When IT and Facilities Collide, They Hit a Data Center
November 3, 2008
It's a problem numerous companies face - spiraling energy costs in the data center because the IT department, which generates the demand, doesn't have to pay the energy bill. Too often, facility executives get stuck with the bill.
If that's the case, one of the first things facility executives can do is sit down with his or her counterpart in IT and talk about the economics in data centers. One key concept for IT to understand is TCO, total cost of ownership. Given today's energy costs, the total facility costs to support a server will equal the purchase price in two years or less. Electricity used for power and cooling alone can equal the purchase price after six years.
Without that knowledge, what may start as a capital budget item of $20 million can come with millions of dollars of hidden strings that drain the operational budget. To avoid surprises, build a relationship with IT employees and make sure IT purchasers understand the full ownership cost of their purchase orders.
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