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Linux is also making gains on the high end, as that endlessly adaptable mainframe proves a viable platform for the software. Winnebago jumped on the bus nearly three years ago, using mainframe-based Linux for such applications as Web serving, file sharing, and other Internet-related functions, and other mainframe shops are following suit.

More typical, however, is Cooper Tire & Rubber Co. "Our systems administrators are trying to learn and experiment with a version of Linux," says John Mitchell, vice president of IT at the Findlay, Ohio, tire manufacturer. "We don't know if we want to bet the company on Linux yet." But many analysts expect that following a suitable period of tire-kicking, most companies will increase their reliance on Linux, perhaps not on the desktop, where Windows reigns supreme, but certainly within the data center.

Centralization entails software decisions beyond the operating system, of course. Oracle Corp., for one, is promoting "single-instance" software, whereby customers can run all their operations using one copy of its enterprise applications.

Always happy to hold itself up as an example to follow, Oracle got single-instance religion a couple of years ago when it found it was running some 64 databases worldwide. "We had essentially one per country," says Steve Miranda, vice president for applications development at the Redwood Shores, California, company.

No more. Today Oracle has reduced 64 sites to just 3, and will soon be reliant on a single data center in Austin, Texas, with a redundant site at the ready in the event of disaster. Fifteen of Oracle's large multinational customers are following suit. "The majority of our customers are in a similar boat, with their ERP systems installed multiple times throughout their enterprise," adds Miranda.

Besides getting rid of redundant hardware and systems, companies find that this kind of centralized approach makes it easier to perform such reporting functions as global audits. The advent of Web-based technologies does, in theory, make a single virtual data center out of widely distributed computing resources, but proponents of the single instance argue that a single installation is rigid enough to enforce processes while remaining flexible to financial practices.

Copy That?
Even as companies centralize hardware and software, they are choosing to distribute data storage. The idea is to maintain identical sets of data in different locations to protect against service interruptions.

"If data center A goes away, we can bring all the same data up instantly on data center B," says Allan Woods, vice chairman and CIO at Mellon Financial. This is a trend all CFOs — not just those at banks — should be aware of, he believes. "It will be on most CFOs' radar soon if it isn't already — the acceptance that disaster planning and business recovery are investments that companies will have to make," he adds.

Costs per gigabyte of storage continue to plunge — bad news for vendors, since a concomitant rise in demand has not materialized, but good for customers. When it comes to storage, at least, "absolute dollar expense is not something that drives most CFOs crazy," says Woods.

Helping to drive costs lower: the trend away from traditional direct-attached storage and toward various forms of networked storage. According to a study from McKinsey & Co. and Merrill Lynch & Co., a company with five terabytes of data storage would save $2.5 million during a three-year period by opting for networked-storage technology.


Sidebar: Glass House or Greenhouse?
The data center has long been renowned for its specialized needs in terms of the care and feeding of a mainframe: raised floors, special cooling systems, and plenty of backup power. But with so much processing power moving to small, low-cost servers, shouldn't any room do for a data center?

Not necessarily. It turns out that newer computers often have gargantuan appetites for energy and require plenty of cooling capacity in order to counter the prodigious amounts of heat thrown off by multiple CPUs.

"The heat output and power requirements of the new generation of rack and blade servers are 6 to 10 times what many data centers are designed to handle," says Carl Claunch, vice president and research director at Gartner. The typical data center was designed to provide 40 watts per square foot of space, versus a demand for 300 watts or more posed by new data centers. "For many companies," predicts Claunch, "this will mean a fairly extensive retrofitting, or else they will have to find emergency or secondary centers to host their new systems."

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