The Hidden Risks of Data Centers: A Deep Dive with Dr. Eric Woodell

In this episode of Breakfast Bytes, host Felicia King sits down with Dr. Eric Woodell, founder of Ameris and a leading expert in data center infrastructure and operations compliance. Dive into the world of data centers as Dr. Woodell reveals the shocking truths behind their operations and the risks that could be lurking behind the scenes.

Dr. Woodell shares his journey from nuclear submarines to becoming a key player in the data center industry, highlighting his relentless pursuit of truth and transparency. Discover why he believes that the current standards for compliance, such as SOC 2, may be nothing more than a façade, and how his groundbreaking audit program can change the game.

Explore the complexities of counterparty risk management and the importance of having real control over your data infrastructure. Learn about the potential pitfalls of relying on colocation facilities and public cloud services, and why owning your infrastructure might be the most cost-effective and secure option.

Join Felicia and Dr. Woodell as they challenge conventional wisdom, offering a fresh perspective on data center management and the critical need for accountability. Whether you're an IT professional, a business decision-maker, or just curious about the hidden workings of the digital world, this episode promises to engage and enlighten.

Quick recap
Dr. Eric Woodell and Felicia discussed the issues with the co-location industry, the importance of strong leadership in business, and the complexities and costs associated with maintaining multiple sites for redundancy. They also emphasized the need for proper documentation and certification in critical infrastructure and cybersecurity, and the importance of evaluating risks in business decisions. Lastly, they proposed the need for a significant industry alert regarding the unreliability of certain security standards and the development of a new standard in risk management.
Addressing Industry Issues and Certification Process
Dr. Woodell discussed the issues with the co-location industry, particularly the lack of proper maintenance and potential for fraud. He mentioned developing an audit program to track these issues but noted that the problem persisted. Eric criticized the SOC2 certification process, suggesting it was designed to generate fees and lacked legitimacy. He highlighted the inadequacy of the current certification process for cyber security, emphasizing the need for pressure to rectify these issues. Eric and Felicia also discussed the lack of a quality control process in their current system, with Eric sharing an example of a compliance issue at Equinix. The conversation ended with Eric expressing concerns about the legitimacy of a situation where a company lost their maintenance records due to a dispute with a labor provider.
Addressing Counterparty Risk in Vendor Evaluation
Felicia and Eric discuss the importance of addressing counterparty risk when evaluating vendors, particularly related to data extraction and contract terms. They criticize companies for writing contracts without clearly defining roles and responsibilities, leading to a lack of consequences for service disruptions. Felicia argues for the cost-effectiveness of owning and maintaining servers on-premise over using public cloud services. Eric agrees, acknowledging the potential for lower costs and better control with in-house IT management. They also discuss the challenges small to medium businesses face due to overreliance on public cloud services and the risks of data exposure from negligent co-location companies.
Leadership, Waste, and Oversight in Business
Eric and Felicia discussed the importance of strong leadership in business, using Apple as an example of a company that has thrived due to its leadership. They also shared their personal experiences of uncovering waste in organizations and the challenges of addressing it. The conversation then shifted to the issue of conflicts of interest and lack of oversight in the cyber security industry, with Equinix being cited as an example of stock manipulation and fraud. They also discussed the concept of 'unjust enrichment' and the lack of control and standards in the industry. The conversation ended with Eric sharing his positive experience with Vanguard, a company that was meticulous about compliance.
Managing Multiple Sites and Vendor Complexity
Eric discussed the complexities and costs associated with maintaining multiple sites for redundancy. He highlighted the exponential increase in complexity and costs as more sites are added, and the potential for introducing new problems. Eric also mentioned the frustration and indirect costs associated with dealing with multiple vendors. Felicia agreed, emphasizing the complexity of managing multiple vendors and the soft, indirect costs involved. They both agreed that having a small core set of sites, properly maintained, could be a more viable option. Eric pointed out the alarming rate of data center outages, likening it to the airline industry, and questioned why IT executives continue to pay for such unreliable services.
Competent Assistance and Counterparty Risk Assessment
Felicia and Eric discussed the importance of competent assistance in decision-making for clients in the industry, emphasizing the need for a CTO for contract review. They highlighted the issue of CEOs and CFOs seeking advice from friends rather than professionals, which can lead to legal issues and confirmation bias. The importance of independent audits and assessments in mission-critical facilities was also stressed, with Eric suggesting he could provide a solution for the lack of a standard for evaluating critical facility security. Felicia concluded the discussion by asking for Eric's recommendations for business decision-makers who want to better understand counterparty risk and make more informed decisions.
Industry Alert and New Risk Management Standard
Eric and Felicia discussed the need for a significant industry alert regarding the unreliability of certain security standards, particularly for critical facilities and cybersecurity. They highlighted the increasing scrutiny from insurance providers on third-party information security risk management and the importance of a high-quality CTO and CISO or a dedicated compliance manager. They also discussed the need for a new standard in risk management, particularly in the context of vendor and counterparty relationships, and agreed that the current approach was insufficient.