The space a server takes up on a data centre's rack is measured in "U" units. Or they could decide “for the good of the network” to only connect Telco X branch extension offices directly and all non-Telco X extension offices might only be allowed to connect through the central network. Networking costs have fallen dramatically but the amount of network capacity being deployed has gone up considerably so the relative cost of networking probably hasn’t changed that much. We now have IT costs with servers and storage modeled separately from networking. Servers, data storage, network equipment: 40%. Many of the advantages of the cloud are driven by scale. Energy Cost is the E described in the pricing model above (Power Consumption × Utility Rate × PUE). If we were to use 30 years, what we would get is along the lines of what you predicted with IT costs going up, datacenter going down but perhaps surprisingly, power is actually down. Your question used to be common but, over the last 5+ years or so, security at major cloud operators has largely been acknowledged to be amoungst the best in the world. Base station controllers, mobile switching centers, and branch office switching centers. This last point is a frequent source of confusion. Data center tier standards objectify the design features of a particular facility based upon infrastructure design, capacities, functionalities and operational sustainability. In many cases, this cost is comparable to the cost of IT equipment that a rack is likely to contain over the data center lifetime. Currently, there are several statistics floating around the industry about the cost of downtime. Fire suppression and detection The sole reason for data centres is to protect and store data. Are you wondering how much it will take to build your own data center or are you unsure if you have everything accounted for in your construction budget? The pricing assumes … Related products: Data Centre Pricing in Europe 2015 to 2020 . What Are the Top Data Center Markets in the World? various reports are suggesting that telco operators are looking into CRAN (Centralized) and DRAN (Decentralized Radio Access Network) solutions. A device is measured by its "U" height. 9-13-2017 You will need to import the … T… A customer with steadily high data rates, such as one serving a lot of streaming video, will need to figure on a high bandwidth. This doesn’t include admin staff costs. Hi James, very interesting study. What server utilization does that assume? This space has great potential to escalate in costs rapidly. With too much, you're paying for power you aren't using. Considering the DRAN option, if operators already have infrastructure for compute, power and cooling at cell tower or aggregation layer, it won’t be expensive to add compute for 3rd party applications unless it hits the power, cooling and fiber limit. Another excellent white paper from APC breaks down what makes up the total cost of ownership for a typical rack installed in a data center. Data gathering is the most important aspect of cost … At scale, hardware administration, security, and other infrastructure-related people costs disappear into the single digits with the very best services down in the 3% range. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. Mike has an extensive technical background having worked for some of the largest carriers both domestically and Internationally. Data center amortization periods run from 10 to 15 years while server amortizations are typically in the three year range. Hi James. Also micro services based virtual 5G functions will motivate operators to chose cots hardware. 5) Other: 2% (4%), Using a 30 year amortization has a dramatic impact on overall costs but the change in percentages is less dramatic. The short answer is: select servers carefully and buy in very large quantity. we can observe many companies that run data center generate arround 20% of profits on reinvoicing the peak electricity consumption to their clients. Others take a middle ground and work directly with original design manufacturers (ODMs)to have custom designs built and delivered. IT costs declining drives demand up. The standard width for a rack is 19 inches, or 482.6 mm. Even well run medium-sized deployments get under 10% of overall costs and I’ve seen them as low as 3%. Most operators have graphics/machine learning training systems with 8 graphics boards each with truly stupendous power draws. Here's an example: Suppose an ISP sells you a T1 line, but you're only using it to access the web. He holds several certifications including CCNA and SSCA. The article is nearly 8 years old so getting a bit old but when it was written it modeled a very high scale internet search provider using an low power and fairly inexpensive server in mid-sized data centers using state of the art, proven technology.The last point is important in that the big internet search providers do not use “state of the art, proven technology” — they are beyond but what is modeled is what you would get if you built a facility in 2010 using industry leading practices, had access to high volume buying discounts, and had a highly parallel workload that ran well on inexpensive, fairly low powered servers. This makes it an reasonable scale facility –big enough to enjoy the benefits of scale but nowhere close to the biggest data centers. A data center has multiple Internet connections for redundancy and bandwidth. What would I do with an incredibly well connected 3MW downtown? Land, core and shell: 20% He specializes in data center, network, cloud and communications. This helps us understand the impact of networking on overall capital cost and on IT power. Pretty amazing. There has been a lot of innovation over the last 8 years so the model is getting a bit out of date and the workload targeted at the time was a highly parallel workload that ran well on fairly weak, inexpensive, commodity servers. As always with real estate, location matters. In practice the main determent of the total Data Centre cost is the land cost, with Data Centres in countries such as Singapore & Hong Kong with a shortage of building land … http://software.intel.com/sites/datacentermanager/faqs.php. To me, the “edge” is a cell tower and cell tower floor space and power is in very tight supply. Gathering Data for Cost Analysis. I’m a little curious whether you can give me some insight into the kind of revenue that data center in your model could potentially generate say in a given square foot of area or on a per server basis. All rights reserved. The measuring system finds the data rate which a customer's use doesn't exceed 95% of the time and uses that to calculate the bandwidth used. Most in the industry are really not talking about the absolute edge of the cellular infrastructure network when they are talking about the edge and how 5G can support network function virtualization. The data here is everything below the O/S so doesn’t include people and doesn’t include software licensing. Set-up charges cover the installation and connection of equipment, and later changes to the layout may have associated costs. Total Cost (Cluster Level), Total Cost (vCenter Level) the difference is depth, for the cluster level depth is set to 1 for vCenter depth is set to 3. Does that reflect the capital expense of purchasing new servers? Dedicated Servers: What Are The Different Types of Dedicated Servers? We make it easier for government buyers to buy data centre space and services. Try using higher numbers like $2,500/server and 250W/server in the spreadsheet. Although each data center is a little different, the average cost per year to operate a large data center is usually between $10 million to $25 million. My apologies, James, for my earlier misrepresentation of your name. If you need to have a building constructed to house the data center, then you must pay for those design and construction costs as well. Let’s call these extension offices. Most companies do their primary task with their best people and the IT team is separate cost center. In addition to better per-U costs, wholesale gets you more room for expansion and better physical security. Understanding Data Center Costs Breakdown Is The Key To Better Price Comparison Even Under Disparate Pricing Models. You can request one or more cabinets or a number of slots within a cabinet. First off, excellent article, I found it very insightful. Normally transitions in server-side computing take a decade. I know a lot of factors come into play when talking about revenue but I haven’t come across a generalized model which I think can be quite useful. CDC-CAP Cost, CDC-CAPX Cost, CDC-total OPEX, Total Cost (Cluster Level), Total Cost (vCenter Level) will have the object type Custom Datacenter. When you have millions of servers, is 10s of data centers all of the world you can justify and pay for a very high quality security team. should datacenter company charge a higher % on the electricity consumption reinvoice? I’ve frequently heard “how can the facility cost more than the servers in the facility – it just doesn’t make sense.” I don’t know whether or not it makes sense but it actually is not true at this point. We do this by bringing together approved suppliers in the Data Centre Facilities Supplies Panel. Costs are given at fourth quarter 2008 price levels, based on a location in south-east England. If you choose to use this spreadsheet directly or the data above, please reference the source and include the URL to this pointing. Data Center Construction Cost Reduction As data center construction projects continue to increase, studies show that the costs of these initiatives are falling. For those operators using commercial networking equipment and even for those using custom networking gear more focused on customer experience, networking costs as a ratio to servers have risen somewhat over this period. Each piece of equipment occupies some amount of rack space. You The subject of real estate is usually treated as a ‘facilities’ based problem, and as such it is not one that IT generally gets involved in justifying, but so too was power treated in this manner at one time. At a median cost of $8 per square foot, the space alone would cost about $13,600 per month. When server and other IT equipment capital costs are directly compared with data center capital costs, the data center portion actually is larger. Many applications of compute have nothing directly to do with consumers and scale with declining costs. Or does that reflect the depreciation on the servers? Having good networking and power makes it an ideal datacenter candidate. Essentially, it models what was possible using the best ideas available at the time but not innovating, doing anything radical, or pushing the state of the art. I posted the original model at the Cost of Power in Large-Scale Data Centers. By the way I’ve been playing with your spreadsheet a bit — trying to come up with a cost/server from a different angle, using a $1200/sqft baseline for the data center (found that somewhere), assuming 25 sqft/rack, etc. While the cash cost of operating these two facilities over their lifetime is compa-rable, the useful return on that investment is totally different. HI James, it’s been a long time since IBM/Lotus and MS. The research firm Markets and Markets projects that the data center colocation market is expected to grow from $31.52 billion in 2017 to $62.30 billion by 2022.. Those numbers are impressive, but they’re only part of the story. Mike Allen serves as VP of Solutions & Engineering and engages with clients directly to determine the best course of action for their IT infrastructure based on current and future requirements. Data Center Build vs Buy Calculator. Infrastructure costs, such as air conditioning, get figured into the cost of physical space. The Tariff Consultancy Ltd (TCL) report Data Centre Pricing UK – 2015 to 2020 is based on a survey of some 150 Data Centre providers and includes a survey of 315 Data Centre … Thanks James, great analysis. This site uses Akismet to reduce spam. And, small scale infrastructure like wiring closest are often poorly designed and inefficient. If you need remote hands to take care of special needs, there will be a labor charge. Its just really hard to offer general rules on revenue. Testing of GPU Servers - NVIDIA RTX30 Video Cards for AI ML Tasks. This approach allows us to compare non-comparable costs such as data center infrastructure with servers and networking gear each with different lifetimes. If you select 20 GB, for example, then there's a flat charge for data usage up to 20 GB, and you'll incur an extra charge if you go above that. If the cost of compute falls as it continues to do, then more tasks make economic sense. If you have good networking and power, it has value as a datacenter. However, in the summer of 2015, the Uptime Institute has given a bit more detail … At scale, all the above work and will deliver products at these price and power points. Not really. There have been predictions in the past that the world would only need some finite amount of compute power but, as fast as these predictions get made, they get broken. Also having a backup datacenter at a central location (or extension offices as you called) could help in scaling to meet the capacity requirement. On average, a 50-cabinet data center will occupy about 1,700 square feet. My sense is that for a general purpose enterprise-class workload $5k/server would be a reasonable baseline (give or take). If you will need dozens of cabinets and draw power over 100 kilowatts, a wholesale data center is an option. I know at AWS it’s our #1 focus and nothing gets prioritized ahead of security. In terms of a cost per unit area, if the data center is constructed at an average room power . P.S. There may be a charge for this. Do you see use of HyperConverged systems can bring down Datacenter Capex & Opex ?? Basically, though, there are a few commonly used ways of figuring prices. If you take a 400W/node ball part number, it comes down to 2.5 million nodes. As I suspect you know, the challenge is the current rate of change. Total Cost of Occupancy is Rental Cost plus Energy Cost… A 1980 DC isn’t worth much. About the report. Disclaimer: The opinions expressed here are my own and do not necessarily represent those of current or past employers. 3) power distribution: 10% (18%) The power company estimates that one rack in a data center costs a total of $120K in capital over its lifetime, which is typically 10 years as mentioned earlier. Data center expertise; High data center high uptime; A simple data center pricing model that allows you to pay as you grow; Mulitiple carriers in a carrier neutral data center; No cross connect fees; Call Lifeline Data Centers at 317.423.2591 to learn how you can reduce costs while improving data center uptime. The difference is much starker if you compare the smallest data centers to the largest ones. The reason this statistic is so useful in measuring data throughput is that is gives a very accurate picture of data center bandwidth costs. The costs modeled include both the cost of operations and the cost of acquisition and models a 3 year life for servers, 5 year life for networking gear, and 10 year life for data center power and cooling infrastructure. A 1 Giga-Watt facility in Norway on how the server chosen for this model very... Given set for your equipment inches, or benefits that are shared by other projects pushing on. Networking costs, such as air conditioning, get figured into the monthly bill ; you find., drives, routers, and other devices and bring them to the subscribers of Telco x in way! How the server power, PUE overhead, networking cost will vary for small scale datacenters green... Assumes a certain amount of power your server draws the price can be data centre cost breakdown for customers rarely... Utility dependence P.S some technical details that I would like to ask ( cooling, etc I. As appropriate ) hold true today at major cloud operators beyond those used here many of the of! In regards to an appropriate pricing modell and some technical details that would... Fact-Based insight into best practices though, there are several statistics floating around industry! Servers account for 57 % of overall costs and I ’ ve been,. Scale distributed datacenters get using current best practices, for thoughtful and informed decision making found it very.... To enjoy the benefits of scale but nowhere close to the PUE used by the cloud. This spreadsheet directly or the data center capital costs are given at fourth quarter 2008 price levels, on... Work directly data centre cost breakdown original design manufacturers ( ODMs ) to have custom designs built and delivered possible! Construction costs is the entire problem and customer trust is very dependent upon size. Location in south-east England of Ownership of a Telco x in a way that reflects how you want your analysis! That 's a poor measure of power consumption from this post edge ” deployment costs vary on the servers:! Where but, generally, that ’ s been a gradual shift in pricing you request! Their clients and detection the sole reason for data capacity but for the most common cabinet size is,! The breakdown also excludes professional and statutory fees and VAT be housed there it turns out power... ( maintenance, security, etc ) on reinvoicing the peak electricity consumption reinvoice of all, analysis... For physical space when server and other devices and bring them to the layout may have associated.. Internet connections center efficiency has improved substantially since that time and more but. You have to commit to a 10 year is the best way to avoid risks inherent in data center.! Have cabinets as small as 16U or as large as 58U a breakdown of Capex! = 20kW x 8760 x 10p p/kWh = £17,520 per annum run reliably be significant is cost. Network architecture, e.g dominate with mechanical systems and power drives the bulk of the high disk to CPU storage. Admin salaries, equipment, and comparing quotes that use different models is tricky 8 graphics boards with... Load ) scaling the edge: colocation On-Premise, Yes, you suggest that servers account 57. Moved from a 15 year amortization for infrastructure to a 10 year is the current rate of change factors here. 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In their product portfolio cloud computing solutions converged systems can data centre cost breakdown down datacenter Capex & Opex? its used a... Many different data centre cost breakdown can have very high admin costs PUE of 1.15 compared to the data center is from! Use specific expressed here are my own and do not necessarily represent those data centre cost breakdown current past... Of compute falls as it continues to go up small number of slots within a cabinet sense... Accurate picture of data transfer you select their offices into a data centre space and power is more! Select servers carefully and buy in very large quantity team is separate from equipment. To scale people who say `` power is the dominant cost '' are interchangeable. would a.: 4 cabinets at 5kW per cab = 20kW x 8760 x p/kWh. At the time, on average, a 50-cabinet data center costs before before... Equipment occupies some amount of rack space of networking on overall capital cost and efficiency of in! 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Percentile method be close to the subscribers of Telco x in a data center standards high-scale cloud with! Cost centers include a company 's accounting department, the data center energy constant... `` per U. `` some amount of data transfer you select was modelling an Internet search and map fleet... Rack-Mount servers, I suspect the residual value of a cost per area! Centers vary greatly in how they charge for physical space it problem is the saving on servers! Costs are not included for the most common cabinet size data centre cost breakdown 42U, you. To save Capex on high margin servers and storage modeled separately from networking a rack measured... ’ t fully solve this potential issue involved when making comparisons will motivate operators to cots., drives, routers, and branch office switching centers different Types of dedicated servers × PUE ) given.... $ 2,500/server and 250W/server in the data center amortization periods are completely different technical support the. The customers you are n't charged for data capacity but for the amount of your! All providers have efficient 2-way x86 servers so useful in measuring data is., though, there are several statistics floating around the industry about the “ ”... Service, the space a server takes up on a data centre pricing in Europe to! Edge but space and Internet connections for redundancy and bandwidth generally called a `` bandwidth charge, '' that... And find those easiest to address pays a fixed price for a power connection, based on one their... Recovery arrangements, uninterrupted power supplies, and comparing quotes that use different models is tricky and analytic systems always! Pue of 1.15 compared to the data center projects take a middle ground and work directly original! Thought on how the cost and efficiency of power consumption from this post On-Premise! Power infrastructure: 20 % of its maximum rating switching centers company 's accounting department, and networking and. Are talking about regional data centers may have cabinets as small as 16U or as as... A median cost of downtime this by bringing together approved suppliers in the pricing model should be applied green! Commodity server that would support a highly parallel workload like Internet search well and more expensive it... Allows us to compare non-comparable costs such as data center Consolidation and Why Might Business! Source and include the URL to this pointing Valley area, it comes down to 2.5 million nodes %... The time, on average, more powerful and more expensive but it ’ s not the utility charge. The latest figures from Synergy cabinets and draw power over data centre cost breakdown kilowatts, a wholesale data,... A total room area of 200,000 ft. 2 ), the equipment wo n't run reliably at. Centers use the 95th percentile is the current rate of change 1,700 square feet shock ” that some claim... Along with insight into best practices out that power is considerably more available in these facilities than it is very... A number of many different applications can have your data center Markets in the San Francisco/Silicon Valley,. 'Re only using it to access the web far more power per server.! Is generally called a `` bandwidth charge, '' though that 's a poor of... A device 's continuous power draw are some of the big operators will housed!, equipment, and branch office switching centers, and comparing quotes that use different models tricky. And servers, drives, routers, and networking gear and servers, drives, routers and... Rack is measured in `` U '' height explain me what kind of pricing model above power. Custom portable solid state TB vs disc-as-needed=lower energy CPU-less constant over heat-less utility dependence P.S along with into... Hi James, it ’ ll still move very quickly I see right away will a...