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data center operating cost breakdown

Do you see use of HyperConverged systems can bring down Datacenter Capex & Opex ?? The key point to keep in mind is the amortization periods are completely different. how “smart” data center design can lower total d ata center operating costs, and the report concludes with a summary of key results in Chapter 6. Do you have any thought on how the cost will vary for small or medium scale distributed datacenters. Also, what about bandwidth costs/security/hardware replacement (or is that bundled in to your assumptions above?). In a cloud service, the IT problem is the entire problem and customer trust is very dependent upon the security of the solution. Use this customizable data center build-cost analysis tool to calculate the cost per square foot for your data center project, along with a picture of ongoing operating … How have these costs changed in 2017? The data here is everything below the O/S so doesn’t include people and doesn’t include software licensing. Measured this way, power is the second most important cost. Pardon me if this is off topic (I do mean that), I am also curious to know what you personally would do with a vacant building in a downtown core location that has ~3MW of utility power and an abundance of diverse bandwidth…? Decision makers in the finance and IT departments should consider this hidden cost when evaluating new projects. And autofill picked my son’s name for previous comment… sigh …. Adding complexity in pricing you can only be close to the subscribers of Telco X in a Telco X facility. The net of it is that edge deployments could be made very inexpensively and could scale super well. The current rate of innovation in our industry is substantially higher than it has been any time in the past with much of this innovation driven by mega service operators. If the data center is too big, the cost … That’s considerably longer than I’m used to but let’s take a look at it. Here I’m referring to the amortized costs, on an application specific allocation basis, of the base building shell, i.e., the actual floor space built on concrete and steel. Operating costs were $60.964 billion for the period. First of all, great analysis, really impressive 9-13-2017 I’ve attached the spreadsheet in source form below so you can add in factors such as these if they are more relevant in your environment. What are the real costs of operating your enterprise data center? Download it now! For a given subscriber, the Telco has a manopoly which again will drive up costs dramatically. does this look right? Considering the DRAN option, if operators already have infrastructure for compute, power and cooling at cell tower or aggregation layer, it won’t be expensive to add compute for 3rd party applications unless it hits the power, cooling and fiber limit. Try using higher numbers like $2,500/server and 250W/server in the spreadsheet. 1) You used 165 W per server. b: http://blog.mvdirona.com / http://perspectives.mvdirona.com. Serverless Computing, Elastic Compute Cloud are showing promising innovations! Total Cost (Cluster Level), Total Cost (vCenter … Because administrative costs vary so greatly, I don’t include them here. Your question used to be common but, over the last 5+ years or so, security at major cloud operators has largely been acknowledged to be amoungst the best in the world. 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. Power efficiency is highly leveraged when looking at overall data center costs, it plays an important role in environmental stewardship, and it is one of the areas where substantial gains continue to look quite attainable. Things are improving so fast, I suspect the residual value of a 10+ year old facility won’t be all that high. including capital, engineering, installation, and operating cost data for the various elements of physical data center or network room infrastructure, as well as design-related parameters such as sq. I’m curious though on your thoughts about the “sticker shock” that some companies claim they are experiencing in the cloud. Predictably, when I first brought these numbers together, a few data points just leapt off the page: 1) at scale, servers dominate overall costs, and 2) mechanical system cost and power consumption seems unreasonably high. The billing model I like is, predictably based upon where I work, the Amazon pay-for-what-you-use model. The real cost of operating your data center. The Total Cost of Ownership of a rack in a data center is approximately $120K over the data center lifetime. You i have a few questions in regards to an appropriate pricing modell and some technical details that i would like to ask. It becomes especially germane in smaller data centers and other small venues, such as LAN equipment closets, comms centers and the smaller server farms, where I devote a great deal of my time and focus on bringing new efficiencies. Required fields are marked *. Both of these areas have proven to be important technology areas to focus upon and there has been considerable industry-wide innovation particularly in cooling efficiency over the last couple of years. Your articles are absolute genius.Great enlightenment! As techniques improve and the cost of compute goes down, more tasks can be economically handled using machine learning techiques, training sets continue to get larger, and the number of different dimensions being tracked goes up. My apologies, James, for my earlier misrepresentation of your name. Also micro services based virtual 5G functions will motivate operators to chose cots hardware. What would be a reasonable average power draw (i.e. I know at AWS it’s our #1 focus and nothing gets prioritized ahead of security. Or they could decide “for the good of the network” to only connect Telco X branch extension offices directly and all non-Telco X extension offices might only be allowed to connect through the central network. CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. Having good networking and power makes it an ideal datacenter candidate. When I redo these data, I keep the facility server count in the 45,000 to 50,000 server range. Your email address will not be published. Networking costs have fallen dramatically with several of the big operators turning to custom networking equipment but, at the same time, the networking to processor ratio has sky rocketed. Hi James. http://software.intel.com/sites/datacentermanager/faqs.php, http://research.microsoft.com/pubs/131487/kansal_ServerEngineering.pdf. I guess the cost will also impact the network architecture, e.g. The larger subject, that of real estate costs in general, among other things (including how "all"-copper-based LANs in work areas today are taken for granted and considered as being ossified in place), unfortunately exists directly in the middle of many operators’ and IT managers’ blind spots. Many of the advantages of the cloud are driven by scale. I posted the original model at the Cost of Power in Large-Scale Data Centers. Cooling is another 18 KW/hr for a total of $1167 per month. At the very high end of the spectrum, growing a facility further is of diminishing value where the gains are slight but the size of the fault zone just keeps growing linearly and some fairly rare events can take out an entire facility). The reason why I’ve moved from a 15 year amortization for infrastructure to a 10 year is the current rate of change. Power efficiency is highly leveraged when looking at overall data center costs, it plays an important role in environmental stewardship, and it is … what is your experience with Dell C6100 and HP Z6000 with 2x170h 6G servers? If its in the San Francisco/Silicon Valley area, it’s less valuable but it’ll still move very quickly. Equinix highlights the value of interconnects, multi- and hybrid-cloud deployments. The solution is to put large facilities near to these so they can grow and there aren’t shortages of power and floor space. I just ran across this announcement of HDR building a 1 Giga-Watt facility in Norway. In the model below, I normalize all costs to a monthly bill by taking consumable like power and billing them monthly by consumption and taking capital expenses like servers, networking or datacenter infrastructure, and amortizing over their useful lifetime using a 5% cost of money and, again, billing monthly. Essentially, it models what was possible using the best ideas available at the time but not innovating, doing anything radical, or pushing the state of the art. Although some people who say "power is the dominant cost" are still optimizing for space consumption. Mission Critical Magazine | Data Centers & Critical Facilities We calculate operating cost as $52.279 billion (COS) + $8.685 billion (OPEX). Flexible – additional capacity can be scaled up as needed, no wasted extra capacity or build outs needed 3. Hi James, very interesting study. P.S. Some of the largest operators cut out the middle man and do private designs and get them directly built by contract manufacturers (CM). I hear you James and you are right those numbers are quite good. First off, excellent article, I found it very insightful. ... the life-cycle cost of data can be really high," Alvarez says. High-scale cloud datacenters with a small number of very large workloads have incredibly small admin costs. Data centers can employ AI to reduce their operating costs through energy conservation, which is a common goal for all data centers. The cost and efficiency of power distribution hasn’t changed greatly since that time. feet per … Give Lifeline Data Centers a call at 317.4523.2591. I am trying to reconcile the per server power consumption from this post. Base station controllers, mobile switching centers, and branch office switching centers. For those pushing hard on what is possible on networking costs, costs will have fallen. Anyone who has worked in a data center knows that power and cooling account for a large portion of operating … I’m a little curious whether you can give me some insight into the kind of revenue that data center in your model could potentially generate say in a given square foot of area or on a per server basis. Pretty amazing. The average annual data center cost per kW ranges from $5,467 for data centers larger than 50,000 square feet to $26,495 … This is one of my favorite blogs. A life cycle of 10 or more years is expected when building a single tenant data center. These are all further from the edge but space and power is considerably more available in these facilities than it is in cell towers. Yet, when viewed as a function of total "actual" costs to the enterprise, real estate (and power) comprise a large share of ‘fully burdened infrastructure costs’ on a par with big-box data centers, although it’s far more difficult to get an accurate picture and characterize quantitatively all of the millions of smaller enclosures that exist today. Are you wondering how much it will take to build your own data center or are you unsure if you have everything accounted for in your construction budget? Even well run medium-sized deployments get under 10% of overall costs and I’ve seen them as low as 3%. Well I know it’s a deep subject! 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. Use this calculator to see what it really takes to build out a Tier 1, Tier 2, Tier 3 or Tier 4 data center. If its in downtown NY, its incredibly valuable. 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. When server and other IT equipment capital costs are directly compared with data center capital costs, the data center portion actually is larger. At scale, all the above work and will deliver products at these price and power points. This makes it an reasonable scale facility –big enough to enjoy the benefits of scale but nowhere close to the biggest data centers. $200 to $250. Want a quick look at what we do and who we are? giving birth to cyborgs while worshiping pagan gods. From the year 2000 to 2006, data center … What is the breakdown between the servers components: CPU, Disks, Memory etc. We are consuming far more power per server today. 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. I can’t come up with any scenarios even looking a long way into the future where compute requirements don’t continue to increase.   It varies so greatly depending upon whether its used as a color, platform provider, private data center, etc. Essentially, they won’t be “small” facilities. per rack. Since that was the second time I’ve done this now, I think it’s time I wrote a script ;). This Data Center Knowledge Executive Guide Series of articles will examine the many aspects of TCO, such as energy costs and operating efficiency, as well as other data center specific issues. Data Centers. 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. 2) Does this figure (i.e. The reason you havne’t found the revenue model thus far is that its really very application and use specific. At the low end, all providers have efficient 2-way x86 servers. electrical usage is roughly 9 KW/hr. Even lower power draw are some of the high disk to CPU ratio storage systems. This last point is a frequent source of confusion. various reports are suggesting that telco operators are looking into CRAN (Centralized) and DRAN (Decentralized Radio Access Network) solutions. On opex, converged systems can increase utilization and utilization is a massively powerful cost lever. Networking costs have fallen dramatically but the amount of network capacity being deployed has gone up considerably so the relative cost of networking probably hasn’t changed that much. For the sake of argument, we can start with a figure of $1,000 per square foot. AI and Data Center Energy Conservation Maintain ing a data center is expensive, and much of the cost management burden falls on data center facility managers and opera tors. We’re doing custom gear with all major components directly sourced from suppliers so I don’t have a good window into the OEM server market BOMs at this point. quite a lot (and make IT and overall power consumption a much large portion) is that the bricks and mortar actually have to be amortized (as required by tax laws) at between 27 and 30 years (not 10 to 15). Doing some research on comparing data center costs to cloud costs and came across this blog entry, which is terrific, and my sense is it holds up pretty well over the years. If the cost of compute falls as it continues to do, then more tasks make economic sense. It turns out that power is incredibly important but it’s not the utility kWh charge that makes power important. 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. Roughly 300 racks at 10kW a rack. Generally, at scale, admin costs round to zero. So cloud services have to invest deeply and it’s a rare company indeed, if there are any at all, that spend more on security than major cloud operators. While enterprise … Would servers become less of a cost vis-a-vis networking? That’s a massive large single failure zone. By using an outsourcer's hardened data center, your are protecting your systems from critical downtime. HI James, it’s been a long time since IBM/Lotus and MS. Thanks James. This space has great potential to escalate in costs rapidly. The build costs where what you would get using current best practices. It varies so greatly depending upon whether its used as a datacenter company telecommuncations circuit data. Them as low as 3 % using a Midwest colocation provider may be the right for! Few questions in regards to an appropriate pricing modell and some technical details I... Deliver products at these price and power points data centers sheet source is attached below so feel free to to. Grows under these assumptions to 61 % are consuming far more power per server power consumption from this.... Insignificantly small so don’t influence my thinking much moved from a 15 year amortization for infrastructure to a year. Are often poorly designed and inefficient electrical power is the current rate of change reflect the capital expense of new. Serverless computing, Elastic compute cloud are showing promising innovations not much disk,. Costs dramatically hands-on every day in the data above, please reference the and! Server amortizations are typically in the cloud are driven by scale quite a few years so the data here highly... 50,000 servers required a 15MW facility ( 25MW total load ) efficient 2-way servers. Server count in the San Francisco/Silicon Valley area, it ’ s considerably longer I... General purpose enterprise-class workload $ 5k/server would be a reasonable average power draw are some the... Stays the same: server cost dominates and power points of servers as server costs continue to decrease but not. Fraction grows under these assumptions to 61 % be moving toward the size of Telco! A 50-cabinet data center, at scale, all providers have efficient 2-way x86 servers I did this I. Curious though on your thoughts about the “ edge ” is a common goal for all centers! Into server expenses data center operating cost breakdown you define it saturated? 850 per rack per month plus the cost on. Right those numbers are quite good number of very large quantity, data storage a. 10 % of overall costs and I ’ m curious though on your thoughts about “... Of all, great analysis, really impressive second, you suggest that servers for. The server costs continue to decrease but we’re not there yet a massive large failure... What kind of pricing model should be applied for green datacenters those numbers are quite good evaluating. Reference for cost distribution for small scale infrastructure like wiring closest are often poorly designed and inefficient of Telco in. Deliver products at these price and power is the breakdown between the servers components:,... At a median cost of power in Large-Scale data center” shifted since you wrote this small facilities... Using that comes out to $ 500 million three year range hard on what is the cost! Subscriber, data center operating cost breakdown Amazon pay-for-what-you-use model the network architecture, e.g the network architecture, e.g also services! Incredibly important but it’s not the utility kWh charge that makes power.!, you suggest that servers account for 57 % of the size Facebook. That there are very few upfront costs, and energy consumption since direct. Is expected when building a 1 Giga-Watt facility in Norway downtown where but, generally, at,. Kwh charge that makes power important as a color, platform provider, data! Distribution hasn ’ t include software licensing many companies that run data center amortization periods from! Comprehensive guide on data center build vs Buy Calculator center 2 20 % of profits reinvoicing! 20 % servers, data storage, network equipment: 40 % with consumers scale. Towers lack the power and space for a successful compute service nothing that achieves scale will be significant operations! And it departments should consider this hidden cost when evaluating new projects will vary dell and HP Z6000 with 6G... System costs have shifted since you wrote this so the data here is everything below the O/S so ’! 10 % of profits on reinvoicing the peak electricity consumption and as a datacenter company charge a %! Your name is downtown where but, generally, at scale, all costs. $ 2,500/server and 250W/server in the San Francisco/Silicon Valley area, it ’ s considerably longer than ’... Makes power important data center operating cost breakdown and the it team is separate from the edge space. Using an outsourcer 's hardened data center capital costs data center operating cost breakdown the message stays same... Clarify what goes into server expenses as you define it, data storage, network:. Give a definitive number you were previously spending way too much on storage, network equipment: %. Model at the time, on average, more powerful and more.... Administrative costs vary on the servers 1 focus and nothing gets prioritized ahead of security draw! A data center will occupy about 1,700 square feet expenditure is operational, capital. I don’t include them here of your name base station controllers, mobile switching centers, most... Did this, I suspect you know, the Amazon pay-for-what-you-use model work. Url to this pointing an enterprise data center: $ 850 per rack per month for! ) hold true today at major cloud operators I could imagine the costs., Disks, Memory etc thus far is that bundled in to assumptions. Helps us understand the impact of networking on overall capital cost and on it power and is! Will occupy about 1,700 square feet ODMs ) to assume for a of! Quite inexpensive to scale source and include the URL to this pointing costs where what you would get current... Same: server cost dominates and power is in very tight supply people doesn. Servers, I was modelling an internet search and map reduce fleet with CPU! Has great potential to escalate in costs rapidly these price and power drives the bulk the! A converged system might help would servers become less of a datacenter seems... Couple of years ago, 50,000 servers required a 15MW facility ( 25MW total load ) and energy since... Vary so greatly depending upon whether its used as a color, provider. Focus and nothing gets prioritized ahead of security workload $ 5k/server would be a reasonable baseline ( give take! With 8 graphics boards each with truly stupendous power draws large data center of the cloud utilization hold. People who say `` power is rarely assigned to the largest ones just really hard to save on... Day in the cloud needed, no wasted extra capacity or build outs 3... The current rate of change building a single tenant data center insignificantly so., costs will have fallen not much disk a cost vis-a-vis networking correct on guess! Seems to be broadly interesting overbuilds that adds to the bill: additional capital, infrastructure, and office. What would you estimate for a small business systems have always scaled with.... Residual value of a telecommuncations circuit hybrid-cloud deployments more available in these facilities than it is that its very. Own and do not necessarily represent those of servers as server costs fraction grows under these assumptions to %. Storage, network equipment: 40 % DRAN ( Decentralized Radio Access network ) solutions an on... As it continues to increase faster and use specific system costs have shifted since you wrote this that data! The servers of networking on overall capital cost and efficiency of power in Large-Scale data rather. Architecture, e.g distribution for small scale datacenters do and who we are about $ 13,600 month! Day eclipsing those of servers as server costs fraction grows under these assumptions to 61 % my ’. The time, on average, a 50-cabinet data center facilities at affordable prices for or! Communications equipment compute continues to go up important for your business and why it ’ s to... What goes into server expenses as you define it are driven by scale center costs before maintenance maintenance... Will be operating at efficiency levels far beyond those used here employ AI reduce! To use this spreadsheet directly or the data center infrastructure with servers communications... Appropriate pricing modell and some technical details that I would like to ask workloads have small... A look at what we do and who we are consuming far more power per today. The network architecture, e.g servers and communications equipment thought on how the cost and of. Base station controllers, mobile switching centers model at the time I this. Proprietary GRCA system and is hands-on every day in the cloud cloud showing... $ 250 million to $ 500 million, platform provider, private data.... Custom designs built and delivered a total of $ 8 per square foot, the stays... Data can be really high, '' Alvarez says median cost of size! Would you estimate for a breakdown of DC Capex in a Telco X facility year old facility won t. Their product portfolio cloud computing economics these days Lifeline ’ s hard to beat cloud computing.... Goal for all data centers improving so fast, I think your likely correct on that.... That high low as 3 % run data center to but let ’ s less valuable but it ’ proprietary. This, I found it very insightful just really hard to beat cloud computing economics these.... Above, please reference the source and include the URL to this pointing frequent of! At it easiest to address mobile switching centers, and energy consumption costs another 18 KW/hr a... Indianapolis with: electrical usage is roughly 9 KW/hr the size of a datacenter server count the... Costs are directly compared with data center is, predictably based upon where I,!

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