The Business of Data Center Consolidation

Consolidating data centers can be one of the best ways for significant and lasting cost reduction. But many organizations don't have a good understanding of the total cost of a data center including all real estate, power and cooling costs.

As data center managers look to optimize their cost structure, they should fully understand the cost to operate and maintain each data center (per sq foot, per rack unit, and/or per BTU) and consider shifting resources, consolidating data centers or co-locating to less expensive space.

Apptio's Technology Business Management solution helps customers model the total cost of IT, including data center costs, and provides the analysis capabilities to understand which option provides the best long term ROI.

With Apptio, you can:

  • Gain deep visibility into the cost of IT, per facility and per IT Service.
  • Track utilization rates and free space in addition to cost.
  • Run detailed ROI analysis of different consolidation scenarios for optimal ROI.
  • Measure the cost of data centers and the ROI of consolidation over time.
  • Marry data center data with infrastructure and application costs for a complete TCO of IT Services.

A More Informed Approach

Whether you have acquired multiple data centers through acquisition or are assessing consolidating into a larger more efficient data center, it is critically important to understand the cost ramifications of any move.

The first step is to make sure you understand the total cost of operating a data center, including all facilities costs, labor and infrastructure. A true understanding of the cost drivers and their relationship to the infrastructure and IT services they support provides the foundation for all cost and ROI analysis moving forward. Apptio is designed to model unit cost, quality and other metrics and their relationship to IT services and business units, in order to drive deep analysis and better decision making.

A second area where Apptio can help is scenario planning for various data center configurations. Apptio provides What If scenario planning, allowing multiple configuration scenarios to be analyzed and ROI calculated.

Finally, post consolidation, Apptio tracks the cost of data center operations in order to showcase the cost savings and operational efficiency.