Reducing IT Cost through Data Center Consolidation - Getting it right the first time

1. Data Center Consolidation
March 2010
© Copyright 2010 T3 Dynamics LLC, All Rights Reserved

2. What is IT Doing?
Improving
security

3. What is the key IT driver today?
Cost Cutting
……above all things

4. Consolidating Infrastructure is Key
• Gartner reports that 69% of IT
cost is from operations and
maintenance of existing systems
• 29% of IT budget is staff costs
alone
• More data centers means
• 50% of data center costs is
derived from software,
networking, server and
storage costs
• 20% of budget is telecom
and network services;
Network HW is 23% of
capital budget
• Power is up to 33% of the
cost of the DC space

5. How?
Reduce the cost of the data center
• Reduce the size and number of data centers and
servers
DC • Migrate to new virtualized HW (possibly including
Consolidation private and public clouds) during the consolidation
activities • Implement strategic DR functionality as a bi-
product of the move

6. What else can be done?
Reduce cost of people
• Implement more efficient IT Service Management
processes
• Outsource commodity activities

7. Sweating the details
• Avoid mistakes that will extend the project time and effort –
sweat the details in application migration planning
• Identify contract date obligations
• Define critical cutover dates by application – change
management
• Manage lead times for hardware, space, network changes
• Develop detailed release plans by application
• Complete configuration management of applications and
documentation
• Perform functional regression testing and performance testing
• Deliver changes to service desk documentation and training
• Execute communication plan

8. Strategy and Resource Conclusions
Much of the IT cost reduction goals will come from infrastructure consolidation
– How do you make this project efficient and effective?
• Ensure completeness – starts with an accurate inventory
• Hardware – physical and virtualized
• Software – completeness and opportunities for consolidation
• Application/infrastructure interdependencies

9. For More Information
Barry Weber
• Phone: +1 818 584 6565
• Email: bweber@T3Dynamics.com

10. Thank You