2. Definitions
CAPEX – Capital Expenditures
OPEX – Operation Expenditures
PUE – Power Usage Effectiveness
PUE is proportion of total power consumption of datacenter (i.e.
including air conditioning/cooling, lightning, consumption of UPS …
to the power consumption of IT equipments)
Commonly is between 1,8-2,5 (the best „green“ datacenters in the
present have about 1,15-1,2 for tens of thousands of servers)
I.e. total power consumption = IT power consumption × PUE
3. Compare the comparable
It can not compare one time
purchase with monthly fee of
service
Why?
Initial cost of hardware (HW) is only
minority of TCO.
For correct comparison is necessary to
include all of cost (also non-cash) for
the entire period of operation.
4. What is necessary to calculate to TCO?
CAPEX
• Server cost
• Storage cost
• Infrastructure cost
• LAN (switches, …)
• WAN (firewall, loadbalancer …)
• UPS
• Diesel generator
• Racks
• Cabling
• Air conditioning (cooling)
• Server room (space - m2, raised floor, fire alarm, security
system, fire equipment …)
OPEX
• Electrical energy (see PUE)
• Human resources (see next slide)
• Contracts about support for all of equipments (servers, LAN,
cooling …)
• Leasing of space
5. What is necessary to calculate to TCO?
Separate part is human resources
Plain IT employer isn't available more than 10,5 month of year,
rather less - 4-5 weeks vacation, trainings, conferences, internal
training, sick days, illness)
Substitution for absence
Holidays
Working hours is 8,5h
All of this is included in service from cloud provider with guarantee
of availability with penalty (Service Level Agreement SLA).
24×7×365
6. What is necessary to calculate to TCO?
And others … for thought
• How much cost failure of HW?
• Price of money (inflation, exchange rates)
• Regularly check (revision) of electric cabling
Diesel generator is separate part, if it is needed
• Space for diesel generator (building, external container) – it is
necessary to solve noise, vibration …
• Electrical substation
• Fuel – filling, circulation …
• Emission
• Maintenance
7. Why choose a cloud?
OPEX vs. CAPEX
Easier planning expenditures
Decreasing CAPEX in times of economic uncertainty (crisis)
The risk of investing in technology
Protection against investing in technologies that may become
obsolete or unnecessary for me
Independence on HW suppliers
Flexibility
Pay as you growth