Business Value Analysis TM Study

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1 Business Value Analysis TM Study Symantec Corporation The Green Data Center Sponsored by Research and Analysis Conducted by

2 Contents Executive Summary 3 Overview 3 Barriers 3 The Solution 3 Benefits 3 About Symantec Corporation 4 Business Drivers 4 Chart 1: Symantec s global goal is to reduce CO 2 emissions from 8% to 15% by the end of FY Reduce Data Center Energy Requirements 5 Lower Data Storage Costs and Energy Consumption 5 Manage Remote Location Storage 5 Reduce Server Sprawl 5 Support Corporate Responsibility 6 Technology Challenges 6 Minimize Hardware Needs and Energy Use 6 Manage Server Growth 6 Improve Utilization of Data Storage Resources 6 Consolidate Remote Location Backups 6 IT Transformation 6 Consolidate Data Center Facilities 7 Optimize Storage Utilization 7 Veritas Storage Foundation 7 Veritas CommandCentral 7 Symantec Enterprise Vaul 8 Reduce Backup Volume 8 Veritas NetBackup 8 Veritas NetBackup PureDisk 8 Reduce Server Footprint Through Virtualization 8 Virtualization and Lifecycle Replacement Policies 9 Reduce Power Consumption by Unused Desktop Equipment 9 Network Architecture Diagram 9 Figure 1: Symantec Architecture Diagram 9 IT Timeline 10 Business Value Analysis 10 NetBackup PureDisk Remote Backup Savings and Productivity Gains 10 Chart 2: Annual Hardware Cost Avoidance for Global Implementation of NetBackup PureDisk 11 Chart 3: Annual IT Productivity Gains for Global Implementation of NetBackup PureDisk 11 Maintenance Savings on Retired Hardware 12 Chart 4: Maintenance Cost Avoidance from Hardware Device Reduction 12 Labor Productivity Gains Related to Hardware Reductions 12 Chart 5: Labor Productivity Gains from Hardware Device Reduction 13 Power Savings Related to Energy Cost Avoidance 13 Chart 6: Energy Cost Avoidance from Hardware Device Reduction 13 Conclusion 14 Notes 14 Greg Malacane, Director, Research & Publishing Page 2

3 Executive Summary Overview Symantec is a global leader in infrastructure software, providing security, storage, and systems management solutions to help consumers and organizations secure and manage their information-driven world. The company helps customers protect their infrastructure, information, and interactions by delivering software and services that address risks to security, availability, compliance, and performance. Headquartered in Mountain View, California, Symantec has operations in more than 40 countries. The company s software-based approach to Green IT offers organizations various tools for streamlining the IT infrastructure and driving energy efficiencies to reduce energy costs and environmental footprints. Barriers To control rising energy costs, Symantec sought to minimize hardware needs and energy use and optimize performance in its data centers and elsewhere. The company looked for ways to improve efficiency in its energy use within the data center, not only to help reduce utility costs, but also to reduce overall carbon dioxide emissions as part of its corporate commitment to environmental responsibility. The Solution Seeking environmentally beneficial operational efficiencies and lower costs, Symantec implemented a series of significant steps that leveraged a number of its own data management technologies. The company began consolidating its data centers worldwide to achieve significant energy, IT, and real estate cost savings. The IT infrastructure team harnessed virtualization technologies to manage server growth and related energy consumption. To reduce its data storage footprint and related costs for power and cooling, the company leveraged Veritas NetBackup and NetBackup PureDisk for data deduplication; Symantec Enterprise Vault for single-instance archiving; and Veritas Storage Foundation and Veritas CommandCentral for optimal storage utilization. In addition, Symantec also deployed a custom power management profile on company PCs to eliminate energy waste from unused devices. Benefits As a result of its ongoing Green IT efforts, Symantec is achieving substantial business benefit. The Alchemy Solutions Group conducted a Total Operational and Economic Impact (T.O.E.I.) analysis and quantified realized and projected business value in the following areas between July 2007 and December 2011: Remote Site Backup Productivity Gains: $692,743 in hardware and media cost avoidance and $443,328 in labor productivity gains through global remote site backup with Veritas NetBackup PureDisk from July 2007 through December Hardware Maintenance Cost Savings: $12,358,000 in maintenance savings on retired server and storage hardware from August 2007 through December Labor Productivity Gains: $1,341,130 in IT productivity gains related to server and storage reduction from January 2008 through December Energy Cost Avoidance: $2,164,438 in utility cost avoidance through hardware device reduction and corresponding power consumption savings from August 2007 through December The decommissioning of hardware from a major data center closure reduced Symantec s overall device power utilization from approximately 500 kilowatt hours (kwh) to 168 kwh, a 67 percent reduction in energy consumption. 1 Further, by converting the cost of the kilowatts of electricity avoided to kilograms of carbon emissions, Symantec conservatively estimates a cumulative carbon footprint savings of 15.5 million kilograms of CO 2 from 2007 through Page 3

4 Fact File: Symantec Founded 1982, IPO in 1989 Headquarters Mountain View, California Ownership Public (NASDAQ: SYMC) Industry Infrastructure Software Market Global Rank World s fourth largest independent software company FY2009 Revenue $6.2 Billion, #419 on 2009 Fortune 500 list Full-time Employees 17,500 Website Reducing its Environmental Footprint: Symantec Milestones Fall 1994 Symantec becomes the 12th company worldwide to be certified to the ISO environmental management standard at its Dublin, Ireland manufacturing facility. October 2005 Dublin facility receives the first of several annual awards for environmentally responsible manufacturing and waste management. May 2006 Symantec joins the Sustainable Silicon Valley s Carbon Dioxide Reductions Initiative, pledging to reduce CO 2 emissions at corporate headquarters by 10 percent. August 2007 Symantec joins The Green Grid, a global consortium dedicated to advancing energy efficiency in data centers and business computing ecosystems. November 2007 Symantec releases the Green Data Center Report, highlighting opportunities for IT departments to build more energy efficient data centers. September 2007 Symantec s Springfield, Oregon site receives 2007 Energy Star Label from the Environmental Protection Agency (reawarded August 2008). June 2008 Symantec participates in Silicon Valley Leadership Group s first Data Center Energy Summit focused on issues involving data center sustainability, energy, efficiency, and green computing. July 2008 Symantec achieves LEED (Leadership in Energy and Environmental Design) Gold certification for new Culver City, California campus. September 2008 Symantec publishes its first Corporate Responsibility Report, underscoring the company s performance and leadership in promoting sustainability for the software industry. Spring 2009 Symantec builds Arizona Data Center Expansion to LEED Gold certification standards. April 2009 Symantec s Springfield, Oregon site receives LEED Gold certification for Existing Buildings. Finally, in addition to the benefits realized within the IT data center environment, Symantec also realized significant cost savings by stemming energy use at the IT endpoint. By deploying an automated power management profile that places company laptops and desktops in standby mode after four hours of inactivity, the company expects annual savings of $800,000 and more than 6 million kwh of energy per year. 3 About Symantec Corporation Symantec is a global leader in providing security, storage and systems management solutions to help customers ranging from consumers and small businesses to the largest global organizations secure and manage their information. The company s unique focus is to eliminate risks to information, technology, and processes independent of the device, platform, interaction, or location. Symantec s developing Green IT story offers strong evidence of the value software can play in the greening of the data center and elsewhere. The company s products currently utilize server and storage efficiencies that result in more energy-efficient data centers. Symantec products also move beyond the data center to help manage desktop power supply. Under the leadership of David Thompson, group president and CIO, Symantec Services Group, Symantec s IT leaders have been driving the evolution of the environmentally-conscious data center in support of the company s larger Corporate Responsibility initiative. Key Green IT team members include Sal Caruso, vice president of information technology; Jose Iglesias, vice president, global solutions; Sophia Abramovitz, senior director, office of the CTO; Dan Azevedo, director of data center architecture; Lee Buckland, senior manager, server, infrastructure, and operations; and Curt Helvey, storage and backup lead. Business Drivers With data center power consumption skyrocketing and utility costs soaring, Symantec looked to achieve significant cost savings through greater energy efficiency in its IT operations and improved utilization of the company s IT assets. Delivering those optimizations concurrently supported Symantec s overall corporate efforts to adopt more environmentally sound business practices and minimize its carbon footprint. Page 4

5 Chart 1: Symantec s global goal is to reduce CO 2 emissions from 8% to 15% by the end of FY12 4 Reduce Data Center Energy Requirements Energy cost is the second largest operational expense for CIOs, making data center efficiency a critical business priority. Symantec s older data centers that were not designed for the volume of newer miniaturized equipment were running out of power and cooling capabilities. At the same time, unused and underutilized data center resources consumed and wasted considerable energy. Symantec needed to make data center power use more efficient to accommodate normal business operations under mounting cost pressures. Lower Data Storage Costs and Energy Consumption Symantec s data center managers were running out of space even as data volumes continued to explode, particularly in the area of storage and backup. This data explosion not only drove up storagerelated costs but also escalated data center power and cooling requirements for related storage devices. Symantec needed to make more effective use of available software resources to address rising demands for both space and power. Green for data centers morphed out of efficiencies for Symantec and a lot of other companies. When we started building out the Arizona data center, we had an eye on operational efficiency. In the past few years we have tried to take Green IT into the mainstream as we ve gotten much more involved with the Green Grid and those types of activities. Dan Azevedo Director of Data Center Architecture Symantec Manage Remote Location Storage Symantec faced similar economic pressures from rising storage demands in its overseas locations. The company needed to control and reduce data center resource consumption in its remote sites in addition to its primary U.S. data center. Reduce Server Sprawl Physical servers not only consume power, but they also take up expensive floor space. Symantec needed to consolidate power-hungry server hardware and make more efficient use of existing server, software, and space resources to achieve both energy reduction and data center real estate savings. Page 5

6 Being able to reduce the usage of resources and yet still be able to do the same amount of work is something that s paramount to doing the right thing from a company perspective as well as from an earth perspective. Jose Iglesias Vice President, Global Solutions Symantec Support Corporate Responsibility As part of its overall environmental strategy a key component of the company s formal Corporate Responsibility initiative Symantec has been actively engaged in facilitating, influencing, and promoting Green IT practices since The company strives to set the right example to its customers and the larger community by being more environmentally responsible in its own data center operations. Technology Challenges While economic pressures and social responsibility goals were driving Symantec s internal green data center initiatives from a business perspective, the IT infrastructure team faced the challenge of identifying and deploying solutions to deliver the desired efficiencies and corresponding cost and energy reductions. Minimize Hardware Needs and Energy Use Aging data centers have older equipment that uses more power, while the greater capacity and heat generation of newer, miniaturized equipment increases the load on the data center s Heating, Ventilation, and Air Conditioning (HVAC) systems. Further, Symantec needed to address its unused data center hardware resources to eliminate energy waste. Looking at devices beyond the data center, IT also needed to leverage the ability to better control desktop PC energy usage by enabling power-down settings for idle equipment. Manage Server Growth Hardware reductions allow for a substantial reduction in power, cooling, and data center space needs. The IT infrastructure team sought to minimize new physical server installations by using virtualization technologies to consolidate the server environment and reduce the data center s overall environmental footprint. Improve Utilization of Data Storage Resources To reduce the need for additional power-hungry storage resources to accommodate explosive data growth, the IT infrastructure team sought to improve storage utilization rates in the company s existing hardware. Key objectives were the elimination of redundant data (particularly data) to obtain storage space efficiencies; the use of automated storage tiering hierarchies for different environments and types of data; and the identification and harvesting of unused orphan storage space. Consolidate Remote Location Backups Symantec sought to reduce backup infrastructure in some of its regional sites. Key target areas included more than a dozen sites in Symantec s Europe/Middle East/Africa (EMEA) geography. The company looked to implement a centralized solution for remote office backup and recovery processes, with the goal of reducing hardware, tape, labor, and overhead costs. Symantec s data center management products offer many environmental benefits, including power reduction through storage reclamation and tiering, server reductions via advanced clustering options, and tape efficiency via NetBackup, to name just a few. Joe Pasqua Vice President of Technology Strategy Symantec IT Transformation In its 2007 Green Data Center report, Symantec defined such a facility as one having increased efficiencies in energy usage, power consumption, space utilization, and reduction of polluting energy sources. Symantec began its internal green data center transformation in 2006, using hardware-based solutions and the company s own infrastructure management software to minimize energy use, reduce utility bills, and optimize data center performance. Page 6

7 Orphan storage is a particular area [with CommandCentral] where we found lots of pockets of storage that were assigned and never used. We were able to go in there and clean it up and return a fair amount of storage to production use. In 2007, Thompson s IT team made the decision to close its second-largest data center in Sunnyvale, California and establish its Arizona site as Symantec s primary corporate data center. This integration centralized all backup storage functions and related consolidation and tiering activity at one major site. Prior to this consolidation, Symantec had begun a phased corporate-wide deployment of its own Symantec Enterprise Vault archiving solution to reduce soaring storage costs, among other business drivers. The company leveraged several other Symantec data center technologies, including Veritas NetBackup and NetBackup PureDisk, Veritas Storage Foundation, and Veritas CommandCentral, to help the company realize significant energy savings in targeted areas. Extending beyond the data center, the IT team took further steps to reduce utility bills by eliminating power consumption from unused devices such as PCs left on overnight. Consolidate Data Center Facilities In August 2007, Symantec closed its second-largest data center, a 10,000 square foot facility in Sunnyvale, California. That center s device count was reduced from 1,635 to 352 devices. Of those remaining, Symantec deployed 200 to the primary U.S. data center in Arizona and sent 152 devices to other data center sites. The consolidation delivered significant savings in real estate, energy, and IT operating costs, as well as related reductions in greenhouse gas emissions. Symantec also closed a co-located data center in the United Kingdom in October 2007 and eliminated 10 servers without needing to deploy them to another data center. The company closed five smaller data centers in the U.S. in 2008 and is looking to consolidate additional data center locations in Optimize Storage Utilization To lower the energy intensity of its data centers, Symantec turned to its own software tools to get more out of its computer hardware and minimize energy use. The company employed the following products in order to improve storage utilization for greater operational and energy efficiency. Veritas Storage Foundation Veritas Storage Foundation, Symantec s storage management solution, provides storage tiering to move non-critical data to less energy-demanding storage sites. Using dynamic information lifecycle storage tiering, Symantec s IT team was able to utilize different classes of storage hardware to obtain power savings and to decommission older hardware. Veritas CommandCentral Veritas CommandCentral is a storage resource management solution providing centralized visibility and control across heterogeneous physical and virtual storage environments. Implemented by Symantec in 2005, the software enables IT administrators to find regions of inactive data and wasted space and utilize those memory assets more efficiently. Through better visibility into storage utilization, IT administrators were able to find assigned pockets of storage that were never used which could be returned to production. By identifying this available storage, CommandCentral was able to drive the decommissioning in 2008 of 11 Hitachi 9585 storage arrays with 22 cabinets of physical storage space. In addition, Symantec migrated and consolidated data from dedicated storage islands into a pooled storage infrastructure, thereby getting more out of its computer hardware while minimizing energy use and power costs. Curt Helvey Storage and Backup Lead Symantec CommandCentral also eliminated the labor-intensive effort of manually collecting inventory data from 70 arrays in the Arizona data center. This move provided the ability to see the data and make storage allocation decisions in real time to best manage hardware requirements and related energy consumption. Page 7

8 Symantec Enterprise Vault Symantec s corporate-wide implementation of its Enterprise Vault and archiving solution in 2007 transformed the company s mail management practices and systems. By eliminating the need to store duplicate messages, the software significantly reduced Symantec s storage hardware and power requirements. Enterprise Vault 8.0 provides single-instance archiving across all content sources and vault stores, and the company expects to further reduce storage consumption. We ve deployed PureDisk software agent to many sites in EMEA and a number of sites in North America so that we can get rid of backup infrastructure at the regional sites. That s been quite a success story. We re in the process of getting PureDisk Deduplication Option (PDDO) implemented and we have high expectations of what that rate is going to be. Dan Azevedo Director of Data Center Architecture Symantec Reduce Backup Volume While traditional backup methodologies can lead to backing up and storing the same data over and over, the data deduplication technology embedded in Symantec backup software reduces the disk space needed for storage by eliminating redundant data in memory. Veritas NetBackup Symantec integrated Veritas NetBackup technology into its data center in With Symantec s current data volume at two petabytes (PB) and growing at three percent per month, the use of this technology was crucial for efficient use of storage space and managing the need for additional powerhungry storage hardware. Veritas NetBackup PureDisk Symantec deployed Veritas NetBackup PureDisk in 2007 to enable efficient data backup with deduplication and to facilitate reductions in backup volumes for Symantec s remote office and virtual environments. The product has been deployed to date in the company s Microsoft Windows and Linux environments. We developed a power profile which we pushed down to all of our endpoints so that they will go to standby mode or power off completely, depending on the users and how they use the machines. We use Altiris Client Management Suite to continually push down that power profile to machines on a monthly basis. Lee Buckland Senior Manager, Server, Infrastructure, and Operations Symantec Among its remote locations, Symantec currently has 25 remote sites with 5 TB of data, with a five percent annual growth rate. The company deployed the PureDisk agent in 2007 to more than a dozen sites in Symantec s EMEA region to eliminate the backup infrastructure in those locations. In the two years since deployment, the PureDisk installation enabled the EMEA sites to eliminate tape media and to decommission energy-hungry backup hardware. Administrative efficiency vastly improved, with reductions in overhead and labor requirements for backup. Deployment in the U.S. began with two sites in 2008 with an additional seven locations scheduled in A phased implementation of NetBackup PureDisk for the Asia/Pacific/Japan (APJ) geography began in 2009 and will consolidate file servers from Symantec s Japan, Australia, New Zealand, Korea, Taiwan, and China offices in the company s APJ Data Center. In addition, global data deduplication at the source, on target servers using PureDisk clients, significantly reduced Symantec s network requirements for backup of distributed servers and applications. Symantec is currently experiencing a 35 percent data deduplication rate through the phased global deployment of NetBackup PureDisk, with an expectation that the percentage will increase as the deployment reaches all planned remote office locations. Reduce Server Footprint Through Virtualization Symantec s IT infrastructure team was challenged to reduce energy consumption by consolidating existing hardware resources wherever possible. The team applied virtualization technologies to consolidate a number of underutilized servers into fewer fully-utilized physical servers. Page 8

9 Virtualization and Lifecycle Replacement Policies Over the past two years, Symantec has implemented virtualization technologies to increase server utilization by pooling applications onto fewer physical machines. In this way, the company has avoided new server purchases and related energy consumption. In addition, the company instigated a lifecycle replacement policy that will see servers offering greater capabilities for power management supplanting less energy-efficient servers. Reduce Power Consumption by Unused Desktop Equipment In 2007, Symantec sought to decrease the amount of energy consumed by idle desktop devices, based on the results of an internal audit that showed 60 percent of Symantec user systems were left on overnight during the week, and 48 percent were left on during weekends. In June of that year, the company deployed a custom power management profile in its San Francisco Bay Area, California locations which put PCs into standby mode after four hours of inactivity. Subsequent to the company s 2007 acquisition of Altiris, Symantec deployed the Altiris Client Management Suite to push down the corporate PC power profile on a monthly basis. This capability reduces energy waste by resetting the power profile back to baseline for individual users who needed to change their power profile for a specific situation or project. Network Architecture Diagram Symantec Enterprise Vault is used to archive Microsoft Exchange for more than 17,500 employees and contractors. Symantec Enterprise Vault Discovery Accelerator enables e-discovery of of archived storage used for for HR, HR, legal, legal, and and other other-related related requests. requests. Primary Data Center in Arizona Various Storage Systems and Arrays Data CenterEnvironment Storage Environment Various Storage Systems and Arrays Veritas CommandCentral provides integrated storage capacity management, storage resource management, performance and policy management, and business reporting for optimal storage utilization and efficiency. Regional Data Centers in APJ and EMEA Veritas Storage Foundation is used for heterogeneous storage management at the host. It is used for online configuration and administration, dynamic storage tiering, data migration, and local and remote data replication. Veritas NetBackup is used for all backup and recovery, including diskand tape-based data protection. Veritas NetBackup PureDisk is used for remote office backup and recovery. Altiris Client Management Suite is used to push down the corporate PC power profile to more than 17,500 desktops and laptops on a monthly basis; each system goes into standby mode after four hours of inactivity. Figure 1: Symantec Architecture Diagram Page 9

10 IT Timeline Fall 1990 Symantec deploys Storage Foundation (originally Veritas Volume Manager and Veritas File System) July 2005 Symantec deploys Veritas NetBackup May 2007 Symantec deploys Veritas CommandCentral August 2007 Symantec deploys Symantec Enterprise Vault for archiving and e-discovery August 2007 Symantec closes second-largest data center in Sunnyvale, California June 2007 Symantec deploys Veritas NetBackup PureDisk in EMEA January 2008 Symantec begins U.S. deployment of NetBackup PureDisk to two sites, with seven additional sites scheduled for 2009 Business Value Analysis Symantec is achieving substantial business value as a result of its ongoing Green IT efforts. A Total Operational and Economic Impact (T.O.E.I.) TM analysis by The Alchemy Solutions Group quantifies the following areas where business value has been or will be realized: Cost avoidance and productivity gains through global remote site backups Maintenance savings on retired server and storage hardware Productivity gains through server and storage reduction Energy cost avoidance through hardware reduction Global financial data was provided by Symantec and reported in U.S. dollars, and all cost savings in this analysis are expressed in U.S. dollars. Calculations for U.S.-based full time equivalent (FTE) labor productivity savings are based on an average net mean salary of $69,570 5 and a percent average yearto-year salary increase. Calculations for EMEA-based FTE labor productivity savings are based on a European Union average net mean salary of $51,295 7 and a percent average year-to-year salary increase. NetBackup PureDisk Remote Backup Savings and Productivity Gains Veritas NetBackup PureDisk enables backup of remote office data without a local application or tape media. As part of its overall productivity and energy efficiency initiative, Symantec is in the process of eliminating backup servers, tape libraries, and tapes throughout its remote offices across EMEA. This centralized backup strategy using NetBackup PureDisk is delivering significant hardware savings and labor productivity gains. Those of us in IT who are responsible for setting computing standards can take action today that can have positive environmental impact. Just by standardizing on more efficient servers or consolidating and reducing the number of applications we run, we can begin to make a difference today. Sal Caruso Vice President of Information Technology Symantec Symantec deployed NetBackup PureDisk to 12 EMEA sites in July 2007, saving an average of more than $7,000 per site in backup and tape hardware, tape media, and maintenance on an annual basis. Deployment to five additional EMEA sites was completed in 2008, saving nearly $6,500 annually per site. Deployment in the U.S. began with two sites in 2008, followed by seven more sites in 2009, yielding annual savings comparable to those in EMEA at $7,000 per site. The APJ deployment, begun in 2009, is saving $8,620 in tape infrastructure and vaulting costs plus $87,737 in consolidation of backup servers and software from seven locations in the region. Chart 2 illustrates anticipated hardware cost avoidance from this centralized backup strategy using NetBackup PureDisk. Page 10

11 Global deployment of NetBackup PureDisk began in the EMEA region with 12 sites in mid-2007 and five additional sites in Two U.S. sites were deployed in 2008 with seven locations scheduled in Annual savings for EMEA and the U.S. average $7,000 per site in eliminated backup and tape library hardware maintenance and offsite service and media costs. Starting in 2009, a phased implementation of NetBackup PureDisk for the APJ region will deliver more than $95,000 annually through hardware consolidation and media cost avoidance. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ EMEA Hardware and Media Cost Avoidance US Hardware and Media Cost Avoidance APJ Hardware and Media Cost Avoidance $42,716 $85,432 $117,904 $32,472 $14,239 $49,835 $64,074 $95,357 $95,357 $95,357 Chart 2: Annual Hardware Cost Avoidance for Global Implementation of NetBackup PureDisk In addition to the infrastructure cost savings achieved by eliminating multiple tape devices, offsite storage services, and hardware-related expenses, all EMEA sites (12 in 2007 Phase 1 and five in 2008 Phase 2) realized a 99 percent reduction in weekly administrative time for managing backup infrastructure in the region from 50 hours per week to 30 minutes per week per site. Deployed U.S. sites (two in 2008 and seven in 2009) realized a 98 percent reduction in backup administration time from 26 hours per week to 30 minutes per week per site. Beginning in 2009, APJ will realize an average of $21,920 annually on backup administration. When all global sites are deployed with NetBackup PureDisk, The Alchemy Solutions Group estimates productivity gains realized and projected to be $443,328 from July 2007 through December In addition to the hardware and media cost avoidance, the global deployment of NetBackup PureDisk has also led to IT productivity gains. In EMEA, the IT team realized a 99% reduction in remote location administration time, from 50 hours per week to 30 minutes. In the U.S. sites, weekly administration time was reduced 98% from 26 hours to 30 minutes. Beginning in 2009, APJ will realize an average savings of $21,920 annually on backup administration. $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ EMEA IT Labor Productivity Gains $22,964 $66,691 $68,358 $70,067 US IT Labor Productivity Gains $9,736 $45,169 $46,570 $48,013 APJ IT Labor Productivity Gains $21,920 $21,920 $21,920 Chart 3: Annual IT Productivity Gains for Global Implementation of NetBackup PureDisk Page 11

12 Maintenance Savings on Retired Hardware Symantec s IT department manages multiple data centers worldwide that support key business applications. As part of a larger data center consolidation strategy to conserve energy and other resources, the company closed its second-largest data center located in Sunnyvale, California in August The move resulted in a major hardware device count reduction from 1,635 to 352 devices and a corresponding reduction in energy consumption. As part of ongoing storage consolidation activities using virtualization and its own storage management tools, Symantec subsequently retired a number of storage units in its Arizona data center and several Security Operations Center (SOC) servers in various locations. The decommissioning of this excess hardware which was recycled, donated, or scrapped enabled Symantec to avoid significant maintenance costs. On average, Symantec s annual cost of maintaining existing data center hardware is 15 percent of each device s unit cost. Over an 18-month period between 2007 and 2009, the company retired the following devices (unit cost and maintenance fees provided by Symantec, May 2009): 2007: 1,283 $10,000 unit cost (annual maintenance = $1,500 each) 2008: 11 Hitachi 9500-series storage arrays with 10 fully-loaded $350,000 unit cost (annual maintenance = $52,500 each) 2008: 10 SOC $10,000 unit cost (annual maintenance = $1,500 each) 2009: 58 Hitachi 9500v storage arrays with 10 fully-loaded $350,000 unit cost (annual maintenance = $52,500 each) The following chart reflects a three-year span of maintenance costs avoided at 15 percent of unit cost per year. The Alchemy Solutions Group projects that by retiring this excess equipment, Symantec will have avoided from $2 million to $5.5 million in annual hardware maintenance costs between August 2007 and December Through a significant consolidation of hardware servers and storage units, Symantec is avoiding maintenance costs for retired hardware based on an average maintenance fee of 15% of unit costs. Symantec retired 1,283 servers in 2007 at an average cost of $10,000 each. Improved storage utilization led to the elimination of 11 Hitachi 9500v storage arrays in 2008 and an additional 58 arrays in 2009, at an average cost of $350,000 per unit. The company also decommissioned 10 SOC servers in 2008 at an average cost of $10,000 each. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ SOC Server Maintenance Cost $15,000 $15,000 $15,000 Avoidance Server Maintenance Cost Avoidance $641,500 $1,924,500 $1,924,500 Storage Maintenance Cost Avoidance $577,500 $3,622,500 $3,622,500 Chart 4: Maintenance Cost Avoidance from Hardware Device Reduction Labor Productivity Gains Related to Hardware Reductions The reduction of servers and storage units delivers IT productivity gains in each area by freeing up IT staff time to focus on other core responsibilities. With the elimination of surplus hardware, five FTEs each save 10 hours weekly in server administration and an additional 10 hours weekly in storage administration, for a total of 5,200 hours per year in recovered IT staff time. When the number of SOC servers was reduced from 13 to 3, IT was able to reallocate four FTEs to other IT tasks with a corresponding productivity Page 12

13 gain of four annual salaries. The Alchemy Solutions Group calculates that the combined efforts to reduce overall data center hardware will have yielded more than $1.3 million in IT labor productivity gains from August 2007 to December Through the reduction of servers and storage, IT realized productivity gains that allowed IT staff to focus on other projects. Five FTEs each save 10 hours per week in server administration and 10 hours per week in storage administration. Similarly, when Symantec reduced the number of SOC servers from 13 to 3, IT was able to reallocate four FTEs, gaining the productivity equivalent of four annual salaries. $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ IT Server Labor Productivity Gains $28,988 $89,658 $92,438 IT SOC Labor Productivity Gains $278,280 $286,907 $295,801 IT Storage Labor Productivity Gains $86,963 $89,658 $92,438 Chart 5: Labor Productivity Gains from Hardware Device Reduction Power Savings Related to Energy Cost Avoidance Removing substantial quantities of hardware from Symantec s inventory has resulted in utility cost savings and a corresponding reduction of carbon dioxide emissions. Power Usage Effectiveness A metric used to measure data center efficiency is the Power Usage Effectiveness (PUE) equation. The PUE is defined as Total Facility Power divided by IT Equipment Power, where Total Facility Power is the power dedicated to supporting the data center, and IT Equipment Power is the load associated with all of the IT equipment. For example, if a PUE is determined to be 3.0, this indicates that the data center demand is three times greater than the energy necessary to power just the IT equipment. The ratio can be used as a multiplier for calculating the real impact of the system s power demands. 8 The 2007 closure of Symantec s second largest data center in Sunnyvale, California reduced the number of power-consuming devices by 1,283 servers. The resulting energy savings is calculated by multiplying the number of retired servers by a Power Usage Effectiveness (PUE) factor of 2.5, a server uptime of 99 percent, and the actual cost in cents per kwh for electricity in California for each of the years from 2007 through Storage consolidation in 2008 led to the retirement of 11 Hitachi 9500v Thunder units containing 132 TB of storage; in 2009 an additional 58 units will have been eliminated, reducing Symantec s overall storage total by 800 TB. Because power consumption in storage units is a factor of storage volume, energy savings for these units is calculated by using an annual, average power usage of 75 watts per TB, then multiplying by a PUE factor of 2.5, an uptime of 99 percent, and the actual cents per kwh for electricity in Arizona for each of the years from 2008 through The Alchemy Solutions Group projects that the energy cost Symantec avoided by the retirement of a large number of servers and storage units since 2007 will exceed $2.1 million between August 2007 and December Page 13

14 Symantec has removed a significant number of power-hungry hardware devices from its data center. The resulting energy savings for servers is calculated by multiplying the number of retired units by a PUE factor of 2.5, uptime of 99%, and the average cents per kilowatt hour (kwh) for electricity in the server location (either California or Arizona). Because power costs for storage units are a factor of storage volume, the formula uses a watts per TB and cost-per-watt for retired storage. Symantec stands to avoid more than $2.1 million in energy costs by having retired 1,293 servers and 69 storage arrays between 2007 and $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Server Energy Cost Avoidance $255,145 $805,723 $855,295 Storage Energy Cost Avoidance $17,601 $112,524 $118,151 Chart 6: Energy Cost Avoidance from Hardware Device Reduction 9,10 Conclusion Data centers are voracious users of energy, and like many corporations, Symantec was facing everincreasing financial pressures from power usage and power cost. The company successfully applied software and systems solutions to change the way energy-consuming IT assets are used and make more efficient use of existing resources. The company obtained, or will obtain, sustained energy savings and environmental benefits from its Green IT initiatives from July 2007 to December 2011, including: Remote Site Backup Productivity Gains: $692,743 in hardware and media cost avoidance and $443,328 in labor productivity gains through global remote site backup with NetBackup PureDisk from July 2007 through December Hardware Maintenance Cost Savings: $12,358,000 in maintenance savings on retired server and storage hardware from August 2007 through December Labor Productivity Gains: $1,341,130 in IT productivity gains related to server and storage reduction from January 2008 through December Energy Cost Avoidance: $2,164,438 in utility cost avoidance through hardware device reduction and corresponding power consumption savings from August 2007 through December Notes 1. FY08 Symantec IT Year in Review (internal report from Symantec Corporation). 2. Calculations for converting electricity consumption to carbon dioxide emissions provided by Symantec. Natural gas is used for the calculation. 3. Symantec Corporation 2008 Corporate Responsibility Report. 4. Chart details provided by Symantec and based on average pounds of carbon emissions per square foot generated by utility consumption. 5. Bureau of Labor Statistics, May 2008, National net mean salary. U.S. Department of Labor, 6. Bureau of Labor Statistics, May 2008, Year-to-year salary increase. U.S. Department of Labor, 7. European Union average gross annual earnings. 2007, Eurostat, 8. White Paper: Green Grid Data Center Power Efficiency Metrics: PUE and DCIE. The Green Grid, Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, March 2009 and Department of Energy, epmxlfile5_6_a.xls - Table 5.6.A. 10. Watt usage per unit: White Paper: Energy Efficiency in Data Centers: A New Policy Frontier. Alliance to Save Energy, January Page 14

15 The Alchemy Solutions Group The Alchemy Solutions Group is a global strategic consulting company providing a variety of services including market research and publishing to Fortune 1000 companies. Alchemy has the industry knowledge and expertise to enable program support for organizations with a high client touch ratio in sales, marketing, and customer support. The Total Operational and Economic Impact (T.O.E.I.) TM Research and Publishing Practice delivers both public and private research services which measure a product s positive and potentially negative impact in post-implementation environments. An example of the public communication mediums is the Business Value Analysis (BVA) ṬM Alchemy leverages deep industry expertise and formal research best practices to understand the key attributes of and constraints on corporate performance. T.O.E.I. research enables our clients to drive value-based education and integrated marketing best practices. Stanley King Managing Director As MD of The Alchemy Solutions Group, Stanley is responsible for establishing strategic relationships with executives who are committed to understanding the economic impact that products and services have in the global supply chain. Stanley s international sales and marketing experience and T.O.E.I. research provide industry executives the candid insight required to help transform their employees, customers, and extended supply chain based on the research findings. The repurposing of T.O.E.I. research has proven valuable to product development, product marketing, enterprise sales, and customer support organizations. Prior to founding The Alchemy Solutions Group, Stanley served in the software industry for 19 years in mergers & acquisitions, executive management, field operations, sales management, and sales. His global experience in large companies like Oracle and in smaller firms, including technology start-ups, allows him to bring a wealth of insight to the support of Research and Publishing efforts at The Alchemy Solutions Group. The information contained herein is subject to change without notice. The only warranties for products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. The Alchemy Solutions Group and Symantec shall not be liable for technical or editorial errors or omissions contained herein. Greg Malacane, Director, Research & Publishing Symantec Document Page 15

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