Server and Data Center Consolidation

Microsoft IT enhances cost savings, availability, and performance

Published: June 2004

Solution Overview

Situation● Microsoft IT needed to reduce enterprise complexity and costs

Solution● Improve IT operational efficiency, while reducing TCO

● Develop site taxonomy and Minimum Performance Level system● Implement ICOs ● Consolidate servers and data centers ● Centralize server management● Institute new operations practices and procedures

Benefits● Data center, server consolidation: 37% reduction in spending● Site reduction: 54 percent● Infrastructure server reduction: 27%● Data centers: rent and maintenance reduced by 50%

Products and Technology● Windows Server 2003● Exchange Server 2003● Office System

Excessive Complexity and Costs

● Too many data centers and servers● Central management function not

optimized● Duplication of storage, applications, and

hardware● Inconsistent levels of support● High rent and maintenance costs

Business Value

● Total $23.2 million in savings to date● 40% reduction

● Server and Data Center consolidation● $18.3 million reduction

● Internet Connected Offices● $4.5 million savings● Enhanced time to market

Business Value

● Infrastructure Server Consolidation● Savings of $4.3 million

● Centralized Server and Data Management ● Incident Management team of 22 supports

10,000 servers worldwide

● New Operations Practices and Procedures

Catalysts and Background

● Key Catalysts:● Hardware improvements● Decreased communication costs● Backbone bandwidth● New connectivity options● Product improvements● Exchange infrastructure consolidation

Catalysts and Background

Sever Consolidation Glossary● Logical: server management, centralized

management of business critical systems and applications

● Geographic: closing of data centers, and implementing ICO offices

● Homogenous: scalability of Microsoft products

● Heterogeneous: different applications from multiple servers onto one server

Server and Data Center Consolidation Strategy● Systematically develop a layered tier

system, or taxonomy, of IT service sites● Define service levels that are provided

at those sites● Ensure consistency with the business

requirements of the services that the sites support

● Begin ICO, consolidation activities

Server and Data Center Consolidation Strategy

Site Number of People

Primary Site Purpose

Network Servers

Data Center 1 or 2 N/A IT Infrastructure Requires at least redundant circuits

Servers on-site

High Availability Office

N/A PSS Call Center, Network Hub, or other valid business need

Requires diverse access (2 paths)

Consolidate servers to the Data Center where you can meet MPL

Standard Office 50 and greater N/A Poor ISP and/or requires more bandwidth than DSL

Consolidate servers to the Data Center where you can meet MPL

ICO-2 (Persistent Connection)

20-150 Sales & Marketing Good ISP, requires more bandwidth than DSL

Consolidate servers to the Data Center where you can meet MPL

ICO-2RP (Persistent Connection, Regional Provider)

20-150 Sales & Marketing Good ISP Consolidate servers to the Data Center where you can meet MPL

ICO-1 (Smart Card) 1-20 Sales & Marketing Good ISP None

Server and Data Center Consolidation Strategy

Site Type: ICO-1 (Smart Card, Small, Unmonitored)

Server and Data Center Consolidation Strategy

Site Type: ICO-2RP (Regional Provider, Persistent Connection, Small/Medium, Monitored)

GTS Cable Room

Routers and Switches

(Possibly) PBX

(Possibly) File/Print

(Possibly) Active Directory®

Server and Data Center Consolidation Strategy

GTS Cable Room

Site Type: ICO-2 (Persistent Connection, Small/Medium, Monitored)

Routers and Switches

(Possibly) PBX

(Possibly) File/Print

(Possibly) Active Directory®

Server and Data Center Consolidation Strategy

Site Type: Standard to high availability building (Large)

GTS Cable Room

Routers and Switches

(Possibly) PBX

File/Print (Possibly) Active Directory®

Server and Data Center Consolidation Strategy

Site Implementation

Internet

Internet Connected Office – 1

Redmond

Data Center

Internet Connected

Office – 2RP

Internet Connected Office – 2

Standard to High Availability

Building Exchange Active Directory

File and Backup

DSL/Cable or Local

ISP/Equant

Local Carrier/Regional

Provider (Persistent VPN)

Leased Line to Local ISP

(Persistent VPN)

AT&T/GX Leased Line

AT&T/GX Equant Leased Line

AT&T/GX Leased Line

Server and Data Center Consolidation Strategy● MPL development – differs from SLA

● MPLs are relative measures of performance when a service is available

● MPLs are generally expected to be met 100 percent of the time

● SLAs are strictly measures of service availability

● SLAs are generally expected to be met 80 percent of the time

Server and Data Center Consolidation Strategy● Internet Connected Offices

● Eliminate private network connection, remove office servers

● Significant savings – take advantage of less expensive network bandwidth

● Provides computing experience equivalent to local server environment

● Three levels of ICOs

Server and Data Center Consolidation Strategy● ICO-1 (Smart Card)

● ISP provides ICO site’s Internet connectivity

● Client systems access corpnet through VPN (PPTP)

● ICO-1 is not managed centrally● Intended for offices of 20 employees or

less

Server and Data Center Consolidation Strategy● ICO-2RP (Persistent Connection,

Regional Provider)● Carrier is an in-country or in-region

provider● Carrier is not managed by Microsoft IT

Carrier Strategies team● In many cases the carrier is designated by

the local government● Level of support is not guaranteed

Server and Data Center Consolidation Strategy● ICO-2 (Persistent Connection)

● Requires a persistent, tunneled connection to the Internet

● Smart card not required to log on ● More costly than ICO-1 due to specialized

equipment● Centrally managed● Targeted for sales and marketing offices with 20 to

50 employees

● ICO Implementations fast and straightforward

Server and Data Center Consolidation Strategy● Regional data centers reduced from 24 to 11● Large data centers responsible for full range

of services including backup and disaster recovery

● Smaller data centers responsible for services associated with latency

● Cost avoidance issues● Iterative approach to consolidation

Infrastructure Server Consolidation Strategy● Wide variety of infrastructure server

types● Consolidating domains with Windows

Server 2003● Higher workloads on fewer servers● Greater directory control and flexibility

● Consolidation allowed infrastructure servers to be repurposed

Infrastructure Server Consolidation Strategy

Before Consolidation After Consolidation

●203 domain controllers●48 domain controllers in corporate headquarters

●138 domain controllers ●36 domain controllers in corporate headquarters

● Domain Controller Consolidation

Infrastructure Server Consolidation Strategy● WINS, DHCP, DNS, ISA, Proxy Servers

● WINS and DNS required assigning new static IP addresses

● User communication paramount● DCHP service consolidated onto regional

domain controllers● Use of secondary networks eases transition

● ISA and Proxy servers were removed at beginning of ICO implementation

● User impact high priority consideration

Centralized Server Management Strategy● 22 people manage incident support for

approximately 10,000 servers● Remote support team was in-sourced● 25% service SLA improvement● Standard service offerings provided for

all production servers

New Operations and Procedures Strategy● Incident management practices enhanced

monitoring ● Problem management practices resolved

recurring service issues● Configuration management practices defined

standards by which devices are tracked, configured, and accepted

● Change management process revised the way changes are reviewed and implemented

Future

● Next target is application servers● BUIT application support● Represents 75% of all the systems in

Microsoft IT● Program will focus on:

● 64-bit computing● Virtual Server● Dynamic Systems Initiative● Windows System Resource Manager

Conclusion

● Server and data center consolidations very successful at Microsoft

● Reduction of 40% ($23.2 million) in costs

● Opportunity to align IT infrastructure with business strategy

● Meeting future demands as well as immediate needs

For More Information● Additional content on Microsoft IT deployments

and best practices can be found on http://www.microsoft.com● Microsoft TechNet

http://www.microsoft.com/technet/itshowcase

● Microsoft Case Study Resourceshttp://www.microsoft.com/resources/casestudies

● Increase IT Efficiency: Maintain Fewer Servers http://www.microsoft.com/serverconsolidation

● E-mail IT Showcaseshowcase@microsoft.com

This document is provided for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT.

© 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Active Directory, Office, Windows, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.