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Data Center Management Highlights Results • Identified spreadsheet errors causing discrepancies of between $119 million and $172 million in True Shareholder Value. • Included more information known to be relevant, providing a strategy increasing True Shareholder Value by $460 million. • The strategy would also prevent an average of 66,000 tons of carbon dioxide emissions, while still meeting 100% of the data demand even in extreme cases. • Time required: 3 days + 3 hours of client time Description Industry Internet information services. Business Problem Server upgrade strategy for a large datacenter. Issues • Several months required for internal analysis. • Critical errors and lack of transparency in analyst’s spreadsheet. • Goal maximized the value for the IT department instead of shareholders. • Lack of flexibility for choosing server upgrades. • No accounting of potential lost revenue for suboptimal datacenter performance. • Unrealistic projections of demand for datacenter services. Provisdom’s Solution • Required only three (3) days for complete analysis. • Straightforward inclusion of uncertainty for future demand and revenue. • Flexible strategy based on projected learning about demand. The upgrade strategy balances expected future revenue with upgrade costs based on current information about demand. • Proper inclusion of tax and depreciation effects on True Shareholder Value. • Direct maximization of True Shareholder Value instead of departmentally motivated goal.
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