WBC wants to retain the production design control and so needs collocation space that can be designed to its requirements. This is in part due to the security need of the company but with design control of production, they can also be assured of using the design that proves most productive.

All three providers provide the design flexibility needed by WBC. Building security As a web based company that will depend on reliability and uptime, safety of the equipment is very important.Although the possibility of physical espionage is minimal, there are also risks of accidental damage or weather damage to equipment by other tenants that make security vital. Provider 1 and 2 provided very adequate security, with tight manned and electronic/biometric security as well as reinforced buildings.

Provider 3, however, had very lax security to the point of worry. Almost anyone could have walked in on the day of the visit and cut wires.In addition, the facility is on the 3rd floor of an old warehouse that is not reinforced, with no guarantee of what will be located below. Provider 3 assures WBC that it will be fully secure in 6 weeks, but the extreme lack of security currently at Provider 3 makes them much more likely not to be chosen. Space offering All three hosting providers offer adequate space for WBC’s needs. As long as the equipment is vertically scalable no more space will be needed for increased capacity.

Of course, capacity may bottleneck at a given point but for our purpose each provider provides a sufficient environment. On a side note, Provider 3 is the only provider offering the right of refusal on adjoining spaces, giving further ability to scale to capacity needs (quite a consideration for a start-up with a fast burn-rate). Further, if we consider the variable pricing structures as detailed in the financial analysis we can see that the variable cost for Provider 1 and Provider 2 are much more than that of Provider 1.Recommendations We have analyzed the three hosting providers and compared them on the parameters that are essential for WBC. Table 1 shows a comparison of each provider on the critical parameters.

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Based on our assessment we recommend that WBC choose Provider 2. Implications of recommendations All parameter going forward will be of concern. That said, the implication of selecting Provider 2 is paying a higher price (running out of case a week or so sooner) in order to ensure a superior connection.