Data Center Consolidation: Lessons From The Field. John Tsiofas, Kraft Kennedy David Carlson, Kraft Kennedy

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1 Data Center Consolidation: Lessons From The Field John Tsiofas, Kraft Kennedy David Carlson, Kraft Kennedy

2 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

3 Data Center Model Evolution Know where are you along this evolutionary line. Single Data Center Distributed Data Centers Centralized Data Centers (with Redundancies) Consolidated Data Centers (With redundancies) Cloud Computing

4 Justifying a Change Different drivers can serve as the catalyst for this type of initiative Rarely is this a cost saving / cost reduction exercise It can be a cost containment exercise There are also natural times to consider a change in data center strategy Major server hardware refresh required Investment in high availability or disaster recovery is required Upgrades required to data center HVAC systems Office space lease expiry or office relocation is approaching Complexity of current environment too high: operational, backup & recovery Lack of growth and flexibility

5 Factors to Consider Strategic Value Diversification of technology & people Leverage of technology investments Reduce impact to other offices Resiliency of business to relocate or set up new offices Risk Profile of Location Risk avoidance Safer facility Purpose built Less people, less attention, fewer variables Physical Security Fewer people, less attention Better facilities and procedures to protect contents

6 Factors to Consider Power Quality and Redundancy Access to grid Redundancy of power Quality of power Reduction of power use (green data centers or less waste) HVAC capacity and Redundancy Redundancy of HVAC systems Quality and reliability of HVAC Communications redundancy Availability of multiple vendor POP s NOC monitoring

7 Factors to Consider Data Center Operations Quality (SLA Levels) Reliability of procedures and tools Best use of core competencies Growth options - Minimal investments required to grow data center needs - Space, power & resources to support it are now flexible Access to Additional Services - NOC / Smart hands 24/7, - Network security monitoring - Managed storage Costs

8 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

9 Top Priorities for CIOs Cost Reduction Disaster Recovery / BC Server Virtualization Server Consolidation Business Intelligence Data Center Consolidation HIGH Priority MEDIUM Priority LOW Priority Data Warehousing Security CRM Software WAN Optimization Storage Hardware Desktop Virtualization Data De-Duplication Voice-Over-IP Governance / Compliance Source: Goldman Sachs Global Investment Research 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10 Strategic Planning Virtualization Messaging Desktop Computing Server Infrastructure Disaster Recovery Litigation Support Other factors Security and Network Infrastructure, Wide Area Networking, Storage Area Networking, Facilities, Power/Cooling, Database Systems

11 Strategic Planning Server Infrastructure Server consolidation High availability Disaster recovery Directory services

12 Strategic Planning Virtualization Server consolidation Regionalization Disaster recovery Virtual desktop infrastructure

13 Strategic Planning Desktop Computing Application presentation Application virtualization Virtual desktop infrastructure Disaster recovery and remote access

14 Strategic Planning Disaster Recovery Site resiliency High availability Offsite replication Business continuity

15 Strategic Planning Messaging / Unified Communication consolidation IM, Presence, Telephony Web and audio conferencing Archiving

16 Strategic Planning Litigation Support Storage consolidation Storage virtualization Application publishing WAN Optimization

17 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

18 Divide and Concur This will likely be one of the largest, most complex project your IT group will ever handle. A divide and concur approach is critical Plan to include: IT staff from multiple group and offices People from other departments (even as advisors) Outside vendors and advisors

19 Identify Streams of Activity Common Streams Can Include: Data Center Build Out Network Servers / Virtualization Storage Applications Messaging Document Management Others Desktop Migration / relocation Disaster Recovery Contract negotiations

20 Sample Timeline per Stream

21 Building a Project Team Group streams of anticipated activity into teams Identify a clear leader for each team Ideally, team leads should be members of the firm This helps with knowledge transfer and the development of skills Team leads should be responsible for: Ensuring require team documentation is produced Attending weekly or bi-weekly team leader and Project Manager meeting Raising alerts when team is off track or runs into obstacles Tracking work of team members on a daily basis Communicating status, obstacles, successes and key knowledge acquired Appoint an overall Project Leader (not the project sponsor) Must understand vision of what is being built May also serve as project architect or work closely with one May also server as Project Manager or work closely with one (or more)

22 Building a Project Team Each team should document what they will achieve / deliver It should be detailed enough to serve as a checklist for when they are done It should detail also how it will fit into the work of the other teams It should include their assumptions for each other team It needs to be their document, not yours Involve people from various internal teams / disciplines Involve people from other offices Consider using project to introduce New Project Management techniques Virtual teams concept New Communications protocols New meeting strategies / disciplines New Change Control

23 Quality Assurance Most of us agree that we are the worst people to proof or review our own work Assigning someone to serve a QA / review role for each team is very valuable It can be a member of another team, a dedicated reviewer to review work of all teams, or the project leader. A team s deliverable should not be accepted as done unless the reviewer approves it.

24 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

25 Value Vendors Provide They know their products better than anyone can help you avoid common mistakes can advise on best approaches and solutions They see many different environments They have resources that may be able to assist at key times They will play a key role in educating your staff They can help reduce your costs by: Temporary expertise Avoiding mistakes and misconfiguration Accelerating trouble shooting efforts

26 Using Vendors Effectively Involve all vendors early in the planning Think about when you would want to be involved in a large project The later they provide their input, the more it will cost you Even if their role will be later in the project, tell them early Share your big picture strategy with them Giving them information on a need to know basis is like asking them to help you with blind folds on. If you pick the right vendors, you should not have concerns about sharing key information with them Ensure the relationship with each vendor is being carefully managed Carefully consider who will be the single, day to day contact Ensure that is also an open line of communication to the Project Leader

27 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

28 Managing The Project An experienced project manager is a must A project manager who has been through this type of project before can be the key to success Allow time to plan Resist temptation to: start building, place orders, design systems

29 Key Documents to Consider Project Definition Document(s) for each team Goals, Deliverables, Assumptions, Requirements, Dependencies, Risks, Budget, Timeline, Technical design Master Project Schedule Project Schedule for each team (for very large projects) Master Issue and Risk log Budget Tracking & Summary Consolidated timeline Regular status report Key Accomplishment, Next objectives, Active Risks

30 Agenda Factors to consider Technology strategy Building a project team How to use vendors wisely Managing the project Next evolutionary stage of the datacenter

31 Industry Insight You will need to start leading your organization safely in this [cloud computing] inevitable direction, or risk being sidelined by its progress - Mark Raskino, Gartner CIO New Years Resolutions 2009 The cloud is about business model flexibility. We're not saying that everything needs to be in the cloud, but this is going to be the new approach for delivering IT " - Judy O'Brien Chavis, DELL OpenSource World Conference (Aug 09)

32 Data Center Architectures Yesterday Current Trending On-Premises Data Centers Colo and Remote Data Centers Hosted and Cloud Infrastructure

33 Distributed Architecture London Corporate WAN / Internet Los Angeles New York

34 Consolidated Architecture Colo Facility Corporate WAN / Internet Los Angeles New York London

35 Cloud Computing Los Angeles New York London VPN WAN Internet Multi-tenant Infrastructure Hosted Infrastructure/Applications Public Cloud

36 Cloud computing defined A style of computing where scalable and elastic IT capabilities are provided as a service to multiple customers using Internet technologies To be considered a cloud model, some basic criteria typically need to be met: Scalability Can easily grow in response to increased demand Elasticity Can dynamically acquire or release compute resources on-demand Fully Managed You don t typically own, operate or maintain the system Costs Sold on demand without capital expenditure and pay-as-you-go model Highly Available - Loss of any one component will not result in systems failure.

37 ? as a Service IaaS PaaS SaaS Infrastructure as a Service Platform as a Service Software+Services Software as a Service

38 Why the trend?

39 Comparing Costs IaaS vs. On Premise Unit Cost Monthly Cost Compute $0.08 $0.19 / hour $180.00/month Storage $0.15 $0.17 / GB $13.50/month Data Transfer $0.17 $0.50 / GB $25.00/month Source: GoGrid, Amazon Cloud Server Total Costs On-Premise Server Total Costs 1 year: $ year: $7866 $5800* *Costs not included: server operating system, network, bandwidth, power/cooling, facilities and operating expenses

40 Considerations Not necessarily a reduction in costs Other expenses need to be considered: colocation, SAN, networking, racks, power, cooling, operating costs, maintenance Service Levels what can you provide today vs. what can cloud computing offer? Staffing and maintenance how much does this help you? Focus on strategic initiatives. Customization and privacy concerns Trouble in the cloud outages, systems compromised

41 Where is this going? CIOs want to get out of the data center business. Organizations cannot afford the costs nor desire to maintain systems with the complexity required to provide necessary service levels. Offerings maturing quickly; organizations beginning to adopt cloud and Software as a Service and perimeter, conference services, CRM, archiving. backup Blended cloud and on-premise environments for the near term

42 Lessons Learned Involve key decisions makers early Involve project managers before work begins Allow extra time for major milestones to be completed Stay involved with contract negotiations Carefully consider staff augmentation strategies Test in QA, validate in production Lowest cost option is not always the best IT staff are poor pilot users

43 Questions John Tsiofas, Strategic Consultant David Carlson, Solution blogs.kraftkennedy.com

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