DEMAND SIDE SUPPLY SIDE MULTI-TENANT

Source: Corporate Strategy Group

1k Server DC 100k Server DC

$TC

O/S

erv

er

Server Hardware Facility

Hardware Operations (Labor) Power

IMPACT OF SCALE ON SERVER TCO

DATA CENTER CONSTRUCTION PROJECTS (LAST 12 MO.)

Source: Company press releases,

Company Location DC Cost

($M)

DC Size

(sq. ft.)

# Servers

(est.)

NSA (July ‘09) Camp Williams, UT $2,000 1,000,000 200K+

Apple (May ‘09) Maiden, NC $1,000 500,000 100K-150K

Facebook (Feb ‘10) Princeville, OR $215 - 25K-30K

Internet Villages (July ‘09) Annandale, Scotland $1,600 3,000,000 200K+

Lockerbie Data Centers

(Dec ‘09) Lockerbie, Scotland $1,500 - 180K-200K

Next Generation Data

(Mar ‘10) Wales, UK $301 750,000 40K-50K

I/O Data Centers (Jun ‘09) Phoenix, AZ - 538,000 80K-100K

Source: MS IT RightSizing

0%

25%

50%

75%

100%

CP

U U

tili

zati

on

Rate

Time

12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM

Japan Great Britain

BING SEARCHES – JAPAN VS. UK

Source: Microsoft

• turbotax.com • taxcut.com

• hrblock.com • taxact.com

Source: Alexa

~4x normal load (Holiday shopping)

~10x normal load (Tax season)

• target.com • walmart.com

• toysrus.com • barnesandnoble.com

Source: Alexa

Instance

Admins

Resources

Instance

Admins

Resources

Instance

Admins

Resources

SINGLE-TENANT APPLICATION

Instance

Admins

Resources

Instance

Admins

Resources

Instance

Admins

Resources

MULTI-TENANT APPLICATION

$0

$2,000

$4,000

$6,000

$8,000

100 1,000 10,000 100,000

$TC

O/1

0% s

erve

r w

ork

load

# of Servers in Datacenter

$0

$2,000

$4,000

$6,000

$8,000

100 1,000 10,000 100,000

$TC

O/1

0% s

erve

r w

ork

load

# of Servers in Datacenter

Private Cloud

Public Cloud

Public cloud

pricing

SMB: >25x public

cloud benefit

Enterprise: ~10x

public cloud benefit