Practical IT Research that Drives Measurable Results Renovate the Data Center Info-Tech Research Group 1
Executive Summary • 33% of organizations will complete a data center renovation in 2010. Info-Tech survey results found that 18% of IT leaders have never completed a data center renovation project before. • Data Center renovation projects extend the life of the data center, but can be costly. The median cost per square foot for data center projects are as follows: • Power Renovations - $75/Sq. Ft • Cooling Renovations - $87/Sq. Ft • Standby Power Renovations - $150/Sq. Ft • Fire Protection Renovations - $30/Sq. Ft • The average of the data center facility when organizations renovate is 7. 5 years. A consistency with the typical lifespan of a data center 7 -12 years. • 61% of total survey respondents indicated that Green. IT was NOT a driver in the organization’s renovation project. • 88% of organizations cited they would spend more time and effort on documenting and identifying facility requirements for initial project scoping. Organizations can prevent scope creep by conducting the necessary project planning up front and identify requirements and the effect that the renovation project will have in all areas of the data center facility. • Early internal efforts to create a budget and facility requirements yields better cost and project outcomes when the data center renovation begins. • Selecting contractor or mechanical engineer is one of the most important first steps in a complex data center renovation. Organizations must ensure the contractor selected has experience specifically in data center renovation. Info-Tech Research Group 2
33% of enterprises will renovate the data center in 2010 to extend the life of the existing facility. The average of the data center facility when organizations renovate is 7. 5 years. A consistency with the typical lifespan of a data center at 7 -12 years. 20+ Years 16 -20 Years Never Renovated 20% 10 -15 Years Common Drivers for Data Center Renovations Include: ü Accommodating for organizational growth ü Replacing/updating old equipment for better efficiency ü Lack of budget to build a new facility ü Implementation of virtualization /high density environment (trigger for additional cooling) ü Need for additional power capacity ü Need for additional or more efficient cooling systems ü Need for additional standby power capacity 29% 20% 6 -9 Years Under 5 Years 18% of Info-Tech survey respondents had never completed a data center renovation project. Info-Tech Research Group ü Replacement of old standby power equipment (i. e. batteries) ü Additional physical space requirements to additional racks ü Addition of fire suppression system or additional fire protection 3
Renovations should be considered throughout the lifecycle of the data center to prolong its life and avoid additional cost. Cooling, and Standby Power data center renovation projects double in cost per square foot than other projects • • Power $75/Sq. Ft Cooling $87/Sq. Ft Standby Power $150/Sq. Ft Fire Protection $30/Sq. Ft Renovation projects completed earlier in the data center lifecycle are generally less expensive projects. Info-Tech Insight: Financial Services and Healthcare have the oldest Data Centers when a renovation project was completed. 12+ years for Financial Services and 15 years for Healthcare. Info-Tech Research Group 4
Data center renovation projects vary in cost depending on facility age. $251 K+ Facilities over 20 years old were more likely to spend over $251 k on data center renovation projects. Power Renovations 38% Under 5 years 6 -9 years 8% 15% 6 -9 years 8% 10 -15 years 15 -20 years 20+ years 33% 63% 33% 25% Fire Renovations 8% 22% 17% 29% 14% 43% 44% 43% 25% 75% 33% 40% Info-Tech Research Group < $10 K 23% 13% 67% Cooling Renovations Under 5 years 31% 29% 20+ years $11 K to $50 K 8% 33% 15 -20 years $51 K to $100 K Standby Power Renovations 33% 29% 10 -15 years $101 K to $250 K 100% 20% 5
Green. IT is NOT a major driver for data center renovation projects, it is a result. Extent that Green. IT initiatives drive data center renovation projects 100% 61% of total survey respondents indicated that Green. IT was NOT a driver in the organization’s renovation project. • 13% • This indicates that Green. IT is not a major driver in the decision to renovate, it is a consideration once the decision has been made to renovate. 26% 61% Not a Factor Somewhat a Factor Significant Factor Total http: //www. google. ca/images Info-Tech Insight: Manufacturing was the only industry by which 33% of organizations said that it was in fact a significant factor to their data center renovation project. Info-Tech Research Group 6
Take a proactive approach to data center renovations by identifying, budgeting, and tracking potential renovation projects in advance. • Use Info-Tech’s “Data Center Annual Review Checklist” to help identify future data center renovation requirements. • This checklist will help IT: • • Identify future projects Assess the current state of the data center Assess future requirements for the data center • “ ” Our company runs through a three-year planning process so they give us an idea of new equipment or new requirements that will be coming into our Data Center so we can actually project when we're reaching one of our thresholds which will require us to do additional work on the Data Center infrastructures. All that goes into our planning process for what we're going to do the next year to our Data Centers. - Source, VP Service Management Delivery, Healthcare Info-Tech Research Group 7
Diagnosing the renovation project upfront can save time & money The shin bone is connected to the knee bone… • • • “ The Data Center has a complex relationship between many parts, where a change to one part can affect the whole. 13% of enterprises targeted a single item that needed upgrade or refresh and did not account for the cascading impact it had on the data center in the project plan or budget. This created significant cost overruns of up to 22%. As a result, 88% cited that they would put more emphasis on initial project scoping as an area to improve the renovation project if they were to do it over again. Power Fire Cooling I’ve done several renovations, so a lot of the up front work has subsided. I’ve just become a very good planner. The planning is absolutely critical. I mean, if you don’t do the planning, you’re going to have a disaster. - Source, IT Operations and Infrastructure Manager, Mining Info-Tech Research Group ” Ventilatio n Power Distribution Physical Layout Standby Power 8
Organizations would have put more time and effort into indentifying facility requirements and better project management practices to make their renovation successful. Looking back on the renovation, organizations would have put more effort into the following categories. Learn from others mistakes and get the project done right the first time. 8% 10% 17% 17% 27% 43% Less Effort 18% 27% Same Effort More Effort 41% 52% 44% 51% 41% 54% 49% 31% 39% 32% 39% 31% 19% More time & Better effort project identifying management facility practices requirements Info-Tech Research Group Hiring a contractor in earlier stages More emphasis on project scoping Communicate the impact to stakeholders Emphasis Budget Researching monitoring checks at & accounting Contractor each stage of for Municipal management the project red tape & performance 9
Accurate power estimates for current and future needs. Get your requirements down first • Use the, “Data Center Power Requirements Calculator, ” to estimate the facility requirements when renovating power in the data center. • Accurate estimates of facility requirements are a critical input to the project’s budget. • Use this tool to estimate: • Server power load • IT equipment power load requirements • Future power load • Refer to “Data Center Facility Requirements Estimations At-a-Glance” for more detailed guidance on requirements gathering. Info-Tech Insight: Monitoring power at the server level gives organizations the ability to measure, report, and monitor energy use in the data center. Invest in automated tools for more accurate input to highlight capacity issues before adding new devices. Info-Tech Research Group 10
Estimate current and future cooling requirements to produce a more accurate budget. • Use the, “Data Center Cooling Requirements Calculator, ” to estimate the facility requirements when renovating cooling in the data center. • Accurate estimates of facility requirements are a critical input to: • Include in cooling renovation budget • Determine current and future cooling requirements • Determine size of cooling load and number of units required to support the load. • Refer to “Estimating Data Center Cooling Requirements: Just the Right Amount of Cool” for more detailed guidance on cooling requirements gathering. Info-Tech Insight: The implementation of virtualization is often a trigger for a cooling renovation. High density environments require highly efficient precision cooling. Info-Tech Research Group 11
Estimate current and future standby power requirements to understand renovation project requirements. • Use the, “Data Center Standby Power Supply Requirements Calculator, ” to estimate the facility requirements when renovating cooling in the data center. • Accurate estimates of facility requirements are a critical input to: • Include in standby power renovation budget • Determine current and future standby power requirements • Plan and scope the standby power renovation project • Refer to “Need Backup? Estimate Data Center Standby Power Requirements” for more detailed guidance on cooling requirements gathering. Info-Tech Insight: When calculating standby power requirements in relation to power capacity, it is important to account for the affect and requirement on additional power capacity for charging UPS systems in case of an outage Info-Tech Research Group 12
Non-mandatory fire protection is expensive and must be looked at through the lens of risk and cost of downtime. • The number one consideration when evaluating fire protection options is life safety in the data center. It is mandated by law and non-negotiable. • Non-Mandatory Solutions Must be Looked at $35. 77/sq. ft. Through the Lens of Risk and Cost of Downtime. While clean agents can be very effective in suppressing fire and protecting property, they are also expensive to install and maintain and, may be toxic. • Renovating to add a fire suppression system can incur additional costs if the system cannot be retrofitted. Explore the existing system to gage level of work required to install. +341% $8. 12/sq. ft. Mandatory Fire Protection Additional Fire Protection Info-Tech Insight: Clean agent systems are often added based on the common misconception that water will damage data center equipment. While this is true for data center equipment powered up, equipment powered down by EPO is less likely to be damaged by water. Info-Tech Research Group 13
Renovation of Fire Protection & Suppression systems is not a DIY project. Procure a qualified fire engineer. Use the “Fire Protection & Suppression Engineer Selection Criteria Checklist” to aid in the process of procuring a fire engineer for the data center’s renovation of fire protection and suppression systems by selecting the criteria that are relevant to the organization. • • Renovating fire protection and suppression systems in the data center requires the expertise of a fire engineer to ensure the protection of property, continuity of business and most importantly life safety in the data center are upheld. Establishing selection criteria for a fire engineer is important to ensure that the vendor is adequately qualified for your data center renovation project. Info-Tech Research Group 14
88% of organizations would spend more time and effort documenting and identifying facility requirements for initial project scoping. Initial planning for the data center renovation project can be critical to its success. Complete this project charter before the project commences to identify a clear and defined scope, decision rights, potential risks, and receive executive sponsorship. Info-Tech’s “Data Center Renovation Project Charter” Will Help You: § Define the scope of the renovation project. § Identify key success factors and assess risk. § Provide a project approval for business leaders to sign off on. § Reduce external costs of the project overall. “ A general rule in previous expansion projects [I’ve been involved in] and where it involves moving of IT equipment, usually requires anywhere from four to six months pre-planning and scoping. Source, Consultancy Manager, Information Technology Services Info-Tech Research Group 15
49% of organizations said they would implement better project management practices for the renovation project. IT leaders tasked with renovating a data center often experience scope creep and budget issues in later stages if initial planning, design and requirements are not properly outlined in beginning stages of the project. Planning and monitoring the data center renovation project and understanding what the project involves. Start the project off on the right foot by using Info-Tech’s pre-populated “Data Center Renovation Project Planning & Monitoring Tool” to: § Plan for time and resource requirements. § Communicate project timeline and milestones. § Track and monitor project performance. Info-Tech Research Group 16
Regular budget checkpoints keep the project on track and eliminate surprises. Info-Tech’s “Data Center Renovation Budget Tool” enables the organization to account for all costs in order to arrive at an accurate estimate for the renovation project. Provides a complete example for a large data center involving multiple facets of renovation in the facility that you can tailor to suit your situation. Factors all necessary renovations, repairs, and upgrades related to the renovation project. Use the tool determine ongoing operational costs as well as one time costs for the renovation project. Track and measure financial progress by comparing estimated budget to actual costs. “ If someone knows that you are renovating a datacenter, then the first thing that they want to do is, “Can we just take the opportunity to do this? ” So the scope has crept. Luckily, the budget has crept with it, but it just introduces complexity. I started around about $2. 6 million, and I’m now up to about $4. 9 million. – Source, Consultancy Manager, Information Technology Services ” Info-Tech Research Group 17
Project complexity demands contractors and mechanical engineers that match enterprise skill, approach and cost requirements. Selecting a contractor or mechanical engineer is one of the most important first steps in a complex data center renovation. Interviews give a “human feel” to supplement RFP response numbers. • Only interview contractors that make the enterprise’s short list. • When meeting with the potential contractor, use Info-Tech’s “Data Center Renovation Contractor Scripted Interview” to ensure consistency of questions and answers. • A scripted approach also ensures that the contractor possesses the appropriate competencies with Data Center engineering, power sub-systems, cooling sub-systems, and physical layout and design that match the renovation project requirements. Info-Tech Research Group 18
A common scorecard makes the contractor selection process transparent. • Each contractor should be evaluated based on a standard scoring method to ensure accuracy and fairness. • Use Info-Tech’s “Data Center Renovation Contractor Scripted Interview Scorecard” to show senior management why a particular contractor is the best fit and ensure you account for the following important aspects: • Data center renovation experience of similar size, scale, and complexity • Project management practices • End user requirements processes • System execution and management practices • Support during and after the renovation Info-Tech Insight: The use of a common score card for contractor selection is frequently a requirement for Government procurement or contract award processes. Info-Tech Research Group 19
Reference checks can help to uncover contractor details that may otherwise be missed. Failing to do reference checks could lead to choosing a contractor that looks good on paper but is bad in practice. Use Info-Tech’s “Data Center Renovation Contractor Reference Checklist” to: Validate information provided from contractor proposals, such as project management and communication styles. Understand how contractors responded to any problems. Understand areas that went smoothly and areas that were of concern. Info-Tech Research Group 20
Appendix 2: Survey Demographics
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