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HP Saves $1Billion, Data Center Count now at 6|
- By Manu Sharma, Jun 05, 2009 1402 hrs IST
- Tags : Hewlett Packard, Data Centers, Manu Sharma, green initiative, reduce costs, environmental impact, CXOtoday, Faisal Paul, virtualisation, IDC, CO2
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As part of the green initiative and IT transformation program, Hewlett Packard (HP) has completed consolidation of 85 internal IT data centers into just six locations thus reducing costs, eliminate older technologies and improve service levels, while also decreasing the environmental impact of its facilities.
It recently shut down all the existing data centers spread across Singapore, Korea, China, Australia, Japan, New Zealand and India, resulting in saving worth $ 1 billion annually.
Talking to CXOtoday, Faisal Paul, head ESS Marketing & Growth Initiatives, HP India said, "HP's IT transformation was not just a technology initiative within the IT organization, it was a business strategy adopted throughout the company. This is a good example for IT companies to reduce its IT operating costs and establish a more simplified and dependable IT infrastructure that provides improved business continuity and future growth."
Starting in fiscal year 2009, the transformation will lower IT costs by more than $1 billion per year from fiscal year 2005 levels. This cost reduction is even more impressive considering HP added more than $25 billion in revenues during the three years since the transformation began.
By doing so HP has achieved a 60% reduction in annual energy use through thermal mapping, virtualisation, technology refresh. Besides 80% more processing power with 80% fewer servers and also reduced the data storage costs while doubling the capacity.
According to IDC, by 2020 energy used in buildings housing data centers will outplace growth of other commercial buildings. It is predicted that data centers will grow 600% and will be a huge CO2 factories.
In India, HP had its data centers in Bangalore and Gurgaon. The data centers essentially were used for applications, migration, mailboxes of its employees and also data storage. However, it continues to have its data center in Whitefield near Bangalore for its customers.
HP has a total employee strength of about 320,000 plus another 145,000 from the new acquisition EDS. In India, HP employees amount to 30,000 and another 22,000 from EDS.
"The present consolidated data centers collectively occupy about 32,000 square meters in Atlanta, Austin and Houston. This is approximately 35% less space than previously. The new data centers are expandable to more than double their existing area, enabling us to accommodate future growth without building new centers," said Paul. "We also consolidated computer rooms at our R&D campus in Cupertino, California, into a single large data center that will reduce GHG emissions by 3,900 tonnes of CO2 each year."
HP re-sells or recycles unwanted assets recovered during data center consolidation. Between 2005 and 2008, the company has recovered more than 44,500 units of IT equipments. Nearly 70%t of those were wiped clean of sensitive data, refurbished and resold. The remaining units were recycled and by reclaiming such a large percentage of equipment for reuse, HP saved more than $1.75 million in the process, said Paul.
Related Links: HP Extends Lead in Declining Global PC Market
HP Enhances Software for Data Center Management
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