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Article

Title: Data Center Spending Under The Microscope

Author: Dunn, Darrell Article Type: Product Analysis
Source: Information Week, n1091 p30(2) Publication Date: May 29, 2006
  ISSN: 8750-6874
  Illustrations: Graphs
URL of Publication: http://www.informationweek.com

Data center investment is under extreme scrutiny to help IT companies shift their spending priority from maintenance and operations to new technologies and innovation. The IT industry is undercapitalized because majority of tech companies are not sufficiently utilizing technology to run their technology. The latest problem to confront companies is the rising cost of energy as a result of increasing oil prices. Lighting and cooling data centers are more expensive now compared to purchasing servers and other equipment for these facilities. To address this problem, tech vendors Advanced Micro Devices and Intel are marketing dual-core server processors with built-in virtualization features. In addition, IBMs PowerExecutive reduces energy cost by automating the management of power use in data centers. Thirty-eight percent of IT dollars go to salaries and benefits of full-time employees, compared to 18 percent that is being spent on hardware. Carnegie Mellon University is trying to find a solution to this problem through its Data Center Observatory, which plans to conduct studies on data center operations and costs, and come up with approaches to make data center more energy efficient as a well as cut management and administrative functions and costs. The universitys effort has received support and funding from vendors such as HP, IBM, Intel, Microsoft, Sun Microsystems and Symantec as well as government agencies.

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