Pursuing Operational Excellence - PowerPoint Presentation

Slide1

Pursuing Operational ExcellenceBetter Data Center Management Through the Use of MetricsSlide2

ObjectiveUse financial modeling of your data center costs to optimize their utilization.Slide3

Data Centers are Expensive to BuildA 1MW 7,500 ft2 “white space” commercial

data center will cost about

$16.7M

to

build.

The building to house that data center will be about 23K ft

2

. Total cost > $700/

ft

2

.

Compare

that to $100 - $150 / ft

2

for a custom home in

middle America.Slide4

Data Centers Are Expensive to Operate Monthly electric

bills

for a 1

MW

data center

average about $82.6k

(

$991K/

yr

.)

(At 85% occupancy, with a 1.5 PUE)

Network

charges are very high as

well.

The data

center infrastructure is

one of the

fastest growing cost of deploying

IT.Slide5

Data Center Cost AccountingDo you know how much your data center is costing you?Slide6

Data Center OpExThe best financial modeling strategy for data center OpEx is to boil down all operational costs into a monthly recurring cost (MRC) expressed in $/kW for every data center or colocation facility you operate in.This is your “cost of compute”.Slide7

Components of Data Center OpExDepreciationMaintenance of infrastructure components (Including preventative maintenance)

Utilities (power, water, …)

Fuel (e.g. diesel for generator tests)

Security

Salaries (for data center infrastructure personnel, dedicated security personnel)Slide8

Know your “cost of compute”Question you are answering:How much is it costing me to deploy a rack full of IT gear at a given location?Boil everything down to MRC in $/kWSlide9

Cost of ComputeKnow this number for every data center you own and for every colocation vendor you use.Easier to compute for dedicated data centers.

More difficult but possible to compute for shared use buildings.Slide10

OpEx Financial Accounting IssuesMRC in $/kW is not constant over

time.

There are seasonal

variations for cooling

loads.

Design targeted PUEs are attained at full loads

For a given location, MRC

in $/kW

will decrease as IT HW occupancy increases.Slide11

Typical Cost of ComputeFor a large Enterprise (economies of scale apply) in a concurrently maintainable data center

$235

- $300 / kW MRC

For small / medium Enterprise (no economies of scale)

in a non-

concurrently maintainable

DC

$300

- $400 /kW MRC; much higher for

a concurrently maintainable DC (which a small enterprise is unlikely to have)Slide12

Ways to Manage Cost of Compute in Your Data CenterCapacity PlanningEnergy ManagementCooling ManagementHeat ManagementSlide13

Capacity PlanningOne of best ways to control Costs of Compute is to control capacity.Benefits

Improved

quality of forecast over

time

Reduced

CapEx

if you can delay build out of new data

center

Better

decision supportSlide14

Financial Control Over Space & PowerMeasure and publish utilization over time.Know your metrics: (avg. kW/rack, avg. ft2/rack)

Set-up a space & power governance program

Must pre-authorize HW intake to data center

Must follow-through with decommissioning equipment.Slide15

Financial Control Over Energy Management

You

are probably spending too much!

You probably don’t know your PUE (Power Utilization Efficiency)

You are probably running too cold!Slide16

Energy Management StrategiesMeasure, track, and publish

your PUE

Use ASHRAE’s new recommended operating temperatures.

See Green

Grid

paper

on the

ROI of cooling

system improvementsSlide17

Why PUE is Important1 rack = 5kw5kw rack x 8,760 hrs = 43,800kwh/ year43,800 kwh x $0.07/ = $3,066 per rack annual

5,000

sqft

data center with 140 racks

140 racks x $3,066 = $429,240 annual IT energy costs

At PUE of 2 = $858,000 Total DC energy

At PUE of 1.5 = $643,500 Total DC energy

Difference: $214,500Slide18

Energy Management ROIGenerally speaking, for every 1.8°F that you raise the temperature in your data center, you save 2-4% of your total energy bill.Slide19

Seemingly Small Changes Can be Big91 watts vs 70 watts processors = 21 watts / processor21 watts x 2 processors = 42 watts savings

42 watts x 8760hrs / 1000 = 368 kwh

368kwh x $0.07/kwh = $25.75 per server

140 racks / 5000sqft DC 13 servers / rack

140 racks x 13 servers / rack = 1680 servers

1680 x $25.75 x 2

$

86,520Slide20

Cooling ManagementUnderstanding how much cooling your data center needs.

Convert

Formula

Example

Tons of air to BTU

12,000 BTUs = 1 ton of air

To find BTUs

Watts x 3.41 = BTU

2500w x 3.41 = 8525 (BTU)

1 kW

= .2843 tons

1 ton

= 3.517kW

Tons to kW

Tons x 3.52 = kW

20 tons x 3.52 = 70kW

kW to tons

kW x .28 = tons

70kW x .28 = 19.6 tonsSlide21

Cooling – effectivenessHow does your cooling capacity stack up against my IT load?

Load on the UPS in kW x .28 = tons of cooling

.

Compare this against tons of cooling in your data center.Slide22

Heat ManagementDC looking to add another CRAC unit. Consider heat containment first. Lets look at some simple napkin math, pursuant to a containment solution.

CRAC

Containment

CapEx

$80k

$

45k

OpEx

(5 yrs.)

$50k

$

0k

Total

$

130k $45kSlide23

Other Green Grid RecommendationsInstall OEM variable speed drives (VSDs) in all computer room air handlers (CRAHs). Upgrade older CRAH units with newer more efficient models.Improve rack airflow management by adding baffles and blanking panels, which improve isolation of hot and cold air aisles.

Reposition the CRAH temperature/humidity sensors from the inlets of the CRAHs to the front of the IT equipment racks.

Adjust the temperature set-points of the CRAH sensors and the chiller unitsSlide24

What About the Cost of OutsourcingIs you organization benefiting from selectively outsourcing some of your infrastructure?Slide25

There May be Financial Advantages to OutsourcingConsider colocation

You

can probably not

build and operate anything smaller than a 2MW data center for less than what you would pay for colocation. (For the same

level of redundancy

& service levels

)

Consider other outsourcing optionsSlide26

The Outsourcing Spectrum

Application

Middleware

Operating System

IT Physical Infrastructure

Virtual Infrastructure

Physical Hardware

Data Center Environment

BYODC

Colocation

Managed Hosting

SaaS

PaaS

IaaSSlide27

Cost of Colocation

Location

$/kW MRC

Boston

$300 - 400

Chicago

$225 - 425

Dallas

$200 - 500

NY/NJ

$275 - 510

No VA

$250 - 400

No CA

$275 - 450

So CA

$300 - 650Slide28

Funding IT in Your Data CenterIT Funding ModelsThe IT funding model is IT's primary mechanism for gaining approval for spending on

behalf

of the business, accounting for that spending, and communicating costs back

to

business stakeholders.

IT

funding models vary substantially across organizations,

but

they all seek to strike

three

critical balances:

Balancing

cost with service levels

Balancing maintenance with new investments

Balancing effective IT coordination with responsiveness to diverse business partner needsSlide29

Why Provide Financial TransparencyTransparency improves IT accountability and focuses the mission on what is important.Transparency supports maintaining proper balance.Transparency helps the business determine better buy versus build decisions, including brokering external services.Slide30

Deliver Cost Transparency via Showbacks or Chargebacks ?Slide31

How to Get StartedRecommendations you can implement now to improve or initiate your showback

or

chargeback

program.

Create a service catalog.

Identify

and align business services to technology capabilities currently

being

delivered to business units.

Gather service costing information.

Start

with gathering data and information from the finance department

about

the cost and expense of each    technology-based product and

service

.

Relate services and costs.

Create

a financial cost model of how technology services and costs are

related and allocated

to business units.

Make it plain.

Implement

greater IT service costing transparency that plainly details the

relationships to

budgets and/or P&L statements

.Slide32

David Sipes, Global Data Center Manager, SOCAL AFCOM Vice President of OperationsDavid.Sipes@Verizon.net