Data center consolidationrestructures your IT costs for continued growth


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Data center consolidationrestructures your IT costs for continued growth

  1. 1. IBM Global Technology Services November 2010Thought Leadership White PaperData center consolidationrestructures your IT costsfor continued growthNew discovery tools determine logical and physical movedependencies to help limit risk
  2. 2. 2 Data center consolidation restructures your IT costs for continued growthExecutive summary the services that IBM provides to plan and execute the moveCost reduction. It’s in our blood. It helps us get through the of applications, data and IT equipment from one data centertough years, and it helps us increase profits during the good to another data center, locally or across geographies.years. Reducing costs is always a smart strategy because amore operationally efficient data center can provide the foun- Consolidation can drive down bothdation for the future growth of the enterprise. strategic and tactical costs In our work with some of the largest business enterprises inMany CIOs and IT managers may be reexamining their data the world, IBM has found that between 10 percent andcenter portfolios and restructuring them for growth. Some are 15 percent operational savings are possible for each data cen-likely focused on contraction of the portfolio to reduce costs; ter consolidated, depending on how many sites we consolidateothers may view efficient expansion or new data centers as and certain other factors.1keys to success.So it comes as no surprise that many CIOs view consolidation Data center consolidation helps provideto a central technology organization as the future model for strategic and tactical cost center operations. Centralized infrastructures andprocesses enable shared services optimization that, in turn, The data center portfolios of many companies have grownprovides economies of scale to cut costs and increase the significantly through mergers, acquisitions and geographicreturn on IT investment. When considering how to derive expansion—external forces that will continue to affect the ITgreater ROI from IT, a significant majority of the 2,500 CIOs infrastructure. In this environment, data center consolidationwe surveyed—75 percent—anticipates having a strongly cen- is designed to provide strategic cost savings, reducing hightralized infrastructure in five years.1 infrastructure costs by relocating away from expensive data center leases or ineffective locations. Tactically, consolidationThis paper describes the challenges infrastructure managers can improve operational efficiencies, reduce the assets man-face when relocating data centers, the tools available from aged and improve resource utilization.IBM research to help lessen the business risk of the move, and
  3. 3. IBM Global Technology Services 3 But consolidation is more than just a cost-saving measure; it is Today Target a strategic initiative that allows IT managers to achieve opera- tional efficiencies while reducing the amount of time they Infrastructure upgrades spend managing the ongoing technology environment so they Give back to business, enable business expansion can focus more on applications development and other strate-Data center expenses or improve service quality Real estate costs gic projects. IT infrastructure Transformation costs This is an important shift in where time is spent because our Infrastructure upgrades Utility costs Real estate costs survey found that today’s CIOs spend an impressive 55 per- IT infrastructure Utility costs cent of their time on value-enhancing activities, such as creat- Labor costs Labor costs ing and generating buy in for innovative plans, implementing Network costs Network costs new technologies and business initiatives, and managing non- technology business issues.1Figure 1: Consolidation can yield both strategic and tactical cost savings. It’s a good time to move—but not byIBM’s own consolidation experience bears this out. In the10 years from 1997 to 2007, IBM consolidated the total num- yourself Competitive companies know that now is the time to restruc-ber of data centers used to manage our own business from ture their data center portfolios to support business growth.235 to 12 in all geographies, consolidated from 31 different Yet application availability must also be maintained in a cost-networks to one globally managed network, and reduced effective manner during the migration.the number of deployed applications from more than15,000 to just 4,700. The operational cost savings has totaled You also have to consider whether your IT staff has anyUS$1.5 billion over the past five years.1 significant experience in application and data migration and whether your staff is current on the latest planning and imple-Restructure to grow mentation techniques. Tasks such as provisioning new serversThe cost savings provided by data center consolidation are or managing tape drives are part of the day-to-day operationsattractive by themselves. This is especially true when you con- of a data center. Data center consolidations or relocations,sider IBM research that indicates that as much as 70 percent however, are major events that require specialized knowledgeof IT budgets is spent on maintaining existing environments.2 to make them go smoothly, provide desired benefits and mini- mize the impact to your business.
  4. 4. 4 Data center consolidation restructures your IT costs for continued growthIBM IT Facilities Consolidation and Relocation Services – Data center consolidation drives application growthdata center consolidation and relocation migrates applications, A major global bank needed to reduce time to market fordata, and IT equipment between data centers while helping to new applications, optimize its existing workloads acrossreduce risk and provide a seamless transition for end users by 36 data centers and reduce its overall costs while improv-facilitating your ability to: ing resiliency and security. With the help of IBM, the bank consolidated those data centers into one production and● Move dependent applications and equipment together one business continuity and recovery services center.● Meet critical application availability requirements by using IBM also helped establish an enterprise command center specialized data migration techniques to manage and control all of the bank’s data center● Reduce cost and improve operational efficiencies by helping operations. to centralize your IT environment With consolidation, the bank achieved US$180 million● Limit risk by leveraging your organization, experienced annual operational cost savings with a security-rich envi- IBM relocation practitioners and third parties ronment and 99.95 percent availability. Moreover, the com-● Allow IT operations to focus efforts and resources on more pany improved its time to market for new banking services critical operational areas in core banking, commercial lending and Internet banking. Consolidation meant that the bank’s IT managers couldThis service provides the planning and execution of moves of now focus their staff and resources on developing newapplications; data and IT equipment, such as servers and stor- applications to drive revenue growth. By restructuring itsage arrays; and the data center infrastructure, such as racks, data center portfolio, the bank is now well positioned and among one of the 20 global banks based on marketpower systems and cooling systems. These moves can help you capitalization.move within a data center, from one data center to anotherdata center or across geographies.
  5. 5. IBM Global Technology Services 5Help ensure a seamless, low-riskmigration for end users Assessment discovery Transition plan ImplementationIf you’ve made the decision to migrate a data center, you real- Document steps for a Determine how to execute Rehearse and implementize that a move is more complex than simply physically relo- flawless execution to reduce risk the move planscating a few servers from one location to the next. You have to • Identify critical application availability requirements • Select migration approach optimizing for risk, cost and • Remediate unsupported environments for the move • Document inventory of data, schedule to meet availability • Rehearse move day and fallthink about the risks to the availability of data and applications applications and IT equipment • Identify physical and logical objectives • Develop risk mitigation strategies back plans • Migrate data on-line almost dependencies and plans instantaneously to meetduring the move. Depending on the industry, the revenue cost • Determine migration approaches to meet availability requirements • Develop plans to fix unsupported environments application availability requirements • Implement a move day • Assess skill and resource • Develop detailed migration and command centerof a single application outage could run from the hundreds of requirements fall back plans • Execute migration plans • Document Lessons Learnedthousands of dollars to millions of dollars—per hour. You haveto be confident that your migration strategy can anticipate andavoid these crippling unplanned outages. Figure 2: A three-phased migration methodology helps ensure that details are covered.Consolidation and relocation help drive Assessment discoverydown cost—but end users don’t want to This phase is intended to document steps for a successful exe-know they have been moved. cution to identify critical application availability requirements and inventory the data, applications and IT equipment.And your customers—internal or external—have decreasing Physical and logical dependencies are determined to maketolerance for downtime in accessing their essential applica- sure that applications and their equipment come down andtions, even for planned events such as migrations. Acceptable move together.application outage windows—the amount of time and fre-quency an application may be unavailable—are getting shorter Affinity groups that are applications, data and equipment withand shorter. Long outages to migrate data center equipment similar characteristics and business requirements are identi-are simply not an option. fied. Multiple affinity groups are then moved together, reduc- ing project cost, time and business impact.A three-phase methodology for successfulmigrations With the application dependencies revealed, the IBM teamIBM has developed a three-phase approach to migrating appli- will develop possible migration approaches that satisfy budgetcations and equipment that helps ensure that all elements of requirements and time constraints outlined by the client. Thethe project are managed successfully. IBM team will also develop a top-level expense estimate as well as skill and resource requirements.
  6. 6. 6 Data center consolidation restructures your IT costs for continued growthThe output of the assessment discovery phase is a project IBM provides project management teams with the skills andreview and recommended decision to progress with the resources necessary to meet your project objectives while atmigration. the same time managing expenditures to initial financial estimates.Transition planDuring the transition planning phase, IBM determines the After the implementation is complete, a post-project reviewbest path to execute migration with minimal risk. IBM makes documents the lessons learned to help plan future data centerrecommendations on migration approaches to select a final projects and support daily operations.approach to reduce risk and optimize cost and the projectschedule. Safely migrate to a new data center in only four monthsEnsuring that applications move successfully within predefined A waste disposal company that serves more thanoutage windows is more complex than you might expect. 600,000 residential and 60,000 commercial customers inIBM will build an experienced team with the right platform more than 50 communities needed to implement a newarchitecture and relocation project management skills to data center and then safely migrate IT equipment quicklyreduce business and technical risk. and safely. IBM Global Technology Services helped the company build an energy-efficient, scalable and resilientAfter you decide on the approach, IBM finalizes detailed data center and relocated its equipment from the oldmigration plans and updates expense estimates, if necessary. location in only four months. As part of the project,The output of the transition plan is a detailed planning, IBM helped define requirements, scout locations, designbudget and timeline document that is ready for and implement the new data center, and then safely migrate data and applications without any unplannedimplementation. service interruptions.Implementation At completion, the company had a future-ready data cen-In the implementation phase, IBM rehearses and then ter scoped, designed and delivered by IBM. It gives theimplements the move plans. This can take anywhere from a client improved availability through enhanced redundancy. The expanded data center capacity supports a doublingfew weeks to several months, depending on the nature of the of the client’s business. And it reduces operating costs upproject. Before the move, we develop plans to remediate to 20 percent through improved efficiency. The clientunsupported environments and rehearse move and fallback reported that “after the move, a number of users cameplans in order to identify and resolve potential issues. We back and said this project seemed like it was flawless andestablish a move day command center to address unforeseen went just like we told the users it would go.”issues. All are key elements of a comprehensive plan.