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Server Refresh Yields Quarter-Million Dollar Rebate

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Teradata saves over 2 million kWh annually and earns one-year payback with private cloud based on Intel® Xeon® processor 5500 series

“How often do you get to cut costs and do something better?” asks Scott Gnau, chief development officer for Teradata R&D. Gnau led a recent project that consolidated 319 aging servers onto a private cloud based on the Intel® Xeon® processor 5500 series. Gnau says the project saves enough energy to run more than 200 homes—and enough money to pay for itself within one year. The project also helped Teradata earn an energy incentive rebate of USD 250,000 from its local utility company, and enables Gnau’s IT team to better serve its internal customers.

Challenges
•Aging infrastructure. Over 300 servers in the R&D test environment ran on single-core Intel® Xeon® processor technology, raising energy and management costs and limiting IT’s ability to respond to Teradata’s fast-changing R&D needs.

Solutions
•Virtualize with the Intel Xeon processor 5500 series. With the power and energy efficiency of the Intel Xeon processor 5500 series, Teradata saw an opportunity to consolidate its R&D servers onto an internal cloud. Teradata deployed dual-socket quad-core servers with the Intel Xeon processor 5500 series and Intel® Ethernet 10GB Dual-Port Server Adapters X520.

Impact
•Environmental impact. Teradata retired 319 servers, which Gnau says reduced its energy consumption by over 2 million kilowatt-hours. Other projects brought Teradata’s energy reduction to 2.5 million kWh and earned a USD 250,000 incentive rebate from San Diego Gas & Electric.
•Lower total cost of ownership (TCO). With an average consolidation ratio of 14:1, Teradata has fewer servers to manage, more reliable technology, plus the flexibility of a virtualized environment. Together with energy cost reductions, the management and other TCO savings generated a one-year return on investment (ROI).
•Business responsiveness. IT can provision new servers within minutes, delivering performance and agility to drive product innovation and business growth.