ROI CASE STUDY MAY 2015 Logicalis Achieves 159% ROI* with CA DCIM Solution
2 ROI CASE STUDY: LOGICALIS MAY 2015 Logicalis increases efficiency and maximizes availability with CA DCIM UK service provider Logicalis is able to bring competitive pricing structures to the marketplace through leveraging the CA DCIM solution to help reduce power costs and other service delivery overheads. Logicalis has increased efficiency, maximized availability and reduced power utilization for its managed services offerings and as a result can go to market with more competitive offerings which helps it win business. This ROI case study describes the uptime, efficiency, and top-line revenue benefits Logicalis is achieving in its data centre en route to its 159% ROI and 11-month payback on CA DCIM*. 159% CUSTOMER PROFILE Industry: IT Company: Logicalis Employees: 3,700 Group Revenue: $1.5 billion ROI and 11-month payback on CA DCIM*. Study conducted by: Customer Value Analysis Program by CA Technologies Logicalis *The information and results illustrated here are based upon the customer s experiences with the referenced software product in a variety of environments, which may include production and nonproduction environments. Past performance of the software products in such environments is not necessarily indicative of the future performance of such software products in identical, similar or different environments. CA does not warrant that the software products will operate as specifically set forth in this publication. CA will support the referenced products only in accordance with (i) the documentation and specifications provided with the referenced product, and (ii) CA s then-current maintenance and support policy for the referenced products.
3 ROI CASE STUDY: LOGICALIS MAY 2015 Customer introduction Logicalis transforming IT for tomorrow s organizations Logicalis is an international enterprise service provider of integrated IT solutions and services. It designs, specifies, deploys and manages complex IT infrastructures for more than 6,000 corporate and public sector customers. The group s expertise spans a range of sectors and IT solutions, including collaboration, cloud computing, data centre hosting, managed services and business analytics. Logicalis has more than 20 years of experience implementing IT solutions that help clients achieve maximum value from their technology investments. It is committed to helping customers transform their operations by leveraging integrated multi-vendor technology stacks, adopting an always-on services model and eliminating IT silos. The group has operations in the UK, US, Germany, South America and Asia Pacific and approximately 3,700 staff. Challenge Avoid power interruptions Provide for IT service availability Drive efficiency and optimize costs Minimize staff time spent collecting data and creating reports manually Collect granular energy, environmental, and service data from a complex, dynamic environment Deliver a more cost competitive service through energy efficiency Solution The CA DCIM solution helps Logicalis Capture power consumption metrics from hundreds of devices Identify possible faults with IT and facilities assets Detect changes in power and temperature Minimize power and thermal hotspots and energy overhead Report to customers on their power consumption levels Benefits The CA DCIM solution helps Logicalis Increase efficiency and availability Offer more compelling services to customers Drive down operational costs Innovate to help customers achieve goals Achieve 159% ROI and 11 month payback 1.43 PUE 93% savings in time to produce quarterly reports and manage PUE 5% energy savings due to visibility and ability to continuously optimize 5% revenue where energy management was key competitive differentiator 1
4 ROI CASE STUDY: LOGICALIS MAY 2015 We need to be able to detect anomalies that might result in power interruptions. Chris Gabriel, CTO, Logicalis UK Section 1: Challenge Understanding service delivery costs for power Logicalis has an extensive managed service operations group, which encompasses networking, server infrastructures, storage, unified communications and business applications, including software-as-aservice (SaaS.) The company offers both on and off premise services and has three managed service centres in the UK as well as Tier III+ data centre facilities. To help provide that its managed services remain profitable yet affordable, Logicalis must be able to understand its cost base, in particular when it comes to power consumption. Logicalis UK Data Centre by the numbers Tier III+ 800+ devices 10,000 square feet 3,500+ data points 400 racks, 2 s 3 chillers and 24 CRAHs Chris Gabriel, Chief Technology Officer for Logicalis UK, comments, Power is a major factor in the services that we provide. We therefore need holistic and real-time visibility of not only consumption but also costs, capacity and other important energy efficiency metrics. Figure 1. A rack device hardware inventory is generated automatically as part of the discovery process; the display includes hyperlinks to device management interfaces, which save time when investigating problems
5 ROI CASE STUDY: LOGICALIS MAY 2015 Understanding power consumption in the data centre is fundamental and also highly complex. The company s primary facility in Slough, England is designed for 400 racks containing a minimum of two power distribution units (s). There are also uninterruptable power supply (UPS) systems, network switches, meters and environmental control devices, bringing the total data points to more than 3,500. Collecting periodic data from all of these devices for calculating PUE and reporting was a time consuming task, and did not give the Logicalis team the real-time visibility necessary to identify anomalies in energy use that represent wasted expenditure. Heat can have a significant impact on system availability, so we need to be able to address hot spots before they become a risk to service continuity. Chris Gabriel, CTO, Logicalis UK Figure 2. Traditional Energy Management in a Data Centre 100 s or 1,000 s of data points to collect manually IT OPERATIONS AND FACILITIES STAFF CA Technologies DCIM approach Centrally monitor equipment in one or many data centres IT OPERATIONS AND FACILITIES STAFF CA ecosoftware BMS Chiller UPS BMS BMS Chiller UPS Chiller UPS Utility Meter Generator CRAC Load: Servers Storage Mainframe Utility Meter Generator CRAC DC Power System BMS Load: Servers Storage Mainframe Utility Meter Generator CRAC DC Power System BMS Load: Servers Storage Mainframe DC Power System Chiller Utility Meter Generator UPS CRAC Load: Servers Storage Mainframe Chiller Utility Meter Generator UPS CRAC Load: Servers Storage Mainframe DC Power System DC Power System Data flows Energy flows People Maintaining service continuity in the cloud Visibility of power consumption is also key for maintaining IT service availability whether it involves a hosted infrastructure or a private cloud environment. As Gabriel explains, We need to be able to detect anomalies that might result in power interruptions even just a few seconds of downtime could result in severe service disruption for our customers.
6 ROI CASE STUDY: LOGICALIS MAY 2015 Logicalis has invested in enterprise-grade cloud platforms, which are based on technologies from Cisco, NetApp, IBM and CA Technologies. To ensure its offerings can compete with other suppliers white box solutions, the company needs to run a highly efficient operation. Some cloud platforms are being run on the cheapest hardware that suppliers can find, comments Gabriel. At Logicalis, we have chosen to run our cloud environments on best-of-breed enterprise-grade technology. To keep costs to the customer as low as possible, we therefore need to drive efficiency and optimize costs through automation and proactive power management. With power management becoming such a critical factor in both the delivery of managed and cloud services, Logicalis needed to transform its manual approach to capturing consumption data. We needed a power management solution that would integrate with our existing operational systems and provide rapid and easy access to metrics 24/7, comments Gabriel. As well as providing power consumption data, we needed a solution that could detect trends and identify performance issues. Logicalis recognizes that by offering their customers energy efficiency, sustainability data, cost transparency, and power reliability, they have the opportunity to differentiate their managed services offerings in the marketplace. Figure 3. The cooling dashboard displays a real-time performance overview; the dashboards are simple to set up with a large selection of gauges and charts available out-of-the-box
7 ROI CASE STUDY: LOGICALIS MAY 2015 Section 2: Solution CA DCIM solution Figure 4. Benefits diagram for Logicalis Be more competitive as a Managed Service Provider Monitor Power Save Energy Detect Hotspots Customer Billing and Transparency Reduced Staff Time Detect Faults Avoid Disruptions Proactive and intelligent power management Logicalis was already using a number of CA Technologies solutions to support its network managed service and found them easy to use, reliable and cost-effective. Logicalis chose the CA DCIM solution because of its proven ability to provide a bridge between facilities infrastructure assets and IT devices. With CA DCIM, Logicalis is able to visualize, monitor, and better manage the use of power, cooling, and IT capacity in the data centre. The solution also solved the problem of the time consuming task of collecting data for management and reporting.
8 ROI CASE STUDY: LOGICALIS MAY 2015 As shown in Figure 3, CA DCIM gathers data from facilities and IT devices via SNMP, Modbus, and BACnet protocols without requiring any additional hardware. CA DCIM has also been integrated with existing Building Management Systems (BMS) so that advanced analytics and reporting capabilities can complement existing BMS functions. The solution performs advanced calculations with results stored as time series data. CA DCIM provides that data to administrators as well as to other IT and Facilities management solutions, including capacity management, performance management, infrastructure management, cooling systems, virtualization management, and the service desk. Figure 5. CA DCIM Schematic representation of the architecture of the CA DCIM solution. Data flows Energy flows Connects to each device via: SNMP, BACnet, Modbus and more. Views, Reports, Alerts Database Data Collector Calculation Engine Administrators Capacity Mgmt Performance Mgmt Infrastructure Mgmt Virtualization Mgmt Service Desk CMDB Cooling Data Center BMS Chiller UPS Utility Meter Generator CRAC Load: Servers Storage Mainframe DC Power System We implemented CA DCIM in a rapid timeframe.ca Technologies was able to help us quickly capture valuable power consumption metrics from our data centre devices, explains Gabriel. The CA DCIM solution plays a critical role in the daily operations of Logicalis data centres and cloud environments and helps staff to: Identify possible faults with devices Detect changes in power and temperature changes Minimize power hotspots and overheads Report to customers on their power consumption levels The data is polled, calculated, gathered, and stored both live and historical. This provides a baseline by which Logicalis is able to measure the results of changes. For example, Logicalis is abe to track, UPS, CRAH, and generator utilization, status, and more. They are also able to monitor panel and breaker utilization to identify overused and underused circuits.
9 ROI CASE STUDY: LOGICALIS MAY 2015 CA DCIM not only provides us with a huge amount of information about our current operations, but also enables us to trend how power consumption and environmental conditions such as heat, will change in the future, comments Gabriel. For example, heat can have a significant impact on system availability, so we need to be able to address hotspots before they become a risk to service continuity. The CA DCIM solution has been integrated with Cisco EnergyWise and Cisco UCS, which allows Logicalis to utilize this standard architecture to deliver power management for Cisco devices more efficiently and to support the automated provisioning of IT infrastructure using data from CA DCIM. Figure 6. Fusion charts display a high-level overview on data centre performance over the previous seven days; this allows Logicalis to promptly identify efficiency issues and control running costs The CA DCIM network console interfaces with network-based monitoring and control units which gives Logicalis the ability to manage the health and efficiency of each Computer Room Air Handler (CRAH) unit, as well as monitor performance at the chiller level. Logicalis plans to expand this integration to its automation systems, so that when a power anomaly is detected, it will be able to transfer services to unaffected hardware while the problem is being investigated and resolved. Logicalis also brings the holistic wrap of reliability and automation to its cloud services with deployment of the CA Automation Suite for Clouds. In addition, Logicalis uses CA Spectrum and CA ehealth as part of its cloud operation to help maintain consistent service levels through 24&7 infrastructure monitoring and automated alerts. CA Technologies solutions have helped us break down the traditional silo approach to IT management, comments Gabriel. We now have a holistic view across our data centre and cloud infrastructures enabling us to take a more homogeneous approach to service delivery and make better use of our resources. With CA DCIM, we have improved monitoring and management of the systems in our data centre operations and are now making more effective use of power, space and cooling capacity. Scott Millmaker, Data Centre Operations Team Leader, Logicalis UK
10 ROI CASE STUDY: LOGICALIS MAY 2015 Section 3: Benefits What ROI was achieved? Logicalis engaged with the Customer Value Analysis Team at CA Technologies to conduct a postimplementation ROI analysis. To collect the data and identify the financial results, Logicalis formed a team consisting of people from data centre design, data centre operations and the business. They collected data on energy consumption, faults detected and fixed, labor time and costs, and business benefits. To complete the data collection process, the Logicalis and CA Technologies team put together a full picture of the costs to Logicalis, including investment in software, hardware, training and internal support costs. Documented savings The Logicalis team documented financial savings in energy consumption and staff time as well as top-line revenue generation due to competitive differentiation, as shown in the Documented Benefits Table. Gabriel noted that By design, our PUE was already as low as it can get this is a brand new data centre. However, by monitoring, we have been able to keep on top of faults affecting efficiency very quickly. For example it picked up a chiller that was not free cooling as efficiently as another which turned out to be a fault with a valve.
11 ROI CASE STUDY: LOGICALIS MAY 2015 By design, our PUE was already as low as it can get this is a brand new data centre. However, by monitoring, we have been able to keep on top of faults affecting efficiency very quickly. For example it picked up a chiller that was not free cooling as efficiently as another which turned out to be a fault with a valve. Chris Gabriel, CTO, Logicalis UK Documented benefits Benefits Energy Use Results 70% by IT devices 22% for Cooling 5% for s, lighting, facilities 3% lost during T&D 1.43 PUE 0% Downtime caused by infrastructure problems 93% Savings in time to produce quarterly reports and manage PUE 5% Energy savings due to visibility and ability to continuously improve 5% Revenue where energy management was key competitive differentiator 1 The documented PUE of the Slough facility is 1.43, much better than The Uptime Institute reported average of 1.8 2. The Logicalis team is able to detect further anomalies that, if they had not been detected through CA DCIM, would have resulted in increased energy use in all areas cooling, IT, and facilities infrastructure. The value of this energy savings is 5% to Logicalis. The ability to automate the capture of power consumption data from multiple data centre devices now allows Logicalis staff to spend less time manually reading meters every few hours, and more time focusing on strategic activities. The Logicalis team documented a 93% reduction in time spent collecting data and producing quarterly reports, including PUE calculations. Logicalis also placed a value on the top line revenue achieved due to the ability to differentiate their managed services offerings in the marketplace and help customers with innovative solutions to achieve energy and sustainability goals. Logicalis identified the need to avoid downtime due to infrastructure problems as a key driver for implementing an operational energy management solution. However, as a new data centre, they were already achieving 0% downtime and decided not to attach additional financial value to this benefit for this study.
12 ROI CASE STUDY: LOGICALIS MAY 2015 Financial results The results of the financial analysis show that Logicalis achieved a 159% ROI over the three-year term on their investment in the CA Technologies DCIM solution. This represents a payback period of 11 months, which includes a 6-month ramp-up period before benefits were accrued. The internal rate of return is 156%. The analysis takes into account expenses, assets, amortization, and depreciation. It applies a corporate tax rate to profit before taxes. Please see the appendix for further details on the calculations for the financial results to Logicalis. Financial Metrics Logicalis Results Simple ROI 159% Payback (Ramp-up time included) 11 months 6 months IRR (Internal Rate of Return) 156% We can be more proactive and resolve issues before causing a major outage or incurring high costs. Scott Millmaker, Data Centre Operations Team Leader, Logicalis UK
13 ROI CASE STUDY: LOGICALIS MAY 2015 Section 4: Conclusion The CA Technologies advantage By using the CA DCIM solution as part of its managed service offerings, Logicalis has been able to increase efficiency, availability and overall business agility. Through reducing power costs and other service delivery overheads, Logicalis is able to offer more competitive prices to its customers, which has translated into securing additional business. Logicalis has realized significant financial savings as demonstrated by a 159% ROI and 11-month payback on their CA Technologies investment and is able to pass these savings on to their customers, differentiating them in the marketplace and helping them to out-innovate the competition. CA DCIM has greatly reduced the amount of time spent collecting data and compiling data centre performance reports. Scott Millmaker, Data Centre Operations Team Leader, Logicalis UK Endnotes 1. The value of competitive differentiation is further multiplied by 0.5% to be conservative in determining the amount directly attributable to Logicalis s use of the CA DCIM solution 2. The Uptime Institute, 2012. Uptime Institute 2012 Data Center Industry Survey. http:// uptimeinstitute.com/images/stories/uptime_institute_2012_data_industry_survey.pdf
14 ROI CASE STUDY: LOGICALIS MAY 2015 About CA Technologies Customer Value Analysis The Customer Value Analysis program from CA Technologies is a facilitative approach that helps our customers understand and quantify the business and IT value of CA Technologies software deployments. Our business analysts engage with your resources to develop customer specific Return on Investment (ROI) analyses based on best practices in order to help you your the ability to achieve ROI and business results. The value analyses are created collaboratively with your team and are not considered complete until you agree that the results are accurate and useful. To learn more or to take advantage of a Customer Value Analysis for your organisation, contact your CA Account Manager. Appendix: Calculation details and assumptions a. Simple Return On Investment (ROI) Ratio i. The Return on Investment is a measure of the earning power of a company s assets. ii. ROI = Cummulative Cash Flow x 100% Assets + Expenses b. Payback Period i. The Payback period is the amount of time in months required to recover the initial investment in a project, i.e. until the cumulative net benefit (benefits minus costs) is equal to zero. c. Internal Rate of Return (IRR) i. The internal rate of return is the annual compound interest rate received for an investment consisting of payments (negative values) and income (positive values) that occur at regular periods. ii. IRR is closely related to the net present value. The rate of return calculated by IRR is the interest rate corresponding to a 0 (zero) net present value. d. Assumptions i. Tax rate: 40% ii. Discount rate: 12% e. The analysis takes into account expenses, assets, amortization, and depreciation. It applies the corporate tax rate to profit before taxes. Cash flow is determined as Profit After Taxes less Depreciation & Amortization plus Assets. Costs include investment in software, hardware, training and internal support costs. All analysis is done on a three year term. A 6-month delay in receipt of benefits is assumed. * Please note that this story was originally written in July 2012 and updated in May 2015. Connect with CA Technologies at CA Technologies helps customers succeed in a future where every business from apparel to energy is being rewritten by software. With CA software at the center of their IT strategy, organizations can leverage the technology that changes the way we live from the data center to the mobile device. Our software and solutions help our customers thrive in the new application economy by delivering the means to deploy monitor and secure their applications and infrastructure. To learn more about our customer success programs, visit /customer-success. For more information about CA Technologies go to. Copyright 2012-2015 CA. All rights reserved. All other trademarks, trade names, service marks and logos referenced herein belong to their respective companies. The information and results illustrated are based on the customer s specific use and experience so actual results may vary. This document is for your informational purposes only. 200-134272