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Server and Data Center
Consolidation
Microsoft IT enhances cost savings,
availability, and performance
Published: June 2004
Solution Overview
Situation
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Microsoft IT needed to reduce enterprise complexity and costs
Solution
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Improve IT operational efficiency, while reducing TCO
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Develop site taxonomy and Minimum Performance Level system
Implement ICOs
Consolidate servers and data centers
Centralize server management
Institute new operations practices and procedures
Benefits
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Data center, server consolidation: 37% reduction in spending
Site reduction: 54 percent
Infrastructure server reduction: 27%
Data centers: rent and maintenance reduced by 50%
Products and Technology
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Windows Server 2003
Exchange Server 2003
Office System
Excessive Complexity and Costs
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Too many data centers and servers
Central management function not
optimized
Duplication of storage, applications, and
hardware
Inconsistent levels of support
High rent and maintenance costs
Business Value
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Total $23.2 million in savings to date
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Server and Data Center consolidation
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40% reduction
$18.3 million reduction
Internet Connected Offices
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$4.5 million savings
Enhanced time to market
Business Value
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Infrastructure Server Consolidation
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Centralized Server and Data
Management
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Savings of $4.3 million
Incident Management team of 22 supports
10,000 servers worldwide
New Operations Practices and
Procedures
Catalysts and Background
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Key Catalysts:
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Hardware improvements
Decreased communication costs
Backbone bandwidth
New connectivity options
Product improvements
Exchange infrastructure consolidation
Catalysts and Background
Sever Consolidation Glossary
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Logical: server management, centralized
management of business critical systems
and applications
Geographic: closing of data centers, and
implementing ICO offices
Homogenous: scalability of Microsoft
products
Heterogeneous: different applications
from multiple servers onto one server
Server and Data Center
Consolidation Strategy
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Systematically develop a layered tier
system, or taxonomy, of IT service sites
Define service levels that are provided
at those sites
Ensure consistency with the business
requirements of the services that the
sites support
Begin ICO, consolidation activities
Server and Data Center
Consolidation Strategy
Site
Number of
People
Primary Site
Purpose
Network
Servers
Data Center 1 or 2
N/A
IT Infrastructure
Requires at least
redundant circuits
Servers on-site
High Availability
Office
N/A
PSS Call Center,
Network Hub, or other
valid business need
Requires diverse
access (2 paths)
Consolidate servers
to the Data Center
where you can meet
MPL
Standard Office
50 and greater
N/A
Poor ISP and/or
requires more
bandwidth than
DSL
Consolidate servers
to the Data Center
where you can meet
MPL
ICO-2 (Persistent
Connection)
20-150
Sales & Marketing
Good ISP,
requires more
bandwidth than
DSL
Consolidate servers
to the Data Center
where you can meet
MPL
ICO-2RP (Persistent
Connection,
Regional Provider)
20-150
Sales & Marketing
Good ISP
Consolidate servers
to the Data Center
where you can meet
MPL
ICO-1 (Smart Card)
1-20
Sales & Marketing
Good ISP
None
Server and Data Center
Consolidation Strategy
Site Type: ICO-1 (Smart Card, Small, Unmonitored)
Server and Data Center
Consolidation Strategy
Site Type: ICO-2RP (Regional Provider, Persistent
Connection, Small/Medium, Monitored)
GTS Cable Room
Routers and
Switches
(Possibly)
PBX
(Possibly)
File/Print
(Possibly) Active
Directory®
Server and Data Center
Consolidation Strategy
Site Type: ICO-2 (Persistent Connection,
Small/Medium, Monitored)
GTS Cable Room
Routers and
Switches
(Possibly)
PBX
(Possibly)
File/Print
(Possibly) Active
Directory®
Server and Data Center
Consolidation Strategy
Site Type: Standard to high availability building (Large)
GTS Cable Room
Routers and
Switches
(Possibly)
PBX
File/Print
(Possibly) Active
Directory®
Server and Data Center
Consolidation Strategy
Site Implementation
Internet
Connected
Office – 1
Internet
Connected
Office – 2RP
Redmond
DSL/Cable or Local
ISP/Equant
Local
Carrier/Regional
Provider
(Persistent VPN)
Internet
AT&T/GX
Leased Line
AT&T/GX Equant
Leased Line
Internet
Connected
Office – 2
Standard to
High Availability
Building
Leased Line to
Local ISP
(Persistent VPN)
AT&T/GX
Leased Line
Data Center
Exchange
Active
Directory
File and
Backup
Server and Data Center
Consolidation Strategy
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MPL development – differs from SLA
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MPLs are relative measures of
performance when a service is available
MPLs are generally expected to be met
100 percent of the time
SLAs are strictly measures of service
availability
SLAs are generally expected to be met 80
percent of the time
Server and Data Center
Consolidation Strategy
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Internet Connected Offices
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Eliminate private network connection,
remove office servers
Significant savings – take advantage of
less expensive network bandwidth
Provides computing experience equivalent
to local server environment
Three levels of ICOs
Server and Data Center
Consolidation Strategy
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ICO-1 (Smart Card)
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ISP provides ICO site’s Internet
connectivity
Client systems access corpnet through
VPN (PPTP)
ICO-1 is not managed centrally
Intended for offices of 20 employees or
less
Server and Data Center
Consolidation Strategy
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ICO-2RP (Persistent Connection,
Regional Provider)
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Carrier is an in-country or in-region
provider
Carrier is not managed by Microsoft IT
Carrier Strategies team
In many cases the carrier is designated by
the local government
Level of support is not guaranteed
Server and Data Center
Consolidation Strategy
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ICO-2 (Persistent Connection)
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Requires a persistent, tunneled connection to the
Internet
Smart card not required to log on
More costly than ICO-1 due to specialized
equipment
Centrally managed
Targeted for sales and marketing offices with 20 to
50 employees
ICO Implementations fast and straightforward
Server and Data Center
Consolidation Strategy
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Regional data centers reduced from 24 to 11
Large data centers responsible for full range
of services including backup and disaster
recovery
Smaller data centers responsible for services
associated with latency
Cost avoidance issues
Iterative approach to consolidation
Infrastructure Server
Consolidation Strategy
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Wide variety of infrastructure server
types
Consolidating domains with Windows
Server 2003
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Higher workloads on fewer servers
Greater directory control and flexibility
Consolidation allowed infrastructure
servers to be repurposed
Infrastructure Server
Consolidation Strategy
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Domain Controller Consolidation
Before Consolidation After Consolidation
●203
domain controllers
●48 domain controllers in
corporate headquarters
●138
domain controllers
●36 domain controllers in
corporate headquarters
Infrastructure Server
Consolidation Strategy
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WINS, DHCP, DNS, ISA, Proxy Servers
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WINS and DNS required assigning new
static IP addresses
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DCHP service consolidated onto regional
domain controllers
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User communication paramount
Use of secondary networks eases transition
ISA and Proxy servers were removed at
beginning of ICO implementation
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User impact high priority consideration
Centralized Server
Management Strategy
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22 people manage incident support for
approximately 10,000 servers
Remote support team was in-sourced
25% service SLA improvement
Standard service offerings provided for
all production servers
New Operations and
Procedures Strategy
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Incident management practices enhanced
monitoring
Problem management practices resolved
recurring service issues
Configuration management practices defined
standards by which devices are tracked,
configured, and accepted
Change management process revised the
way changes are reviewed and implemented
Future
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Next target is application servers
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BUIT application support
Represents 75% of all the systems in
Microsoft IT
Program will focus on:
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64-bit computing
Virtual Server
Dynamic Systems Initiative
Windows System Resource Manager
Conclusion
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Server and data center consolidations
very successful at Microsoft
Reduction of 40% ($23.2 million) in
costs
Opportunity to align IT infrastructure
with business strategy
Meeting future demands as well as
immediate needs
For More Information
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Additional content on Microsoft IT deployments
and best practices can be found on
http://www.microsoft.com
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Microsoft TechNet
http://www.microsoft.com/technet/itshowcase
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Microsoft Case Study Resources
http://www.microsoft.com/resources/casestudies
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Increase IT Efficiency: Maintain Fewer Servers
http://www.microsoft.com/serverconsolidation
E-mail IT Showcase
[email protected]
This document is provided for informational purposes only.
MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT.
© 2003 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS
SUMMARY. Microsoft, Active Directory, Office, Windows, and Windows Server are either registered trademarks or trademarks of
Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein
may be the trademarks of their respective owners.