to a single server room, or moving 200 servers originally installed across 20 locations to three data centers.

Relocating existing servers to one or fewer IT sites

Centralization, or data center consolidation, may be a first step for an organization after a merger. After a merger, the resulting entity does not want to attempt merging applications; however, they will collocate their systems as a first step.

For both servers and storage systems, two subcategories of centralization are defined:

Virtual centralization, which is mainly made through the network

Physical centralization, where hardware is physically moved to different locations

Centralization is often the initial step a company takes toward controlling costs through consolidation. It’s also generally the first step taken toward rationalizing the architecture after a merger or acquisition.

By simply relocating existing servers to fewer numbers of IT sites, economies of scale of operation can provide simplified management and cost improvement.

Virtual centralization or remote management

You can begin centralization in small steps. With virtual centralization or remote management, physically dispersed servers or storage systems are logically centralized and controlled through the network. Hardware remains physically distributed, but is brought under a common umbrella of systems management and network management tools. Operations costs can therefore be reduced, and system availability can be improved.

Physical centralization or server relocation

Existing servers or storage systems are physically relocated to one or fewer IT sites. Because this simplifies access for the IT staff, it helps reduce operations support costs, improves security, and ensures uniform systems management. This is a step in the right direction, but the payback is relatively low. However, it is an important predecessor to future consolidation activities.

￿Physical consolidation

Physical consolidation is the replacement or reduction of some number of smaller systems with fewer and more powerful systems. This consolidation does have advantages:

It improves availability because there are fewer points of failure.

It can reduce the cost and complexity of system communications.

It simplifies operations.

Chapter 2. Positioning

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IBM 440 manual Relocating existing servers to one or fewer IT sites, Virtual centralization or remote management