Cost Efficiency Savings from an IT perspective
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Transcript of Cost Efficiency Savings from an IT perspective
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Cost Efficiency Savings from an IT perspective
Ravi Nannapaneni Ravi Nannapaneni Principal EngineerPrincipal Engineer Intel CorporationIntel Corporation
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243,000 LAN nodes
5,335 wireless access points
166 terabytes of WAN traffic per month
70,395 instant messaging users
137 million e-mail messages per month
95,000 e-mail mail boxes
IT Practices @ Intel
430,000 Data Center square feet
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2008 Efficiency Initiatives
•Data Center Efficiency•Data Center Consolidations•Server Consolidations & Refresh
•Service Desk Consolidation•Business Solutions & Enterprise
Resource Planning (ERP) Re-platform
•Retiring Applications•Supplier Consolidation & Internal
IT Savings
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Data Center Consolidations•Long term program goal*
USD 500 to 750 million in NPV•Aligned Intel worldwide
network to support the strategy
•Completed application characterization for all core IT services
•Reduced 21 Data Centers in 2008 18% efficiency gain
2008 Savings: USD 45M from Data Center Capital Expenditure
* By standardizing compute environment, increasing utilization, and reducing data center footprint.
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2004 • 5.1M bops• 6 racks• 126 servers• 240 sq ft• 48 kW
Data Center Refresh Utilizing Consolidation and VirtualizationBusiness Requirement: Deliver 5.1 Million Business Operations Per SecondUsing 45nm Quad-Core Intel® Xeon® Processor 5400
EstimatedEnergy Savings$53K
Savings3
AnnualEnergy Costs87%Reduction2
Floor Space83%Reduction1
The Bottom Line Benefits for IT (< 2 year ROI4)
2008 • 5.1M bops• 1 rack• 17 servers• 40 sq ft• 6 kW
Whitepaper at http://communities.intel.com/servlet/JiveServlet/previewBody/1320-102-1-1374/Transforming%20DC%20Environment.pdf
2008 Savings: USD 45M from Server Refresh, USD 1.7M from Server Virtualization
Service Desk Consolidation
1 - Source: MetricNet “Industry Megatrends: A Benchmarking Perspective”2 – Based on data from Intel Controller3 – Plan ‘09 ISD estimate, includes functions in addition to L1 support
Did you hear the news? Intel SD saves Intel
$100M annually on Incident
Mgmt alone!
16% reduction in Cost Per Incident
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Business Solutions & ERP Re-Platform
•Landed 23 targeted ERP programs to support Intel’s growth
•Engineering Computing Data Center Virtualization (DCV) resulted in cost avoidance of USD 33 million
•Achieved 80% utilization (10% more in 2008) which reduced the need to purchase more resources
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Retiring Applications
•Focus on applications that are outdated or no longer needed
•Plan to reduce IT-owned applications by 50% from about 1600 to 800 over four years
•Reduced 37% of applications since start of program in 2007
Program Savings: NPV of more than USD 50M
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Supplier Consolidation & Internal IT Savings•Manage supplier cost by optimizing services
•Reviewing key supplier spends•Considering dual-source options•Eliminating unnecessary services
•Achieved USD 48 million in validated cost savings from our IT business groups
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Plans for 2009•Given the economic environment, it will be even more
critical for IT to deliver solutions and services to help drive company-wide efficiency and productivity
• Intel plans on continued investment in programs that deliver efficiency and productivity gains
Impact Intel’s Product Development and Influence the Industry to Adopt Intel Technology
SolutionsSolutions Deliver Enterprise Solutions that Drive Intel’s Growth
Deliver Competitive IT Operational Services that Power Intel’s BusinessOperationsOperations
PeoplePeople Build an Engaged and Energized IT Team
InfluenceInfluence
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Intel IT Cost Related Initiatives for 2009•Continue Operating Cost Reduction through
•Data Center and Server consolidation•Client Manageability with Intel vPRO technology•Reducing cost of storage solutions•Continued PC refresh•ERP Re-platform (bring it home)•Workflow and Project delivery
•Further Enable Collaboration and Enterprise Social Media Capabilities
•Continue Delivering Enterprise Solutions to Enable the Business
•Manage Spending
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Remote client management— all regardless of system health or if the PC is powered on or not• Remotely deploy security patches• Collect PC HW/SW inventories• Diagnose and fix problems
New for 2008: Client Initiated Remote Access • Allows PCs inside or outside the firewall to request help• Remotely unlock Intel® Anti-Theft Technology encrypted HDDs
(Q1’09)Most Secure• Help protect from virus and worm outbreaks and keep critical
agents runningNew for 2008: Intel® Anti-Theft Technology protects HDD data from
compromise even if PC is stolen or drive is repurposed (Q1’09)
Control Costs by Improving ManageabilityControl Costs by Improving ManageabilityvPro Technology Enables:TM
Expected Savings: USD 0.45M in 2009 and USD 0.9 in 2010 on 3 use cases*
* Remote diagnosis and remote repair, remote diagnosis and local repair, and remote configuration
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Questions or comments?Questions or comments?Please contact:Please contact:Ravi Nannapaneni