Aaron Rallo had a challenge… He ran an online photo finishing service provider for some of the world’s largest retailers and wanted to lower his costs. One obvious area to look was electricity… He noticed that even though order volume would increase and decrease greatly each month, his power bill seemed to resemble a straight line on a graph each month.
This led to the formation of TSO Logic where he is Founder & CEO… The Vancouver-based company has one customer, Arc Productions in Toronto which uses it solutions on 600 servers to save $140k year in power costs.
I am sure that’s what Arc Productions calls a “Real Kodak moment.”
He said, “We all build our data centers for the busiest point in time… I built mine for 2 hours before xmas.” Referring to his past company. He said on average an organization will see a 56% reduction in their power utilization after deploying their solution.
The system lets you set up various business rules like ensuring end-users have a minimum response time, determining a minimum number of servers to have running or even CPU utilization. He explained that often savings can take place at night for a business but in the case of a stadium there can be tremendous savings on a more frequent basis.
We actually met at Interop 2014 where his company was monitoring the power utilization of the devices at the event and was doing so in order to show its new dashboard which lets CXOs see exactly how much power is being used in their data center. This can be done per device or even per user. Now you can determine exactly what it costs you to provide customers with free WiFi for example.
You have heard me wax poetic about the Software Telco market and how network function virtualization or NFV will allow carriers to save tremendous amounts of money in the future. Solutions like those from TSO Logic will be needed for these goals to be met.
One other point worth making is government organizations and utilities often have large pools of grant money to throw at initiatives like this which save power and decrease the need for new power plants to be built. He says New York State and Europe are some areas ahead of the curve in this regard.
This is the graph of power usage from Interop 2014 as I post this entry – as you can see, the cost per user is $1.69 per day