Data Center Dynamics


     Bisakha Praharaj


       February 2012
Data Center Evolution
Technology Innovation and Green IT Adaptation




                                                                                           Virtualized
                                                                                            Clusters
                                                                                                         Cloud Data
                                                                                                          Centers


                                                                               Grid Computing




                                                                     Client/Server

                                                  Minicomputers

                                                Mainframes
                                                                                                                              Time
                                                      1960        1980           1990           2000        NOW
                                                                                                             Source: Frost & Sullivan analysis.

                                                                                                                                              2
Significant Statistics

IT Equipment and Cooling systems contribute to around 75% of a Data Center’s energy
consumption.                                               EYP Missions Critical Facilities Inc., New York


Data Centers Use 1.3% of World’s Total Electricity
                                                                    Study by Stanford professor Jonathan Koomey


Traditionally, 89% of IT budgets allocated to hardware and maintenance, while only 11% is
invested in new product initiatives                                                       Microsoft


Server utilization is around 10 to 25 percent on an average across all industries
                                                                                  Mark E. Stumm, nlyte Software


Indian data center capacity is poised to touch 6.6 million square feet by 2016
                                                                                                            Gartner


World’s Third Largest Data Center now in Bangalore.
                                                                                        Tulip Telecom PR report


Everyday, we create 2.5 quintillion bytes of data, so much that 90% of the data in the world today
has been created in the last two years alone.                                                   IBM

                                                                                           Source: Frost & Sullivan analysis.


                                                                                                                            3
Data Center – Market and Technology Trends


 Data Center Consolidation                            DC in a Box                           Cloud Computing
• Centralization and convergence           • Converged Infrastructure concept        • Private Cloud adoption on the
  witnessed                                  collates servers, storage, cooling,       upswing amongst Govt.
• Saves on cost, reduces IT asset            networking and power systems              departments and enterprises
  sprawl and increases control             • Helpful with space utilization and IT   • Accountability, faster provisioning,
                                             infrastructure optimization               service oriented IT architecture




         Ethernet Usage                           Green Computing                        Network Convergence
• Metro Ethernet and EoMPLS                • Increasing preference for               • Data (LAN) and storage networks
  adoption                                   certifications – LEED, Uptime             (FC) need to merge
• Bandwidth flexibility, cost efficiency     Institute Tier Levels, PUE, ISO, etc.   • Proliferation of Fiber Channel over
  and high scalability                     • Shift in IT devices, building             Ethernet (FCoE)
                                             technologies and cooling systems



           Virtualization                     Data Center Automation                        Innovative Cooling
• Server, Storage and Network              • Surpass network fault management        • Precision cooling, Liquid cooling,
  virtualization                             and performance measurement               hot aisle-cold aisle design are all an
• Immense power savings coupled            • Will include complex tools like VPS       attempt at energy saving along with
  with better space utilization and          provisioning, migration,                  increased system efficiency
  centralization of hardware                 configuration management , etc.


       Current                 Emerging
                                                                                                     Source: Frost & Sullivan analysis.

                                                                                                                                      4
Next Generation Data Center will be


  Flat network enabled


  Virtualized

  displaying Data and Storage
  Network Convergence

  Non-Application specific

  Completely Automated

  increasingly Service-centric

  Greener
                                      Source: Frost & Sullivan analysis.

                                                                           5
Supply Side Value Chain Mapping

                                              DC                        Other
            DC Build &                                     Racks &                                   Captive DC       Third Party
                          Storage   Servers   Networking                Passive     Connectivity
            Consultancy                                    Enclosures                                Services         DC Services
                                              Equipment                 Equipment



IBM

HP

Wipro

HCL

Reliance

TCL

Tulip

Sify

Cisco

Emerson

Schneider
Electric
                                                                                                   Source: Frost & Sullivan analysis.


                                                                                                                                        6
Government Data Centers


                                   1.   State Data Centers

                                   2.   UID scheme (Bangalore)

                                   3.   Income Tax Department (Bangalore)

                                   4.   RBI (New Mumbai)

                                   5.   Passport Services (New Delhi)

                                   6.   Traffic Police Departments
                                   7.   Indian Railways’ Passenger
                                        Reservation System

              State Data Centers        ………

                                        ……….........

                                        and many more…….


                                                         Source: Frost & Sullivan analysis.

                                                                                          7
Case Scenarios for Fruitful Adoption


                 Central Government provides a unified IaaS and/or PaaS
                 solution with each state having customized state applications
                 developed and run on it.

                 SDC transform to a P2V2C Model: Multiple cloud centers
                 integrated to satisfy data and compute needs of all states

                 Resource sharing with PSUs to benefit them of access to
                 better technology facilities and improve the scope for
                 nationwide data integration
                 Hosting of only sensitive applications at internal data centers
                 and outsourcing of peripheral applications on a private player
                 hosted model




                                                                                   8
Government is the 3rd biggest buyer of Managed Services

Captive Managed Services
                        Expected to contribute    Q2 FY12 Revenues: INR 7069 Cr.
                        14% of the overall
                        captive managed
                        services market in FY12




Third Party Managed Services
                        With a share of 12.6%,    Q2 FY12 Revenues: INR 601 Cr.
                         various smaller Govt.
                         projects are migrating
                       towards a Hosted Model




                                                                                   9
Initiatives in the right direction


         Government to provide subsidised cloud computing to SMEs to boost ICT
         adoption and eventually translate into financial growth of the segment



         J& K Government hosts servers at Madhya Pradesh SDC and issues birth,
         death certificates and trade licenses


         NTP policy aims at formulating policies on cloud services hereby
         diminishing the ambiguities which plagued it and acted as a chief restraint
         for the market


         To make best use of available virtualized resources, the Government of
         Kerala has initiated testing for cloud computing solutions


                                                                                       10
Challenges acting as restraints to adoption


 ●   Lack of IT centralization                 Govt. Departments’ IT working in
                                                            Silos
 ●   Lack of multi-tenancy on legacy systems

 ●   Non-Interoperability of systems

 ●   Security, auditing and logging

 ●   Regulatory compliance                       Tax &                  Census
                                                 Duties                 Records
 ●   Data recovery
                                                              UID
 ●   Low IT maturity and high resistance to

     change
                                               Land/Revenue          Law & Law
 ●   Multiplicity of deployment agencies         Records            Enforcement
                                                                      Records
 ●   Longer procurement cycle
                                                                    Source: Frost & Sullivan analysis.

                                                                                                   11
Data Centre Improvements by different Governments


                IT spend = USD 564 Bn. (2011)

  In Feb 2010, the Federal CIO issued data center consolidation guidance program. The guidance
  directed agencies to consider agency data center performance and utilization metrics, energy
  efficiency use data, physical facility, operational cost and asset information, best practices, open
  standards, and security.

  Also the Federal CIO mandates every department in every state needs to have atleast two state
  applications on the cloud.


                IT spend = USD 25 Bn. (2011)

  New ICT strategy to focus on data center consolidation and IT centralization with a cloud-based
  architecture. Plans to reduce the count of government owned data centers from 220 to 9-12
  facilities.

  Cloud computing should account for half of central government's new ICT spending by the end of
  2015.
                                           Source: State of Public Sector Cloud Computing- US Federal CIO Report, Frost & Sullivan analysis.


                                                                                                                                         12
Data Centre Improvements by different Governments


                IT spend = USD 5 Bn. (2011)

  Australian government spends around USD 850 million per annum on it’s 30,000 sq. meter data
  center facilties. To curtail this expenditure, Australian Government Data Centre Strategy 2010-
  2025 has been proposed.

  Data centre requirements will be planned, procured and managed on a whole-of-government basis.
  Data centre facilities and services will be available via a whole-of-government panel.



                IT spend = USD 112 Bn. (2011)

  Cloud City being built at Hebei Province in partnership with IBM, is expected to achieve completion
  by 2015. The entire complex will cover some 6.2 million square feet, with the initial data center space
  accounting for approximately 6,46,000 square feet.

  One of the biggest adopters of cloud in the APAC region.
                    Source: Australian Government Data Centre Strategy 2010-2025 – Dept. Of Finance & Deregulation Report, Frost & Sullivan analysis.


                                                                                                                                                   13
Global Perspective – ICT Torque Index

       As per an evaluation of relative ICT spends, the top-ranking nations include Bangladesh,
      Ukraine, and Morocco, along with many other developing nations in Asia, North Africa, and
                                            Eastern Europe.




Note: The images are used only for representation.
                   Image Source: Google Images                      Source: CloudTweaks.com, Frost & Sullivan analysis


                                                                                                                    14
THANK YOU




Your Strategic Partner in Success



                                    15

Data center dynamics

  • 1.
    Data Center Dynamics Bisakha Praharaj February 2012
  • 2.
    Data Center Evolution TechnologyInnovation and Green IT Adaptation Virtualized Clusters Cloud Data Centers Grid Computing Client/Server Minicomputers Mainframes Time 1960 1980 1990 2000 NOW Source: Frost & Sullivan analysis. 2
  • 3.
    Significant Statistics IT Equipmentand Cooling systems contribute to around 75% of a Data Center’s energy consumption. EYP Missions Critical Facilities Inc., New York Data Centers Use 1.3% of World’s Total Electricity Study by Stanford professor Jonathan Koomey Traditionally, 89% of IT budgets allocated to hardware and maintenance, while only 11% is invested in new product initiatives Microsoft Server utilization is around 10 to 25 percent on an average across all industries Mark E. Stumm, nlyte Software Indian data center capacity is poised to touch 6.6 million square feet by 2016 Gartner World’s Third Largest Data Center now in Bangalore. Tulip Telecom PR report Everyday, we create 2.5 quintillion bytes of data, so much that 90% of the data in the world today has been created in the last two years alone. IBM Source: Frost & Sullivan analysis. 3
  • 4.
    Data Center –Market and Technology Trends Data Center Consolidation DC in a Box Cloud Computing • Centralization and convergence • Converged Infrastructure concept • Private Cloud adoption on the witnessed collates servers, storage, cooling, upswing amongst Govt. • Saves on cost, reduces IT asset networking and power systems departments and enterprises sprawl and increases control • Helpful with space utilization and IT • Accountability, faster provisioning, infrastructure optimization service oriented IT architecture Ethernet Usage Green Computing Network Convergence • Metro Ethernet and EoMPLS • Increasing preference for • Data (LAN) and storage networks adoption certifications – LEED, Uptime (FC) need to merge • Bandwidth flexibility, cost efficiency Institute Tier Levels, PUE, ISO, etc. • Proliferation of Fiber Channel over and high scalability • Shift in IT devices, building Ethernet (FCoE) technologies and cooling systems Virtualization Data Center Automation Innovative Cooling • Server, Storage and Network • Surpass network fault management • Precision cooling, Liquid cooling, virtualization and performance measurement hot aisle-cold aisle design are all an • Immense power savings coupled • Will include complex tools like VPS attempt at energy saving along with with better space utilization and provisioning, migration, increased system efficiency centralization of hardware configuration management , etc. Current Emerging Source: Frost & Sullivan analysis. 4
  • 5.
    Next Generation DataCenter will be Flat network enabled Virtualized displaying Data and Storage Network Convergence Non-Application specific Completely Automated increasingly Service-centric Greener Source: Frost & Sullivan analysis. 5
  • 6.
    Supply Side ValueChain Mapping DC Other DC Build & Racks & Captive DC Third Party Storage Servers Networking Passive Connectivity Consultancy Enclosures Services DC Services Equipment Equipment IBM HP Wipro HCL Reliance TCL Tulip Sify Cisco Emerson Schneider Electric Source: Frost & Sullivan analysis. 6
  • 7.
    Government Data Centers 1. State Data Centers 2. UID scheme (Bangalore) 3. Income Tax Department (Bangalore) 4. RBI (New Mumbai) 5. Passport Services (New Delhi) 6. Traffic Police Departments 7. Indian Railways’ Passenger Reservation System State Data Centers ……… ………......... and many more……. Source: Frost & Sullivan analysis. 7
  • 8.
    Case Scenarios forFruitful Adoption Central Government provides a unified IaaS and/or PaaS solution with each state having customized state applications developed and run on it. SDC transform to a P2V2C Model: Multiple cloud centers integrated to satisfy data and compute needs of all states Resource sharing with PSUs to benefit them of access to better technology facilities and improve the scope for nationwide data integration Hosting of only sensitive applications at internal data centers and outsourcing of peripheral applications on a private player hosted model 8
  • 9.
    Government is the3rd biggest buyer of Managed Services Captive Managed Services Expected to contribute Q2 FY12 Revenues: INR 7069 Cr. 14% of the overall captive managed services market in FY12 Third Party Managed Services With a share of 12.6%, Q2 FY12 Revenues: INR 601 Cr. various smaller Govt. projects are migrating towards a Hosted Model 9
  • 10.
    Initiatives in theright direction Government to provide subsidised cloud computing to SMEs to boost ICT adoption and eventually translate into financial growth of the segment J& K Government hosts servers at Madhya Pradesh SDC and issues birth, death certificates and trade licenses NTP policy aims at formulating policies on cloud services hereby diminishing the ambiguities which plagued it and acted as a chief restraint for the market To make best use of available virtualized resources, the Government of Kerala has initiated testing for cloud computing solutions 10
  • 11.
    Challenges acting asrestraints to adoption ● Lack of IT centralization Govt. Departments’ IT working in Silos ● Lack of multi-tenancy on legacy systems ● Non-Interoperability of systems ● Security, auditing and logging ● Regulatory compliance Tax & Census Duties Records ● Data recovery UID ● Low IT maturity and high resistance to change Land/Revenue Law & Law ● Multiplicity of deployment agencies Records Enforcement Records ● Longer procurement cycle Source: Frost & Sullivan analysis. 11
  • 12.
    Data Centre Improvementsby different Governments IT spend = USD 564 Bn. (2011) In Feb 2010, the Federal CIO issued data center consolidation guidance program. The guidance directed agencies to consider agency data center performance and utilization metrics, energy efficiency use data, physical facility, operational cost and asset information, best practices, open standards, and security. Also the Federal CIO mandates every department in every state needs to have atleast two state applications on the cloud. IT spend = USD 25 Bn. (2011) New ICT strategy to focus on data center consolidation and IT centralization with a cloud-based architecture. Plans to reduce the count of government owned data centers from 220 to 9-12 facilities. Cloud computing should account for half of central government's new ICT spending by the end of 2015. Source: State of Public Sector Cloud Computing- US Federal CIO Report, Frost & Sullivan analysis. 12
  • 13.
    Data Centre Improvementsby different Governments IT spend = USD 5 Bn. (2011) Australian government spends around USD 850 million per annum on it’s 30,000 sq. meter data center facilties. To curtail this expenditure, Australian Government Data Centre Strategy 2010- 2025 has been proposed. Data centre requirements will be planned, procured and managed on a whole-of-government basis. Data centre facilities and services will be available via a whole-of-government panel. IT spend = USD 112 Bn. (2011) Cloud City being built at Hebei Province in partnership with IBM, is expected to achieve completion by 2015. The entire complex will cover some 6.2 million square feet, with the initial data center space accounting for approximately 6,46,000 square feet. One of the biggest adopters of cloud in the APAC region. Source: Australian Government Data Centre Strategy 2010-2025 – Dept. Of Finance & Deregulation Report, Frost & Sullivan analysis. 13
  • 14.
    Global Perspective –ICT Torque Index As per an evaluation of relative ICT spends, the top-ranking nations include Bangladesh, Ukraine, and Morocco, along with many other developing nations in Asia, North Africa, and Eastern Europe. Note: The images are used only for representation. Image Source: Google Images Source: CloudTweaks.com, Frost & Sullivan analysis 14
  • 15.
    THANK YOU Your StrategicPartner in Success 15