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Data center consolidation has consistently ranked as one of the top-of-mind projects for CIOs across the globe. Consolidation has been popular due to its ability to provide a wide range of cost and efficiency improvements for the data center. While there is a whole host of benefits, these benefits are by no means guaranteed. Successful data center consolidation is heavily reliant on effective project planning. This includes gathering relevant business requirements, inventorying equipment and applications, and establishing effective stakeholder communications.Organizations that forego planning will often experience additional unforeseen costs and erode consolidation benefits. Maximize the chances of consolidation success by allocating 12-18 months for planning the data center consolidation.

David (Da) Xu, Senior Consulting Analyst, Infrastructure

Info-Tech Research Group

Data center consolidation is like building Rome – it wasn’t done in a day!

ANALYST PERSPECTIVE

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This Research is Designed For: This Research Will Help You:

This Research Will Assist: This Research Will Help You:

This Research Is Designed For: This Research Will Help You:

This Research Will Also Assist: This Research Will Help Them:

Our understanding of the problem

IT and infrastructure managers who are responsible for executing a data center consolidation project.

Organizations that are currently struggling with high infrastructure costs and need to find ways to meet a tighter IT budget.

IT managers trying to contain data center sprawl.

Use a structured consolidation framework to mitigate risks during consolidation and maximize your chances of realizing consolidation benefits.

Create a detailed TCO analysis that builds into a strong business case for the consolidation project.

Establish a process to decommission older facilities and help manage sprawl.

IT managers who want to establish a repeatable framework for future data center consolidation projects.

Other business managers who will be impacted by the consolidation.

Understand the importance of effective project planning for the consolidation project.

Familiarize themselves with the current service levels that IT is providing and future service levels after the consolidation.

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Resolution

Situation

Complication

Info-Tech Insight

Executive summary

• Data center operating costs continue to escalate as organizations struggle with data center sprawl.

• The complexity of data center consolidation makes it difficult for consolidation projects to get off the ground. At the same time, organizations that do start consolidation often overlook the discovery and planning phase of data center consolidation.

• Despite consolidation being an effective way of addressing sprawl, it is often difficult to secure buy-in and funding from the business.

• Many consolidation projects suffer cost overruns due to unforeseen requirements and hidden interdependencies which could have been mitigated during the planning phase.

• While data center relocation projects can be expensive, in the long run, the benefits of reducing operating costs will often off-set the initial capital expenditure. The key to recapture consolidation benefits is to establish an end-to-end consolidation strategy which can identify and mitigate relevant risks before execution.

• Project management and planning is critical to the success of a data center consolidation project. Info-Tech recommends 12-18 months of planning to help mitigate risk. Organizations that expend more effort on a detailed consolidation strategy for each individual piece of infrastructure will consistently be more successful in capturing consolidation benefits.

1. Effective planning which focuses on gathering business requirements and inventorying equipment/applications is key to consolidation success.

2. Garner executive support for the data center consolidation project by presenting a well-rounded business case complete with quantitative and qualitative benefits.

3. Regardless of the size and magnitude of the consolidation, a detailed communications plan is required.

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Capture the key benefits of data center consolidation

Cost savings: Consolidating data centers has the potential to reduce the following:1. Operating costs2. Facility costs3. IT personnel costs4. Hardware costs

Improved resilience: As part of consolidation, automation of business-critical processes and systems becomes possible. This can improve overall resilience by improving process consistency and enforcement of regulations.

Increased control: By reducing the number of devices that need to be monitored and maintained, the IT team will have an opportunity to standardize and update infrastructure for greater efficiency.

Improved security: Physically security will naturally improve when there are fewer sites and assets to manage. Also, reduced connections between facilities will make it easier to monitor and control security entry and exit points.

Data center consolidation continues to rank as one of the highest priorities for CIOs. Understand the key benefits that justify the need for data center consolidation.

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Situation Result Insight

• In 2009, the Broadcasting Board of Governors (BBG) had 11 data centers.

• The infrastructure sprawl was near unmanageable. In 2009, the agency owned eight storage systems from eight different vendors.

• The agency started a three-year plan to consolidate IT infrastructure.

• The goal was to reduce the 11 data centers down to three.

• In 2011, BBG was able to achieve its goal and is now operating three data centers:o One dedicated to video

processing.o A second for redundancy.o A third to host the

virtualized server environment and storage hardware.

• The BBG was able to save $650,000 by eliminating maintenance contracts and retiring aging IT equipment.

Data center consolidation can boost the bottom-line and also improve efficiencies

CASE STUDY The Broadcasting Board of Governors

• The price-to-performance ratio of IT infrastructure should always be front of mind for any IT shop. Consolidation will often provide an opportunity for organizations to save on infrastructure costs and reallocate that budget to more innovative endeavors.

• Aside from just bottom-line impact, consolidation can also improve security due to the reduced number of updates and patching required for the system.

Source: “Federal Data Center Consolidation Initiative Offers Agencies Hidden Benefits”, FedTech Magazine

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Understand the key risks of data center consolidation

Application compatibility: Legacy applications may not be able to operate on the new infrastructure. This will also lead to unplanned downtime and result in unnecessary costs for the organization.

Personnel management: Whether it is laying off staff, hiring new staff, or transitioning current staff to new roles, personnel management is critical to the success of consolidation.

Transition risk: Uncoordinated service outages during the consolidation may disrupt mission-critical applications for end users. Mitigate this through effective planning.

Performance demand: The consolidated data center network infrastructure must be able to support the increased application workloads and ensure that applications can meet SLAs. This is critical for day-to-day service continuity and disaster recovery.

Consolidating data centers is not without risk. Countless examples of organizations across different industries have failed to realize the benefits of consolidations due to poor planning.

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Situation Result Insight

• While the BBG was a success case for the FDCCI, not every initiative was as successful.

• Since FDCCI’s launch in 2010, many agencies have struggled to realize the anticipated benefits of data center consolidation.

• One of the top challenges for participating agencies was to quantify cost savings. This challenge then hampered mission-owner buy-in and budget allocation for consolidation.

• Due to the challenges and risks that federal agencies faced, progress has been difficult.

• The majority of federal IT pros gave their agencies’ consolidation efforts a “C” or below.

• Fifty percent of agencies believe that their agency will not meet the designated deadline.

• Fifty-three percent of agencies were unsure if the cost of closing data centers outweighs the savings.

Cost savings were not automatic for the Federal Data Center Consolidation Initiative (FDCCI)

CASE STUDY

• Consolidation has the potential to realize massive benefits. However, success is often elusive without proper planning and executive support.

• Spend at least 12-18 months planning the consolidation project. There is a direct correlation between time spent on planning and relocation success.

• During planning, place an emphasis on creating the business case and justifying the benefits of consolidation to executives.

Source: “The FDCCI Big Squeeze,” MeriTalk The Government IT Network.

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Projects to consider before executing a data center consolidation projectConsolidating data centers is only one project within an overall IT optimization program. Leverage these additional projects to bolster the benefits from data center consolidation.

Vendor Landscape: Server Virtualization

Recover Data Center Space After IT Infrastructure Outsourcing

Create a Right-Sized Disaster Recovery Plan and DRP Business Impact Analysis Tool

Improve IT-Business Alignment with an Infrastructure Roadmap

Cloud Strategy

Use Agile Application Rationalization Instead of Going Big Bang

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• A data center consolidation initiative is a high-risk project that requires rigorous scoping and planning. While the average organization takes seven months to plan a data center relocation, Info-Tech recommends 12-18 months of discovery and planning before the move.

• This blueprint is directed at consolidating a data center of any size, however, the process is just as applicable to co-locating the data center or consolidating multiple data centers, as each facility being consolidated should be treated like an individual relocation project.

• Many IT professionals will only encounter a data center relocation once or twice in their professional lives. Info-Tech research shows that 29% of survey respondents have never been involved in any part of a data center relocation.

Leverage Info-Tech’s data center consolidation workflow to effectively execute the consolidation project Physically consolidating data centers can be best described as a controlled disaster that involves high risk and requires a minute-to-minute plan for execution.

This blueprint will help you through the following phases of a data center relocation:

Executive Brief

Phase 1: Discovery

Phase 2: Planning

Phase 3: Execution

Phase 4: Closure

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Measured value for Guided Implementations (GIs)

Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings. GI Measured Value

Phase 1: Discovery phase• Time, value, and resources saved by identifying current and target site infrastructure by leveraging Info-Tech’s

Data Center Consolidation Project Planning and Prioritization Tool and Data Center Consolidation Data Collection Workbook.

• For example, 2 FTEs * 8 days * $80,000/year = $5,120

Phase 2: Planning phase

• Time, value, and resources saved by using Info-Tech’s tools and templates to conduct an effective consolidation analysis.

• For example, 2 FTEs * 15 days * $80,000/year = $9,600

Phase 3: Execution phase• Time, value, and resources saved by following Info-Tech’s tools and methodology to document the move-day

project plan, communication plan, and final project review process. • For example, 6 FTEs * 5 days * $80,000/year = $9,600

Phase 4: Closure phase• Time, value, and resources saved by following Info-Tech’s best-practice guidance and templates to ensure that

issues during consolidation are tracked and mitigated.• For example, 4 FTEs * 4 days * $80,000/year = $5,120

Total savings $29,440

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