COVID-19 will redefine relationships between data centers and their clients forever

I've been thinking about many things for the past weeks - the safety and health of my family as my siblings, parents, children and grandchildren are literally spread across 4 continents in 4 hemispheres. I've thought about our medical, research and affiliated superheroes, who are waging this war, directly on the front-line, on behalf of the world's majority. I've thought about the many people who are still oblivious and their utter stupidity in their belief that they are not susceptible and, therefore, not required to practice the safest measures possible to stop or, at the very least, shorten this global nightmare. I've thought about the thousands who have already died, the many thousands more who are fighting for their lives - of which some will die - their loved ones who cannot even touch them, or just be near them, to give them strength, love and support. I've thought about the tragedy that is covering the globe like a dark, heavy, life smothering cloak.

Hospitals, clinics and care havens are all full. Hotels are being used to triage and quarantine patients. Doctors, nurses and first responders are far beyond the point exhaustion, but they're carrying on, wearing their uniforms and protective clothing like it's Superman's cape, knowing full-well the next patient they touch, or treat could be their very own kryptonic exposure. I've thought about each person who has been declared an essential worker so that they can keep on doing what they do in a manner that was probably never expected of them before. Countries have closed their borders, their ports. Travel visas have been cancelled; airports are empty. Schools and universities are closed. Public gatherings are expressly forbidden. People have been ordered by their governments to stay inside their houses and not go out, unless they have a damn good reason to do so. Looking back in history over the past 70-80 years, I cannot find any other example where physical movement of people or goods had been this restricted - ever. If there is another such example, somebody please enlighten me. Like I said, I've been thinking...

People are staying put - data is travelling everywhere

However, in the light of all this isolation, the establishment of physical barriers, the restriction of movement and the reduction of what was deemed normal just a few months ago, one commodity has been flowing freely and traveling with hardly any restriction. Over the past few weeks, as the physical world continued to shut itself down and as people began to lock themselves away, it's significantly increased in its movement and volume.

I'm talking about digital information.

For the army of global researchers, who are trying to figure out how to fight and disarm COVID-19, the sharing and flow of information across huge divides and physical barriers has never been more life- and mission-critical. I can only imagine how billions of ones and zeros, that make up vital medical information and research data, are currently traversing distances as short as from one room to the next and as far as one continent to another, bouncing off satellites, flowing through racks and IT hardware in data centers, across intercontinental undersea data cables, along highways and roads, being dispersed and routed to smaller data sites and server rooms all over the world, and then, finally, reaching its destination, all in milliseconds. Continuously. Uninterrupted. Without fail.

Right now, the global digital infrastructure industry is experiencing demand that was not in many (if any) forecasts a mere 6 months ago. What is happening now is abnormal. Digital traffic patterns are increasing drastically, and the consistently high volumes remain at levels never seen before - and it's growing day-by-day. The types of conversations I'm having with my peers, colleagues, friends and clients in the data center industry, across the world, are of a nature that few could have imagined at the beginning of 2020. Data Center managers are trying to balance the demand on their staff whilst protecting their health and well-being. I've had clients who have sent home some of their staff that, if exposed, could be more vulnerable to the virus. Others have been required to step up and work longer hours or take less time off to recover. I shared my initial thoughts about the impact of COVID-19 on data center resilience two weeks ago. I said then that, if this crisis worsens, data center operations will be tested like never before. Guess what? We're there. That point has been reached. Within the global data center industry, what happens from here on forward is not in the playbook of many. I am not able to speak about other industries in the world, but I will assume that all are in the same boat.

In all these years, this is beyond my contemplation of "Force Majeure"

I've negotiated many data center contracts and service level agreements - on the side of clients entering into it with data centers and on the data center service provider's side too. These agreements have ranged from simple and straight forward all the way through to complicated and complex monsters of note. I've had to wrap my mind around a number of things. Sometimes innovative thinking and a unique approach or interpretation is required to reach a meeting of the minds. My obvious approach was that all parties must be in full agreement with and have confidence in the terms referenced within, BEFORE anybody signs on the dotted lines. In all cases, "Force Majeure" covered an event, incident, accident or catastrophe of unforeseeable circumstances that prevented someone, usually confined to a single party, from fulfilling their obligation or contract. Force Majeure could, reasonably, not have been foreseen or prevented and is usually associated with or as an act of God. In all my years of experience, force majeure was regarded as having a potential major impact on one or two issues of importance, but limited to a relatively short period of time, with alternatives being available and accessible in need. Well, that was the theory anyway.

After final signature, I'd regard it as unfortunate if/when force majeure was invoked in a contractual agreement. Sometimes there'd be elevated risk, but not a lot, during the build phase of a large data center, particularly in the order and delivery of long lead-time items of capital equipment. This even more so when the destination of the equipment was on another continent. Even then, only one contract or party was at risk at any given time. We didn't think of it as the entire world shutting itself down, all at the same time, for a prolonged or undetermined period of time, whereby people would be unable to go about or conduct their normal business, work, personal or recreational activities for a prolonged or undetermined period of time. I did not contemplate that, even if a party completely defaulted on an agreement of delivery, ALL the alternatives could also be unavailable. Even in the most difficult of scenarios, there was always a Plan-B and probably, a Plan-C. Force Majeure was not defined as governments declaring countrywide lock-downs of its borders, ports, cities, factories, places of business and confining citizens in a manner whereby only absolutely essential movement was permitted. Like I said, usually one contract and, usually, only a part of that contract, would be at risk. A larger than usual number of us in the data center industry, service providers, vendors and clients, have much more than one contract, SLA, or a part thereof, facing force majeure. And it's not like, once invoked, another alternative can be sourced because only one party is affected. Over the past two weeks, everybody I have spoken with is affected or will be affected by COVID-19 soon enough, whether they choose to publicly admit it or not. These are the most extraordinary of times. It requires extraordinary leadership and calm heads within organizations. It requires very strong relationships between clients and data center operators. We all carry risk exposure that could impact the ability to provide and receive agreed levels of services. The longer this situation endures, the more strain and impact there will be on our operations and supply chains.

Sooner or later a generator will require repair. Sooner or later a chiller will fail. Sooner or later diesel fuel will be needed for the fuel tank farm. Sooner or later, a company will invoke force majeure because of direct exposure to COVID-19 or due to another indirect consequence of this global catastrophe. And that generator will stay down. Where there is more redundancy in design, more resilience and maturity in operations, the consequential impact will be less. Where there is not, or maintenance and operations had already been neglected, the impact could be much worse. The question is, where will you and your organization find itself in this equation? Will your client(s) be impacted as a result? If so, are your SLAs, contracts, inter-organizational and inter-personal relationships strong enough to endure the strain it may place on all parties? What if this goes on for months? The best-case scenarios paint a picture of 10 weeks, but that's not for the entire world. Some countries are tracking nowhere near the exponential part of the curve yet - but they're on their way. Others are going to be more fortunate and be less affected. I don't know what the future holds or where it will take us. What I can guarantee is that nobody will be left unscathed by this global catastrophe. 

In the end, relationships are either gold or straw

Nobody grabs the contract when things are going well. A well-drafted SLA or contractual agreement is the foundation of a good relationship between the contracting parties. It's when one of the parties feel aggrieved and the agreement is then opened and studied more attentively. The problem arises when certain scenarios and potential events were glossed over or played down during the negotiation period. And it happens - played down because we don't want to upset the apple cart or go too far down the rabbit hole. I always say to my clients, "When ambiguity or lack of clarity finds its way into an agreement and then it hits the fan, the only people who make money, are the lawyers." Under these circumstances it becomes a zero-sum game.

However, cool heads and well-established client relationships can still be of value and prevail. If a sentiment of mutual trust and understanding was previously fostered and nurtured, the result could be of mutual benefit. You see, when relationships are put to the fire, you'll soon find out whether they're made of straw or gold. After the burn, if it's straw, all you'll have left is nothing but worthless ash. If it's gold, what you have afterwards is purer and more valuable gold – this is a true partnership. That's what we should all strive for in the relationships between service provider and client, irrespective of what the contract states.

I have no idea what lies ahead of us in the months to come. I have no idea where anyone of us will be once this is all over. What I do know is that our world and, more specifically, our data center industry will be different from what it is today. We have been designated as an essential service in the time of a global catastrophe. Many clients knew this about us a long time ago. They, as do we, expect the services to remain uninterrupted and predictable during this most awful time – now more than ever. I know that the people in the digital infrastructure industry and all the ancillaries, will do whatever it takes to keep the promises made. We may not be at the front-line of this war, like our medical superheroes, but we're here to ensure that they get the digital services and support they need to fight the fight. And the same will be done for everybody else. Through all of this, the fire is burning. Relationships are being tested and, as each day progresses, the fire is getting hotter and hotter. Irrespective, once all is said and done, the relationship between data center organizations and their clients will be forever changed - either straw or gold.

Stay safe.