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Consulting • Engineering • Outsourcing

Investing in Data Centers?

Opportunities, challenges and strategies

5.º Fórum Lusófono das Comunicações

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01. Data Centers

4

15

02. Opportunities

03. Challenges

20

04. Strategies

28

AGENDA

05. About Maksen

33

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Data Centers

01.

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Investing in Data Centers?

What is a Data Center

“Data Centers are facilities which are specifically designed and build to house computer, storage, and telecommunications systems”

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Investing in Data Centers?

Evolution of Data Centers

Yesterday (Early 90s – 2002: Dot.com Revolution) Siloed Data Centers - Hardware has leaded the way. The Data Center is/was an infrastructure where the servers and storage are located, operated and managed.

Today (2003 – Today: Virtual Technology Revolution) Virtualized/Pool Data Centers - Software is leading the way. The primary goal for Data Centers is to connect users to applications. Data Centers are evolving from isolated resource “islands” to interconnected pools of virtualized resources shared between multiple Data Center locations helping business cut costs and maximize IT efficiency

Tomorrow (2011- ?: Hybrid Cloud Revolution) Dawn of Software-Defined Data Centers - “Data Centers without walls – Oceans of data”. Everyone who works in IT will be a service provider.

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Investing in Data Centers?

Types of Data Centers (1/2)

There are 4 types of Data Centers (TIA – Telecommunication Industry Association)

TIA-942: Published in 2005, the Telecommunications Infrastructure Standards for Data Centers was the first standard to specifically address Data Center infrastructure and was intended to be used by Data Center designers early in the building development process.

Tier 1 – Basic, no redundant components (N): 99.671% availability • Susceptible to disruptions from planned and unplanned activity • Single path for power and cooling

• Must be shut down completely to perform preventive maintenance • Annual downtime of 28.8 hours

Tier 2 - Redundant Components (limited N+1): 99.741% availability

• Less susceptible to disruptions from planned and unplanned activity • Single path for power and cooling includes redundant components (N+1) • Includes raised floor, UPS and generator

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Investing in Data Centers?

Types of Data Centers (2/2)

Tier 3 - Concurrently Maintainable (N+1): 99.982% availability

• Enables planned activity (such as scheduled preventative maintenance) without disrupting computer hardware operation (unplanned events can still cause

disruption)

• Multiple power and cooling paths (one active path), redundant components (N+1) • Annual downtime of 1.6 hours

Tier 4 - Fault Tolerant (2N+1): 99.995% availability

• Planned activity will not disrupt critical operations and can sustain at least one worst-case unplanned event with no critical load impact

• Multiple active power and cooling paths • Annual downtime of 0.4 hours

Due to the doubling of infrastructure (and space) over Tier 3 facilities, a Tier 4 facility will cost significantly more to build and operate. Consequently, many organizations prefer to operate at the more economical Tier 3 level as it strikes a reasonable balance between CAPEX, OPEX and availability.

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Investing in Data Centers?

Services & components of a successful Data Center

• Build room: Stacking; Configuring; Testing new systems before they go into

production

• Monitoring: Monitoring tools sends out “pings” to each resources such as databases, applications, network devices. Failure to respond results in a degraded service

condition report

• Redundancy and disaster recovery: Redundancies and back-ups provisions protect interruptions

• Storage: SAN – Storage Area Network

• Fire suppression; Earthquake and seismic isolation platforms; Smoke sensors • Power supply

• Climate & cooling systems (HAVAC); Temperature sensing system

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Investing in Data Centers?

Data Center’s vital signs

• Strong heart: The power system (UPS, capacitors and batteries). UPS system failure

costs accounted for 29% of data center outages laste year, and the average UPS related failure cost USD 689.700.

• Sharp brain: Data center consolidation, virtualization and cloud computing help

keeps your Data Center running at peak efficiency – delivering real-time

information, allowing you to make the best decisions to operate and maintain your infrastructure.

• Efficient air intake & circulation: Check the air pumping, keep temperature and

humidity in the recommended range. Cooling accounts for 40% of total energy used for the average Data Center.

• Diet & exercise: A proactive approach to service and maintenance in the Data

Center can extend the life cycle of IT equipment and delay major capital investments.

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Investing in Data Centers?

Data Center’s benefits

• Savings – Switching to server virtualization can lower capital costs, reduce

downtime and increase efficiency

• Servers – Consolidating server infrastructure and leveraging automation tools drives

availability

• Storage – Software and policy-based management systems reduce labor and

optimize storage

• Networks – Big Data means that a strategic plan of action for data center is a

necessity

• Operation & Maintenance – Forecasting facility power, space, capacity and

availability means less disruption

• Risk Management – Thinking through and planning for potential risks can optimize

opportunities

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Investing in Data Centers?

Largest Data Centers

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Investing in Data Centers?

Data Center’s statistics (1/2)

• 500.000 Data Centers worldwide

• More than 15.000 Data Centers are the size of a football field

• In 2013, mankind has created 1,9 trillion GB of data (Every person on earth would have 16 iPhones)

• Total investment in Data Center IT infrastructure will grow 5% on average per year to reach USD 125 billion in 2016

• 84% of enterprises planned to add Data Center capacity due to the influx of new applications and efficiency constraints

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Investing in Data Centers?

Data Center’s statistics (2/2)

• In 2008, only 12% of server workloads were virtualized. 60% of server workloads are

virtualized in 2013

• 5,75 million new servers are installed each year • Average server life is 3 years

• Average Data Center is 9 years old (Gartner suggests that a Data Center that is more than 7 years old is obsolete)

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Opportunities

02.

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Investing in Data Centers?

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Investing in Data Centers?

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Investing in Data Centers?

What’s driving Data Centers usage (1/2)

Source: Adapted from CenturyLink Business;

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Investing in Data Centers?

What’s driving Data Centers usage (2/2)

• State pressure on business: Telco´s & Banking Regulators are increasing data protection & privacy requirements compliance

• Mobile& BIOD (Bring Your Own Device) explosion

• Industry trends – Water and economization are techniques that are gaining popularity in the general Data Centers solutions industry, as providers seek lower infrastructure costs

Source: Adapted from CenturyLink Business; Emerson Network Power; Oracle “Challenges to a Modern Optimized Data Center”

• By 2020: 10 x more servers + 50 x more [BIG] data + 75 x more files, all with 1,5 more IT personnel

• Increased costs – 24/7/365 = >USD450.000 p/yr. It takes a minimum of 5 IT

employees to achieve a baseline 24/7/365 support team, with an average cost of USD 450.000

• Globalization – 25% of all commerce is truly global (USD 1,25 trillion = GDP of Mexico)

• Demographic growth – youth & technology awareness

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Challenges

03.

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Investing in Data Centers?

Complexity challenge (1/2)

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Investing in Data Centers?

Complexity challenge (2/2)

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Investing in Data Centers?

Energy (“Go Green”) challenge (1/2)

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Investing in Data Centers?

Energy (“Go Green”) challenge (2/2)

• Fresh air technology: allows

servers, storage units, and

network switches to run at more extreme temperatures (up to 45º C) to help save on cooling and, in some climates, eliminate chillers altogether

• Economizer cooling: involves

using only outside air to keep the Data Center cool (effective in climate as hot as 33ºC)

Source: GreenIT_LP

A green Data Center is designed in such a way as to maximize PUE – Power Usage

Effectiveness (PUE = Total Facility Power/IT Equipment Power. Ideal PUE = 1), minimize

environmental impact and using alternate

forms of energy like wind or solar power

• The ICT sector is responsible for 2% of the world´s Global Carbon Emissions oh witch 14% is attributed to Data Centers

• Server virtualization: virtualizing a single

server can save 7.000 KWh in electricity a year and about USD 7.000 in energy costs over 10 years

• Data Center containment: which involves

separate hot and cold air to maximize cooling potential (7.7% improvement in overall energy efficiency)

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Investing in Data Centers?

Cost challenge

What are the biggest challenges your organization faces in managing its Data Center operations? • 51% Software costs • 46% Hardware costs • 42% Maintenance costs • 36% Physical constraints • 27% Labor costs • 25% Back up costs

• 14% Ageing servers costs • 10% Electricity costs

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Investing in Data Centers?

Downtime challenge (1/2)

Source: VirtualHosting “Data Center Downtime –

What does it cost the World Economy”

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Investing in Data Centers?

Downtime challenge (2/2)

84% of Data Centers had issues with

power, space and cooling capacity,

assets, and uptime that negatively impacted business operations. … Consequences to the Business (repeated events sum up more than 100%):

• 31% Delay in applications rollout • 30% Disrupted ability to provide

service to customers

• 27% Forced to spend unplanned OPEX budget

• 26% Need to roll back an application deployment

Source: IDC “Global DCIM Survey 2012” Source: VirtualHosting “Data Center Downtime – What does it cost the world economy?”

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Strategies

04.

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Investing in Data Centers?

Public Policy strategies

• Strategy #1: Don´t be e-locked to e-trade (two pillars: high education; international telecommunications)

• Strategy #2: Create a transparent and investor-friendly environment for Data Centers

• Strategy #3: Try to attract FDI (Foreign Direct Investment), not AID • Strategy #4: Become a Data Center´s haven for the region (CPLP) • Strategy #5: Increase neighborhood growth spillover

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Investing in Data Centers?

Tech strategies (1/3)

• Trait #1 Optimization: Use storage virtualization; Employ data deduplication; Servers virtualized

• Trait #2 Flexibility: Primary Data center replicated with active-active; Upgrade equipment, no disruption; Use replication for storage backup

• Trait #3 Automation: Implement storage service catalog; Move virtual machines to meet SLAs; Monitor thermal conditions

• Trait #4 Planning: Adopt technology quickly; Forecast power demand; Have a converged infrastructure implementation plan

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Investing in Data Centers?

Tech strategies (2/3)

• Reduced complexity: Reduce the total number of vendors and application versions.

Simplify IT and unlock resources to focus on Business Innovation

• Increases performance & flexibility: 10x faster networking CPU and memory; 10-50x

faster query responses; Cloud-services built-in; integrated management and provisioning

• Risk reduction & integration: Best of bread components; Optimized solutions, and

engineered systems are all engineered to work together

• Consolidate servers 20 to 1: Reduce deployment time and costs by 75%

• “Greenify”/Carbon neutral: Conserving energy; Utilizing more

environmentally-friendly power sources

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Investing in Data Centers?

Tech strategies (3/3)

How is your organization working to optimize its Data Center? • 55% Consolidating software

• 55% Consolidating hardware • 27% Improving storage utilization • 22% Reducing maintenance spend • 14% Improving energy management • 14% Improving backup

• 11% Consolidating vendors

• 7% Improving software management • 21% Other

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About Maksen

05.

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About us

Contact

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Distribution list:

• Secretariado do 5.º Fórum Lusófono das Comunicações Maputo, 24 de Abril de 2014

Investing in Data Centers?

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