Every morning we hear about the staggering job losses mounting up in businesses around the world. Hundreds of thousands of jobs have been lost so far. Unfortunately, no one seems immune from the impacts of this recession. In fact, the recession is now impacting the data center and a new segment of the work force is at risk – your servers!

Would you keep an employee who worked less than 4 hours per day, over-spent valuable resources and was someone you had to manage constantly – obviously, the answer is NO! That is the situation today with install base single-core servers.  Aging servers are a perfect target for downsizing in this tough economy. Industry analyst IDC estimates that there are approximately 30 million servers installed in businesses around the world and about 40% of those use single-core processors (4 years old or older).

Let’s look at the 2008 performance review of these single core servers.

ð       Excessive Spending Habits: For the performance they deliver, these servers take up too much space and over-consume power and cooling resources.

ð       Lazy Work Habits: A typical non virtualized server runs at only 10-15% utilization – meaning they sit idle a majority of your work day.

ð       Needs Excessive Management: Aging servers require more maintenance. Extended warranties are expensive (estimated $600-1200 per server depending on the type of server) and if you don’t extend the warranty, the risk of downtime is on IT and the business. While the costs to maintain a server vary widely , during a recent discussion with Forrester research, they indicated that an aging server can cost up 3x the costs of an in-warranty server (under standard 3 yr manufacturer support).

Continuing to use these old servers is not a wise business strategy. But if you fire your existing infrastructure, who can you hire to do the work? Simple, you hire fewer new multi-core servers running virtualization to replace a large number of install base servers.

But, is replacing them worth the effort … I mean, why fix what ain’t broke? About 2/3 of IT’s budget is consumed maintaining existing infrastructure (source Gartner), leaving a measly 1/3 for innovation and value add business capability. So in this recession, unless you are focused on reducing OpEx, the IT budget that you are cutting is likely restricting your business competitiveness and new service delivery - the value of innovation.

Replacing old servers with new offers both cost and productivity advantages for IT in addition to improved services and competitiveness for business. Read some of the success stories from businesses in 2008 where proactive IT investment commonly resulted in 30-40% reductions in total costs, enhanced business services, improved competitiveness and rapid financial ROI. In fact, the business ROI on replacing an old server with new is staggering and in many cases can pay for itself in less than 12 months, by reducing power / cooling costs, avoiding new construction, simplifying and reducing maintenance costs, reducing applicaiton and OS licensing costs and more.

What characteristics should you look for in a new server hire? (to maximize this savings and accelerate ROI)

ð       Versatile Performance. Consider a wide range of benchmarks and application usages when evaluating capability of the server you intend to hire.  Servers hired today for a specific task may likely get re-purposed over their lifetime.

               Also ... if your workload is specialized and data demanding (like database / enterprise resource planning / business intelligence) consider a specialized

               server with unique skills, like larger compute, I/O and memory scalability to handle these larger workloads with increased reliability and headroom for peak loads.

ð       Energy Efficiency. Newer multi-core servers feature nearly 10x the performance / watt of single core servers. Use the SPECPower benchmark to assess which servers are the most energy efficient.

ð       Virtualization. When virtualizing servers, hire servers that can support robust consolidation ratios and built for flexibility and versatility. Many new hardware-assist technologies help boost the ability to migrate virtual machines (application/OS combination) from one server to another.

ð       Standardization. Unlike hiring employees where diversity is valued and encouraged, using a smaller number of reference designs in your IT environment, can lower operating and support costs.

A final consideration for hiring new servers is total cost of ownership. Just like hiring people, you must consider the incidental or hidden costs behind the salary and sign-on bonus (do these still exist today?). The average life for a server is 4 years. Buying an inexpensive server for your needs today may optimize today’s budget but may end up costing you over the long run in software licensing, power/cooling. Intel IT recently did an ROI analysis on buying higher end processors and found that using higher end processors reduced TCO significantly – by doing more with less.

Last year, Intel IT fired about 20,000 servers and more are expected to receive pink slips in 2009 - read more about this in the 2008 Intel ITannual perfomance report

If your goals are to lower costs, improve services and boost revenue while increasing business competitiveness, then replacing aging server infrastructure is an Intelligent Investment. Learn more at www.intel.com/go/xeon

Are your single core servers at risk of losing their jobs?  If not, they should be!

So the Question is ... Will You Cut IT Costs and Boost Business Competitiveness by downsizing your Server Infrastructure in 2009?

Chris

Virtualization is transforming the way IT looks at server technology and usages in the data center.  In Lesson 1 , I interviewed Sudip Chahal (Intel IT) about the wide variety of use models for virtualization that are being deployed and evaluated across data centers worldwide. 

It was clear to me that the sheer volume of interest and activity around virtualization was transforming the way that IT was looking at technology, affecting their requirements for future server purchases. In Lesson 2 Sudip Chahal (Intel IT) and I discuss the changing technology requirements IT has on server platforms and technology across the data center to support both consolidation and emerging flexible usage models that depend on live VM migration.

Yesterday I had the chance to sit and discuss virtualization with Matt Eastwood, a leading analyst from IDC.  Matt refered to these new live VM migration models under the concept of improved mobility for the data center.  During our dicussion I mentioned this blog and the similarities to the themes I was writing about.

I invite you to view this short video (~ 5min) and comment about how your server product requirements are changing as you evaluate or deploy virtualization in your business.

Namasté

Chris 

OK ... Selecting the right server is anything but simple, but the process should be.

Selecting the right server to meet your business needs is critical to meet the changing needs of your business. What is right for you, is not likely right for the next IT professional – Why? In my experience, every IT and business is unique. What applications you run, the technology you have deployed today and your business goals are most likely are different from your peers and competitors.

Choosing the wrong server could result in sub-optimal business and financial results. Oversizing your server can result in too much headroom and under utilization over the life of your server deployment. On the other hand, if you under undersize, you may need to replace your server earlier than you planned or deal with increased complaints from users or customers (if they complain) about unresponsive applications during peak work times.

This guide highlights the latest technology options available from Intel and helps walk you through three easy overview steps to select and size your next server.

Step 1: Needs

What do your applications demand of your server?

Step 2: Capabilities

Compare capabilities and benefits of different servers

Step 3: Match

Optimize value by matching needs to capabilities

About 3 months ago I delivered a 2-part viedo series on the benefits of 45nm process technology (part 1, part 2). As time has progressed, the intel roadmap has continued to evolve and deliver increased benefits. On Sept 8th 2008, we introduced four new 2-socket processors in our Xeon 5400 product line and this past Monday (Sept 15th), we introduced a whole new series of products for our 4-socket product line, the Xeon 7400 series (codename: Dunnington). All of these new products feature 45nm process technology and the enhanced Intel Core Microarchitecture.

Here are some highlights of the benefits available for IT solutions

 Better Performance: Xeon 7400 features up to 6-cores and 16MB cache per processor. It is staggering to think about what an individual server is now capable of doing.

o Over 1 million transactions per minute (8 socket TPC-C* result)
o Over 600,000 transactions per minute (4 socket TPC-C* result)
o Over 500,000 business operation per second (4 socket Java SPECjbb*2005 result)
o Learn more about performance results of the Xeon 7400 products here

 Energy Efficient: The performance of 45nm processors (including the 6core) is being delivered in the same power/thermal envelopes as previous quad-core processors making the performance per watt ratio particularly appealing and beneficial to managing data center space and minimizing cooling challenges while growing performance capability. Many customers are refreshing older servers and seeing dramatic reductions in total cost of operations and space requirements. Evaluate your potential benefits with the Xeon estimator

 Investment Protection – All 45nm intel xeon processors (xeon 7400 and xeon 5400) are platform compatible with their 65nm quad-core predecessors (xeon 7300 and xeon 5300 respectively) so adoption, certification and integration into existing IT environments requires less effort.

 Flexible Virtualization: All 45nm Intel Xeon processors contain a technology called Intel VT FlexMigration that allows newer 45nm processors to be live migration compatible with previous 65nm intel xeon processors. So with current virtualization software support, IT customers can migrate virtual machines across multiple generations of intel processors, all in one big pool of computing.

 Better Business and Science: Many of the world’s top companies are using Intel’s 45nm products coupled with their software solutions to enhance their IT infrastructure. Last week Cern opened the Large Hadron Collider focused on recreating the big bang . Read more about how 45nm intel technology is playing an integral role in gaining insights into the formation of the universe or check out how your peers are benefiting from new technology at www.intel.com/references

 Eco-Friendly: If your company or boss has a green thumb, you may be interested in knowing that the new Xeon 5400 products are now built with materials which are both lead and halogen free (halogen is a material known to contribute to global warming)

Finally, I came across this video where Nathan Brookwood (analyst from Insight 64) discusses the new Xeon 7400 product (Dunnington) and his outlook on technology roadmaps moving forward.

In the next few weeks, I will be compiling and answering the top 6 questions around 45nm … so ask away.

Chris

Watt do you care about more?

the Power Consumption of your servers (watts) or the Power Efficiency of your servers (performance / watt)

... or maybe you prefer the Performance per Watt per SqFt argument

I have spent a lot of my time the last several years discussing this topic with IT professionals around the world - and there are a lot of varying opinions.

I believe that Performance per Watt is a better measure of overall value for the data center and server room.

The power consumed by a server is an important measure, but power only comparisons can be misleading.

Example: If server ‘A' consumes 50W less power than server ‘B', then it can save IT $79 per year per server in power and cooling costs (assumes $0.08 kW/hr power costs and cooling costs equal to power costs). Scale that $79 savings per server across a data center with thousands of servers and it can be a pretty impressive number.

However, if a server with 50W lower power delivers lower application performance ... is the power savings worth it? The answer of course depends ... but generally in my experience the answer is a resounding No.

Example: What if server A (the 50W lower power server) underperforms server B by 33% in performance. This means that you need to deploy more ‘A' Servers to get the same performance as ‘B' Servers. In fact, with a 33% performance advantage, you need only 3 ‘B' servers for every 4 ‘A' servers. The higher performance per Watt delivered by server B reduces acquisition costs, reduces power consumption (less servers) and minimizes space and eases manageability. This example is shown graphically above

What do you think? What power and performance metrics do you look at before purchasing servers

... Lower Power or Higher Performance per Watt?