China's Data Center Challenges

The good news is that China has a competent laborcompanies struggle to build new data centers or
pool from which to draw the necessary skills to buildextend existing ones."
and support data center operation. The bad news isAlthough virtualization is reducing the number of new
that China's data center managers face the sameservers being purchased, the compact design of
problems as their counterparts in developed countriesblade servers means that cooling and ventilation will
like the US and Europe.become significant factors in data center design and
While salaries, which comprise a significant portion ofoperation.
IT budgets, remain low relative to those in the US,"Companies need to look at advances in dynamic
Europe, Japan or Australia, other costs are not toosmart cooling technologies to cooling-over-provisioning
far off.and higher operational cost issues," adds Yi.
"Mature industries like banking are heavily dependentMei recommends sticking to standards when selecting
on technology to thrive. In these markets, datathe core components of a data center. "It is a
centers are built based on similar standards as thosemistake to assume that buying cheaper cables and
in more market markets like the US and Europe," saidconnectors will save you money. On the contrary,
Jerry Yi, Senior Solutions Consultant, Chinasuch a practice often leads to higher costs as
Hewlett-Packard.companies eventually realize that they sacrifice
One significant advantage that China has overreliability and scalability to save a few dollars. There
markets like Singapore and Hong Kong is the limitedare hard dollars lost when a data center goes down
amount of legacy infrastructure in place. Chinesebecause of faulty cabling," argues Mei.
businesses that are expanding to meet domestic andAnother challenge facing IT managers is the issue of
international business opportunities can takebudgets. China's economy is booming and businesses
advantage of new technology and not be held downare expanding. But IT budgets are not keeping up
by legacy applications and business processes.with the growth beyond the technology. To add
China's economic boom is significantly impacting thepressure to the kettle, focus has remained on the
way data centers are designed, built and operated.cost of acquisition rather than the total cost of
BUt many of these centers are still located in majorownership. Unfortunately, initial purchase price is
business cities like Beijing, Shanghai and Guangzhou. Inclearly visible to finance and senior management.
these locations, real estate costs are rapidly rising andTwo other costs often ignored in the planning stages
data center managers need to carefully plan forare operational costs and implementation costs. The
space if they are to ensure effective use of primeformer includes system management, power and
resources.cooling, and the impact of system failure. These
Richard Y. Mei, Technical Manager, Systemscosts are difficult to quantify in detail. The latter
Engineering at Commscope, notes that China's datacarries a variability clause meaning additional costs will
center designers and managers can leverage bestbe incurred subject to delays that are cannot be
practices learned in structured cabling, cooling/heatingaccurately predicted.
ventilation and lighting to enhance operationalTroy Syn, Managing principal APJ TSG Presales
efficiency.SWAT, Technology Solutions Group at HP notes that
"The inhibitor towards successful data center designgiven today’s constrained IT budgets, there is a
is not price but growth. Companies need to carefullyreluctance to invest capital on IT. "This has lead to a
plan for growth. Otherwise they will discover that the"Band Aid" approach to IT investment. However this
data center facility they built today will not able toapproach has also lead to a (slowly) increasing run
meet business demands in a year's time," he said.rate of IT costs. Given that IT is now a critical
Raju Chellam, Asia-Pacific Vice President for AMIcomponent of a company's operations, perhaps the
Partners, an international research firm, agrees. "Thebiggest misconception that needs to be changed is
biggest and most common mistake among datathat investments in IT need to be made for long
center designers in Asia is poor planning. Lack ofterm transformations," adds Syn.
proper foresight and failure to pay attention to theIndeed, good planning, attention to detail and
potential of business growth is resulting in some dataforesight are attributes that come with some of the
centers reaching capacity within a matter of 18best built data centers in the world. Listening to the
months. This is a waste of company resource and willexperience of others will pay dividends very quickly.
definitely result in lost business opportunities as