how to calculate data center tco (slideshare)
TRANSCRIPT
How to Calculate Data Center TCO
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Data center TCO or total cost of ownership can include a plethora of items
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with a mix of initial/fixed costs and ongoing operational charges
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So, what should go into such a TCO spreadsheet?
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Are You Sure You’ve Included Everything?
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A more general list of cost drivers includes:
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• Cooling equipment
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• Electricity
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• Engineering and installation
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• Power equipment
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• Project management
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• Racks
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• Service
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• Space
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• System monitoring
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These costs may also vary individually according to whether you are constructing your own data center or buying one that has already been built
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However, they do not include the costs of IT compute
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What Really Makes Data Center TCO Go Up or Down
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Spreadsheets are good tools for trying out different assumptions and scenarios (‘what-if’ modeling)
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However, because ‘spreadsheet myopia’ is a common ailment, some major factors are sometimes ignored
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Time is Money Too
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The time you and your colleagues spend on figuring out all the ‘stuff’ required to correctly design, dimension, and run data center facilities is already a cost
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Do You Really Want to Do This?
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Understanding data center TCO, even at a basic level, can be helpful because it allows you to compare with other solutions such as data center colocation
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A colocation service provider has already done the costing and spreadsheet analysis
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in order to present a customer with a pricing schedule that should make sense for both of them
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Which spreadsheet have you used to evaluate TCO for your own data center needs?
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Share your experience with us in the Comments section for this article!
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Recommended ReadingLearn How Multi-Tenant Colo Providers Can Develop a Scalable, Data-Driven, Marketing and Sales Funnel That Powers Growth
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