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How-to-Prepare-a-Data-Center-Strategy

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HOW TO PREPARE A DATA CENTER STRATEGY What you need to know to build a business case for Data Center sourcing Presented by:
Gary Davis
Principal
PlanNet Consulting
(714) 982-5886
www.plannet.net
Steve Miano
Principal
PlanNet Consulting
(714) 982-5820
Agenda ü
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What is a Data Center strategy? Ge;ng started Assessing the current state Developing a future state model Building a business case What your decision-­‐makers want to know Case studies Data Center Strategy A Data Center Strategy is usually iniBated for any or all of the following reasons: ü
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Data Center failures are impacBng the business Growth is expected to exceed power, cooling and/or space capaciBes Risk – real or perceived Lowering Cost of OperaBon Improve systems availability and disaster recovery Inform a decision to build, co-­‐locate or a combinaBon of approaches Ge;ng Started Define your objecBves ü Business drivers ü Technology imperaBves ü Desired outcome Assemble a Core Team ü IdenBfy/appoint a project sponsor • Sponsorship typically comes from Real Estate, FaciliBes or IT ü Typical make-­‐up of a Core Team • FaciliBes representaBve (VP, Director) • IT representaBves – CIO, IT Infrastructure VP, Network, user representaBve(s) • Procurement, sourcing and finance IdenBfy Stakeholders ü A Data Center strategy has many stakeholders ü It’s criBcal to engage to appropriate stakeholder resources to gain consensus and eliminate surprises ü Missing a key stakeholder is analogous to missing a Bre on your car Gather InformaBon Formalize the project with a Stakeholder kick-­‐off ü Introduce the iniBaBve and objecBves ü Layout Bmelines ü Set expectaBons Assessing the Current State Develop and issue a Comprehensive Request for InformaBon and meet with Stakeholders to gather informaBon ü Some of the informaBon is available electronically (e.g., CMDB, As-­‐Built drawings, energy bills, etc.) ü Some of the informaBon will be drawn out in Stakeholder meeBngs (e.g., applicaBon por\olio, financial models, etc.) RFI Categories ü
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Equipment/applicaBon inventory Data Center FaciliBes Real Estate OperaBons Network Business Systems & Services Business ConBnuity Finance Growth & Capacity Planning IT Strategic Plan Assessing the Current State Key Points ü Establish current demand load KW is the currency ü Determine historical demand growth (3-­‐5 years) ü Assess exisBng facility’s aaribute and constraints (e.g., Tier raBng, power, cooling, space, SPOCs) ü IdenBfy applicaBons and their Ber levels ü IdenBfy network constraints (e.g., latency sensiBve applicaBons) ü IdenBfy adjacency requirements/constraints ü IdenBfy key business & IT iniBaBves (e.g., new business ventures, merger/acquisiBon, virtualizaBon, etc.) ü Document outage history (many execuBves are unaware of outages) Outages….what outages?
11/18/2007
PRISM outage
3/12/2007
UPS Failure
6/30/2008
Spokane ATS Failure
16 hour outage
4,000 hours recovery effort
4/1/2007
12/31/2008
Failed UPS
Transfer
7/1/2007
25 hour outage
6,300 hours recovery effort
10/1/2007
1/1/2008
4/1/2008
7/1/2008
10/1/2008
1/1/2009
4/1/2009
7/1/2009
1/1/2007
10/1/2009
10/26/2009
7/11/2007
Over Temp
from Power Failure
5/16/2008
Power Upgrade
Outage
23 hour outage
5,800 hours recovery effort
12/8/2008
Sprinkler Work
Power Outage
6/25/2009
Fire Panel
AC Outage
Future State IdenBfy the future state scenario ü Establish operaBonal objecBves and service levels ü Establish availability targets • Tier RaBng • Geography ü Determine efficiency objecBves (PUE) ü Define sustainability goals ü Consider adaptability needs Plan for the Unplanned Establish the Future State Determine relevant sourcing models ü
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Co-­‐LocaBon Greenfield Tenant Improvement Retrofit ExisBng FaciliBes Cloud/Services Select markets to be evaluated ü Ideally, markets with co-­‐locaBon opBons, cheap power and free-­‐
cooling potenBal ü Determine business affinity to parBcular markets • ExisBng operaBons • Business drivers • ExisBng or future real estate or facility programs Establish Demand Forecast Align business growth with IT growth ü OpBmize IT deployment as part of the deployment of a new data center Capacity Demand Forecast
30,000
28,000
26,000
24,000
Capacity Demand -­‐ k Watts
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
FY09
FY10
FY11
FY12
Un-­‐optimized
FY13
FY14
FY15
Managed
Optimized
FY16
FY17
FY18
Establish Demand Forecast ü Establish capacity threshold vs. demand forecast ü Depict historical growth with future planning ü IdenBfy strategies to miBgate capacity constraints Define Day 1/Day 2 Plan for incremental deployment based on demand forecast
Site 1 -­‐ Production Buildout Phases
16,000
14,000
12,000
k Watts
10,000
*DAY 2: 7,900 kW, 22.5K SF
8,000
6,000
* DAY 1: 3,900 kW, 22.5K SF
4,000
2,000
0
FY09
FY10
FY11
FY12
FY13
Managed Forecast
FY14
FY15
FY16
Deployed Capacity
FY17
FY18
Market Analysis Qualitative Metrics use to disqualify markets
Energy ü
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TransportaBon/Accessibility Rates vs. Nat’l average Sustainability Free cooling Reliability TelecommunicaBons ü Flight Availability ü Door to Door Time Vendor & Services Support ü Proximity to criBcal vendors Environmental Risk ü Diversity ü RelaBve costs ü Latency Labor ü Seismic/Volcanic ü Hurricane/Tidal ü Severe Weather IncenBves (very dependent on properBes) ü Enterprise Zones ü Sales Tax ü Energy rebate programs ü Availability ü RelaBve costs FaciliBes ü Control/Lease Terms QualitaBve Market Rankings What’s important to you? Keep it simple Building a Business Case Determine Capital Expenditures Determine OperaBonal Expenditures Develop a MulB-­‐Year Total Cost of Ownership for each model (5/10 yr) Compare TCO for each model Determine CapEx & OpEx CAPEX ü ConstrucBon & Sok Costs (Greenfield, TI) ü Cable Plant ü Network Electronics ü DepreciaBon ü MigraBon OPEX ü
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Lease costs Power Maintenance Facility Management Security IT OperaBons Staff TelecommunicaBons Services Sales Tax MigraBon Prepare TCO for each Scenario Co-Location Example
E. Washington Co-­‐Lo (Phase-­‐In) 2011 Start
Operating Costs
Power Predictive Maintenance
Rent
IT Staff
Facilities Staff
Telecommunications
Co-­‐lo Setup Costs
DC Equipment Sales Tax
Operating Costs Subtotal
Capital Costs DC TI Racks / Cabling
Network Electronics
Migration Costs
Capital Costs Subtotal
Depreciation Cash Flow
Total
Year 1
Year 2 Year 3 Year 4
Year 5 5 year Total Year 6
$ 46
$ -­‐
$ 478
$ 90
$ -­‐
$ 828
$ 120
$ 128
$ 1,690
$ 96
$ -­‐
$ 915
$ 93
$ -­‐
$ 845
$ -­‐
$ 130
$ 2,079
$ 154
$ -­‐
$ 1,244
$ 96
$ -­‐
$ 861
$ -­‐
$ 133
$ 2,489
$ 166
$ -­‐
$ 1,269
$ 99
$ -­‐
$ 879
$ -­‐
$ 135
$ 2,548
$ 178
$ -­‐
$ 1,294
$ 102
$ -­‐
$ 896
$ -­‐
$ 138
$ 2,609
$ 641
$ -­‐
$ 5,201
$ 480
$ -­‐
$ 4,309
$ 120
$ 664
$ 11,414
$ -­‐
$ 1,112
$ 879
$ 1,624
$ 3,615
$ 1,958
$ 5,305
$ 3,649
$ -­‐
$ -­‐
$ 188
$ 915
$ 1,104
$ 1,288
$ 3,183
$ 3,367
$ -­‐
$ -­‐
$ 188
$ 634
$ 823
$ 1,296
$ 3,311
$ 3,785
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 410
$ 2,548
$ 2,958
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 410
$ 2,609
$ 3,019
$ -­‐
$ 1,112
$ 1,256
$ 3,174
$ 5,541
$ 5,363
$ 16,956
$ 16,777
Year 7
Year 8
Year 9
Year 10 10-­‐ Year Total
$ 192
$ -­‐
$ 1,411
$ 105
$ -­‐
$ 914
$ 17
$ 141
$ 2,779
$ 205
$ -­‐
$ 1,439
$ 108
$ -­‐
$ 932
$ -­‐
$ 144
$ 2,828
$ 220
$ -­‐
$ 1,468
$ 111
$ -­‐
$ 951
$ -­‐
$ 144
$ 2,894
$ 237
$ -­‐
$ 1,497
$ 115
$ -­‐
$ 970
$ -­‐
$ 146
$ 2,965
$ 254
$ -­‐
$ 1,527
$ 118
$ -­‐
$ 990
$ -­‐
$ 146
$ 3,035
$ 1,749
$ -­‐
$ 12,542
$ 1,037
$ -­‐
$ 9,066
$ 137
$ 1,384
$ 25,916
$ -­‐
$ 127
$ 378
$ -­‐
$ 505
$ 328
$ 3,284
$ 3,107
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 290
$ 2,828
$ 3,119
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 94
$ 2,894
$ 2,988
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 94
$ 2,965
$ 3,059
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 94
$ 3,035
$ 3,129
$ -­‐
$ 1,240
$ 1,633
$ 3,174
$ 6,047
$ 6,262
$ 31,963
$ 32,178
Total Cost of OperaBon Tenant Improvement Example
Seattle TI/Lease Operating Costs
Power Predictive Maintenance
Rent
IT Staff
Facilities Staff
Telecommunications
Other Costs
DC Equipment Sales Tax
Operating Costs Subtotal
Capital Costs DC TI Racks / Cabling
Network Electronics
Migration Costs
Capital Costs Subtotal
Depreciation Total
Year 1
Year 2 Year 3 Year 4
$ 297
$ 131
$ 462
$ 250
$ 147
$ 828
$ -­‐
$ 131
$ 2,246
$ 320
$ 221
$ 476
$ 258
$ 151
$ 845
$ -­‐
$ 134
$ 2,405
$ 345
$ 279
$ 490
$ 265
$ 155
$ 861
$ -­‐
$ 137
$ 2,533
$ 371
$ 233
$ 505
$ 273
$ 160
$ 879
$ -­‐
$ 139
$ 2,561
$ 400
$ 240
$ 520
$ 282
$ 165
$ 896
$ -­‐
$ 142
$ 2,644
$ 1,734
$ 1,104
$ 2,453
$ 1,328
$ 778
$ 4,309
$ -­‐
$ 683
$ 12,388
$ 6,078
$ 1,112
$ 1,157
$ -­‐
$ 8,347
$ 796
$ 3,041
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 796
$ 3,200
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 859
$ 3,392
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 796
$ 3,357
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 796
$ 3,440
$ 6,078
$ 1,112
$ 1,157
$ -­‐
$ 8,347
$ 4,041
$ 16,429
In thousands
Year 5 5 year Total Year 6
Year 7
Year 8
Year 9
Year 10 10-­‐ Year Total
$ 429
$ 247
$ 536
$ 290
$ 170
$ 914
$ -­‐
$ 145
$ 2,730
$ 460
$ 254
$ 552
$ 299
$ 175
$ 932
$ -­‐
$ 148
$ 2,820
$ 494
$ 262
$ 568
$ 308
$ 180
$ 951
$ -­‐
$ 148
$ 2,911
$ 530
$ 270
$ 585
$ 317
$ 186
$ 970
$ -­‐
$ 151
$ 3,009
$ 568
$ 278
$ 603
$ 326
$ 191
$ 990
$ -­‐
$ 151
$ 3,107
$ 4,216
$ 2,415
$ 5,296
$ 2,868
$ 1,680
$ 9,066
$ -­‐
$ 1,425
$ 26,966
$ 876
$ 127
$ 378
$ -­‐
$ 1,381
$ 716
$ 3,447
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 716
$ 3,537
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 557
$ 3,468
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 557
$ 3,566
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ -­‐
$ 557
$ 3,664
$ 6,954
$ 1,240
$ 1,535
$ -­‐
$ 9,728
$ 7,145
$ 34,111
Compare Models Year 1
Year 2
Annual Operating Costs Years 1 -­‐10
(in 1000's)
Year 3
Year 4
Year 5
5 year Total
Dif $
Dif %
10 Year Total
Dif $
Dif %
As-­‐Is
Optimized Owned
Owned
$ 2,929 $ 3,125 $ 3,461 $ 3,661 $ 3,878 $ 17,054 $ -­‐
$ 2,669 $ 2,869 $ 3,047 $ 3,232 $ 3,433 $ 15,251 $ (1,804)
0%
-­‐11%
$ 39,639 $ -­‐
$ 35,527 $ (4,112)
0%
-­‐10%
Market 1
Co-­‐Lo
$ 3,145 $ 3,117 $ 3,281 $ 3,298 $ 3,383 $ 16,224 $ (830)
-­‐5%
$ 33,773 $ (5,866)
-­‐15%
Market 2
Co-­‐Lo
$ 3,205 $ 3,188 $ 3,362 $ 3,391 $ 3,489 $ 16,635 $ (419)
-­‐2%
$ 34,896 $ (4,743)
-­‐12%
Market 3 TI / Lease $ 4,388 $ 3,653 $ 3,900 $ 3,882 $ 3,993 $ 19,816 $ 3,620
21%
$ 44,423 $ 4,784
12%
Market 4
$ 3,327 $ 3,400 $ 3,610 $ 3,677 $ 3,814 $ 17,828 $ 3,449
20%
$ 38,203 $ (1,436)
-­‐4%
Market 5 TI / Lease $ 3,302 $ 3,497 $ 3,730 $ 3,717 $ 3,823 $ 18,068 $ 3,447
20%
$ 38,071 $ (1,569)
-­‐4%
Market 6
20%
$ 37,778 $ (1,861)
-­‐5%
Co-­‐Lo
Co-­‐Lo
$ 3,306 $ 3,368 $ 3,557 $ 3,622 $ 3,746 $ 17,599 $ 3,425
Scenario Analysis Annual Operating Expense Comparison
$10,000 Annual O perting Expenses (1,000's)
$9,000 Senario 1
$68.1M 1 0 Yr TOC
$8,000 Scenario 2
$65.5M 1 0 Yr TOC
$7,000 $6,000 $5,000 Scenario 3
(Current-­‐state with expansion)
$58.7M 1 0 Yr TOC
2009 w/Stabalization
$4,000 2009
$3,000 $2,000 $1,000 0
1
2
3
Scenario 2
4
Year
5
Scenario 1
6
7
Scenario 3
8
9
10
Case Studies Major Regional Bank
Issues Results Analysis ü Aging primary data center in a high risk region ü Sub Tier 2 design ü History of outages ü Running out of capacity ü Facing major capital expenditures to retrofit the primary data center ü Lease expiring on Disaster Recovery site ü Assess deficiencies of exisBng faciliBes ü Determine amount of Bme before the DC reaches capacity ü Evaluate low-­‐risk markets ü Evaluate own vs. co-­‐lo Outcome ü Move primary DC to co-­‐lo ü Retrofit exisBng DC to Tier 2 ü Repurpose exisBng DC to sub-­‐
producBon and DR ü Improved availability with nominal increases in TOC Case Studies Global Technology Company
Issues Results Analysis 40+ data centers worldwide Growing through acquisiBon Unsustainable operaBng costs Unmanageable data center footprint ü Business driver to consolidate operaBons ü Latency sensiBvity from global engineering applicaBons ü
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ü Assess operaBon efficiencies and costs ü Evaluate mulBple markets and corporate owned real estate ü Evaluate geo-­‐regional consolidaBon alternaBves ü Analyze enterprise architecture ü Evaluate own vs. co-­‐lo Outcome ü Geo-­‐regional consolidaBon (N.A, ENAME, PAC-­‐RIM) ü Deploy owned Tier 2+ ü MulB-­‐site recovery ü $100M+ 10-­‐year future cost avoidance Case Study Global Entertainment Company
Issues Results }
ü Significantly high energy costs ü High-­‐risk locaBon ü Planning for significant business technology iniBaBves ü Facing future capital expenditures to uplik primary data center Analysis ◦ Assess deficiencies of exisBng faciliBes ◦ Determine impact of new compuBng demand ◦ Evaluate low-­‐cost markets ◦ Evaluate own vs. co-­‐lo }
Outcome ◦ Expand primary DC to co-­‐lo ◦ Leverage exisBng facility for business partner and DR ◦ Recommended phased deployment to opBmize ROI Case Study Regional Healthcare Company
Issues Results }
ü Aging primary data center in a high risk region ü Sub Tier 2 design ü History of outages ü Running out of capacity ü Facing major capital expenditures to retrofit the primary data center ü Affinity for in-­‐State deployment Analysis ◦ Assess deficiencies of exisBng faciliBes ◦ Assess miBgaBon strategies to buy Bme ◦ Evaluate regional markets ◦ Evaluate own vs. co-­‐lo }
Outcome ◦ Move primary DC to co-­‐lo in a lower risk geography ◦ Repurpose exisBng DC to sub-­‐
producBon and DR ◦ Stabilize current environment ◦ Recommended best value alternaBve Thank you for your Bme! 
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