white paper
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Cloud-Enabled Data Center Infrastructure:
Helping Cloud Providers Maximize
Revenue While Providing a Strong
Foundation for Migration
CLOUD-BASED DELIVERY OF IT INFRASTRUCTURE AND
APPLICATIONS IS RADICALLY CHANGING THE WAY
BUSINESSES BUY AND USE TECHNOLOGY. Rather than having to install
and maintain their own hardware and software, IT managers can leverage cloud to reduce CapEx,
become strategic partners to the business and increase innovation. In a new IDG Enterprise survey,
more than 1,300 IT leaders say cloud is a game changer, listing business continuity, greater agility
and speed of deployment as their organization’s top cloud drivers.
Infrastructure-as-a-Service (IaaS) deployments are fueling forecasts of double-digit growth in the
annual adoption rate of cloud services, according to Gartner, which predicts that IaaS will achieve a
compound annual growth rate of 41.3% through 2016.1 More than half (51%) of the respondents in the
IDG Enterprise survey say they will be confident shifting infrastructure to the cloud.
The cloud market overall is bright. More and more companies are moving their data centers to the
cloud. Gartner estimates the worldwide market for cloud computing grew 18.5% in 2012 to $110 billion.2
The total market is expected to grow from $76.9 billion in 2010 to $210 billion in 2016, also according to
the same Gartner report. According to the 2013 IDG Enterprise Cloud Computing Study, 49% of executive management views cloud as a critical game changer, while another 40% says its allowing IT to
investigate cloud technologies. Rapid adoption is challenging public and private cloud providers’ ability
to onboard new customers while maximizing revenue (top line) and profitability (bottom line).
Meanwhile, IT directors planning to migrate their data centers to the cloud are discovering that the
move is not as simple as they had imagined. Cloud does reduce the amount of computer hardware
needed in the data center but many data center managers fail to consider that cloud requires a
robust physical infrastructure to maximize the expected benefits.
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CLOUD-ENABLED DATA CENTER INFRASTRUCTURE
Whichever side of the cloud equation you fall on—as a cloud provider or a company migrating your data center
to cloud—you need a strong foundation on which to build, or your cloud payback might fail to materialize.
At a Glance
PRIVATE/INTERNAL CLOUD—The cloud infrastructure is operated solely for an organization. It may be
managed by the organization or a third party and may exist on premise or off premise; however, all data
remains under the full control of the host company. Turnkey products for private cloud are being called
“integrated stack” solutions.
GARTNER
ESTIMATES
THE WORLDWIDE MARKET
FOR CLOUD
COMPUTING
GREW 18.5% IN
2012 TO $110
BILLION. THE
TOTAL MARKET
IS EXPECTED
TO GROW FROM
$76.9 BILLION
IN 2010 TO $210
BILLION IN 2016.
PUBLIC CLOUD—The cloud infrastructure is made available to the general public or a large industry group
and is owned by an organization selling cloud services.
HYBRID CLOUD—The cloud infrastructure integrates both private and public cloud by standardized or
proprietary technology that enables data and application portability (e.g., cloud bursting for load balancing
between clouds).
Helping Cloud Providers Maximize Profits
For tier 1 cloud service providers that operate on a multi-tenant basis, your profits hinge on the ability to get the
most out of data center floor space. Quick deployment of the physical infrastructure is crucial to your ability to
capture new customers and recognize new revenue while maximizing profitability. The physical infrastructure
needs to be deployed to optimize space and power use to maximize revenue per square foot of the data center.
Whether you are using co-location services, public cloud services or hybrid cloud, efficiency in your use of floor
space is paramount. The more you can get out of your physical footprint, the higher your revenues will be. The
key is to fill out your rack space to optimize density.
LOWERING COSTS AND MAXIMIZING PROFITS MAKES
CLOUD A GAME CHANGER
Does your customer’s
executive management
team view cloud computing
as a means of transforming
their business?
SOURCE: 2013 IDG Enterprise
Cloud Computing Study
49%
40%
6%
Not sure
Yes, executive
management views
cloud as a critical
game changer
No, but they
are allowing IT
to investigate
5%
No, our executive
management team
does not view cloud
as a viable option
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CLOUD-ENABLED DATA CENTER INFRASTRUCTURE
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To maximize revenues, cloud providers need high-density converged physical infrastructures reliant on high
speed compute, robust cabling, storage and networking. This can be a challenge when it comes to existing data
centers, most of which were not designed to be used by cloud providers.
“Many of the tier 1 cloud providers are in a challenging situation,” says Ward Wilson, Global Solutions Manager for
cloud computing at Panduit. “They have traditional data center infrastructures and they can’t just go build new
ones. This situation creates challenges they have to tackle.” What’s more, cloud providers face an unforgiving
market. One in four will be gone by 2015 due to such forces as acquisition and bankruptcy, according to Gartner.3
“CLOUD
PROVIDERS
EXIST IN A
VOLATILE ENVIRONMENT. THINGS
ARE COMING ON
AND OFF THE
FLOOR ALL THE
TIME. THEY NEED
TO HAVE THE
ABILITY TO
MORE EASILY
MOVE THEIR
INFRASTRUCTURE.”
—Ward Wilson
global solutions
manager for cloud
computing
Panduit
Consider electrical capacity, for example. “Installing the equipment required to provide cloud data center
services often means the amount of power needed to the rack will double,” says Wilson. “The existing data
center infrastructure was not set up to handle that much power.”
Heating and cooling are also impacted by the move to cloud. “The converged infrastructure that is the basis of
the cloud creates unique airflow considerations,” says Wilson. “You see situations where there’s concentrated
heat in one small section coming out of the rack. That means their cooling is not designed correctly or their hot
aisle/cold aisle layout does not function the way it should. They’re finding hot spots where they did not address
them before.”
Similarly, in the case of private cloud deployment, the typical IT manager needs to add more power and cooling
capacity to the data center infrastructure to handle the higher density of the cloud environment.
Companies often fail to take into account something as simple as the heavier weight of condensed racks that are
used for cloud. “The floor may not have been designed to carry that much weight,” says Wilson. “Many people
forget to think about that.” Often, this situation can be remedied with the right configuration of pedestals, stringers
and floor tiles. But it is important to recognize the need for remediation before a problem develops.
Something as simple as the grade of casters used on cabinets can be an issue for cloud providers, who often
need to move equipment around. “Cloud providers exist in a volatile environment. Things are coming on and
off the floor all the time. They need to have the ability to more easily move their infrastructure,” says Wilson.
Modular data center infrastructure can help cloud providers respond with agility as their needs change. Preconfigured infrastructures help reduce deployment times and mitigate the risk of adopting new technologies like
integrated stacks of network, computing equipment and storage.
It can be helpful to seek advice from a consulting services partner to assess whether your data center
infrastructure can handle the demands of cloud and identify what needs to be done to shore it up.
Panduit provides comprehensive, intelligent cloud solutions that support hosting providers’ requirements
in building strategic data centers. Panduit data center solutions enable physical to logical integration and
deliver robust, scalable physical infrastructures that:
n Optimize space utilization to increase revenue per square foot.
n Speed physical infrastructure deployments for faster customer start-ups and revenue generation.
n Reduce capital requirements for building, configuring and maintaining the physical infrastructure.
n Run data centers more efficiently to reduce operational costs.
n Position organizations to focus their expertise and skills on growing the business.
Panduit Cloud-Enabled Data Center Offering for Service Providers
Panduit cloud-enabled data center solutions can significantly increase revenue and profitability per square
foot by optimizing space utilization and reducing implementation times. Cloud service providers that use an
optimized infrastructure, including cabinets and cabling from Panduit, can achieve a 15% increase in usable
rack unit (RU) space, which can result in $100,000 per month or $1,000,000 per year in increased revenues.4
Panduit provides a comprehensive, intelligent cloud solution that responds to the hosting provider’s top
white paper
CLOUD-ENABLED DATA CENTER INFRASTRUCTURE
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needs in building a cloud-enabled data center. They also speed physical infrastructure deployments for faster
customer start-ups and revenue generation. In addition, they reduce capital requirements for building, configuring and maintaining the physical infrastructure.
The key pillars of the Panduit cloud-enabled data center offering are:
n Energy-Efficient Cabinets. Net-Access™ Cabinets provide a cost-effective cabinet platform for server,
network and preconfigured applications.
n Preconfigured Physical Infrastructures. More data centers are adopting modular designs to meet
the demands of implementing cloud architectures. Panduit preconfigured infrastructures help reduce
deployment times and mitigate risk.
n Copper and Fiber Cabling Systems. An integrated approach to deploying and managing the network
infrastructure is critical for cloud-based deployments. Panduit copper and fiber capabilities connect server,
storage and network devices with superior performance and scalability to minimize risk.
n Intelligent Software, Hardware and Services. Panduit SmartZone™ Solutions deliver comprehensive
energy and physical infrastructure efficiency in data centers, building facilities and remote enterprise sites
through intelligent software, hardware and services. Panduit SmartZone™ Solutions provide a holistic view of
asset, connectivity, energy and environmental parameters in the data center and extended enterprise. This
visibility can help to maximize capacity and provisioning times, lead to faster mean time to repair (MTTR), and
help improve overall operational and energy efficiencies to achieve rapid and significant cost reductions.
n Physical Infrastructure Foundation. Critical to the deployment of the Panduit Intelligent Data Center
Solution is the physical infrastructure foundation in the data center. This includes an integrated approach
to elements such as pathways, zone cabling, bonding and grounding, and identification and labeling.
For more information
on the Panduit Cloud
Migration, please visit
www.panduit.com/
cloud
The Panduit cloud-enabled data center is designed to maximize revenue per square foot and improve
profitability by reducing operational costs while maintaining high levels of availability.
Cloud Migration Requires a Strong Foundation
Migrating to cloud is often the best answer for data center and IT managers who need to stretch their resources
and simplify maintenance while continuing to provide data reliability and accessibility to the enterprise.
According to an IDG Research Services survey of more than 100 IT executives, more than one-third (39%) of
the respondents are currently utilizing cloud, while 48% are in evaluation/consideration/planning mode. Nearly
one-quarter (24%) are currently using cloud on an enterprise basis.
1
www.forbes.com/sites/
louiscolumbus/2013/02/19/
gartner-predicts-infrastructureservices-will-accelerate-cloudcomputing-growth
2
www.forbes.com/sites/
louiscolumbus/2013/02/19/
gartner-predicts-infrastructureservices-will-accelerate-cloudcomputing-growth
According to the survey, those who make infrastructure design a top priority when deploying cloud are more likely
than others to report success with maximizing cloud benefits. Lesson learned: It is important to take the time to
design a centrally managed and integrated logical and physical infrastructure that will support your migration.
The earlier you consider and plan for strong infrastructure, the faster you will see a return on your cloud investment. More than half of the executives surveyed (59%) say they rely on or will rely on outside help for design and/
or implementation when deploying to a private/hybrid cloud. Just over one-third (34%) rely on their technology
provider while one-quarter outsource design, procurement and/or implementation to a systems integrator.
3
www.cio.com/article/744484/
1_in_4_Cloud_Providers_Will_
Be_Gone_By_2015
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Other benefits of Panduit
cloud infrastructure offerings:
Innovative leveling feet design
reduces cabinet installation
time by 80%. For example,
to install 100 cabinets, other
providers typically require one
day to one-and-a-half days
compared to less than two
hours with Panduit equipment.
Migrating your data center to cloud can be very beneficial in terms of reduced cost and complexity. But beware
of a common pitfall: believing that cloud will allow you to sidestep physical infrastructure considerations. Many
companies are not receiving the benefits they expected to see from a cloud migration for the simple reason that
they did not pay enough attention to physical infrastructure design. Focusing on physical infrastructure design
will pay dividends before, during and after your data center migration.
Panduit understands how to be a trusted partner in the physical infrastructure design of your data center and
will help you create a solid foundation for your cloud migration. n