Slashdot Mirror


Sears To Convert Old Auto Centers Into National Chain of Data Centers

1sockchuck writes "Sears plans to convert dozens of Sears Auto Center stores into a national chain of server farms, saying it wants to be "the McDonald's or Starbucks of data centers." The strategy is an evolution of Sears Holdings' previously announced plan to turn old Sears and Kmart stores into IT centers. Instead, it will focus on the more than 700 Sears Auto Centers, which include many stand-alone cement buildings on mall perimeters. Ubiquity Critical Environments, the data center arm of Sears, will team with Schneider Electric to turn these sites into data centers. They'll use repeatable modular designs to add power and cooling infrastructure, targeting at least 23 smaller cities where there currently aren't many options for IT outsourcing."

17 of 167 comments (clear)

  1. Trying a new business model by cpicon92 · · Score: 5, Insightful

    I think it's commendable that Sears is trying something new instead of trying to sue its way out of irrelevancy. Whether or not it will work remains to be seen, though...

    1. Re:Trying a new business model by aztracker1 · · Score: 5, Interesting

      The irony is they (Sears) shut down their Catalog support after the internet started to really take off. They were in a position to be what Amazon is now, back when Amazon was just books, and already had the infrastructure to support it... Even if they just put their catalog online in 1997 (with telephone ordering/payments), they'd still be very relevant today. "We tried that with Prodigy, the Internet is just a fad."

      --
      Michael J. Ryan - tracker1.info
    2. Re:Trying a new business model by immaterial · · Score: 5, Funny

      It does make a lot of sense. Unlike their future-proof retail stores, automotive services are too easily purchased over the Internet nowadays. I mean seriously, who isn't buying oil changes on Amazon?

    3. Re: Trying a new business model by Anonymous Coward · · Score: 5, Informative

      I used to work at a Sears Auto Center as a stock clerk when I was fresh out of high school. They have an underground basement that is essentially a bunker that is the same size as the enter area above it.

      It's a fantastic idea. It's built like a bunker, and certainly not the regular pre-fab. Remember, these centers have to be seriously strengthened to handle the weight of the cars on top of it.

      I'm looking forward to see what they do with it.

    4. Re: Trying a new business model by TWX · · Score: 4, Funny

      Yeah, but only a Die Hard would really seek out using Sears Auto for their data needs...

      --
      Do not look into laser with remaining eye.
    5. Re:Trying a new business model by TWiTfan · · Score: 4, Informative

      Hard to believe how ahead of their time Sears was on one hand, and how unbelievably myopic on the other. In the early 20th century, you could order a HOUSE from the Sears catalog. They would ship it in by train as a kit. A fucking HOUSE! Yet along comes the internet, and they completely missed its implications. Here is a company that *specialized* in having people in the boondocks order shit from a large catalog selection, and shipping it to them (and had been doing it for over 100 years). And they take one look at the internet and say "Eh, no opportunity there." Just amazing.

      Proof positive that you can get so locked into a certain mentality of how things are done that even the slightest attempt to step outside of that conventional thinking can completely elude you.

      --
      The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
  2. Wait, what? by drinkypoo · · Score: 4, Interesting

    "We at Sears hold substantial real estate with high retail value. So we're going to turn it into something that is best located where nobody else wants to go, since that's where taxes and traffic are lowest."

    Wait, what?

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  3. They are priced very well by Anonymous Coward · · Score: 5, Funny

    They only take Discover though.

  4. Have you been to a Sears lately? by The+Grim+Reefer · · Score: 4, Interesting

    I used to buy a lot of stuff from Sears. My shed and garage look like an advertisement for Craftsman. Sadly Even their tools have dipped in quality since being bought out by KMart. I know a few people who were pissed that they received a "made in China" replacement tool for one that was "made in the USA". I'm not as hung up on that. But when the original tool lasted for several decades and the replacement a few months, there's a problem.

    The stores were dirty and disorganized the last time I was in one, which hasn't been for several months. In my area they also started closing at 7:00 or 8:00 pm, which has caused them to lose my business on several occasions. I'm not sure why anyone would trust their data in a place that they will never see when they can't even make the public areas of the store presentable. It's kind of sad to watch them die a slow death.

  5. Re:No thanks by geekoid · · Score: 4, Insightful

    "Most of their internal systems are still green-screens
    and that's bad..why?
    Have a system that's custom, specific, easy to enter data, and doesn't change is a good thin for data entry.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  6. Not going to work out for them I'm afraid. by bobbied · · Score: 4, Insightful

    You need three things to set up a server farm (apart from the servers and people to manage it..)

    1. A Building with lots of floor space.... Yea, An ex-auto repair building could do for that. Check..

    2. Connectivity to the internet... Uh, going to have to spend money on that one.. NO check..

    3. Electrical power, backup power, cooling, security infrastructure? Uh on, we don't have that either... No Check... But you'd have to spend money of all this anyway.

    I don't think this will work out all that well for them. All they have is floor space that is likely pretty expensive if it is located near any major retail but it will be fixed in size. They won't be building new buildings here or expanding by adding more stories. They won't be saving any money doing the conversion from auto repair stalls to server racks because they'd have to do that anyplace else they wanted to set this up. What's going to kill them is the network infrastructure, unless they don't care about reliability and have SLA's for their service that matches. Getting redundant high bandwidth links to these buildings could be expensive, if they are not already near high speed network connections. Comparing their costs to their competitors, I just don't see this working out. Their competition will be working on much larger facilities, located much closer to network infrastructure with lower cost structures and less limitations on their building sizes. Sears may be getting the building for free, but their other setup and operating costs will be higher.

    About the only way this is going to pay, even marginally, is if they can use their unique locations to provide points of presence for services like Netflix or Amazon video to cache content locally or something along those lines. Other than that, I just don't see this working out.

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    1. Re:Not going to work out for them I'm afraid. by Tailhook · · Score: 4, Insightful

      if they can use their unique locations to provide points of presence for services like Netflix or Amazon video to cache content locally or something along those lines.

      That is exactly what this is about. Netflix and Youtube are 50% of all US internet traffic now. These Sears properties are numerous and right in the middle of neighborhoods where the data consumers live. Network operators can offload huge amounts of peering traffic by caching bulk data close to clients.

      These properties are all near major roads in urban areas that can supply sufficient power and run fiber without much drama, but the fact is they don't need bullet-proof power or network service to stream bulk data; when a local cache drops out clients can be temporarily served by more distant servers.

      --
      Maw! Fire up the karma burner!
  7. Vacant malls are no longer expensive space by Animats · · Score: 4, Informative

    Or have malls been giving sweet deals to the big end cap stores?

    Many mall owners are desperate. No new enclosed mall has been built in the US in the last ten years. (American Dream Meadowlands in New Jersey doesn't count; after two bankruptcies and a roof collapse, they're "on hold".) There are hundreds of dead malls in the US. If you have a use for mall-type space that doesn't have to be near customers, there's plenty of space available.

    1. Re:Vacant malls are no longer expensive space by alexander_686 · · Score: 4, Interesting

      There is another angle to this – the REIT tax exemption. Sears is cash poor but land rich.

      There is a quirk that Real Estate Investment Trusts don’t have to pay corporate tax if they pay out most of their profits. REITs included apartment and office buildings, public storage, warehouses, and maybe server farms. (IIRC Rackspace was trying to convert. I don’t know what become of that.)

      Sears is trying to figure out how to move it assets over. This could be a angle where they rent the building but outsource the server farms to their partners.

  8. Re:So.... by mspohr · · Score: 4, Interesting

    Recently decided to buy something from Sears mail order.
    It was a total disaster. First, their web site wouldn't take my correct address leading to a 6AM call from the East coast warehouse to sort out the address. They then shipped a cheaper substitute part (different part number) and insisted it was just fine. Wouldn't take a return or ship a replacement. Finally protested the charge to my credit card and got a refund.
    Never again.
    Ironic that Sears can't even do mail order right these days.

    --
    I don't read your sig. Why are you reading mine?
  9. It is so stupid, I have to stop and think if it is by acscott · · Score: 4, Insightful

    No, it's stupid. But here's what they should do: spin them off into 501(c) 3's and turn them into solar-based (and other) charging stations for electric autos. Use this to start a new brand. Gently and carefully test and enter the brand into your e-stores. Oh why is it stupid? I'm not sure. Probably better to turn those sites into Dr. Clinics, or blood-test labs. Get away from work to go to the Dr. and go shop!

  10. Demand for "retail" lower-end data center space? by swb · · Score: 5, Interesting

    In some ways I think data centers have gotten out of hand and created a market for less intensive, more retail-friendly versions.

    I get that there's definitely a need for all the security and triple-redundancy that high end data centers provide. But I also think there's definitely a market for a less complex version that maybe doesn't have the kinds of security or redundancy that big operations have. Not zero redundancy or zero security, but a less involved version -- maybe less peering, less security, one generator instead of two, etc.

    I work in SMB consulting and there's a certain number of clients who host their own systems in house but could benefit from putting them in a data center, but who don't quite want to pay the costs asociated with the standard model of data center. What they need is a rack with reliable power and cooling and better internet connectivity than they can get from a DSL line + Cable.

    A "retail" data center might let them get their toes in the water and solve some short term problems without having to cross the Rubicon into "big time" datacenter use.

    The most apt comparison I can make is Snap Fitness vs. Lifetime Fitness. Lifetime has more and better equipment, trainers, a pool, tennis, etc. But some people just want to lift weights and run on a treadmill.