Windstream Webinar: Maximizing Your IT Budget
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The document presented by Steve Carlson, IT Operations Manager, outlines strategies for maximizing IT budgets, focusing on areas such as strategic outsourcing, colocation, and storage management. It highlights the importance of assessing business requirements and environmental factors when making IT decisions and emphasizes the need to negotiate vendor contracts for better pricing. The overall message encourages organizations to optimize their resources by focusing on core business functions and exploring outsourcing options.
Windstream Webinar: Maximizing Your IT Budget
- 1. Maximizing Your IT Budget Steve Carlson, IT Operations Manager August, 2011
- 2. Introduction Today’s Presenter: Steve Carlson, IT Operations Manager for Windstream Hosted Solutions for Windstream Hosted Solutions 2
- 3. Windstream Corp. Snapshot p p S&P 500 company with full suite of IP-based voice and data services, MPLS networking, data center and managed hosting services and communication networking systems to businesses and government agencies • $4 billion in annual revenues $4 billion in annual revenues • 10,000 employees • 29 states and District of Columbia • Data centers: 13 • 60,000 route miles of local and long‐haul fiber network 3
- 4. Windstream Footprint 4
- 5. Trusted by Top Brands Trusted by Top Brands Biotech/Healthcare Technology / Retail/Consumer Banking/Finance Digital Media Digital Media 5
- 6. Areas of Focus Areas of Focus Strategic Outsourcing Strategic Outsourcing Build vs Buy Dedicated environment Dedicated environment Storage Purchasing 6
- 7. Strategic Outsourcing Strategic Outsourcing Economic downturn has created challenges for many Economic downturn has created challenges for many organizations Limited budgets Reduction in future headcount Reduction in future headcount Increased competitive pressure Strategic outsourcing can free up resources to focus on the core business on the core business Areas to explore when outsourcing Colocation Managed Services System management Cloud Computing DBA services 7
- 8. Assess Your Environment Assess Your Environment Understand the true Understand the true requirements of your applications Growth potential of the applications Look at the types of data and tier your storage 8
- 9. Build vs Buy Build vs. Buy Consider the costs of building Data Center Space Redundant Internet Colocation Redundant Internet 100 square feet of data center space = $120,000 3 Cabinets of Colocation = $3,000 / Month Redundant Power HVAC Office Space v. Warehouse Space Human Capital Human Capital Facilities Cost Maintenance 9
- 10. Data Center Overview aa e e O e e Tier II and III, SAS 70 Type II compliant data centers System + System uninterruptible power supply (“UPS”) systems, and carrier neutral network connections Heating, ventilation and air conditioning (“HVAC”) systems to maintain temperature and humidity within strict tolerances humidity within strict tolerances Hardened facilities with automated facility management tools Fire control with early warning smoke detection, clean agent suppression and/or dry‐pipe sprinkler system sprinkler system 24 x 365 NOC & facilities staff provide for high security externally and internally Service Level Agreement (“SLA”) backed guarantee of 100% power availability Modular builds ‐ most expansions are less than four years old (10k sf or larger) Modular builds most expansions are less than four years old (10k sf or larger) 24‐36 in raised floor no open systems or racks 10
- 11. Solution Comparison Solution Comparison On-premise Redundant Internet $218,000 CAPEX $35,416 OPEX (M) 11
- 12. Storage One of the most significant cost areas of IT f IT One of the most One of the most misunderstood areas of IT 12
- 14. Storage Example Storage Example Logs: 800 GB @ 3.99/GB Logs: 800 GB @ 3.99/GB Data: 2 TB @ 3.99/GB Data: 2 TB @ 2.25/GB Archive: 800 GB @ 3.99/GB / Archive: 800 GB @ 0.75/GB $14,364 $8,292 14
- 15. Data Dedup Example Data Dedup Example Backup Application Backup Data p File System (Open) 535 GB 3% chg rate Oracle (Open) 3,720 G9 GB 15% chg rate Email (Open) 2,040 GB 2% chg rate SQL (Open) ( p ) 305 GB 5% chg rate g Unity (AS/400, File System) 1,750 GB 3% chg rate JDE (AS/400, File System) 650 GB 3% chg rate A/R Imaging (AS/400, Comp) 300 GB 3% chg rate Backup Policy Full Fri Incremental every other day of week Retention 30 days 30 days 15
- 16. Data Dedup Example Savings Data Dedup Example Savings Data Required prior to DeDupe 85.6 TB Data Required after DeDupe 11.7 TB Total Savings g 73.9 TB Compression Ratio 7.3:1 Savings 86% Storage Savings Repl bandwidth – no dedup 1063 Mbps Repl bandwidth – w/ dedupe 64 Mbps 94% Bandwidth Savings Net Result: Substantial Savings Net Result: Substantial Savings in Storage & Bandwidth Costs 16
- 17. Purchasing Strategy Purchasing Strategy Who are you buying from? Understanding this What type of relationship do Wh t t f l ti hi d will give you access you have with your suppliers? to COST pricing, not LIST Understand the registration process 17
- 18. Purchasing Strategy Purchasing Strategy Example: Security Appliance – List: $41,390.00 E l S it A li Li t $41 390 00 List Price 100% $41,390.00 Typical Discount using a VAR 20‐25% off list $31,042.50 Cost Cost 40% off list 40% off list $24,834.00 Registration 10% off cost $22,250.60 Special Pricing S i lP i i Depends D d 18
- 19. Purchasing Strategy Purchasing Strategy How plugged in are you to company‐wide purchasing? Being involved in IT related purchasing related purchasing Centralized procurement dept? will ensure Combine purchases consistency and Get maintenance attached to Get maintenance attached to value company‐wide contracts on the front end Ask for training credits 19
- 20. Summary IT is everywhere. IT is everywhere A strategic IT organization benefits the entire business Assess ALL environments across the organization before making decisions Assume nothing. Don’t settle for “I think so” Push for extras and deeper discounts Focus on your core business. Explore outsourcing all non‐core initiatives/functions i iti ti /f ti One size never fits all. Utilize best practices that fit your environment 20
- 21. Summary Q&A 21
- 22. Thank you! Thank you! For more information, contact your Windstream For more information, contact your Windstream representative or visit windstreambusiness.com representative or visit windstreambusiness.com t ti i it i d t b i 22