OpenPKG Advent Calendar 2006

...every day a little pondering, backstage information, jokes, tips and tricks.
6
Wednesday 2006-12-06: Little Pondering
Cost Reduction II: Issue of Under-Utilized Servers

"Understanding a problem is knowing why it is hard to solve it, and why the most straight forward approaches won't work."
— Karl Popper
In our little pondering behind Door 5 we discovered that the potential reduction of the number of servers can provide an important cost saving. Many people at this point easily throw in the argument that this is not true in practice as from server hardware, power consumption, cooling and rack space rent the server hardware is the obviously most expensive and even after a server consolidation one usually still has the hardware flying around and hence no costs are effectively saved.

Power-Off To The Rescue

That's not true as you already can easily safe lots of costs by just powering off the no longer necessary hardware. You don't believe it? Well, let's do a short "back of the envelope" calculation: The costs for "business electricity" (at least in Germany) is at about 0.13 EUR/KWh (net), a typical datacenter server like a Sun Fire V210 or V240 consumes according to Sun's power calculator about 350W system power.

This means just the box' power consumption already costs you 414 EUR/year. Compared to the buying price of about EUR 3000 and the typical (German) tax amortization time of 3 years, this means the yearly power consumption is already at 50% of the hardware cost (proportionate for the year as business customers have to calculate it).

Leverage From OpenPKG

And if you also calculate the cost for cooling and rack space rent you would be even more surprised how expensive even a datacenter hosted server really is. Hence, so much you use OpenPKG's "multiple-instance" feature to consolidate servers the better will be your total cost savings.