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The Data Center’s Contribution to Organizational Health

Maintaining that value to the business comes amid rising costs of infrastructure, power, and cooling, and the mantra of doing more with less. In a 2008 report, McKinsey & Company states, “Today’s data centers account for approximately 25% of the total corporate IT budget, when you take in account facilities, servers, storage and the labor to manage them.”(McKinsey & Company, 2008) Figure 1 illustrates typical enterprise costs.


Figure 1: Despite the high costs, companies have been unable to move towards a holistic management of the physical infrastructure due to the lack of solutions. An approach that enables continuous improvement process and holistic management such as those shown in Figure 2 must address the following issues:

  • Decoupling of applications/services from the physical infrastructure (virtualization) extends the life of existing data centers
  • Maximizing utilization and improving the ability to consolidate current facilities into fewer, more efficient data centers
  • Optimizing physical infrastructure to increase energy efficiency and enable higher densities
  • Reducing complexity, increase agility, drive continuous analysis, and planning and management improvements