For the past six months, we have blogged about the various datacenter benefits from making the move to Software Defined Power. We’ve discussed how to minimize risks and increase datacenter energy optimization, improve resiliency and app uptime and meet the demands of datacenter design innovations.
All of this builds an increasingly persuasive case for why SDP should be part of every datacenter strategy. But if that’s not enough to compel action, perhaps a little show-and-tell will help.
To move from SDP’s physical benefits to fiscal ones, let’s take a page from the movie “Jerry Maguire”: Show me the money! VPS recently unveiled a TCO/ROI Calculator that speaks to the heart of the matter—dollars that can be saved for enterprise datacenters and increased revenue for retail colocation providers.
While enterprises and co-los approach power from different perspectives, both business use cases provide impressive SDP ROI opportunities. Starting with enterprise-owned datacenters, a TCO/ROI analysis can quickly establish a baseline for how to consolidate power distribution while removing space and cooling constraints.
With VPS’ Intelligent Control of Energy (ICE) software platform, power is consolidated by virtualizing and intelligently controlling the power plane. With ICE, it’s possible to recover and release stranded power to achieve higher rack density.
As explained in this Enterprise ROI video, the model starts by identifying a datacenter’s stranded power capacity as an opportunity for consolidation. After calculating the stranded power, VPS extracts the facility’s actual power utilization, which helps spot sources of stranded power and estimate how much can be recaptured using ICE.
Next, cost avoidance without ICE is calculated to access the additional capacity identified as stranded power. The capital cost of the new infrastructure then is added to maintenance and operating costs for a total build-out estimate. The costs for ICE, in the form of an annual software license, along with any required ICE-enabled hardware, provides the total cost of SDP.
As the deployment example suggests, this baseline analysis identified the potential release of 352 kilowatts of capacity based on current power utilization for 116 racks. The decision was made to release this capacity through the use of ICE peak shaving and dynamic redundancy.
While the TCO would be almost $1.6 million over five years, the savings are substantial. Deploying ICE would save capex of $5.35 million and annual opex of $2.66 million—for $18.67 million in costs avoided. That’s ROI of more than one thousand percent!
Equally impressive returns are evident in the colocation space, as explained in the colo video. Here the key driver is the ability to automate management of customer-level power usage during peak times in datacenters that have oversubscribed capacity of their infrastructure.
Deploying ICE empowers these service providers to be more aggressive about overselling power because ICE enables automated control. A pure software solution, ICE leverages many datacenter operational factors, including node capping and workload orchestration.
In a datacenter that is overprovisioning by 20 percent, the provider can increase overprovisioning for SDP customers to 40 percent. If the price per kilowatt is $2,500 annually and the provider averages 10 racks or 35 kilowatts per customer, profits are increased by $17,500 per customer per year. With 1,000 customers, the provider gains $17.5 million annually. Talk about show me the money!
For customers in the enterprise datacenter and colocation space, we recognize these ROI calculations are not one-size-fits-all solutions. Rather they are conversation starters about what’s possible if you think about power distribution from a different perspective.
What should be clear from these videos is SDP offers lots of opportunities. But remember, SDP is a platform; it doesn’t drive ROI by itself. The first thing that must be understood is the use case, and what you’re hoping to achieve through intelligent power distribution.
Did showing you the money get your attention? We hope so. And as the year goes on, look for us to add more use cases along with a “datacenter efficiency improvement kit” that reveals and identifies all the areas that can be improved. While this will show you the money, in the end, our mission is to help you operate the best and most power-aware datacenter possible.