Datacenter Economics : Analyzing Challenges and Opportunities


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Read this document to learn about the key findings of the Wipro and Outsourcing center survey on 'Impact of Datacenter strategies on Business'

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Datacenter Economics : Analyzing Challenges and Opportunities

  1. 1. Datacenter Economics : Analyzing Challenges & Opportunities © 2011 Wipro Ltd - Confidential
  2. 2. Agenda 1 Overview 2 A Wipro and OutsourcingCenter Survey 3 Survey Findings 4 Key Takeaway2 © 2009 Wipro Ltd - Confidential 2011 © 2010 Wipro Ltd - Confidential
  3. 3. Overview3 © 2011 Wipro Ltd - Confidential
  4. 4. An Overview The Current Scenario… As data volume expands and data becomes more unstructured, a datacenter management strategy must be developed during early stage of challenges Variabilization of technology is essential to move to a variable cost model, helping organizations to enhance agility, drive efficiency, optimize delivery and lower unit costs. Organic growth and mergers & acquisitions have led to geographic disbursement of datacenters – this poses sever challenges like – •Disparate technologies, including a wide range of servers, some old, some new •Back-up, tracking and data management challenges •Software challenges like inoperability due to variation of application across different locations Recessionary times call for greater ways to reduce IT costs.4 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  5. 5. A Wipro and OutsourcingCenter Survey5 © 2011 Wipro Ltd - Confidential
  6. 6. A Wipro and OutsourcingCenter Survey OBJECTIVE To determine the current state of organizations’ data centers as well as explore the attitudes and challenges towards data center optimization. SURVEY PARTICIPANTS The survey included 75 CIOs and Heads of IT from Fortune 1000 companies across US, Europe and APAC. The participants represented a range of industries including retail, financial services, transportation/logistics, manufacturing, healthcare and telecommunications. While not a comprehensive picture of how organizations from various industry segments are currently addressing their data center challenges, the survey` findings point to some general trends in this area.6 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  7. 7. Participants Profile Roughly a quarter (25.8%) of organizations were Annual Revenue (%) large enterprises, with more than 20,000 employees > $1 Bn $500 Mn - Slightly more than 60 percent of survey $1 Bn participants belonged to organizations with very 25 healthy IT budgets 43 $300 Mn - $500 Mn 17 $100 Mn - 6 9 $300 Mn 45.2% of participants reported that their annual IT budget for 2012 is more than $50 million < $20 Mn 43.8% of participant organizations have revenues in excess of 1bn USD7 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  8. 8. Survey Findings8 © 2011 Wipro Ltd - Confidential
  9. 9. Findings No. of datacenters operating (%) View datacenter strategy as key impact to business (%) 42 39 53 31 13 16 3 3 Yes No Maybe 1 to 2 3 to 5 6 to 10 11 to 20 > 20 A majority of organizations of surveyed Organizations operating in multiple markets, for participants view datacenter strategy as a key across APAC, including Australia, Japan, India or impact to business in Europe or Latin America have multiple datacenters However , survey members from the Organizations find multiple data centers very manufacturing industry did not feel that a data expensive and outweighs some of the benefits of center strategy impacted business localization9 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  10. 10. Findings Awareness of detailed cost breakdown of each datacenter (%) A vast majority (72%) are unaware of detailed datacenter costs. Lack of this knowledge will lead to organizations spending on less critical 28 things 72 Yes Cost reduction methods among surveyed No respondents included server and storage virtualization, process standardization, etc. Outsourcing, opting for a managed service provider was top cost-reducing measures Adopted alternate models for datacenter management Participants were almost evenly split on their adoption of alternative models for data center 53 47 management Yes No The biggest challenge for organizations is to actually how the measures will improve operations and still provide an acceptable ROI10 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  11. 11. Findings Major Challenges to move to alternate models Reason % of respondents Lack of Measurable ROI 55% Current lack of skill set to 32% manage change Data Security Concerns 29% Lack of budgetary 23% resources Lack of measurable ROI is the biggest identified roadblock but since most respondents were unaware of the elements of cost, they were not in the position to accurately gauge financial returns Apart from the above, resistance to cultural change within the organization was also cited as a reason by survey respondents to hold back from implementing an alternative data management model11 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  12. 12. Takeaways12 © 2011 Wipro Ltd - Confidential
  13. 13. Key Takeaways In order to meet current data center challenges, organizations must take measures to consolidate data centers and look at outsourcing arrangements and alternate models of data center management. However, because carrying out a data center strategy typically requires a large investment in time and costs, organizations today are making tactical decisions instead, which have minimal impact Using new methods for standardizing, consolidating, virtualizing and automating processes, organizations can transform their data centers to be lean and energy efficient. Transforming the data center can enable growth, minimize risk, increase speed and agility, and lead to dramatic cost reductions.13 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  14. 14. Wipro Advantage Wipro has an array of offerings that have been developed to help organizations from all sectors overcome today’s data center challenges. Wipro’s data center services have been designed to help customers reduce IT infrastructure and operational costs, achieve higher service and performance levels and manage IT infrastructure efficiently and effectively. Wipro is able to variablize client IT costs while delivering next-generation services. Wipro Advices a Three-Step Approach to Data Center Economics: •Cost Transparency: Using are tools and technologies for a breakdown of data center costs specific to each organization. • Data Center Consolidation: Outlining application and process rationalization, asset consolidation and the migration approach. •Modular Data Centers: In their consolidation evaluation process, organizations should consider modular, energy efficient data centers. Depending on the current state of the data center, an organization could implement a partial or full modular strategy.14 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  15. 15. Wipro Datacenter Services overview •Hosted solutions across Wipro’s 11 global data centers located in USA & Europe & APAC •Over 600,000 sq ft capacity, with 300000+ sq ft raised floor •Partner relationship with Major data center players across USA, Europe and APAC •8 Global Command Centers(GCC) located in multiple geographies15 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  16. 16. WIPRO Datacenter Specialized Offerings Cloud – IT360™ IaaS, SaaS, PaaS WIPRO DC Specialized Green FluidState™ Offerings DCs DAI™16 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  17. 17. For more details please visit the link below Or contact sureni.rout@wipro.com17 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  18. 18. About Wipro Council of Industry Research Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies. For more information on the Research Council visit or mail wipro.insights@wipro.com18 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  19. 19. About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has over130,000 employees and clients across 54 countries. For more information, please visit www.wipro.com19 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  20. 20. Thank you© 2011 Wipro Ltd - Confidential