Intel IT – Walking the talk— in Datacenter Server refresh, virtualization and IT ROI

We always like to feature Xeon server customer success stories at Intel, in order to help us make our point about total cost of ownership, refresh cycles, ROI and power savings.  They are always credible and interesting examples of the various ways our technology is actually deployed by creative customers.

But, I recently happened across Intel IT’s annual performance report for 2010-2011. I’m going to spend some time on it, as it is a shining example of what IT can accomplish, even during times of restricted budgets, and pressure to respond to requests for business agility.  And, it’s an example of us “eating our own dog food.”

Let’s face it, most of us only reflect on IT when we’re cursing it because something has gone wrong. But, I urge you to do something different.  Go check out this great case on Delivering Competitive Advantage through IT.

There are two things that strike me:

  • First Intel is doing exactly what it recommends to customers
    • A 40% reduction in ERP servers while increasing capacity by 260%,
    • A power load reduction of 7.35 million KWH
    • A $47.6M savings from eliminating all single core processors in the design infrastructure,
    • 3.5X increase in the use of server virtualization with consolidation rations of 20:1
    • 3 hours automated self-service deployment of infrastructure services in our private cloud.
    • I’m sure this sort of improvement is what every IT manager wants to deliver!
  • Second, and perhaps more importantly, is the business improvements enabled by these changes that are both breathtaking, and essential in today’s competitive environment
    • 65% decrease in manufacturing cycle time
    • 65% reduction in order-fulfillment time
    • $26M travel avoidance due to video conferencing
    • 8X the number of laptops with solid state devices (my personal favorite!)
    • 32% reduction in inventory

It’s the quick impact on the business results that every company, big or small, needs these days and its from IT investment.  It’s also the kind of track record that can help IT organizations when it’s time to plan for next years IT budget!

If this all seems too simple, check out all the details in Intel IT’s annual performance report for 2010-2011.   We’ve also got white papers, videos and blogs by checking out IT@Intel  and you can engage with our Open Port IT Community & Blogs.