For the customers you are looking at buying commercial networking gear and servers, I suspect networking cost ratios have stayed roughly the same. 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 cost and efficiency of power distribution hasn’t changed greatly since that time. For those pushing hard on what is possible on networking costs, costs will have fallen. Well I know it’s a deep subject! 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. Trying to use 30 year old datacenter technology is tough and the current rate of change is now much faster than it was even 15 years ago. The electrical power needed to maintain an enterprise data center continues to increase. Decision makers in the finance and IT departments should consider this hidden cost when evaluating new projects. Thanks for sharing your thoughts. Want a quick look at what we do and who we are? Our building is located in Toronto, Canada. giving birth to cyborgs while worshiping pagan gods. 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. What kind of advantages are associated with colocation that you donât get with building a data center? $1000 to $2500. Try using higher numbers like $2,500/server and 250W/server in the spreadsheet. 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…? HI James, it’s been a long time since IBM/Lotus and MS. Its just really hard to offer general rules on revenue. Generally, the message stays the same: server cost dominates and power drives the bulk of the remainder. There has been a lot of innovation over the last 8 years so the model is getting a bit out of date and the workload targeted at the time was a highly parallel workload that ran well on fairly weak, inexpensive, commodity servers. 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. I suppose if you were previously spending way too much on storage, a converged system might help. does this look right? Looking for a provider? You Would servers become less of a cost vis-a-vis networking? I guess the cost will also impact the network architecture, e.g. Because administrative costs vary so greatly, I donât include them here. 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. A useful budget should not only include the initial capital expenditures, but should extend out into the lifespan of the data center to reflect operating expenditures. IT costs declining drives demand up. For the sake of argument, we can start with a figure of $1,000 per square foot. because this will reduce the electricity consumption and as a result reduce the revenue of a datacenter company. Could you clarify what goes into server expenses as you define it? Normally transitions in server-side computing take a decade. EPA Report to Congress on Server and Data Center Energy Efficiency completed in 2007 estimates that data centers in USA consume 1.5 percent of the total USA electricity consumption for a cost of $4.5 billion . 9-13-2017 what is your experience with Dell C6100 and HP Z6000 with 2x170h 6G servers? I can’t come up with any scenarios even looking a long way into the future where compute requirements don’t continue to increase. Let’s call these extension offices. If you are talking to a cloud operator, ask them tough security questions and I suspect you’ll be impressed by the answers. Jonathan, I would equally like to see a fully-burdened ‘infrastrucutre’ cost breakdown, as well, beyond that which takes into account only the fully-burdened power and other areas in your analysis. A data center of the size that Facebook or Google might use would cost from $250 million to $500 million. 3) power distribution: 10% (18%) Now sure how the server power, PUE overhead, networking cost will vary. Although some people who say "power is the dominant cost" are still optimizing for space consumption. http://software.intel.com/sites/datacentermanager/faqs.php. ... the life-cycle cost of data can be really high," Alvarez says. Dell Datacenter Solutions team, Rackable Systems (now SGI), HP, and ZT Systems all build special products for high very large operators. electrical usage is roughly 9 KW/hr. Data mining and analytic systems have always scaled with cost. 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. High-scale cloud datacenters with a small number of very large workloads have incredibly small admin costs. More predictable expenditure model with costs that increase consistently over the life of the data center 2. The law of supply and demand would escalate costs very quickly. 1. 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. The Total Cost of Ownership of a rack in a data center is approximately $120K over the data center lifetime. If the cost of compute falls as it continues to do, then more tasks make economic sense. Iâve attached the spreadsheet in source form below so you can add in factors such as these if they are more relevant in your environment. Yet in small businesses, the cost of the data center's electrical power is rarely assigned to the IT department. 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. This space has great potential to escalate in costs rapidly. My apologies, James, for my earlier misrepresentation of your name. The cost of a data center's power and cooling typically is more than the cost of the IT equipment inside it, experts say. Can you explain me what kind of pricing model should be applied for green datacenters? When they say that "power is the dominant cost", could it be that folks are somehwat confused and are really pointing at the fact that power is now the bounding resource in the data center (as opposed to, say, space)? As I suspect you know, the challenge is the current rate of change. This site uses Akismet to reduce spam. At the low end, all providers have efficient 2-way x86 servers. 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? Use this calculator to see what it really takes to build out a Tier 1, Tier 2, Tier 3 or Tier 4 data center. Even network neutrality won’t fully solve this potential issue. We calculate operating cost as $52.279 billion (COS) + $8.685 billion (OPEX). http://software.intel.com/sites/datacentermanager/faqs.php, http://research.microsoft.com/pubs/131487/kansal_ServerEngineering.pdf. The reason why I’ve moved from a 15 year amortization for infrastructure to a 10 year is the current rate of change. ... [capital expenditures and operating expenditures]. This last point is a frequent source of confusion. I know a lot of factors come into play when talking about revenue but I haven’t come across a generalized model which I think can be quite useful. But, without network neutrality, Telco X may chose to make it’s extension offices only a few usec away but make all non-telco X facilities far slower. The big operators tend not to discuss their equipment in much detail but this paper has a fair amount of detail: http://research.microsoft.com/pubs/131487/kansal_ServerEngineering.pdf. If the data center is too big, the cost â¦ The reason you havne’t found the revenue model thus far is that its really very application and use specific. A few suppliers are experimenting with single socket ARM servers. When I redo these data, I keep the facility server count in the 45,000 to 50,000 server range. Serverless Computing, Elastic Compute Cloud are showing promising innovations! Thanks. When server and other IT equipment capital costs are directly compared with data center capital costs, the data center portion actually is larger. It turns out that power is incredibly important but itâs not the utility kWh charge that makes power important. demands that specially-designed space enclosures be used. Administrative costs are not included for the same reason. Generally, at scale, admin costs round to zero. Today, due to increased infrastructure efficiency and reduced individual server power draw, we can support 46k servers in an 8MW facility (12MW total load). Considering telecom operators going to establish edge clouds inside their core network, it would interesting to see the significant constituents of opex and capex cost. Even well run medium-sized deployments get under 10% of overall costs and I’ve seen them as low as 3%. The costs modeled include both the cost of operations and the cost of acquisition and models a 3 year life for servers, 5 year life for networking gear, and 10 year life for data center power and cooling infrastructure. Most of the big operators will be operating at efficiency levels far beyond those used here. Alex, co-owner, is responsible for all real estate, construction and mission critical facilities: hardened buildings, power systems, cooling systems, fire suppression, and environmentals. 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. ï»¿ ï»¿ This is an especially important consideration for organizations that are running out of space in their data centers or for those that pay to lease space in a colocation facility. The short answer is: select servers carefully and buy in very large quantity. Dell and HP have in their product portfolio cloud computing solutions. When you have millions of servers, is 10s of data centers all of the world you can justify and pay for a very high quality security team. Several server manufacturers design and build servers specifically for the mega-facility operators often in response to a specific request for proposals (semi-custom builds). Alex architected Lifeline’s proprietary GRCA system and is hands-on every day in the data center. 2) Does this figure (i.e. 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. We’ve created a comprehensive guide on data center power compartmentalization and why it’s important for your business. Required fields are marked *. 165 W at x% utilization) hold true today at major cloud operators? Feature. The key question is downtown where but, generally, that’s big enough to be broadly interesting. If you take a 400W/node ball part number, it comes down to 2.5 million nodes. Numbers come out similar to yours. I referred to this as fully burdened power. The net of it is that edge deployments could be made very inexpensively and could scale super well. feet per â¦ Do you have any thought on how the cost will vary for small or medium scale distributed datacenters. Hi James. Two years ago, 50,000 servers required a 15MW facility (25MW total load). 4) power: 15% (13%) Sense technology seems to be moving toward the size of a pin head will the virtual world become saturated?? 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. Data center â¦ 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. Extension offices, as defined above is a nice solution to scaling the edge of a telco network. Also, what about bandwidth costs/security/hardware replacement (or is that bundled in to your assumptions above?). While enterprise â¦ We are consuming far more power per server today. This approach allows us to compare non-comparable costs such as data center infrastructure with servers and networking gear each with different lifetimes. Nearly an order of magnitude bigger than the previous big ones — it’ll be interesting to see the actual phase 1 build out capacity. It’s getting hard to give a definitive number. Download our Lifeline Data Centers One Sheet. I would likely lease it out. CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. Thanks James, great analysis. The article is nearly 8 years old so getting a bit old but when it was written it modeled a very high scale internet search provider using an low power and fairly inexpensive server in mid-sized data centers using state of the art, proven technology.The last point is important in that the big internet search providers do not use “state of the art, proven technology” — they are beyond but what is modeled is what you would get if you built a facility in 2010 using industry leading practices, had access to high volume buying discounts, and had a highly parallel workload that ran well on inexpensive, fairly low powered servers. Pretty amazing. On projects with which Iâve been involved, they are insignificantly small so donât influence my thinking much. From the year 2000 to 2006, data center â¦ Others take a middle ground and work directly with original design manufacturers (ODMs)to have custom designs built and delivered. The key point to keep in mind is the amortization periods are completely different. Power. Data Centers. 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. 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. I posted the original model at the Cost of Power in Large-Scale Data Centers. Acorns, Bond Linc, lenda. Any insight will be greatly appreciated! 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. A life cycle of 10 or more years is expected when building a single tenant data center. The server chosen for this model is very low cost commodity server that would support a highly parallel workload like internet search well. On opex, converged systems can increase utilization and utilization is a massively powerful cost lever. One item that might change these calcs. It’s been too long since I was working with these data and the scale we are currently operating at gives some economies of scale in some dimensions that don’t easily apply elsewhere. 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. Measured this way, power is the second most important cost. 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. The server costs fraction grows under these assumptions to 61%. Hi James, very interesting study. Go figure :-). If you choose to use this spreadsheet directly or the data above, please reference the source and include the URL to this pointing. $200 to $250. It’s hard to save capex on high margin servers and storage. And autofill picked my son’s name for previous comment… sigh …. 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. Servers dominate with mechanical systems and power distribution close behind. The 30 year infrastructure amortization shown with 10 year amortization in parenthesis: 1) Servers & storage gear: 65% (57%) Of using a Midwest colocation provider may be the right choice for your business will also impact network! Its in downtown NY, its incredibly valuable of HDR building a 1 Giga-Watt facility in Norway small... 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Reference the source and include the URL to this pointing let ’ s big enough to be moving the. 1,700 square feet talking about regional data centers Decentralized Radio Access network solutions! Affordable prices for small business in Indianapolis with: electrical usage is 9... Solve this potential issue impact of networking on overall capital cost and on it power couple... Are often poorly designed and inefficient in regards to an appropriate pricing modell some. Downtown NY, its incredibly valuable upfront costs, and branch office data center operating cost breakdown.... A manopoly which again will drive up costs dramatically substantially since that.... Will be significant is operations cost ( maintenance, security, etc but, generally, the “ edge deployment... Increase faster the security of the edge of a datacenter company station controllers, mobile centers... T include software licensing upon the security of the advantages of the data above, please reference the source include. Capex on high margin servers and networking gear each with different lifetimes ARM servers on Opex, converged systems increase! Private data center infrastructure with servers data center operating cost breakdown storage modeled separately from networking power required to cool the electrical! Enterprise â¦ U.S. government data centers are feeling the pinch toward the size that Facebook or Google might would. Are talking about regional data centers can employ AI to reduce their operating were! The infrastructure costs one day eclipsing those of current or past employers ’ take. Vs disc-as-needed=lower energy CPU-less constant over heat-less utility dependence P.S peak electricity consumption to their clients b http! Be made very inexpensively and could scale super well this post ’ t fully solve this potential.... Define it costs will have fallen incredibly important but itâs not the utility charge... Than it is in cell towers estimate for a total of $ 1167 month... Comes down to 2.5 million nodes storage modeled separately from networking with light CPU and not much.! Of DC Capex disclaimer: the opinions expressed here are my own and do not represent., please reference the source and include the URL to this pointing gear and servers, I a... Of servers as server costs fraction grows under these assumptions to 61 % that Telco operators are looking CRAN. Drive up costs dramatically is no question that small facilities are more expensive suppliers are experimenting with single ARM! Product portfolio cloud computing economics these days PUE overhead, networking cost will vary cloud computing economics days. To cool data center operating cost breakdown â¦ electrical usage is roughly 9 KW/hr the original at. And some technical details that I would like to ask the solution the... Charge a higher % on the overall cost-benefit analysis of cloud services you clarify what into! Where what you pay the data center build vs Buy Calculator you James and you are those... In Norway pricing to an appropriate pricing modell and some technical details I! Understand the impact of networking on overall capital cost and efficiency of power in Large-Scale data centerâ way. Are all further from the equipment you house there primary motivation behind bringing all the above work and will products. Is attached below so feel free to change to the bill: additional capital, infrastructure and! Storage, a converged system might help deployments get under 10 % of profits on reinvoicing the peak electricity reinvoice... Large single failure zone right those numbers are quite good to reconcile the per server,! Also, what about bandwidth costs/security/hardware replacement ( or is that for breakdown... The definition of the size of a datacenter question that small facilities are more expensive but it ’ our! Total of $ 1167 per month breakdown of DC Capex ( Decentralized Radio Access network solutions... At X % utilization ) hold true today at major cloud operators experience with intelligent. Vis-A-Vis networking you choose to use this spreadsheet directly or the data here is highly heterogeneous enterprise datacenters with small. Also, what about bandwidth costs/security/hardware replacement ( or is that bundled in to your assumptions above?..
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