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1 Measure to Manage II: Consolidation Crash Course? Sponsored by:

2 Introduction To save money, increase efficiencies, and fund the move to the cloud, the Federal government aims to eliminate 800 data centers by 2015 with 137 slated for closure this year. In March 2011, MeriTalk worked with NetApp to identify Federal consolidation progress, optimization metrics, and an estimated $18.8B savings opportunity. In May 2011, MeriTalk and NetApp surveyed 157 Federal IT decision makers to dig deeper into the metrics agencies use to measure consolidation savings and to determine if agencies are increasing efficiency as they consolidate. Do agencies know how much they are saving or the savings potential? Are they aware of all areas of impact? Can they re-invest the savings? 2

3 Contents 4 Executive Summary 5 Key Findings 12 Recommendations 13 Methodology and Demographics 3

4 Executive Summary Don t Know Where They Are: Consolidation should deliver savings across budget categories, but agencies need visible, standardized metrics to track the full benefits: Today, fewer than half of respondents track key data center efficiency metrics Just 23% say their IT department has systems in place to track full data center savings, including those beyond the scope of IT real estate, power, etc. Don t Know Where They Are Going: Lack of metrics makes tracking efficiency and savings impossible: 77% say they do not know Power Use Effectiveness (PUE) across their data centers Fewer than half of respondents track key storage efficiency metrics, such as capacity allocation and consumption, provisioning time, and incident metrics No Idea When They Will Arrive: Federal agencies should leverage private-sector best practices and create real incentives for the IT department to consolidate: 82% of the private sector* know their PUE vs. 23% of Federal agencies 94% of the private sector* know their average load across their data centers vs. 31% of Federal agencies Fewer than half (42%) of Federal IT decision makers agree that their departments have an incentive to achieve data center savings, including savings that will be realized by budgets outside of IT 4 * Market Awareness and Profile Study, February 2011, Digital Reality Trust.

5 Blind Spot While Federal IT decision makers may understand the benefits of consolidation, agencies need visibility beyond IT to capture hard savings numbers Just 23% of respondents say their IT department has systems in place to track full data center savings, including those realized outside of IT. In what areas will Federal data center consolidation yield the greatest savings?* Not controlled by IT Controlled by IT Partially controlled by IT? Take Away: Measure All Costs for Real Management Insight 5 * Respondents asked to select all that apply.

6 Blind Spots Today, agencies do not have a clear picture of current data center utilization What is your data center storage capacity currently utilized in your data center? 47% don t know average kilowatts per rack across your data centers? 67% don t know 71% don t know average load across your data centers? average server density? 69% don t know Take Away: Not Measuring the Most Important Things 6

7 Under the Hood In order to capture savings, agencies need to agree on the metrics to track What metrics are you tracking or will you track to identify savings from data center consolidation?* Annual hardware spending Physical server count Total operations/maintenance costs FTEs supporting each data center Annual storage spending Annual software spending Energy consumption Storage capacity utilized Storage capacity available Energy spending Network bandwidth Square footage utilized Computing capacity utilized Computing capacity available 34% 33% 32% 31% 26% 25% 21% 17% 17% 12% 12% 12% 43% 41% Not controlled by IT Partially controlled by IT Controlled by IT Take Away: Not Measuring the Same Things 7 * Respondents asked to select all that apply.

8 No Gas Gauge? Agencies lack of metrics makes determining data center efficiency impossible Energy consumes 12% of typical data center budgets.* However, 77% say they do not know their Power Use Effectiveness (PUE) across their data centers Which of the following metrics does your agency use to track data center storage efficiency?** Capacity consumption (41%) Capacity allocation (40%) Customer satisfaction (31%) Incident metrics (27%) Provisioning time (19%) Media ratios (10%) Copy count measures (9%) Scale-up-per-array measures (6%) We don t track (24%) Take Away: Standards Exist Why Not Use Them? 8 *Gartner Press Release: Gartner Says Energy-Related Costs Account for Approximately 12 Percent of Overall Data Center Expenditures. September 29, ( ** Respondents asked to select all that apply.

9 Why Not Follow The Map? The private sector has a better handle on data center efficiency metrics Private sector* Public sector PUE? 82% 23% Average load? 94% 31% Average server power density? What Do They Know*? 95% 29% % of respondents who can provide data on these metrics for their organizations Take Away: Drive on the Right 9 * Market Awareness and Profile Study, February 2011, Digital Reality Trust.

10 Create Clear Incentives Despite mandates, some Federal IT decision makers still do not see the incentive for consolidation The IT department has an incentive to achieve data center savings, including savings that will be realized by budgets outside of IT. We will offer excess capacity to other agencies. Fewer than half of Feds (42%) agree Just 16% say yes Take Away: Reward the Drivers 10

11 Cloudy Tomorrow? Agencies are unclear whether they are actually saving, and whether they can use those savings to fund cloud transition My agency will use savings from our data center consolidation efforts to help fund our move to cloud computing: Take Away: Uncertainty Creates Inaction 11

12 Calls to Action Standardize data center efficiency metrics Leverage private-sector best practices Provide IT leaders with visibility of non-it costs Communicate incentives and clarify savings reinvestment plans 12

13 Methodology and Demographics MeriTalk, on behalf of NetApp, conducted a survey in-person at the May 2011 Data Center Consolidation on a Dime event in Washington D.C., as well as through an online panel of government IT executives in April and May Total Sample: 157 respondents Margin of Error: +/ at 95% confidence Organization Type 65% Federal Civilian 26% Department of Defense/Intel 9% Systems Integrator 100% are familiar with their organization s data center technologies and plans 13

14 Thank You Steve O Keeffe MeriTalk (703) Kelly Smith MeriTalk (312)

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