COMMODITIZING THE DATACENTER. Exploring the Impacts of the Shift to Virtualization and Cloud Computing

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COMMODITIZING THE DATACENTER Exploring the Impacts of the Shift to Virtualization and Cloud Computing 3/5/2015

AGENDA Changing Environments What Is The Datacenter Why Do We Use Them Adapting To A Changing Environment Determining The Right Approach Questions 3/5/2015 2

DATACENTERS CHANGING ENVIRONMENTS

CHANGING ENVIRONMENTS Datacenters are continuing to grow at an expanding rate. The need for computing power and access to data continues to become more vital in our society. 3/5/2015 4

CHANGING ENVIRONMENTS Surveys show that innovation and improvements are needed, but the top drivers are not a focus IT Systems have remained consistent for many years. Disruptive change is now here in the IT environment. 3/5/2015 5

CHANGING ENVIRONMENTS The Datacenter is becoming less critical as datacenters become more critical. What serves a business need is not the datacenter, the server, or the network. The business need is served by the applications and the output from those applications. 3/5/2015 6

CHANGING ENVIRONMENTS IT Platforms are moving away from hardware dependency Multiple pieces of hardware to boost computing power Redundancy via IT hardware to maintain availability Communication protocols removing proximity limits Real time processing and replication across vast distances 3/5/2015 7

CHANGING ENVIRONMENTS Removing the Dependency of IT from Hardware More computing power More scalability More consistency More availability More speed More flexibility 3/5/2015 8

CHANGING ENVIRONMENTS Emerging technologies and innovative design concepts are created to meet the needs of the ever changing systems that they are used to support. These innovations need to be evaluated based on their benefits as well as understanding any risks they may create. 3/5/2015 9

DATACENTERS WHY DO WE HAVE THEM?

WHY DO WE HAVE THEM A Business need requires computing power and data storage to maintain business operations Computers can process information faster than people Analyzing data, trends, etc. faster using computers Easier to share information between business, colleagues, and customers. Syska Hennessy Group / 3/5/2015 11

WHY DO WE HAVE THEM Computers Can Be Used To: Improve efficiency Manage processes Track transitions Manage Business Growth Increase visibility to vital business KPIs. Provide a service Syska Hennessy Group / 3/5/2015 12

WHY DO WE HAVE THEM How Do We Identify a Datacenter Large purpose constructed facility Grouped computers and storage Generators, UPS, PDUs Air Handlers, CRAHs, Chillers Monitoring and Control Security Minimal Personnel Syska Hennessy Group / 3/5/2015 13

WHY DO WE HAVE THEM What Makes Up a Datacenter Diverse Paths Redundant Communication Fault Tolerance Real Time Monitoring Secured/Limited Access Latest Technology Innovative Designs Syska Hennessy Group / 3/5/2015 14

WHY DO WE HAVE THEM Use the Datacenter to attack the real business need INCREASE PROFITS REDUCE RISK Syska Hennessy Group / 3/5/2015 15

DATACENTERS ADAPTING TO CHANGE

CHANGING ENVIRONMENTS Change is Happening Growth is Continuing How Do We Know What to Change? 3/5/2015 17

ADAPTING TO CHANGE Managing Change Business Need Impact to Profitability Growth Ability Technology Adaption Market Fluctuations Data Security Data Access 3/5/2015 18

ADAPTING TO CHANGE Location Connectivity latencies decreasing More datacenters for lease bring options Mobile computing shifts computing loads Datacenters employ few staff members Utility Costs Environmental Regulations Land cost and availability 3/5/2015 19

ADAPTING TO CHANGE Redundancy Additional Components add cost Where is redundancy best applied Virtualization Mobile connectivity Cost of Downtime/switchover 3/5/2015 20

ADAPTING TO CHANGE Client Requirements Short ROI s Minimal Capital Output Secure Reliable Flexible Improve Business Efficiency Expandable Short Design and Construction Time Minimal Operating Expense 3/5/2015 21

DATACENTERS DETERMINING THE RIGHT APPROACH

DETERMINING THE RIGHT APPROACH "If you want to make enemies, try to change something. Woodrow Wilson 3/5/2015 23

DETERMINING THE RIGHT APPROACH What does it mean? Less Dependence on IT Hardware Flexible Computing Environment Faster Connectivity Mobile Computing The Datacenter becomes less critical as Datacenters become more critical. 3/5/2015 24

DETERMINING THE RIGHT APPROACH Changing How IT Availability is Viewed, Changes How the Infrastructure is Applied. Decrease facility cost Diversify IT Assets Stay Nimble in a Changing Environment Evaluate Capital Expenses vs Operating Expenses Standardization Drives Quality Facilities and IT must work together Re-Evaluate Business Drivers 3/5/2015 25

DETERMINING THE RIGHT APPROACH Standardizing Repeatable Designs Construction Efficiency Project to Process Technology Adaption Quality Control 3/5/2015 26

DETERMINING THE RIGHT APPROACH Redundancy At the Application Level Virtual Computing migrates for load demand and failures Shift Redundancy Down the Chain Simplified Infrastructure 3/5/2015 27

DETERMINING THE RIGHT APPROACH Estimated construction costs are as follows Tier I data center (99.671% availability about 28.8 hours of downtime per year): $450 per square foot Tier II data center (99.749% availability about 22.0 hours of downtime per year): $700* per square foot Tier III data center (99.982% availability about 1.6 hours of downtime per year): $1,000 per square foot Tier IV data center (99.995% availability about 0.4 hours of downtime per year): $1,400* per square foot *Uptime Institute 3/5/2015 28

DETERMINING THE RIGHT APPROACH Datacenter Cost Break Down Servers 13% 4% Networking Equipment 18% 57% Power Distribution & Cooling Power 8% Other Infrastructure MVDirona.com 3/5/2015 29

DETERMINING THE RIGHT APPROACH Design requires 5,000 servers to meet business needs Client wants datacenters on the East and West coasts $2,500 average server cost $350 average networking cost per server 10 servers per rack average Tier 2 design adds 60% footprint to white space* Tier 4 design adds 100% footprint to white space* *Uptime Institute 3/5/2015 30

DETERMINING THE RIGHT APPROACH Tier IV Design 5000 Servers 500 Racks 8000 SqFt White Space 8000 SqFt Back of House 16000 SqFt Total $1,400 Cost per SqFt $22.4M Total Facility Cost $14.3M IT Equipment Cost $36.7M Total Per Facility Cooling Tower Chiller CRAH VSD Cooling Tower Chiller CRAH VSD 3/5/2015 31

DETERMINING THE RIGHT APPROACH Tier II Design 5000 Servers 500 Racks 8000 SqFt White Space 4800 SqFt Back of House 12800 SqFt Total $700 Cost per SqFt $9.0M Total Facility Cost $14.3M IT Equipment Cost Cooling Tower Chiller CRAH VSD $23.3M Total Per Facility 3/5/2015 32

DETERMINING THE RIGHT APPROACH East, West, and Central Tier II Design 5000 Servers 500 Racks 8000 SqFt White Space 4800 SqFt Back of House 12800 SqFt Total $700 Cost per SqFt $9.0M Total Facility Cost $14.3M IT Equipment Cost $23.3M Total Per Facility $69.9M Total for 3 facilities East and West Tier IV Design 5000 Servers 500 Racks 8000 SqFt White Space 8000 SqFt Back of House 16000 SqFt Total $1,400 Cost per SqFt $22.4M Total Facility Cost $14.3M IT Equipment Cost $36.7M Total Per Facility $73.4M Total for 2 facilities Savings of $3.5M. 3 Facilities vs 2 Redundancy across IT Systems 3/5/2015 33

QUESTIONS AND ANSWERS Information is Not Knowledge Albert Einstein