Intel Consolidates Data Centers to Reduce Costs

(WEB HOST INDUSTRY REVIEW) -- Leading chip manufacturer Intel (www.intel.com) is undergoing a four-year refresh cycle for servers to consolidate its data centers, which stands to save the company close to $250 million in operating costs over eight years, said Intel CTO Diane Bryant on Tuesday.

So far, the company has widdled its 147 data centers down to around 70, said Bryant. From 2007 to 2015, the company hopes to save $250 million in costs related to data centers, including cooling, system maintenance and support.

Launched in 2007, the four-year refresh cycle for servers implements faster chips, consolidates servers and stores more applications in virtualized environments.

The strategy has already paid off, helping the company save $45 million in 2008 alone.

The company has replaced 10 single-core Xeon chips with a single Nehalem-based quad-core Xeon chip, which has helped it to reduce hardware in its facilities while boosting the total server performance.

Intel has also managed to decrease hardware acquisition costs and any associated overhead costs, such as energy and maintenance, per server. For example, the company has installed more energy-efficient servers to reduce power costs.

Other ways the company is working towards improving its energy efficiency in data centers are participating in US government agencies like the US Environmental Protection Agency, using technologies to optimize server performance by maintaining high utilization rates, and moving applications from dedicated hardware to virtualized environments.

The company is also testing out different tactics to cut its energy costs, such as experimenting with a data center that uses minimal air conditioning, and working with universities and companies like HP and IBM to find the best methods of cooling data centers.

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