Data Center Decisions: Build Versus Buy

Data Center Decisions
“Build versus Buy”

Jeff Gilmer
Senior Partner
612.978.4493
jgilmer@excipio.net
2012 Excipio Consulting, LLC. All Rights Reserved. This document is proprietary and confidential and may not be duplicated,
redistributed, or displayed to any other party without the expressed written permission of Excipio .

Data Center Trends


Trend 1: Data Center
Capacities

Total Power/Rack
- 5 kW per rack
- 10 kW per rack

Power Consumption
- Virtualization
- Application consolidation
- Cloud Computing
- VDI

Cooling Requirements
- Total load is down
- Criticality is up dramatically

Square Footage
- Virtual servers
- Storage densities
- 1,200+ servers per rack


Trend 2: Flexible
Data Centers

“Due to significant technology changes, flexibility
has become a primary issue in the last five years.”
Cause
• Speed of developing new technologies
• Acceptance of virtualization
• Rapid rate of change in IT (Moore’s Law)
• Speed at which business demands change
 M&A activity
 New product lines
 Promises to Wall Street and investors

Effect
• Modular Systems
• External Solutions
• “The Cloud”


Data Center Assessments

How do I “Evaluate” my Data Center?


Data Center Strategy

“How do we determine our future Data Center Strategy?”

Phase I – Data Center IT Operational
– Operating Systems
– Applications
– Technology
– Data Storage
– Infrastructure

Phase II – Data Center Facilities
– Facilities Capacity and Capabilities
– Power
– Cooling
– Fire Suppression
– Telecomm
– Security

Phase I – Data Center
Operational

Operating Systems
A review operating systems in order to leverage the redundancy and maximize the resource
utilization. Examples include: H/P–UX, UNIX, AIX, Solaris, Windows NT, 2000, Advanced
Server, Datacenter, Linux, Netware, etc.

Applications
The review will include current server applications in use, versions and the potential to consolidate different
applications, partition or utilize alternative technologies.

Hardware Technology (Servers)
A review of the current server environment including server mix; Blade, Commodity and Enterprise class.
It also includes a review of the potential for optimizing the current environment including; physical
consolidation, virtualization, application stacking and life cycle management along with other options.

Data & Storage
Storage analysis should include local server drive storage, Data Back-up/Restoration, Data Retention, NAS
and/or SAN options as well as Disaster Recovery process related to data handling capabilities.

Infrastructure Review
The LAN/WAN components and connectivity requirements along with switches, routers, firewalls , etc.


Phase II – Data Center
Facilities

“Evaluate the Current Data Centers ability to meet the current
and future requirements defined by the Data Center Operational
Review.”

The Facilities Assessment includes a review of all Data Center/Computer
room facilities and related equipment including:
- Capacity, Environmentals and Physical Components
- Maintenance Schedules
- External Connectivity
- Physical Security, Monitoring, Testing and Documentation
- HVAC, Fire Suppression, Wiring, Power, Redundancy
- Sensors, Space Requirements, Utility Costs, etc.
- Data Center Facilities Staff Knowledge and experience


Survey Question

Has your Organization completed or updated
your Data Center strategy including both
Operational and Facilities in the last three
years?

1) Yes
2) No
3) In Process


Consolidation
&
Impacts to the Data
Center


Consolidation
“What does this
really mean?”

Upfront
Technical Outage Support Resource
Methodology Explanation Examples Cash
Risk Risk Impact Risk Impact
Investment
Conslidate like
Immediate
servers on existing
Compression File and print Low Low Low Low decrease in
hardware or retire
workload
applications
Migrate applications • File and print Shift in
from expensive • Utility servers workload,
Re-platform Low Low Moderate Low
platforms to • Itanium to typically no
commodity servers. quad core decrease
Consolidation of Moderate
• Virtualization Increased
servers as due to
• Application resource
equipment is changes in
Rolling Migration stacking Moderate Low Low cost due to
replaced during OS and
• Physical extended
regular lifecycle App
replacement timeline
refresh intervals versions
Initial
Purchase of new Increased
• P2V increase,
servers with new resource
Mass Refresh • 3-5 year lease High High High followed by
technologies and cost during
agreements tapering of
migrate en masse transition
support
Migration of key • Web services
Reduces or
systems to third • B2C systems
reallocates
party hosting • SAAS
Outsourcing Low Low Low Low internal
facilities to avoid • Systems with
support
upgrades to the data 24x7 uptime
staff
center requirements


Enterprise Server
Strategy

Year
2007 Start
Action N/A
19
1
42
2
217
Dedicated
4
85
6
3
8
49
12
3
16
13
1
1
2
2
Virtual Servers
4
11
8 Instances
98
Servers
445
Totals
CPUs
1,519
Instances
543
Servers Year 1:
Dedicated Refesh
NG Proc Demand
Move to VM
-5
1
-24
-50
13
-80
-13
11
-32 -1
-12
10
-23
-3
4
-3
-1
1
-1 -11
1 5
163
-96

-163
-336

-550
-96
- 445 Physical
NG Proc Demand
Consolidate
NG Proc Demand
4
-1
1
20
-2
1
14
-2
1
1
-2
2
20
-10
9
5
-5
9
-22 -185 -22 - 543 Instances
Purchase 72 9 18 99 251 99
End 19 12 157 47 4 5 1 18 261 263 699 524

2008 Dedicated Refesh -12 -15 -4 -1 -32 -74 -32
NG Proc Demand 2 4 2 2
Move to VM -26 -18 -4 48 -48 -188
NG Proc Demand 7 8 7
Consolidate
NG Proc Demand
Purchase 32 6 38 86 38
End 19 148 25 4 1 23 309 220 523 529

2009 Dedicated Refesh -9 -9 -18 -9
NG Proc Demand 3
Move to VM -10 10 -10 -20
NG Proc Demand 3
Consolidate
NG Proc Demand
Purchase 9 1 10 21 10
End 19 138 25 4 1 24 319 211 506 530

2010 Dedicated Refesh -5 -1 -2 -1 -9 -32 -9
NG Proc Demand 2 1 2 1
Move to VM
NG Proc Demand
Consolidate -17 -12 -2 -31 -98 -31
NG Proc Demand 5 6 2
Purchase 10 3 1 14 36 14
End 19 126 15 25 319 185 412 504

2011 Dedicated Refesh
Servers Year 5:
NG Proc Demand
Move to VM
NG Proc Demand
- 185 Physical
Consolidate
NG Proc Demand
Purchase
- 504 Instances
End 19 126 15 25 319 185 412 504


Server Architecture
Example

High Density Example

• 16 Blades/Chassis
• 3kW/Chassis
• ≤10kW/rack
• 25 virtual servers/blade
• 400 server instances/chassis

400 servers * 3 chassis/rack = 48 physical and 1,200 instances
Traditional 13 physical servers per rack = 74 racks @ 5 kW/rack (370kW)


Survey Question

“To what degree has
consolidation impacted your
Data Center, what percentage
of your servers are virtualized
today?”

1) Over 60%
2) 40 to 59%
3) Less than 40%


Data Center Capacity

“How do I know when we are going to run out of
Data Center capacity?”
Data Center Capacity Drivers

o Physical Space
o Rack Space, Ceiling Height, Floor Weight

o Power
o Main Power Feed, Facilities Draw, Actual Power to Rack, Equipment

o Cooling
o External, Internal, Ambient Air, In-Row Solutions, Floor Height


How Long will my
Data Center “Survive”?

Number of BTUs per
# Tons Min BTUs Max BTUs
Units Ton
Building air supply - - 12,000 - -
Cooling capacity per Unit 20.0 15 12,000 3,600,000 3,600,000
Cooling capacity per Unit 12.0 3 12,000 432,000 432,000
Cooling capacity per Unit 5.0 2 12,000 120,000 120,000
Total Cooling Capacity 346 4,152,000 4,152,000

Typical Typical
Physical
Watts per BTU per Min BTUs Max BTUs
Devices
Device Device
Cooling demand
WAN 118 135 460 (54,297) (90,495)
LAN 61 77 262 (15,972) (26,620)
Storage & Backup 92 427 1,455 (133,882) (223,137)
Telco 42 310 1,057 (44,373) (73,955)
Servers & Mainframes 701 433 1,478 (1,035,742) (1,726,237)
Estimated Cooling Demand (1,284,266) (2,140,444)

Less estimated efficiency loss 30% (1,245,600) (1,245,600)

Available Cooling Capacity (BTUs) 1,622,134 765,956

Cooling Adequate (Yes/No/Insufficient Data) Yes Yes
Cooling Redundant (Yes/No) Yes Yes
Maximum Number of Servers 1,799 1,012
Minimum Cooling Required (Tons) 211 282


Data Center


Data Center

o Are there advantages in making a long-term commitment to build a Data
Center, or would we be better off utilizing a current hosted facility to meet
our needs?

o What do we get for our investment?

o What is the best use of our money?

o Do we upgrade, build new, use an external provider or Cloud Computing?

o Do we address production, DR and test/development environments
differently?

o What is a Tier Level and how important is this as opposed to a business
requirement (best practices) level?

Survey Question

How do you operate your
Data Center environment
today?

1) Own your Data Centers
2) Buy you Data Center
services
3) Use Cloud Computing


“Buying (Sourcing) a
New Data Center”

The decision to buy Data Center Services
The benefits of sourcing DC services include:
o Typically the lowest up front cost option
o Implementation can occur quickly
o The Client can take advantage of already implemented policies
o The option provides for technical and business flexibility
o It does not require a long-term commitment

The disadvantages typically are:
o Typically higher long term cost
o Will require some conversion to providers requirements
o May not provide a long-term solution
o Control of the facility is by the provider


Data Center Services
Maturity Model

“As the Data Center Services mature, the ability to provide
services on an “As Needed” basis to the end user client
maximizes efficiencies and is typically more cost effective.”

Collocation Managed Outsource Cloud

Basic Services Advanced Services


Colocation
“Power and Pipe”

Vendor Responsibilities
o Building Facilities
o Security: 24 x 7 security and alarm monitoring
o Power: AC and DC power with emergency generators
o Cooling: HVAC redundant design with air distribution
o Fire Detection: Detection and suppression technologies
o Cabinets and racks
o Network: WAN bandwidth

Client Responsibilities
o All assets owned by Client: server, network, and storage hardware
o Resources to support all hardware, OS, and applications
o Tape backup and rotation responsibilities
o Disaster Recovery responsibilities
o Monitoring and Service Desk capabilities


“Managed Services”

Same as colocation plus the following services:
o Implementation and support of hardware and OS
o Performance monitoring of all hardware
o Tape backup and rotation responsibilities
o Updates, patches, log maintenance, troubleshooting, security
o DBA support to triage and perform routine maintenance
o Managed Networking: user access, firewalls, IDS/IPS, anti-virus
o Virtual infrastructure Management: utilization, failover, performance
o Standardized support processes: continuous process improvement
o Service Desk integration (single service desk at the enterprise level)

o All assets owned by Client: server, network, and storage hardware
o Resources to support applications
o Disaster Recovery responsibilities

Outsource Services
“People, Processes, Product”

Same as Managed Colocation plus the following services:

o All resources are provided by vendor
o Assets are owned and responsibility of the vendor
o Processes and methodologies to manage IT operations
o Software support for the commodity applications
o Application performance metrics and reports
o Multi-level Disaster Recovery plan
o Service coverage is 365 x 24 x 7
o Help Desk is the vendor’s responsibility

o Custom applications, (test, development, support)
o Custom DBA work (new enhancements, development)


Data Center
“Cloud Computing”

“Services are Sourced via the Internet”
Traditional IT Structure Service Sourcing Structure Cloud Computing

Applications Software As a Service

Operating Systems Platform As a Service

Mainframe, Servers Internet

Data, Storage, DR
Infrastructure As a
Service
WAN, LAN, Network

Data Center Client
Facilities

“Building a New
Data Center”

The benefits of owning and building include:
o Typically the lowest cost long-term option
o If the strategy includes consolidation of other DC’s return on investment can
be as soon as four years but less than ten.
o The Client owns and controls the facility
o The Client can make independent decisions without impact to other
vendor provided requirements.

The disadvantages typically are:
o Significant upfront initial investment
o Long-Term process which may require an interim solution
o Requires a long-term commitment
o May not offer the technical and business flexibility


“Build versus Buy
Cost Comparison”

10-year Projected Costs
New Data Center Collocation Managed Services Outsource

$600,000

$400,000

$200,000

$0

Year 10
Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9
The cost to build becomes more cost effective around year seven.

Questions & Answers

Jeff Gilmer
Senior Partner
612.978.4493
jgilmer@excipio.net


Data Center Decisions: Build Versus Buy

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