Is the data center a CXO concern? Absolutely. Consider this from McKinsey: “Despite the huge amounts of capital tied up in data centers, significant inefficiencies exist. With average data center costs now threatening to crowd out other technology investments, the matter has become a board level concern.”
Is the data center a CXO concern?
It’s a fair question, and the answer is yes. If risk is a concern, if cash flow is a concern, if shareholder value is a concern – then the data center is a concern.
“Despite the huge amounts of capital tied up in data centers, significant inefficiencies exist. With average data center costs now threatening crowd out other technology investments, the matter has become a board level concern.”
Mitigate future capacity risk – without stranding capital
The digital world is growing fast – exponentially. Consider: 90% of all the data that exists in the world today was created in the last two years alone, according to IBM. There is tremendous value in all that data, to be sure, but the ability to extract that value rests squarely on the shoulders of the data center. After all, while the processing capability of IT infrastructure has grown exponentially (that’s Murphy’s Law), the traditional data center – its technology and its model – has hardly changed.
Knowing all this, your IT team is trying to figure out how they’ll enable the business to derive value from the digital deluge. On one hand, they could provision more than enough data center capacity to meet the business’s demands well into the future. But then they’re going to have to ask you for a very big check – and they recognize theirs is just one of many priorities competing for dollars. On the other hand, they could ask for a modest financial commitment today, but then they risk not having enough capacity to take advantage of all the opportunities that the digital world (think: IoT) will present.
In a traditional data center, that tradeoff is real. And most IT leaders decide to over-provision today – check please – to avoid the risk of capacity constraint in the future. But it results in massive under-utilization of IT infrastructure. According to a 2015 enterprise data center survey by 451 Research, the average datacenter is utilized at 63% capacity from a square-footage perspective, and 56% from a power perspective. In other words, 44% of the power that enterprises are allocated – and paying for – is unused.
But what if the data center evolved? What if new power and cooling technology and a new data center model enabled your IT team to scale capacity in right size increments, basically on-demand? Then your IT team wouldn’t have to choose between mitigating future capacity risk and making smart use of capital. They could do both.
“A more transparent and usage-based model is sorely needed.”
Gartner analyst Bob Gill
Reduce cost, improve profitability, and deliver greater shareholder value
In addition to forcing you into a tradeoff between capacity risk and capital efficiency, the traditional data center is also inherently wasteful. It delivers reliability, but at the expense of efficiency. Consider, for example, Gartner’s perspective on data center cooling: “Gartner generally finds that most multi-tenant data center operators have an extremely diverse array of IT equipment operating within their facilities and generally take a ‘lowest common denominator’ approach to their environments operating them cooler than may be necessary – just to be safe.”
It doesn’t need to be that way. You can have your cake and eat it, too, with a data center that delivers industry-leading reliability and efficiency.
How big an issue is it? Consider McKinsey’s perspective: “The portion of the IT budget consumed by infrastructure and facilities is significantly reshaping the economics of many businesses…data center costs are diverting capital from new product development, making some products and segments uneconomical and materially affecting margins. Without radical changes in operations, many companies with large data centers face reduced profitability.”
Aligned Data Centers’ role
If you’re going to mitigate risk, reduce cost, improve profitability, and deliver greater shareholder value, you need control over your data center. And, you need a data center that is more cost-effective and more energy-efficient (i.e., it wastes less).
We’re give you back control of the data center, through:
- A lower upfront contract commitment
- Plug-and-play infrastructure and analytics for capacity planning
And we enable you to waste less through:
- Consumption-based, pay-for-use pricing
- Ultra-efficient power and cooling infrastructure
- “The most reliable cooling system in the marketplace”
Does your data center enable you to mitigate risk, reduce cost, improve profitability, and deliver greater shareholder value? This three-page CXO’s Perspective can help you answer that question: