IBM Global Technology Services Cross-industryDeﬁning a blueprint for a smarterdata center for ﬂexibility andcost-effectivenessAnalytics-based services provide insight for action
2 Deﬁning a blueprint for a smarter data center for ﬂexibility and cost-effectivenessIntroduction needs over the expected 10- to 20-year life of a data center.Change is accelerating for data center and IT managers. We Building for ﬂexibility is one of the only practical ways to be ableproject that US$1.5 trillion is being spent every year on IT— to address those unpredictable demands.hardware, software and IT services. Furthermore, 70 percent to80 percent of every IT dollar may still be spent on just Cost-effectiveness—A data center infrastructure needs to adapt tomanaging the current data center environment. But IBM global be more cost-effective, for both capital and operating costs. Bothstudies of CEOs and CIOs show clearly that executive manage- IT and facilities assets—people, processes and equipment—needment teams expect IT to make greater and more contributions to be used more effectively, while new capacity needs to beto the business. deferred until it is required.IT managers are caught between addressing today’s challenges Active monitoring and management—More software managementand ﬁnding ways to leverage IT infrastructure to transform tools need to be employed to infuse automation and intelligencespending by putting more dollars to work to solve new prob- into the day-to-day operations of the data center to activelylems, including the development of new products, gaining monitor and manage the environment. This helps you focus oninsights on clients or moving into new market segments. providing the availability, capacity planning and energy efficiencyThere are proven ways to design and manage data center infra- needed to address business growth.structures so they can provide greater ﬂexibility in respondingto change and do so more cost-effectively to transform spending. Four simple ways to help IT managersThese new approaches leverage analytics-based services to make their data centers smarterprovide insight into your infrastructure to help your teams The goals of more ﬂexibility, greater cost-effectiveness, and aunleash greater business value. They help you implement a better use of active monitoring and management software in thesmarter data center. data center are within reach. The actions needed to achieve them are, in fact, quite simple to implement, and completingHow we deﬁne smarter data centers several projects can combine to provide better business outcomesThe hallmarks of a smarter data center include ﬂexibility, cost- and immediate payback. The four ways are:effectiveness, and the capability to actively monitor and manageoperations for continual improvement. Working together, they ● Extending the life of the existing data center infrastructurehelp transform the impact of data center investments and unlock ● Rationalizing the data center infrastructure across thenew value for the enterprise. company ● Implementing ﬂexible design to be responsive to changeFlexibility—Data centers need to be able to respond to future ● Providing integrated management of IT and data centerunknowns in business requirements, technology and computing operationsmodels. It is hard for any company to accurately forecast those
IBM Global Technology Services 3 Extend the life of Rationalize the data Flexible design to be the existing data center center infrastructure responsive to change infrastructure across the company Pay as you grow by deferring Double IT capacity or reduce Improve operational efficiencies 40–50 percent of capital and operational expenses while reducing operational operational costs* by 50 percent* expenses by 50 percent* Integrated management of IT and data center operations Lower operational costs up to 20 percent* *Based on IBM or IBM client experience.Figure 1: These four simple techniques can help you create a smarter data center.
4 Deﬁning a blueprint for a smarter data center for ﬂexibility and cost-effectivenessAnalytics transform insights into action to Analytics-based services apply relevant facts to optimize currentdrive more value IT investments but also provide insights needed to make the best use of limited resources. This broad array of new analytical capa-A smarter data center requires a better way of analyzing the bilities applied to data centers takes data generated from your ITchallenges involved in transforming IT infrastructure and spend- operations and turns it into a set of facts to make smarter busi-ing. Using sophisticated analytics and tools can help you better ness decisions in four speciﬁc ways:understand your infrastructure in order to construct speciﬁc,fact-based ﬁnancial and business models for IT operations toprovide the foundation for making improved decisions and Assess with speed and rigor—Discovery tools help you rapidly gaintaking the next big step to unlock your infrastructure to provide insights to prioritize your actions and determine what to focusincreased business value. Traditionally, companies have had to on next.make decisions about their IT operations without the beneﬁt oftools that could help interpret data and model outcomes. Now, Model outcomes with precision—After you determine the criticalplanning future investments for data center capacity or adopting areas that you need to focus on, you need to accurately evaluateemerging technologies such as cloud computing can be more alternatives to predict outcomes and reduce risk.predictable, resulting in savings of up to 40 percent of technol-ogy infrastructure expenses through balancing IT capacity withbusiness growth, in our experience. Assess with Model Automate Manage with speed and outcomes with certainty rigor with intelligence precision Use discovery Evaluate Execute faster Leverage tools to gain alternatives to and with less operational insights to predict dependency expertise and prioritize your outcomes and on critical staff best practices actions. reduce risk. by infusing to manage intelligence with greater into tools. conﬁdence.Figure 2: Analytics help turn insight into action to transform spending.
IBM Global Technology Services 5Automate with intelligence—Analytics can help you execute fasterand with less dependency on critical staff by infusing intelligence Case study: expand capacity with virtualization and right-into automation, helping you free up your skilled resources to do size the facilitythose things that are more valuable for the organization. We extended the life of the IBM strategic outsourcing data center in Lexington, Kentucky, where we host approximatelyManage with certainty—Analytics can also help you manage your 20 clients. First, our analysis found that 60 percent of theinfrastructure with greater conﬁdence by leveraging operational 1,500 UNIX® servers installed were at 5 percent utilization orexpertise and best practices. less. With 20 times more servers than we needed, we began a virtualization program. We have improved our 3 percent toBy helping you assess, model, automate and manage, we can 5 percent server utilization rate to 30 percent to 50 percent and were able to virtualize 70 percent of the base workloads.help you ﬁnd and unlock new areas of business value from your After completing the virtualization, we rightsized the dataexisting and planned infrastructure investments. IBM analytical center facilities to optimize the cooling environment andservices—combined with the insights and experience of your reduce energy consumption by 10 percent. Using energyIT staff—have helped many of our clients create smarter data management software, we achieved an additional 15 percentcenters. to 20 percent energy savings by determining the actual power used in the data center. The result was that we spentExtend the life of existing data center structures a few million dollars to improve asset utilization and deferredFirst, recognize that you have a series of data center assets US$50 million of capital costs.today—servers, storage, networks and data centers—that arerunning your current IT operations. And these assets mayalready be paid for, so anything you can do to extend their lifeenables you to defer the need to make signiﬁcant capital expen- The IBM Lexington case study initially focused on server virtu-ditures on new IT technology or additional data center capacity. alization. We are also working on storage optimization to dealWhen we look at industry trends, we can see that a huge num- with the projected 650 percent explosion in storage growth withber of servers—perhaps as many as 80 million—will be needed utilization rates remaining low at 20 percent to 30 percent.in the next few years. And yet distributed server utilizationappears to be low—somewhere around 15 percent—while virtu- One of the best ways to start improving your storage perform-alization maturity is trending upward to 20 or 30 percent. So ance is with a fact-based analysis. We helped a large Norththere’s obviously a lot of opportunity to improve asset utilization. American telecommunications client analyze its 1 petabyte ofIn our experience, extending the life of a data center can double storage and identiﬁed how to save the company US$16 millionIT capacity or reduce operational expenses by 50 percent.
6 Deﬁning a blueprint for a smarter data center for ﬂexibility and cost-effectivenessover three years. Our analysis included a comprehensive set ofrecommendations to rationalize and reclaim, virtualize and tier, Analytics: automate with intelligence to handle the dataand deduplicate and archive data as well as on how to govern explosionand improve the client’s storage management process. A 6.5-times storage growth every year can’t be addressed by relying only on storage architects. You need to automateWhen consolidating your infrastructure, don’t overlook middle- with intelligence to allow processes, not people, to provisionware optimization. One of our global automobile manufacturing storage. So we helped the architects of a Canadian telecom-clients consolidated its middleware infrastructure and gained sig- munications company deﬁne a set of policies one timeniﬁcant cost savings of 71 percent. Simplifying and standardizing so they can be used every time a user requests storage.its environment on just one application—its customer relation- We deﬁned 15 to 20 standard data types and deﬁned theship management system—reduced its cost from US$28 million key performance indicators that were mapped to their spe-a year to US$8 million a year. Because the environment is much ciﬁc storage infrastructure. The client was able to reducemore standardized now, the company signiﬁcantly increased 80 percent of the senior architect’s time using the intelligentboth availability and its responsiveness to new customer storage services catalog service from IBM. In addition, the client saved approximately US$1.5 million over three years indemands. just hardware costs by increasing its storage utilization to 50 percent and reducing the amount of Tier 1 storage requested.Analytics: assess with speed to virtualize more complexworkloadsVirtualization remains one of the top priorities for CIOs Rationalize the data center infrastructure across thebecause it is a well-known way to improve the cost- companyeffectiveness of resources. Yet virtualization maturity trails After improving one data center, looking across the data centeroff after the easy workloads—the ﬁle and print workloads, portfolio can yield signiﬁcant operational savings and efficien-the application development workloads, and so on— cies. Our experience is that more than 50 percent of clients havehave been virtualized. To drive more virtualization, we’vedeveloped analytics-based capabilities in our server more than three data centers, including backup sites, remoteoptimization services to help with virtualization for more locations, wiring closets and server rooms. Data center portfolioscomplex Microsoft® Windows® and Intel® workloads. have grown signiﬁcantly through mergers, acquisitions andUsing industry-standard tools, we determine which of geographic expansion. Data center consolidation is designedthe 20,000 variables in server environments matter. Our to provide strategic cost savings, reducing high infrastructureexperience doing thousands of engagements provides costs by relocating away from expensive data center leases orinsights on which 10 variables allow us to sort workloads ineffective locations. Tactically, consolidation can improve opera-into six scenarios to virtualize them. We can tackle more tional efficiencies, reduce the assets managed and improvecomplex workloads and provide the expected 6–18 month resource utilization. There is a signiﬁcant opportunity tovirtualization return on investment (ROI) while implementing improve operational efficiencies while reducing operationalthem with 50 percent reduced transformation costs. expenses—perhaps by as much as 50 percent.
IBM Global Technology Services 7IBM’s own data center consolidation experience bears this out.In the 10 years from 1997 to 2007, IBM consolidated the total Analytics: model outcomes to rationalize data centers tonumber of data centers used to manage our own business from transform operational costs235 to 12 in all geographies. We consolidated from 31 different Working with IBM Research, we’ve infused mathematicalnetworks to one globally managed network and reduced the modeling into our data center strategy services and thenumber of deployed applications from more than 15,000 to tools used to help bring the future into the present so youjust 4,700. The operational cost savings has totaled can take action today. The analytics are designed to revealUS$1,500,000,000 over the past ﬁve years. your existing data center state in both ﬁnancial and opera- tional terms and to model alternative scenarios based onA data center strategy provides objective analysis to help you your business data.rationalize the complexities in your data center portfolio to A global hospitality and services organization needed toaddress increasing application availability and capacity require- reduce operational expenses, improve security and redun-ments and to improve operational efficiency. dancy, and consolidate its environments based on merger activity. Working with our data center strategy analytic tools,After you’ve made the decision to consolidate a data center, the company was able to build a consolidation plan toyou realize that a move is more complex than simply physically reduce 13 data centers to two. The analytics helped themrelocating a few servers from one location to the next. You have examine a wide range of implementation options, performedto think about the risks to the availability of data and applica- objective analysis and created an implementation path totions during the move. Depending on the industry, the revenue start the transformation process to accommodate future business growth.cost of a single application outage could run from hundreds ofthousands of dollars to millions of dollars—per hour. You haveto be conﬁdent that your migration strategy can anticipate andavoid these crippling unplanned outages.
8 Deﬁning a blueprint for a smarter data center for ﬂexibility and cost-effectiveness cost that you can achieve) over the 10- or 20-year life cycle ofAnalytics: assess with speed to seamlessly relocate users the data center. Moving from large, monolithic designs to modu- lar data center designs can deliver signiﬁcant beneﬁts to fuelOur experience has shown that manual inventories made by business growth, adapt to change, provide ﬂexibility, matchclients are generally 70 to 90 percent accurate, but planning short-term capacity requirements with long-term growtha major relocation requires a more accurate inventory. and do so in a cost-effective manner—and more quickly.Working with IBM Research, we have applied mathematicsto create analytics for a logical dependency mapping toolthat maps application and server dependencies to plan for Modular data center design is not about containerization; it’srelocations. This can help us identify up to 100 percent of about using smaller increments of standardized components tothe server, storage and application assets that need to enable you to match your business requirements to your ITbe moved. requirements and add data center capacity when needed. A mod-A large ﬁnancial services institution was planning a ular approach can allow you to pay as you grow and buy onlymove and needed to better understand its environment— what you need, when you need it, to defer capital and opera-especially the 700 Windows and Intel technology–based tional cost by perhaps 40 percent to 50 percent.servers and more than 400 critical applications deployed onall the platforms. The organization was able to reduce thetime to understand the dependencies between applications Case studies: ﬂexible design helps scale critical servicesand servers by 50 percent as compared to manual methodsusing the analytics for logical dependency mapping. We have worked with midsize and large enterprises toAnalytics also helped the company reduce risk and costs provide cost-effective and ﬂexible modular data centers—by identifying areas of the IT environment that needed to implementing more than 500 modular data centers forbe remediated before the move—such as unsupported envi- clients from Boston to Bangalore. A midsize governmentronments or operating systems. Through more insightful organization needed to support an increase in demand forunderstanding of the logical dependencies, planners were its services—many of which were available on the Internet.able to move equipment and applications without disruptions The scalable modular data center was able to double the ITas well as identify and ﬁx a key single point of failure in a capacity with virtually no increase in energy usage. Modularcritical application. designs work for large companies as well. We designed an enterprise modular data center for another client to reduce both costs and complexity while improving quality and speeding the deployment of services—using half the energyUse a ﬂexible design to be responsive to change required of a similar facility.As demand for IT services increases, so does the need to increasethe data center capacity to house the IT equipment. Ideally, youwould want to design a data center with the ﬂexibility that youwould need (and at the lowest capital and the lowest operating
IBM Global Technology Services 9 design life-cycle cost analytics to help clarify trade-offs betweenAnalytics: model outcomes with precision to select the capital and operating costs over the life of a data center facility.right option For example, by evaluating in a vendor-agnostic fashion approxi- mately 20 options for computer room air conditioners, weBecause data centers have to be viable for decades, one of found that capital costs can vary by a factor of ﬁve. When wethe best investments you can make before you build a datacenter is to invest in creating a statement of requirements. took the best of each group, the operational cost still varied byData center strategy services—including a physical thresh- 140 percent. This type of cost analysis can help you make more-old capacity analysis—help forecast capacity requirements informed decisions.many years into the future, allowing clients to know howlong their data centers will remain viable and when they Integrate management of IT and data center operationswill need to be upgraded. A new approach developed by Availability is at the heart of what any data center must provide,IBM Research uses patent-pending computational algo- with increasing application availability requirements and decreas-rithms and modeling to determine how to address changing ing tolerance for downtime. Application outage windows aredemands on data center capacity. getting shorter and shorter, so mitigating outage risks is criticalA major bank input its expected application growth, IT to your company. Yet application availability must also be main-strategy and current data center capabilities into the tool, tained in a cost-effective manner.which provided an objective analysis on data center capacitythresholds to predict energy and space capacity require- As IT departments continue to be asked to take on morements. It showed the need to plan to support IT over a functions with limited resources and expertise, businesses need10-year period, resulting in the need to support three to ﬁve to use managed and outsourced services to allow them to focustimes the IT power. This led to a ﬂexible design, including a on more business-critical and strategic functions. Businesses aredual zone strategy that is estimated to save the bank taking advantage of a variety of options to address their manage-US$1 million a year. ment needs, such as moderating the level of support from staff augmentation or “ﬂexible labor,” hosting and managing the infrastructure, and transferring personnel and assets to theCapital costs often get 100 percent of management’s focus, provider. Finally, integrating the management of your IT andbut they may only account for 15 percent of the total cost. facilities operations can lower your operational costs by up toPotentially 60 percent of capital costs and 75 percent of a 20 percent, in our experience.data center facility’s operating costs may result from the majorelectrical and mechanical equipment. Our experts use data center
10 Deﬁning a blueprint for a smarter data center for ﬂexibility and cost-effectivenessCase studies: integrate IT and data center management for Analytics: manage with certainty to reduce alerts andefficiency improve availabilityWe helped a government agency with operational support We’re ﬁnding that our midsize clients are seeing the averagefor three data center locations. Altogether, we provided cost of outages increasing to more than US$70,000 an hour.71 staff members to oversee the government agency’s IT This requires them to determine how they can get bettersystems, providing around-the-clock coverage through a sin- insight into ways to improve the management of their ITgle, uniﬁed workforce. We provide direct operations support infrastructure to address availability, capacity and energyfor the client’s mainframe, midrange systems, peripheral efficiency.equipment and print environment. To encourage a high level A food manufacturer had a rapidly growing IT environmentof operation and usability for the managed data center but was facing escalating costs, recurring downtimes andenvironments, we offer ﬁrst- and second-level operational lost productivity, requiring signiﬁcant technical talent to solvesupport to the client’s three data centers, resolving issues its operational problems. Using IBM Tivoli® Live – monitoringrelated to various factors including batch processing sched- services, we were able to drastically reduce the time to iso-ules, database administration, data transfers and script late and diagnose critical system problems. By applyingexecutions. automation with intelligence, we implemented policies thatIn another example, a French auto supplier needed to reduced 88 percent of the alerts presented to operators.improve its storage management. The supplier contracted This allowed the manufacturer’s IT staff to focus on prob-with IBM to manage the storage environment, resulting in lems affecting its business performance and resulted in aoperational cost savings of at least 20 percent through stor- 30 percent reduction in Severity 1 incidents and a 17 percentage optimization by using ﬂexible sharing options. improvement in application availability.
IBM Global Technology Services 11Get started with an individual project that Why IBM?can provide immediate payback Leading-edge but tested analytical methods provide theYou can undertake a number of individual projects right now to foundation to leverage your existing IT infrastructure and iden-create a smarter data center—and leverage analytics-based serv- tify how to transform IT spending to unlock business value asices to achieve greater value. In our experience, each of them can never before. Analytics-based services provide additional insightsprovide immediate payback, and their cumulative beneﬁts can be on your operations to turn them into actions. Taking a compre-even greater. hensive approach in implementing steps toward a smarter data center may be the best and fastest way to start receiving their● Server and storage consolidation and optimization—double your highest value. IT capacity or halve your operational costs, or go one step fur- ther and tackle the more complex workloads and automate IBM has proven capabilities in smarter data centers that help your storage provisioning to free up your critical architects our clients achieve their desired outcomes and deliver value. You● Middleware optimization—gain 20 percent to 30 percent savings can leverage the experience of a service provider that invests in in your middleware costs by including application rationaliza- developing innovative tools based on thousands of implementa- tion in your projects tions on a global basis to help your team gain insights and● Data center strategy—model your alternatives and determine beneﬁts faster. We can help you ﬂip that 70 percent you may your optimal portfolio to gain up to 50 percent improvement currently spend on maintaining your current environment to in operational costs and signiﬁcant operational efficiencies fund new IT capabilities and innovations. Further, you can● Data center consolidation—map application and server depend- leverage IBM Research innovations, including advanced mathe- encies to provide a seamless transition to your users matical modeling and patent-pending capabilities, to analyze● Data center design—leverage life-cycle cost analytics to identify your data center and take action to make it smarter, more how to defer capital and operating costs by 40 percent to ﬂexible and more cost-effective today. 50 percent● Integrated management—lower your operational costs by 20 percent