Datacenter Economics : Analyzing Challenges and Opportunities

© 2011 Wipro Ltd - Confidential

Datacenter Economics : Analyzing

Challenges & Opportunities

© 2010 Wipro Ltd - Confidential 2

© 2009 Wipro Ltd - Confidential 2 © 2011 Wipro Ltd - Confidential 2

3

1 Overview

Survey Findings

2 A Wipro and OutsourcingCenter Survey

Agenda

4 Key Takeaway


Overview


An Overview

As data volume expands and data becomes more unstructured, a datacenter management

strategy must be developed during early stage of challenges

Variabilization of technology is essential to move to a variable cost model, helping

organizations to enhance agility, drive efficiency, optimize delivery and lower unit costs.

Organic growth and mergers & acquisitions have led to geographic disbursement of

datacenters – this poses sever challenges like –

•Disparate technologies, including a wide range of servers, some old, some new

•Back-up, tracking and data management challenges

•Software challenges like inoperability due to variation of application across

different locations

Recessionary times call for greater ways to reduce IT costs.

The Current Scenario…


A Wipro and OutsourcingCenter Survey


A Wipro and OutsourcingCenter Survey

To determine the current state of organizations’ data centers as well as

explore the attitudes and challenges towards data center optimization.

OBJECTIVE

SURVEY PARTICIPANTS

The survey included 75 CIOs and Heads of IT from Fortune 1000

companies across US, Europe and APAC. The participants represented a

range of industries including retail, financial services,

transportation/logistics, manufacturing, healthcare and

telecommunications.

While not a comprehensive picture of how organizations from various industry segments

are currently addressing their data center challenges, the survey` findings point to some

general trends in this area.


Participants Profile

43

9 6

17

25

Annual Revenue (%)

> $1 Bn

$500 Mn -

$1 Bn

$300 Mn -

$500 Mn

$100 Mn -

$300 Mn

< $20 Mn

Roughly a quarter (25.8%) of organizations were

large enterprises, with more than 20,000

employees

Slightly more than 60 percent of survey

participants belonged to organizations with very

healthy IT budgets

45.2% of participants reported that their annual

IT budget for 2012 is more than $50 million

43.8% of participant organizations have revenues

in excess of 1bn USD


Survey Findings


Findings

53

16

31

Yes No Maybe

View datacenter strategy as key impact to

business (%)

A majority of organizations of surveyed

participants view datacenter strategy as a key

impact to business

However , survey members from the

manufacturing industry did not feel that a data

center strategy impacted business

39 42

3 3

13

1 to 2 3 to 5 6 to 10 11 to 20 > 20

No. of datacenters operating (%)

Organizations operating in multiple markets, for

across APAC, including Australia, Japan, India or

in Europe or Latin America have multiple

datacenters

Organizations find multiple data centers very

expensive and outweighs some of the benefits of

localization


Findings

28

72

Awareness of detailed cost breakdown of

each datacenter (%)

Yes

No

A vast majority (72%) are unaware of detailed

datacenter costs. Lack of this knowledge will

lead to organizations spending on less critical

things

Cost reduction methods among surveyed

respondents included server and storage

virtualization, process standardization, etc.

Outsourcing, opting for a managed

service provider was top cost-reducing

measures

47 53

Adopted alternate models for datacenter

management

Yes

No The biggest challenge for organizations is to

actually how the measures will improve

operations and still provide an acceptable ROI

Participants were almost evenly split on their

adoption of alternative models for data center

management


Findings

Reason % of respondents

Lack of Measurable ROI 55%

Current lack of skill set to manage change

32%

Data Security Concerns 29%

Lack of budgetary resources

23%

Major Challenges to move to alternate models

Lack of measurable ROI is the biggest identified roadblock but since

most respondents were unaware of the elements of cost, they were

not in the position to accurately gauge financial returns

Apart from the above, resistance to cultural change within the

organization was also cited as a reason by survey respondents to hold

back from implementing an alternative data management model


Takeaways


Key Takeaways

In order to meet current data center challenges, organizations must take measures

to consolidate data centers and look at outsourcing arrangements and alternate

models of data center management.

However, because carrying out a data center strategy typically requires a large

investment in time and costs, organizations today are making tactical decisions

instead, which have minimal impact

Using new methods for standardizing, consolidating, virtualizing and automating

processes, organizations can transform their data centers to be lean and energy

efficient. Transforming the data center can enable growth, minimize risk, increase

speed and agility, and lead to dramatic cost reductions.


Wipro Advantage

Wipro has an array of offerings that have been developed to help organizations from

all sectors overcome today’s data center challenges.

Wipro’s data center services have been designed to help customers reduce IT

infrastructure and operational costs, achieve higher service and performance levels

and manage IT infrastructure efficiently and effectively.

Wipro is able to variablize client IT costs while delivering next-generation services.

Wipro Advices a Three-Step Approach to Data Center Economics:

•Cost Transparency: Using are tools and technologies for a breakdown of data center costs specific

to each organization.

• Data Center Consolidation: Outlining application and process rationalization, asset consolidation

and the migration approach.

•Modular Data Centers: In their consolidation evaluation process, organizations should consider

modular, energy efficient data centers. Depending on the current state of the data center, an

organization could implement a partial or full modular strategy.


Wipro Datacenter Services overview

•Hosted solutions across Wipro’s 11 global data centers located in USA

& Europe & APAC

•Over 600,000 sq ft capacity, with 300000+ sq ft raised floor

•Partner relationship with Major data center players across USA, Europe

and APAC

•8 Global Command Centers(GCC) located in multiple geographies


WIPRO Datacenter Specialized Offerings

WIPRO DC

Specialized

Offerings

IT360™

FluidState™

Cloud –

IaaS, SaaS,

PaaS

Green

DCs

DAI™


For more details please visit the link below

http://www.wipro.com/Documents/Wipro_Alsbridge_Outsourcing_Survey_Report.pdf

Or contact [email protected]



mailto:[email protected]


Wipro set up the Council for Industry Research, comprised of domain and

technology experts from the organization, to address the needs of customers.

It specifically surveys innovative strategies that will help customers gain

competitive advantage in the market. The Council, in collaboration with

leading academic institutions and industry bodies, studies market trends to

help equip organizations with insights to facilitate their IT and business

strategies.

For more information on the Research Council visit www.wipro.com/insights

or mail [email protected]

About Wipro Council of Industry Research

http://www.wipro.com/insights

mailto:[email protected]


Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a

leading Information Technology, Consulting and Outsourcing company, that

delivers solutions to enable its clients do business better. Wipro Technologies

delivers winning business outcomes through its deep industry experience and

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Technologies has over130,000 employees and clients across 54 countries.

For more information, please visit www.wipro.com

About Wipro Technologies

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© 2011 Wipro Ltd - Confidential

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Date post:	07-Nov-2014
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