Flipping the Budget Ratio with Next-Generation Data Centres Planning your evolution to a next-generation data centre Troy Syn Managing Principal Hewlett-Packard Asia Pacific Region 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Agenda Today s Challenges NGDC Approach HP IT Example 2 13 November 2008
CIO Challenges 51% of CIOs today say it is urgent for them to transform their data centres to cope with fast-changing business demands* Why? Data Centre Limitations Silo ed Approaches Efficiency (Space, Energy, People, Budget etc.).. Do More with Less * Penn, Schoen, Berland Associates Inc 3 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Flipping the Budget Ratio Infrastructure pain points IT environment is too expensive to manage and maintain. Too many applications, too much customization and too many underutilized servers. 250 200 150 100 Management and operation spend 10% CAGR Server spend 3% CAGR Storage spend 6% CAGR Energy needs for power and cooling under scrutiny. Struggle to meet service level agreements for critical workloads. Can t implement new projects fast enough. Need to reduce headcount every year but the work never seems to go away. Compliance demands are increasing. Infrastructure is at risk to viruses and security breaches. 50 0 '02 '03 '04 '05 '06 '07 '08 Migration & Upgrades Innovation & New Functions 25% 10% 65% Operations - Maintenance & mgmt. 4 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Operational Costs Increasing Need for more Efficiency Power & Cooling Management Virtualization Worldwide IT Spending on Servers, Power and Cooling, and Management/Administration Spending (US$B) $300 $250 $200 Power and cooling costs x8 Server mgmt. and admin. costs x4 New server spending 60 60 55 50 45 40 35 30 Physical server installed base (millions) Logical server installed base (millions) $150 $100 $50 25 20 15 10 5 Virtualization Management Gap Source: IDC $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 5 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
NGDC Datacenter Design Power and cooling are becoming more important Power & Cooling DATA CENTER Energy SYSTEM CHIP Temperature Source: HP Labs and UC Berkeley Data center power density up 10x in the last 15 years 2.1kW/rack (1992); 14kW/rack (2006) 3-year energy cost roughly equivalent to entry level server acquisition cost in US; in Europe & APJ it could be as high as 2X It takes as much power to cool the heat generated from a system as it takes to power the system Facilities Cost historically1-3% of IT Budget now moving to 5-15% with no upper boundary in sight [Source: Up Institute] Energy costs are rising and make things worse Source: Belady, C., In the Data Center, Power and Cooling Costs More than IT Equipment it Supports, Electronics Cooling Magazine (Feb 2007) IT & cooling power & electricity cost of $0.1/kW-hr 6 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
The Data Center transformation need Can Today s Data Centres Cope? Power & Cooling Average age of data centers is over 15 years old. Power consumption per square foot almost tripled from 2004 to 2005. 1 By 2008, 50% of current data centers will have insufficient power and cooling capacity to meet the demands of high density equipment. 2 By 2010 more than half of data centers will have to relocate to new facilities or outsource some applications. 3 Power failures and limits on power availability will interrupt data center operations at more than 90 percent of all companies over the next five years. 3 Under current trends, energy consumption by servers and data centers in the US could nearly double again in another five years (i.e., by 2011) to more than 100 billion kwh, a $7.4 billion annual electricity cost. 4 Breakdown of facility costs 5 Power & Cooling Equipment depreciation (including generators) 36% Power consumption 33% Maintenance 14% Security 6% Other (includes white space) 11% 1. Dave Edwards, a research analyst from Morgan Stanley, Always On Stanford Summit 07 2. Gartner 2007 3. AFCOM s Data Center Institute, AFCOM 2006 4. EPA Report 2007 5. HP Internal and customer data 7 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Changing the way we build and operate our data centers Shared Resource Pools Traditional Data Center Today s Data Center Next Generation Data Center IT Shared Services App App App Server/ Storage Monolithic computing App1 App2 App3 Server Server Server Shared storage (SAN) Silo d infrastructure App1 App2 App3 Shared App. Infra Services Shared Infra Services Shared infrastructure Risk avoidance Reward 8 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights forbidden.
Additionally typical IT Supply chain models were challenged dealing with peaks Utility demand vs. supply Business Demands Demand Demands varies predictable seasonal demand end-of-period demand business growth un-predictable events disaster unexpected sales volumes Aggressive Sizing 9 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights demand vs. supply demand vs. supply demand vs. supply Capacity Capacity Capacity Demand Demand Demand Cost Excessive initial investment Poor ROI from low utilization of asset Excessive Operating Cost from over-provisioning Quality Not sufficient capacity to handle business volume causes direct Business Loss from insufficient capacity Not able to meet SLO leads potential business loss from negative customer experiences Speed Not able to support business on causes loss of business and poor market reputation
Agenda Today s Challenges NGDC Approach HP IT Example 10 13 November 2008
Next Generation Data Centre Concepts Simplified Wire-once, modular infrastructure Virtual fabric to add & change on-the-fly A nerve center to continuously control & optimize FC Ethernet Ethern et FC 11 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Portfolio for moving to a next-generation data centre A Framework Business outcomes Data centre Transformation Current state High-cost IT islands Business Technology Initiatives Service Management Applications & SOA Transformation Future state Low-cost pooled IT assets Technology Enablers IT Systems & Services Power & Cooling Management Security Virtualization Automation Scalability based on standards IT services Energy-efficient computing Unified infrastructure management Pro-active, builtin infrastructure and data protection Compliance validation Pooling and sharing of IT resources to optimize utilization Dynamic IT resource redeployment to meet changing business demand 13 November 12 2008 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
A flexible evolution based on business outcomes Steps to take Lower costs Cost of operations Mitigate risks Quality of service Business growth Speed of change Optimize IT infrastructure Manage IT infrastructure Automate IT service delivery Standardize server and storage environment Consolidate and virtualize infrastructure Build-in continuity and availability Standardize management processes and tools Secure IT infrastructure Align IT infrastructure with the business requirements Evolve to shared infrastructure - servers and storage Standardize IT services Deploy an automated IT services supply chain 13 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
The supply chain for delivering IT services Facilitated by a Next Generation Data Centre Built on standard, pre-set configurations of shared IT building blocks Delivering standard IT services to the business users Managed through automated IT processes Built-in business continuity and availability 14 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Adaptive IT Supply chain model in a Next Generation Data Centre with Legacy IT Environment with an NGDC demand vs. supply demand vs. supply demand vs. supply Cost Excessive initial investment Poor ROI from low utilization of asset Excessive Operating Cost from over-provisioning Quality Not sufficient capacity to handle business volume causes direct Business Loss from insufficient capacity Not able to meet SLO leads potential business loss from negative customer experiences Speed Not able to support business on causes loss of business and poor market reputation Benefits 15 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights Cost demand vs. supply Optimized initial investment Pay-per-use for additional capacity to cope with un-predictable or unexpected demands Quality Meet Service Level Objective Ensure Quality of services Speed Capacity Demand Provide fast response to business change
Agenda Today s Challenges NGDC Approaches HP IT Example 16 13 November 2008
HP IT 2005 Too many directions, not enough connections IT 4+% of revenue 100+ HP IT sites in 53 countries ~6,000 Applications >1,200 active IT projects <50% of resources dedicated to innovation 85+ data centers in 29 countries 750+ data marts 30% IT managed by IT ~19,000 IT professionals including contingent workforce Undermanaged network 17 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
HP Top 5 IT Initiatives Portfolio Management Global Data Centers IT Transformation IT Workforce Effectiveness Enterprise Data Warehouse World-Class IT 18 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
2007 The right direction. The right connections. % of Revenue cut in half 80% of resources dedicated to innovation Less than 30 HP IT core collaboration sites WW 100% IT managed by IT 6 NGDCs In 3 zones 1 EDW ~1500 Applications ~500 active Business Projects at any given Optimized, Cost effective, & secure network 90% HP employees 10% CWF 19 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Flipping the Budget Ratio An Indicative Ratio Current state High-cost IT islands Low-cost pooled IT assets Future state Next generation data center Migration & Upgrades Innovation & New Functions 25% 10% 65% Operations - Maintenance & mgmt. How? Understand what NGDC is Define NGDC Objectives Execute Transformation Innovation & New Functions MSX Future State 40% 40% 20% Migration & Upgrades Operations Maintenance & mgmt. 20 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights
Thank you. 21 13 November 2008 Proprietary Notice Copyright 2007 Hewlett-Packard Development Company LP. HP Confidential. All Rights