Measure to Manage II Consolidation Crash Course MeriTalk

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					Measure to Manage II:
   Crash Course?

                   Sponsored by:

To save money, increase efficiencies, and fund the
move to the cloud, the Federal government aims to
eliminate 800 data centers by 2015 – with 137
slated for closure this year.

In March 2011, MeriTalk worked with NetApp to
identify Federal consolidation progress,
optimization metrics, and an estimated $18.8B
savings opportunity.

In May 2011, MeriTalk and NetApp surveyed 157
Federal IT decision makers to dig deeper into the
metrics agencies use to measure consolidation
savings and to determine if agencies are
increasing efficiency as they consolidate.

Do agencies know how much they are saving – or
the savings potential? Are they aware of all
areas of impact? Can they re-invest the savings?


4    Executive Summary
5    Key Findings
12   Recommendations
13   Methodology and Demographics

                                                                              Executive Summary

   • Don’t Know Where They Are: Consolidation should deliver savings across budget
     categories, but agencies need visible, standardized metrics to track the full benefits:
                • Today, fewer than half of respondents track key data center efficiency metrics
                • Just 23% say their IT department has systems in place to track full data center savings, including
                  those beyond the scope of IT – real estate, power, etc.

   • Don’t Know Where They Are Going: Lack of metrics makes tracking efficiency and
     savings impossible:
                • 77% say they do not know Power Use Effectiveness (PUE) across their data centers
                • Fewer than half of respondents track key storage efficiency metrics, such as capacity allocation
                  and consumption, provisioning time, and incident metrics

   • No Idea When They Will Arrive: Federal agencies should leverage private-sector best
     practices and create real incentives for the IT department to consolidate:
                • 82% of the private sector* know their PUE vs. 23% of Federal agencies
                • 94% of the private sector* know their average load across their data centers vs. 31% of Federal
                • Fewer than half (42%) of Federal IT decision makers agree that their departments have an
                  incentive to achieve data center savings, including savings that will be realized by budgets outside
                  of IT
* Market Awareness and Profile Study, February 2011, Digital Reality Trust.
                                                                                          Blind Spot

   • While Federal IT decision makers may understand the benefits of consolidation,
     agencies need visibility beyond IT to capture hard savings numbers

                                                        In what areas will Federal data center
            Just 23% of respondents                   consolidation yield the greatest savings?*

          say their IT department has systems            Not controlled by IT     Partially controlled by IT
           in place to track full data center                          Controlled by IT
           savings, including those realized
                      outside of IT.

                           Take Away: Measure All Costs for Real Management Insight                            5
* Respondents asked to select all that apply.
                                                                 Blind Spots

• Today, agencies do not have a clear picture of current data center utilization

 What is your…
                                 …average kilowatts per
                                 rack across your data
    …data center storage               centers?                 …average load across
   capacity currently utilized
     in your data center?
                                 67% “don’t know”                your data centers?

           47%                   …average server density?             69%
    “don’t know”                 71% “don’t know”               “don’t know”

               Take Away: Not Measuring the Most Important Things                      6
                                                                                   Under the Hood

   • In order to capture savings, agencies need to agree on the metrics to track

                             What metrics are you tracking or will you track to identify savings
                                             from data center consolidation?*

                               Annual hardware spending                             43%
                                     Physical server count                         41%
                      Total operations/maintenance costs                     34%
                        FTEs supporting each data center                    33%
                                 Annual storage spending                   32%
                                Annual software spending                  31%
                                     Energy consumption                26%
                                  Storage capacity utilized           25%
                                Storage capacity available          21%
                                         Energy spending          17%
                                      Network bandwidth           17%
                                   Square footage utilized     12%                   Not controlled by IT
                              Computing capacity utilized      12%                   Partially controlled by IT
                             Computing capacity available      12%                   Controlled by IT

                                                Take Away: Not Measuring the Same Things                          7
* Respondents asked to select all that apply.
                                                                                                                                                                     No Gas Gauge?

   • Agencies’ lack of metrics makes determining data center efficiency impossible

                                                                                                                                         Which of the following metrics
                                                                                                                                         does your agency use to track
                    Energy consumes 12% of                                                                                                    data center storage
                       typical data center                                                                                                       efficiency?**
                                                                                                                                           Capacity consumption (41%)
                                                                                                                                             Capacity allocation (40%)
                                           However,                                                                                        Customer satisfaction (31%)
                                                                                                                                               Incident metrics (27%)
                                       77%                                                                                                    Provisioning time (19%)
                                                                                                                                                 Media ratios (10%)
           say they do not know their                                                                                                       Copy count measures (9%)
         Power Use Effectiveness (PUE)                                                                                                   Scale-up-per-array measures (6%)
            across their data centers
                                                                                                                                                           We don’t track (24%)

                                       Take Away: Standards Exist – Why Not Use Them?                                                                                                                      8
*Gartner Press Release: Gartner Says Energy-Related Costs Account for Approximately 12 Percent of Overall Data Center Expenditures. September 29, 2010. (
** Respondents asked to select all that apply.
                                                                                        Why Not Follow The Map?

   • The private sector has a better handle on data center efficiency metrics

                                              What Do They Know*?

                                                                              Private   Public
                                                                              sector*   sector
                    PUE?                                                       82%      23%
                    Average load?                                              94%      31%
                    Average server                                             95%      29%
                    power density?

                             % of respondents who can provide data on these metrics
                                             for their organizations

                                                                         Take Away: Drive on the Right        9
* Market Awareness and Profile Study, February 2011, Digital Reality Trust.
                                           Create Clear Incentives

• Despite mandates, some Federal IT decision makers still do not see the
  incentive for consolidation

    “The IT department has an                   “We will offer excess
     incentive to achieve data                    capacity to other
     center savings, including                       agencies.”
  savings that will be realized by
       budgets outside of IT.”

  Fewer than half of Feds (42%)                          Just 16% say
             agree                                            yes

                      Take Away: Reward the Drivers                        10
                                                 Cloudy Tomorrow?

• Agencies are unclear whether they are actually saving, and whether they can
  use those savings to fund cloud transition

    My agency will use savings from our
    data center consolidation efforts to
        help fund our move to cloud

                 Take Away: Uncertainty Creates Inaction                        11
                                          Calls to Action

 Standardize data center efficiency

 Leverage private-sector best

 Provide IT leaders with visibility of
  non-IT costs

 Communicate incentives and clarify
  savings reinvestment plans

                                     Methodology and Demographics

MeriTalk, on behalf of NetApp, conducted a survey in-person at the May 2011
“Data Center Consolidation on a Dime” event in Washington D.C., as well as
through an online panel of government IT executives in April and May 2011.
Total Sample: 157 respondents
Margin of Error: +/- 7.81 at 95% confidence

         Organization Type
          65%   Federal Civilian              100% are familiar with
                                              their organization’s data
                Department of
          26%                                 center technologies and
          9%    Systems Integrator

         Thank You
Steve O’Keeffe – MeriTalk   Kelly Smith– MeriTalk
     (703) 626-4097            (312) 391-2428

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