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Data Center Consolidation: Lessons From The Field John Tsiofas, Kraft Kennedy David Carlson, Kraft Kennedy

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Data Center Consolidation: Lessons From The Field

John Tsiofas, Kraft Kennedy

David Carlson, Kraft Kennedy

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Data Center Model Evolution

Know where are you along this evolutionary line.

Single Data Center

Distributed Data

Centers

Centralized Data Centers

(with Redundancies)

Consolidated Data Centers

(With redundancies)

Cloud Computing

Justifying a Change

• Different drivers can serve as the catalyst for this type of initiative

• Rarely is this a cost saving / cost reduction exercise

– It can be a cost containment exercise

• There are also natural times to consider a change in data center

strategy

– Major server hardware refresh required

– Investment in high availability or disaster recovery is required

– Upgrades required to data center HVAC systems

– Office space lease expiry or office relocation is approaching

– Complexity of current environment too high: operational, backup & recovery

– Lack of growth and flexibility

Factors to Consider

Strategic Value– Diversification of technology & people

– Leverage of technology investments

– Reduce impact to other offices

– Resiliency of business to relocate or set up new offices

Risk Profile of Location– Risk avoidance

– Safer facility

– Purpose built

– Less people, less attention, fewer variables

Physical Security– Fewer people, less attention

– Better facilities and procedures to protect contents

Factors to Consider

Power Quality and Redundancy

– Access to grid

– Redundancy of power

– Quality of power

– Reduction of power use (green data centers or less waste)

HVAC capacity and Redundancy

– Redundancy of HVAC systems

– Quality and reliability of HVAC

Communications redundancy

– Availability of multiple vendor POP’s

– NOC monitoring

Factors to Consider

Data Center Operations Quality (SLA Levels)– Reliability of procedures and tools

– Best use of core competencies

Growth options

- Minimal investments required to grow data center needs

- Space, power & resources to support it are now flexible

Access to Additional Services

- NOC / Smart hands 24/7,

- Network security monitoring

- Managed storage

Costs

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Top Priorities for CIOs

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0%Source: Goldman Sachs Global Investment Research

HIGH Priority MEDIUM Priority LOW Priority

Business Intelligence

Data Warehousing

Security

CRM Software

Cost Reduction

Disaster Recovery / BC

Server Virtualization

Server Consolidation

Data Center Consolidation

WAN Optimization

Storage Hardware

Desktop Virtualization

Data De-Duplication

Voice-Over-IP

Governance / Compliance

Strategic PlanningVirtualization

Server

Infrastructure

Messaging

Disaster

Recovery

Desktop

Computing

Litigation

Support

Other factors … Security and Network Infrastructure, Wide Area Networking, Storage Area Networking, Facilities, Power/Cooling, Database Systems …

Strategic Planning

Server consolidation

High availability

Disaster recovery

Directory services

Server Infrastructure

Strategic Planning

Server consolidation

Regionalization

Disaster recovery

Virtual desktop infrastructure

Virtualization

Strategic Planning

Application presentation

Application virtualization

Virtual desktop infrastructure

Disaster recovery and remote access

Desktop Computing

Strategic Planning

Site resiliency

High availability

Offsite replication

Business continuity

Disaster Recovery

Strategic Planning

Email consolidation

IM, Presence, Telephony

Web and audio conferencing

Archiving

Messaging / Unified Communication

Strategic Planning

Storage consolidation

Storage virtualization

Application publishing

WAN Optimization

Litigation Support

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Divide and Concur

This will likely be one of the largest, most complex project your IT

group will ever handle.

A “divide and concur” approach is critical

Plan to include:

– IT staff from multiple group and offices

– People from other departments (even as advisors)

– Outside vendors and advisors

Identify Streams of Activity

Common Streams Can Include:

• Data Center Build Out

• Network

• Servers / Virtualization

• Storage

• Applications

• Messaging

• Document Management

• Others…

• Desktop

• Migration / relocation

• Disaster Recovery

• Contract negotiations

Sample Timeline per Stream

Building a Project Team

• Group streams of anticipated activity into teams

• Identify a clear leader for each team

• Ideally, team leads should be members of the firm

– This helps with knowledge transfer and the development of skills

•Team leads should be responsible for:

– Ensuring require team documentation is produced

– Attending weekly or bi-weekly team leader and Project Manager meeting

– Raising alerts when team is off track or runs into obstacles

– Tracking work of team members on a daily basis

– Communicating status, obstacles, successes and key knowledge acquired

• Appoint an overall Project Leader (not the project sponsor)

– Must understand vision of what is being built

– May also serve as project architect or work closely with one

– May also server as Project Manager or work closely with one (or more)

Building a Project Team

• Each team should document what they will achieve / deliver– It should be detailed enough to serve as a checklist for when they are done

– It should detail also how it will fit into the work of the other teams

– It should include their assumptions for each other team

– It needs to be their document, not yours

• Involve people from various internal teams / disciplines

• Involve people from other offices

• Consider using project to introduce– New Project Management techniques

– Virtual teams concept

– New Communications protocols

– New meeting strategies / disciplines

– New Change Control

Quality Assurance

• Most of us agree that we are the worst people to proof or review

our own work

• Assigning someone to serve a QA / review role for each team is

very valuable

• It can be a member of another team, a dedicated reviewer to

review work of all teams, or the project leader.

• A team’s deliverable should not be accepted as done unless the

reviewer approves it.

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Value Vendors Provide

• They know their products better than anyone– can help you avoid common mistakes

– can advise on best approaches and solutions

• They see many different environments

•They have resources that may be able to assist at key times

• They will play a key role in educating your staff

•They can help reduce your costs by:– Temporary expertise

– Avoiding mistakes and misconfiguration

– Accelerating trouble shooting efforts

Using Vendors Effectively

• Involve all vendors early in the planning– Think about when you would want to be involved in a large project

– The later they provide their input, the more it will cost you

– Even if their role will be later in the project, tell them early

• Share your big picture strategy with them– Giving them information on a need to know basis is like asking them to help you with blind folds on.

– If you pick the right vendors, you should not have concerns about sharing key information with them

• Ensure the relationship with each vendor is being carefully managed

– Carefully consider who will be the single, day to day contact

– Ensure that is also an open line of communication to the Project Leader

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Managing The Project

• An experienced project manager is a must

• A project manager who has been through this type of project before

can be the key to success

• Allow time to plan

•Resist temptation to: start building, place orders, design systems

Key Documents to Consider

• Project Definition Document(s) for each team

– Goals, Deliverables, Assumptions, Requirements, Dependencies, Risks,

Budget, Timeline, Technical design

• Master Project Schedule

• Project Schedule for each team (for very large projects)

• Master Issue and Risk log

• Budget Tracking & Summary

• Consolidated timeline

• Regular status report

– Key Accomplishment, Next objectives, Active Risks

Agenda

Factors to consider

Technology strategy

Building a project team

How to use vendors wisely

Managing the project

Next evolutionary stage of the datacenter

Industry Insight

“You will need to start leading your organization safely in this [cloud computing] inevitable direction, or risk being sidelined by its progress”

- Mark Raskino, Gartner CIO New Years Resolutions 2009

“The cloud is about business model flexibility. We're not saying that everything needs to be in the cloud, but this is going to be the new

approach for delivering IT …"

- Judy O'Brien Chavis , DELLOpenSource World Conference (Aug ‘09)

Data Center Architectures

On-Premises

Data Centers

Colo and Remote

Data Centers

Hosted and Cloud

Infrastructure

Yesterday Current Trending

Distributed Architecture

Los A

nge

les

New

York

Lon

do

n

Co

rpo

rate W

AN

/ Inte

rne

t

Consolidated Architecture

New

York

Co

loFacility

Los A

nge

les

Lon

do

n

Co

rpo

rate W

AN

/ Inte

rne

t

VPNWAN

Internet

Cloud Computing

New

York

Los A

nge

les

Lon

do

n

Hosted Infrastructure/Applications

Public Cloud

Multi-tenant Infrastructure

Cloud computing defined

To be considered a cloud model, some basic criteria typically need to

be met:

Scalability – Can easily grow in response to increased demand

Elasticity – Can dynamically acquire or release compute resources on-demand

Fully Managed – You don’t typically own, operate or maintain the system

Costs – Sold on demand without capital expenditure and pay-as-you-go model

Highly Available - Loss of any one component will not result in systems failure.

A style of computing where scalable and

elastic IT capabilities are provided as a

service to multiple customers using

Internet technologies

? as a ServiceIaaS PaaS SaaS

Infrastructure

as a Service

Platform

as a Service

Software

as a Service

Software+Services

Why the trend?

Comparing Costs

Unit Cost Monthly Cost

Compute $0.08 – $0.19 / hour $180.00/month

Storage $0.15 – $0.17 / GB $13.50/month

Data Transfer $0.17 – $0.50 / GB $25.00/month

Cloud ServerTotal Costs

1 year: $2622

3 year: $7866

On-Premise ServerTotal Costs

$5800*

IaaS vs. On Premise

*Costs not included: server operating system, network, bandwidth, power/cooling, facilities and operating expenses

Source: GoGrid, Amazon

Considerations

Not necessarily a reduction in costs

Other expenses need to be considered: colocation, SAN, networking, racks, power, cooling, operating costs, maintenance

Service Levels – what can you provide today vs. what can cloud computing offer?

Staffing and maintenance – how much does this help you? Focus on strategic initiatives.

Customization and privacy concerns

Trouble in the cloud – outages, systems compromised

Where is this going?

CIOs want to get out of the data center business.

Organizations cannot afford the costs nor desire to maintain systems with the complexity required to provide necessary service levels.

Offerings maturing quickly; organizations beginning to adopt cloud and Software as a Service

Email and perimeter, conference services, CRM, archiving. backup

Blended cloud and on-premise environments for the near term

Lessons LearnedInvolve key decisions makers early

Involve project managers before work begins

Allow extra time for major milestones to be completed

Stay involved with contract negotiations

Carefully consider staff augmentation strategies

Test in QA, validate in production

Lowest cost option is not always the best

IT staff are poor pilot users

Questions

John Tsiofas, Strategic Consultant

[email protected]

David Carlson, Solution Architect

[email protected]

@davecarlson4

blogs.kraftkennedy.com