data centre cost breakdowndecember 10, 2020 6:23 am Leave your thoughts
T… Doing some research on comparing data center costs to cloud costs and came across this blog entry, which is terrific, and my sense is it holds up pretty well over the years. Both of these areas have proven to be important technology areas to focus upon and there has been considerable industry-wide innovation particularly in cooling efficiency over the last couple of years. 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. because this will reduce the electricity consumption and as a result reduce the revenue of a datacenter company. The cell towers lack the power and space for a successful compute service nothing that achieves scale will be housed there. Base station controllers, mobile switching centers, and branch office switching centers. How data centers charge can involve some or all of the factors mentioned here in the data center costs breakdown. Data Center Construction Cost Reduction As data center construction projects continue to increase, studies show that the costs of these initiatives are falling. Moving and Storing Data . And autofill picked my son’s name for previous comment… sigh …. The Amazon EC2 charge model is at: http://aws.amazon.com/ec2/, 9-17-2017 Even well run medium-sized deployments get under 10% of overall costs and I’ve seen them as low as 3%. A few suppliers are experimenting with single socket ARM servers. The older approach was to charge for physical space and Internet connections. The total bandwidth needs to be enough to keep servers moving at a good rate even during periods of heavy usage. Your articles are absolute genius.Great enlightenment! 1) You used 165 W per server. The big operators tend not to discuss their equipment in much detail but this paper has a fair amount of detail: http://research.microsoft.com/pubs/131487/kansal_ServerEngineering.pdf. This can become especially meaningful over a long stretch of time in lease-rental situations where the dependency on power and air cooling, chillers, etc. The depth of the rack can vary greatly; 1 meter (39.37 inches) is common, but the depth may be as little as 600 mm. If its in the San Francisco/Silicon Valley area, it’s less valuable but it’ll still move very quickly. Since that was the second time I’ve done this now, I think it’s time I wrote a script ;). The range of initial Data Centre build costs per MW ranges from USD $17.3 million (Frankfurt) up to USD $35 million (Bordeaux). If you do the math a data center buildout of a three-tier application (web servers, middle tier, load balancers, SAN) comes out to be much more expensive than a more or less identical, non-optimized configuration in IaaS (minus the SAN) — about half in my model — and with RI’s and some smart optimization you can get the cloud costs really quite small. You buy or lease rack-mount servers, drives, routers, and other devices and bring them to the data center. Power efficiency is highly leveraged when looking at overall data center costs, it plays an important role in environmental stewardship, and it is one of the areas where substantial gains continue to look quite attainable. Cairo 1 / 2 GPX is leading the technology race by being first in North Africa to offer Rated-4 fault tolerant infrastructure. Several ways of measuring power consumption costs are in widespread use. Most workloads run on more expensive servers. At a median cost of $8 per square foot, the space alone would cost about $13,600 per month. The average cost of 1U server colocation can vary from place to place. Also micro services based virtual 5G functions will motivate operators to chose cots hardware. Per cabinet or rack. quite a lot (and make IT and overall power consumption a much large portion) is that the bricks and mortar actually have to be amortized (as required by tax laws) at between 27 and 30 years (not 10 to 15). Let us now see how power consumption affects the data center costs. One of the reasons I posted it was to debunk the often repeated phrase “power is the dominate cost in a large-scale data center”. Acorns, Bond Linc, lenda. Buying data centre space and services. Understanding Data Center Costs Breakdown Is The Key To Better Price Comparison Even Under Disparate Pricing Models. The model includes all costs “below the operating system” but doesn’t include software licensing costs mostly because open source is dominant in high scale centers and partly because licensing costs very can vary so widely. All rights reserved. Because administrative costs vary so greatly, I don’t include them here. Things are improving so fast, I suspect the residual value of a 10+ year old facility won’t be all that high. 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 assumes a certain amount of power consumption regardless of what equipment is in the rack. Cross-connection. First of all, great analysis, really impressive 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. should datacenters sell not the entire rack to clients but charge per node or per user and space, as this will be easier to calculate a cost of investment and maintenance? What would I do with an incredibly well connected 3MW downtown? Yet, when viewed as a function of total "actual" costs to the enterprise, real estate (and power) comprise a large share of ‘fully burdened infrastructure costs’ on a par with big-box data centers, although it’s far more difficult to get an accurate picture and characterize quantitatively all of the millions of smaller enclosures that exist today. It’s been too long since I was working with these data and the scale we are currently operating at gives some economies of scale in some dimensions that don’t easily apply elsewhere. The difference is much starker if you compare the smallest data centers to the largest ones. 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? Administrative costs are not included for the same reason. 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. Do you have a sense of how costs have shifted since you wrote this? The price is normally in GB per month. The upsurge of data generation and the increasing need for better data storage facilities to efficiently store huge volumes of data are also fueling the demand for data center power. Yeah, I think your likely correct on that guess Chad. 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 … It’s the cost of the power distribution equipment required to consume power and the cost of the mechanical systems that take the heat away once the power is consumed. But, for non-technical reasons, supply could be very constrained and from a single provider and prices could be a large multiple of actual costs. More than half of the cost of a data center comes from factors not directly related to the racks and connections, so those factors have become more important. Some figure installation and setup costs into the monthly bill; you have to commit to a minimum contract length in this case. 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. The server chosen for this model is very low cost commodity server that would support a highly parallel workload like internet search well. At the low end, all providers have efficient 2-way x86 servers. When billing for compute usage by the hour, we are very motivated to reduce energy consumption since it direct reduces are costs. x watt at average utilization) to assume for a server deployed by the major cloud operators? See also: How Server … I agree the pricing could be very complicated. what would you estimate for a breakdown of DC capex? 165 W at x% utilization) hold true today at major cloud operators? Data center amortization periods run from 10 to 15 years while server amortizations are typically in the three year range. There is no question that small facilities are more expensive but it’s far from linear. A 1980 DC isn’t worth much. Disclaimer: The opinions expressed here are my own and do not necessarily represent those of current or past employers. I’m pretty confident and, for the most part, most customers and perspective customers are there as well. Dell and HP have in their product portfolio cloud computing solutions. 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. Be sure the cabinet which is provided is sufficient to accommodate your devices. The server costs fraction grows under these assumptions to 61%. What server utilization does that assume? Hello James, very interesting article. (The terms "cabinet" and "rack" are interchangeable.) Thanks for the data, James. Pardon me if this is off topic (I do mean that), I am also curious to know what you personally would do with a vacant building in a downtown core location that has ~3MW of utility power and an abundance of diverse bandwidth…? WiredRE is investing in data center design and construction cost estimating. 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. Published: July 2015 Number of pages: 84 / Tables & Charts: 58 Click here to view the press release. 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. Telecom “edge” deployment costs vary on the definition of the edge. My apologies, James, for my earlier misrepresentation of your name. The key point to keep in mind is the amortization periods are completely different. Consumers appetite for compute in various packages continues to go up. P.S. In a cloud service, the IT problem is the entire problem and customer trust is very dependent upon the security of the solution. The customer pays a fixed price for a power connection, based on expected kilowatt usage. The billing model I like is, predictably based upon where I work, the Amazon pay-for-what-you-use model. 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 … Data center prices aren't always easy to understand. Where’s the bulk of the money going? The short answer is: select servers carefully and buy in very large quantity. I’ve attached the spreadsheet in source form below so you can add in factors such as these if they are more relevant in your environment. Mechanical infrastructure (cooling, etc. The pricing assumes … Although some people who say "power is the dominant cost" are still optimizing for space consumption. Let’s get started! If you need remote hands to take care of special needs, there will be a labor charge. Generally, at scale, admin costs round to zero. The space a server takes up on a data centre's rack is measured in "U" units. Not all data centers use the same formula. The average annual data center cost per kW ranges from $5,467 for data centers larger than 50,000 square feet to $26,495 for facilities that are between 500 and 5,000 square feet in size. The power required to cool the 1,700 square feet can be roughly determined by the formula: Cooling Power = (PUE - 1)*Power Consumed. various reports are suggesting that telco operators are looking into CRAN (Centralized) and DRAN (Decentralized Radio Access Network) solutions. About the report. That’s considerably longer than I’m used to but let’s take a look at it. Several server manufacturers design and build servers specifically for the mega-facility operators often in response to a specific request for proposals (semi-custom builds). Metered. There's generally a minimum charge if your power consumption is very low. What is Data Center Consolidation and Why Might My Business Need It? There has been a gradual shift in pricing models. IT costs declining drives demand up. Extension offices, as defined above is a nice solution to scaling the edge of a telco network. This is also called "per whip." Machine learning systems, as an example, are incredibly resource intensive. Keep in mind, I’m only modeling those techniques well understood and reasonably broadly accepted as good quality data center design practices. 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. 3. Could you clarify what goes into server expenses as you define it? I posted the original model at the Cost of Power in Large-Scale Data Centers. Many of the advantages of the cloud are driven by scale. Also, what about bandwidth costs/security/hardware replacement (or is that bundled in to your assumptions above?). The charge for incoming and outgoing data is generally called a "bandwidth charge," though that's a confusing term. We now have IT costs with servers and storage modeled separately from networking. Mechanical system costs have come down quite a bit and overall data center efficiency has improved substantially since that time. If the cost of compute falls as it continues to do, then more tasks make economic sense. As I suspect you know, the challenge is the current rate of change. 5) Other: 2% (4%), Using a 30 year amortization has a dramatic impact on overall costs but the change in percentages is less dramatic. Power infrastructure: 20% Servers dominate with mechanical systems and power distribution close behind. Today, due to increased infrastructure efficiency and reduced individual server power draw, we can support 46k servers in an 8MW facility (12MW total load). Normally transitions in server-side computing take a decade. Hi James. Thanks James. Gathering Data for Cost Analysis. Frank, I agree, the outside-the-box infrastructure including wan infrastructure, net gear, wiring closets, and client devices consumes more power than the data centers on which the depend. When I redo these data, I keep the facility server count in the 45,000 to 50,000 server range. Required fields are marked *. Measured this way, power is the second most important cost. The cost of the data center largely depends upon the size of the facilities needed. Land, core and shell: 20% For instance, a frequently-cited 2013 study from the Ponemon Institute states that the price of unplanned downtime in the U.S. costs $7,900 for each minute that ticks by. The current rate of innovation in our industry is substantially higher than it has been any time in the past with much of this innovation driven by mega service operators. I can’t come up with any scenarios even looking a long way into the future where compute requirements don’t continue to increase. The larger subject, that of real estate costs in general, among other things (including how "all"-copper-based LANs in work areas today are taken for granted and considered as being ossified in place), unfortunately exists directly in the middle of many operators’ and IT managers’ blind spots. Related products: Data Centre Pricing in Europe 2015 to 2020 . More on this later. Currently, there are several statistics floating around the industry about the cost of downtime. This helps us understand the impact of networking on overall capital cost and on IT power. That’s a massive large single failure zone. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. On projects with which I’ve been involved, they are insignificantly small so don’t influence my thinking much. It can cost tens of thousands of dollars per year to move large volumes of data to public cloud services and to store that data … Depending on the amount of power your server draws the price can be anywhere from $75-$400. Adding complexity in pricing you can only be close to the subscribers of Telco X in a Telco X facility. The 30 year infrastructure amortization shown with 10 year amortization in parenthesis: 1) Servers & storage gear: 65% (57%) When they say that "power is the dominant cost", could it be that folks are somehwat confused and are really pointing at the fact that power is now the bounding resource in the data center (as opposed to, say, space)? GPX India's Mumbai 2 TIA Rated-4 Carrier Neutral Data Center facility is now operational and customer ready. 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. Even network neutrality won’t fully solve this potential issue. ): 20% I am just curious (apologies if you have answered this before, I am new to your blog), but what would be a healthy rule of thumb with regards to network admins salary and/or "people" compensation etc, vs the total costs of running a data center as a percentage (are you suggesting 2% as mentioned to Wayne above?). 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. therefore datacenter companies aren’t interested in creating green datacenters, optimizing all factors such have energy efficient servers, PDU’s, cooling systems a.s.o. Compute cloud are driven by scale stays the same reason gear and servers, I this! 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