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Holistic Efficiency


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The Productization of the Data Center-- With the rapid evolution of the data center service provider segment, the concept of efficiency has expanded to embrace not only energy, but a multitude of elements including capital, operations, and the useful life of the facility as well. In this presentation, Chris Crosby, CEO of Compass Datacenters will demonstrate how the historical development of related industries dictates that productization is the required methodology to deliver these expanded efficiency requirements to an increasingly sophisticated customer base.

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Holistic Efficiency

  1. 1. Holistic Efficiency: The Productizationof the Data CenterChris Crosby, CEO, Compass Datacenters
  2. 2. About Us2• Compass Datacenters provides dedicated, standalone datacenters• Built using our TrulyModular™ Architecture• Patent pending design• Geographically independent• The building is the module• Simplify Capacity Planning• Growth in 1.2MW Increments• Control• Ownership or lease• Operations and security• Expansion
  3. 3. What Type of Data Center33
  4. 4. Data Center Landscape—TargetCustomers4End Users of Public Cloud,Private Cloud and Traditional ITPublic Cloud ApplicationsServers, OS, SANs,Virtualization, Web, DR,Network ManagementCross Connects, Racks,Networking, TRS/HelpdeskPower and Cooling, Security,Network Connectivity, FacilityManagement SystemsBuilding Shell, Utilities,Fiber PathwayPermits, Entitlements,IncentivesCloud ProvidersManaged Service ProvidersRetail Colocation ProvidersEnterprisesWholesale ProvidersReal Estate DeveloperLand
  5. 5. The Common Thread: Inefficiency5• Distorts Total Cost of Ownership (TCO)• Dominated by First Cost• On-Going Cost of OpEx
  6. 6. Capital6• Bigger isn’t better• $20-$100 million is spent on four walls and a roof• #1 killer of new projects is the shell to hold the 20 year plan• Capital should be allocated as needed• Freeing funds for other uses until needed• Not accounting, it’s common sense
  7. 7. Land7• Huge facilities aren’t land efficient• Eliminate the option value• Ability to use land for other purposes• Destroys the advantage of an appreciating asset
  8. 8. Energy Efficiency• This isn’t it8What’s 100 acres, more or less?
  9. 9. Materials9• Lack of standard designs drives materials waste• “Standard” usually just a starting point for customizationdiscussions• Reason Uptime checks every facility as part of its process• How much concrete and steel does it take to build a100,000 square foot facility?• Does anyone know?• What is known:• Production of 1 cubic yard of concrete generates 400 lbs of CO2• Ex: 6” slab on a 200K square foot building requires 3700 yards of concrete• Production generates 740 tons of CO2• Production of 1 ton of steel generates 1.9 tons of CO2• Ex: 440 tons of steel required for a 200K square foot building• Production generates 840 tons of CO2
  10. 10. Resource Inefficiency10• Water• Chemical treatment requirements• Added cost• Eco impact
  11. 11. Data Center Build Trend11• The Data Center Industry is Here• Can’t Drive Costs Any Lower or Quality Any Higher• The Required Next Step• Most Providers Can’t Make It
  12. 12. The Historical Foundation"Dr. W. Edwards Demingtaught that by adoptingappropriate principles ofmanagement, organizationscan increase quality andsimultaneously reduce costs(by reducing waste, rework,staff attrition and litigationwhile increasing customerloyalty). The key is topractice continualimprovement and think ofmanufacturing as asystem, not as bits andpieces.”12
  13. 13. The Key Principles• Deming had 14 key principles• These are the most applicable to productization• Create constancy of purpose toward improvement of product and service, withthe aim to become competitive, stay in business and to provide jobs.• Cease dependence on inspection to achieve quality. Eliminate the need formassive inspection by building quality into the product in the first place.• Improve constantly and forever the system of production and service, to improvequality and productivity, and thus constantly decrease costs.• Put everybody in the company to work to accomplish the transformation. Thetransformation is everybodys job.13
  14. 14. The Other Element: Standardization14• Design product for a specific market segment• Not the entire market• Ex: 737 vs. 747• Elements of true standard design• Standard Bill of Materials• Same for every job• The facility is built using “kits”• All quantities pre-determined• Reduced transportation requirements• Volume purchase agreements reduce cost• Reduced disposal requirements• Standard drawings and processes• More efficient scheduling reduces wasted manpower• Only deviations are due to local requirements• We don’t have to reinvent• Many examples (auto industry, aviation, consumer electronics)
  15. 15. Define It: The Data Center as a Product15Office:2,500 SFOr, WYW space(Whatever YOU Want)Storage/Staging RoomDedicated1,400 SFSecurityOPEX Savings1.2MW – 2NPre-FabricatedPatent PendingBuilding: 21,000 SFDatacenter: 10,000 SF500+ Racks20 kw/Rack with NO containmentInexpensiveexpansion2MW gens @ N+1
  17. 17. The Value of Standardization andIntegration: Beyond First Cost• Standard design and partners• Simplifies and standardizes operations to drive out on-going costs• Integration• Provides holistic view of performance without “gaps”• Enhances customer control and efficiency• Training• Spares• Documentation• Useful Life17
  18. 18. Supply Chain• Partner vs. Bid• A virtual team• Consistency• Replicability• Forecast vs. Quote• Eliminate the cost and delivery inefficiencies of “one-off”18
  19. 19. Why Schneider?• Breadth of product line• UPS• BMS/DCiM• Switchgear• Security• LV Gear• Personnel and expertise• TCO and supply chain• The Common Thread• Energy Efficiency19
  20. 20. Summary• Data center industry becoming less one-off and more application centric• Increasing requirement for lower costs and higher quality• Data centers are inherently inefficient• Capital• Land• Materials• Resources• Productization is the only way to achieve paradox of higher quality atlower price points• Requires combination of successful manufacturing principles and standardizedproduct• Most providers are not positioned to take this next step• Majority of customers will accept a “solid” standard in place of a mis-mash of features• Accord vs. Cutlass Supreme• Cannot transform an industry without partners• Each bringing components to the table for a better system solution20
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