Most of the time, server ROI is measured on the data center scale, replacing tens, hundreds, or even thousands of servers with fewer higher-performing and more energy efficient servers.

But...have you ever wondered how much power you could save if you replaced every 4 year old server in an entire country with Xeon 5500 Nehalem-based systems?  What about how much CO2 that could be removed for those same 4-year old servers – and number of cars it effectively removes from the road?

Well, wonder no more!  Check out this short paper for an eye-opening comparison of the UK, Germany, and France, and how big of an ROI they can realize if the entire country refreshed ALL of their 4-year-old servers.  It looks at power savings, land reclamation, and monetary savings in slightly different terms, like how much space can be saved in comparison to the floor area of Notre Dame Cathedral?  You’ll need to read on to find out more… J

Additionally, all calculations were done using the Xeon ROI tool, so check it out and come up with some more interesting comparisons based on your city, state, or country data.  Be sure to post them here!

There’s a video going around from one of Intel’s top external customers.  Before you see this (video linked below) I wanted to position this correctly.  I caught up with Mr. X at an undisclosed coffee shop and got his approval to share publicly the messages that we would have rather had him go out with. Those messages are as follows:

Mr. X’s 4 year old servers were a burden on his organization, he spent all of his budget on just maintenance, nothing left for innovation.

He looked at his old infrastructure and determined that replacing them with more powerful-energy efficient servers from Intel was a strategic investment.

The New intel Xeon 5500 based servers provided the opportunity for him to innovate again.  He claimed that these new Intel Xeon Processor 5500 (Nehalem-EP) are the best enabler of IT business value that he's seen in years.

They boosted energy efficiency, saved him big $ and extended his facility lifespan – now he doesn’t have to go build a new data center. 

He replaced his old servers in a 9:1 ratio (getting rid of 9 old and replacing with 1 new) that enabled him to cut operational expenditures by 90% …And that savings alone is paying for the investment in these new servers in just 8 months. 

By strategically investing in IT when his competitors hunkered down and cut spending – he is now positioned to grow faster and gain share as the economic upturn arrives.

Ok, now that I’ve had a chance to convey his real messages, you can check out this video.

At Intel, we not only pack a lot of performance in a small form factor, we also pack a lot of great demos and theater presentations into our booth at Oracle OpenWorld in San Francisco (South Moscone, booth #1621).  We have 5 demos from 5 of our customers—Cisco, Dell, HP, IBM, and Sun—and 3 other demos showcasing Wind River, Intel’s SOA Expressway product, and last, but certainly not least, Intel’s amazing and upcoming Nehalem-EX processor, which you heard Michael Dell praise in his keynote this morning.

Over the course of the three days of our booth at OOW (Monday through Wednesday this week), we will have over 35 brief presentations that will help you plan your requirements for your next generation data center.  They are short and sweet, and you can ask all the questions you want.  If you simply attend a presentation and get a few more stamps form our demo stations, you can enter to win one of two netbooks that will be given away at the end of each day.

Outside of our booth, you may find us presenting in various partners’ booths and we hope to see you in a session we are having later today (see info below).  We had an amazing session yesterday from resident Intel genius, Steve Shaw.  The huge room was filled to capacity.  At this other session today we will be giving away a netbook.  Here are the logistics for today’s session:

ID#: S309892

Title: Ten Ways to Improve J2EE Application Performance on Multicore Systems

Track: Oracle Develop: Enterprise Java and Oracle WebLogic

Date: 13-OCT-09

Time: 17:30 - 18:30

Venue: Hilton Hotel

Room: Yosemite B

We hope to see you around somewhere at Oracle OpenWorld, but if for some reason we miss you entirely, please visit www.intel.com/server for more info on Intel’s fantastic products.  Also, please visit Channel Intel on youtube for some videos from the event.

Really good case study for a leading Turkish bank that used the Xeon ROI tool to justify their server refresh with Xeon 5500 and 7400 platforms:  http://communities.intel.com/docs/DOC-4114#cf

First there was the Multi-Billion Dollar Automobile “Cash for Clunkers” program that I wrote about back in early August. Then in late August we started reading more about the planned $300M state-run rebate programs for consumer purchases of new ENERGY STAR® qualified home appliances. Appliance categories eligible for rebates include: central air conditioners, heat pumps (air source and geothermal), boilers, furnaces (oil and gas), room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heaters.

The government wants to make cars and homes more energy efficient, while helping to support the nation’s economic recovery.  But what about making Data Centers more efficient?

A couple of years ago the US Environmental Protection Agency reported that the energy consumption associated with data centers had doubled between 2000 and 2006, reaching some 60 billion kWh in 2006, roughly 1.5% of the entire US energy use. The EPA says this is expected to double again by 2010.  The same authors of that report previously calculated that US servers currently use the same level of electricity as all color TVs in the country combined. 

So this got me thinking…which industries have done the most to increase output per energy unit and which products also offer the most attractive paybacks when you invest in them.  The findings were interesting to say the least.  Let’s first look at the sectors creating more energy-efficient products over the last 30 years*.

• Autos – 1978 (14.3 MPG), 2008 (20 MPG): Energy Efficiency gains = 40%
• Airlines – 1978 (22.8 Revenue passenger MPG), 2008 (50.4): Energy Efficiency gains = 121%
• Agriculture – 1978 (0.63 units of output per unit of energy use), 2008 (1.46): Energy Efficiency gains = 132%
• Steel Mfg – 1978 (63 lbs of steel per MBtu), 2008 (167 lbs): Energy Efficiency gains = 167%
• Lighting – 1978 (Incandescent light bulb – 13 lumens per watt), 2008 (Compact Fluorescent Bulb – 57 lumens per watt): Energy Efficiency gains = 339%
• Computer Systems – 1978 (1,400 instructions per second per watt), 2008 (40,000,000 instructions per second per watt): Energy Efficiency gains = 2,857,000%

*Source:  “A Smarter Shade of Green,” ACEEE Report for the Technology CEO Council, 2008.

Next let’s look at some big ticket energy efficient products that offer the most attractive paybacks on their investments. (Note: Buying a hybrid automobile wouldn’t make this list below in terms of rapid payback, hence not included.)

• Central Air Conditioning: 4.7 year payback per Energy Star Savings Calculator (I used Los Angeles as Location)
• Freezer: 4.3 year payback per Energy Star Savings Calculator
• Refrigerator: 2.8 year payback per Energy Star Savings Calculator
• Commercial Ice Machine: 2.1 year payback per Energy Star Savings Calculator
• New Intel Xeon 5500 based Server: 9 months payback per the Xeon ROI estimator at www.intel.com/go/xeonestimator. (I modeled refreshing from older 2005 Single-Core servers, getting 10:1 server consolidation ratio.)

IT industry far exceeds others at increasing output per energy unit… and Intel servers also offer a faster payback on investment than other energy efficient products (including Energy Star Products).  Yet there is not government stimulus package to help encourage these purchases in energy efficiency. Simply, this is the most energy efficient investment that the government won’t help you make.

I would be curious to hear what you think.

bryce

Intel's RK Hiremane & Sun's David Caplan discuss Xeon 5500 blade servers virtualization ROI

Join experts from Intel, Sun Microsystems, and Ziff Davis Enterprise on August 20 for an informative eSeminar, where you will learn:

• How Sun’s Network Express Module technology works
• How easy it is to achieve high availability and near-instant failover
• How to reduce network cabling by a factor of 10:1
• How to simplify network and storage management.

Japan announced today that it has emerged from recession, following Germany and France’s announcements last week that their economies also grew in the second quarter. 

Moody’s Economy.com Business Confidence survey shows that confidence has been steadily increasing since March ‘09.

For the first time since September ’08, “Economic Recovery” nudges above “Economic Crisis” in Google Search Volume in early August. 

In addition to this, economic forecasts (WW GDP, US GDP, and EU GDP) point to a recovery over the next 6 months.  A couple of quotes:

• The direction of real GDP is even expected to turn from negative to positive in the current quarter. The academic arbiters of the business cycle at the National Bureau of Economic Research will eventually proclaim that the Great Recession ended sometime this summer.
         Moody’s Economy.Com – July 7, 2009
• The global economy is beginning to pull out of a recession unprecedented in the post–World War II era
         International Monetary Fund, imf.org – July 8, 2009

So, why am I bombarding this blog with various optimistic economic data? Because if we really are pulling out of the abyss, I’m worried that many companies out there are sitting on servers that will not be ready for the increased demand right around the corner.         

John Gantz, IDC Vice President in his keynote speech at the start of this year’s CIO Summit in Auckland was quoted as saying there will be an unprecedented amount of IT-driven change in the next four years.  He projected that there will be a three-fold rise in mobile users and information will grow five-fold, resulting in heightened levels of security and privacy and questions on which data to store or throw away. He also mentioned that the number of interactions between people on networks will grow eight times.

So this got me thinking… Is your company looking to differentiate and go after more market share while your competitors are hunkered down and not investing in the downturn? My guess is that there are a lot of IT managers being asked to support more social media, offer more SaaS, deploy more virtual machines, and support more real time analytics to get a leg up on the competition.  My gut tells me that it will be hard to do all of this with older servers that were put into another year of extended warranty because that felt like the right move when the proverbial economic s**t hit the fan last year. 

It’s critical to be prepared for when the recovery comes, and data points to an economic turnaround happening now – are you positioning your department to own it when it arrives?

Bryce

I recently had the opportunity to sit down with Intel's Chief Virtualization Architect Rich Uhlig to discuss the new usage models and virtualization technologies in Intel new Xeon 5500 series platform. Rich and I have been friends and colleagues for several years and the video of our discussion is attached and can be viewed on Youtube. The conversation sparked some interesting questions from my colleagues, friends and children which I thought I would share with a wider audience.

First the questions from my son's (I have three boys...yes this means that my wife has the patience of a saint):

Dad, what is virtualization? Does that mean you can take people and computers and teleport them to new places, like Star Trek? Did Intel invent virtualization? Why do you think it is so cool? When I grow up, can I be virtualized?

My Answer:

Slow down.....slow down...let me try to answer the questions one at a time.

Virtualization is the ability to increase computer, network and storage utilization with multiple operating systems or logical machines, called virtual machines. This allows Dad and his friends to use more of their computers with different applications and devices. Using virtualization allows Dad and his friends to save money, save power and increase efficiency.

Response (My three son's in unison):

Boring! I thought you said your job is cool. Your such a geek......(trailing off and looking at their iPods)

My response:

Guys, hold on...let me explain. Virtualization technology IS cool. While it wasn't invented by Intel, we have worked with an industry of incredibly gifted engineers, architects and designers to create new ways for people to use their computer technology....and the best part is we are only in the beginning. By the time you are an adult you will have the opportunity to use virtualization technology in ways we are only beginning to imagine. Think of virtualization as a journey and evolution of computer technology for Dad and his friends to maximize the use of the computers that we buy/build. Hopefully, with more innovation and computer technology advances you will be able to create a virtualization layer that will allow you and your digital identity to "teleport" to new places in a virtual cloud. You won't be "virtualized" but you will be able to create your digital environment wherever there is a machine that can understand your commands. That is pretty cool. Think of it this way, you can save and play your Nintendo Wii, Sony Playstation or XBox profiles on any machine, any where in the world that can download your profile.

Response (from my 13 year old):

You mean I can play EA's Madden Football 24 hours a day with my friends, even when we are on vacation and you want me to see some historic landmark, like the Lincoln Memorial?

My response:

Well...yes but not exactly what I had in mind. (aargh!)

A recent question from my friend from a former job on Virtualization:

I hear the new Intel chip, Nehalem (formerly known as the Intel Xeon 5500 series), is the best product you guys have released in a long time, What makes the product so good, is it the virtualization technology that you work on?

My response:

     Virtualization technology provides increased instrumentation and flexibility for the Intel Xeon 5500 series platform but it is only one a host of fantastic features which make this product the best we have ever released. For Data Center managers, increased efficiency is an every day part of life. Nehalem offers increased performance, increase memory capacity, a new Quick Path Interconnect (which acts like a NUMA switch fabric on silicon, remember that cool product we launched in 1997 at Sequent Computers?) and a 2nd generation of virtualization capabilities that deliver native virtualization instruction capabilities for VMWare, Microsoft, Citrix and a host of Xen providers. It is a truly a breakthrough server product. With this new architecture and design characteristics we are able to meet the needs of a platform of new Virtualization usage models including: Rapid Application Deployment, High Availability, Virtual Desktop Infrastructures and Server Consolidation. It is a very exciting time...

My friend's response:

     Very cool. I miss working on hardware innovations...sounds like you guys at Intel are up to something special. Should I buy the stock?

My response:

     Thanks. Intel is a great place to work and we are doing some very cool product innovations. Do we always have to talk about stock price?

Finally, a recent question from a dear colleague:

     What happens if virtualization technology is deployed on every platform that Intel ships? Won't business and consumers need less devices? Won't users no longer have an insatiable demand for compute, network and storage resources?

My Answer:

    Funny you should ask that question. Rich Uhlig, Fernando Martins, Rick Olha, RK and I have debated this exact question for years. The answer is simple. Virtualization increases demand for more resources than ever before. In fact, until the recent economic downturn virtualization technology was cited by a Citigroup analyst as the key driver to Server growth in 2H 2007. For the first time in over 10 years the markets average selling price was increasing. Why? Because users could do more with every server they purchased. Virtualization actually facilitiates more usages on more application development and production environments than ever before. As we increase the performance of the instruction sets and Intel Microarchitectures we increase the capabilities that virtualization can impact for new usage models, while preserving some the legacy compatibility that users require for 32-bit application workloads. Simply stated, "we can do more with less!"

Next question (by the way this was a skeptical Intel exec.):

     Doing more with less is fine...but what about our volumes for server products? what happens when virtualization is prevalent across all of Intel CPU and Platform offerings?

My response:

    Flexibility and control are critical to all of our customers regardless of form factor. Is there anything worse then buying a new server, PC or handheld and having application compatibility errors? No. Do we really believe the world wants to become software compatibility specialists everytime Microsoft releases a new operating system? What about Dell, HP, Lenovo, IBM, Acer, Nokia, Motorola, LG, Samsung, RIM and HTC? It has taken us over 10 years of research, testing and product development to get here. Virtualization is a "Hot Topic" today and will be in the future because it makes a positive difference in our customers lives both financially and efficiently. Our job is deliver the greatest silicon products the world has ever seen, over and over and over again. Virtualization allows us to do that AND preserve the investments our customers and software partners make in developing their own operating environments. What is cooler than that? Virtualization facilitates innovation, consumption and utilization, our customers are telling us this everyday. Innovation is critical to this process, enabling our software colleagues is a must and opening up the discussion is part of the process.

Her response:

     Well, I guess you are pretty passionate about virtualization?

My response:

     I hope so...that is why you hired me.

Have a listen, enjoy the video and join the discussion of Rich and I. For us, Virtualization is a very Hot topic, that we have thought is Cool for a very long time.