Data Centers and Networking
Data Centers and Networking
Our organization has experienced devastating losses due to ten unscheduled outages. Updating Tier I data center to Tier III data center is necessary because Tier III data center can reduce downtime to 1.6 hours per year and provide a 72 hour power outage protection. Also, updating can save $24 million loss and bring $13 million benefits over three years. Tier III data center can be maintained and replace equipment without shutting down systems since a redundant path of power and cooling is added. Redundant capacity components provide maintenance and increase safety of the database. Tier III is also concurrently maintainable which means it can improve the system availability by decreasing unplanned system outages which result in reducing the downtime. Lastly, it provides 99.98% availability compared to Tier I’s 99.67% which can reduce more than 1600 minutes downtime for us. In order to upgrade Tier I to Tier III, it requires a $35 million investment at first. It will take about one year to start to generate benefit. The benefit basically comes from the different losses between Tier I and Tier III. We currently lose $25 million due to downtime, but after the upgrading, the loss will be reduced to $1.56 million. We could gain about $48 million over three year period and the profit is $13 million. For all these great reasons, we should upgrade our data center as soon as possible.
Work Citation
Beal, Vangie. “Data Center Tiers.” What Is Data Center Tiers? Webopedia. Webopedia, n.d. Web. 25 Jan. 2015. Data Center Site Infrastructure Tier Standard: Topology (n.d.): n. pag. Uptime Institute, LLC. Web. 25 Jan. 2015. “Explain: Tier 1 / Tier 2 / Tier 3 / Tier 4 Data Center.” Linux Unix Tutorial for Beginners and Advanced Users NixCraft RSS. NIXCRAFT, 07 June 2008. Web. 25 Jan. 2015. Rouse, Margaret. “Uptime Data Center Tier Standards.” Tech Target, n.d. Web. 25 Jan. 2015. “Tier Standards Overview | Data Centers | Colocation America.” Colocation America. N.p., n.d. Web. 25 Jan. 2015. Calculation:
| Annual Downtime Cost | |||
| Availability | Downtime | Loss | |
| Tier I | 99.67% | 1734.48 | $25,670304.00 |
| Tier III | 99.98% | 105.12 | $1,555,776.00 |
| Difference | 0.31% | -1629.36 | $24,114,528.00 |
| Downtime Cost (per min) | Min for one year | ||
| $14,800 | 525600 | ||
| 3 Year Cost/Benefit(Tier III) | ||||
| Year 1 | Year 2 | Year 3 | Total | |
| Cost | $35,000,000 | $0 | $0 | $35,000,000 |
| Benefit | $0 | $24,114,528 | $24,114,528 | $48,229,056 |
| 3 Year Net Benefit | $13,229,056 |