Information technology firm ProvDotNet LLC’s headquarters doesn’t look like much: A worn, red brick warehouse with few windows and even fewer decorative touches inside.
But Ron Sacks, managing partner of what is known in the industry as a colocation and managed-services data center, selected the site on Westminster Street in Providence’s West End for other, critical reasons.
Sacks says the thick brick walls and lack of windows make the building easy to secure, and the fiber optics that run past the address ensure speedy network connections. But the location’s big attraction was its reliable power source.
The property is on the same high-priority service feed as the Providence Public Safety Complex a short distance away. That means in a power outage, National Grid will ensure that’s one of the first that’s up and running again.
And in Sacks’ business, that’s important.
ProvDotNet’s main source of revenue is renting space in its data center to other companies – or “colocating” – that want their computer servers to take advantage of ProvDotNet’s unusual amenities and not have to worry about the costs of keeping them operational.
Part of what clients are paying for are redundancies to ensure that the servers continue running smoothly, whether through high-speed connections or an unfailing power supply or heavy-duty climate controls.
ProvDotNet has been up and running for more than a year and has about 40 clients, including telecommunications companies, software firms and manufacturers. Each rent cabinets in the 2,100-square-foot data center, a nondescript room filled with computer servers and miles of wiring.
One client is a Web-based business based in Arizona, but one of its technicians lives in Rhode Island so having the servers in Providence is convenient. Another client – telecom company T-Mobile – is renting floor space, 100 square feet.
Monthly rents can range from $300 to $30,000, depending on the amount of equipment and the services needed.
Right now, ProvDotNet has plenty of room to grow. More than half of the data center is empty, but Sacks predicts that it won’t stay that way for long, in part because of the location’s amenities. He predicts the center will be filled with new clients’ networking equipment within 12 months, and the firm already has an option to lease an additional 5,000 square feet in the same building.
Sacks should know what his clients want. A 30-year veteran of the information technology industry, he was serving as a consultant to a similar business that was located in the same building two years ago. When that company closed its doors, Sacks and three investors saw an opportunity.
When ProvDotNet got its start in March 2009, it agreed to provide services to several clients left over from the closed firm and used that base as a launching pad to recruit other companies. The firm has always been profitable, although Sacks acknowledges he hasn’t started taking a salary yet.
Still, being in the black so soon is saying something, considering the amount of money the four partners – Sacks says they want to remain silent – put into the business.
While declining to give annual sales or other financial information, Sacks says ProvDotNet invested hundreds of thousands of dollars in the infrastructure – specialized computer cabinets and an American Power Conversion high-volume cooling system. “Without it, this room would be about 115 degrees,” Sacks said of the data center.
And despite the reliable power feed, ProvDotNet has uninterruptible power supply machines that kick in instantaneously if the power goes down. The firm also has a backup generator, and a staff of several engineers.
“The nature of the business requires significant capital investment,” Sacks said.
That’s partially why businesses come to ProvDotNet in the first place. In the down economy, companies looking to cut costs or get technology products or services into the marketplace quicker and cheaper have turned to colocation centers.
“To build a facility like this would extend a company’s time to market by two to three years,” Sacks said.
Right now, ProvDotNet is one of the few firms in the region providing colocation and managed services, but Sacks says he’s not concerned about competition getting much stiffer.
“There are a limited number of available sites that offer the power, the bandwidth and the security we have,” Sacks said. “And they’re growing more scarce.” •
COMPANY PROFILE
ProvDotNet LLC
OWNER: Ron Sacks, managing partner
TYPE OF BUSINESS: Colocation and managed-services data center
LOCATION: 1155 Westminster St., Providence
EMPLOYEES: 5
YEAR ESTABLISHED: 2009
ANNUAL SALES: WND
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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