1 EIT 2.2 Is your company missing out on the cost-savings opportunities offered by data center consolidations? Andy Abbas Co-Founder and Vice President

2 Data Center World – Certified Vendor Neutral Each presenter is required to certify that their presentation will be vendor-neutral. As an attendee you have a right to enforce this policy of having no sales pitch within a session by alerting the speaker if you feel the session is not being presented in a vendor neutral fashion. If the issue continues to be a problem, please alert Data Center World staff after the session is complete.

3 Questions Answered An IT Perspective look at: How have some of the world's largest organizations saved billions through data center consolidations? What are the key opportunities for companies to save money through data center consolidations? How can you evaluate whether your company can profit from a data center consolidation?

4 Market Perspective "Data center consolidation is a way to reduce costs…….anything that cuts the costs of operating and maintaining existing systems allows more of the budget to be applied to implementing new systems that innovate or deliver additional value to the overall business/organization." Carl Claunch, Analyst, Gartner Inc. TechTarget Survey results – Consolidation Approach: 55% will use virtual server farms 42% will use cloud infrastructure 35% will use hosted servers (Respondents were able to select more than one option.)

5 Typical data center environments Private Data Centers (Self managed or Outsourced) Co-location Data Centers Fully Managed Data Center Services Public cloud Services

6 Organizations that have saved by Data Center Consolidations Federal Government Goal: Save $3 Billion Close 40% (1,253) DC’s Target by 2015 – 968 DC’s Closure GE Consolidating 34 data centers to 4 Move 9,000 workloads to AWS. Bayer Corporation Consolidated 42 data centers into 2 Servers reduced from 1335 to 615 $10 million saved in just first half-year Projected savings: $76 million over 5 years. Hewlett-Packard 85 data centers in 29 countries, consolidated down to just 6 data centers in 3 U.S. cities Number of servers reduced by 40%, while increasing processing power by 250% Overall data center costs reduced by 60% Savings of $1 billion annually. Citi Group Consolidate 70 data centers to 20 Virtualize 40K machines - now consuming % of it capacity vs. 5-10% earlier Storage utilization from 10% to 60% According to Jagdish Rao, Citigroup, the consolidation program was essentially self- funded through operational savings. GM Consolidate 23 to 2 Data Centers Retired hundreds of apps of more than 4,000 Advanced Micro Devices (AMD) 90% reduction in data centers – over 2 years Consolidating 18 data centers to 2 Cost savings by 30% Anticipated $8.5M yearly savings

7 Physical Space Target should be 1 or 2 (DR) core data centers Reduce energy consumption DCIM benefits Consolidated management Standardize service delivery Improve security and availability. Hardware Virtualization / Cloud Refreshing equipment Increased utilization efficiency Software – More complex Software consolidation Fewer vendors to manage Core Areas of Consolidation

8 Key Opportunities for Cost Savings Reduction in Infrastructure Virtualize physical environment Move workload to the cloud Refresh legacy hardware TechTarget: “the cost of keeping old systems up and running ends up being more than the replacement cost, leading enterprises toward consolidation.” Optimized allocation of human resources Eliminate duplicate teams Leverage in-demand skillsets remotely TechTarget: "If public cloud can pick up the slack, some present in-house resources may not be necessary"

9 Key Opportunities for Cost Savings Minimizing redundant applications and Improving Application Efficiencies: Due to M&A’s, lack of application inventory or application architecture Perform a full inventory and document usage and dependencies Consolidate application (application migration) Implement a process to avoid redundancy in the future Optimizing bandwidth utilization Reduce the number of WAN links necessary post consolidation Implement WAN accelerators Improve latency by choosing customer to data center proximity

10 Key Opportunities for Cost Savings Virtualization and Cloud usage Reduce data center foot print requirements Reduce in-house resources requirements Improve scalability and pay per use Reduce DR costs Improved business efficiencies (go-to-market) Leveraging the economies of scale Storage, compute and memory In-house resources Applications and Databases Security (Physical and Logical)

11 How organizations can evaluate their environment Utilization % of existing HW % of physical to virtual Age of current infrastructure Labor utilization (employee and contract) Applications and databases Utilization - Redundancy Growth plan for DC DC facilities expenses (Lease rate, utilities costs, etc.) DC efficiencies and reliability - outages incurred and revenue impact Security and compliance

12 3 Key Things You Have Learned During this Session How have some of the world's largest organizations saved billions through data center consolidations? What are the key opportunities for companies to save money through data center consolidations? How can you evaluate whether your company can profit from a data center consolidation?

13 Andy Abbas Co-Founder and Vice President Data Agility Group, Inc. (214) Thank you