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Total cost modelling and strategic sourcing strategies for data centres in upcoming era

The developing demand for IT resources from organizations that are constantly increasing and improving their businesses adds significant pressure on data centres. | Total cost modelling and strategic sourcing strategies for data centres in upcoming era International Journal of Management IJM Volume 6 Issue 8 Aug 2015 pp. 57-70 Article ID IJM_06_08_007 Available online at http www.iaeme.com IJM issues.asp JTypeIJM amp VType 6 amp IType 8 ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication _ TOTAL COST MODELLING AND STRATEGIC SOURCING STRATEGIES FOR DATA CENTRES IN UPCOMING ERA Dnyanesh Sarang Sr. Manager Sourcing Analytics Global Indirect Purchase Organization Sandvik Asia Pvt Ltd Pune India Srikanth Pingali Asst. Manager Sourcing Analytics Global Indirect Purchase Organization Sandvik Asia Pvt Ltd Pune India Giri Ganesh Asst. Manager Sourcing Analytics Global Indirect Purchase Organization Sandvik Asia Pvt Ltd Pune India ABSTRACT The developing demand for IT resources from organizations that are constantly increasing and improving their businesses adds significant pressure on data centres. Industry predictions show that data centre traffic will increase at a CAGR of 23 till 2018 and their workload will increase by 14 . A certain growth in data centre investments will be witnessed along with the improving economy and increasing demand. For many organizations it becomes essential to frame a robust sourcing strategy to control their data centre requirements. Depending on the organization s IT demand the strategy should help them figure out whether to build a data centre or choose colocation services. In both cases a number of cost elements add onto the high costs of the facility. A total cost of ownership TCO model is a viable tool to estimate the overall costs involved in a data center facility. Additionally all data centres should be mindful of maintaining a data migration strategy and also plan out the lifecycle of the data centre which could potentially reduce the operating and or remodeling costs of a data centre. The lifecycle strategy