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Method and System for Total Cost of Ownership (TCO) for Data Center Equipment

IP.com Disclosure Number: IPCOM000199343D
Publication Date: 2010-Aug-30
Document File: 3 page(s) / 58K

Publishing Venue

The IP.com Prior Art Database

Abstract

A method and system is disclosed for determining Total Cost of Ownership (TCO) for data center equipment based on capital cost and operational cost associated with the data center equipment.

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Method and System for Total Cost of Ownership (TCO) for Data Center Equipment

Disclosed is a method and system for determining Total Cost of Ownership (TCO) for data center equipment. The TCO is determined based on capital cost and operational cost associated with the data center equipment. Both the capital cost and the operational cost depend on various factors associated with the data center equipment. These factors may be, one or more of, but are not limited to, data center configuration, location, enterprise application, infrastructure growth rates, energy saving targets, and cost of money (Hurdle rate).

The figure illustrates the method and system for determining TCO for a data center equipment.

Figure

In order to determine TCO, data center configuration and enterprise specific data are determined. The data center configuration may include, one or more of, but is not limited to, size, shape, number of racks, rack density, data center location, resiliency rating, and energy saving targets. Additionally, the enterprise specific data includes projected applications, IT growth rate, and cost of money (Hurdle rate).

In addition to the data center configuration and the enterprise specific data, the method and system disclosed herein also uses data center equipment specific capital expense

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data and location specific operational and maintenance data to determine the TCO. The capital expense data includes, but is not limited to: cost based on name plate data, load of the data center equipment, location and supplier of the data center equipment, availability of the data center equipment base, installation cost based on the location, configuration and density of the data center equipment, and discounts based on the location. Further, the location specific operational data includes, but is not limited to, cost of energy at the location, maintenance cost, service cost and equipment replacement, energy escalation cost over time, and operation escalation rate over time.

The capital expense cost and the operational cost data may be maintained for common geographic locations as a reference. This data may also be customized accordingly if the geographic location or customer specific requirements for the data center equipment are changed or in case of a special customer contractual agreement with the equipment supplier.

In an embodiment, the data center equipment specific capital expense data is modeled along with the configuration of the data center equipment and the enterprise specific data to determine a combined capital expense (CapEx). CapEx may be determined as follows:

CapEx = ƒ((nu...