Electronic Data Systems Corp. is constructing a data center in Sacramento, Calif, to back up its automated teller machine systems run out of Rochelle Park, N.J.
The multimillion-dollar facility, which will be dedicated exclusively to disaster recovery services, is slated to open in late March - almost exactly a year after a snowstorm destroyed EDS' data center in New Jersey, temporarily knocking more than 5,000 ATMs out of service.
"The decision to open a |hot site' was solidified when that disaster hit," said Neil Marcous, general manager of EDS' electronic commerce division.
"We had previously talked about the ramifications [of the cost] of a hot site versus the pricing of industry services, but after the disaster, it became clear that we could not take any chances."
The goal of building a dedicated hot site is simply to ensure that the ATM driving and network gateway services Plano, Tx.-based EDS provides to financial institutions are recoverable in a reasonable amount of time, should the main data center be disabled.
Since the Sacramento data center will remain almost completely idle year-round and is outfitted with an exceptional amount of telecommunications capacity, EDS' ability to recover quickly from another disaster is virtually guaranteed, experts said.
Several of the nation's largest regional ATM networks are considering installing such sites.
Temporary Move
Many of the larger networks maintain dual data sites, which are each capable of handling the network's full processing load, if necessary. Smaller networks typically reserve computer space with disaster recovery firms.
EDS is able to afford the hot site, which will feature eight Cyclone computers and 10 VLX systems from Tandem Computers Inc., Cupertino, Calif., because it is only a temporary facility.
The computer services giant plans to make the hot site obsolete within two years as it completes work on its electronic on-line network.
The network will consist of six processing locations connected to function like a single data center.
"By spreading these sites across various time zones, if you lose one location, the other sites will have plenty of capacity to pick up the slack," said Mr. Marcous.
No Fee Increase
Mr. Marcous emphasized that the money that EDS spent on the hot site would not be passed on to customers in the form of higher service charges.
However, he said some customers of EDS' ATM driving services may opt to buy a service that guarantees that a bank's ATMs will be running within a few hours of a disaster.
The standard service, which is based on dial-up lines that connect the ATM to the hot site, can usually have an ATM up and running within a day or two, he said.
