe. Among their customers are more than 50 Fortune 500 companies in addition to leading media, financial services, communications and technology-based businesses. The former Republic/Gazette building in downtown Phoenix is now home to a three-story facility with more than 175,000 square feet of data center and telecommunications space. The site in the ASU Research Park in Tempe is 113,405 square feet. A facility in the Price Road technology corridor has 315,000 square feet. The center west of the Loop 101 between the Superstition Freeway and the Loop 202 has 79,446 square feet.

I/O DATA CENTERS The company has two sites that serve more than 150 customers from industries including Fortune 100, service providers, healthcare, manufacturing, retail, government, and financial services, i/o SCOTTSDALE has about 90,000 square feet of net useable raised floor. LexisNexis and Fender Guitar are served at this site. i/o PHOENIX has about 180,000 square feet of net useable raised floor space in its

Phase 1. CSAA, BMC Software and Mozilla are customers at this site. Phase 2 is under construction and will offer another 200,000 square feet of net useable square feet.

ONENECK IT SERVICES Owns and operates two data centers in the Valley. Besides technology firms, its centers have served industries in manufacturing, distribution, food and beverage, retail and packaged goods.. The Tempe site has 10,000 square feet of raised flooring. A facility in Gilbert has 14,000 square feet. Company officials are planning to add an additional facility that can provide comprehensive disaster recovery for customers. Plans also exist for expansion into other locations in the region.

PHOENIX NAP Located near Phoenix Sky Harbor International Airport but free from any flight or runway paths. Approximately 148,000 of available raised-floor data center space serves a variety of industries and positions itself to help small and mid-size organizations up to enterprises.

+ GET CONNECTED www.digitalrealtytrust.com www.iodatacenters.com/ www.oneneck.com www.phoenixnap.com

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DIGITAL REALTY TRUST

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Even if a company is a data center user and not an owner, this doesn’t mean the customer needs to be passive when it comes to meeting its own mission of sustainability. Data center designers are investing heavily in zero carbon emission footprints, Bennett says, and it is important to select data centers that focus on building “green” facilities and work towards a goal of environmental stability. Leadership in Energy & Environmental Design, or LEED, specifications developed by the U.S. Green Building Council define a number of requirements that must be used to enhance the sustainability of a site, Crosby says, and all of Digital Realty Trust’s centers are developed to these standards. Another consideration is where those centers get their power. Arizona features a large amount of hydroelectric and nucleargenerated electricity, both of which are carbon neutral when calculating actual production, Martone says. “The only way to truly reduce the carbon footprint is by being selective of your utility energy source,” she says. Crosby notes direct power consumption by a facility often is cited by many to evaluate ecological impact. The critics neglect to consider the benefits the centers deliver when viewed in the aggregated impact of the businesses and processes they replace. For example, more than 10 billion songs have been downloaded from iTunes, but, Crosby asks, how much waste and inefficiency does that represent in terms of CDs that had to be produced, packaged, shipped, and in many instances, ultimately discarded that has been eliminated by the ability of a user to tap into a server located in a data center to download the song they want? “In other words, the elimination of many of the processes and byproducts of the development of certain goods and services alone define the sustainability of data centers,” he says.


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TheFocus ::

EXPO 2012

Tech will be highlighted at fair planned to mark Arizona’s centennial n a setting resembling a World’s Fair, a proposed project designed to commemorate the Arizona centennial will showcase next generation technology, blended with ancient desert culture of the proud Pima-Maricopa Indians of Arizona. EXPO 2012 is envisioned with the theme of “Nature’s Wisdom and The Future” and melds the distinct interests of the Pima-Maricopa tribes’ with those of Arizona residents. “The fair is

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designed as a symbolic portal to the next 100 years and recognition of the significantly intertwined legacy of both Salt River and Arizona as innovative, industrious, and indomitable peoples,” says David Fordon, director-general of the EXPO Secretariat. Spearheading the project is the Solanna Group, a family-owned and operated economic development and land advisory/investment fi rm based in the Salt River Pima Maricopa Indian Community. The planned 10-month EXPO’s site is on 70 acres of the family’s


The fair is designed as a symbolic portal to the next 100 years and recognition of the significantly intertwined legacy of both Salt River and Arizona as innovative, industrious, and indomitable peoples.

Technology Showcase

EXPO 2012’s legacy will be in its showcased technologies that potentially could be applied to the master planned mixed use development proposed for the site after the fair closes. Examples of technological advances proposed for showcasing and their geneses include:

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property on the western boundary of the community at McKellips and McClintock roads. The Solanna Group is a family of Salt River and Gila River Pima tribal members. Efforts are underway to secure sponsors for the EXPO slated to open on Feb. 14, 2012, the day Arizona officially marks the 100th anniversary of its statehood. Serving as executive producer of the fair is John Drury, president and creative director of Scottsdale-based Ideality, Inc. In his more than 25 years with Walt Disney Imagineering, Drury worked on the creation of Walt Disney World and the Magic Kingdom, EPCOT, Tokyo Disneyland, and Disney/MGM Studios. Such expertise will come in handy in creating the various sectors that can actually trace their roots to traditions in the Native culture. Each pavilion will have a kid’s zone with a component to educate the public of the cultural and historical contributions of the Pima, or “Akimel Au-Authm” (River People), and the Maricopa, or “Xalychidom Piipaash” (People who live toward the water).

• Clean energy (solar power, hydrogen fuels, air cooling) with passive solar as genesis • Green tech (water reclamation and reuse, desert greening, recycling and conservation) with Native lifestyle as genesis • Global connectivity (cross-cultural communications, IT convergence, digital telephone, cable and wireless systems) with intertribal exchanges and language as geneses • • Robotics (the new industrial renaissance) with irrigation canals as genesis of technological innovation • Transportation (concept cars, light rail, space) with horses and canoes as geneses • Construction materials and techniques (structural stratiform system, recycled materials) with canyon and river villages as genesis • Entertainment (gaming; field sports, music events, themed attractions) with tribal games, festivals and dances, and storytelling as geneses The pavilions showcasing these disciplines will be housed in a structural stratiform system (SSS) of the future serving as the ecoarchitectural spaceframe. Multiple climate controlled tensile structures will be featured. Organizers are exploring ways to incorporate multiple environmental technologies into the SSS structure’s fabric, such as solar fi lm cells, water reclamation, satellite dishes, wireless receptors, wind turbines, and robotic shading devices. Another consideration is developing an innovative transportation in the form of a prototype people mover traveling on a guided elevated track serving to move EXPO guests throughout the pavilions. The people mover will be a demonstration of the latest transportation technology. In addition to the extraordinary exhibition of technological advances and international entrepreneurship, the EXPO will include live entertainment venues featuring music concerts, acrobatic troupe performances, touring dance shows, music festivals, special theme days, multimedia links to worldwide entertainment events, on-site rides and games, and a world’s food fair.

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–David Fordon, director-general of the EXPO Secretariat.


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Science and technology are the winners, thanks to foundation grants

t’s said numbers don’t lie. A study by Battelle adds up to good news for the state, thanks to the impact of Science Foundation Arizona (SFAz). In a survey’s grantees across all its programs during the fi scal 2007 through 2009 periods, its performancebased, competitive grant programs in R&D partnerships, technology commercialization and science, technology, engineering and math (STEM) talent advancement are demonstrating a growing record of success and tangible economic benefits. This was revealed in the study by Battelle, an international science and technology enterprise that explores emerging areas

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of science, develops and commercializes technology, and manages laboratories. With funds it receives from the state, SFAz has managed to leverage those dollars into a larger impact. For example, with the combined $77.6 million in state funding to SFAz during the three years, $50 million was invested in university and nonprofit research funding initiatives that resulted in an additional $152.8 million in industry match and non-state research funding raised in support of SFAz’s grant activities. That means for every $1 in state funding, an additional $3.06 from nonstate sources followed. This additional $152.8 million in industry match and non-state research funding represents new wealth brought into Arizona

by SFAz’s research activities, and has economic multiplier impacts on Arizona’s economy. These broader economic impacts occur because of the successive cycles of spending, earning, and re-spending that add to the economic base of Arizona from the new wealth brought here from SFAz’s leveraged funds. It’s worth noting the money has been spread throughout the state. In direct jobs resulting from SFAz funded research grants, 589 were located in Southern Arizona, 473 in Central Arizona and 89 in Northern Arizona.

Share the Wealth The leveraged funding from industry match and non-state research funding sources also


Northern AZ 204, 8%

VIDEO COURTESY OF SCIENCE FOUNDATION ARIZONA

Central AZ 1,085, 41%

Southern AZ 1,351, 51%

Total Employment Impacts (direct, indirect, induced) by Primary Region of SFAz Grant

SFAz-supported projects generate: • One patent applied for or issued for every $2.2 million in total university research funding generated over the past three years, well ahead of the three-year

Arizona university-wide average of one patent per $4.2 million in funding. • One license for every $17.0 million in total university research funding generated over the past three years, just behind the three-year Arizona university-wide average of one license per $13.9 million. Licensed technologies are products or processes sold for commercial use. • One new company start-up for every $11.7 million in total university research funding generated over the past three years, well ahead of the three-year Arizona university-wide average of one start-up per $100.9 million. For future generations, the seeds of talent are being planted. In STEM education activities, nearly 160,000 students and 2,900 teachers at the K-12 and community college level have been involved in SFAz funded education grants either directly or indirectly. Results of a survey of program quality ratings from both teachers and students conducted this year were very positive, with average ratings of 2.8 for teachers and 2.7 for students on a scale of 1 to 3, with 3 being the highest or “outstanding” rating. SFAz is also advancing the growth in top talent across STEM fields with support for 223 graduate fellowships for PhD students in STEM fields, for which research universities in Arizona have contributed another $7.3 million in university funds and tuition forgiveness.

+ GET CONNECTED www.sfaz.org

SCIENCE FOUNDATION ARIZONA CONTINUES TO MAKE STRONG PROGRESS. OVER THE PAST YEAR, ITS GRANT PROGRAMS HAVE SHOWN SIGNIFICANT GAINS ACROSS THE RANGE OF KEY OUTCOMES. THOSE PROGRAMS HAVE INCREASED: • Total funds leveraged by industry match or other sources by $43 million. In turn, increased leverage per dollar awarded by $0.88 to $3.06 from non-state sources for every $1 in state funding. • Direct jobs associated with the grants by 394 to 1,151. • Companies formed by 5 to 16. • Patents filed or issued by 34 to 84. • Technology licenses by 2 to 11. • Scientific publications by 407 to 760. • Graduate research fellows by 46 to 223. • Student involvement in STEM education programs (both direct and indirect) by over 78,000 to 160,000. • Teacher involvement in STEM education programs (both direct and indirect) by more than 2,200 to 2,900.

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were widely distributed, with $56.3 million in Southern Arizona, and $5.1 million in Northern Arizona. This is equivalent to additional indirect and induced job impacts from the economic multipliers associated with the leveraged funding raised of 762 jobs for Southern Arizona, 612 jobs for Central Arizona and 115 jobs for Northern Arizona. Over the longer term, SFAz’s programs that spur public-private research and development partnerships and technology commercialization throughout the State of Arizona will have even greater economic impacts through the private sector jobs created based upon new products developed and new start-up companies launched in Arizona. And the good news is expected to continue. The key measures to track whether SFAz’s grant activities are well-positioned to fuel future economic impacts for Arizona include publications of research results in peer-reviewed journals, patenting of intellectual property, licensing of intellectual property to industry, and the formation of new technology businesses. In each of these measures, SFAz is demonstrating a growing innovation pipeline. As of June 2010, the cumulative impact of SFAz’s grant activities generated 760 publications, 84 patents fi led and/or issued, 11 technology licenses in place, and 16 technology company formations in Arizona.

By the Numbers

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Science Foundation Arizona is attracting new industry, high-paying jobs and economic growth to Arizona through strategic research investments in science and technology.


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nts. Can they possibly be good for anything more than ruining a picnic? Stephen Pratt thinks so. “They’ve been exposed to millions of years of evolution,” says Pratt, an ant researcher and professor at Arizona State University’s School of Life Sciences. “We have pretty good reason to expect that evolution has been a very stringent designer to make these things work well, to make them maximize fitness. We want to take advantage of the power of natural selection to fi nd really effective solutions to problems.” Pratt says studying ant decision-making helps us “open up the black box” to understand what the mechanisms behind decision-making are. The goal is to make better decisions, and businesses are already taking advantage of what ants know to improve speed and productivity. For example, Southwest Airlines is using ant-based algorithms at Phoenix

There are a lot of things about social insects that really appeal to engineers. – Ant researcher Stephen Pratt

Sky Harbor Airport to get planes to available gates faster. The program was so successful that Southwest is now applying ant algorithms to the ticketing and checkin process. Now Pratt is applying his knowledge of ants to robotics. He became involved in robot research when he was trying to solve a problem he had in his own lab. Some of his experiments require him to track the behaviors of multiple ants in a group. He and his colleagues painstakingly mark each ant with paint using a “brush” made from a single hair. They take videos of the ants in action then go through the recordings to analyze what each ant is doing. Analyzing all that data is extremely time-consuming. Pratt has been working with engineers at the Georgia Institute of Technology to automate the process. They are developing programs that can automatically infer what the ants are doing in certain situations. This could include where the ants go, with whom


VIDEO BY DAN WANDREY

smoothly. They rotate around obstacles and maneuver over uneven ground, even though they can’t yell, “Hey, slow down!” or “Stop pushing so hard!” Pratt and his colleagues are trying to figure out how the ants work together so well. They have devised a fake “fig” that is really a force sensor. Each arm of the sensor can detect the amount and direction of pressure placed on it. By coating the sensor with fig juice, the researchers entice the ants into picking it up and carrying it back to the nest. “They’re really very dogged. If it smells good, they really, really want it,” he says, adding that he rewards them for their hard work after the experiment with a piece of real fig. The work will help robots work better together. If the idea of robot squadrons sounds too much like science fiction, consider British Petroleum used a fleet of robotic submarines to do work 1,500 meters under water in an attempt stop the flow of oil from the exploded rig in the Gulf of Mexico this year. And NASA has placed robotic rovers on the surface of Mars to help us learn about the Red Planet. Who would think the next great idea could come from the most unwelcome picnic guest?

Diane Boudreau is editor at the Knowledge Enterprise Development department at Arizona State University.

+ GET CONNECTED www.sols.asu.edu

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they are interacting, and whether they are exchanging information by “antennating.” Pratt says, “There might be hundreds or thousands of interactions like that over the course of a few hours.” The Georgia Tech engineers want to use similar technology to track groups of robots. Robot teams can be used to do work, especially in places that humans can’t, such as under the sea or in a minefield. “There are a lot of things about social insects that really appeal to engineers, like the fact that they don’t require a leader and the fact that they’re robust to disturbances. If a few ants get lost from a colony, the colony can rapidly adapt and continue to function normally,” says Pratt. “Also, they don’t require really high-quality continuous communications from one ant to another.” Pratt is also working with engineers at the University of Pennsylvania to help robots solve a problem that a group of ants has already mastered: collective transport. Aphaenogaster cockerelli are the cowardly lions of the ant world. These desert ants are big and scary looking, but they can be intimidated easily by their much smaller competition. When the A. cockerelli and their smaller counterparts find the same piece of food, the former don’t stick around to fight it out. Instead, they hoist their treasure and run away with it. What’s amazing about these ants is how well they carry their cargo together. If you’ve ever tried to move a couch with another person you know just how hard it is to coordinate this kind of motion. A. cockerelli carry things in much bigger groups, and they do it quickly and

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Ph.D. biology student Adrian Smith studies chemical communication among desert-dwelling ants.


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NAU plans for campuswide carbon neutrality by 2020

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Heather Farley, coordinator for NAU’s Office of Sustainability, discusses NAU’s climate action plan.

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orthern Arizona University has rolled out it Climate Action Plan 2010 to ensure the university stays on course in its path to achieving NAU President John Haeger’s call for carbon neutrality by 2020. The Climate Action Plan targets seven areas to be addressed—academics; research, energy and climate change; operations; procurement; recycling and waste minimization; transportation; and water. Specific goals range from the inclusion of sustainability in curriculum to reducing emissi ons to fi nding fi nancing mechanisms. “NAU’s climate action plan is a strategic plan that will help guide the university’s sustainability initiatives over the next decade,” said Heather Farley, coordinator in the Office of Sustainability. “The plan is being used in conjunction with

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the STARS—sustainability tracking and assessment rating system—initiative to help propel our efforts and educate our NAU community about where we stand as a sustainable institution.” The Climate Action Plan was drafted by committee members who came from the Environmental Caucus and worked over the course of a year to create the plan with additional help from university marketing. “This is a major step toward reaching our carbon neutrality goals and we are excited to build on the momentum that this plan creates,” said Farley. In 2007, Haeger became a charter signatory to the American College and Universities Presidents Climate Commitment. One of the requirements involved in demonstrating commitment is development of a Climate Action Plan. The university is working to develop a culture of sustainability. Many positive

steps have already been taken, including: Academic programs emphasizing sustainability and the environment that have been developed and made available to students in both undergraduate and graduate degree areas. All light fi xtures have been converted to electronic ballasts and T-8 lamps. The university has made it a standard for all new construction to meet LEED Silver criteria at minimum. Campus dining composts over 200 pounds of food a week and donates waste oil to transportation services for conversion to biodiesel, which is used in campus buses. There is still more work to be done as the university strives to achieve 2000 carbon levels by 2014, 1990 carbon levels by 2018 and carbon neutrality by 2020. Nearly every department will be affected with its own plans.


Academics 1. Embed environmental sustainability issues across the curriculum. 2. Prepare students to compete in the green economy. Maintain and develop disciplinary and interdisciplinary

Water 1. Reduce the annual use of potable water per square foot of building space by 20 percent by 2015 (using 2002 as the baseline year).

NAU’s climate action plan is a strategic plan that will help guide the university’s sustainability initiatives over the next decade. –Heather Farley, coordinator in the Office of Sustainability

2. Develop ways to make water consumption data available to users.

Recycling and Waste Minimization 1. Create a zero waste campus. 2. Improve the utilization of Property Surplus Services on campus, encouraging reuse across campus. 3. Promote the “move-out” donation program in the residence halls. 4. Create a graduate assistant position responsible for recycling and waste minimization initiatives.

Transportation 1. Decrease greenhouse emissions from commuting each year. 2. Reduce campus fleet emissions each year. 3. Develop a system to centrally track all air travel. + GET CONNECTED To view the entire plan. go to http://www4. nau.edu/insidenau/bumps/2010/6_23_10/ ClimateActionPlan.pdf

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1. Enhance and maintain the university’s emphasis on environmental and sustainability research and graduate education. 2. Increase the university’s impact on environmental and sustainability research through increased publication and outreach activity. 3. Promote the university as a responsible sustainable organization with experience in and commitment to sustainable practices. 4. Maintain and expand the opportunities for undergraduate and graduate student research and for student engagement in off-campus environmental and sustainability activities.

programs in environmental sustainability. 3. Partner with the community to provide opportunities for students in the green economy (in concert with Research, Goal 4).

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Research


Capitol Watch

Our state’s top business leaders, university presidents and policy makers will be engaged in a stronger, more-focused approach to economic development for Arizona.

One of a Kind

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This model is unique to Arizona; it’s designed to meet the needs of the state and the industries critical to our future. As the Arizona Department of Commerce transitions into a quasi-public state authority borrowing best practices from economic models around the globe, all of Arizona wins.

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Arizona’s recovery demands we look at both short-term and long-term solutions.

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Arizona Comeback

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Advance state’s economy, competitiveness

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WRITING BY :: GOV. JAN BREWER

made a promise when I took this office: to get Arizona back on track, to create quality jobs by attracting high-growth industries, and to advance our competitive position in the global economy. While our state’s massive budget deficit has clearly been center stage, strategically I have been focused on the future and how we bring Arizona back to its prosperous times so we can ensure it is stronger than ever. For decades, Arizona’s rapid population growth has shrouded its uninspiring performance in building a strong

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foundation of base industries necessary to weather turbulent economic times. When the housing bubble burst and growth stopped, it quickly became apparent to everyone how ingrained our economy had become in the construction and financing of new homes. Yes, Arizona needs short-term fi xes for its current economic woes, but more critical is to be certain we are focused on rebuilding for the long-term with consistent strategies. That is why I hired Don Cardon as director of the Arizona Department of Commerce and established the Arizona Commerce Authority by executive order on June 29.

One of the board’s fi rst steps will be to hire a president and CEO and give the successful candidate a performance-based contract, ending that revolving door on the Commerce director’s office. This new authority will be required to demonstrate a return on state dollars invested into the organization. Arizona’s recovery demands we look at both short-term and long-term solutions. The passage of Proposition 100 will help our state address immediate needs. And our new model for economic development will build a stronger foundation so our children and their children can avoid the difficulties of the recession from which we are now recovering with the Arizona Comeback. + GET CONNECTED www.azgovernor.gov www.azcommerce.gov


Capitol Watch

critical early years when they are developing products but don’t generate profits. Venture Capital (VC) is often the major source of early-stage funding, but Arizona ranked 39th in growth in VC investment from 2002 to 2008, according to a 2009 Milken Institute report on Arizona high-tech development. By modifying Arizona’s existing R&D Tax Credit legislation to allow for the discounted refund as opposed to strictly a tax credit, SB 1254 puts cash in the pockets of entrepreneurs who often are trying to move from research to prototyping and limited production. In return, the state

WRITING BY :: LINDA CAPCARA

halk up another victory at the state Capitol for Arizona’s technology community with approval of a measure that modifies the state’s research and development tax credit. By offering taxpayers that employ less than 150 full-time employees a discounted refund of 75 cents for each dollar of a research and development tax credit already earned, the legislation known as SB1254 has the affect of providing small technology firms access to much-needed capital for fostering job creation and global competitiveness. The bill was signed by Gov. Jan Brewer in early May. Total refunds for all taxpayers are limited to $5 million per year. “This legislation is good public policy

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that rewards small innovation-based companies for their investments in R&D and allows them to create high-paying, high-quality jobs in Arizona,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council. Zylstra praised legislators for their efforts, especially champions Sen. Barbara Leff and Rep. Lucy Mason for working with the Council to direct the legislation successfully through the process. “Senate Bill 1254 was truly one of the most important pieces of legislation we produced this session,” says Leff. “This tax credit will ensure that Arizona remains competitive in attracting fast-growing, hightech companies” Access to capital is the lifeblood of hightech startup companies, especially in the

actually reduces its liability by applying the 25 percent discount to its accrued tax credit obligation. “In many ways this legislation is really a capital formation initiative,” says Howard Stewart, president of AGM Container Controls, who testified in favor of the legislation. “Arizona has become creative in how it is mobilizing funds in the private sector to grow our economy.” The R&D tax credit is widely successful in Arizona, especially since its expansion in 2007. According to recent data from the Department of Revenue, 161 individual taxpayers claimed $2.6 million in credits in 2007 while 185 corporate taxpayers claimed $43.8 million. The R&D tax credit law has spurred economic development and innovation for both large and small companies. Evidence of success is demonstrated by Intel’s announcement in 2009 of their $3 billion investment in Chandler, reported to be partly due to Arizona’s R&D tax credit.

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Governor signs measure to provide discounted refund of R&D tax credit dollars

– Sen. Barbara Leff

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Keep the Change

Senate Bill 1254 was truly one of the most important pieces of legislation we produced this session.


SPONSORS: We Proudly Present

arizona Technology Council’s sponsors THANKS TO THEM, WE CAN SERVE OUR MEMBERS BETTER.

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PlatinumSponsors ::

VisionarySponsors ::

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Creative ENGINE

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FOR MORE INFORMATION ABOUT SPONSORSHIP, CALL THE ARIZONA TECHNOLOGY COUNCIL AT 602.343.8324.


NEW MEMBERS:

BLS Communications S.W. is a technology solutions company providing businesses with “Best in Class” voice, data and wireless products as well as hosted/managed VoIP offerings. Its team designs, installs and services the latest scalable IP/SIP/VoIP telephony products for mid-size, large and enterprise business. It specializes in Contact Center design and implementation. www.blswebsite.com

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. www.americanexpress.com

Bulbstorm is a leading provider of online innovation communities and marketing platforms with the mission of facilitating collaborative innovation between companies and their customers, partners and employees. Its technology and expertise power innovation on social networking sites and in custom communities built upon the patent-pending technologies fueling Bulbstorm.com’s growth. www.bulbstorm.com

The Arizona Broadcasters Association serves all free over-the-air radio and television stations in the state with the mission to serve, educate and protect local broadcasters. It also manages the ABA Foundation, a non-profit charitable corporation supporting Arizona Amber Alert, the High School Broadcast Institute at Arizona State University and the Native American High School Workshop at Northern Arizona University. www.azbroadcasters.org

Cactus Custom Analog Design is a fabless semiconductor company offering full turn-key product design and production as well as integrated circuit design services, circuit and physical design. Its expertise in power management and analog circuits finds value in products targeted toward medical and portable applications. The company also provides feasibility studies and specification development. www.cactusintegratedcircuits.com

With an approach that combines aggressive smarts and dogged coalition building, Arizona Governmental Affairs gets results. For a decade, Gretchen Jacobs has been eliminating legislative confusion and creating order for clients from IBM to Cisco, Symantec to Deloitte. Gretchen’s fine not getting the spotlight and not making much noise, so long as she gets done what your business needs. Not that she complained when Arizona Capitol Times named her one of its Legislative Leaders of the Year. www.azgovaffairs.com

CD-Lab, founded in 1998, specializes in every aspect of CD/DVD/BluRay media. From in-house duplication services to representing top hardware and media manufacturers, it offers solutions for anyone using optical discs for storage or distribution. www.cd-lab.com

Located at Tucson International Airport, Ascent meets the stringent demands of aviation customers worldwide. It FAA- and EASA-approved repair station specializes in narrow body commercial aircraft and performs aircraft heavy maintenance, line maintenance, modification services, transition services, aircraft storage, paint, disassembly and consignment parts sales. A highly committed management team of industry veterans works closely with experienced technicians to deliver the highest quality service. www.ascentmro.com Avirtek’s products can self-manage and selfprotect network resources and applications with

Chief Security Officers, LLC is a professional services firm that supplies regulatory compliance, audit, security, eDiscovery, forensics, and business continuity services to companies of all sizes, both nationally and internationally. Its name reflects the fact it supplies interim chief security officers to companies and performs projects that are traditionally the responsibility of a CSO. www.chiefsecurityofficers.com Coleman American Allied Van Lines is a family owned moving company that has been in business since 1914. With almost 60 service centers and more than 1,100 trucks operating throughout the nation and Guam, it is well-placed to assist with domestic or international relocations. With an extensive network of worldwide agents, the company can handle special commodities, storage, and office and industrial moves. www.colemanallied.com

Convergent EDM provides comprehensive consulting, software and hardware solutions for the creation of integrated document imaging and management systems. It has successfully implemented innovative process management solutions across all disciplines, including accounting, consumer and financial services, distribution, legal, manufacturing, title and real estate markets. www.convergentedm.com Embry-Riddle Aeronautical University is the world’s only aerospace-based university system, consisting of two residential and nearly 140 local campuses. The residential campus at Prescott serves nearly 2,000 students studying aeronautics, safety, engineering, global security, and a number of other professions. The campus is building partnerships with Arizona high schools to open Aerospace Institutes featuring early-college programs that will provide professional and technical workers directly to select industry partners in the state. www.erau.edu End-2-End Technologies is Arizona’s leading provider of low-voltage technology solutions, including voice and data cabling, video, intercom, fiber, security, alarm systems, access control, data backbone systems and data center solutions, fire alarm systems, clock systems, and audio-visual systems. The staff combines the best in technical and customer service skills to provide clients with the highest quality workmanship and service that well exceeds industry standards. end2endcomm.com Focused FX creates, transforms, and clarifies products in ways that enable sales and marketing to win. It helps others recognize and understand their unique value, then evangelize it clearly through innovative user experiences, smart positioning and streamlined processes. The company strives to provide businesses with extended and project-based options for outsourcing strategic and tactical leadership. www.focusedfx.com Scottsdale-based iGo is a leading provider of power-management solutions, including ecofriendly chargers for laptop computers, netbooks and mobile electronic devices. Its intelligent tip technology minimizes electronic waste by enabling one charger to charge almost every electronic device on the market. The new iGo Green Technology line automatically eliminates wasteful and expensive standby or vampire power. www.iGo.com Global Technology Engineering focuses on high-tech manufacturing, mission critical and R&D facilities. Power generation, water/wastewater, and environmental with sustainability is embedded in all projects. www.globaltecheng.com

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ActionCOACH is the world largest business coaching firm, with more than 1,000 offices in 26 countries. Its Tucson office is led by executives with more than 70 years of relevant business experience. ActionCOACH Solutions helps companies grow their business faster and increase their earnings at a significant rate by applying strategies and plans geared specifically for small- and medium-size businesses. www.actioncoach.com

little involvement by the users and administrators. Its security management techniques exploit autonomic agents, along with statistical and data mining techniques, anomaly behavior analysis, and intelligent decision fusion methods. www.avirtek.com

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Accurate Placement serves a variety of industries in office staffing, management and web developers. Accurate Placement works sideby-side with its business partners, identifying only the best and most qualified candidates. Its representatives meet personally with each new client and conduct an on-site assessment to understand the company’s unique requirements. www.accurateplacement.com


NEW MEMBERS: IT Silverbacks is a Scottsdale-based company helping nonprofit organizations and small businesses build capacity through innovation and transformation. Seasoned leaders bring the practical know-how and experience clients need with a knowledge transfer approach that demystifies complex business challenges and builds skills in your team. It offers consulting and advisory services, include capacity building, sustainability, value creation and the social enterprise. www.itsilverbacks.com

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Leathers Milligan & Associates – OI Partners is a Phoenix-based, global organization providing talent development, talent acquisition, workforce planning and outplacement services as well as merger and acquisition and closely held/ family business consulting. With a global team of more than 2,500 professionals serving clients from more than 200 worldwide offices, the firm is the right choice as a partner for talent management solutions. www.leathersmilligan.com

Level 3 Communications is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on the firm to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Its portfolio of metro and long-haul services include transport, data, Internet, content delivery and voice. www.Level3.com.

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Lee & Associates is the premier commercial real estate brokerage firm in the Phoenix metropolitan area. Services include property sales and leasing, corporate and tenant representation, landlord representation, land sales, consulting services and market research. Lee & Associates group is the largest regional commercial real estate services provider in the United States. www.marctpierce.com

NanoVoltaix designs, manufactures, sells and services capital equipment for the renewable energy industry, and also develops associated process technologies. The company’s core strength is the identification of high-impact innovations in an early development stage, taking these innovative technologies out of the lab environment and scaling them up for commercial volume production applications. www.nanovoltaix.com R. E. Darling Co. is a manufacturer of specialty elastomeric and composites products serving aerospace and defense, mining, and other industrial markets. www.redarling.com Redhorse Corp. is an integrated solutions provider with expertise in environmental consulting, energy and climate change services, and wireless communications and networks. It integrates information and technology with analysis and behavior to improve decision-making, optimize operations, reduce risk and help customers in utilities, heavy industries, private sector and government agencies achieve performance goals. www.redhorsecorp.com Research Corporation for Science Advancement is an active, hands-on foundation that stimulates advances in science. Its role is catalytic rather than controlling, with a mission of partnership rather than ownership. The foundation readily adapts to new situations and rapidly responds to new opportunities. www.rescorp.org Phoenix-based ScrapComputer.Com provides an environmentally safe and easy way to dispose of end-of-life computer and electronic equipment with pickups scheduled for the customer’s convenience. It also operates a generous asset disposition program if the equipment has residual value. All data is guaranteed wiped clean from computers collected. www.scrapcomputer.com

Mortenson Construction has distinguished itself in the construction industry by providing services based on its core values of trust, service, safety, responsibility, stewardship and teamwork. Mortenson operates as a diversified construction organization offering services in general contracting, construction management, program management, Design - Build, EPC/BOP/BOS, project development and turnkey development. www.mortenson.com

SOLON Corp. is a leading manufacturer of worldclass photovoltaic solar panels and developer of turnkey solar power plants for North America. As an expert provider of intelligent system solutions, SOLON controls all aspects of a project—from the modules, system design and construction, to the financing, operation and maintenance—always ensuring maximized performance and reliability, fast project deployment, and low investment risk. www.solon.com/us

Mountain States Employers Council is a not-for-profit employers association providing comprehensive employment law, human resources consulting, training programs, and salary and benefit surveys to organizations encompassing the public sector, private and non-profit employers representing a wide range of industries including technology, health care, service and manufacturing. It has 3,000 member firms, with offices in Scottsdale and Colorado. www.msec.org

TechBA Arizona is a business accelerator program that supports technology-based Mexican businesses in their efforts to enter global markets. It hosts more than 30 companies from technology sectors, including aerospace, biotechnology, logistics, information technology and renewable energy. www.techba.com Tech One IT finds precisely the right IT talent for results-oriented hiring managers who value strong

relationships with their talent supply partners. It provides clients with the opportunity to expand or cut back IT resources in order to mitigate the risks of rapidly changing technologies in an unpredictable economy. www.techone.com Thunderbird School of Global Management in Glendale is the world’s No. 1-ranked school of international business with more than 60 years of experience in developing global leaders. It offers a wide range of management graduate degrees and certificate programs for full-time students, working professionals, distance learners and companies, including the highly ranked Executive MBA and a comprehensive suite of executive education programs. www.thunderbird.edu UNIFI Companies—Ameritas Life, Acacia Life, Union Central Life and affiliated companies— offers a wide range of insurance and financial products and services to individuals, families and businesses. The organization’s financial strength and stability are reflected in strong financial ratings from independent analysts. It is operated and maintained for the benefit of its members and policyholders. www.unificompanies.com Vircon is a technology solutions and enterprise strategic-staffing company that works with clients in a variety of industries, from start-ups to Fortune 100 companies. It has gained a reputation for developing quality IT applications built on a solid foundation, and has since expanded to offer full life cycle solutions, infrastructure development, information security/compliance and contingent staffing resources. www.vircon.com Wallace, Plese + Dreher is dedicated to facilitating and helping clients and associates fulfill their aspirations and dreams while reducing uncertainties in managing their businesses. The firm offers professional expertise in all matters of taxation, audit and assurance services, business formation, mergers and acquisitions, and other consulting services. www.wpd-cpa.com Valley of the Sun YMCA’s goal is be the premier partner of choice for solving community problems. Collaboration with a multitude of agencies and organizations allows it to integrate through off-site locations and existing YMCA branches the programs and services that will make the community stronger. www.valleyymca.org Z•Escent is a pioneer in the employee wellness and profit enhancement arena. Its Vacation Wellness™ Employee Benefit Program is a simple approach to workforce performance and health improvement, with powerful healthcare and turnover cost reduction effects. The program directly targets employee stress, which contributes to causes of workforce health risk and mortality, and reduces the risk of depression, the costliest employee health issue. www.zoescent.com


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The Network

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How much is That?

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From ‘kilo’ to ‘exa’--we’re surrounded by bytes

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t’s safe to say billions and billions of bytes pass through data centers. But what does that really mean to us? To give you a better sense, here are the estimated equivalents of bytes used in different types of media

2 kilobytes: a typewritten page 10 kilobytes: a page in an encyclopedia 100 kilobytes: a low-resolution photograph

Bytes

1,073,741,824 bytes 1 gigabyte: a broadcast-quality movie 2 gigabytes: 20 yards of books on a shelf 20 gigabytes: audio collection of the works of Beethoven 50 gigabytes: a library floor of books on shelves 100 gigabytes: a library floor of academic journals on shelves

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8 bits 1 byte: one character 10 bytes: one word of language 100 bytes: a telegram

Kilobyte 1,024 bytes 1 kilobyte: a joke

Megabyte 1,048,576 bytes 1 megabyte: a short novel 2 megabytes: a high-resolution photograph 5 megabytes: complete works of Shakespeare 10 megabytes: 1 minute of high-fidelity sound 50 megabytes: a digital mammogram 100 megabytes: 1 yard of books on a shelf or two encyclopedia volumes 500 megabytes: a CD-ROM

Gigabyte

Terabyte 1,099,511,627,776 bytes 1 terabyte: all the X-ray films in a large technological hospital 2 terabytes: an academic research library 10 terabytes: the printed collection of the U. S. Library of Congress 50 terabytes: the contents of a large massstorage system

Petabyte 1,125,899,906,842,624 bytes 2 petabytes: all U.S. academic research libraries 20 petabytes: 1995 production of hard drives 200 petabytes: all printed material

Exabyte 1,152,921,504,606,846,976 bytes 5 exabytes: all words ever spoken by humans

Source: James S. Huggins’ Refrigerator Door

+ GET CONNECTED www.jamesshuggins.com/h/tek1/how_big.htm


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TechConnect - Data Center Issue 2010  

TechConnect explores the region’s leading companies, under-the-radar change agents and the latest industry trends and issues propelling the...

TechConnect - Data Center Issue 2010  

TechConnect explores the region’s leading companies, under-the-radar change agents and the latest industry trends and issues propelling the...

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