maximizing it budget
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Maximizing Your IT BudgetSteve Carlson, IT Operations Manager
August, 2011
IntroductionIntroduction
Today’s Presenter:
Steve Carlson, IT Operations Manager
for Windstream Hosted Solutionsfor Windstream Hosted Solutions
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Windstream Corp. Snapshotp p
S&P 500 company with full suite of IP-based voice and data services, MPLS networking data center and managed hosting services and communication
• $4 billion in annual revenues• $4 billion in annual revenues
networking, data center and managed hosting services and communication systems to businesses and government agencies
• $4 billion in annual revenues
• 10,000 employees
• 29 states and District of Columbia
• $4 billion in annual revenues
• 10,000 employees
• 29 states and District of Columbia
• Data centers: 13
• 60,000 route miles of local
• Data centers: 13
• 60,000 route miles of local and long‐haul fiber networkand long‐haul fiber network
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Windstream FootprintWindstream Footprint
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Trusted by Top BrandsTrusted by Top Brands
Biotech/Healthcare Retail/ConsumerTechnology Banking/Finance Digital MediaBiotech/Healthcare /Technology Banking/Finance Digital Media
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Areas of FocusAreas of Focus
Strategic OutsourcingStrategic OutsourcingBuild vs BuyDedicated environmentDedicated environmentStoragePurchasing
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Strategic OutsourcingStrategic Outsourcing
Economic downturn has created challenges for manyEconomic downturn has created challenges for many organizations
Limited budgetsReduction in future headcountReduction in future headcountIncreased competitive pressure
Strategic outsourcing can free up resources to focus on the core businesson the core business Areas to explore when outsourcing
ColocationManaged ServicesSystem managementCloud ComputingDBA services
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Assess Your EnvironmentAssess Your Environment
Understand the trueUnderstand the true requirements of your applications
Growth potential of the applications
Look at the types of data and tier your storage
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Build vs BuyBuild vs. Buy
Redundant Internet
Consider the costs of building Data Center Space Redundant Internet Colocation
100 square feet of data center space = $120,000
Redundant Power
3 Cabinets of Colocation = $3,000 / Month
HVAC
Office Space v. Warehouse Space
Human CapitalHuman Capital
Facilities Cost
Maintenance
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Data Center Overviewa a e e O e e
Tier II and III, SAS 70 Type II compliant data centers
System + System uninterruptible power supply (“UPS”) systems, and carrier neutral network connections
Heating, ventilation and air conditioning (“HVAC”) systems to maintain temperature and humidity within strict toleranceshumidity within strict tolerances
Hardened facilities with automated facility management tools
Fire control with early warning smoke detection, clean agent suppression and/or dry‐pipe sprinkler systemsprinkler system
24 x 365 NOC & facilities staff provide for high security externally and internally
Service Level Agreement (“SLA”) backed guarantee of 100% power availability
Modular builds most expansions are less than four years old (10k sf or larger)Modular builds ‐most expansions are less than four years old (10k sf or larger)
24‐36 in raised floor no open systems or racks
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Solution ComparisonSolution Comparison
Redundant Internet
On-premise
$218,000 CAPEX$35,416 OPEX (M)
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StorageStorage
One of the most significant cost areas f ITof IT
One of the mostOne of the most misunderstood areas of IT
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Storage OptionsStorage Options
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Storage ExampleStorage Example
Logs:Data:
800 GB2 TB
@ 3.99/GB@ 3.99/GB
/
Logs:Data:
800 GB2 TB
@ 3.99/GB@ 2.25/GB
Archive: 800 GB @ 3.99/GB
$14,364
Archive: 800 GB @ 0.75/GB
$8,292
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Data Dedup ExampleData Dedup Example
Backup Application
Backup DatapFile System (Open) 535 GB 3% chg rateOracle (Open) 3,720 G9 GB 15% chg rateEmail (Open) 2,040 GB 2% chg rateSQL (Open) 305 GB 5% chg rate( p ) gUnity (AS/400, File System) 1,750 GB 3% chg rateJDE (AS/400, File System) 650 GB 3% chg rateA/R Imaging (AS/400, Comp) 300 GB 3% chg rate
Backup PolicyFull FriIncremental every other day of week
Retention 30 days
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Retention 30 days
Data Dedup Example SavingsData Dedup Example Savings
Data Required prior to DeDupe 85.6 TBData Required after DeDupe 11.7 TBTotal Savings 73.9 TB g
Compression Ratio 7.3:1Savings 86% Storage Savings
Repl bandwidth – no dedup 1063 MbpsRepl bandwidth – w/ dedupe 64 Mbps94% Bandwidth Savings
Net Result: Substantial Savings
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Net Result: Substantial Savings in Storage & Bandwidth Costs
Purchasing StrategyPurchasing Strategy
Who are you buying from?
Wh t t f l ti hi dUnderstanding this
What type of relationship do you have with your suppliers?
will give you access to COST pricing, not
LISTUnderstand the registration process
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Purchasing Strategy
E l S it A li Li t $41 390 00
Purchasing Strategy
Example: Security Appliance – List: $41,390.00
List Price 100% $41,390.00
Typical Discount using a VAR 20‐25% off list $31,042.50
Cost 40% off list $24,834.00Cost 40% off list $24,834.00
Registration 10% off cost $22,250.60
S i l P i i D dSpecial Pricing Depends
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Purchasing StrategyPurchasing Strategy
How plugged in are you to company‐wide purchasing? Being involved in IT
related purchasingCentralized procurement dept?Combine purchases Get maintenance attached to
related purchasing will ensure
consistency and value company‐wideGet maintenance attached to
contracts on the front end Ask for training credits
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SummarySummary
IT is everywhereIT is everywhere.A strategic IT organization benefits the entire business Assess ALL environments across the organization before making decisions
Assume nothing.Don’t settle for “I think so”Push for extras and deeper discounts
Focus on your core business.Explore outsourcing all non‐core i iti ti /f tiinitiatives/functions
One size never fits all.Utilize best practices that fit your environmentenvironment
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SummarySummary
Q&AQ&A
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Thank you!Thank you!Thank you!Thank you!
For more information, contact your For more information, contact your WindstreamWindstreamt ti i itt ti i it i d t b ii d t b irepresentative or visit representative or visit windstreambusiness.comwindstreambusiness.com
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