Open source and server virtualization lead state data center consolidation moves

The National Association of State CIOs today took a wide ranging measure of state data center consolidation activities and found many are now including server virtualization and open source as common uniting technologies.  Virtualization is a growing data center technology that is capturing the attention of IT for its consolidation and cost saving potential.  The combination with open source and Linux platforms offer an inexpensive way to continue the  widespread adoption of Linux in the data center. 

Twenty-nine states responded to the survey that ended June 22, 2007, representing approximately some 46%  percent of the nation’s population, NASCIO said. Participation included a wide distribution in budget considerations and geography from Alabama, Colorado and Delaware to Virginia, Washington, West Virginia and Wyoming. States responding to the survey reported that they had between one and 100 data centers with 15 being the median number of centers.   As with many of their counterparts in the corporate IT world, state CIOs are scrambling produce better results and reduce costs by consolidating state data centers for optimization of physical infrastructure and to streamline IT functions. Many states are utilizing remote back-up data center facilities for the purpose of back-up and disaster recovery and business continuity.   

Some of the key results of the 62-page survey included:  

·          States were asked to indicate new technology initiatives they are using in support of data center consolidation. A high percentage, 86%, said server virtualization was being utilized. Approximately half of respondents, 48%, indicated open source would be part of the consolidation efforts. Other new services indicated by states: Storage Area Networks (SAN), and consolidated storage purchases. Service Oriented Architecture (SOA).  

·          The survey looked at some of the challenges facing IT professionals as  they embark on consolidation. Workforce resistance to change, and Agencies’ desire to remain autonomous were the number one obstacles indicated with 89.7 and 86% responding respectively.

The list of obstacles goes like this:

1.      Workforce resistance to change 90%

2.      Agencies’ desire to remain autonomous 86%

3.      Problems experienced in moving localized devices away from current customer base 48%

4.      Backlash when consolidation didn't meet specific business needs 21%

5.      Higher than anticipated costs 17%

6.      Seeking exemptions from state statutory and regulatory requirements 17%

7.      Seeking exemptions from federal statutory and regulatory requirements 17%

8.      Failure to identify and adhere to service levels 3%  

·          States were asked to indicate factors that are driving their state's strategy to consolidate data centers. Disaster recovery and Replication, redundancy and fault tolerance were the two driving factors most indicated by respondents. Cost savings and Security and data classification were also listed as significant factors in states’ decisions to consolidate data centers.  

1.      Factors Driving States’ Strategies to Consolidate Data Centers

2.      Disaster recovery 83%

3.      Replication, redundancy and fault tolerance 76%

4.      Cost savings 66%

5.      Security and data classification 62%

6.      Better access to new technologies for all agencies 55%

7.      Aging state facilities 52%

8.      Improved information sharing/ data integration 52%

9.      Energy conservation/ Environmental concerns 41%

10.  Size 37.9%

11.  Business applications 24% 

·          The majority of states indicate that they are in progress or partially completed with their state’s data center consolidation initiative. If those states that indicate they are currently in the planning phase are included with that figure, then clearly over 62 percent of states are either planning for data center consolidation or are currently underway with their initiatives. 

1.      Status of State’s Data Center Consolidation Initiatives

2.      Completed 14%  or 4 of 29

3.   In Progress/ Partial 38%  or 11 of 29

4.     In Planning Phase 24% or 7 of 29

5.      Proposed 17% or 5 of 29

6.      No Activity 7% or 2 of 29 

·          A variety of business models are making up the data center consolidation actions. Almost 66% said the model they chose was strictly an internal state operation.  Almost 7% said it was internally hosted but vendor managed.  Ten percent went totally outsourced. Seventeen percent used a combination of internal and outsourced hosted operations.  Almost 75 used some other combination of the above.  

·          States were asked to indicate which types of infrastructure or infrastructure applications currently are being used or planned to be used in their state's consolidated data center platform. The highest percentage, almost 100% , of respondents indicated that they used or planned to use mainframes, physical security and Storage Area Networks (SAN). A high, but slightly lower percentage of respondents, ranging from 90 to 83%, utilized dual power feeds, dual internet connections, network management, servers, blade servers, networking, secure network, Network Attached Storage (NAS) and Network Operation Centers in their consolidated platforms. The next group of respondents, in the 70% range, utilize redundant systems and network infrastructure with no single point of failure, and Telephony/ VoIP in their consolidated platforms. Slightly higher than half of respondents also utilize dual backup generators, and Production Output (e.g. printing, burning of CDs, video and tape) as part of their suite of infrastructure and infrastructure applications in their consolidated data center platforms. 

·          The study looked at which agencies are currently consolidated or centralized under the state's enterprise data center platform. The highest percentage of respondents, 86% percent, indicated Finance and Administration and Information Technology as the two most common agencies to be consolidated. Other high percentage responses, ranging from 72  to 66%  indicated Personnel, Human Services/ Families and Children, and Health and Welfare as the next most commonly consolidated agencies. 

·          States were asked to indicate how they justified or will project cost savings for their data center consolidation initiatives. A majority of states indicated that they are not using a method to project cost savings. States that are projecting cost savings indicated that they are utilizing private consultants, ROI calculators, and funding models for this function. “Other” responses included, “Common sense,” “Hosting center rate reductions” and “Cost benefit analysis.”