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Session DF3186
Speaker Bernard Cobb
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
A new data center strategy
for the New Style of IT
Disruptive trends impacting the world of IT
Data center silos
Past
IT
value
Speed
Cost
Simplicity
Consolidation
Standardization
Virtualization 1.0
Convergence
Delivering the
New Style of IT
2009
Today
2014+
Cloud
Mobility
Big Data
Security
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
5
The fundamental data center flaw
IT
Network
Servers
Storage
Application
Business
Data center
IT silos
Facility silos
Cloud
Security
Big Data
Mobility
New dynamics require the New Style of IT
Scalable, modular DC
Increased utilization
Modular capacity
Cloud-enabled
Right-sized
Optimal investment
Agile and converged
IT/business-aligned
IT
Network
Servers
Storage
Application
Business
Data
center
IT silos
Facility silos
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
7
What you can achieve with the New Style of IT
Provision infrastructure
and services as fast as the
swipe of a credit card
Keep apps running with
intuitive management and
intelligence built in
Optimize investments
and resources, with
reduced cost and risk
Simplicity across the data center
So what does that mean for my data center strategy?
My options
• Owned data center
• Hosted (co-location)
• Outsourced
• Public cloud
Option
Level of
control
Capital cost
OPEX
Owned data
center
Hosted
(co-location)
Outsourced
Public cloud
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc. a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
The facility aspect of the data center flaw
• High capital costs, especially for land, physical plant
• 15-to-20–year planning horizon: “build it now for all
eventualities”
• Long construction cycle
• “All or nothing” facility; inability to add phases
• High operating expenses, particularly energy costs
• Inflexible design, firm IT load limits
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
11
Data center builds are traditionally CAPEX-hungry
Custom greenfield
Up to 80% of costs relate to
MEP infrastructure
• Half of that amount is materials and labor
40%
Equipment
25%
Materials
25%
Trade labor
10%
Machinery
70%
Equipment
10%
Materials
10%
Trade labor
10%
Machinery
Whereas modularity shifts effort and
cost from field to factory
• Machinery—still used for site prep and lifting equipment
• Labor and materials—connecting all pieces together
The HP modular data center—a complete package
Modular elements typically included
• Data halls (includes fire protection,
security, and monitoring)
• Electrical plant
• Mechanical plant
• Factory-built
The modular data center range
• HP POD
• “Standard” modular (FlexibleDC)
• “Custom” modular
• Multi-tiered hybrid brick and mortar
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
13
Innovative modular technology
Reduced project schedule
• Concurrent activities within design and supply chain
Increased quality control
• Process engineering
• Standard production
• Factory testing
Reduced and/or mitigated project risks
• Site logistics and safety
• Site resource requirements and labor uncertainties
Menu-driven process for selecting
mechanical and electrical plant
Modular DC offer from HP
Capacity,
cost,
time to
deployment
Custom
brick and
mortar
Custom
modular
Standard
modular
HP POD
solutions
Type
Typical IT load
10 MW
5 MW
0 MW
1 MW to
50 MW+
500 kW to
10 MW+
500 kW to
6 MW
150 kW to
1.5 MW
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
15
IT and facility modularity combined
Modular
financing
Modular
consumption
Modular
deployment
For IT, this exists in PaaS (platform
as a service) and IaaS
(infrastructure as a service).
Combined with virtualization, IT is
packaged into deployable units and
presents disparate parts into a
module. We call this the converged
infrastructure.
In the data center, it is capacity
management that benefits by
having the ability to deploy a
module of IT, power, or cooling as a
The facility infrastructure is
right-sized for current usage. Data
center capacity can be measured
and consumed by power instead of
space.
With incremental growth, capital
requirements and the cost of capital
more closely match facility
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc. a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
Introducing HP
Facility-as-a-Service
HP Facility-as-a-Service (FaaS)
• HP FaaS provides a modular data center, designed to clients’
specifications where they also want to maintain control over
IT operations. FaaS provides clients with data center facilities,
under a long-term operating maintenance service agreement,
which provides off-balance sheet financing* and reduces
initial capital investment.
• FaaS allows customers to match facility costs to their
revenue streams, and mitigates their risks of building a data
center that is either too big and inefficient or too small and at
capacity.
• FaaS is a new alternative to funding the build of a new data
center or utilizing co-location space, the only previous
options for owner-operated solutions.
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
19
HP FaaS 101
A modular data center, client (owner)-operated
• Full usage, provisioned through an ongoing, fully leveraged
maintenance service agreement
• HP retains ownership
Maintenance agreement covers
• Building infrastructure and plant
• Prefabricated data center modules (HP POD when applicable)
• Electrical equipment: generator, power conditioning, utility transformer
• Cooling equipment: chiller/air conditioning
Ongoing service for preventive maintenance or
facilities management
What HP FaaS is and is not
FaaS is
FaaS is NOT
A time-based maintenance agreement, with
cost of the facility included in the monthly
charge
An outsourcing arrangement
A data center facility
A cloud service or HP Flexible Capacity
Risk-mitigated and future-proofed
A one-time, low-cost commodity solution
Customer-operated
Co-location or a hosted service
Custom-designed to client specifications
A one-size-fits-all, inflexible, boxed solution
Client-directed; if desired, clients can work
with their own general contractors, and HP
can act as a PMO
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
21
The financial justification
Cumulative cash outlay for a facility
with 1 MW day-one capacity
Cumulative OPEX for a facility with
1 MW capacity
Co-location pricing
assumed at
$450/kW/month
inclusive of all costs
Millions
60
50
40
30
20
10
0
Build
Co-location
FaaS
Millions
60
50
40
30
20
10
0
Build
Co-location
FaaS
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
How FaaS compares to self-build and co-location
Traditional self-build
Co-location services
HP FaaS
Data center is a “one-off” project
Client pays “rent” for shared data center
FaaS is an ongoing partnership between
the client and HP
Relation with constructor ends, except
for warranty
Client has no control nor input into
decision-making/management
HP provides a DC to meets client’s needs
today, provisioned for ongoing needs
Client assumes risk that what is built
meets their needs
Provider owns and controls the facility
and infrastructure
Facility develops as client needs change
Funding needs justifying vs. business
needs
Provider controls access and change
management
Client maintains physical control of the
facility and its operations
Temptation to overbuild
Client adjusts IT to co-location
capacity/reliability restrictions
Facility costs match business needs at
the given time
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
23
Deeper dive, operational comparison with co-location
Feature
Co-location provider
HP FaaS
Physical security
Service provider controls
Customer controls
Infrastructure access
Service provider controls
Customer controls
Maintenance
Service provider schedules
Customer and HP will schedule together
Change management
Service provider controls
Customer controls
Physical access
Shared with other service provider
customers
Customer restricts and controls
Network hub
Service provider decides and controls
Customer decides and controls
IT density in rack
Service provider may dictate or restrict
Customer controls
Expansion/growth/new
technology
The FaaS decision tree
Need a
new data
center
Yes
No
What is the
business
priority?
Minimize both initial
capital investment and
manage ongoing OPEX
HP
Facility-as-a-Service
Manage ongoing
operational expenditures
Build new
data center
Minimize initial
capital investment
Want to
outsource IT
operations
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
25
Benefits of HP FaaS with HP modular data centers
HP Facility-as-a-Service
•
Reduced initial capital investment, redirect
capital resource
•
Long-term operating service agreement, full
operating coverage
•
Owner-operated model, designed to meet
needs and maintain control of IT
•
Alternative to complete outsourcing or
co-location
•
Designed to your use case for capacity,
criticality, and provisioning
•
Modular approach provides provisioning to
match future IT rollout plans
•
Adding modules over time matches facility
costs to revenue stream
HP modular data centers
• Prefabricated infrastructure components
provide shorter project timeline
• Component menu accommodates all needs
• HP solution and project overview provides
plug-and-play, turnkey data center
• Industrialized project cost-efficiency, quality
control, and rapid deployment decrease time
to market
• Improved quality of facility and IT integration
creates optimized data center
• Flexible facility provides sized,
right-timed operations that adjust over time
• Modular design criteria provides optimal
Client engagement with HP Critical Facilities Services
• Determine sourcing strategy
• Facility strategy, design, implementation, assurance
• In tandem with IT program
Critical
Facilities
Strategy
• Capacity
projections
• Availability
needs
• Financial criteria
• Operating
Critical
Facilities
Design
• Designed-in
modularity
• Flexibility to
meet projections
• Multilevel
availability
Critical
Facilities
Implementation
• HP PMO
• Speedier time
to market
• Option of HP
or GC build
program
Critical
Facilities
Assurance
• Factory testing
• Integrated
system testing
• Operational
readiness
HP PMO
on FaaS
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
27
HP FaaS methodology
Civil and structural
construction
Contractor
Data center
maintenance
HP + Contractor
Modular data center
and MEP equipment
install
Contractor
• Design
• Site supervision
• Testing and
commissioning
• Can be HP turnkey
• Customer can contract
GC of choice directly
• Scheduled preventive
maintenance
• Reactive
• Data center modules
• Modular electrical and
cooling systems
Customer
HP PMO
Design the DC
Site preparation
Implementation
Operation
Contractual
relationship
Technical
requirements
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
29
FaaS contracting model: two separate customer
contracts
• One-time contract for site preparation/construction that customer owns
• Ongoing service agreement for MDC and infrastructure that HP owns
Infrastructure Facility-as-a-Service contract
General
contractor
Civil and structural site preparation contract
HP as prime
General
contractor
General contractor as prime
HP
General
contractor
Customer as
operator/user
Installation
Operations
HP as owner
HP as prime
Customer as
owner
Customer as
owner
FaaS contract model for modular data center and
infrastructure
IT infrastructure
DC and IT maintenance
DC infrastructure
over 5 years*
Usage fee
Usage fee
over 5 years*
Service fee
over 5 years*
Integrated service solution
as monthly fee
over 5 years*
Design, implementation, and commission:
services-based delivery milestones
• Does not matter if HP is prime or not
• One-time service, independent of overall solution
• Customer fully invoiced upon delivery acceptance
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
31
Client aspects of the maintenance service agreement
Client responsibilities
End-of-service options
• Physical control of assets on client’s site
• Insurance of tangible assets
• No alteration/modification of assets
• Usage of assets for business purpose only
• Usage based on manufacturer specifications
(normal wear and tear)
• Extend service agreement for next contract
period
• Automatic renewal of service agreement after
first 5-year term
• Buy-out assets and become legal owner
• Buy-out remaining service term; both
financed amounts and ongoing services (also
applies to early termination)
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
33
HP ongoing services
Facility maintenance services
Preventive
maintenance
Reliability assurance
testing
Custom call handling,
incident support
Operating procedures
oversight
Facility
management
IT support
HP Proactive Care
Services
HO Datacenter Care
Services
Full IT Managed
Services (HP
Enterprise Services)
Combine HP FaaS with HP Flexible Capacity
Modular data center + modular IT
Flexible Capacity
Network
Storage
Servers
Facility-as-a-Service
FaaS
Flexible Capacity
• OPEX, not CAPEX model
• Align infrastructure expense to
revenue
• Maintenance contract for
operational efficiency
• Data center capacity not
over-provisioned
• Add data halls on current,
identified needs
• Integrate with converged
management system
• OPEX, not CAPEX model
• Align infrastructure expense to
revenue
• Enterprise-grade service for
operational efficiency
• Unlimited; capacity buffer is
refreshed as it is used
• Add capacity on current, identified
needs
• Accurately monitor and manage
capacity
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
35
From building and maintaining a data center to building and consuming IT
Apply similar models to both data center and IT
• DC: Pay only for the data center you need today, configured and provisioned how you need it, plus a data
center maintenance contract, each month
• IT: Pay only for the servers, storage, networking capacity, software licenses, support, and services you
actually need and use each month
Flexible Capacity monthly
payment includes
1
• Servers
• Storage
• Networking
• Software
• Services
Back Office Solution
Powered by HP and
1
Minimums apply below certain usage levels
FaaS monthly payment includes
• Building infrastructure
• Prefabricated data center modules
(includes fire protection, security, and
monitoring)
• Electrical equipment: generator, power
conditioning, utility transformer
• Cooling equipment: chiller/air
conditioning
• Infrastructure
Variable usage = variable payment
• Usage = Billing
• Usage = Billing
• Usage = Billing
Simple call to action
More capital tied up in a facility, less can be invested in your business
• Build only what you need, as you need it
• Facility as a Service – modular build, modular deployment with modular payments
• Match facility spend with IT and business needs
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. As required by local U.S. or foreign law and/or regulation, professional engineering services will be provided by EYP MCF, Inc., a subsidiary of HP, or by an EYP MCF-related practice entity, or by another qualified engineering services provider in that location.
