p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 4 April 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1476

Analysis of Benefit Considerations for Guarantee Company

Upgrading to Tier 4 Colocation Data Center in

Indonesia

Ferdata Adhitya Winarno Putra

, Jarot S. Suroso

Universitas Bina Nusantara Jakarta, Indonesia

Email: [email protected]

, [email protected]

*Correspondence

ABSTRACT

Keywords: Data Center;

Hyper-converged

infrastructure; Colocation

Data Center; Data Center

Migration.

This research is motivated by the need for the guarantee

company to improve the management of the availability of

information technology services to all company stakeholders

in the guarantee company data center migration project. The

guarantee company is currently collaborating with data

center colocation service providers to support information

technology infrastructure needs as a location for placing

hyper-converged infrastructure servers. One of the

objectives of this study is to provide recommendations to

company management regarding improvements related to

operational efficiency, increased scalability and capacity,

reliability, increased availability, increased security factors,

compliance with regulations, and the ability to increase data

recovery in the event of a disaster by evaluating and

maintained for enterprise data center migration plans. This

research focuses on how the benefits of data center migration

are currently at the highest level, which will be explained in

this paper, where the author will provide a systematic and

measurable visualization regarding facts and relationships in

carrying out the stages of activity, starting with data

collection, analysis, and making suggestions in improving

colocation data services in the area of the country of

Indonesia.

Introduction

The financial industry is currently implementing a digitalization process. IT

infrastructure is obligatory to support this process. One of its needs is a data center, which

can currently be met through a Colocation data center where physical facilities provide

space, electric power, air conditioning, security, and network connectivity (Nirwana,

Hasibuan, & Hediyanto, 2018). Since the economy is growing fast, the need to provide

data centers is also growing in the same direction, where companies do not need to invest

in building data centers, working together with data center colocation providers instead

(Asali & Afrianto, 2017).

Analysis of Benefit Considerations for Guarantee Company Upgrading to Tier 4 Colocation

Data Center in Indonesia

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1477

Research on the market conducted in 2015 shows that data center investment in

Indonesia was 50% of the investment, while hardware and software investment was

another 50%. It is estimated that in 2016, it will reach US$14.13 billion and continue to

grow to US$31.95 billion by the end of 2022 (Nazim et al., 2019).

Guarantee Company is currently officially part of the insurance and guarantee.

Guarantee Company is a legal entity engaged in the financial sector, with its main

business activities of Guarantee Company targeted to support government policies,

especially in the context of encouraging business independence and empowering the

business world, primarily micro, small, and medium enterprises, and cooperatives at the

national level (Wang et al., 2019).

Guarantee Company, a company in the non-bank sector, plays a vital role in

UMKM expanding access to credit, enabling UMKM to benefit from financing provided

by the Bank (Saraswati, 2021). Guarantee Company is currently working with financial

institutions consisting of national banks, regional banks, private banks, and non-bank

partners as the number of Guarantee Company partners (Wang et al., 2019).

Guarantee Company is a Guarantee institution that is fully committed to supporting

government programs in the field of economy and national development; in its current

management, Guarantee Company manages 28,018,916 customer data, where the number

of customer data in the last three years kept growing, this continuity require service

improvement so that Guarantee Company can continue to compete with competitors in

terms of Guarantee volume competition provided by partners who are working with

financial institutions consisting of National Banks, Regional Banks, Private Banks, and

Non-Bank Partners as the number of Guarantee Company partners (Adywiratama et al.,

2022).

Table 1

Customer Growth Yoy

Customer

Year

Growth

8.401.034

2020

18.058.840

2021

115%

28.018.916

2022

55%

Information technology services can run optimally to support the process of

exchanging data with corporate partners; Guarantee Company currently utilizes server

on-premises technology as the central infrastructure in carrying out business processes in

managing transaction and non-transaction data (Fitriasari, 2017).

Guarantee Company conducted real-time business transactions with all

stakeholders, processing a significant volume of Rp 4 billion within a one-hour

timeframe. This rapid data exchange demands special attention, particularly from a

financial risk perspective. The potential risk can be mitigated by increasing the

availability of colocation data centers so that the risk of data exchange processes being

hampered and impacting company income can be avoided (Wahyuni, 2024).

Ferdata Adhitya Winarno Putra, Jarot S. Suroso

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1478

Table 2

Total Transaction

Financial Loss (Unit: Rupiah)

Business Function

1 Hour

Institutional Guarantee

Product 1

22.321.429

Institutional Guarantee

Product 2

12.338.790

Business Guarantee

Product 1

2.406.096.122

Business Guarantee

Product 2

595.675.332

Total

3.036.431.672

The supporting infrastructure needed is a data center; Guarantee Company works

with Colocation Data Center Service Providers to manage the infrastructure as a data

storage center and data exchange process with Stakeholders in providing a Colocation

Data center so that the company can focus on running their primary business processes

(Eckhardt & Doeker, 2024).

Information technology services can continue to run optimally to support

exchanging data with corporate partners. Guarantee Company utilizes on-premise server

technology as the central infrastructure in carrying out business processes in managing

transaction and non-transaction data, in addition to the supporting infrastructure needed,

namely colocation data centers which cooperate with colocation data center service

providers to manage infrastructure as a data storage center and data exchange process

with stakeholders (Krisnawati, 2016).

According to Uptime Institute’s tier classification system, which is a classification

standard used to assess the level of availability and performance of data centers where

currently, there are four levels with unique characteristics, including tier 1, tier 2, tier 3,

and tier 4 which are the highest levels in service availability for power, network, and

operational management.

In today's digital era, all components of business management must be digital-based

(Yamada, 2016). Their abilities must be increased to a competent level using the latest

technology, especially in the provision and operation of data centers, which are the

essential components of all existing services and must be at the highest level of

competence, namely in data centers with Tier 4 levels.

A data centre (Ayuni, 2017) is a central repository, both physical and virtual, for

the storage, management, and deletion of data and information from certain knowledge

sections. Four stages characterise the data center based on a combination of efficiency,

availability, and flexibility: (1) Basic, (2) Consolidated, (3) Available, and (4) Strategic

so that the data center can be used as a safe place for computer equipment, storage media,

and communication equipment, as well as networks used as data processing sites.

Analysis of Benefit Considerations for Guarantee Company Upgrading to Tier 4 Colocation

Data Center in Indonesia

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1479

Research Methods

In researching colocation data center migration analysis, which will be discussed,

the author will provide a visualization with systematic and measurable accuracy related

to facts and relations in carrying out the stages of activity.

The primary method used is a literature study, interviews, observation, and gap

analysis of tier 3 and tier 4 classification based on the Uptime Institute classification,

which is used as a parameter to achieve the desired research results.

The steps include identifying current conditions, comparing tier 3 and tier 4

colocation, and providing recommendations/suggestions based on the tier 4 data center

classification.

The scope of this research focuses on the needs of Guarantee Company to evaluate

the current use of colocation data center services, taking into account the development of

data management with all stakeholders in the process of exchanging data digitally. In

addition, the guarantee company also needs to evaluate the applicable regulatory

provisions as a form of compliance; the guarantee company is currently using a colocation

data center at one level below the highest level, namely tier 4.

Figure 1. Framework

Results and Discussion

Analysis Colocation Data Center Current Conditions with Colocation Data Center

Tier 4

Guarantee company currently uses tier 3 data center colocation services in carrying

out all business digitization processes; this requires an evaluation in maintaining the

availability of the Company's information technology services to obtain information to

Ferdata Adhitya Winarno Putra, Jarot S. Suroso

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1480

what extent the current conditions of tier 3 data center colocation services are against top-

level conditions that exist, namely tier 4 data center colocation, as well as to get additional

benefits for the improvements that will be obtained later.

The steps taken are to map the top-level Tier 4 conditions by comparing the current

conditions based on the main parameters, namely uptime guarantee, downtime value per

year, component redundancy, and certification owned by colocation data center service

providers to obtain gap analysis, as for the details of the mapping results represented by

in Table 3.

Table 3

Gap Classification Data Center

Paramete

Tier 3

Tier 4

Gap

Uptime

guarantee

99,98%

99,995

Yes

Downtime

per year

< 1,6

Hours

< 26,3

Minutes

Yes

Componen

redundanc

Full N+1

Fault-

tolerant

(2N or

2N+1)

Yes

Certificati

Uptime

Tier III

(Facility)

Uptime

Tier IV

(Design

and

Facility)

yes

ISO

27001:20

ISO

27001:2

013

PCI DSS

PCI

DSS

TARA

Yes

SOC

type 1

Yes

SOC

type 2

Yes

From the results of observations based on specifications and certification and then

mapping the conditions of colocation data center service providers in Indonesia that have

been carried out, the results of gap analysis are found in all main parameter areas of tier

3 data centers and tier 4 data centers. This gap is a difference that characterizes the level

classification of the tier in the data center.

The results obtained from the analysis based on mapping the current colocation

conditions tier 3 with the tier 4 colocation data center level have gaps in all main

parameters.

Areas with gaps are areas where it is possible to increase the benefits that will be

obtained for Guarantee Company that initially used colocation data centers from tier 3 to

tier 4. The improvements are as follows:

Analysis of Benefit Considerations for Guarantee Company Upgrading to Tier 4 Colocation

Data Center in Indonesia

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1481

a) The Uptime guarantee area, which initially had a tolerance of 1.5 hours of downtime,

will get an increase to a downtime of less than 26.3 minutes in one year; this can help

Guarantee Company avoid the potential for unachieved information technology

services.

b) Area Component redundancy, essential systems such as power supply and coolers,

originally had N+1 redundancy to 2N. This means that the power supply and cooler

become more optimal by having a dual system for all components to have a higher

tolerance for the risk of system failure.

c) Area Certification data center, which is a feasibility assessment of design and facilities,

assessment activities, and evaluation processes carried out by an independent party,

namely the Uptime Institute, verifies to ensure that the facility meets specific

reliability, availability, security, and operational efficiency standards.

1. This area has increased the existing certification from each colocation data center

service provider, where tier 4 certification is obtained for the design and facilities area

and certification; this certification area ensures that all infrastructure in the colocation

data center has been tested.

2. Increased threat and vulnerability risk assessment activities in the risk assessment area

in conducting assessments and potential risks throughout the infrastructure. It is also

equipped with PCI DSS certification related to protecting sensitive transaction data

and payment processes for colocation data center service users.

3. The security area also increased when a report with AICPA (American Institute of

Certified Public Accountants) standards was issued by an independent party for the

assessment and testing process related to the internal control of colocation data centre

providers.

Table 4

Gap Mapping and Improvement Results

Parameters

Gap

Improvement

Uptime guarantee

Yes

Downtime per year

Yes

Component

redundancy

Yes

Certification

Yes

(4 Certification)

It can be concluded that there has been a significant increase in all parameters of

the current tier 3 data centre colocation conditions with tier 4 data centre colocation in

the aspect of maintaining maximum reliability and availability of information technology

processes for Guarantee Company.

By leveraging the highest classification data centre services, underwriting

companies can significantly improve reliability, availability, and redundancies. The

guarantee company can avoid the risk of downtime in supporting equipment,

infrastructure and networks. In addition to maintaining the performance of the availability

Ferdata Adhitya Winarno Putra, Jarot S. Suroso

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1482

of services provided during maintenance, the Tier 4 data centre guarantees that the

maintenance carried out cannot affect all running processes.

In fulfilling compliance with applicable regulations, if you have used a tier 4

colocation data centre, the guarantee company has been able to ensure compliance with

regulations because the provider has complied with the applicable regulations. By

complying with all applicable regulations, the guarantee company can also improve its

reputation and trust in building high trust in all stakeholders.

Conclusion

The analysis results of the current tier 3 data centre colocation with the top tier 4

colocation data centre at the Guarantee Company conclude that gaps can be repaired.

Based on all mapped area parameters, gaps were found, which can be used as an essential

reference for improving services to become a tier 4 colocation data centre.

This analysis demonstrates the potential benefits of Credit Guarantee Company

migrating to a Tier 4 data centre based on a 3-year evaluation of service improvement and

consistent achievement of SLAs (100%); the findings suggest that a Tier 4 data centre

could effectively support improved business processes for the company.

Deploying Tier IV data centres with the highest levels of redundancy and fault

tolerance by the Uptime Institute's Tier Standards can help guarantee company reduce

risk and significantly increase service availability. Tier IV standards are the highest level

standards in terms of data centre availability and reliability, designed to reduce the risk

of failures that could disrupt a guaranteed company's business operations.

This approach would ensure exceptional information technology (IT) service

availability with minimal downtime risk and provide the highest level of redundancy in

equipment, infrastructure, and network connectivity. Consequently, Guarantee Company

is likely to experience a positive impact on its reputation for reliable service delivery and

resilience against potential failures, fostering trust among all business partners.

The Guarantee Company obtains documentation of current tier 3 colocation

services. It compares the current tier 3 colocation data centre with the top tier 4 colocation

data centre so that the company can consider the need for increased effort in managing

the guarantee company's information technology services.

This analysis of the use of tier 3 and tier 4 data centre colocation services provides

suggestions that may be taken into consideration for guaranteeing company management

to improve services based on the benefits obtained. This analysis is different from other

analyses because the results specifically discuss the benefits of improving current

colocation data center services in Guarantee Company to the highest level in the data

center classification which can improve services, especially in the guarantee industry.

Analysis of Benefit Considerations for Guarantee Company Upgrading to Tier 4 Colocation

Data Center in Indonesia

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 4, April 2024 1483

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