DCM 18.1 How to Prepare
a Data Center Strategy
What you need to know to build a business case
for data center sourcing
Presented by:
Steve Miano, Managing Principal, &
Gary Davis, Principal/Director, Data Center
Practice at PlanNet Consulting
DCM 18.1 How to Prepare a Data Center Strategy
We will present an informative how-to-guide for data
center managers looking to understand the process of
developing a data center strategy. Along with helpful
tips, real-life project examples will be utilized for
decision-makers to decide whether to upgrade, build, consolidate
or co-locate their data centers.
Agenda
What is a data center strategy?
Getting 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 initiated for any or all of
the following reasons:
Data center failures are impacting the business
Growth is expected to exceed power, cooling and/or space
capacities
Risk – real or perceived
Lowering Cost of Operation
Improve systems availability and disaster recovery
Getting Started
Define your objectives
Business drivers
Technology imperatives
Desired outcome
Assemble a Core Team
Identify/appoint a project sponsor
•
Sponsorship typically comes from Real Estate, Facilities or IT
Typical make-up of a Core Team
•
Facilities representative (VP, Director)
•
IT representatives
-
CIO, IT Infrastructure VP, Network, user representative(s)
Identify Stakeholders
A data center strategy has
many stakeholders
It’s critical to engage to
appropriate stakeholder
resources to gain consensus
and eliminate surprises
Missing a key stakeholder is
analogous to missing a tire on
your car
Gather Information
Formalize the project with a stakeholder kick-off
Introduce the initiative and objectives
Layout timelines
Assessing the Current State
Develop and issue a Comprehensive
Request for Information and meet with
Stakeholders to gather information
Some of the information is
available electronically (e.g.,
CMDB, As-Built drawings, energy
bills, etc.)
Some of the information will be
drawn out in Stakeholder
meetings (e.g., application
portfolio, financial models, etc.)
RFI Categories
Equipment/application inventory
Data Center Facilities
Real Estate
Operations
Network
Business Systems and Services
Business Continuity
Finance
Growth and Capacity Planning
IT Strategic Plan
Assessing the Current State
Key Points
Establish current demand load
KW is the currency
Determine historical demand growth (3-5 years)
Assess existing facility’s attribute and constraints (e.g., Tier rating, power, cooling,
space, SPOCs)
Identify applications and their tier levels
Identify network constraints (e.g., latency sensitive applications)
Identify adjacency requirements/constraints
Identify key business and IT initiatives (e.g., new business ventures,
merger/acquisition, virtualization, etc.)
Future State
Identify the future state scenario
Establish operational objectives and service levels
Establish availability targets
•
Tier Rating
•
Geography
Determine efficiency objectives (PUE)
Define sustainability goals
Consider adaptability needs
Establish the Future State
Determine relevant sourcing models
Co-Location
Greenfield
Tenant Improvement
Retrofit Existing Facilities
Cloud Managed Services
Select markets to be evaluated
Ideally, markets with co-location options, cheap power and free-cooling potential
Determine business affinity to particular markets
•
Existing operations
•
Business drivers
•
Existing or future real estate or facility programs
Include any market bias of executive management
Establish Demand Forecast
Align business growth with IT growth
Optimize IT deployment as part of the deployment of a new data
center
6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 Cap ac ity D em an d -k W at tsEstablish Demand Forecast
Establish capacity threshold vs. demand forecast
Depict historical growth with future planning
Define Day 1/Day 2
Plan for incremental deployment based on demand
forecast
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 k W at tsSite 1 - Production Buildout Phases
* DAY 1: 3,900 kW, 22.5K SF
Market Analysis
Qualitative Metrics
use to disqualify markets
Energy
Rates vs. Nat’l average Sustainability Free cooling Reliability
Telecommunications
Diversity Relative costs LatencyLabor
Availability Relative costsFacilities
Control/Lease TermsTransportation/Accessibility
Flight Availability Door to Door TimeVendor and Services Support
Proximity to critical vendors
Environmental Risk
Seismic/Volcanic Hurricane/Tidal Severe Weather
Incentives (very dependent on specific properties)
Enterprise Zones Sales Tax
Qualitative Market Rankings
What’s
important to
you?
Building a Business Case
Determine Capital Expenditures
Determine Operational Expenditures
Develop a Multi-Year Total Cost of Ownership for each
model (5/10 yr)
Determine CapEx & OpEx
OPEX
Lease costs
Power
Maintenance
Facility Management
Security
IT Operations Staff
Telecommunications
Services
Sales Tax
Migration
CAPEX
Construction and Soft Costs (Greenfield, TI)
Cable Plant
Network Electronics
Depreciation
Migration
• Equipment • IT Labor / ServicesTotal Cost of Operation
Total Cost of Operation
Tenant Improvement Example
Seattle TI/Lease Year 1 Year 2 Year 3 Year 4 Year 5 5 year Total Year 6 Year 7 Year 8 Year 9 Year 10 10- Year Total Operating Costs Power $ 297 $ 320 $ 345 $ 371 $ 400 $ 1,734 $ 429 $ 460 $ 494 $ 530 $ 568 $ 4,216 Predictive Maintenance $ 131 $ 221 $ 279 $ 233 $ 240 $ 1,104 $ 247 $ 254 $ 262 $ 270 $ 278 $ 2,415 Rent $ 462 $ 476 $ 490 $ 505 $ 520 $ 2,453 $ 536 $ 552 $ 568 $ 585 $ 603 $ 5,296 IT Staff $ 250 $ 258 $ 265 $ 273 $ 282 $ 1,328 $ 290 $ 299 $ 308 $ 317 $ 326 $ 2,868 Facilities Staff $ 147 $ 151 $ 155 $ 160 $ 165 $ 778 $ 170 $ 175 $ 180 $ 186 $ 191 $ 1,680 Telecommunications $ 828 $ 845 $ 861 $ 879 $ 896 $ 4,309 $ 914 $ 932 $ 951 $ 970 $ 990 $ 9,066 Other Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -DC Equipment Sales Tax $ 131 $ 134 $ 137 $ 139 $ 142 $ 683 $ 145 $ 148 $ 148 $ 151 $ 151 $ 1,425 Operating Costs Subtotal $ 2,246 $ 2,405 $ 2,533 $ 2,561 $ 2,644 $ 12,388 $ 2,730 $ 2,820 $ 2,911 $ 3,009 $ 3,107 $ 26,966 Capital Costs
DC TI $ 6,078 $ - $ - $ - $ - $ 6,078 $ 876 $ - $ - $ - $ - $ 6,954 Racks / Cabling $ 1,112 $ - $ - $ - $ - $ 1,112 $ 127 $ - $ - $ - $ - $ 1,240 Network Electronics $ 1,157 $ - $ - $ - $ - $ 1,157 $ 378 $ - $ - $ - $ - $ 1,535 Migration Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
-Compare Models
Year 1
Year 2
Year 3
Year 4
Year 5
5 year Total
Dif $
Dif %
10 Year Total
Dif $
Dif %
As-Is Owned
$
2,929
$
3,125
$
3,461
$
3,661
$
3,878
$
17,054
$
-
0%
$
39,639
$
-
0%
Optimized Owned
$
2,669
$
2,869
$
3,047
$
3,232
$
3,433
$
15,251
$
(1,804)
-11%
$
35,527
$
(4,112)
-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
Co-Lo
$
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
Co-Lo
$
3,306
$
3,368
$
3,557
$
3,622
$
3,746
$
17,599
$
3,425
20%
$
37,778
$
(1,861)
-5%
Annual Operating Costs Years 1 -10
(in 1000's)
Scenario Analysis
$1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 0 1 2 3 4 5 6 7 8 9 10Annual Operating Expense Comparison
Annua l O pe rt ing E xpe ns es (1 ,0 00 's) Year Scenario 2 $65.5M 10 Yr TOC Senario 1 $68.1M 10 Yr TOC Scenario 3 (Current-state with expansion)
$58.7M 10 Yr TOC
2009 w/Stabalization 2009
