Monday, April 19, 2010

Blades Systems Insight 2010 Presentation

Had the pleasure to be one of the featured presenter at the Blades Systems Insight 2010 conference, discussing the ROI / TCO advantages of blade servers and how to quantify the value.

In the presentation, had the opportunity to present the latest IT economics research, and the ROI / TCO of Blade servers versus traditional options:

> IT purchase decisions have fundementally changed since the bursting of the tech bubble in 2001, moving from innovative solutions to bottom-line impact and cost savings focus. This shoft has been reinforced by the great recession.

> That IT budgets are still consumed with "keeping the lights on" spending vs. new applications and innovation for the business, 61% on sustaining operations, and 18% for innovations in 2009. Discussed how innovations will likely shift lower in 2010.

> Total cost of ownership (TCO) remains higher than most would like, particularly the labor overhead to manage IT assets. Ongoing costs are 3:1 vs. purchase price.

> Traditional servers have issues that drive higher than necessary TC) of $4K-$5K / server / year. These issues include: Inflexible: Static and hardwired; Over-provisioned: Wasting capital investments, power, cooling, and space; Manually coordinated: Change requires too many person hours, people and steps; Non-standardized practices: Processes are unique, with unique tools and inconsistency; and Expensive: More expensive to own than to build.

> Blade servers have some advantages to help lower TCO including the ability to simplify change management and provisioning procedures, reduce compliexity, use less power and space, and reduce Ethernet / FC / costs. With integrated / lower cost management tools, additional savings can be acheived.

> Blade servers can save 33% per year in direct savings on hardware, data center space and power consumption compared to traditional servers (over $1K per year per server), an additional 85% in provisioning and change management labor (an additional $800 / server / yr). Savings potential of 46% or $2K per year per server are likely.

In conclusion, provided two valuable resources we created for Dell and HP to calculate the advantages of Blade servers over Traditional servers:

Information on the conference can be found at:

Presentation is posted at:

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