Factors to reduce TCO

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Factors to reduce TCO by Mind Map: Factors to reduce TCO

1. Increasing need for security and reliability scales the economic impact of such services accordingly

2. A single network administrator can oversee a large number of servers at once

3. Therefore server efficiency is maximized

4. Virtualization allows for a Multiple Tenant Model (MTMs)

5. In a multitenant application, multiple customers use a single instance of the application simultaneously

6. customers can shift their demand from high utilization periods to low utilization periods

7. TCOs : Total Cost of Ownership

8. Source: http://news.microsoft.com/download/archived/presskits/cloud/docs/The-Economics-of-the-Cloud.pdf

9. A network admin works just as well in a Datacenter with 100 servers as one with 1000 servers

10. Thus a large Datacenter can afford less IT staff as compared to two smaller Datacenters

11. Supply-Side Savings

11.1. As cloud and other related technologies get more widespread use, compatibility between devices are increased

11.1.1. Infrastructure Labor Costs

11.1.2. Buying Powers

11.1.2.1. Operators with a large data center can purchase hardware and software at a cheaper price

11.1.3. When the electricity cost drops

11.1.3.1. operators of multiple data centers are able to take advantage of geographical variability in electricity rates, which can further reduce energy cost.

11.1.3.2. locating its data centers in locations with inexpensive electricity supply

11.1.3.3. Operates in multiple data centers instead of one single large data center

11.1.4. Security and Reliability

12. Demand-Side Savings

12.1. Virtualization

12.2. To further smooth demand, sophisticated pricing can be employed

12.3. Time-of-Day patterns

13. Multi-Tenancy Savings

13.1. Fixed application labor for multiple tenants

14. As such, security firms offer standardized options and costs for said options to set up their services for data center.

15. A datacenter can maximize its server utilization by taking advantage of daily usage patterns of people around the world

16. A server can cater to two countries of contrasting time zones, so when server usage drops to the minimum in one country, the usage will peak in the other

17. So when server usage drops to the minimum in one country, the usage will peak in the other and make up for the unused services

18. Multiple tenants can share a fixed number of server staff managing their applications server-side

19. One server group can manage multiple instances of the same application simultaneously

20. Therefore costs can be lowered by hiring the same amount of staff to manage more of the same rather than one staff to each application