various reports are suggesting that telco operators are looking into CRAN (Centralized) and DRAN (Decentralized Radio Access Network) solutions. Therefore, we classify our data centers as meeting Tier 3 data center standards. Custom portable TB vs mac.disc-as needed-lower energy CPU-less constant over heat- less utility dependence. © 2020 If you have good networking and power, it has value as a datacenter. Understanding Data Center Costs Breakdown Is The Key To Better Price Comparison Even Under Disparate Pricing Models. It’s getting super hard to characterize power draw and few want to talk about it but 12 to 15kva racks are pretty common, storage racks run less, and there are some designs that are much higher. This can become especially meaningful over a long stretch of time in lease-rental situations where the dependency on power and air cooling, chillers, etc. It can cost tens of thousands of dollars per year to move large volumes of data to public cloud services and to store that data … To me, the “edge” is a cell tower and cell tower floor space and power is in very tight supply. what is your experience with Intel intelligent power node manager It’s the cost of the power distribution equipment required to consume power and the cost of the mechanical systems that take the heat away once the power is consumed. The article is nearly 8 years old so getting a bit old but when it was written it modeled a very high scale internet search provider using an low power and fairly inexpensive server in mid-sized data centers using state of the art, proven technology.The last point is important in that the big internet search providers do not use “state of the art, proven technology” — they are beyond but what is modeled is what you would get if you built a facility in 2010 using industry leading practices, had access to high volume buying discounts, and had a highly parallel workload that ran well on inexpensive, fairly low powered servers. For example, in this model we’re using a Power Usage Efficiency (PUE) of 1.45 but Google, for example, reports PUE across the fleet of under 1.2: Data Center Efficiency Measurements. Basically, though, there are a few commonly used ways of figuring prices. At the time I did this, I was modelling an internet search and map reduce fleet with light CPU and not much disk. Use this calculator to see what it really takes to build out a Tier 1, Tier 2, Tier 3 or Tier 4 data center. Hey Barry. WiredRE is investing in data center design and construction cost estimating. I could imagine the infrastructure costs one day eclipsing those of servers as server costs continue to decrease but we’re not there yet. The reason why the cloud transition is happening so quickly is the combination of better economics and the ability to move far faster and to try new ideas more quick, make the cloud a pretty obvious win. Could you clarify what goes into server expenses as you define it? If you do the math a data center buildout of a three-tier application (web servers, middle tier, load balancers, SAN) comes out to be much more expensive than a more or less identical, non-optimized configuration in IaaS (minus the SAN) — about half in my model — and with RI’s and some smart optimization you can get the cloud costs really quite small. I am just curious (apologies if you have answered this before, I am new to your blog), but what would be a healthy rule of thumb with regards to network admins salary and/or "people" compensation etc, vs the total costs of running a data center as a percentage (are you suggesting 2% as mentioned to Wayne above?). CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. The subject of real estate is usually treated as a ‘facilities’ based problem, and as such it is not one that IT generally gets involved in justifying, but so too was power treated in this manner at one time. All rights reserved. (The terms "cabinet" and "rack" are interchangeable.) What Are the Top Data Center Markets in the World? Power infrastructure: 20% It’s been too long since I was working with these data and the scale we are currently operating at gives some economies of scale in some dimensions that don’t easily apply elsewhere. I’ve frequently heard “how can the facility cost more than the servers in the facility – it just doesn’t make sense.” I don’t know whether or not it makes sense but it actually is not true at this point. What would be a reasonable average power draw (i.e. Cost centers include a company's accounting department, the information technology (IT) department, and maintenance staff. It turns out that power is incredibly important but it’s not the utility kWh charge that makes power important. Your email address will not be published. My sense is that for a general purpose enterprise-class workload $5k/server would be a reasonable baseline (give or take). Also having a backup datacenter at a central location (or extension offices as you called) could help in scaling to meet the capacity requirement. Its just really hard to offer general rules on revenue. You will need to import the … This approach allows us to compare non-comparable costs such as data center infrastructure with servers and networking gear each with different lifetimes. Both of these areas have proven to be important technology areas to focus upon and there has been considerable industry-wide innovation particularly in cooling efficiency over the last couple of years. Required fields are marked *. Keep in mind that by standard practice, a device's continuous power draw is no more than 80% of its maximum rating. Servers are purchased 3 to 5 times during the life of a datacenter so, when amortized properly, they continue to dominate the cost equation. Data center prices aren't always easy to understand. The cost of the data center largely depends upon the size of the facilities needed. Base station controllers, mobile switching centers, and branch office switching centers. It entails leasing an entire separate space, perhaps an entire building, exclusively for your equipment. Telecom “edge” deployment costs vary on the definition of the edge. Not really. Servers, data storage, network equipment: 40%. I know at AWS it’s our #1 focus and nothing gets prioritized ahead of security. In the model below, I normalize all costs to a monthly bill by taking consumable like power and billing them monthly by consumption and taking capital expenses like servers, networking or datacenter infrastructure, and amortizing over their useful lifetime using a 5% cost of money and, again, billing monthly. I’ve attached the spreadsheet in source form below so you can add in factors such as these if they are more relevant in your environment. 42 percent: Hardware, software, disaster recovery arrangements, uninterrupted power supplies, and networking. There has been a gradual shift in pricing models. does this look right? Hello James, very interesting article. The reason why I’ve moved from a 15 year amortization for infrastructure to a 10 year is the current rate of change. Frank, I agree, the outside-the-box infrastructure including wan infrastructure, net gear, wiring closets, and client devices consumes more power than the data centers on which the depend. Dell and HP have in their product portfolio cloud computing solutions. Costs are given at fourth quarter 2008 price levels, based on a location in south-east England. Others take a middle ground and work directly with original design manufacturers (ODMs)to have custom designs built and delivered. Also, what about bandwidth costs/security/hardware replacement (or is that bundled in to your assumptions above?). This doesn’t include admin staff costs. When you have millions of servers, is 10s of data centers all of the world you can justify and pay for a very high quality security team. The Amazon EC2 charge model is at:, 9-17-2017 This can be economical for customers who rarely have high data throughput rates but experience occasional bursts. Serverless Computing, Elastic Compute Cloud are showing promising innovations! Most workloads run on more expensive servers. Wayne, in your comment you mentioned that brick and mortar facilities are normally amortized over 27 to 30 years and this could lead to "IT and overall power consumption being a larger portion". The current rate of innovation in our industry is substantially higher than it has been any time in the past with much of this innovation driven by mega service operators. How data centers charge can involve some or all of the factors mentioned here in the data center costs breakdown. You Thanks. Several ways of measuring power consumption costs are in widespread use. 3. If you are talking to a cloud operator, ask them tough security questions and I suspect you’ll be impressed by the answers. On projects with which I’ve been involved, they are insignificantly small so don’t influence my thinking much. Generally, at scale, admin costs round to zero. 5) Other: 2% (4%), Using a 30 year amortization has a dramatic impact on overall costs but the change in percentages is less dramatic. The standard width for a rack is 19 inches, or 482.6 mm. Normally transitions in server-side computing take a decade. Even with far more scale and far more economic access to power and space, if NFV was to become super important, these facilities have nowhere close to the needed scale. Pricing per slot is called "per U.". 4) power: 15% (13%) Essentially, it models what was possible using the best ideas available at the time but not innovating, doing anything radical, or pushing the state of the art. I’m curious though on your thoughts about the “sticker shock” that some companies claim they are experiencing in the cloud. As I suspect you know, the challenge is the current rate of change. Monetizing the Edge: Colocation On-Premise, Yes, You can Have Your Data Center and Pay for it, too. should datacenters sell not the entire rack to clients but charge per node or per user and space, as this will be easier to calculate a cost of investment and maintenance? Many applications of compute have nothing directly to do with consumers and scale with declining costs. With too little, the equipment won't run reliably. I will really appreciate if you have any reference for cost distribution for small scale datacenters. Or they could decide “for the good of the network” to only connect Telco X branch extension offices directly and all non-Telco X extension offices might only be allowed to connect through the central network. A data center has multiple Internet connections for redundancy and bandwidth. SINGAPORE - Nasdaq-listed Equinix plans to build a fourth data centre in Singapore at an initial cost of US$85.3 million (S$116.6 million). Energy Cost is the E described in the pricing model above (Power Consumption × Utility Rate × PUE). Cross-connection. You buy or lease rack-mount servers, drives, routers, and other devices and bring them to the data center. Generally, the message stays the same: server cost dominates and power drives the bulk of the remainder. The measuring system finds the data rate which a customer's use doesn't exceed 95% of the time and uses that to calculate the bandwidth used. The model includes all costs “below the operating system” but doesn’t include software licensing costs mostly because open source is dominant in high scale centers and partly because licensing costs very can vary so widely. The reason this statistic is so useful in measuring data throughput is that is gives a very accurate picture of data center bandwidth costs. Or does that reflect the depreciation on the servers? It’s hard to beat cloud computing economics these days. The space a server takes up on a data centre's rack is measured in "U" units. 1) You used 165 W per server. ): 20% Custom portable solid state TB vs disc-as-needed=lower energy CPU-less constant over heat-less utility dependence A 1980 DC isn’t worth much. Considering the DRAN option, if operators already have infrastructure for compute, power and cooling at cell tower or aggregation layer, it won’t be expensive to add compute for 3rd party applications unless it hits the power, cooling and fiber limit. Are you wondering how much it will take to build your own data center or are you unsure if you have everything accounted for in your construction budget? A 1U device fits in 1.75 inches (44.45 mm) of rack height; so a 2U device fits in 3.5 inches, and a 3U device in 5.25 inches. A couple of years ago, I did a detailed look at where the costs are in a modern , high-scale data center. There is no question that small facilities are more expensive but it’s far from linear. Administrative costs are not included for the same reason. You can request one or more cabinets or a number of slots within a cabinet. Thanks James, great analysis. The state of the art has evolved a lot since that time and I’m out of touch with current state of the market pricing since, in the work I’m involved with, it’s all special very high volume pricing. Data center expertise; High data center high uptime; A simple data center pricing model that allows you to pay as you grow; Mulitiple carriers in a carrier neutral data center; No cross connect fees; Call Lifeline Data Centers at 317.423.2591 to learn how you can reduce costs while improving data center uptime. That’s considerably longer than I’m used to but let’s take a look at it. The solution is to put large facilities near to these so they can grow and there aren’t shortages of power and floor space. When I was maintaining the cost model, it was aimed at modelling costs for a high volume operator running on low cost, commodity servers using state of the art design practices but not innovating. 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