BETTER BUSINESS
Reducing operational expenditure by changing buying decision Cutting OpEx By David Palmer Stevens, SI Manager EMEA, Panduit
Introduction 2013 is going to be a challenging year for anyone involved in the Data Centre business from design to operations. The impact on the physical infrastructure of virtualisation and cloud computing has escalated the importance of specifying the most effective and cost efficient equipment that suits the needs of the business.
David Palmer Stevens discusses the buying decisions that lead to reduced operational expenditure.
Escalating Expenses The very first step in the survival game is to get in front of the ever escalating Operational Expenses. Rather than focussing on cost of deployment, the focus needs to shift to longer term implications: what does equipment cost to maintain and how does it help us to handle the changes occurring within the data centre? Here, we examine why short terms gains rarely equate to
long terms savings and, why, in order to reduce the operational expenditure of Data Centres we need to change the buying decisions.
Vertical Slope Today we are on the near vertical slope of the rate of technology change, and planning for a Data Centre to last the next 10 years is near-on unthinkable. At the same time, the costs of running a data centre are spiralling and an IDC report stated that we are reaching the point where around 70 percent of IT spend goes on the Power and Cooling of the data centre itself. If we add to this the costs of
supporting all the ‘Adds, Moves and Changes’ that are an everyday occurrence in a Data Centre, then we are fast approaching the point where the ongoing Operational Expenses have
the potential to consume 100 percent of the entire IT budget. This means that those responsible for the procurement and running of the data centre can spend their lives in maintenance mode, unable to look forward. However, the reality is that, ‘Moore’s Law’ - in which Moore observed that chip densities were doubling every 24 months - is relentless and organisations need to continually renew and adapt so that they avoid becoming stuck in the ‘maintenance’ money pit where resources are simply swallowed on operation rather than improvement.
Reclaiming IT Decisions To avoid this, organisations have to break free of systems whereby purchasing departments second guess the buying needs of their IT departments. It remains quite common
To survive as affordable resources, data centres must accommodate Moore’s Law. 36 NETCOMMS europe Volume III Issue 3 2013
www.netcommseurope.com
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