Craft an End-to-End Data Center Consolidation Strategy to Maximize Benefits

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Data center consolidation has consistently ranked as one of the top-
of-mind projects for CIOs across the globe. Consolidation has been
popular due to its ability to provide a wide range of cost and
efficiency improvements for the data center.
While there is a whole host of benefits, these benefits are by no means
guaranteed. Successful data center consolidation is heavily reliant on
effective project planning. This includes gathering relevant business
requirements, inventorying equipment and applications, and
establishing effective stakeholder communications.
Organizations that forego planning will often experience additional
unforeseen costs and erode consolidation benefits. Maximize the
chances of consolidation success by allocating 12-18 months for
planning the data center consolidation.
David (Da) Xu,
Senior Consulting Analyst, Infrastructure
Info-Tech Research Group
Data center consolidation is like building Rome – it wasn’t done in a day!
ANALYST PERSPECTIVE

This Research is Designed For: This Research Will Help You:
This Research Will Assist: This Research Will Help You:
This Research Is Designed For: This Research Will Help You:
This Research Will Also Assist: This Research Will Help Them:
Our understanding of the problem
IT and infrastructure managers who are
responsible for executing a data center
consolidation project.
Organizations that are currently struggling with
high infrastructure costs and need to find ways
to meet a tighter IT budget.
IT managers trying to contain data center
sprawl.
Use a structured consolidation framework to
mitigate risks during consolidation and
maximize your chances of realizing
consolidation benefits.
Create a detailed TCO analysis that builds into
a strong business case for the consolidation
project.
Establish a process to decommission older
facilities and help manage sprawl.
IT managers who want to establish a
repeatable framework for future data center
consolidation projects.
Other business managers who will be
impacted by the consolidation.
Understand the importance of effective project
planning for the consolidation project.
Familiarize themselves with the current service
levels that IT is providing and future service
levels after the consolidation.

Resolution
Situation
Complication
Info-Tech Insight
Executive summary
• Data center operating costs continue to escalate as organizations
struggle with data center sprawl.
• The complexity of data center consolidation makes it difficult for
consolidation projects to get off the ground. At the same time,
organizations that do start consolidation often overlook the discovery
and planning phase of data center consolidation.
• Despite consolidation being an effective way of addressing sprawl, it is
often difficult to secure buy-in and funding from the business.
• Many consolidation projects suffer cost overruns due to unforeseen
requirements and hidden interdependencies which could have been
mitigated during the planning phase.
• While data center relocation projects can be expensive, in the long run, the benefits of reducing operating costs will often
off-set the initial capital expenditure. The key to recapture consolidation benefits is to establish an end-to-end consolidation
strategy which can identify and mitigate relevant risks before execution.
• Project management and planning is critical to the success of a data center consolidation project. Info-Tech recommends
12-18 months of planning to help mitigate risk. Organizations that expend more effort on a detailed consolidation strategy
for each individual piece of infrastructure will consistently be more successful in capturing consolidation benefits.
1. Effective planning which focuses on
gathering business requirements and
inventorying equipment/applications is
key to consolidation success.
2. Garner executive support for the data
center consolidation project by
presenting a well-rounded business
case complete with quantitative and
qualitative benefits.
3. Regardless of the size and magnitude
of the consolidation, a detailed
communications plan is required.

Capture the key benefits of data center consolidation
Cost savings: Consolidating
data centers has the potential
to reduce the following:
1. Operating costs
2. Facility costs
3. IT personnel costs
4. Hardware costs
Improved resilience: As part of consolidation, automation of
business-critical processes and systems becomes possible.
This can improve overall resilience by improving process
consistency and enforcement of regulations.
Increased control: By reducing the number of
devices that need to be monitored and
maintained, the IT team will have an opportunity
to standardize and update infrastructure for
greater efficiency.
Improved security:
Physically security will
naturally improve when
there are fewer sites and
assets to manage. Also,
reduced connections
between facilities will
make it easier to monitor
and control security
entry and exit points.
Data center consolidation continues to rank as one of the highest priorities for CIOs. Understand
the key benefits that justify the need for data center consolidation.

Situation Result Insight
• In 2009, the Broadcasting
Board of Governors (BBG) had
11 data centers.
• The infrastructure sprawl was
near unmanageable. In 2009,
the agency owned eight
storage systems from eight
different vendors.
• The agency started a three-
year plan to consolidate IT
infrastructure.
• The goal was to reduce the 11
data centers down to three.
• In 2011, BBG was able to
achieve its goal and is now
operating three data centers:
o One dedicated to video
processing.
o A second for redundancy.
o A third to host the virtualized
server environment and
storage hardware.
• The BBG was able to save
$650,000 by eliminating
maintenance contracts and
retiring aging IT equipment.
Data center consolidation can boost the bottom-line and also
improve efficiencies
CASE STUDY The Broadcasting Board of Governors
• The price-to-performance ratio
of IT infrastructure should
always be front of mind for any
IT shop. Consolidation will
often provide an opportunity
for organizations to save on
infrastructure costs and
reallocate that budget to more
innovative endeavors.
• Aside from just bottom-line
impact, consolidation can also
improve security due to the
reduced number of updates
and patching required for the
system.
Source: “Federal Data Center Consolidation Initiative Offers Agencies Hidden Benefits”, FedTech Magazine

Understand the key risks of data center consolidation
Application compatibility:
Legacy applications may not be
able to operate on the new
infrastructure. This will also
lead to unplanned downtime
and result in unnecessary costs
for the organization.
Personnel management: Whether it is laying off staff, hiring
new staff, or transitioning current staff to new roles, personnel
management is critical to the success of consolidation.
Transition risk: Uncoordinated service outages
during the consolidation may disrupt mission-
critical applications for end users. Mitigate this
through effective planning.
Performance demand: The
consolidated data center network
infrastructure must be able to
support the increased application
workloads and ensure that
applications can meet SLAs. This
is critical for day-to-day service
continuity and disaster recovery.
Consolidating data centers is not without risk. Countless examples of organizations across
different industries have failed to realize the benefits of consolidations due to poor planning.

Situation Result Insight
• While the BBG was a success
case for the FDCCI, not every
initiative was as successful.
• Since FDCCI’s launch in 2010,
many agencies have struggled
to realize the anticipated
benefits of data center
consolidation.
• One of the top challenges for
participating agencies was to
quantify cost savings. This
challenge then hampered
mission-owner buy-in and
budget allocation for
consolidation.
• Due to the challenges and
risks that federal agencies
faced, progress has been
difficult.
• The majority of federal IT pros
gave their agencies’
consolidation efforts a “C” or
below.
• Fifty percent of agencies
believe that their agency will
not meet the designated
deadline.
• Fifty-three percent of agencies
were unsure if the cost of
closing data centers outweighs
the savings.
Cost savings were not automatic for the Federal Data Center
Consolidation Initiative (FDCCI)
CASE STUDY
• Consolidation has the potential
to realize massive benefits.
However, success is often
elusive without proper planning
and executive support.
• Spend at least 12-18 months
planning the consolidation
project. There is a direct
correlation between time spent
on planning and relocation
success.
• During planning, place an
emphasis on creating the
business case and justifying
the benefits of consolidation to
executives.
Source: “The FDCCI Big Squeeze,” MeriTalk The Government IT Network.

Projects to consider before executing a data center
consolidation project
Consolidating data centers is only one project within an overall IT optimization program. Leverage these
additional projects to bolster the benefits from data center consolidation.
Vendor Landscape: Server
Virtualization
Recover Data Center
Space After IT
Infrastructure Outsourcing
Create a Right-Sized
Disaster Recovery Plan
and DRP Business Impact
Analysis Tool
Improve IT-Business
Alignment with an
Infrastructure Roadmap
Cloud Strategy
Use Agile Application
Rationalization Instead of
Going Big Bang

• A data center consolidation initiative is a high-risk project that requires rigorous scoping and planning.
While the average organization takes seven months to plan a data center relocation, Info-Tech
recommends 12-18 months of discovery and planning before the move.
• This blueprint is directed at consolidating a data center of any size, however, the process is just as
applicable to co-locating the data center or consolidating multiple data centers, as each facility being
consolidated should be treated like an individual relocation project.
• Many IT professionals will only encounter a data center relocation once or twice in their professional
lives. Info-Tech research shows that 29% of survey respondents have never been involved in any part
of a data center relocation.
Leverage Info-Tech’s data center consolidation workflow to
effectively execute the consolidation project
Physically consolidating data centers can be best described as a controlled disaster
that involves high risk and requires a minute-to-minute plan for execution.
This blueprint will help you through the following phases of a data center relocation:
Executive
Brief
Phase 1:
Discovery
Phase 2:
Planning
Phase 3:
Execution
Phase 4:
Closure

Measured value for Guided Implementations (GIs)
Engaging in GIs doesn’t just offer valuable project advice, it also results in
significant cost savings.
GI Measured Value
Phase 1: Discovery phase
• Time, value, and resources saved by identifying current and target site infrastructure by leveraging Info-Tech’s
Data Center Consolidation Project Planning and Prioritization Tool and Data Center Consolidation Data
Collection Workbook.
• For example, 2 FTEs * 8 days * $80,000/year = $5,120
Phase 2: Planning phase
• Time, value, and resources saved by using Info-Tech’s tools and templates to conduct an effective
consolidation analysis.
Phase 3: Execution phase
• Time, value, and resources saved by following Info-Tech’s tools and methodology to document the move-day
project plan, communication plan, and final project review process.
Phase 4: Closure phase
• Time, value, and resources saved by following Info-Tech’s best-practice guidance and templates to ensure
that issues during consolidation are tracked and mitigated.
Total savings $29,440

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Craft an End-to-End Data Center Consolidation Strategy to Maximize Benefits

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Craft an End-to-End Data Center Consolidation Strategy to Maximize Benefits