© 2009 IBM Corporation New designs & methods for the Data Centre Brian Canney Global Services Executive Global Site & Facilities Services August 2009

© 2009 IBM Corporation Northeast Data centre road show 2 Key messages.  IT operational inefficiency and optimization can be uncovered by looking at energy efficiency.  Simple actions can yield significant operational and capital cost savings.  We are deploying solutions with clients and within IBM.  We can help you determine how to get started.

© 2009 IBM Corporation Northeast Data centre road show 3 Energy use and costs are drivers of change Increased IT Demand Increasing Cost Pressures Responsiveness to Change  Server growth 6X, storage growth 69X this decade. 1  Average power consumption per server quadrupled from  Data centers energy use doubling every 5 years. 3  66-73% of clients will be expanding their data centers in next months. 4  Reducing enterprise costs is now the #2 CIO priority in  Global electricity prices are increasing 10-25% per year. 6  Data center operating costs are 3-5 times the capital costs over 20 years.  Technology densities are growing 20x this decade. 8  78% of data centers are > 7 years old. 9  5-60% of IT workloads may be cloud-enabled  29% of clients identified data center power and cooling affect server purchase decisions IBM and Consultant Studies 2. Gartner, The Data Center Power and Cooling Challenge, David Cappuccio, November US Environmental Protection Agency, Report to Congress on Server and Data Center Energy Efficiency, Public Law , August 2, Digital Realty Trust survey, December Gartner, Meeting the Challenge: the 2009 CIO agenda, December Energy Information Administration, ; IBM analysis 7. ASHRAE Publication: Datacomm Equipment Power and Cooling Applications, 2005, page 24 8 Gartner Survey Suggests Extensive Data center Expansion plans on the Horizon, G , mike Chuba, February Ziff Davis survey, 2007

© 2009 IBM Corporation Northeast Data centre road show 4 We can help clients in three simple ways Extend the life of an existing data center infrastructure. Rationalize the data center infrastructure across the company. Design new infrastructure to be responsive to change. Double IT capacity or Reduce operational expenses by 50%. Improve operational efficiencies while reducing operational expenses by 50%. Pay as you grow by deferring 40-50% of capital and operational costs.

© 2009 IBM Corporation Northeast Data centre road show 5 IBM Lexington case study of an existing data center. Smart execution allowed for 8 times IT growth in the same energy footprint. Diagnose  Establish baseline energy use  20x more servers than needed Virtualize  10x increase in asset utilization Compute Resources  2x growth in number of servers  8x growth in IT capacity Improved Operations  10% improvement from less over cooling Best Practices  Right size infrastructure to virtualized IT workloads Measure and Manage  15-20% power savings from actual usage

© 2009 IBM Corporation Northeast Data centre road show 6 Establish Baseline Strategic Modeling Execution Roadmap Current State What-Runs-WhereApplication Growth Forecast Decision Model Alternative Cash Flow Resiliency Rationalization Tactical Projections Relocation – Build - Lease Physical Infrastructure Threshold Analysis Future State Alternative Scorecard Future State What-Runs-Where Transition PlanPMO Guide Board Level Deliverables Rationalize your data center infrastructure. Optimize to adapt to market pressures and changing business requirements.  Reduce operating costs by up to 50 percent  Reduce operational complexity and improve adoption of new virtualization technologies  Meet business continuity requirements through reduction of outages and data loss  Design for flexibility to meet dynamic business requirements  Reduce time to deploy new technology from months to weeks

© 2009 IBM Corporation Northeast Data centre road show 7 Rationalize to fewer centers for operational efficiency. A major Chinese bank realized $180M savings and improved operational efficiency from data center consolidation. Client requirements  Reduce time to market of new applications  Reduce overall costs, improve resiliency and security Solution  Consolidate 36 mainframe data centers to 2  Establish enterprise command center Benefits  US$180 million annual savings  Improved time to market of new banking services  Security-rich environment; 99.95% availability

© 2009 IBM Corporation Northeast Data centre road show 8 New data center infrastructure decisions. Business objectives  Meet business and IT growth  Align capital and operating costs  Flexible to support new technology  Faster time to deploy  Reduce risk  Security Data center requirements  High availability 1  Provide required capacity 1  Optimize capital costs 1.Digital Realty Trust; Emerging Trends in the data centre market, DCD London, November 2007; US EPA Study, August 2007  Maximize scalability  Maximize flexibility for technology and computing model adoption  Minimize capital and operational costs

© 2009 IBM Corporation Northeast Data centre road show 9 Design new infrastructure to be responsive to change. Data center capital costs 60% costs from mechanical / electrical systems Shell 7% Mechanical 20% Fee2 24% Fit-Up Costs 9% Instrumenta tion & Controls 4% Power 36% Shell 7% Source: IBM Estimates Data center operating costs 75% costs from energy use $50 $100 $150 $200 $250 $ Cumulative Cost of Operations ($m) Year Source: IBM engineering estimates, 2008 Energy Cost Staffing Bldg. Maint. & Mgmt. R E Tax

© 2009 IBM Corporation Northeast Data centre road show 10 Design for flexibility with modular data centers. IBM’s data center family solutions align to your business and cost objectives. Scalable modular data center. Enterprise modular data center. Portable modular data center. High density zone. Up to 20% less than traditional designs.  Turnkey center for 500-2,500 sq ft.  Implement in 8-12 weeks. Defer 40-50% of capex and opex cost.  Standardized design starting with modules as small as 5,000 sq ft  Save up to 50% operational costs. Fully functional data center.  Rapidly deploy in weeks. 35% lower cost than site retrofit.  Without impacting operations.

© 2009 IBM Corporation Northeast Data centre road show 11 Design for flexibility for small and mid-size data centers. One of Europe’s businesses goes “green” with scalable modular data center. Client Requirements  Expansion across Europe and Middle East.  Aging data center threatens growth.  Need rapidly deployable and green data center. Solution  IBM Scalable Modular Data Center solution with InfraStruXure ® architecture from APC.  Standardized on IBM BladeCenter ®.  Uses “green” design concepts. Benefit  Supports corporate sustainability (“Green Line”).  Up to 40% reduce electric power consumption.  24% less energy from new servers. “In IBM we have an IT partner who meets our ideal expectations for sustainable business.” Dr. Herbert Koch Manager of the kika/Leiner group

© 2009 IBM Corporation Northeast Data centre road show 12 Design for flexibility in enterprise class data centers. Pay as your grow: align costs to IT needs with enterprise modular data center. Meet unpredictable business and IT growth  Enable 3x power & cooling growth at one-third cost  Up to 12x power and cooling capacity growth Align capital and operational cost to IT needs  Defer up to 40% capital costs until required  Defer up to 50% operational costs until required  As much as 50% energy savings Provide available and predictable operations  Provide expansion without downtime to operations  Provide standardized operating environment Design to an “open architecture”  Integrated leading vendor's capabilities  Opportunities for OEM innovation

© 2008 IBM Corporation 13 Power and automation technologies Products ensuring availability wherever data is created, transmitted or stored. Electrical components and systems for power quality Surge Protective Devices in the Industry Reliable power, precision cooling, connectivity and embedded solution Diesel and gas generator sets Rotary UPS technology Fire protection solutions Products for wiring and communications applications Generating set manufacturers Network Cabling Solutions Electrical power distribution system Air-conditioning systems Solutions for High-density IT Construction and design of modular data centres IBM PMDC Demo Unit Partners: THANK YOU!

© 2009 IBM Corporation Northeast Data centre road show 14 Green IT: For CIOs:: For facilities managers: Leverage IBM’s experience to help