Pinnacol Assurance: Minimizing risk, maximizing efficiency

Industry:

Insurance

Challenge:

A risk management company wants to improve its own safety after storing critical information in-house

Solution:

Iron Mountain Data Centersco location

Value:

• Increased security, redundancy, power, connectivity and reliability as well as high standards of customer service
• Colocation data center adjusted to meet shifting needs, even after the contract was signed
• Greater energy efficiency leading to greater cost efficiency as a result of outsourcing data center

Minimising Risk,Maximising Efficiency

As a leader in workers' compensation coverage for Colorado companies, no matter their size or risk, Pinnacol Assurance recognizes the importance of safety. Along with insurance coverage, the company provides risk management training and educational materials to all its policyholders, as well as free services from its team of safety consultants-the largest in the state.

This belief in safety prompted the company to analyze the on-premise data center in its corporate headquarters.Built in 2003 to house the company's critical information,it seemed to be at risk of underperforming. Its three legacy Computer Room Air Conditioning (CRAC) units were racking up high energy costs and simply weren't meeting its standards.The data center's lack of redundancy also put Pinnacol at risk for data loss should the company experience an unexpected outage.

After evaluating the data center's infrastructure, maintenance and operating costs, and the limited ability for the facility to support redundant power without significant cost and effort,Pinnacol's Informational Services group found the data center to be outdated and inefficient. They built a comprehensive Total Cost of Ownership (TCO) model, and determined it was more cost-effective to outsource data center services thanto update the facility.

Initially uncomfortable aboutrelocating the company's missioncritical data off-premise, Pinnacoldecided to find a local facility thatit could access easily. Besidesgeographic proximity, it wantedsecurity, redundancy, power,connectivity and reliability, butwith its high standards forcustomer service and facilitiesmanagement, those would becomethe determining factors.

"We aren't their largest clientbut we're treated like we are."

- Brian Lindley
  Pinnacol Infrastructure and
  Cloud Services Manager

Meeting EveryChanging Need

Once a comprehensive RFP yieldeda list of finalists, Pinnacol toured several data centers and askedits tech solutions company for recommendations. The process and evaluations all led to Iron Mountain.

Given Pinnacol's background in risk management, they appreciated the data center's impressive risk mitigation measures and focus on availability. Even more important than the feeling of resiliency,though, was its disciplined team.Pinnacol found not only the sales rep, but also the data center employees, easy to work with throughout the transition process.They helped construct a colocationsolution that fit the company's needs, even when those needs shifted from the initial contract.For example, after signing the contract in November Pinnacol needed to push back the move-in date to March. The company also thought it needed fourteen cabinets when it turned out that only six were required. Going above and beyond,Iron Mountain helped Pinnacol scale back and change its move-in date, working with the company to adjust its contract to meet the new requirements.

Brian Lindley, the Infrastructure and Cloud Services Manager forPinnacol, observed that while atfirst "there didn't seem to be much difference between all the data centers we toured," the team at Iron Mountain really helped them see the difference. "They go the extra mile to make sure we get exactly what we need when we need it. We aren't their largest client, but we're treated like we are. Because of everything they've done for us-for our new foundpeace of mind-I would definitely recommend them to anyone looking for a top quality data center."

Peace of mind comes partly from saving energy, which has resulted not only in cost savings but also the prospect of additional recognition. By moving its data to a more efficient environment off-site, Pinnacol lowered its power consumption and hopes to pursue LEED certification for its offices once the on-premise data center is fully decommissioned.