IT Energy Costs: The Quiet Budget Killer

Most IT organizations estimate their standard infrastructure expenses based on servers, telecommunications and desktops. Few consider the cost of the electricity required to power and cool the equipment. With today’s rising energy prices, companies can no longer ignore the cost of power. In some markets, the electricity bill for a server facility can run four to six times the cost of renting the building space.

The ratio of power costs to hardware costs can be staggering. According to BusinessWeek , when Paul Otellini joined Google ’s board, he learned that electricity for its “white box” servers cost Google more than the servers themselves. (White box is a computer reseller term for a device made by a lesser-known manufacturer on behalf of a major manufacturer, which then imprints its logo on the outside.) Even with a typical branded server, the cost of electricity can be 20% of the total expense of the rack over its life. This can rise to 25% or 30% in configurations with poor power utilization.

Computer World