Craft an EndtoEnd Data Center Consolidation Strategy to

Craft an End-to-End Data Center Consolidation Strategy to Maximize Consolidation Benefits from data center consolidation is not guaranteed. Effective planning is the key to capture consolidation benefits. Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997 -2016 Info-Tech Research Group Inc. Info-Tech Research Group 1

ANALYST PERSPECTIVE Data center consolidation is like building Rome – it wasn’t done in a day! Data center consolidation has consistently ranked as one of the top-ofmind projects for CIOs across the globe. Consolidation has been popular due to its ability to provide a wide range of cost and efficiency improvements for the data center. While there is a whole host of benefits, these benefits are by no means guaranteed. Successful data center consolidation is heavily reliant on effective project planning. This includes gathering relevant business requirements, inventorying equipment and applications, and establishing effective stakeholder communications. Organizations that forego planning will often experience additional unforeseen costs and erode consolidation benefits. Maximize the chances of consolidation success by allocating 12 -18 months for planning the data center consolidation. David (Da) Xu, Senior Consulting Analyst, Infrastructure Info-Tech Research Group 2

Our understanding of the problem This Research is Is Designed For: This Research Will Help You: üIT and infrastructure managers who are üUse a structured consolidation framework to responsible for executing a data center consolidation project. üOrganizations that are currently struggling with high infrastructure costs and need to find ways to meet a tighter IT budget. üIT managers trying to contain data center sprawl. mitigate risks during consolidation and maximize your chances of realizing consolidation benefits. üCreate a detailed TCO analysis that builds into a strong business case for the consolidation project. üEstablish a process to decommission older facilities and help manage sprawl. This Research Will Also Assist: This Research Will Help You: Them: üIT managers who want to establish a üUnderstand the importance of effective project repeatable framework for future data center consolidation projects. üOther business managers who will be impacted by the consolidation. planning for the consolidation project. üFamiliarize themselves with the current service levels that IT is providing and future service levels after the consolidation. Info-Tech Research Group 3

Executive summary Situation Info-Tech Insight • Data center operating costs continue to escalate as organizations 1. Effective planning which focuses on gathering business requirements and inventorying equipment/applications is key to consolidation success. • struggle with data center sprawl. The complexity of data center consolidation makes it difficult for consolidation projects to get off the ground. At the same time, organizations that do start consolidation often overlook the discovery and planning phase of data center consolidation. Complication • Despite consolidation being an effective way of addressing sprawl, it is • often difficult to secure buy-in and funding from the business. Many consolidation projects suffer cost overruns due to unforeseen requirements and hidden interdependencies which could have been mitigated during the planning phase. 2. Garner executive support for the data center consolidation project by presenting a well-rounded business case complete with quantitative and qualitative benefits. 3. Regardless of the size and magnitude of the consolidation, a detailed communications plan is required. Resolution • While data center relocation projects can be expensive, in the long run, the benefits of reducing operating costs will often • off-set the initial capital expenditure. The key to recapture consolidation benefits is to establish an end-to-end consolidation strategy which can identify and mitigate relevant risks before execution. Project management and planning is critical to the success of a data center consolidation project. Info-Tech recommends 12 -18 months of planning to help mitigate risk. Organizations that expend more effort on a detailed consolidation strategy for each individual piece of infrastructure will consistently be more successful in capturing consolidation benefits. Info-Tech Research Group 4

Capture the key benefits of data center consolidation Data center consolidation continues to rank as one of the highest priorities for CIOs. Understand the key benefits that justify the need for data center consolidation. Increased control: By reducing the number of devices that need to be monitored and maintained, the IT team will have an opportunity to standardize and update infrastructure for greater efficiency. Cost savings: Consolidating data centers has the potential to reduce the following: 1. Operating costs 2. Facility costs 3. IT personnel costs 4. Hardware costs Improved security: Physically security will naturally improve when there are fewer sites and assets to manage. Also, reduced connections between facilities will make it easier to monitor and control security entry and exit points. Improved resilience: As part of consolidation, automation of business-critical processes and systems becomes possible. This can improve overall resilience by improving process consistency and enforcement of regulations. Info-Tech Research Group 5

Data center consolidation can boost the bottom-line and also improve efficiencies CASE STUDY Situation • In 2009, the Broadcasting Board of Governors (BBG) had 11 data centers. • The infrastructure sprawl was near unmanageable. In 2009, the agency owned eight storage systems from eight different vendors. • The agency started a threeyear plan to consolidate IT infrastructure. • The goal was to reduce the 11 data centers down to three. The Broadcasting Board of Governors Result • In 2011, BBG was able to achieve its goal and is now operating three data centers: o One dedicated to video processing. o A second for redundancy. o A third to host the virtualized server environment and storage hardware. • The BBG was able to save $650, 000 by eliminating maintenance contracts and retiring aging IT equipment. Insight • The price-to-performance ratio of IT infrastructure should always be front of mind for any IT shop. Consolidation will often provide an opportunity for organizations to save on infrastructure costs and reallocate that budget to more innovative endeavors. • Aside from just bottom-line impact, consolidation can also improve security due to the reduced number of updates and patching required for the system. Source: “Federal Data Center Consolidation Initiative Offers Agencies Hidden Benefits”, Fed. Tech Magazine Info-Tech Research Group 6

Understand the key risks of data center consolidation Consolidating data centers is not without risk. Countless examples of organizations across different industries have failed to realize the benefits of consolidations due to poor planning. Transition risk: Uncoordinated service outages during the consolidation may disrupt missioncritical applications for end users. Mitigate this through effective planning. Application compatibility: Legacy applications may not be able to operate on the new infrastructure. This will also lead to unplanned downtime and result in unnecessary costs for the organization. Performance demand: The consolidated data center network infrastructure must be able to support the increased application workloads and ensure that applications can meet SLAs. This is critical for day-to-day service continuity and disaster recovery. Personnel management: Whether it is laying off staff, hiring new staff, or transitioning current staff to new roles, personnel management is critical to the success of consolidation. Info-Tech Research Group 7

Cost savings were not automatic for the Federal Data Center Consolidation Initiative (FDCCI) CASE STUDY Situation • While the BBG was a success case for the FDCCI, not every initiative was as successful. • Since FDCCI’s launch in 2010, many agencies have struggled to realize the anticipated benefits of data center consolidation. • One of the top challenges for participating agencies was to quantify cost savings. This challenge then hampered mission-owner buy-in and budget allocation for consolidation. Result • Due to the challenges and risks that federal agencies faced, progress has been difficult. • The majority of federal IT pros gave their agencies’ consolidation efforts a “C” or below. • Fifty percent of agencies believe that their agency will not meet the designated deadline. • Fifty-three percent of agencies were unsure if the cost of closing data centers outweighs the savings. Insight • Consolidation has the potential to realize massive benefits. However, success is often elusive without proper planning and executive support. • Spend at least 12 -18 months planning the consolidation project. There is a direct correlation between time spent on planning and relocation success. • During planning, place an emphasis on creating the business case and justifying the benefits of consolidation to executives. Source: “The FDCCI Big Squeeze, ” Meri. Talk The Government IT Network. Info-Tech Research Group 8

Projects to consider before executing a data center consolidation project Consolidating data centers is only one project within an overall IT optimization program. Leverage these additional projects to bolster the benefits from data center consolidation. Vendor Landscape: Server Virtualization Improve IT-Business Alignment with an Infrastructure Roadmap Recover Data Center Space After IT Infrastructure Outsourcing Cloud Strategy Create a Right-Sized Disaster Recovery Plan and DRP Business Impact Analysis Tool Use Agile Application Rationalization Instead of Going Big Bang Info-Tech Research Group 9

Leverage Info-Tech’s data center consolidation workflow to effectively execute the consolidation project Physically consolidating data centers can be best described as a controlled disaster that involves high risk and requires a minute-to-minute plan for execution. • A data center consolidation initiative is a high-risk project that requires rigorous scoping and planning. While the average organization takes seven months to plan a data center relocation, Info-Tech recommends 12 -18 months of discovery and planning before the move. • This blueprint is directed at consolidating a data center of any size, however, the process is just as applicable to co-locating the data center or consolidating multiple data centers, as each facility being consolidated should be treated like an individual relocation project. • Many IT professionals will only encounter a data center relocation once or twice in their professional lives. Info-Tech research shows that 29% of survey respondents have never been involved in any part of a data center relocation. This blueprint will help you through the following phases of a data center relocation: Executive Brief Phase 1: Discovery Phase 2: Planning Phase 3: Execution Phase 4: Closure Info-Tech Research Group 10

Measured value for Guided Implementations (GIs) Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings. GI Measured Value Phase 1: Discovery phase • Time, value, and resources saved by identifying current and target site infrastructure by leveraging Info-Tech’s Data Center Consolidation Project Planning and Prioritization Tool and Data Center Consolidation Data Collection Workbook. • For example, 2 FTEs * 8 days * $80, 000/year = $5, 120 Phase 2: Planning phase Phase 3: Execution phase Phase 4: Closure phase Total savings • Time, value, and resources saved by using Info-Tech’s tools and templates to conduct an effective consolidation analysis. • For example, 2 FTEs * 15 days * $80, 000/year = $9, 600 • Time, value, and resources saved by following Info-Tech’s tools and methodology to document the move-day project plan, communication plan, and final project review process. • For example, 6 FTEs * 5 days * $80, 000/year = $9, 600 • Time, value, and resources saved by following Info-Tech’s best-practice guidance and templates to ensure that issues during consolidation are tracked and mitigated. • For example, 4 FTEs * 4 days * $80, 000/year = $5, 120 $29, 440 Info-Tech Research Group 11

Info-Tech offers various levels of support to best suit your needs DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful. ” Guided Implementation Workshop Consulting “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track. ” “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place. ” “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project. ” Diagnostics and consistent frameworks used throughout all four options Info-Tech Research Group 12

Data Center Consolidation – project overview Discovery 1. 1 Inventory and prioritization of projects 1. 2 Dependency bundles and bundle prioritization Planning 2. 1 TCO analysis 2. 2 Consolidation analysis 2. 3 Select a mover Execution Closure 3. 1 Move-day project planning and monitoring 4. 1 QA testing 4. 2 Decommission the old facility 3. 2 Communication plan 3. 3 Final project review 4. 3 Process retrospective and debrief 1. 3 Current state analysis Best-Practice Toolkit Guided Implementations Leverage the project planning tool to organize tasks and projects. Paint a clear financial outlook for the business through a five-year TCO. Create and prioritize dependency bundles. Clearly articulate business and IT requirements. Use the consolidation workbook to capture consolidation requirements. Identify and mitigate consolidation risks. Assess and select an appropriate mover. Create a minute-by-minute move-day script. Leverage a communication plan to keep stakeholders engaged and accountable. Clearly establish go/no-go criteria to ensure that the data center relocation is successful. Establish a project plan for the QA team that aligns with the move plan. Follow best practices when decommissioning. Document issue resolution and lessons learned for a smoother consolidation the next time around. Module 1: Discover the necessary requirements for consolidation. Module 2: Work with the business and build a strong case for data center consolidation. Module 3: Facilitate the move day with effective tools and communication plans. Module 4: Establish a comprehensive post-mortem to review lessons learned during the consolidation. Phase 1 Results: • Document and prioritize dependency bundles. Phase 2 Results: • Establish a strong business case and gather business requirements. Phase 3 Results: • Create highly usable and effective tools for the day of the move. Phase 4 Results: • Close the project off with a structured post-mortem process. Onsite Workshop Info-Tech Research Group 13

Workshop overview Deliverables Activities Contact your account representative or email Workshops@Info. Tech. com for more information. Workshop Prep Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Gather existing documentation Establish an effective discovery phase Conduct a thorough consolidation analysis Prepare for the day of the move Close the loop on data center consolidation 0. 1 Create a data center consolidation steering committee. 0. 2 Establish parameters for the project, including objectives, deliverables, and scope. Review and gather documentation regarding current IT infrastructure (all software and hardware inventory). 1. 1 Create an inventory of consolidation projects and objectively prioritize each project. 1. 2 Analyze the project planning tool reporting tabs (FTE, Budget, Gantt). 1. 3 Craft a data collection plan to complete the Consolidation Workbook. 1. 4 Create move bundles and establish moveday priority. 2. 1 Compare TCOs between the current and the consolidated environment. 2. 2 Determine business requirements for during and after consolidation. 2. 3 Incorporate the Vendor SOW Evaluation Tool into the mover selection process. 3. 1 Conduct a tabletop exercise to create a move-day plan outline. 3. 2 Create an overall communications plan and create an executive presentation. 1. Data Center Consolidation Data Collection Workbook 1. Data Center Consolidation Project Planning and Prioritization Tool 1. Data Center Consolidation TCO Comparison Tool 1. Minute-to-Minute Move. Day Script 2. Data Center Consolidation Data Collection Workbook 3. 3 Establish change management processes and review the go/no-go decision process. 2. Data Center Consolidation Data Collection Workbook 2. Data Center Relocation Minute-to-Minute Move. Day Project Planning and Monitoring Tool 3. Data Center Relocation Vendor SOW Evaluation Tool 3. Communications Plan Template for Data Center Consolidation 4. 1 Create a QR test plan that mirrors the moveday script. 4. 2 Outline best practices for decommissioning the old facility. 4. 3 Summarize the workshop results, including presenting planning progress to executives. 1. Data Center Relocation QA Team Project Planning and Monitoring Tool 2. Data Center Relocation Wrap-up Checklist 3. Data Center Move Issue Resolution and Change Order Template Info-Tech Research Group 14

Use these icons to help direct you as you navigate this research Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities. This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project. This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization. Info-Tech Research Group 15