Understand the TCO
Understanding the TCO of IT assets, including purchase price, cost of power consumption, cooling, maintenance and management, is paramount if businesses wish to maximise the efficiency and effectiveness of their technology as well as their budget. If any potential residual value of the devices is included in this analysis, an organisation will have a clear view of the current environment and be able to make decisions about whether assets should be retired, replaced or kept – and for how much longer.
For example, the analysis may identify a server that is still being used but is not performing at its peak or has a high level of power consumption because of its age. The business may consider that it would be prudent to replace it - trading it in if there is a residual value - for a newer, more energy efficient version before the end of its lifecycle.
To see a real example of this with HP servers, click on the 'Scenario' tabs. It demonstrates two options available when considering the replacement of legacy HP PA-RISC servers.
Naturally, which path an organisation takes to secure a successful migration depends on their unique situation, their objectives and their financing and purchasing policies.
| Installed System | Replacement System | |
| Model | N-Class / rp7400 | rx7640 *** |
| CPU architecture | PA-8700 @ 750Mhz | Itanium 2 @ 1.6Ghz |
| CPU cores | 8 | 8 |
| Power (W) | 3,000 | 1,596 |
| BTU/hr | 10,230 | 5,448.75 |
| EIA Rack units | 10 | 10 |
| Trade-in value | £8,400 | |
| RRP Price * | NA | £84,705 |
| Support ** | £51,695 | £41,306 |
| Cost of ownership | £2,628 | £1,393 |
| CO2 tonnes per annum | 13.8 | 7.27 |
In this scenario, a legacy PA-RISC server is replaced by its successor, a midrange Integrity server. By taking this route, an organisation acquires a server with the same quantity of CPUs but with a modern design. This immediately provides a 300% increase in performance whilst at the same time nearly halving the amount of CO2 emissions and cost of ownership. This clearly demonstrates that replacing old servers with newer, more efficient technology can have a significant impact on costs and energy usage.
Notes:
* RRP prices given; no manufacturer discount applied
** 3 years’ support 24x7 service plus field installation
*** rx7640 assumes 32 Gig memory; 2 x 73 Gig hard disk; Foundation HP-UX OS
Cost of ownership figures based on a server being run in a server enviroment and is calculated on averages, such as cost of electricity, server room requirement (cooling/UPS etc.) Do not include real estate or manpower costs
CO2 figures are based upon tonnes per annum. The average family car creates 4 tonnes CO2 per annum.
Scenario 1 demonstrates a performance increase of 300% with same amount of CPU
Scenario 2 demonstrates like for like performance
| Installed System | Replacement System | |
| Model | N-Class / rp7400 | rx2660 **** |
| CPU architecture | PA-8700 @ 750Mhz | Itanium 2 @ 1.6Ghz |
| CPU cores | 8 | 2 |
|
Power (W) |
3,000 | 798 |
| BTU/hr | 10,230 | 2,724 |
| EIA Rack units | 10 | 2 |
| Trade-in value | ||
| RRP Price * | N/A | £10,000 |
| Support ** | £51,695 | £4,000 |
| Cost of ownership | £2,628 | £697 |
| CO2 tonnes per annum | 13.8 | 3.7 |
This example demonstrates that by replacing older servers for newer, smaller models – even where there isn’t any trade-in value – there are major advantages for the longer term. An organisation will not only benefit from like-for-like performance from a smaller server format which uses 80% less rack space, but they will also gain significantly in terms of support costs (over 90% saving), less power usage (73% less) and reduced CO2 emissions.
Notes:
* RRP prices given; no manufacturer discount applied
** 3 years’ support 24x7 service plus field installation
**** rx2660 assumes 8 Gig memory; 2 x 73 Gig hard disk; Foundation HP-UX OS
Cost of ownership figures based on a server being run in a server enviroment and is calculated on averages, such as cost of electricity, server room requirement (cooling/UPS etc.) Do not include real estate or manpower costs
CO2 figures are based upon tonnes per annum. The average family car creates 4 tonnes CO2 per annum.
Scenario 1 demonstrates a performance increase of 300% with same amount of CPU
Scenario 2 demonstrates like for like performance
