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Maximizing it budget

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Maximizing Your IT Budget Steve Carlson, IT Operations Manager August, 2011
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Page 1: Maximizing it budget

Maximizing Your IT BudgetSteve Carlson, IT Operations Manager

August, 2011

Page 2: Maximizing it budget

IntroductionIntroduction

Today’s Presenter:

Steve Carlson, IT Operations Manager 

for Windstream Hosted Solutionsfor Windstream Hosted Solutions

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Page 3: Maximizing it budget

Windstream Corp. Snapshotp p

S&P 500 company with full suite of IP-based voice and data services, MPLS networking data center and managed hosting services and communication

• $4 billion in annual revenues• $4 billion in annual revenues

networking, data center and managed hosting services and communication systems to businesses and government agencies

• $4 billion in annual revenues

• 10,000 employees

• 29 states and District of Columbia

• $4 billion in annual revenues

• 10,000 employees

• 29 states and District of Columbia

• Data centers: 13

• 60,000 route miles of local 

• Data centers: 13

• 60,000 route miles of local and long‐haul fiber networkand long‐haul fiber network

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Windstream FootprintWindstream Footprint

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Trusted by Top BrandsTrusted by Top Brands

Biotech/Healthcare Retail/ConsumerTechnology Banking/Finance Digital MediaBiotech/Healthcare /Technology Banking/Finance Digital Media

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Areas of FocusAreas of Focus

Strategic OutsourcingStrategic OutsourcingBuild vs BuyDedicated environmentDedicated environmentStoragePurchasing

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Strategic OutsourcingStrategic Outsourcing

Economic downturn has created challenges for manyEconomic downturn has created challenges for many organizations

Limited budgetsReduction in future headcountReduction in future headcountIncreased competitive pressure 

Strategic outsourcing can free up resources to focus on the core businesson the core business Areas to explore when outsourcing 

ColocationManaged ServicesSystem managementCloud ComputingDBA services

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Assess Your EnvironmentAssess Your Environment

Understand the trueUnderstand the true requirements of your applications

Growth potential of the applications

Look at the types of data and tier your storage

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Build vs BuyBuild vs. Buy

Redundant Internet

Consider the costs of building Data Center Space Redundant Internet Colocation

100 square feet of data center space = $120,000

Redundant Power

3 Cabinets of Colocation = $3,000 / Month

HVAC

Office Space v. Warehouse Space

Human CapitalHuman Capital

Facilities Cost

Maintenance

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Data Center Overviewa a e e O e e

Tier II and III, SAS 70 Type II compliant data centers

System + System uninterruptible power supply (“UPS”) systems, and carrier neutral network connections

Heating, ventilation and air conditioning (“HVAC”) systems to maintain temperature and humidity within strict toleranceshumidity within strict tolerances

Hardened facilities with automated facility management tools

Fire control with early warning smoke detection, clean agent suppression and/or dry‐pipe sprinkler systemsprinkler system

24 x 365 NOC & facilities staff provide for high security externally and internally

Service Level Agreement (“SLA”) backed guarantee of 100% power availability

Modular builds most expansions are less than four years old (10k sf or larger)Modular builds ‐most expansions are less than four years old (10k sf or larger)

24‐36 in raised floor no open systems or racks

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Solution ComparisonSolution Comparison

Redundant Internet

On-premise

$218,000 CAPEX$35,416 OPEX (M)

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StorageStorage

One of the most significant cost areas f ITof IT

One of the mostOne of the most misunderstood areas of IT

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Storage OptionsStorage Options

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Storage ExampleStorage Example

Logs:Data:

800 GB2 TB

@  3.99/GB@  3.99/GB

/

Logs:Data:

800 GB2 TB

@  3.99/GB@  2.25/GB

Archive: 800 GB @  3.99/GB

$14,364

Archive: 800 GB @  0.75/GB

$8,292

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Data Dedup ExampleData Dedup Example 

Backup Application

Backup DatapFile System (Open) 535 GB 3% chg rateOracle (Open) 3,720 G9 GB 15% chg rateEmail (Open) 2,040 GB 2% chg rateSQL (Open) 305 GB 5% chg rate( p ) gUnity (AS/400, File System) 1,750 GB 3% chg rateJDE (AS/400, File System) 650 GB 3% chg rateA/R Imaging (AS/400, Comp) 300 GB 3% chg rate

Backup PolicyFull FriIncremental every other day of week

Retention 30 days

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Retention 30 days

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Data Dedup Example SavingsData Dedup Example Savings

Data Required prior to DeDupe  85.6 TBData Required after DeDupe  11.7 TBTotal Savings  73.9 TB g

Compression Ratio 7.3:1Savings 86% Storage Savings

Repl bandwidth – no dedup  1063 MbpsRepl bandwidth – w/ dedupe 64 Mbps94% Bandwidth Savings

Net Result: Substantial Savings

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Net Result: Substantial Savings in Storage & Bandwidth Costs

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Purchasing StrategyPurchasing Strategy

Who are you buying from?

Wh t t f l ti hi dUnderstanding this 

What type of relationship do you have with your suppliers?

will give you access to COST pricing, not 

LISTUnderstand the registration process

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Purchasing Strategy

E l S it A li Li t $41 390 00

Purchasing Strategy

Example:  Security Appliance – List: $41,390.00

List Price 100% $41,390.00

Typical Discount using a VAR  20‐25% off list $31,042.50

Cost 40% off list $24,834.00Cost  40% off list $24,834.00

Registration 10% off cost $22,250.60

S i l P i i D dSpecial Pricing  Depends

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Purchasing StrategyPurchasing Strategy

How plugged in are you to company‐wide purchasing? Being involved in IT 

related purchasingCentralized procurement dept?Combine purchases Get maintenance attached to

related purchasing will ensure 

consistency  and value company‐wideGet maintenance attached to 

contracts on the front end Ask for training credits

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SummarySummary

IT is everywhereIT is everywhere.A strategic IT organization benefits the entire business Assess ALL environments across the organization before making decisions

Assume nothing.Don’t settle for “I think so”Push for extras and deeper discounts

Focus on your core business.Explore outsourcing all non‐core i iti ti /f tiinitiatives/functions

One size never fits all.Utilize best practices that fit your environmentenvironment

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SummarySummary

Q&AQ&A

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Thank you!Thank you!Thank you!Thank you!

For more information, contact your For more information, contact your WindstreamWindstreamt ti i itt ti i it i d t b ii d t b irepresentative or visit representative or visit windstreambusiness.comwindstreambusiness.com

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