TCO for a Data Center
- January 26, 2010
Before starting a business it is important for you to predict the Total Cost Ownership (TCO). TCO becomes more important in the business of Data Centers and Colocation facilities. For the data center you need to measure the total cost ownership for network rooms and complete physical infrastructure.
TCO helps you in predicting your future decisions and also what is your Return-on-investment and also TCO helps you in controlling your costs. Like other businesses there are no special methods of predicting TCO for Data Centers. Instead there are simple methods of calculating operating expenses and other capital investments which will help you find out total cash expenditure.
There is a disadvantage for this technique however it is unable to provide you complete utilization of the equipment. Say for example there are two Data Centers India same in infrastructure and both of them are using 500kW of energy. First data center is using all the power and space and housing large computer systems and equipments, while the other is just housing few racks.
Now the cash of operating is same for the two data centers, but the revenue generated and the investments returned are completely different. For the first data center whole TCO is divided amongst the large IT equipments. On the other hand in the second data center whole weight of the operating cost is on those few racks.
In such case if you calculate TCO for network room infrastructure or complete physical infrastructure from the standpoint of positive work done in relevance of total IT equipment supported underperformance can cost you very much and your profit ratio will fall. most of the processes to find out TCO starts with calculating TCO per square foot of data center or per kW of data center. However these kind of scales fails when it comes to determining useful work done.
One unit of data center which is easily and commonly understood by rack unit. From a facility point of view all the important parts of a data center can be well managed like area, power and cooling. Now one can easily understand quantity IT equipment and the functionality that can be fitted in a rack. B
ecause of the ease which is provided by racks to the customers and owners in understanding the facility performance, facility infrastructure is expressed in terms of “Rack Units.” So the actual definition of the term “rack” is rack enclosure or open frame rack. According to researches normally data center can only utilize only 30% of its capacity. Although there are some data center which utilizes up to 90% of energy, but then there are some which are using only 10% of energy.
Utilization of power in a data center fluctuates during its lifetime in a relative consistent style. For the first five years power required grows on a regular level and then remains constant later on. To find put Total Cost of Ownership (TCO) you require a large data. TCO calculates average cost of installation, equipment, operating and engineering costs. To determine all these factors you need exact data of power rating, life cycle, power density, redundancy, and average rack power.
Find out all these factors accurately and you will be able to calculate TCO for your data center services. Average cost utilization for a data center looks like that – Racks 2%, Service 15%, space 18%, Monitoring 2%, Project Management 2%, Power 20%, Cooling 5%, Installation 15%, and Electricity 20%.
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