Holistic Efficiency
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The document discusses the inefficiencies in the data center industry and advocates for the productization of data centers to improve quality and reduce costs. It emphasizes the importance of standardization and continual improvement following management principles, as well as the need for partnerships in transforming the industry. Key issues include high capital and operational costs, resource inefficiency, and the necessity for a shift from one-off solutions to more standardized, efficient models.
Holistic Efficiency
- 1. Holistic Efficiency: The Productization of the Data Center Chris Crosby, CEO, Compass Datacenters
- 2. About Us 2 • Compass Datacenters provides dedicated, standalone data centers • Built using our Truly Modular™ Architecture • Patent pending design • Geographically independent • The building is the module • Simplify Capacity Planning • Growth in 1.2MW Increments • Control • Ownership or lease • Operations and security • Expansion
- 3. What Type of Data Center 3 3
- 4. Data Center Landscape—Target Customers 4 End Users of Public Cloud, Private Cloud and Traditional IT Public Cloud Applications Servers, OS, SANs, Virtualization, Web, DR, Network Management Cross Connects, Racks, Networking, TRS/Helpdesk Power and Cooling, Security, Network Connectivity, Facility Management Systems Building Shell, Utilities, Fiber Pathway Permits, Entitlements, Incentives Cloud Providers Managed Service Providers Retail Colocation Providers Enterprises Wholesale Providers Real Estate Developer Land
- 5. The Common Thread: Inefficiency 5 • Distorts Total Cost of Ownership (TCO) • Dominated by First Cost • On-Going Cost of OpEx
- 6. Capital 6 • Bigger isn’t better • $20-$100 million is spent on four walls and a roof • #1 killer of new projects is the shell to hold the 20 year plan • Capital should be allocated as needed • Freeing funds for other uses until needed • Not accounting, it’s common sense
- 7. Land 7 • Huge facilities aren’t land efficient • Eliminate the option value • Ability to use land for other purposes • Destroys the advantage of an appreciating asset
- 8. Energy Efficiency • This isn’t it 8 What’s 100 acres, more or less?
- 9. Materials 9 • Lack of standard designs drives materials waste • “Standard” usually just a starting point for customization discussions • Reason Uptime checks every facility as part of its process • How much concrete and steel does it take to build a 100,000 square foot facility? • Does anyone know? • What is known: • Production of 1 cubic yard of concrete generates 400 lbs of CO2 • Ex: 6” slab on a 200K square foot building requires 3700 yards of concrete • Production generates 740 tons of CO2 • Production of 1 ton of steel generates 1.9 tons of CO2 • Ex: 440 tons of steel required for a 200K square foot building • Production generates 840 tons of CO2
- 10. Resource Inefficiency 10 • Water • Chemical treatment requirements • Added cost • Eco impact
- 11. Data Center Build Trend 11 • The Data Center Industry is Here • Can’t Drive Costs Any Lower or Quality Any Higher • The Required Next Step • Most Providers Can’t Make It
- 12. The Historical Foundation "Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces.” 12
- 13. The Key Principles • Deming had 14 key principles • These are the most applicable to productization • Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business and to provide jobs. • Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. • Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. • Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 13
- 14. The Other Element: Standardization 14 • Design product for a specific market segment • Not the entire market • Ex: 737 vs. 747 • Elements of true standard design • Standard Bill of Materials • Same for every job • The facility is built using “kits” • All quantities pre-determined • Reduced transportation requirements • Volume purchase agreements reduce cost • Reduced disposal requirements • Standard drawings and processes • More efficient scheduling reduces wasted manpower • Only deviations are due to local requirements • We don’t have to reinvent • Many examples (auto industry, aviation, consumer electronics)
- 15. Define It: The Data Center as a Product 15 Office: 2,500 SF Or, WYW space (Whatever YOU Want) Storage/Staging Room Dedicated 1,400 SF Security OPEX Savings 1.2MW – 2N Pre-Fabricated Patent Pending Building: 21,000 SF Datacenter: 10,000 SF 500+ Racks 20 kw/Rack with NO containment Inexpensive expansion 2MW gens @ N+1
- 16. Certify It: The Data Center as a Product 16 HARDENED BUILDING 1.5 SEISMIC IMP. FACTOR 149 MPH 1.2-1.5 PUE @ ALL LOAD LEVELS DESIGN & CONSTRUCTED Level 5 Commissioning LEED GOLD EYP DCIM UL
- 17. The Value of Standardization and Integration: Beyond First Cost • Standard design and partners • Simplifies and standardizes operations to drive out on-going costs • Integration • Provides holistic view of performance without “gaps” • Enhances customer control and efficiency • Training • Spares • Documentation • Useful Life 17
- 18. Supply Chain • Partner vs. Bid • A virtual team • Consistency • Replicability • Forecast vs. Quote • Eliminate the cost and delivery inefficiencies of “one-off” 18
- 19. Why Schneider? • Breadth of product line • UPS • BMS/DCiM • Switchgear • Security • LV Gear • Personnel and expertise • TCO and supply chain • The Common Thread • Energy Efficiency 19
- 20. Summary • Data center industry becoming less one-off and more application centric • Increasing requirement for lower costs and higher quality • Data centers are inherently inefficient • Capital • Land • Materials • Resources • Productization is the only way to achieve paradox of higher quality at lower price points • Requires combination of successful manufacturing principles and standardized product • Most providers are not positioned to take this next step • Majority of customers will accept a “solid” standard in place of a mis- mash of features • Accord vs. Cutlass Supreme • Cannot transform an industry without partners • Each bringing components to the table for a better system solution 20
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