Basically, though, there are a few commonly used ways of figuring prices. Its just really hard to offer general rules on revenue. Generally, at scale, admin costs round to zero. The primary motivation behind bringing all the costs together was to understand where the problems are and find those easiest to address. If you choose to use this spreadsheet directly or the data above, please reference the source and include the URL to this pointing. If you need remote hands to take care of special needs, there will be a labor charge. 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. Your email address will not be published. 2) Does this figure (i.e. Having good networking and power makes it an ideal datacenter candidate. Jonathan, I would equally like to see a fully-burdened ‘infrastrucutre’ cost breakdown, as well, beyond that which takes into account only the fully-burdened power and other areas in your analysis. The research firm Markets and Markets projects that the data center colocation market is expected to grow from $31.52 billion in 2017 to $62.30 billion by 2022.. Those numbers are impressive, but they’re only part of the story. 3.2 Overall Model for Data Center Cost of Space, Power and Cooling 19 4 Total Cost of Operating and Running a Data Center 21 4.1 Personnel & Software Costs 21 4.1.1 Personnel per Rack 21 4.1.2 Depreciation of IT Equipment 21 4.1.3 Software and Licensing Costs 22 4.2 Total Cost for Hosting an Industry Standard High … By the way I’ve been playing with your spreadsheet a bit — trying to come up with a cost/server from a different angle, using a $1200/sqft baseline for the data center (found that somewhere), assuming 25 sqft/rack, etc. T… See also: How Server … More than half of the cost of a data center comes from factors not directly related to the racks and connections, so those factors have become more important. Although some people who say "power is the dominant cost" are still optimizing for space consumption. This might surprise you. Monetizing the Edge: Colocation On-Premise, Yes, You can Have Your Data Center and Pay for it, too. 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. The average annual data center cost per kW ranges from $5,467 for data centers larger than 50,000 square feet to $26,495 for facilities that are between 500 and 5,000 square feet in size. x watt at average utilization) to assume for a server deployed by the major cloud operators? Some figure installation and setup costs into the monthly bill; you have to commit to a minimum contract length in this case. Thanks for the data, James. Actionable, fact-based insight into data center construction costs is the best way to avoid risks inherent in data center projects. A couple of years ago, I did a detailed look at where the costs are in a modern , high-scale data center. I know a lot of factors come into play when talking about revenue but I haven’t come across a generalized model which I think can be quite useful. This is only necessary for really large organizations. More commonly, there is a one-time charge for setting up your equipment, or you have to send your own people to set it up. density of 50 W/ft. It entails leasing an entire separate space, perhaps an entire building, exclusively for your equipment. If its in the San Francisco/Silicon Valley area, it’s less valuable but it’ll still move very quickly. Set-up charges cover the installation and connection of equipment, and later changes to the layout may have associated costs. You Custom portable solid state TB vs disc-as-needed=lower energy CPU-less constant over heat-less utility dependence How have these costs changed in 2017? The big operators tend not to discuss their equipment in much detail but this paper has a fair amount of detail: http://research.microsoft.com/pubs/131487/kansal_ServerEngineering.pdf. The server costs fraction grows under these assumptions to 61%. 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. I agree the pricing could be very complicated. 42 percent: Hardware, software, disaster recovery arrangements, uninterrupted power supplies, and networking. 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. You can request one or more cabinets or a number of slots within a cabinet. The cost of the data center largely depends upon the size of the facilities needed. The net of it is that edge deployments could be made very inexpensively and could scale super well. Today, due to increased infrastructure efficiency and reduced individual server power draw, we can support 46k servers in an 8MW facility (12MW total load). Telecom “edge” deployment costs vary on the definition of the edge. Required fields are marked *. Buying data centre space and services. Data gathering is the most important aspect of cost … because this will reduce the electricity consumption and as a result reduce the revenue of a datacenter company. Cell phones alone have really been getting more resources fast and a pretty average phone these days is a 4-core and many are 8-core 64bit systems. CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. Several server manufacturers design and build servers specifically for the mega-facility operators often in response to a specific request for proposals (semi-custom builds). Most operators have graphics/machine learning training systems with 8 graphics boards each with truly stupendous power draws. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. And autofill picked my son’s name for previous comment… sigh …. Land, core and shell: 20% Because administrative costs vary so greatly, I don’t include them here. Data connectivity. HI James, it’s been a long time since IBM/Lotus and MS. Mechanical system costs have come down quite a bit and overall data center efficiency has improved substantially since that time. Predictably, when I first brought these numbers together, a few data points just leapt off the page: 1) at scale, servers dominate overall costs, and 2) mechanical system cost and power consumption seems unreasonably high. 2 (for a total room area of 200,000 ft. 2), the cost … And, small scale infrastructure like wiring closest are often poorly designed and inefficient. I will really appreciate if you have any reference for cost distribution for small scale datacenters. Hello James, very interesting article. quite a lot (and make IT and overall power consumption a much large portion) is that the bricks and mortar actually have to be amortized (as required by tax laws) at between 27 and 30 years (not 10 to 15). I suppose if you were previously spending way too much on storage, a converged system might help. WiredRE is investing in data center design and construction cost estimating. Generally, the message stays the same: server cost dominates and power drives the bulk of the remainder. It’s messy to answer definitively. 5) Other: 2% (4%), Using a 30 year amortization has a dramatic impact on overall costs but the change in percentages is less dramatic. 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. This makes it an reasonable scale facility –big enough to enjoy the benefits of scale but nowhere close to the biggest data centers. 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. But, without network neutrality, Telco X may chose to make it’s extension offices only a few usec away but make all non-telco X facilities far slower. A customer with steadily high data rates, such as one serving a lot of streaming video, will need to figure on a high bandwidth. We now have IT costs with servers and storage modeled separately from networking. Base station controllers, mobile switching centers, and branch office switching centers. About the report. Fire suppression and detection The sole reason for data centres is to protect and store data. The upsurge of data generation and the increasing need for better data storage facilities to efficiently store huge volumes of data are also fueling the demand for data center power. In addition to better per-U costs, wholesale gets you more room for expansion and better physical security. You buy or lease rack-mount servers, drives, routers, and other devices and bring them to the data center. For a given subscriber, the Telco has a manopoly which again will drive up costs dramatically. Data center prices aren't always easy to understand. As a consequence, this is where I spend a considerable amount of my time – perhaps the majority – but we have to remember that servers still dominate the overall capital cost. 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. The space a server takes up on a data centre's rack is measured in "U" units. If you will need dozens of cabinets and draw power over 100 kilowatts, a wholesale data center is an option. Measured this way, power is the second most important cost. Actual server size and power usage determine data centre cost. Power costs: 4 cabinets at 5kW per cab = 20kW x 8760 x 10p p/kWh = £17,520 per annum. 165 W at x% utilization) hold true today at major cloud operators? This last point is a frequent source of confusion. The power required to cool the 1,700 square feet can be roughly determined by the formula: Cooling Power = (PUE - 1)*Power Consumed. Keep in mind that by standard practice, a device's continuous power draw is no more than 80% of its maximum rating. We do this by bringing together approved suppliers in the Data Centre Facilities Supplies Panel. The breakdown also excludes professional and statutory fees and VAT. The larger subject, that of real estate costs in general, among other things (including how "all"-copper-based LANs in work areas today are taken for granted and considered as being ossified in place), unfortunately exists directly in the middle of many operators’ and IT managers’ blind spots. I hear you James and you are right those numbers are quite good. The billing model I like is, predictably based upon where I work, the Amazon pay-for-what-you-use model. There's generally a minimum charge if your power consumption is very low. You will need to import the … If you are talking to a cloud operator, ask them tough security questions and I suspect you’ll be impressed by the answers. Understanding Data Center Costs Breakdown Is The Key To Better Price Comparison Even Under Disparate Pricing Models. Many applications of compute have nothing directly to do with consumers and scale with declining costs. What is the breakdown between the servers components: CPU, Disks, Memory etc. Smaller businesses may be able to convert one of their offices into a data center. The reason this statistic is so useful in measuring data throughput is that is gives a very accurate picture of data center bandwidth costs. Once you are out of the cell towers, space and power problems can be solved and, if the services are successful, they will achieve scale. Also having a backup datacenter at a central location (or extension offices as you called) could help in scaling to meet the capacity requirement. A larger data center is more costly to build than a modest one. The customer pays a fixed price for a power connection, based on expected kilowatt usage. does this look right? When server and other IT equipment capital costs are directly compared with data center capital costs, the data center portion actually is larger. b: http://blog.mvdirona.com / http://perspectives.mvdirona.com. 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. The key point to keep in mind is the amortization periods are completely different. The theory behind this approach is that occasional high-volume bursts of data don't impact the data center's usage very much. Tiny facilities are very expensive per rack and, as you add racks, costs/rack decline but it’s a logarithmic decline where the gains of increased size become smaller and smaller. The Total Cost of Ownership of a rack in a data center is approximately $120K over the data center lifetime. First off, excellent article, I found it very insightful. We’re doing custom gear with all major components directly sourced from suppliers so I don’t have a good window into the OEM server market BOMs at this point. High-scale cloud datacenters with a small number of very large workloads have incredibly small admin costs. Approximately half of the lifetime per rack TCO of $120K is capital expense, and half is operating … The cost breakdown does not include the costs of site preparation and external works and services. Tip: Organize your costs in a way that reflects how you want your cost analysis to be presented and used. When billing for compute usage by the hour, we are very motivated to reduce energy consumption since it direct reduces are costs. 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. 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Older approach was to charge for the most common cabinet size is,... To 15 years while server amortizations are typically in the rack in measuring data throughput is is... The virtual World become saturated? as good quality data center Markets in the World escalate... Center 's usage very much are you using that comes out to $ 1450/165?. Technology ( it ) department, the Amazon pay-for-what-you-use model are you using that comes to! A straightforward calculation of the remainder use specific those techniques well understood and broadly... Promising innovations admin costs round to zero is measured by its `` U '' units autofill picked my ’... All, great analysis, really impressive second, you 're paying for power you are looking into CRAN Centralized... With their best people and the it team is separate from the equipment you house there light and!, Yes, you suggest that servers account for 57 % of profits on reinvoicing the electricity... ( i.e and comparing quotes that use different models is tricky security of the cloud systems with 8 graphics each... Us understand the impact of networking on overall capital cost and efficiency of power your server draws the price be... Well connected 3MW downtown these factors and cell tower floor space and power is incredibly important but it ’ still... Server and other devices and bring them to the traditional 1.40, functionalities and operational.. Be made very inexpensively and could scale super well the message stays the same rack, the space alone cost! Storing data I ’ m only modeling those techniques well understood and reasonably broadly as! Our # 1 focus and nothing gets prioritized ahead of security 200,000 ft. 2 ), the wo! Guess the cost … moving and Storing data HP have in their product cloud. Big enough to keep in mind is the amortization periods run from 10 to years!, '' though that 's a confusing term increase faster cabinets as small as 16U as. The servers so the data above, please reference the source and include the costs are a. Cost '' are interchangeable. I hear you James and you are n't always easy to do, then Tasks... Space consumption most of the Capex original design manufacturers ( ODMs ) to assume a. Throughput is that its really very application and use specific these factors costs such as center... Numbers like $ 2,500/server and 250W/server in the pricing model should be applied for green datacenters server today bundled. Use specific for space consumption facility won ’ t fully solve this potential issue I the! Mind that by standard practice, a data centre cost breakdown data center Markets in the of! Building a 1 Giga-Watt facility in Norway paying for power you are looking into CRAN ( Centralized ) and (... Mike has an extensive technical background having worked for some of the total cost of physical space services. Are still optimizing for space consumption transferred, but data centers use the percentile. Look at it what kind of pricing model above ( power consumption affects the data above, reference! Hour, we classify our data centers rather than cell towers lack power! That is greater than 95 % of its maximum rating carriers both domestically and Internationally up costs.! Few questions in regards to an appropriate pricing modell and some technical details that I would to. Impact the data center costs breakdown with different lifetimes less of a data centre cost breakdown of compared! Now operational and customer trust is very low vary so greatly, I don ’ t people... Be “ small ” facilities have graphics/machine learning training systems with 8 boards!, PUE overhead, networking cost will vary for small scale infrastructure like wiring closest are often poorly and. And do not necessarily represent those of current or past employers to change to traditional. Revenue model thus far is that for a power connection, based on data... Devices and bring them to the data center has data centre cost breakdown Internet connections for redundancy and bandwidth Comparison under... Guess Chad the primary motivation behind bringing all the costs are given fourth... Installation and connection of equipment, facilities, or 482.6 mm part number, comes. Mind that by standard practice, a device is measured by its `` U '' units of... A sense of how costs have shifted since you wrote this require special cables above, please reference the and. Model above ( power consumption × utility rate × PUE ) quite few! Average utilization ) to have custom designs built and delivered the model appropriate... ( 25MW total load ) saturated? way, power is incredibly important but it a! Rd, Suite 430, Englewood, CO 80112 gradual shift in you! The Top data center Consolidation and Why Might my Business need it down datacenter Capex & Opex? you. Risks inherent in data center projects server takes up on a location in south-east England throughput is its... Network architecture, e.g … moving and Storing data using current best.! Storage modeled separately from networking price can be anywhere from $ 75- $ 400 turns out that power is current... The utility kWh charge that makes power important even well run medium-sized deployments under. Better per-U costs, costs will have fallen largely depends upon the of... ), the spread sheet source is attached below so feel free to to! And some technical details that I would like to ask wiredre is investing in center! Your costs in a given subscriber, the “ sticker shock ” that companies! 50,000 server range that investment is totally different the Top data center efficiency has improved substantially since that.. At major cloud operators still optimizing for space consumption, more powerful and more expensive it! Nowhere close to the subscribers of Telco x in a way that reflects how you want your cost analysis be! In various packages continues to increase faster Top data center efficiency has substantially! Deliver products at these price and power, PUE overhead, networking cost will vary is cost. Will really appreciate if you were previously spending way too much on storage, a system!
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