1. 1 May 12, 2010 Federal Data Center Consolidation Initiative

2. 2 FDCCI Business Drivers  The reported number of Federal data centers grew from 432 in 1998 to more than 1,100 data centers in 2009 [1]. [1]  This growth in redundant infrastructure investments is costly, inefficient, unsustainable and has a significant impact on energy consumption.  In 2006, Federal servers and data centers consumed over 6 billion kWh of electricity and without a fundamental shift in how we deploy technology it could exceed 12 billion kWh by 2011 [2]. [2]  In addition to the energy impact, information collected from agencies in 2009 [1] shows relatively low utilization rates of current infrastructure and limited reuse of data centers within or across agencies. [1]  The cost of operating a single data center is significant, from hardware and software costs to real estate and cooling costs. [1][1] Current Data Center count is based on OMB Budget Data Request (BDR) No. 09-41, August 8, 2009 [2][2] Report to Congress on Server and Data Center Energy Efficiency, Public Law 109-431, U.S. EPA ENERGY STAR Program, August 2, 2007

3. 3 FDCCI Strategic Goals & Primary Benefits The Federal Data Center Consolidation Initiative aims to address these challenges by leveraging best practices in the public and private sector, and focusing to: 1.Promote the use of Green IT by reducing the overall energy and real estate footprint of government data centers; 2.Reduce the cost of data center hardware, software and operations; 3.Increase the overall IT security posture of the government; and 4.Shift IT investments to more efficient computing platforms and technologies. Primary Benefits:  The primary benefit from improved IT equipment utilization is reduced overall energy consumption which leads to significant energy cost savings (up to 90% for virtualized IT equipment)  Additional benefits from Virtualization & Data Center Consolidation Reduced Facilities Maintenance & Operations costs Reduced Server Maintenance & Operations costs Improved Automation for Server Management & Provisioning

4. 4 Data Center Consolidation – Utilization Improvement Metrics Utilization MetricsTypical ResultsTarget Results Average Virtualization (%)0-10%30-40% Average Virtual OS per Host (#)5-1015-20 Average Server Utilization (%)7 – 15% 60 – 70% (application dependent) Average Rack Space Utilization (%)50 – 60 %80 – 90% Average Power Density Usage Equivalent (W/sq.ft.) 50 – 100 W/Sq Ft150 – 250 W/Sq Ft Power Usage Efficiency (PUE)3 – 21.6 – 1.3  Improving IT asset utilization is the key driver for reducing energy consumption per unit of performance. This can be achieved primarily by: –Server Virtualization (increasing the number of virtual servers per hosts) –Server Consolidation (decommissioning underutilized physical servers) –Rack Space Consolidation (relocating underutilized racks) –Data Center Consolidation (shutting down underutilized facilities)

5. 5 High-Level Summary of Consolidation Approaches DescriptionApproachPotential BenefitsRationale Decommission Turn off servers that are not being used or used in- frequently (e.g. dedicated development environments) Cost Savings Energy Efficiency Frees Floor / Rack Space As many as 10-15% of servers may be inactive but still powered on in data centers* Centralization / Site Consolidation Move servers/storage to a few selected data centers Consolidate small data centers to larger target centers Floor Space Cost Savings Operational Cost Savings Increase Rack Utilization Energy Efficiency Approximately 430 Government data centers are categorized as “closets” or small sized data centers (less than 1,000)** Virtualization Consolidate several servers onto a single server through virtualization of the OS/Platform Floor Space Cost Savings Increase Rack Utilization Increase Server Utilization Energy Efficiency Server Utilization is approximately 21% Government wide** Cloud Computing Alternatives Move application functions to standard, vendor supported enterprise platforms or services Floor Space Cost Savings Energy Efficiency Operational Cost Savings Cap Ex Cost Savings HW/SW Reduced SW Maintenance Improved Service Delivery Reduce Operational Risk, lower TCO and TCSD Approximately 40% of Civilian Agency Systems are low-impact FISMA security, and therefore may be low-risk candidates for Cloud Computing solutions * McKinsey Report: Revolutionizing Data Center Efficiency, July 2008 ** OMB BDR 09-41 Data Analysis, October, 2009

6. 6 Data Center Consolidation – Agency Reporting Schedule DeliverablesDescription Agency Deadlines 1.INITIAL ASSET INVENTORY Conduct an initial inventory of data center assets. This will provide a high- level understanding of the scale and size of data centers, IT infrastructure assets, and supported applications. April 30, 2010 2.INITIAL DATA CENTER CONSOLIDATION PLAN Develop an initial data center consolidation plan. This plan will identify potential areas for consolidation, areas where optimization through server virtualization or cloud computing alternatives may be used, and a high-level transitioning roadmap. June 30, 2010 3.FINAL ASSET INVENTORY BASELINE Collect the final asset inventory baseline containing more detailed data. This will serve as the foundation for developing the final data center consolidation plans. July 30, 2010 4.FINAL DATA CENTER CONSOLIDATION PLANS Develop final data center consolidation plans. The final plans will include a technical roadmap and approach for achieving the targets for infrastructure utilization, rack density and consolidation. Aug. 30, 2010 5.ONGOING MONITORING Conduct ongoing annual monitoring and reporting staring in FY11: Update the asset inventory annually (end FYQ3) Report progress on executing data center consolidation plans (end FYQ4) Reflect changes in asset inventories and account for execution of data center consolidation plans in subsequent year’s budget June 30, 2011 Sept. 30, 2011

7. 7 Strategic Goals and Opportunities Tactical OpportunitiesStrategic Goals Promote the Use of Green IT Reduce the Cost of IT Increase Security Posture Invest in Efficient Platforms & Technologies Software AssetsHardware AssetsFacilities & EnergyLocation & Real Estate Consolidate Small Data Centers Lower Leasing Costs per Sq Foot Power Supply Improvements Perform Virtualization of Servers / Storage Move Applications / Infrastructure to Cloud Utilize Alternative “Green” Energy Sources Aggregate Administrative Functions Optimize Cooling Methods / Performance Disseminate Government Best Practices Facilitate Cross-Government Collaboration Create Metrics for Measuring Goals Optimize Large Data Centers Identify/Classify Business Application Services Improve Security via HW & SW Asset and Configuration Management Improve Performance via Redundancy, Load Balancing, COOP

8. 8 Primary Focus Areas, Consolidation Approaches and Constraints/Considerations FOCUS AREAS Storage (physical & network) Servers & Mainframes Racks Data Center Floor Space IT Energy Efficiency Average Storage Utilization (%) Average Server Utilization (%) Average Rack Utilization (%) Total IT Floor Space (sq ft) Energy Efficiency (PUE and kW) CONSOLIDATION APPROACHES Centralization / Site Consolidation Decommissioning Virtualization Cloud Computing Alternatives CONSTRAINTS / CONSIDERATIONS App Requirements (Performance, Security, COOP/DR, Integration) Facilities Lease & Term Agreements Geographic Location (Cost/sq ft, Geo-diversity, Energy Costs) Tier Classification, Square Footage Available OS / Platform & Standardization Data Center Asset Key Metric Personnel Relocation, Costs & Risks