vvEPA

U.S. Environmental Protection Agency

DATA CENTER OPTIMIZATION INITIATIVE

STRATEGIC PLAN

April

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EPA Data Center Consolidation Plan

TABLE OF CONTENTS

1	Executive Summary	3

2	Background	4

3	Introduction	4

4	Data Center Consolidation and Closure Targets	5

5	Cost Savings	7

6	Data Center Optimization Metrics	8

7	Conclusion	12

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EPA Data Center Consolidation Plan

1 Executive Summary

In 2016, the Office of Management and Budget (OMB) launched the Data Center Optimization
Initiative (DCOI) as a successor to the Federal Data Center Consolidation Initiative (FDCCI). On
August 1st, 2016, the Federal Chief Information Officer (CIO) issued memorandum M-16-19
which provided the framework for agencies to achieve data center consolidation and optimization
requirements. Under memorandum M-16-19 agencies are required to develop and report on data
center strategies to consolidate inefficient infrastructure, optimize existing facilities, improve
security posture, achieve cost savings, and transition to more efficient infrastructures, such as
cloud services and interagency shared services. In addition, OMB set a closure goal for the U.S.
Environmental Protection Agency (EPA) of 34 non-tiered data centers by Fiscal Year 2018.

As of April 2018, the EPA has completed 19 data center closures, maintained energy metering at
100% for tiered data centers, maintained a power usage effectiveness (PUE) of 1.5 or below and a
virtualization ratio over 4. The EPA continues to work towards additional data center closures
and anticipates having 22 total closures by the end of September 2018. As of March 2018, all
EPA tiered data centers have energy metering installed, yet lack automated reporting capability as
required in M-16-19. The EPA is evaluating data center information management (DCIM) tools
to help accomplish this task. The EPA is also working to expand the utilization of its
ScienceLogic (EM7) tool to identify areas of improvement with automated monitoring of server
utilization and virtualization. Agency facility utilization remains around 34%. The EPA is
pursuing interagency hosting agreements with other agencies to fill the 14,000 sq. ft. data center
in Research Triangle Park and has provided space for colocation of OMB and GSA data center
assets. EPA's Data Center Infrastructure Management (DCIM) tool deployment and the
assignment of a Data Center Energy Practitioner (DCEP) for each data center has been extended
into FY 2019 due to budget uncertainties.

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EPA Data Center Consolidation Plan

2	Background

In August 2016, the Office of Management and Budget (OMB) released memorandum M-16-19
that established the Data Center Optimization Initiative (DCOI) which superseded the previous
Federal Data Center Consolidation Initiative (FDCCI). DCOI's consolidation and optimization
requirements have a targeted completion date of September 2018 and are summarized as follows:

•	Meet data center closure and optimization targets and reassess cost savings.

•	Assign certified Data Center Energy Practitioners (DCEP) for each data center.

•	Implement automated energy metering and Data Center Infrastructure Management (DCIM)
tools at all tiered data centers.

•	On a quarterly basis, report to OMB Agency progress with respect to data center
closure/consolidation targets, optimization metrics, and cost savings and avoidance targets.

•	Update DCOI FITARA milestones on a quarterly basis.

3	Introduction

Consolidation and optimization of federal data centers has been a priority for the EPA. At the
inception of DCOI, EPA had 58 non-tiered data centers and computer rooms that supported
business operations for EPA facilities located across the country. Per OMB criteria, four of EPA's
data centers are classified as tiered data centers. These include the following:

•	National Computer Center (NCC) in Research Triangle Park, North Carolina.

•	Potomac Yards Data Center in Washington, DC.

•	Region 5 Data Center in Chicago, Illinois.

•	Region 8 Data Center in Denver Colorado.

To improve efficiency and consistency of data center operations, EPA implemented an Agency-
wide Physical-to-Virtual (P2V) policy requiring offices to convert existing physical servers to
virtual servers wherever possible. EPA also defined server and software standards for virtualized
platforms and established an enterprise platform for infrastructure monitoring. EPA implemented
strategic sourcing initiatives to pool resources and negotiate optimal pricing for IT products and
services.

EPA is pursuing opportunities to establish shared data center services and encourage
consolidation of data center functions. EPA established centralized resources for continuity of
operations planning (COOP) and disaster recovery (DR) in the tiered data centers. Region 6 and
region 9 are currently leveraging these services and the Region 4 implementation is being
operationalized. The General Services Administration (GSA) recently established a five-year
agreement with EPA to leverage NCC facilities and hosting services.

To meet DCOI reporting requirements, EPA is in the process of performing market research on
Data Center Infrastructure Management (DCIM) tools. None of EPA's tiered data centers
currently have automated monitoring software for the collection of PUE. EPA budget
uncertainties have led to necessary schedule adjustments for testing and procurement of a DCIM

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EPA Data Center Consolidation Plan

solution. DCIM tool procurement is anticipated in FY 2019.

For non-tiered data centers, EPA plans to leverage its existing EM7 tool to support system
monitoring requirements of server utilization and virtualization. EPA estimates that it is currently
at a Power Usage Effectiveness (PUE) ratio of 1.5 which is within the requirements for DCOI.

EPA's efforts to consolidate and optimize its data centers have been significant. However, it is
important to acknowledge that these efforts involved considerable resource commitments to
upgrade data center infrastructure, consolidate data center assets, and perform tool assessments.
We are confident that these efforts will enable EPA to better monitor and manage its energy
consumption and report on OMB's optimization metrics, but they may not produce cost savings
in the near-term. Additionally, EPA must also balance consolidation efforts with network costs
and application performance requirements. For example, some EPA regional offices, research
centers, labs and other facilities host local infrastructure such as telecommunications
infrastructure, specialized lab and research systems, and COOP and DR. The distributed nature of
this infrastructure and the need to support these critical requirements can make further
consolidation challenging. As EPA moves forward to achieve DCOI requirements, it will need to
continue to balance the benefits of consolidation with operational requirements and costs. The
remainder of this document provides more detail on EPA's progress and plans for meeting DCOI
requirements.

4 Data Center Consolidation and Closure Targets
Current Progress

OMB assigned a target goal for the EPA to close 34 non-tiered data centers by September 2018.
At the inception of the DCOI, EPA maintained 58 telecommunication closets and computer
rooms that met the classification of a data center per memorandum M-16-19. These data centers
support business operations for EPA facilities including Headquarters (DC Metro area), Research
Triangle Park (RTP), 10 regional offices and 13 HQ Program Offices. The remaining facilities
are small field offices and continuity of operations (COOP) sites.

Per OMB's criteria, EPA classifies four of its data centers as tiered. The tiered data centers
support EPA's enterprise information technology (IT) operations. EPA's primary data center, is
the NCC, located in RTP, North Carolina. Figure 1 depicts EPA's tiered data centers, computer
rooms and network topology. EPA is currently in the process of downgrading the Region 8,
tiered data center and replacing the Potomac Yards data center with the National Enforcement
Investigations Center (NEIC) which will serve as EPA's western presence data center. At project
completion, EPA will have three tiered data centers.

All tiered data centers will be operated in a standardized fashion and will implement
configurations that maximize power and cooling efficiency.

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Figure 1 - EPA's Primary Data Centers

PRIMARY
DATA CENTER

Regional Field Offices

Regional HQ

COOP Sites

EPA Labs

To meet OMB's closure target, the EPA reviewed its existing data centers and revised its
approach for consolidation utilized under FDCCI. For geographic areas where EPA has multiple
data centers, a single facility was designated into which data center IT assets will be consolidated.
Additionally, the EPA intends to consolidate all non-tiered data centers not designated to be
retained to serve a geographic area unless it is proven infeasible to close some data centers due to
technical limitations that compromise agency mission essential functions. Through these efforts,
EPA has identified potential closures sufficient to meet OMB's target. Several validation
activities are required before confirming this total.

As Table 1 shows, under FDCCI, EPA closed 21 of its data centers. For DCOI, EPA has closed
19 data centers, 3 are in progress and expect to complete prior to the 2018 deadline.

Table 1 - Completed and Planned Data Center Closures by Fiscal Year

Completed

and Planned Data Center Closures by Fiscal Year

FY
2010

FY
2011

FY
2012

FY

2013

FY
2014

Q.l/2

FY
2015

03/4

FY
2015

FY
2016

FY

2017

Q1
FY
2018

Q2
FY
2018

03
FY
2018

04
FY
2018

0

1

14

3

1

2

3

3

12

1

0

3

0

21 Total FDCCI Closures

19 DCOI Closures Completed

3 Planned

21 Total FDCCI

22 Total DCOI

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EPA Data Center Consolidation Plan

Activities Underway

For those data centers targeted for closure, DCOI points of contact (POCs) are reviewing their
data center IT assets and determining which to decommission, consolidate and/or virtualize.

They will then execute consolidation plans to move applicable data center IT assets to the Cloud,
an EPA tiered data center or the data center retained for that geographic area. The final phase of
the effort will require DCOI POCs to surplus or excess data center IT assets and scale remaining
data center assets to align with reduced capacity requirements. Efforts are also underway to align
additional closures with lease timelines and funding availability.

Challenges and Risks

In some cases, EPA's regional offices, research centers, labs and field offices host local
infrastructure data center assets such as specialized lab and research support, emergency response
(ER) and COOP that may have non-severable configurations and potentially, must remain co-
located to operate and fulfill mission functions. The distributed nature of these offices and the
continuation of required localized mission functions require EPA to balance consolidation efforts
with continuity of business functions, application performance requirements, cost and security.
Testing is required to validate operational functionality before migrating these systems away from
the local site. EPA has identified several laboratories with servers running Laboratory
Information Management Systems (LIMS) that interface with LAN-based scientific equipment.
To migrate the LIMS servers, the EPA is required to test the WAN capabilities of these systems
as well as procure network and security hardware to provide additional security as the scientific
equipment is isolated due to security concerns. Budgetary uncertainties have extended execution
of efforts required to perform validation and procurement activities into FY 2019.

5 Cost Savings

Given the upfront investments for infrastructure upgrades, tool assessment and validation, the
EPA does not expect significant near-term cost savings under DCOI. The EPA structured its data
center consolidation work to promote cost savings in areas of increased facility utilization,
reduced energy consumption, maximized server and storage use, and reduction in the long-term
growth of IT infrastructure costs. EPA is continuing to refine and enhance DCOI cost savings
calculations to ensure accuracy. Though OMB agreed there would be negligible savings in the
near-term, the EPA has begun gathering additional information to track any realized costs or
savings within our quarterly progress data calls.

Projected costs needed to fulfill identified DCOI goals include planning and design activities,
updates to data center facilities (e.g., uninterruptable power supply, power distribution unit, and
computer room cooling equipment), validation testing of local applications across the Wide Area
Network (WAN), DCIM tool and security device procurements, and DCEP training and/or hiring.
Additionally, the EPA required investment in WAN bandwidth upgrades to accommodate
additional traffic that is no longer isolated to the Local Area Network (LAN) infrastructure. These
investments, while critical to support long-term DCOI objectives, offset any near -term cost
savings. In the longer-term, however, the Agency expects these improvements will reduce energy
consumption leading to greater efficiency and demonstrable cost reductions.

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EPA Data Center Consolidation Plan

6 Data Center Optimization Metrics
Current Progress

OMB established several optimization metrics under DCOI to include: energy metering, Power
Usage Effectiveness (PUE), facility utilization, as well as automated monitoring of server
utilization and virtualization. All EPA tiered data centers have some form of energy metering
installed. While current metering is adequate to provide an estimated amount of energy
consumption to calculate PUE, submetering at some of the tiered data centers is required for
precise PUE calculations. The EPA currently reports a PUE of 1.5 and does not expect to
implement any additional submetering at any of the remaining data centers.

M-16-19 requires federal agencies to assign a DCEP to all data centers. At the outset of DCOI, the
EPA did not have a certified DCEP on-staff. OEI will fulfill this requirement in one of two ways:
for the near term, existing IT services contracts will be assessed to determine the feasibility of
using contractor resources to provide the role of a DCEP for its data centers. For the longer term,
OEI will consider utilizing EPA staff in the Office of Administration and Resources Management
(OARM) as they currently have the responsibility for provisioning facilities management and
services. OEI will also give due consideration to creating a federal position and recruiting a DCEP
candidate.

Under DCOI, federal agencies strive to maintain an 80% facility utilization calculated using a
portion of total gross floor area in tiered data centers that is actively utilized for racks that contain
IT equipment. The EPA maintains the National Computer Center (NCC) in Research Triangle
Park (RTP) as its primary data center. This facility is owned by EPA. This 14,000+ sq. ft. facility
is utilized for regional COOP, application hosting and development, and as a co-location hosting
facility for other federal agencies such as GSA.

Through consolidation and optimization of technologies, much of the utilized floor space in the
NCC was emptied. While these efforts increased virtualization and energy efficiency numbers,
they caused facility utilization to drop. The EPA is working to advertise co-location hosting
services to other federal agencies to leverage the NCC facility and meet DCOI facility utilization
requirements. Due to the amount of available floor space, the amount of additional equipment that
is required to fill the facility, as well as other optimization efforts that are in direct conflict with the
facility utilization metric, the EPA expects to meet the facility utilization metric beyond OMB's
FY 2018 deadline.

M-16-19 requires agencies to procure and implement a DCIM tool at all tiered data centers. The
EPA looked at several options and due to budgetary uncertainties, elected to delay procuring a
commercial solution as required under DCOI. Based on feedback from other federal agencies
within the DCOI communities of practice meetings, the lead time for full implementation of a
DCIM tool will place it outside the DCOI implementation timeline. The EPA is continuing to
identify options that may help satisfy DCOI requirements.

OMB required federal agencies to implement automated monitoring to provide at minimum: server
utilization and virtualization ratios. The EPA has determined that a tool for which the Agency
already has a license, EM7, will provide automated capabilities outlined within DCOI and has
already begun the process of upgrading the licensing and collection capabilities to expand to all

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agency servers. The Office of Environmental Information issued an internal memorandum
requiring all agency servers to be configured for data collection within EM7. The EPA expects to
have all agency servers configured within EM7 by the end of CY 2018. The EPA also started work
on a non-standard report based on DCOI formulas for server utilization. The required DCOI server
utilization report has proven challenging as there is no industry standard report that can be
leveraged and a custom report must be created. Additionally, multiple reports must be made to
properly cover the different types of servers and reduce the number of "false positives" that would
be generated from a single uniform report. EPA expects to be able to implement automated server
monitoring by the DCOI deadline. However, further enhancements will be needed to provide the
level of specificity required under DCOI.

The EPA has made considerable progress optimizing its data centers and utilizing consolidation.
These improvements enable EPA to meet some of the DCOI targets. For example, EPA
implemented a "virtual first" policy requiring virtual servers be deployed by default for all server
instances. At the NCC, the EPA initiated a phased data center modernization program which
included a redesigned layout for more efficient use of floor space, turning off air handlers, raising
the operating temperature towards the upper end of manufacturers' specifications, and preliminary
implementation of cold aisle containment technologies. Similar improvements are planned for the
other tiered data centers.

Several program and regional offices pursued similar virtualization initiatives, implemented
more efficient LED lighting, and/or made improvements to server room cooling systems to
reduce energy consumption. For example, Regions 9 and 10 implemented airside economizers
and cold aisle containment systems reducing energy consumption over traditional HVAC
systems. Region 9's improvements included raising the operating temperature to minimize
energy consumption. The result of these improvements allowed Region 10 to achieve a 47%
reduction using the airside economizer as compared to prior year HVAC energy consumption.
Region 10 estimates that over a 10-year lease, the Region will save at least 915,782 kWh and
approximately $89,747 (using 9.8 cents per kWh for Seattle, WA).

EPA also completed the following activities to improve efficiency and encourage consolidation:

•	Standardization and Enterprise Procurement: EPA established server and software
standards for the x86/64 virtualization platforms and established an enterprise platform
for infrastructure monitoring. The Agency will continue to roll out these standards in
upcoming years and verify progress toward achieving the targeted optimization metrics.
EPA also implemented multiple strategic sourcing initiatives to negotiate optimal
pricing for IT products and services. EPA reviews all IT procurements as part of the
FITARA process thereby ensuring organizations are aware of and adhere to Federal and
Agency initiatives and remain aligned with EPA's overall strategic direction.

•	Enterprise COOP and Disaster Recovery (DR): Many EPA offices currently provide
COOP and DR services using site-specific solutions. EPA established centralized
resources for COOP and DR in the tiered data centers to enable the Agency to offer
shared service options and encourage consolidation. Enterprise COOP and DR services
provide remotely accessible data and applications to support continuity of operations
and disaster recovery to EPA regions or field offices. EPA successfully implemented

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virtualized COOP for Region 6 and 9 and is looking to implement a similar
configuration for the other regions.

• Data Center Hosting Services - The EPA entered into an agreement with GSA to
provide data center hosting services at the NCC. This engagement began in September
2016 as a phased deployment that allows GSA to strategically optimize its data center
footprint and reduce operating costs over the next several years. The initial five-year
agreement provides GSA with facility hosting space and associated environmental
requirements (air conditioning and humidity control, electrical, physical security, etc.) as
well as provisions for executing options to continue hosting at the NCC. EPA plans to
develop documentation and procedures to enable the Agency to standardize and reuse its
processes for future co-location hosting engagements with other federal organizations.

Moving Forward

For the remaining data centers, data center POCs are working with EPA management and data
center staff to identify opportunities for greater efficiencies, make necessary upgrades to
address any facilities, network capacity or operational issues, decommission and excess
unneeded IT assets, and appropriately scale remaining assets to align with reduced capacity
requirements.

EPA performed market research on DCIM tools to support automated collection and reporting
of data center hardware/software inventories and optimization metrics in its tiered data centers.
EPA has identified options for DCIM software, procurement and implementation. Open source
solutions such as OpenDCIM are also being evaluated. The procurement and implementation an
agency DCIM solution is anticipated by the end of FY 2019.

For non-tiered data centers, EPA has chosen to expand its current EM7 tool for implementing
automated system monitoring. OEI has directed internal organizations to register all servers
into EM7. The EPA plans to utilize EM7 monitoring to identify those data centers and servers
not meeting efficiency standards, address deficiencies, and meet power efficiency goals.

EPA estimates that it is currently at a Power Usage Effectiveness (PUE) ratio of 1.5. The
Agency anticipates that virtualization and planned optimization activities will enable the
Agency to maintain a PUE of 1.5 through FY 2018. Table 2 outlines planned and achieved
performance levels for each optimization metric for the 2018 fiscal year. Please note: The
estimated figure for the Server Utilization and Automated Monitoring metric is due to lack of
automated software available to provide current percentages. Once EM7 is deployed and an
adequate report generated, the EPA will be able to report server utilization numbers and will
work to begin optimization of unused compute resources.

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Table 2 - Planned and Achieved Performance Levels for Optimization Metrics

No.

Optimization
Metric

FY 2018
Target Value

Current
Value
(Estimated)

Planned
FY 2018

1

Energy Metering

100%

100%

100%

2

Power Usage
Effectiveness
(PUE)

< 1.5

1.5

1.5

3

Virtualization

>4

6.25

>4

4

Server Utilization
& Automated
Monitoring

>65%

0%

20%

5

Facility
Utilization

>80%

34%

35%

Challenges and Risks

EPA has faced budgetary constraints and procurement delays which have hindered the migration
of IT systems to centralized data centers. For example, new procurement requirements resulting
from a protest decision have delayed acquisition of high capacity networking devices which
slowed migration of systems into the centralized data centers.

The EPA maintains many laboratory environments that leverage a Laboratory Information
Management System (LIMS) to record, manage and store data from lab instruments. The EPA has
looked into options to migrate LIMS servers away from the lab environments as several are the
last server remaining to consider the data center closed. LIMS proves challenging in that there is
significant cost to migrate the systems. First, many of the LIMS systems reside on isolated
networks that will require security hardware to allow for NIST-compliant transmission of data.
Next, bandwidth increases are necessary to accommodate the sending of data across the WAN.
There are also costs associated with piloting multiple vendor solutions in WAN-based
configurations. Consolidating all LIMS to a single vendor would incur significant costs as
databases will need to be modified and data adjusted to ensure consistency as well as training and
additional testing for equipment compatibility. The EPA plans to continue investigating options to
migrate the LIMS servers from the smaller laboratories, but due to costs, complexity and
timeframes is unable to complete within the timeline of DCOI.

The increased accuracy of optimization metrics and automated reporting of OMB's optimization
metrics is dependent on the procurement and implementation of a DCIM tool and upgrades of the
EM7 tool. While the Agency is working to plan for and mitigate potential procurement and
implementation risks, delays in either process could further impact EPA's ability to meet DCOI
targets. As automation tools are installed and configured, the EPA anticipates that future
utilization and PUE numbers may differ from those previously reported due to direct
measurement at the source provided by these specialized tools.

Additionally, the EPA is still working towards refining and documenting server metrics, idle

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thresholds and specific server properties for accurately reporting server utilization between
different server types.

Investments are also required to support the planning, design and implementation of optimization
activities. These investments are not insignificant and may make it difficult for the Agency to
demonstrate cost savings. Schedule adjustments from realized budgetary uncertainties have also
delayed the implementation of DCOI.

7 Conclusion

Significant progress has been made to optimize and consolidate EPA data centers. The remaining
planned improvements will enable the Agency to meet some, but not all of OMB's DCOI
objectives. Challenges include technical issues, ensuring business needs are met, and resource
constraints.

Investing in further consolidation will enable the agency to better monitor and reduce energy
consumption, but may not produce cost savings in the near-term.

EPA must balance consolidation efforts with network costs and application performance
requirements. Because some EPA regional offices, research centers, labs and other facilities host
local infrastructure such as, telecommunications infrastructure, specialized lab and research
systems, and COOP and DR in their data centers, further consolidation can be challenging. As
EPA moves forward to achieve DCOI requirements, it will need to continue to balance the
benefits of consolidation with operational requirements and implementation costs.

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