Cincinnati Bell 2012 Annual Report Download - page 84

CyrusOne is an owner, operator and developer of enterprise-class, carrier-neutral data center properties.
These data center properties are purpose-built facilities with redundant power, cooling and telecommunications
systems and are not network-specific, enabling customer interconnectivity to a range of telecommunications
carriers.
CyrusOne provides mission-critical data center facilities that protect and ensure the continued operation of
information technology (“IT”) infrastructure for over 500 customers. CyrusOne’s goal is to be the preferred
global data center provider to the Fortune 1000. As of December 31, 2012, their customers included 9 of the
Fortune 20 and 115 of the Fortune 1000 or private or foreign enterprises of an equivalent size.
CyrusOne cultivates long-term strategic relationships with its customers and provides them with solutions
for their data center facilities and IT infrastructure challenges. Its offerings provide flexibility, reliability and
security and are delivered through a tailored, customer service-focused platform that is designed to foster long-
term relationships. The business focuses on attracting customers that have not historically outsourced their data
center needs. CyrusOne believes its capabilities and reputation for serving the needs of large enterprises will
allow it to capitalize on the growing demand for outsourced data center facilities in existing as well as new
markets where its customers are located or plan to be located in the future.
As of December 31, 2012, CyrusOne’s property portfolio included 24 operating data centers in ten distinct
markets (Austin, Chicago, Cincinnati, Dallas, Houston, London, San Antonio, Phoenix, Singapore and South
Bend), collectively providing approximately 932,000 colocation square feet (“CSF”). CSF represents the net
rentable square feet at an operating data center facility that is currently leased or readily available for lease as
colocation space, where customers locate their servers and other IT equipment. As of December 31, 2012,
CyrusOne also had a data center under development in Houston and additional powered shell space in Phoenix
that was under roof and in development. In addition, CyrusOne had approximately 140 acres of land available for
future data center facility development. Its development properties and available acreage were selected based on
extensive site selection criteria and the collective industry knowledge and experience of its management team. As
a result, CyrusOne believes that the development portfolio contains properties that are located in markets with
attractive supply and demand conditions and that possess suitable physical characteristics to support data center
infrastructure.
CyrusOne’s portfolio includes highly efficient, reliable facilities with advanced cooling capabilities and the
security systems necessary to provide an environment suitable for some clients’ most vital technology
infrastructure. In its newest facilities, CyrusOne takes a “Massively ModularSM” approach to site selection,
design and construction such that it is able to deliver a range of power densities to its customers within a single
facility. Its Massively ModularSM design principles allow it to efficiently stage construction on a large scale and
deliver capacity in a timeframe that it believes is one of the best in the industry.
CyrusOne acquires or builds a large powered shell capable of scaling with customers’ power and colocation
space needs. The powered shell can be acquired or constructed for a relatively inexpensive capital cost. Once the
building shell is ready, CyrusOne can build individual data center halls in portions of the building space to meet
the needs of customers on a modular basis. This modular data center hall construction can be completed in
approximately 16 weeks to meet customers’ immediate needs. This short construction timeframe ensures a very
high utilization of the assets and minimizes the time between capital investment and the receipt of customer
revenue, favorably impacting return on investment while also translating into lower costs for customers.
CyrusOne’s design principles also allow it to add incremental equipment to increase power densities as
customers’ power needs increase, which provides customers with a significant amount of flexibility to manage
their IT demands. CyrusOne believes this Massively ModularSM approach allows it to respond to rapidly evolving
customer needs, to commit capital toward the highest return projects and to develop state-of-the-art data center
facilities.
CyrusOne’s expansion strategy focuses on developing new data centers in markets where its customers are
located and in markets where its customers want to be located. It regularly meets with its customers to
understand their business strategies and potential data center needs. It also conducts extensive analysis to ensure
an identified market displays strong data center fundamentals, independent of the demand presented by any
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Form 10-K Part I Cincinnati Bell Inc.