Building and managing data centre facilities with variable costs based on demand There is a variable demand in our data centres today. Depending on your industry sector you may have seasonal variations, or high frequency data loads and other specific needs of capacity. In a virtualized and cloud based environment we have grown accustomed to handling IT services based on SLAs and expect these to be paid per use and on demand rather than treat them as up-front investments. The same methods of pay-as-you-go can be applied to data centre facilities and service operations. The presentation provides a case study of how this model is applied and tied into IT service management of a Nordic customer.

1. Building and managing
data centres
with variable costs
based on demand
Nordic Case Study
13 Mar 2014

2. We are pleased to meet you
Lucas Cardholm
Coromatic Group
VP Service & Business Development
lucas.cardholm@coromatic.se
Michael Petersen
Coromatic A/S
Managing Director & Country Manager
mwp@coromatic.dk

3. Company overview
• Delivers more than one datacentre per week
• Manages more than 3,000 annual service contracts across EMEA
• Privately held by EQT and management
• Turnover ~145M EUR, ~350 staff
Unique Selling Point
Total in-house solutions for Critical Facilities
Vendor neutral – What’s optimal is individual
Coromatic Group
Source: Coromatic Group, rev 2013-06-01

4. • Build new data centre facilities
• Acquire existing DC facilities
• Manage DC facilities
• Optimize cost & performance
Our customers benefit from having
functional services contracted
and delivered to meet business
needs – e.g., degree of utilization
or availability requirements.
Services

5. Offering
• Technical design, perimeter
security, fire suppression, service
management and SLA levels fully
customised
• Payment varies based on capacity
stages utilised in DC
• 100% tailored to meet customer
requirements
• Your own data centre at your own
premises as a service, instead
external co-location or housing
solution
Value proposition
• DC kept under internal control
• Move from CAPEX to OPEX
• Lowered OPEX for optimised
power load and no add-on fees
• Predictable cost levels which
include all, e.g. life cycle
management of equipment
• Coromatic is single point of
contact for handling of incidents,
service requests and change
management
DCaaS Overview

6. Demand varies
Different perspectives
Lifecycle
High frequency
or few spikes
Seasonal
Unpredictable

7. Physical Cloud
A fully virtualized IT
environment, using
operational procedures
?
?
?
Virtual
VMware VMware
The Journey…..

8. Cloud overview
Source: Coromatic Group
Customer site Service provider
Self-run
private
cloud
Managed
private
cloud
Dedicate
private
cloud
Public cloud
Virtual
private
cloud
Hosted private cloud
SINGLE-TENANT MULTI-TENANT
Critical Facility with Service Management

9. Regulatory/contractual demands
Data Centre demands on availability and resilience to be considered
Source: The Uptime Institute
Tier 4
•99.995 % availability
•Risk of downtime due to DC facilities: 26 mins per annum
•Fully redundant: Two independent utility paths
Tier 3
•99.982 % availability
•Risk of downtime due to DC facilities: 1 h 36 mins per annum
•Fault tolerant: Multi power and cooling paths
Tier 2
•99.749 % availability
•Risk of downtime due to DC facilities: 22 hrs per annum
•Some redundancy: Single path of power and cooling
Tier 1
•99.671 % availability
•Risk of downtime due to DC facilities: 28 hrs 48 mins per annum
•No or redcued redundancy: Single path of power and cooling
Environmental impact
Latency
compliance
…and more
Other aspects
security

10. Data centre service management models
Model 3 – Integrated DC service management
Customer DCSM
supplier
Model 2 – Hybrid
SSS1
SSS2
SSS4
Agreements:
Some services
Model 1 – Single service outsourcing
SSS
Single Service Supplier
Customer
SSS1
SSS2
SSS3
SSS4
SSS..n
Admin
Customer DCSM
supplier
SSS1
SSS2
SSS3
SSS4
SSS..n
Admin
SSS..n
SSS1
SSS2
SSS3
Agreements
Agreement:
Most services
Agreement:
All services
Agreements: All services
Admin
Source: Coromatic Group,

11. We secure our customers’
business through physical IT
security and reliable
power.
Nordic Case Study
Sätterstrand Business Park
satterstrand.se/in-english/computer-room/

12. Financial control
Bridging management of IT services and data centre facilities
DC 1 DC 2
Fixed assets or long-term lease
Opportunity for variable Opex

13. 0
50
100
150
200
250
300
350
400
450
Demand variation at Data Centre
Actual use, DC (kW)
Actual use, IT (kW)
Demand variation at Data Centre
A need to handle above average demand
Above
average
demand

14. 0
50
100
150
200
250
300
350
400
450
Capacity adjustments
Approaches to meeting demand
DC facilities designed for capacity adjustments
Semi-flexible
Fixed

15. 0
50
100
150
200
250
300
350
400
450
Capacity adjustments + cloud
Approaches to meeting demand
DC facilities designed for capacity adjustments + private cloud
Fixed
Semi-flexible
Flexible

16. • SLA reporting
• Power
• Cooling
• Invoicing / cost allocation
• Power use per customer
• PUE / invoice factor
• End-customer equipment
• Rack level
• 24/7 access for end-customers
• Facility documentation
• Floor plans
• Cabling
• SOPs
• Capacity planning
• Floor space
• Power and cooling
• Long-term and BCP
• Physical dependencies
• “What-if” scenarios
• Trend analysis of KPIs
Bridging management of IT and FM
Requires DCIM for monitoring and capacity planning
Source: Coromatic Group
Needs: SBP Dashboards

17. Lifecycle
High frequency
or few spikes
Solutions to demand varies
Different perspectives
Seasonal
Unpredictable
+

18. Peak Demand Capacity Cloud Capacity Dedicated Capacity + Cloud
Average total cost – fixed vs. variable
Variable
Fixed
Keeping financial risks controlled
bridging management of IT services and data centre facilities
Source: Coromatic Group, based on original research by AT&T, Joe Weinman

19. Coromatic Group – experts in IT and power
continuity – securing business as usual
Thank you for your
attention
- Questions & Answers -