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Darren Bonawitz
Darren Bonawitz attended Kansas State University where he majored in Electrical Engineering with an emphasis in Communication Systems.

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In Light of Data Center Tax News, Cornerstone 360 Shares Important Tax Information for Kansas City Businesses Filing in 2012

Friday, February 3rd, 2012

Data Centers have been in the news recently as many legislators, company executives and lobbyists are pushing to get important tax exemptions and incentives for the companies and structures. Not only would these tax breaks encourage growth in the industry, but it would also have the potential to create local jobs while lowering the overhead costs of running the data centers.

The most recent news featured a proposed bill for Missouri, highlighted in this article from CBS St. Louis, which would require a minimum capital investment and the creation of at least 30 jobs in order for a data center to qualify for major tax breaks. Also seeking a data center tax break this month was Facebook, whose Oregon facility was subject to a huge tax bill that has since been reduced. If local and federal governments approve cutting these tax bills for data centers, local economies will more easily enter into a stable and prosperous position for future growth.

We know the data center industry isn’t the only one looking for tax assistance around this time of year. So, we recently met up with some of our friends at Cornerstone 360, who were more than happy to share some highlights and changes to the tax code to share with our clients and other businesses in Kansas City.

The IRS has been busy creating new rules, expanding old ones and letting others lapse. Below are some highlights that will affect the most people. If you have any questions about the items or if you are looking for some tax advice, please feel free to contact us at Cornerstone 360 any time. Our contact information is at the end of this issue.

Tax Highlights for 2011/2012

Payroll Tax Cut Extension
House and Senate leaders agreed to end their stalemate over extending the payroll tax break. Under the agreement, for the first two months of 2012, a 4.2% Social Security tax would continue to apply to workers’ pay (10.4% OASDI tax for self-employment income).

However, the agreement calls for new language to be inserted into the tax relief bill to prevent a potential payroll tax problem for employers. According to information provided by the House Ways & Means Committee, the revision would allow employers to withhold employee payroll taxes at 4.2% (instead of 6.2%) on all wages paid during the two-month extension period. If an employee’s wages during the first two months of 2012 exceed $18,350 and the payroll tax reduction is not extended for the remainder of 2012, an amount equal to 2% of those excess wages would ultimately be recaptured on the worker’s individual tax return for 2012.

Capital Gains
Congress extended the favorable rates of 15% for long term assets (0% for those individuals in the 10% or 15% brackets).

401(k) Contribution Limits to Increase in 2012
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.

The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

IRS Releases 2012 Standard Mileage Rates
The 2012 business mileage rate will continue to be 55.5 cents for business miles driven, the same as the adjusted mid-year rate.

Beginning Jan. 1, 2012, the rate for medical or moving purposes will be 23 cents and the rate for miles driven in service of charitable organizations will be 14 cents per mile, according to the IRS in a recent news release (IR-2011-116).

Due Date for 2011 Tax Returns is April 17, 2012
The due date for individuals (and partnerships) is April 17th this year. Once again, there is a Washington D.C. holiday on Monday, April 16th that is pushing the federal due date back another day. Kansas and Missouri are following the federal deadline.

New Form 8949 (for individual tax returns)
All capital asset transactions are now to be reported on the new Form 8949 with Schedule D. For sales of securities, your broker should have basis on the Form 1099-B you receive. We must now report your security sales based on the distinction of 1) sales with basis shown by broker, 2) sales without basis shown by broker, 3) sales not shown on Form 1099-B, and 4) sales with no Form 1099-B issued. A separate Form 8949 is required for each type.

Net self-employment income
Self-employed health insurance premiums no longer reduce self-employment income for purposes of calculating self-employment taxes. If you are self-employed and your spouse works for you, give us a call. We can discuss some alternatives.

Equipment Purchases
If you purchase equipment, you may make a “Section 179 election,” which allows you to expense (i.e., currently deduct) otherwise depreciable business property. For 2011, you may elect to expense up to $500,000 of equipment costs if the asset was placed in service during 2011. Note that for assets placed in service in 2011, taxpayers can expense all of their business equipment purchases under a provision giving taxpayers 100% bonus depreciation.

In 2012, the dollar amounts for §179 expensing are scheduled to be $139,000. In 2012, the bonus depreciation amount is scheduled to be reduced to 50%.

IRS Areas of Interest
Over the years, we see what the IRS is interested in as it relates to your taxes. Areas that pique their curiosity are areas such as large charitable donations, the office in home deduction, rental losses, deducting business meals, travel/entertainment, and claiming your auto in your business. Some other areas of interest are: businesses that are really hobbies, and of late, the IRS is very interested in whether you have a foreign bank account.

All of the above are valid when documented properly. Always keep your documentation, receipts, and other information that will back up any claim of deduction you may have.

Independent contractor or employee?
We have also seen an uptick in inquiries regarding whether Form 1099s were issued properly – with stiff penalties if they weren’t. If you paid more than $600 for services to any person, sole proprietor, partnership or LLC, in 2011, you should be issuing a Form 1099. A good rule of thumb is to always collect a Form W-9 from anyone requesting payment from you. If you hold payment until they return the W-9, then you have a better shot of getting all of the required information for your files in the event of an audit – and audits have been on the rise. Consult your tax advisor.

The IRS is also interested in finding out whether you are properly reporting people working for you – are they outside contractors or should they actually be employees? The IRS looks to a 20 part test to see if someone should be an employee or an independent contractor. Some things to think about are: 1) Does the worker receive instructions on where, when and how to perform the work? 2) Does the employer pay for workers expenses, or supply the tools and materials? 3) Are there set working hours? 4) Is there a contract? 5) Is there a right to quit? An employee can generally quit at any time without incurring a liability. An independent contractor is usually responsible for satisfactory completion of the job and is usually legally obligated to make good on their commitment. As you can see, there are lots of things to consider when determining the status of someone working for you. Please consult with your tax advisor.

IRS may be interested in your Quickbooks/Peachtree files
IRS agents are starting to request Quickbooks and Peachtree backup files from businesses under audit. The taxpayer must provide electronic records upon request. From these electronic records, the IRS can look at dates of transactions/entries, the person who performed the entries, and subsequent changes to the entries in an attempt to uncover errors or weaknesses. At this time, the software companies have not released an “audit copy” as an alternative to a full back up file. You might work with your accountant to ensure you have adequate books and records that would hold up under audit.

State Tax Credit Opportunity
Missouri and Kansas residents with incomes exceeding $200,000 should strongly consider purchasing state tax credits to cover their state income tax liabilities. Missouri tax credits, such as the Low Income Housing Tax Credit or the Historic Preservation Credit, can typically be purchased for 89-92 cents on the dollar. Area banks typically act as brokers. Kansas Angel Investor Tax Credits can typically be purchased for around 80 cents on the dollar, generally acquired from an out-of-state investor in a qualified high-tech Kansas company. Email Jim Zenk at Cornerstone CPA Group, PA with any questions: JimZ@cornerstonecpas.com.

About Cornerstone CPA Group, PA
Cornerstone is a public accounting firm in Overland Park, Kansas. For nearly three decades, Cornerstone has advised small businesses and individuals in the Kansas City area. Whether you need help with your individual tax situation, assistance getting your business off the ground, accounting department outsourcing, or sophisticated tax advice from a seasoned CPA, Cornerstone can help. www.cornerstonecpas.com

Please feel free to contact Jennifer Magyar at Jennifer@cornerstonecpas.com or Jim Zenk at jimz@cornerstonecpas.com.

Tags: 2012 tax changes, 2012 tax info, Cornerstone 360, Cornerstone CPA Group, Filing business taxes, filing tax returns, kansas city businesses, Kansas City tax info, tax advice, tax changes, tax help
Posted in technology companies | No Comments »

Thank you to David Day at ithinkbigger.com for Featuring Darren Bonawitz’s Guest Column: Google Opens Door for Innovation In KC

Friday, June 3rd, 2011

Posted by: Darren Bonawitz, principal of 1102 GRAND

Thank you to David Day at ithinkbigger.com for featuring Darren Bonawitz’s Guest Column: Google Opens Door for Innovation In KC.

GOOGLE OPENS DOOR FOR INNOVATION IN KC

Fiber network is likely to boost business and job growth in metro area.

By Darren Bonawitz
After Google Fiber announced that it will deploy a one gigabit-per-second fiber network in both Kansas City, Kan., and Kansas City, Mo., I have been asked on several occasions what this will mean to the area’s technology community and the future of Kansas City as a whole.

New Businesses and Jobs

A key area of immediate or near-term impact is likely to be job growth in Kansas City. As others have pointed out, the fiber build itself is not where the jobs are going to be created. Instead, we will likely see an uptick with regard to employment opportunities across three areas: companies relocating to Kansas City, existing companies and new ventures.

Google’s commitment to invest in Kansas City should trigger increased interest among companies from outside the market in their site selection process. This means new job opportunities for the community, including the technology sector. The good news for these companies considering Kansas City is that the market has a strong talent pool to draw from, with not only the desired technical proficiencies, but also a strong Midwestern work ethic.

Existing companies that have already made an investment in Kansas City also are likely to benefit from being able to tap into the Google Fiber high-speed network. As these existing companies continue to grow and expand, new job opportunities will be one of the inherent benefits.

In addition, with Google Fiber literally in some of our backyards and the bandwidth handcuffs largely removed, there should be new ideas spawned by being able to plug into a test network of this scale. Unlocking bandwidth bottlenecks simultaneously knocks down innovation barriers. If the infrastructure is available, history has shown that the applications to leverage the fiber network will follow. For those motivated and drawn to innovation, there is a terrific opportunity.

Beyond Job Creation

I firmly believe Google Fiber will have positive effects on the technology community beyond job creation. Today, Kansas City has an array of active yet loosely affiliated technical user groups, and the Google Fiber project presents a perfect opportunity for collaboration and cross pollination among these membership bases. At the end of the day, people drive business, not technology. Intelligent and forward-thinking people who know how to leverage technology are the catalyst for innovation, and a strong technology community is also imperative for attracting and retaining top technical talent.

The bottom line is that Kansas City has a unique opportunity to leverage these fiber assets and simultaneously establish the region as a top technology hub.

This story is only beginning and the rest is dependent on our ability to innovate while continuing to strengthen the human, corporate, organizational and physical assets already part of our community. In order to be successful, this is going to require a collective effort from the government and private sectors, and from companies and individuals alike. Kansas City had the passion to attract Google here, but now is when the real work begins and the community validates Google’s decision by making the most of the opportunity.

Darren Bonawitz is principal of 1102 GRAND, which provides co-location and interconnection services for a diverse customer base ranging from small businesses to Fortune 100 companies. (816) 471-7872// darrenb@1102grand.com

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Posted in 1102 GRAND, Colocation Information, Data Center Security, Midwest data center, Networking | No Comments »

Thank you to Kansas City Business Journal for Interviewing Darren Bonawitz, Principal of 1102 GRAND, Kansas City’s Data Center, in Recent Article: Google Fiber Lured to Kansas City, Mo., with Existing Web Connections

Thursday, May 26th, 2011

Posted By: Darren Bonawitz, principal of 1102 GRAND

Thank you to Kansas City Business Journal for interviewing Darren Bonawitz, principal of 1102 GRAND, in recent article: Google Fiber Lured to Kansas City, Mo., with Existing Web connections.

Kansas City’s existing Internet connection hub and exchange activity played a crucial role in landing the Google Inc. deal for both sides of the state line.

On May 17, Google announced that it would extend its ultra-high-speed Internet service from Kansas City, Kan., to Kansas City, Mo.

Tags: 1102 GRAND, 1102 Grand Network Operations Center, business merger, colocation facility, colocation provider, colocation services, Darren Bonawitz, data center, data center cost, data center knowledge, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, Energy, energy conservation, energy saving, google, google adwords, Google Fiber, Google in Kansas City, Google in Kansas City Mo, Google in KCMO, Google Ultra-High-Speed Fiber Network, high speed fiber networking, high-speed broadband, Internet Hub, internet services, Kansas City, kansas city business, Kansas City Business Journal, kansas city businesses, Kansas City data center, KC colocation, KC data center, KC jobs, KCK, KS, Missouri, Mo, wireless provider
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Disaster Recovery Solution, Location, Midwest data center | No Comments »

Kansas City Data Center, 1102 GRAND, Reviews Google Ultra-High-Speed Fiber Network Extending to Kansas City, Missouri

Tuesday, May 17th, 2011

Posted By: Darren Bonawitz, principal of 1102 GRAND

1102 GRAND would like to congratulate Kansas City, Mo. for being selected “to collaborate with Google on the deployment of Google’s one-gigabit-per-second, ultra-high speed, fiber-to-the-home broadband network.” 1102 GRAND is extremely excited about Google’s extended investment in the Kansas City area.

According to an article from kcmonitor.com, “As the second city to be selected for this initiative, Kansas City, Mo., joins its sister city, Kansas City, Kan., in a regional partnership that will help to ensure our communities’ shared success.

Tags: 1102 GRAND, 1102 Grand Network Operations Center, AT&T, business merger, colocation facility, colocation provider, colocation services, convergence, Darren Bonawitz, data center, data center cost, data center knowledge, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, generation power, generator transfer switch, google, google adwords, Google in Kansas City Mo, Google in KCMO, Google Ultra-High-Speed Fiber Network, green data center, green energy, Green IT, greening it, hardware, hardware maintenance, high speed fiber networking, high-speed broadband, Internet Hub, internet services, Kansas City, kansas city business, kansas city businesses, Kansas City data center, KC colocation, KC data center, KC jobs, KCK, KS, Missouri, Mo, wireless provider
Posted in 1102 GRAND, Colocation Information, Disaster Recovery Solution, Energy, Location, Midwest data center, Saving Money | No Comments »

Thank you to TheWhir.com for Publishing 1102 GRAND’s Earth Day Announcement: Vantage, 1102 GRAND Showcased Green Data Centers for Earth Day

Tuesday, April 26th, 2011

Thank you to Justin Lee, writer for TheWhir.com, for including 1102 GRAND in his recent story regarding data centers and Earth Day: Vantage, 1102 GRAND Showcased Green Data Centers for Earth Day.

Vantage, 1102 GRAND Showcased Green Data Centers for Earth Day

To celebrate last Friday’s Earth Day, Rosendin Electric and Vantage Data Centers (www.vantagedatacenters.com) held the Smart Data Center Revolution, providing a tour of Vantage’s new energy-efficient data center campus.

First announced last month, the event included a tour of the first of three data center buildings, presentations by David Gottfried, founder of the US Green Building Council, Fujitsu, GE Intelligent Platforms, Symantec, and VMware.

Electrical contractor Rosendin Electric has been working closely with Vantage Data Centers on the design and buildthe electrical systems for the $300 million, 18-acre data center campus.

The first 60,000-square-foot building was completed at the start of 2011 after five months of construction, while the other two buildings are set for completion later this year.

The facility is the largest LEED Platinum candidate data center project in the United States.

Once completed, the campus will have 195,000 square feet of data center space.

As part of the electrical design/build, Rosendin Electric has incorporated a number of features to conserve energy and promote greater efficiency.

In another Earth Day-related announcement, Kansas City carrier hotel 1102 GRAND recently implemented Kansas City Power & Light’s Custom Rebate Retrofit Program, resulting in a Wattage reduction of 53 percent.

1102 GRAND is a Midwestern carrier hotel and network neutral colocation facility that hosts and provides services to a range of global network operators including carriers, service providers and enterprise customer.

Darren Bonawitz, principal of 1102 GRAND, said that this project was a retrofit of existing lighting in strategic areas of the 1102 GRAND building.

The data center offers a wide range of colocation options including cabinets, cage space, suites and space for private data centers, all of which are connected to a carrier neutral Meet Me Room, housing nearly 30 carriers and service providers.

Tags: 1102 GRAND, 1102 Grand Network Operations Center, colocation facility, colocation provider, colocation services, Darren Bonawitz, data center, data center cost, data center network, data center news, data center operations, data center server, data center servers, data center trends, data centers & Earth day, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, google, google adwords, Google Fiber, Google in KCK, green datacenter, Green IT, green lighting, greening it, hardware, high speed fiber network, high speed fiber networking, high speed internet, high-speed broadband, Internet Hub, internet services, jobs, Justin Lee, Kansas City, kansas city business, kansas city businesses, Kansas City data center, Kansas City Power & Light, KC colocation, KC data center, KCK, KCP&L, KCP&L Custom Rebate Retrofit Program, KS, led lights, Missouri, Mo, the whir, thewhir.com, Web host industry news, wireless
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Green IT, Location, Midwest data center, Saving Money | No Comments »

Thank you to Barbara Vergetis Lundin from fierceenergy.com for interviewing Darren Bonawitz about 1102 GRAND’s Participation in KCP&L Custom Rebate Retrofit Program

Wednesday, April 20th, 2011

Posted By: Darren Bonawitz

Thank you, Barbara Vergetis Lundin, writer for fierceenergy.com, for interviewing Darren Bonawitz, principal of 1102 GRAND, regarding 1102 GRAND’s press release about their participation in Kansas City Power and Light’s (KCP&L) Custom Rebate Retrofit Program.

KCP&L Custom Rebate Retrofit Program saves hotel 53%

After recently implementing Kansas City Power & Light’s (KCP&L) Custom Rebate Retrofit Program, 1102 GRAND, Kansas City’s Carrier Hotel, is projecting a 53 percent savings in wattage reduction through simple, readily available T8 lighting technology.

“In our experience, it is always easier to cost justify implementing large scale infrastructure replacements with more eco-friendly options when expanding or replacing equipment at the end of its life cycle. Those projects do not happen every month or year even,” said Darren Bonawitz, principal of 1102 GRAND, in an interview. “In between, commercial companies can take advantage of programs to complete smaller projects that still provide incremental energy savings. A series of smaller projects are often easier to implement and the sum of their energy reduction can be just as significant as a single large scale retrofit.”

While programs such as the one 1102 GRAND utilized require utilities to invest time and financial resources, commercial customers are willing to partner in order to make environmentally sound decisions.

“Commercial customers have an interest in making eco-friendly decisions when the cost can be justified,” said Bonawitz. “In addition, if programs are structured in a manner that reduces the time and effort on the customer side, companies are more likely to take advantage of available incentives.”

Tags: 1102 GRAND, 1102 Grand Network Operations Center, colocation facility, colocation provider, colocation services, Darren Bonawitz, data center, data center cost, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, google, google adwords, Google Fiber, Google in KCK, green datacenter, Green IT, green lighting, greening it, hardware, high speed fiber network, high speed fiber networking, high speed internet, high-speed broadband, Internet Hub, internet services, jobs, Kansas City, kansas city business, kansas city businesses, Kansas City data center, Kansas City Power & Light, KC colocation, KC data center, KCK, KCP&L, KCP&L Custom Rebate Retrofit Program, KS, led lights, Missouri, Mo, Sprint, T-Mobile, wireless, wireless provider
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Data Center Security, Energy, healthcare it, Location, Midwest data center | No Comments »

Kansas City Data Center Announces Participation in KCP&L Custom Rebate Retrofit Program & Saves Projected 53% Watts This Earth Day

Wednesday, April 20th, 2011

Posted By: Darren Bonawitz

605494 1102GRANDlogo Kansas City Data Center Announces Participation in KCP&L Custom Rebate Retrofit Program & Saves Projected 53% Watts This Earth Day

KANSAS CITY, MO — 1102 GRAND, Kansas City’s Carrier Hotel, recently implemented Kansas City Power & Light’s (KCP&L’s) Custom Rebate Retrofit Program and projects a Wattage reduction of 53 percent just in time for Earth Day 2011 (http://1102grand.com/blog/).

Darren Bonawitz, principal of 1102 GRAND, said that this project was a retrofit of existing lighting in strategic areas of the 1102 GRAND building. “The Custom Rebate Retrofit Construction Program provides customers with financial incentives for installing qualifying electricity savings measures including HVAC systems, motors, variable speed drives, lighting, building controls, pumps, etc.,” said Bonawitz. “This project will take a short time to pay off, has a high ROI and the rebate covered almost half of the cost. It is definitely a process that we will do again because it is eco-friendly, benefits our organization and the community.”

Please check with your local energy utility provider for more information on similar programs and rebates that your organization or household may qualify for.

“Like Us” on Facebook: http://www.facebook.com/pages/1102-GRAND/106559716056523 and tell us what you are doing for Earth Day.

1102 GRAND is a Midwestern carrier hotel and network neutral collocation facility specifically enhanced with the infrastructure to host and provide services to an array of global network operators including carriers, service providers and enterprise customers who demand highly secure and connected, customized solutions for their core networking equipment. 1102 GRAND offers a wide array of collocation options including cabinets, cage space, suites and space for private data centers, all of which are connected to a carrier neutral Meet Me Room, housing nearly 30 carriers and service providers (http://1102grand.com/) Twitter @1102grand and Facebook:http://www.facebook.com/pages/1102-GRAND/106559716056523

Tags: 1102 GRAND, 1102 Grand Network Operations Center, colocation facility, colocation provider, colocation services, Darren Bonawitz, data center, data center cost, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, google, google adwords, Google Fiber, Google in KCK, green datacenter, Green IT, green lighting, greening it, hardware, high speed fiber network, high speed fiber networking, high speed internet, high-speed broadband, Internet Hub, internet services, jobs, Kansas City, kansas city business, kansas city businesses, Kansas City data center, Kansas City Power & Light, KC colocation, KC data center, KCK, KCP&L, KCP&L Custom Rebate Retrofit Program, KS, led lights, Missouri, Mo, wireless
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Data Center Security, Energy, Green IT, Location, Midwest data center, Networking, Saving Money | No Comments »

Principal of 1102 GRAND, Kansas City’s Data Center, Reviews What is Next for Google’s Ultra High Speed Fiber Optic Network in Kansas City, Kan.

Thursday, April 14th, 2011

By: Darren Bonawitz, principal of 1102 GRAND

It has been a couple of weeks since Google’s announcement to build an ultra high speed fiber optic network with speeds of 1 Gigabit/second in Kansas City, Kan. Since then, I have had a few conversations with people who are directly involved with the project and have also fielded dozens of questions from others asking for my take on the announcement.

Overall, there is still a lot of excitement and optimism about the announcement as one would naturally expect, but with an announcement such as this, there are going to be a significant number of questions too. A lot of the questions pertaining to the project itself have already been addressed by representatives from Google and the city, and are easily found with a quick search online (might I suggest Google?). Those questions aren’t what interest me most though.

Principal of 1102 GRAND, Kansas Citys Data Center, Reviews What is Next for Googles Ultra High Speed Fiber Optic Network in Kansas City, Kan. In my opinion, the best and most exciting question is a simple one – “Now what?” These two simple words offer nearly limitless possibilities. No one has the full answer to the question since it is still up to people such as you and me to determine. Make no mistake, as this project unfolds, people from around the nation and the world are going to be watching Kansas City, and it is up to us to capitalize on a project so monumental. Opportunities like this do not come around often, and we are fortunate enough to have it land in our fine city.

So whether you’re a serial entrepreneur or not, if there was ever a time to innovate and create, it is now. If you have a fully developed business plan or merely an idea on a napkin today, there are an amazing amount of resources available to help you through the lifecycle of concept to company. Just remember that all great companies started with an idea backed by determination and courage. So if you have wanted more or dreamt of launching a technology business, don’t hold back and don’t let anyone stop you including yourself. I sincerely hope you come up with the next Facebook, Twitter, or YouTube, and I hope you dream … and dream big.

Tags: 1102 GRAND, 1102 Grand Network Operations Center, business merger, colocation facility, colocation provider, colocation services, convergence, Darren Bonawitz, data center, data center cost, data center knowledge, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, generation power, generator transfer switch, google, google adwords, green data center, green energy, Green IT, greening it, hardware, hardware maintenance, high speed fiber network, high speed fiber networking, high speed internet, high-speed broadband, Internet Hub, internet services, jobs, Kansas City, kansas city business, kansas city businesses, Kansas City data center, KC colocation, KC data center, KCK, KS, Missouri, Mo, Sprint, T-Mobile, wireless, wireless provider
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Data Center Security, Disaster Recovery Solution, Location, Midwest data center, Networking, raised floors, Saving Money | No Comments »

Kansas City Data Center, 1102 GRAND, Reviews Google Blog Post: Ultra high-speed broadband is coming to Kansas City, Kansas

Thursday, March 31st, 2011

Posted By: Darren Bonawitz, principal of 1102 GRAND

1102 GRAND would like to congratulate Kansas City, Kan. on the announcement by Google to develop an ultra high speed fiber networking within the community. There were obviously a lot of cities vying for this opportunity even within our own metropolitan area and everyone should be commended for all of their hard work and dedication to bring this project to the Kansas City area. It will certainly be exciting to watch the project unfold.

Tags: 1102 GRAND, 1102 Grand Network Operations Center, AT&T, business merger, colocation facility, colocation provider, colocation services, convergence, cross-border communication services, Darren Bonawitz, data center, data center cost, data center knowledge, data center network, data center news, data center operations, data center server, data center servers, data center trends, data colocation, datacenter, economy, electrical energy, electricity, Energy, energy advantages, energy conservation, energy cost, energy saving, energy savings, energy-efficiency, expansion, facility, financial, generation power, generator transfer switch, google, google adwords, green data center, green energy, Green IT, greening it, hardware, hardware maintenance, high speed fiber networking, high-speed broadband, Internet Hub, internet services, jobs, Kansas City, kansas city business, kansas city businesses, Kansas City data center, KC colocation, KC data center, KCK, KS, Missouri, Mo, Sprint, T-Mobile, wireless, wireless provider
Posted in 1102 GRAND, Colocation Information, Data Center Cooling, Disaster Recovery Solution, Energy, Green IT, healthcare it, Midwest data center, Networking, raised floors, Saving Money | No Comments »

Kansas City Data Center, 1102 GRAND, Reviews AT&T’s Plan To Merge with Wireless Provider T-Mobile

Wednesday, March 23rd, 2011

Posted By: Darren Bonawitz, principal of 1102 GRAND

In the telecom sector, specifically the wireless industry, AT&T’s plan to buy wireless provider T-Mobile for a reported $39 billion is the biggest piece of news in awhile. While I do not normally comment on deals and transactions, this one has particular interest to me with Sprint being headquartered in Overland Park. For several years, I along with many others, were waiting on an announcement from Sprint and T-Mobile regarding a merger.

bigstockphoto Business Merger 681884 Kansas City Data Center, 1102 GRAND, Reviews AT&Ts Plan To Merge with Wireless Provider T Mobile

The industry has been full of rumors regarding the joining of the third and fourth largest wireless providers to form a unified wireless company that could potentially compete more effectively with the first and second largest wireless providers, Verizon Wireless and AT&T. So the AT&T / T-Mobile announcement came as a surprise to me. Before I go any further, it is important to note that this is just an announcement about a potential transaction, and there are still considerable regulatory hurdles to cross. That process is not quick or guaranteed and could take a year or more to run its course.

As one of the major employers in the Kansas City metropolitan area, news regarding Sprint is of particular interest even when they are not directly involved. It is no secret that Sprint has really struggled over the past several years with customer churn, financial losses, and poor marks for customer service based on third party surveys. With that said, over the past twelve months or so, it appears Sprint has made major strides to improve across various areas to curb the customer churn and improve customer service ratings. This surprise announcement could not have resonated well within the Sprint campus leaving people scratching their heads and wondering what this means for consumers, the industry as a whole, their employer and employees.

They are not alone as people close to the industry are wondering and speculating as well. While Sprint, in my opinion, is certainly not in any eminent danger, they are definitely not in an enviable position either. I will be very curious to see if customer churn starts to increase again. That would definitely not be a good sign and could escalate a potential next move for them before market cap erodes.

First, I expect a revamped marketing campaign and focus on continued improvement with regard to existing customer relations. Once existing customers are addressed, then they can dig in for the fight to attract new customers. I have witnessed multiple large scale fiber network integrations and they are always a tedious process with potential pitfalls. Who knows? Maybe Sprint can successfully position themselves as the friendly “little guy” alternative to the “big boys.” People like choices and America likes the underdog and come back stories. I’ll also be curious to see if they start going after small acquisitions of their own targeting someone like U.S. Cellular or pre-paid providers as some speculate.

While a lot of peoples’ immediate response was that the AT&T/T-Mobile announcement set up a potential Verizon Wireless / Sprint deal, I’m not so sure. Keep in mind that it is more than just dollars and customers that makes a deal a good fit. These are businesses built on extremely expensive network platforms that have to interconnect and interoperate. In fact, that is likely a potential reason the Sprint / T-Mobile deal did not get done. With that in mind, I could just as easily see, what I would call a non-traditional buyer without a legacy wireless network, enter the picture. This will be an interesting story for people in the industry as well as the Kansas City area to watch as it unfolds.

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Posts Tagged ‘kansas city businesses’

In Light of Data Center Tax News, Cornerstone 360 Shares Important Tax Information for Kansas City Businesses Filing in 2012

Friday, February 3rd, 2012

Thank you to David Day at ithinkbigger.com for Featuring Darren Bonawitz’s Guest Column: Google Opens Door for Innovation In KC

Friday, June 3rd, 2011

Thank you to Kansas City Business Journal for Interviewing Darren Bonawitz, Principal of 1102 GRAND, Kansas City’s Data Center, in Recent Article: Google Fiber Lured to Kansas City, Mo., with Existing Web Connections

Thursday, May 26th, 2011

Kansas City Data Center, 1102 GRAND, Reviews Google Ultra-High-Speed Fiber Network Extending to Kansas City, Missouri

Tuesday, May 17th, 2011

Thank you to TheWhir.com for Publishing 1102 GRAND’s Earth Day Announcement: Vantage, 1102 GRAND Showcased Green Data Centers for Earth Day

Tuesday, April 26th, 2011

Thank you to Barbara Vergetis Lundin from fierceenergy.com for interviewing Darren Bonawitz about 1102 GRAND’s Participation in KCP&L Custom Rebate Retrofit Program

Wednesday, April 20th, 2011

Kansas City Data Center Announces Participation in KCP&L Custom Rebate Retrofit Program & Saves Projected 53% Watts This Earth Day

Wednesday, April 20th, 2011

Principal of 1102 GRAND, Kansas City’s Data Center, Reviews What is Next for Google’s Ultra High Speed Fiber Optic Network in Kansas City, Kan.

Thursday, April 14th, 2011

Kansas City Data Center, 1102 GRAND, Reviews Google Blog Post: Ultra high-speed broadband is coming to Kansas City, Kansas

Thursday, March 31st, 2011

Kansas City Data Center, 1102 GRAND, Reviews AT&T’s Plan To Merge with Wireless Provider T-Mobile

Wednesday, March 23rd, 2011