Click here to load reader

DATA CENTER COLOCATION BUILD VS. BUY · PDF file buying third-party colocation services BUILD VS. BUY 365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608 Phone: 8 7-365-6246

  • View
    4

  • Download
    2

Embed Size (px)

Text of DATA CENTER COLOCATION BUILD VS. BUY · PDF file buying third-party colocation services BUILD...

  • Comparing the total cost of ownership of building your own data center vs. buying third-party colocation services

    365 Data Centers © 2016

    DATA CENTER COLOCATION BUILD VS. BUY

  • buying third-party colocation services

    BUILD VS. BUY

    365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608

    Phone: 877-365-6246 [email protected]

    365 Data Centers © 2016

    Executive Summary As businesses grow, the need for reliable and scalable data center space to colocate IT

    a business in the form of decreased productivity, customer churn and lost revenues. Successful businesses often outgrow their own in-house computer and telecom room quickly. They also require suitable environments to support software development, testing, QA and production applications. Furthermore, as businesses target enterprise customers, the need for industry compliance and security increases.

    It is important to perform a comprehensive analysis of the costs, risks, and opportunities of building an in-house data center versus buying colocation services before expanding your data center.

    Build vs. Buy Colocation Uptime Institute’s 2015 Data Center Survey showed that colocation service providers are expanding more rapidly than enterprise data centers. The reason behind this is that many enterprise data center workloads are migrating out of private, single-tenant data centers. More and more enterprise IT leaders are finding it easier to outsource their workloads to colocation and cloud providers.

    74% 47% 58% receiving large spending increases

    Enterprise

    Colocation Providers

    DATA CENTER SPENDING INCREASES (2014—2015)

    The survey further pointed out that the colocation providers showed continued rapid growth—as shown in the percentage of new data center builds by colocation providers versus enterprises.

  • 365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608

    Phone: 877-365-6246 [email protected]

    365 Data Centers © 2016

    Building an in-house data center is expensive. In addition to tenant improvements to raw space, a company must consider the cost of bringing in more utility power and new carriers into their own data center. Also, installing new uninterruptible power systems (UPS), DC battery plants, diesel generators and HVAC systems to cool the servers, storage and networking equipment can be prohibitively expensive. These capital expense (CapEx) costs can add up quickly. Finally, hiring experienced data center personnel adds to the expense and takes resources away from a company’s core business.

    In today’s highly competitive and technology-driven environment, businesses are increasingly looking to either build or outsource their physical data center environments.

    in-house, because a colocation provider has the economies of scale of serving multiple customers.

    time.

    Colocation Providers 45%

    Colocation Providers 59%

    Enterprises 18%

    Enterprises 31%

    Have you built a dacenter in the last 12 months?

    Will your organization build a new data center in the next 12 months?

    NEW DATA CENTER CONSTRUCTION

    Uptime Institute Tier Classifications When considering building a data center, organizations typically build them to “tier classification” standards implemented by the Uptime Institute. The Uptime Institute is a leading 3rd party data center research, education, and consulting organization focused on data

    synonymous with certification and standards classifications within the data center industry.

  • 365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608

    Phone: 877-365-6246 [email protected]

    365 Data Centers © 2016

    Tier 1: Composed of a single path for power and cooling distribution, without redundant components, providing 99.671% availability.

    Tier II: Composed of a single path for power and cooling distribution, with redundant components, providing 99.741% availability.

    Tier III: Composed of multiple active power and cooling distribution paths, but only one path active, has redundant components, and is concurrently maintainable, providing 99.982% availability.

    Tier IV: Composed of multiple active power and cooling distribution paths, has redundant components, and is fault tolerant, providing 99.995% availability.

    The Uptime Institute’s research has also provided an estimation of the median costs of building facilities according to their tier structure. What transforms a raw space into a data center is the installation of utility power, redundant power systems and cooling. Data centers are often sized by the amount of protected electrical capacity of the facility measured in kilowatts (kW). The space required for power and mechanical needs grows incrementally based on the Tier level you decide upon. For example, Tier I and Tier II data centers can require a ratio of 1 to 1 support space, reducing actual allowed space for IT footprint. A Tier IV data center can require up to 3 to 1 of the space required to facilitate the IT footprint. Below are the Uptime Institute’s cost estimates for building a data center broken down by three components:

    The “kW” Cost Component by desired level of functionality

    Tier I: $11,500/kW of redundant UPS capacity for IT

    Tier II: $12,500/kW of redundant UPS capacity for IT

    Tier III: $23,000/kW of redundant UPS capacity for IT

    Tier IV: $25,000/kW of redundant UPS capacity for IT

    Based on its research, the Uptime Institute has provided guidelines for Tier classifications and estimated the costs for building data centers. According to their research, the primary drivers of data center construction cost are the costs of power and cooling capacity to a data center.

    The four Tier Classifications provide a simple means for identifying the most common designs for building data centers. The Institute’s tiered classification system addresses the needs of common benchmarking when discussing the abilities of data centers. The four tiers as classified by the Uptime Institute include the following:

  • Build vs. Buy Colocation Comparisons Below we will compare the costs of 1) building a single tenant data center and 2) renting space from a retail colocation provider. The cost assumptions are based on matching the material, operations, and maintenance programs of a TIER II colocation provider. We also include the ongoing operational costs over a 5-year period. These comparisons assume a build option with the load at 40% of capacity with room for growth, utility costs of $.08 per kWh and a 2.0

    of $150 per mile per strand vs. cross connects. Note that while many colocation

    maintain a PUE of 1.3 to 1.5, building a single-tenant facility that is relatively small will result in a higher PUE. We have chosen to be extremely conservative in using a PUE assumption of 2.0.

    365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608

    Phone: 877-365-6246 [email protected]

    365 Data Centers © 2016

    The “Computer Room” Component in all cases is $300/sq. ft. of computer floor and this cost must be added to the “kW cost” shown above.

    The “Empty Space” Component is added to the “kW cost” above at $190/sq. ft.

    Cost Examples of Building a Data Center In-house

    Based on the Uptime Institute benchmark costs, building data centers can be expensive. For example:

    Tier II level facility with 160 racks at 5.0 kW/rack (800 kW of UPS-protected power) @ 5.0kW/rack. (5,000 sq. ft. X $300/sq. ft.) + (800 kW x $12,500/kW) = $11.5 million

    Tier III level facility, with 160 racks at 10.0 kW/rack (1,600 kW of UPS-protected power) @ 10.0kW/rack. (5,000 sq. ft. X $300/sq. ft.) + (1,600 kW x $23,000/kW) = $38.3 million

    Small Data Center (1,000 square feet)

    Tier II level facility with 32 racks at 5.0 kW/rack (160 kW of UPS-protected power) @ 5.0kW/rack. (1,000 sq. ft. X $300/sq. ft.) + (160 kW x $12,500/kW) = $2.3 million

    Tier III level facility, with 32 racks at 10.0 kW/rack (320 kW of UPS-protected power) @ 10.0kW/rack. (1,000 sq. ft. X $300/sq. ft.) + (320 kW x $23,000/kW) = $7.7 million

    Large “Telco Room” (500 square feet)

    Tier II level facility with 16 racks at 5.0 kW/rack (80 kW of UPS-protected power) @ 5.0kW/ rack. (500 sq. ft. X $300/sq. ft.) + (80 kW x $12,500/kW) = $1.2 million

    Tier III level facility, with 16 racks at 10.0 kW/rack (160 kW of UPS-protected power) @ 10.0kW/rack. (500 sq. ft. X $300/sq. ft.) + (160 kW x $23,000/kW) = $3.8 million

    Mid-sized Enterprise Data Center (5,000 square feet)

  • Example A: 3 Cabinets @ 3kW per cab = 9 kW Load @30 kW Total Power Capacity

    Costs to Build Data Center In-House

    365 Data Centers 1400 65th Street, Suite 230 Emeryville, CA 94608

    Phone: 877-365-6246 [email protected]

    365 Data Centers © 2016

    Architectural, Engineering, and Permitting Description Engineering

    Permits, Prep, and Demo

    Material $

    $

    Labor $ 14,625.00

    $ 5,435.50

    Total $ 14,625.00

    $ 5,435.50

    Power Construction Description Utility Improvements

    Electrical Panels Switch Gear

    Transfer Switches

    N+1 UPS Systems

    TVSS System

    Generator & Enclosures

    Generator Conduit and Cabling

    Data Center Lighting

    Lighting Protection

    Room PDUs

    Material $ 5,427.50

    $ 29,250.00

    $ 21,125.00

    $ 58,500.00

Search related