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Building vs Migration - Which is Cost Effective?
The key issues needed to addressed are the following:

The actual cost of the running data center
The actual cost of building a new site with the latest and greatest
The actual cost of migrating into new site or new technologies
Executives and decision-makers and the vicious circle
Middle management roles and their supportive foot-soldiers managers
Our approach to the Best Practice

The actual cost of the running data center:
Before we get caught into details which would not address the actual issues, we will split the cost into following:

       Known running cost
       Unknown running cost

Known running cost can be calculated and/or searched. As for the unknown running cost which would include old and decaying hardware and software, unqualified staff, poorly managed infrastructure, no documentation and data redundancies and the list is not small. To bring the picture to view, let us look at a company like Microsoft which has one million running server. Let us assume that these servers are not running at their optimum and calculate what we call the hidden cost.

       Total number of servers:        1,000,000

MS Hidden Cost Table

According to the internet, most companies have between 50,000 to 100,000 servers. Therefore for a company with 100K servers, the hidden cost or loss would be 10% of what Microsoft would have. So the hidden cost in five years will still be in the $Billions.

The actual cost of building a new site with the latest and greatest:
The actual cost of building a new data center with latest and the greatest will a run into the $Billion and will take a long time to build.

The actual cost of migrating into new site or new technologies:
Migration is the middle management's nightmare and the big puzzle which no one has the optimum answer. Sadly regardless what these managers claim, they are dealing with a mess which has been building up for years and no manager is willing to face the top executives with the reality of the actual status their existing data centers. We also want to add that these top executives are not will to take the cost of building a new data centers, since they may end up in the same messed up data centers they started with.

Executives and decision-makers and the vicious circle:
Spending over a $billion with no guarantee of having the latest and greatest might mean the end of this executive career. So we have a vicious circle, which starts with top executives do not have solid guarantees nor there is a justification for it. Another point is that middle management do not want to be the escape goat for any risk. Therefore, top executives and decision-makers do not want to take a risk and middle management do not want to be the escape goat and the vicious circle continues.

Middle management roles and their supportive foot-soldiers management:
Executives and decision-makers make decisions and middle management turn them into reality with the support of foot-soldiers management. The building or migration of data centers rest primary on the shoulder of middle management. These middle managers are the key to making things happen. They should take the responsibility of both facing executives and decision-makers with guarantees and assurance and also work with foot-soldiers managers to turn decisions into reality.

Our approach to the Best Practice:
Deciding between which route to take Build or Migration requires middle management to do what is best for their companies and address the following:

How bad the existing data center infrastructure is?
Estimate the hidden cost
Research the technologies and see how far off their data centers actually are
Create a plan for both Build and Migration
Create risk analysis and remedy
Calculate the Return on the Investment
Brainstorm the plan with foot-soldiers managers
Estimate the actual cast of Build or Migration
Present their plan and analysis to executives and decision-makers

We believe that our Object Oriented approach would be the best practice for either Build or Migration.
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