RampRate_Green_Data Centers_v1 1

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RampRate_Green_Data Centers_v1 1

  1. 1. Data Center Optimization – A Green Path to Efficiency Achieving Measurable Environmental Impact While Managing Data Center Costs Tony Greenberg, CEO Tuesday, February 26, 2008 Confidential © 2007 RampRate™ Slide 1
  2. 2. Agenda 1. Who Is RampRate 2. RampRate’s Commitment to Green Data Centers 3. 4 Steps Currently Being Implemented With Peers 4. Case Studies / Success Metrics 5. 4 Additional Activities Being Developed / Pursued 6. Potential Ways of Working Together 7. Q&A Confidential © 2007 RampRate™ Slide 2
  3. 3. Who Is RampRate RampRate is a trusted advisor to Business Leaders, CIOs, CTOs, and CFOs to evaluate, procure, benchmark, and manage outsourced IT services RampRate also provides strategic business planning analysis and research for Fortune 2000 companies on digital media, industry and technology trends, and other critical areas of IT Confidential © 2007 RampRate™ Slide 3
  4. 4. Clients Working With RampRate Confidential © 2007 RampRate™ Slide 4
  5. 5. RampRate’s Green Data Center Commitment Made as part of Clinton Global Initiative and The Green Grid Reduce Client Investment in Non-Renewable Energy by $10M in ‘07 At current electrical rates, a reduction of ~100 million kilowatt hours Translates into: Cost per 1 kWh - Industrial France € 0.0541 152,000,000 pounds of CO2 emissions Netherlands € 0.0920 800,000 pounds of SO2 Germany € 0.0946 E area (12 countries) uro € 0.0839 490,000 pounds of Nitrogen Oxide E (27 countries) U € 0.0822 3 Levels of Client Commitment to United Kingdom € 0.0950 Data Center Emissions Reduction € 0.0000 € 0.0500 € 0.1000 Efficiency Improvement – green initiatives align with cost reduction Tiebreaker – green data centers are given a preference other factors being equal Sacrifice – business forgoes benefit or incurs cost to gain environment impact RampRate’s Focus: Efficiency Improvements and Tiebreakers France: not just Vast majority of data center greening can be green power, but achieved with neutral or positive impact on the bottom line cheap power Confidential © 2007 RampRate™ Slide 5
  6. 6. 4 Current Paths Being Implemented with Peers IT hardware efficiency Which servers are used? Are they the right fit for the business task? Consolidation / upgrades of servers to blades, dual core, DC-powered systems Virtualization to reduce power-intensive resource utilization such as CPU and I/O Data center infrastructure efficiency Is the UPS and HVAC equipment sized right for current / upcoming needs? Is Tier 4 (2N+2) redundancy really needed in all the data centers? Are business users encouraged to monitor and manage power consumption? Geographic efficiency Is the data center located in a geography with low HVAC costs and renewable power Data center vendor tiebreakers Is the vendor on an environmentally friendly grid? Does the vendor use geothermal heat exchange or similar for cooling? Does the vendor use renewable energy for backup power? Confidential © 2007 RampRate™ Slide 6
  7. 7. Case Studies / Inefficiencies Remedied to Date Fortune 100 global media company Benchmark revealed misaligned incentives for internal customers – power was “free” Designed new pricing structure to weight power consumption appropriately Major financial services firm Typical range of RampRate- Challenged universal Tier 4 mandate sourced co-lo Separation of mission-critical from other Customer position – efficient but hardware to improve efficiency by 10%+ underutilized Another financial services leader Found 0%-20% CPU utilization in distributed computing grid benchmark I/O gating factors to be examined to develop remediation plan Source: Rasmussen, Neil. “Electrical Efficiency Modeling of Data Centers .” Buying guidance Directed initiatives towards Pacific Northwest (65%+ is hydro) and France (78% nuclear) Identified vendors that were best in class in managing power use Helped source co-lo using DC power and closely coupled cooling for high-density blades Confidential © 2007 RampRate™ Slide 7
  8. 8. Partnership Strategy for Metrics Application of Green Grid’s PUE and DCE ratings Benchmarking against peers by data center tier, configuration, use scenario Drill-down and remediation “Processor to riverbed” model Early stage joint project with top high-tech firm Detailed drill-down into environmental impact of each IT decision Findings to be validated with broad peer group Research for political action groups Should governments provide incentives / tax breaks for green IT decisions? If so, how? RampRate’s buying ecosystem Green fit” rating for SPY Index Enforcing pricing models that fight over-provisioning of power as a profit driver Continued refinement of Clinton Global Initiative commitments Confidential © 2007 RampRate™ Slide 8
  9. 9. Further Initiatives On Tap Optimization of physical layout of facility Going beyond the hot-aisle / cold-aisle to model and optimize airflow Topology optimization: Commitment to closely coupled cooling projects Double conversion vs. Delta conversion Data center infrastructure fit UPS: Technology, topology, modularity DC power designs for blades, storage, etc. Power economization modes Server-level optimization Server consolidation & virtualization Power-down sleep modes vs. grid approach Publicity for vendors and Source: Sawyer, Richard “Making Large UPS Systems More Efficient.” users of green data centers White papers, case studies, etc. Creation of lists & indices enumerating top leaders Confidential © 2007 RampRate™ Slide 9
  10. 10. Working Together with RampRate Data center efficiency / environmental impact audit How does DC Firm compare with its peers and dedicated ISP facilities What are potential paths to improve from within? When is an outsourced solution better than self-owned facilities? What are the business decisions with greatest environmental impact Vetting of existing and prospective 3rd-party hosting relationships Are environmentally friendly vendors utilized? Are the locations used optimal for renewable energy / low HVAC impact? How to build a balanced scorecard including both green factors and business need? If external co-location or disaster recovery is planned, how to buy from the right environmentally conscious vendor at the market rate while hitting deadlines Ecosystem research There is an ecosystem of green-friendly corporations, entities, initiatives Who would make the best partners, preferred vendors, good investments? Confidential © 2007 RampRate™ Slide 10
  11. 11. Contact Information Tony Greenberg Michael Hoch Chief Executive Officer Chief Strategy Officer tgreenberg@ramprate.com mhoch@ramprate.com (310) 985-8669 (917) 453-8464 Alex Veytsel Principal Analyst aveytsel@ramprate.com (617) 417-2647 Confidential © 2007 RampRate™ Slide 11
  12. 12. More on RampRate Confidential © 2007 RampRate™ Slide 12
  13. 13. Better Decisions Enabled by the SPY Index Service Provider Intelligence Index (SPY Index) improves speed, clarity , and quality of decisions. 1. RampRate’s Historical Data • Over 400 multi-quote transactions in 4 years • Thousand of RFP responses distilled • Ongoing client inputs on actual performance 2. Analyst ‘Research-View’ • Industry trends / best practices vendor ratings • Inputs from Gartner, Telegeography, Aberdeen, and others 3. Vendor Capabilities • Services data, list prices and actual quotes • Pre-loaded database of over 300 vendors 4. Customer Experience • Primary research on customer satisfaction • Ongoing end-user interview program 5. Cultural Compatibility • Cultural fit matching of clients and vendors • Global compatibility and success ratios Confidential © 2007 RampRate™ Slide 13
  14. 14. RampRate Services Data driven business planning Performance benchmark — top-down audit or bottom-up validation of current budgets / contracts Customizable planning tools – dynamic analysis models and written reports covering: Financial planning – revenue, cost, market size, market share, risk quantification Growth planning – ecosystem studies of customers, partners, competitors, prospective acquisitions Product / service planning – customer satisfaction, feature / function requests Concise market intelligence — brief market summaries and consulting sessions for investors Accelerated IT services procurement Full ecosystem — cost / risk reduction in record time, with minimal internal time spent Deal engine — streamline the procurement process and leave clear audit trail for management SPY Index review — identify hard-to-find targets and improve due diligence in key service areas Continuous deal optimization Pre-signing optimization — build a contract for future flexibility and risk mitigation Exception-based optimization — use RampRate’s leverage in other transactions and ability to escalate issues to ensure fair dealing on both sides Ongoing optimization — pre-agreed arrangements to reset terms based on RampRate benchmarks at regular intervals and continuously monitor service performance Ad-hoc consulting SWAT team for emergencies — neutral intermediary in disputes; staff augmentation in shortages Topic expertise – vertical (rich media / digital content) and technology (co-lo / hosting, CDN, etc.) Confidential © 2007 RampRate™ Slide 14
  15. 15. Executives & Advisors Management Team Advisory Board Tony Greenberg, Chairman / CEO Curt Hessler SVP Marketing Exodus, VP Marketing Raindance, SVP Asst Secretary US Treasury; Vice Chair Unisys; Marketing/Founder Digital Ent. Network (“DEN”) Chairman i-Net and Quarterdeck; EVP Times-Mirror; CEO 101 Communications; USC Antitrust Professor Michael Hoch, Chief Strategy Officer/VP Operations Peter Hirshberg Research Director Aberdeen; Program Director Harvard Chairman Technorati; President/CEO Gloss.com; Chairman Interpacket Networks; Founder/CEO Elemental Software; Head Enterprise Marketing Apple; Mike Friedlander, VP Biz Dev & General Counsel Board Member ICTV, Technorati, and Informative VP Business Development Alinean; COO & Founder Richard Lappenbusch MeetingUp; Corporate Litigation and M&A Director Strategy Microsoft; Managing Director GTE; Senior Producer MSNBC Barry Patmore Accenture Managing Partner (35 years); Partner Brentwood Venture Capital; Board Member Children’s Hospital, QAD, and LetsTalk Kenneth Venner CIO Broadcom; CIO Rockwell Electronic; Senior IT Director Lucent / AT&T Bell Labs Confidential © 2007 RampRate™ Slide 15
  16. 16. IT Infrastructure Planning Research $355,653 $790,649 100% $791,667 End-user primary research studies 80% $2,166,667 $6,754,222 Market ecosystems and dynamics 60% $1,800,000 40% $97,121,080 IT services operational data for 20% $ business modeling 0% $865,657 $ 10 $ 13 $ 1, $ 11 $ 12 $ 13 $ 14 $ 16 $ 23 $ 31 $ 48 $ 75 $ 1, $ 1, $ 2, $ 4, $ 5, $ 8, Objective viability analysis 72 1 18 5 99 7 18 4 82 0 78 9 19 1 ,6 7 ,3 1 8 ,7 2 ,9 0 ,7 5 ,1 8 ,8 6 ,9 3 ,8 1 ,5 6 ,4 6, 5 5, 7 ,8 8 36 50 53 21 58 ,5 2 , ,4 4 ,6 2 31 46 61 86 ,2 8 ,2 0 0 75 6 7 8 6 3 9 9 4 6 4 Royalties Payment Fees Content Delivery Encoding Audience Management Portal development & maintenance CMS / DAM DRM, Storage & Servers Content Service Financial Plan 30,000,000 Number of Unique Viewers Revenue 25,000,000 $40 Costs $30 20,000,000 $20 15,000,000 $10 $0 10,000,000 ($10) 5,000,000 ($20) 1 1 1 1 2 2 2 2 3 3 3 3 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 0 1 2 3 4 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Months from Launch White Label Portal Co-Marketing and VC Branded Portal End-to-End Confidential © 2007 RampRate™ Slide 16
  17. 17. Cultural Compatibility Assessment Figure 5 - Client Vendor Weighted Compatibility Analysis by Scale 2.000 1.500 1.000 0.500 0.000 Strategic Project Organizational Power and Employee Cultural Agility Focus Management Structure Values Relationships -0.500 -1.000 -1.500 -2.000 Vendor 1 Vendor 2 Vendor 3 Vendor 4 Vendor 5 Client Target Confidential © 2007 RampRate™ Slide 17
  18. 18. Case Study More than 30 projects worldwide in the first 12 months of relationship Global sourcing and contract optimization: hosting, bandwidth, CDN, hardware RampRate ensured multi-vendor sourcing to protect against single point of failure, give pricing leverage, and an ability to counteract anticompetitive action (e.g. packet prioritization) A total savings of more than $11.5M in the first year of services 70% of projects resulted in cost reduction over previous baseline 90%+ of financial impact from mid-term renegotiation - contracts with 6-18 months remaining Average cost reduction of 20% in hosting; 29% in CDN Costs on select services reduced by as much as 74% Extremely aggressive timelines; dedication to user experience Deployment timelines 50%-70% shorter than typical RampRate client RampRate helped optimize for latency, uptime, support of high-density computing Other success metrics SLA terms increased from 5.8% of best practices to 60.7% with incumbent Service credits for exceeding environmental constraints went from 0% to 25% of monthly bill 200+ pages of detailed documentation for auditability Carrier-owned data centers opened up to 3rd party bandwidth Confidential © 2007 RampRate™ Slide 18
  19. 19. Case Study Using RampRate since 2001 Six distinct areas of procurement – hosting, bandwidth, CDN, hardware, voice, referral service 7-figure savings, including repeat successes cutting CDN costs Investments in innovative technologies made with faster time-to-market and lower risk Helped refine contracts and resolve disputes in vendor relationships 3 Rounds of CDN procurement July 2001 – original service procured by RampRate September 2003 – new CDN vendor procured by RampRate – savings of 37% November 2005 – RampRate cuts CDN costs by 51.7% from the best offer on the table to allow iFilm to keep its preferred provider after the merger Other success metrics 48% reduction in cost for voice / data traffic Cut co-location costs by 25% while relocating closer to company HQ Vendor assent to 83% of market best practices for CDN contract terms (94% in co-lo) Negotiated 6-figure service credit for unforeseen problems Confidential © 2007 RampRate™ Slide 19
  20. 20. Case Study 10 Projects in 18 months Impact across all divisions, including corporate, television network / stations, radio, SportsLine High visibility, time-critical initiatives such as March Madness, split from Viacom Negotiated co-location, bandwidth, CDN, software licensing agreements A total savings of more than $3.9M Average cost reduction: 27.8% Highlights included 50% reduction on CDN contract in one day of negotiations Significantly reduced relationship risks Each co-location contract had 75%+ of required terms accepted before negotiations started Helped resolve several disputes with minimal financial impact and no business interruption Other accomplishments Developed budget sheets, audit trails, detailed negotiation logs for internal reviews Created bandwidth utilization tool for multi-CDN strategy in major streaming events Identified 7-figure savings in unapplied vendor credits Confidential © 2007 RampRate™ Slide 20
  21. 21. Major Banking & Insurance Firm Case Study Client warned by SEC for improper data management Engaged major systems integrator to drive disaster recovery strategy Hard deadline built in with multi-million dollar sanctions pending No exact matches for geography, capacity, and power density found after 3 month search Imperfect solutions priced above budget at $120K-$180K / month Accelerated sourcing delivers in 3 weeks Requirements are established from the ground up in 4 days Based on RampRate's SPY Index, 22 vendors were identified that could service the client 5 days from kick-off, a quote request went out and 3 days after responses are received Prices received ranged from $45K to $110K / month Several qualified options on the table, including lowest cost alternatives Key success metrics Client went from no qualified option to 11 options due to data derived from the SPY Index Client saved 55% in monthly recurring costs over best available previous option By meeting its dates, client avoided over $11 million in SEC penalties. Confidential © 2007 RampRate™ Slide 21

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