CASE STUDY Setting the Pace Challenge Southern Company’s rapid business growth had created server sprawl, threatening to outstrip the available Southern Company, the premier energy company serving the southeastern United States, saves an estimated US$1.3 million and sets an example for energy efficiency using virtualized Dell™ PowerEdge™ servers to consolidate its data centers. data center space and driving up costs by consuming more energy each year. Intel® Xeon® processor 7300 series A enables the Southern Company IT team national average while maintaining exceptional customer service. In fact, Southern to save data center space, reduce costs, Company has been listed as the top-ranking U.S. electric service provider for nine and increase energy efficiency. consecutive years by the American Customer Satisfaction Index. Benefits technologies that can increase efficiency and reduce costs. “As a power company, Solution Virtualizing and consolidating on Dell PowerEdge R900 servers with the tlanta-based Southern Company is the premier energy provider in one of America’s fastest-growing regions, serving nearly 4.4 million customers across the Southeast. Even as its customer base has expanded, Southern Company has been able to keep its retail electric prices significantly below the One of the secrets of Southern Company’s success is continually exploring new ■■ ■■ ■■ Virtualized Dell PowerEdge servers we know that one of the best ways to hold down costs is through energy efficiency,” enable up to 26:1 server consolida- says Dan Traynor, IT infrastructure director at Southern Company. “We’re commit- tion to help save data center space ted to keeping our own house in order from a green perspective and providing and improve resource utilization. technology that can help our customers save energy as well.” Consolidated Dell infrastructure helps By establishing high standards for itself, Southern Company has helped set the to avoid over 2 million kilowatt-hours pace for energy conservation among the nation’s utilities. For example, Southern of energy use, eliminate over 1,340 Company was one of the first to adopt automated metering infrastructure (AMI) on tons of CO2 emissions, and save an a large scale. The company is putting more than 4 million smart meters into the field estimated US$1.3 million in capital at homes and businesses throughout its service area, with over a million installed expenditures for equipment. to date. The meters send power usage information through radio towers to Southern Virtualization helps automate the Company’s data centers for processing. The company anticipates the program will server build process and reduce deliver huge benefits, as there is no longer a need to dispatch meter readers to deployment time from more than a businesses and residences where the AMI units have been installed. “When the week for a physical server to one or system is fully implemented, not only will we see significant labor savings, we also two days for a virtual machine. estimate we’re going to get about 500 vehicles off the road and save about 12.5 million miles of driving annually,” says Traynor. “That will contribute to cleaner air, reduce energy use for travel, and lower our costs.” Rapid business growth leads to server sprawl Southern Company found one of the biggest opportunities to save energy and reduce costs in its own data centers. Rapid annual business growth was causing 94 DELL POWER SOLUTIONS | September 2009 Reprinted from Dell Power Solutions, September 2009. Copyright © 2009 Dell Inc. All rights reserved. the Southern Company IT team to add approximately 30 percent more servers to its two main data centers each year, resulting in a mounting problem of server sprawl. Consolidation was difficult because many of the IT team’s internal customers required their own dedicated servers, and concern about application conflicts kept most business units from sharing space on the same physical systems. “We needed to continually add more servers, and at the same time we weren’t able to fully utilize the resources Virtualized Dell PowerEdge R900 servers have helped Southern Company save dramatically on energy and hardware costs we had,” says Traynor. The Southern Company IT team real- OS–based systems several years ago and “We’re on a lease agreement for our serv- ized that the pace of growth in the data had a very positive experience. “Any time ers and have a regular refresh cycle, so center wasn’t sustainable. Although the we’ve asked for advice in the past, the Dell we were able to begin replacing them team had not yet run out of space, they team has been very knowledgeable and right away,” says Traynor. could see that problem coming if they provided useful suggestions that helped kept growing at the same rate. What also us achieve our goals,” says Traynor. The team decided to use Dell PowerEdge R900 servers with the Intel Xeon processor 7300 series to build a vir- caught the team’s attention was the rising tual server farm. The team had already monthly bill we were paying our sister Dell servers power virtualization project company, Georgia Power, was steadily With help from Dell, the IT team decided cations with high transaction volumes, increasing,” says Traynor. “So was the to virtualize and consolidate its data and they were impressed by the servers’ environmental impact. When the company center servers using VMware® ESX tech- performance. “With four processors and instituted a green data center program, nology. The powerful partitioning pro- 16 cores each, we knew the Dell PowerEdge we saw that we were consuming as much vided by the VMware platform would help R900 was powerful enough to host a as 15 percent more kilowatt-hours and eliminate application conflicts and enable large number of virtual servers while producing more of the corresponding CO2 servers to be shared. But the team also ensuring fast server response for our emissions every year.” power usage. “With more servers, the used PowerEdge R900 servers for appli- determined that it would need more pow- users,” says Traynor. “The R900 is also The IT team decided to ask Dell for erful servers to achieve a sufficiently high more energy efficient than the servers we ideas on optimizing the servers and reduc- density of virtual machines. The Dell team were replacing.” ing server proliferation in the data centers. recommended that Southern Company The Southern Company IT team has The company had standardized on Dell replace its aging dual-processor servers been able to place as many as 26 virtual servers to power its Microsoft® Windows® with a quad-processor architecture. machines on each of the PowerEdge R900 “The new Dell servers have enabled us to create approximately 390 virtual servers over a year and a half, avoiding an estimated US$1.3 million in capital expenditures for equipment.” —Dan Traynor Reprinted from Dell Power Solutions, September 2009. Copyright © 2009 Dell Inc. All rights reserved. IT infrastructure director at Southern Company May 2009 DELL.COM/PowerSolutions 95 CASE STUDY servers. As a result, the team has eliminated hundreds of legacy physical servers, “The efficiencies we’ve gained by alleviating overcrowding and creating consolidating on Dell contribute to the company’s bottom line and ultimately help keep electric rates low for Southern Company customers.” space in the data centers for future growth. “The increased performance provided by the Dell servers enables high consolidation ratios and gives us much better utilization of our data center resources,” says Traynor. —Dan Traynor Consolidation helps save energy and costs IT infrastructure director at Southern Company May 2009 The reduced number of physical systems and the energy efficiency of the Dell serv- Traynor. “The efficiencies we’ve gained by from Dell, we’ve been able to head off ers has helped the Southern Company IT consolidating on Dell contribute to the potential data center space and power team achieve big energy savings. As part company’s bottom line and ultimately supply problems,” says Traynor. “That of the company’s green data center pro- help keep electric rates low for Southern gives us room to grow while saving energy gram, the team has created a software Company customers.” and reducing costs.” tool to aggregate all of the kilowatt-hour The IT team can now deploy a new Southern Company is still seeing rapid savings and the corresponding CO2 emis- virtual server in one or two days instead growth in business demand, but only sion reductions. “As a result of the virtu- of spending more than a week to deploy modest growth in data center power con- alization, we avoided more than 2 million a new physical server. “Virtualizing the sumption year to year. “We still have kilowatt-hours, worth approximately data center enabled us to automate the growth in our network, so we’re not seeing US$200,000 over a period of a year and server build process, and we’re also more an actual drop in the monthly power bill,” a half,” says Traynor. “We’ve eliminated efficient because we don’t have to order says Traynor. “But we certainly have over 1,340 tons of CO2 emissions, which a physical machine,” says Traynor. “By slowed the rate of increase. Today the IT have a significant impact on the environ- configuring new virtual machines on the department is down to single-digit growth ment. That’s a pretty big deal.” Dell servers, we can more easily keep up in kilowatt-hours. Before, we were well into double digits.” Southern Company also saves money with internal demand as the company because consolidating on Dell servers grows—which helps keep the business helps reduce the need to purchase new unit managers happy with IT.” hardware. “The new Dell servers have As an energy utility, Southern Company is always looking for ways to use energy more efficiently and to set examples for its partners and business customers for 390 virtual servers over a year and a half, Dell equips Southern Company for future growth avoiding an estimated US$1.3 million in Traynor feels that the company is now Virtualizing on Dell servers has been a capital expenditures for equipment,” says well equipped for the future. “With help success on both counts. enabled us to create approximately achieving greater energy sustainability. “We’ve eliminated over 1,340 tons of CO2 emissions, which have a significant impact on the environment. That’s a pretty big deal.” —Dan Traynor 96 IT infrastructure director at Southern Company May 2009 DELL POWER SOLUTIONS | September 2009 QUICK LINK Dell virtualization solutions: DELL.COM/Virtualization Reprinted from Dell Power Solutions, September 2009. Copyright © 2009 Dell Inc. All rights reserved.