Resulting of opportunities and markets identified with our OEM partner we have added new service offerings with multiple ways to provide integration services to our customers including our on-site rack integration and our now new data center moves solution. We’re very proud of our existing OEM relationship and we’re working very hard to grow this relationship in business. Improved brand awareness of TSS and a digital presence in a broader market are on top of our list and are important and so we recently completed a modernization of our website. We published a white paper on friends and data centers. Expect more news and informational updates from TSS. Growth potential in 2024 will be driven by high demand mostly impacting our rack integration business.
Our goal will be to see the beginnings of revenue contribution from the data center move offering in its first full year. The pipeline of MDC business is growing but lead times remain long. This is a pipeline to impact the next one to three years. The data center world is scrambling to keep up with the adoption of advanced technology and we still believe our modular data center business is uniquely positioned for growth. The data center market is entering a fascinating phase. The continued growth of the hyper-scale data center market is staggering despite all the investments over the years and analysts forecasting that all the existing capacity will be consumed shortly is inevitable and incredible. However the AI push is demonstrating that the complexity of implementing new technologies is far-reaching.
AI infrastructure will likely be different than much of the existing infrastructure. Not will be, it is. The reliance on high-powered GPUs will impact rack design, power, and cooling solutions. Our systems integration business is so well positioned as we are not the cheapest but we are the fastest and the most flexible to support customer solutions. So much of our AI as an example is custom in these early stages. Further existing data centers may be repositioned, reorganized, or moved so our service offering will continue to grow based on the needs of these key customers. We fully expect to accelerate growth in 2024 and beyond to meet the intense demands of this market. So let me hand this call back to the operator who may take any questions you may have.
Thank you everybody for your support. We all appreciate your attention on this call and your continued support. Thank you.
Operator: The floor is now open for your questions. [Operator Instructions]. Okay, so it does appear we did receive a question. If you could please state your name and your company please?
Maj Soueidan: Hi, this is Maj Soueidan from GeoInvesting.
Operator: Thank you. Go ahead, sir.
Maj Soueidan: Hi, Darryll. Thanks for giving us an honest overview of what’s been going on here with the company. I have some questions. I think that as you dig into this company a little more and you dig into data centers and everything going on right now with AI, it can get a little kind of overwhelming like where this is all taking data centers and how you might play a role in what’s going on here. I think it’d be kind of cool to hear you talk about the different types of data centers that are out there. You get the enterprise level, you got the modular, you have colocation, you have hyperscale. I was wondering if you could talk about what those all are and if you have a kind of a potential growth map. All of them are always specific or parts of that kind of the market segments.
Darryll Dewan: Yeah. Hi, Maj, good to hear your voice. Thanks. And also great question or put plural on that. So let me see if I can break it down for you. I believe the company is uniquely positioned and we sit in the intersection of high-powered computing, high-performance computing and AI. The integration capacity that we have is ahead of us. I think we are in the middle of it. I can tell you that there’s some very exciting things going on regarding our rack integration business and it relates to advanced technology, especially around direct liquid cooling and the new AI computers. To answer your question a little bit further on the data centers, we are in conversation with folks who are evaluating their alternatives. And I would say that in general, it’s a time-to-market and a time-to-value equation to either expand an existing data center, which as you can imagine, takes time locally through building and extensions and just supply to build out a data center, extend the data center to a co-load, to hyperscale, to some kind of hybrid approach.
And I see our potential in that market for the modular world being an alternative to some of the options I just mentioned because of time-to-market and the cost to deploy. So in spite of the fact that there are lead times we’ve referred to in this call that are longer than we all would like to get power units, to get containers built, the ultimate result is usually a cheaper, better, faster alternative than building out a data center. And that’s where we think the opportunity is in the future. And we’re working with our OEM partner to do the design work and help facilitate the design work of the solution. And we’re focusing in on the deployment piece where we actually go on-site to deploy the modular data center and the sustaining maintenance over three to four or five years of that environment.
So that’s where our focus is right now. And as I mentioned earlier, we’re learning as we go in some of the areas where customers are giving some feedback to us and asking for us to step up and do some things that we didn’t do before. So we’ll continue to evaluate ways to go expand our service offering. But I think for 2024, you’ll see a focus and a result in our rack integration business, our systems integration business, our data center move business, and get that off the ground. We’re really excited about the expansion potential of going on-site to do rack integration doing work in colos and other facilities that we formerly didn’t do before. So I think the growth is ahead of us. Hopefully that answers your question a little bit.
Maj Soueidan: Yeah. So basically, if you have a — just to understand things more clearly, if you have now customers that have to make these data center decisions quicker than they had to before, if they don’t want to expand their own data center like they have when they had a choice of maybe going to — like doing a modular, potentially going to like a colocation situation, so you’re able to help them in either of those situations is what I’m hearing here now, right?
Darryll Dewan: I think so. Yes. The answer is yes. We’re definitely experienced, and we’ve got — I think we’ve deployed over 500 containers over the years, and we’ve got a little under 200 under existing maintenance support. And the change in the gap between the deployment amount and the existing is technology changed as people have moved things around. And we need to continue to focus on building a backlog in demand for the future, which is our – is really on top of our list. And I think that’ll play out over the next couple of three years just because of the lead times involved, the way that our revenue flows for doing sustaining maintenance and deployment.
Maj Soueidan: And what do you think the issue has been like with – I think a lot of your integration work now has been with just, I guess, traditional enterprise data centers. Now that you’re there for as long as you’ve been there at the company now, and you’ve had a fresh look of eyes, what do you think is different now in terms of your ability to convince customers to go modular where maybe previously that wasn’t happening with your sales pitch?
Darryll Dewan: A couple of things. One is we have invested in a demand gen, if you will, it’s a nice phrase around the sales capabilities. So, we’ve got – we’ve added a couple of folks that are in the selling cycles alongside our OEM customer partner to help facilitate that. We weren’t doing that before. So, we have a better line of sight on opportunities, and we can manage the pipeline better. And we are looking for the ways to continue to grow the pipeline. We’ve, as you may know, published a couple of white papers. We published one white paper about data center trends, and we’ve got more coming around the modular data center environment. So, I’m excited about the fact that we’re taking – that we’re taking more action in the selling and being more active in the modular world.
And I believe that what we’re seeing from the white paper is that we’re getting a direct interest from end users, which formerly we didn’t – if you think about how we’ve gone to market in the past, we’ve aligned completely with a OEM partner, and now we’re in a position where we can have direct conversation and then lead into what the right solution is, including the existing OEM partner or others, as the market demands. But hopefully that’s answered your question.
Maj Soueidan: Yeah, sure. So, it seems like you’ve strengthened your relationship maybe with your OEM customer as you’ve been there. What’s your roadmap? Maybe you addressed it in your earlier comments, and I missed the first few seconds of the call. And I know you’re obviously trying to get business now outside maybe your OEM relationship and some of these services you’re doing by working more directly with customers maybe. But what is — are there other OEM relationships that you could go after that you haven’t gone after in the past? And what does that look like? And is that a – what kind of path do you take to kind of implement that strategy if that’s part of the roadmap you have right now?
Darryll Dewan: Yeah, another good question. Are you speaking specifically in the modular space or in general for our business?
Maj Soueidan: I think in general, yeah.
