© 2010 ibm corporation data center actions that your cfo will love bob tierney ibm, site and...

© 2010 IBM Corporation

Data Center Actions That Your CFO Will Love

Bob Tierney IBM, Site and Facilities Services March 26, 2010



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Key messages

The data center environment needs to adapt to be more flexible and cost-effective to meet the unpredictable needs of business and IT.

Simple actions can yield significant operational and capital cost savings.

We are deploying solutions with clients and within IBM.

We can help you determine how to get started.



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6x

69x

Growth in server and storage shipments this decade.

85% Of distributed computing capacity sits idle.

18%

75% Of CIO’s anticipate a strongly centralized infrastructure in 5 years.

20x Technology density increase in servers this decade.

78% Of data centers were built before the dot com era (>7 years old).

5-60% Of IT workloads may be cloud-enabled.

Increasing IT demand Continued cost pressure Responsive to change

Increase in data center energy costs in next year.

Customers’ challenges are driven by the following…



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We can help clients in three simple ways.

Extend the life of an existing data center

infrastructure.

Rationalize the datacenter infrastructure across the company.

Design new infrastructure to be

responsive to change.

Double IT capacityor

Reduce operational expenses by 50%.

Improve operational efficiencies

while reducing operational expenses by 50%.

Pay as you grow by

deferring 40-50%of capital and

operational costs.



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Extend the life of the hardware, software, and facilities. Actions for cost savings with immediate paybacks.

Optimize IT infrastructureVirtualization provides TCO savings.Reduce costs and complexity with 30-40% TCO.

Leverage energy efficient IT technology. Reduce on-going IT energy costs over 30%.

Optimize data center infrastructureGet the facts with an energy assessments. Reduce costs 15-40% with < 2 year payback.

Add cooling capacity with High Density Zone.Cost effectively adopt new technology at up to 35% less than site retrofit.

Optimize IT and data center infrastructureMonitor and manage energy use.Integrate IT, data center, and buildings energy consumption to save 15-30% a year.

Range of cost savings

0% 20% 40% 60% 80% 100%

Server & Storage

Virtualization

Client Virtualization

EnergyEfficient

Hardware

Data CenterOptimization

LOW HIGH

SoftwareEnergy

Management



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IBM Lexington case study of an existing data center.Smart execution allowed for 8x IT growth in the same energy footprint.

Diagnose

Establish baseline energy use

20x more servers than needed

Virtualize

10x increase in asset utilization

Compute Resources

2x growth in number of servers

8x growth in IT capacity

Improved Operations

10% improvement from less over cooling

BestPractices

Right size infrastructure to virtualized IT workloads

Measure and

Manage

15-20% power savings from actual usage



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Rationalize IBM’s data center infrastructure.Smart transformation has delivered cost savings and operational efficiency.

Data center infrastructure consolidation

Cumulative benefit yield of $4.1B over the past 5 years

IT consolidation and virtualization

80% less energy, 85% less floor space

Substantial TCO savingsConsolidate and virtualize

thousands of servers onto approximately 30 IBM System z™ mainframes

1997 2007

CIOs 128 1

Host data centers 155 7

Web hosting centers 80 5

Network 31 1

Applications 15,000 4,700



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Establish Baseline

Strategic Modeling

Execution Roadmap

Current State What-Runs-Where Application Growth Forecast Decision Model

Alternative Cash Flow

Resiliency Rationalization

Tactical Projections Relocation – Build - Lease

Physical Infrastructure

Threshold Analysis

Future State Alternative Scorecard

Future State What-Runs-Where

Transition Plan PMO Guide Board Level Deliverables

Rationalize your data center infrastructure.Optimize to adapt to market pressures and changing business requirements.

Reduce operating costs by up to 50 percent Reduce operational complexity and improve adoption of new virtualization technologies Meet business continuity requirements through reduction of outages and data loss Design for flexibility to meet dynamic business requirements Reduce time to deploy new technology from months to weeks



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Rationalize to fewer centers for operational efficiency.A major Chinese bank realized $180M savings and improved operational efficiency from data center consolidation.

Client requirements Reduce time to market of new applications Reduce overall costs, improve resiliency and security

Solution Consolidate 36 mainframe data centers to 2 Establish enterprise command center

Benefits US$180 million annual savings Improved time to market of new banking services Security-rich environment; 99.95% availability



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New data center infrastructure decisions.

Business objectives Data center requirements

High availability1

Provide required capacity1

Optimize capital costs

1.Digital Realty Trust; Emerging Trends in the data centre market, DCD London, November 2007; US EPA Study, August 2007

Maximize scalability

Maximize flexibility for technology and computing model adoption

Minimize capital and operational costs

Maximize scalability

Maximize flexibility for technology and computing model adoption

Minimize capital and operational costs

Meet business and IT growth

Align capital and operating costs

Flexible to support new technology

Faster time to deploy

Reduce risk

Security



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Defer 40-50% of the lifecycle costs by implementing modular data centers to align business and IT requirements.

Data center capital costs60% costs from mechanical /

electrical systems

Shell 7%

Mechanical20%

Fees24%

Fit-Up Costs

9%

Instrumentation & Controls4%

Power36%

Source: IBM Estimates

Pay as you growModular approach aligns capacity

to business need

Year

Pow

er (

rang

e of

kw

)

1 2 3 4 5 6 7 8 9 100

0.5

1

1.5

2

2.5

3



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Optimize lifecycle costs & reduce operational costs by up to 50%.

Example: One 20,000 square foot data center

Cumulative cost to run a data center

10% annual energy increase

Data center operational costs are 3-5 times the capital costs

75% of operation costs is for energy

Cum

ula

tive

Cos

t of

Ope

ratio

ns

($M

illio

ns)

Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Energy Cost

Staffing

Bldg. Maint. & Mgmt.

R E Tax

Source: IBM Estimates for $50M

$100

$150

$200

$250

$50

0



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Scalable modular data center.

Enterprise modular data center.

Portable modular data center.

High densityzone.

Up to 20% less than traditional designs.

Turnkey center for 500-2,500 sq ft.

Implement in 8-12 weeks.

Defer 40-50% of capex and opex cost.

Standardized design starting with modules as small as 5,000 sq ft

Save up to 50% operational costs.

Fully functional data center.

Rapidly deploy in 12-14 weeks.

35% lower cost than site retrofit.

Without impacting operations.

Watch a video at :http://www-03.ibm.com/systems/data/flash/dynamicinfrastructure/datacenterdesignsolutions/

Design new infrastructure for flexibility with modularity. IBM’s data center family™ solutions align to your business and cost objectives.

http://www-03.ibm.com/systems/data/flash/dynamicinfrastructure/datacenterdesignsolutions/



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Design for flexibility in enterprise class data centers.Pay as your grow: align costs to IT needs with enterprise modular data center.

Meet unpredictable business and IT growth

Enable 3x power & cooling growth at one-third cost Up to 12x power and cooling capacity growth

Align capital and operational cost to IT needs

Defer up to 40% capital costs until requiredDefer up to 50% operational costs until requiredAs much as 50% energy savings

Provide available and predictable operations

Provide expansion without downtime to operations Provide standardized operating environment

Design to an “open architecture”

Integrated leading vendor's capabilitiesOpportunities for OEM innovation



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IBM site and facilities services brochure

IBM report: cutting energy costs for a powerful competitive advantage

Extend the life of an existing data center: IBM Lexington case study

Data center strategy

Data center consolidation and relocation

Modular data centers provide an agile response to change

Art of the possible: rapidly deploying cost-effective, energy-efficient data centers

Prescription for server room growth: Design a Scalable Modular Data Center

For more information



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Green IT: www.ibm.com/green For CIOs:: www.ibm.com/cio

For facilities managers: www.ibm.com/services/siteandfacilities

Leverage IBM’s experience

http://www.ibm.com/green

http://www.ibm.com/green

http://www.ibm.com/cio

http://www.ibm.com/services/siteandfacilities

http://www.ibm.com/services/siteandfacilities



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Rationalize to fewer centers for operational efficiency.Bryant University realized major savings from reducing server room sprawl.

26% reduction in capital spend

reduction in operational spend

Scalable Modular Data Center

Servers &Virtualization

Energy Management Software

30% time savings in operational overhead

15% annual energy savings

21%12-15% improvement

in service delivery

Scalable Modular Data Center

Servers &Virtualization

© 2010 ibm corporation data center actions that your cfo will love bob tierney ibm, site and...

Documents

data center consolidation

data center energy costs

data center environment

mainframe data centers

data loss design

infrastructure virtualization

operational costs

baseline energy