Tuesday, 20 May 2008

sizing, accuracy and money

I went to see a new prospect today who was able to openly describe the difficulties they had in getting sizing right for new architectures. One of the biggest difficulties was in being able to communicate with their customer on workload projections; another was in being able to communicate to the service support teams the impact that these workloads would make to their environment. Net result? Systems which are over-specced in some tiers; and suffering from performance problems in others. Admittedly, some of those performance problems were non-predictable; but even focusing on the over-sized capacity could save them money.

How much?
Typical TCO for a typical small server can be around €10k EUR or £8k GBP - per annum; if you pay for this yourself you might see this broken down into categories:
12% hardware + 8% software + 9% installation + 60% operations support + 11% service/maintenance

For accounting purposes; assets like compute capacity are often written down over a 3 year lifespan; so that typical small server would have a total cost of €30k EUR or £24k GBP

All of a sudden; eliminating a few servers can start to result in big savings! Taking 10 small servers out of your datacentre this year will save you €300k EUR or £240k GBP.

mailto:robert@limbrey.net for more on TCO calculation.

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