Telx, a provider of interconnection and colocation in North American markets, announced that it has received SAS (News - Alert) 70 Type II compliance for 12 locations in nine U.S. cities including New York, New Jersey, Atlanta, Chicago, Dallas, Miami, Phoenix, Los Angeles and San Francisco.

 

According to a press release, the Weaver and Tidwell, LLP performed the SAS 70 audit. It evaluated the company’s complete colocation and interconnection environment, such as its transition and activation procedures, security, help desk, problem change management process, monitoring systems, operations, disaster recovery program and other elements.

 

Telx’s locations covered by the SAS 70 report includes 60 Hudson Street, New York City; 111 Eighth Avenue, New York City; 56 Marietta Street, Atlanta; 350 East Cermak, Chicago; 600 South Federal, Chicago; 2323 Bryan Street, Dallas; 8435 North Stemmons Freeway, Dallas; 100 Delawanna Avenue, Clifton, New Jersey; 36 North East 2nd Street, Miami; 200 Paul Avenue, San Francisco; 600 West 7th Street, Los Angeles; and 120 East Van Buren Street, Phoenix.

 

Statement on Auditing Standards No. 70, or “SAS-70,” is an auditing statement issued by the Auditing Standards Board of the American Institute of Certified Public Accountants “AICPA.”  

 

In general, SAS-70 auditing statement defines the professional standards used by a service auditor to assess the internal controls of a service organization, such as hosted data centers, application service providers, managed security providers, insurance companies and so on, and then issues a service auditor report once the auditing is completed.  

 

Organizations dealing with financial transactions or critical data, such as Telx, are generally required to undergo stringent and high quality operations. Currently, SAS-70 is considered one of the most widely recognized auditing standards for service organizations.  

 

Moreover, SAS 70 provides authoritative guidance, which helps service companies to disclose their control activities as well as processes to their customers and their customers' auditors in a uniform reporting format.  

 

According to AICPA, there are two types of service auditor reports, Type I and Type II. The Type I service auditor’s report consists of opinion of the service auditor on the fairness of the presentation of the service organization's description of controls and the suitability of the design of the controls to achieve the specified control objectives.  

 

The Type II service auditor’s report includes Type I service auditor's report’s information and the service auditor's opinion on whether the specific controls were operating effectively during the period under review.  

 

The completion of Type II audit process of Telx’s nine data centers by the Weaver and Tidwell indicate that the company has been officially audited, attests to the design and operational effectiveness of procedures for security, controls and operations.

 

In addition, this audit certifies that Telx has implemented and follows these documented and controlled procedures in 12 locations in nine U.S. cities. This report indicates that Telx's colocation customers can now realize time and cost savings by eliminating the need for their own independent audits of these 12 facilities.

 

"Many colocation customers, specifically in the financial services, cloud provider, hosted software and content delivery industries, are required to conduct yearly audits of their vendor companies for their own internal purposes. This can be a costly and lengthy procedure," said Jason Schafer, senior analyst, datacenters for Tier1 Research. "In order to remain competitive, SAS 70 Type II Certification is a crucial element for today's colocation providers to enable their customers to save time and money."