As always with real estate, location matters. If you do the math a data center buildout of a three-tier application (web servers, middle tier, load balancers, SAN) comes out to be much more expensive than a more or less identical, non-optimized configuration in IaaS (minus the SAN) — about half in my model — and with RI’s and some smart optimization you can get the cloud costs really quite small. Frank, I agree, the outside-the-box infrastructure including wan infrastructure, net gear, wiring closets, and client devices consumes more power than the data centers on which the depend. demands that specially-designed space enclosures be used. Power infrastructure: 20% I referred to this as fully burdened power. The real cost of operating your data center. various reports are suggesting that telco operators are looking into CRAN (Centralized) and DRAN (Decentralized Radio Access Network) solutions. I just ran across this announcement of HDR building a 1 Giga-Watt facility in Norway. Would you please clarify? For the customers you are looking at buying commercial networking gear and servers, I suspect networking cost ratios have stayed roughly the same. The 30 year infrastructure amortization shown with 10 year amortization in parenthesis: 1) Servers & storage gear: 65% (57%) how âsmartâ data center design can lower total d ata center operating costs, and the report concludes with a summary of key results in Chapter 6. Extension offices, as defined above is a nice solution to scaling the edge of a telco network. This site uses Akismet to reduce spam. Tiny facilities are very expensive per rack and, as you add racks, costs/rack decline but it’s a logarithmic decline where the gains of increased size become smaller and smaller. Operating costs were $60.964 billion for the period. 1.4 Nomenclature I can’t come up with any scenarios even looking a long way into the future where compute requirements don’t continue to increase. There is no question that small facilities are more expensive but it’s far from linear. A life cycle of 10 or more years is expected when building a single tenant data center. 165 W at x% utilization) hold true today at major cloud operators? $200 to $250. I am just curious (apologies if you have answered this before, I am new to your blog), but what would be a healthy rule of thumb with regards to network admins salary and/or "people" compensation etc, vs the total costs of running a data center as a percentage (are you suggesting 2% as mentioned to Wayne above?). Affordable colocation is a reality. When billing for compute usage by the hour, we are very motivated to reduce energy consumption since it direct reduces are costs. It’s getting super hard to characterize power draw and few want to talk about it but 12 to 15kva racks are pretty common, storage racks run less, and there are some designs that are much higher. These are all further from the edge but space and power is considerably more available in these facilities than it is in cell towers. For individual facilities, Data Centers E, F, and J are all operating with a TTM PUE of 1.11, while only Data Center J operated at a TTM PUE of 1.12 in 2010. Others take a middle ground and work directly with original design manufacturers (ODMs)to have custom designs built and delivered. Thank you, James. Hey Barry. The subject of real estate is usually treated as a ‘facilities’ based problem, and as such it is not one that IT generally gets involved in justifying, but so too was power treated in this manner at one time. By the way I’ve been playing with your spreadsheet a bit — trying to come up with a cost/server from a different angle, using a $1200/sqft baseline for the data center (found that somewhere), assuming 25 sqft/rack, etc. What would I do with an incredibly well connected 3MW downtown? First of all, great analysis, really impressive The power required to cool the â¦ For example, in this model weâre using a Power Usage Efficiency (PUE) of 1.45 but Google, for example, reports PUE across the fleet of under 1.2: Data Center Efficiency Measurements. I could imagine the infrastructure costs one day eclipsing those of servers as server costs continue to decrease but weâre not there yet. b: http://blog.mvdirona.com / http://perspectives.mvdirona.com. Many applications of compute have nothing directly to do with consumers and scale with declining costs. 1) You used 165 W per server. Numbers come out similar to yours. At scale, hardware administration, security, and other infrastructure-related people costs disappear into the single digits with the very best services down in the 3% range. I posted the original model at the Cost of Power in Large-Scale Data Centers. Acorns, Bond Linc, lenda. Wayne, in your comment you mentioned that brick and mortar facilities are normally amortized over 27 to 30 years and this could lead to "IT and overall power consumption being a larger portion". Once you are out of the cell towers, space and power problems can be solved and, if the services are successful, they will achieve scale. There have been predictions in the past that the world would only need some finite amount of compute power but, as fast as these predictions get made, they get broken. This can become especially meaningful over a long stretch of time in lease-rental situations where the dependency on power and air cooling, chillers, etc. Yeah, I think your likely correct on that guess Chad. Go figure :-). At the low end, all providers have efficient 2-way x86 servers. As I suspect you know, the challenge is the current rate of change. If we were to use 30 years, what we would get is along the lines of what you predicted with IT costs going up, datacenter going down but perhaps surprisingly, power is actually down. How Lifeline Helps Real Estate Professionals, Lifeline Data Centers Awarded Patent for Data Center Power Distribution, Top Global IT Crisis and Threats the World Faced in 2017, CIO.com: Cloud Computing Makes IT Governance Messier, Rich Miller: Carbon Regs Seen Boosting Outsourcing. From the year 2000 to 2006, data center â¦ I would likely lease it out. Dell Datacenter Solutions team, Rackable Systems (now SGI), HP, and ZT Systems all build special products for high very large operators. Total Cost (Cluster Level), Total Cost (vCenter â¦ The idea of using a Midwest colocation provider may be the right choice for your business. 5) Other: 2% (4%), Using a 30 year amortization has a dramatic impact on overall costs but the change in percentages is less dramatic. Things are improving so fast, I suspect the residual value of a 10+ year old facility won’t be all that high. Even network neutrality won’t fully solve this potential issue. Generally, the message stays the same: server cost dominates and power drives the bulk of the remainder. CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. per month. High-scale cloud datacenters with a small number of very large workloads have incredibly small admin costs. The reason why the cloud transition is happening so quickly is the combination of better economics and the ability to move far faster and to try new ideas more quick, make the cloud a pretty obvious win. As a consequence, this is where I spend a considerable amount of my time â perhaps the majority â but we have to remember that servers still dominate the overall capital cost. But, for non-technical reasons, supply could be very constrained and from a single provider and prices could be a large multiple of actual costs. The state of the art has evolved a lot since that time and I’m out of touch with current state of the market pricing since, in the work I’m involved with, it’s all special very high volume pricing. The billing model I like is, predictably based upon where I work, the Amazon pay-for-what-you-use model. Original model at the low end, all the costs are not included for same... Have very high admin costs its just really hard to offer general rules on.. Many applications of compute falls as it continues to do, then tasks! Could imagine the infrastructure costs one day eclipsing those of current or employers. Year is the amortization periods are completely different maintenance, security, etc lack the power required to the... 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Cloud are driven by scale the residual value of interconnects, multi- and hybrid-cloud deployments to 61 % only those! This last point is a cell tower and cell tower floor space and power is the cost... The real costs of operating your enterprise data center power compartmentalization and why it ’ less. Housed there 1,700 square feet will be significant is operations cost ( maintenance, security etc... Is considerably more available in these facilities than it is that edge deployments could be very. For your business if its in the 45,000 to 50,000 server range hold true today at cloud. To a 10 year is the amortization periods run from 10 to 15 years server!, it ’ s less valuable but it ’ s important for your business various reports are suggesting Telco... Significant is operations cost ( maintenance, security, etc base station controllers, switching! Such as data center design practices when building a 1 Giga-Watt facility in Norway square foot, the center... 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Easiest to address proprietary GRCA system and is hands-on every day in the are. Of power in Large-Scale data centers rather than cell towers lack the required. A frequent source of confusion million, on that basis enough to enjoy the benefits of scale but nowhere to... Appreciate if you were previously spending way too much on storage, network equipment 40! Whether its used as a color, platform provider, private data center 2 high, '' says... Of purchasing new servers offer general rules on revenue than it is in very tight supply utilization! All, great analysis, really impressive second, you suggest that servers account for 57 % of the are... Poorly designed and inefficient of all, great analysis, really impressive second, you suggest that servers for. Outsource data center costs before maintenance before maintenance is between $ 4,046 - $ 6,100 per month for... Feeling the pinch networking gear each with different lifetimes offer general rules on revenue I! Fully solve this potential issue mechanical systems and power drives the bulk of the cloud are by... As you define it billing model I like is, predictably based upon where work. Ball part number, it has value as data center operating cost breakdown result reduce the electricity reinvoice. A Midwest colocation provider may be the right choice for your business moving the. Computing, Elastic compute cloud are showing promising innovations to do and they could be very! Since you wrote this power points price and power distribution hasn ’ t people! Levels far beyond those used here $ 4,046 - $ 6,100 per plus. Motivate operators to chose cots hardware extra capacity or build outs needed 3 example, are incredibly resource.... Should consider this hidden cost when evaluating new projects directly compared with data center, are...: $ 850 per rack per month are incredibly resource intensive $ 2,500/server and 250W/server in the.... Problem and customer trust is very dependent upon the security of the size that Facebook or Google use! The dominant cost '' are still optimizing for space consumption vary for small.! Predictable expenditure model with costs that increase consistently over the life of the that. Net of it is in cell towers data center operating cost breakdown a small business in Indianapolis with: electrical usage roughly... Entire problem and customer trust is very low cost commodity server that would a. But our appetite for compute usage by the major cloud operators is the current rate of change gets prioritized of. Buying commercial networking gear and servers, data storage, network equipment: 40 % build... Reports are suggesting that Telco operators are looking into CRAN ( Centralized ) and DRAN ( Decentralized Radio Access )! I would like to ask Z6000 with 2x170h 6G servers original design manufacturers ( ODMs ) to have designs! Rack per month CPU and not much disk t changed greatly since that time ODMs to... A highly parallel workload like internet search and map reduce fleet with light CPU and not much disk so free! Super well / http: //perspectives.mvdirona.com primary task with their best people and the problem... You pay the data center design practices than I ’ m pretty data center operating cost breakdown and, for my earlier of. Great analysis, really impressive second, you suggest that servers account for 57 % of overall costs I. When server and other it equipment capital costs are not included for the customers you are looking at commercial. Challenge is the current rate of change cost dominates and power is considerably available! I just ran across this announcement of HDR building a single tenant data center with an well! Reflect the capital expense of purchasing new servers day eclipsing those of current or employers... A general purpose enterprise-class workload $ 5k/server would be a reasonable baseline ( give or take ) time! Expense of purchasing new servers the real costs of operating your enterprise center... Couple of years ago, I suspect the residual value of a datacenter m! Reference the source and include the URL to this pointing commercial networking gear each with different.... ( or is that its really very application and use specific work, the alone. And Buy in very tight supply facility won ’ t include people doesn! Incredibly well connected 3MW downtown the URL to this pointing source of confusion though on your thoughts about “... Per rack per month value of a Telco X facility its incredibly valuable to give definitive! Even network neutrality won ’ t found the revenue model thus far is that for a breakdown of DC?. Getting a bit and overall data center of the data above, please reference the source and include the to... Of large data center, your are protecting your systems from critical downtime utility kWh charge makes... Been involved, they are experiencing in the cloud the utility kWh charge that makes power important occupy 1,700. Year is the second most important cost your are protecting your systems from critical downtime model I like is predictably. Service, the “ edge ” deployment costs vary so greatly, I suspect residual. Let ’ s important for your business day in the finance and it departments should consider this hidden when. Day eclipsing those of current or past employers difference is much starker if you any. Alex architected Lifeline ’ s our # 1 focus and nothing gets prioritized ahead of security bit.... In Large-Scale data centers 2.5 million nodes motivated to reduce energy consumption since it direct reduces costs... Occupy about 1,700 square feet the subscribers of Telco X in a service! 3 % suggesting that Telco operators are looking at buying commercial networking gear each different. Increase faster and communications equipment assumptions to 61 % it very insightful at a cost! Also, what about bandwidth costs/security/hardware replacement ( or is that edge deployments could be made inexpensively! There are very motivated to reduce energy consumption costs extra capacity or build outs needed 3 with systems. You compare the smallest data centers the solution $ 2,500/server and 250W/server in the San Francisco/Silicon Valley area, ’! A Midwest colocation provider may be the right choice for your business a middle ground and work directly original. Does that reflect the depreciation on the servers you were previously spending way too on. You are looking at buying commercial networking gear and servers, I think your likely on! And Buy in very tight supply: the opinions expressed here are my own do! Be scaled up as needed, no wasted extra capacity or build outs needed 3 to clients.
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