Colocation
Whitepaper
Related product:
Teraco colocation
services
Current trends in data
centre outsourcing
April 2013
C U R R E N T
T R E N D S
I N
D A T A
C E N T R E
O U T S O U R C I N G
1 Global IT Outsourcing Trends
IT execs worldwide say:
What’s driving demand?
“Owning and operating IT infrastructure results in higher costs and
wasted resources” ~ 60% agree
•
“Expect to save on average 25% of IT budgets through outsourcing”
agility,
in
mobile platforms
applications (5x); IP traffic (4x).
•
Massive shift to virtualisation in the cloud.
•
On-going efforts to secure space, power,
“Purchasing IT assets turned out to be a mistake”
cooling
and
low
latency
network
connectivity.
“IT infrastructure ownership ties us into specific assets, undermining
the ability to move with changing environments”
“We already outsource over 25% of our IT infrastructure”
growth
(39x over last 6 years); video and real-time
“Cloud will play a huge role in the IT landscape over the next
decade”
“Providing competitive advantage through enhanced
scalability and operational efficiencies is top priority”
Exponential
•
Organisations unwilling to invest significant
capital in DC infrastructure without knowing
“In 5 years time, over 40% of our IT infrastructure will be
outsourced”
“Outsourcing is key to meet continually evolving compliance
requirements, like King III in SA”
future
dynamics
of
power,
space
and
cooling requirements.
Source: 2012 Global IT Leadership Report
C U R R E N T
T R E N D S
I N
D A T A
C E N T R E
O U T S O U R C I N G
2 Benefits of Outsourcing
Services are flexible and adaptable to business needs. “Pay-per-use” model
provides for scalable cost relative to services used.
Key benefits include:
- cost reduction or containment
- infrastructure scalability and flexibility
- improved quality of service as a result of vendor’s dedicated focus
Source: 2012 Global IT Leadership Report
Source: Fast Forward to 2013: Savvis
C U R R E N T
T R E N D S
I N
D A T A
C E N T R E
O U T S O U R C I N G
3 True costs of DC ownership
True / False? TCO = Cost of space + Cost of power?
Capital Costs
Ave R150k/m2, which moves to R250k/m2 for Tier
III configuration (99.999% uptime) and
upgradable Power
Capacity requirements – estimated demand over
the next 4-8 years’
Upfront planning, design and commissioning:
Design kw/m2
Operating Costs
Staffing and operational environment 24*7*365
Network connection costs – fibre connectivity to
site from primary and redundancy
Power, Power, Power (not only IT power but
facilities use of power – cooling)
Annual facility and infrastructure maintenance
Staff skills
Location
Access to fibre connectivity and redundant links
Accessibility to power, local council applications,
estimate future use
Capital budgets
Lead times / Construction time
Power availability now and in the future
Base building shell and property
Data centre infrastructure, mechanical and
electrical
Fire suppression and detection
Security
Monitoring systems
ource: 2012 Global IT Leadership Report
C U R R E N T
T R E N D S
I N
D A T A
C E N T R E
O U T S O U R C I N G
4 Colocation TCO benefits
According to Gartner, 64% of organisations engage in some form of
datacentre colocation services.
Studies show breakeven point for own vs operate per cabinet is
approx. 90 cabinets (for capex only – this assumes 100% utilisation
from commencement)
True TCO requires unused capacity calculation. Space, power and
cooling from commissioning through to full utilisation and retirement
measurably impacts calculations.
Most 10-year DCs fail to reach intended capacity. Typically only 30%
is achieved across space, power and cooling.
Even a 50% utilisation projection would double TCO – per cabinet
Predicting power, space and cooling requirements for 10 years is
almost impossible
TCO of a rack (both used and unused) is approximately R1m over the
DC lifetime (half capital, half operational).
Best form of rightsising to adapt IT spend to changing requirements
is outsourcing
Source: The Elephant in the Room is Lost Capacity, Future Facilities
Colocation (n) : “A utility based cost option for physical facilities where IT assets are placed in a service provider’s
facility giving the ability to take advantage of shared power infrastructure, HVAC systems, physical security and
redundant architecture. Space is leased whilst maintaining ownership and control of assets allowing a company to quickly
expand and conserving capital at the same time”
C U R R E N T
T R E N D S
I N
D A T A
C E N T R E
O U T S O U R C I N G
5 Outsource considerations
Why outsourced infrastructure?
More predictable expenditure model
Flexible and pay-as-you-use cost infrastructure
Expandability and scalability of footprint
Expandability and scalability of power usage
Experienced and certified professionals focusing on running
datacentres
Improved reliability and availability
Improved efficiency and performance
Reduced and eliminated costs
Reduced risks
Compliance requirements met – King III
Convert your outsource
costs into business
enablement
investments
Is your DC provider vendor neutral?
Can your business benefit from internet
growth and network innovations?
Can you leverage cloud applications?
Can you leverage a pay-per-use model?
Does your DC provider have a virtual
marketplace of choice?
Can you connect to your partners,
suppliers, vendors and customers?
Does your outsourcer?
Provide access to multiple carriers and service providers?
Have multiple fibre connectivity with a ring configuration?
Provide locality to local support staff?
Have necessary skills to build and run a DC environment?
Provide service level agreement underwriting uptime
commitments?
How many networks can your business
access from your current DC?
Do you have access to peering points /
exchanges?
Do you have access to business
ecosystems?
Thank you