Data Center Efficiency: The Key to Profit for Cloud Service Providers

Cloud adoption is accelerating as the migration of workloads to cloud service providers (CSPs). In a recent survey, 74 percent of chief financial officers (CFOs) said cloud computing will have the most measurable impact on their business in 20171, and IDC has forecast that by 2018 at least half of all IT spending will be cloud-based.2

To capitalize on their customers’ keenness to embrace cloud services and see real business success, CSPs need to ensure that their infrastructure is as efficient and cost-effective as possible. At the same time, the fast-paced public cloud market, along with end-customers’ high expectations of cloud solutions, means that CSPs must deliver the highest levels of performance, reliability and security.

For many CSPs, a particular challenge is efficiently managing their data centers and cloud infrastructures. As the scope of services offered by CSPs can range widely, optimizing operating efficiency to be able to deliver each service profitably is a key concern.


74 percent of CFOs said cloud computing will have the most measurable impact on their business in 2017.

Across geographies and industries, CSPs are successfully delivering a competitive advantage by making efficiency-driven changes to their infrastructure. One such example is web service provider Yahoo!. With a customer base of more than one billion people benefitting from its free products and services, Yahoo! needed to optimize its infrastructure to be more cost efficient, increase its throughput, and enhance its customer experience. To achieve these goals, the company decided to shift from a traditional storage model to an open source, software-defined storage model based on RedHat Ceph* with Intel® Xeon® processors, Intel® Solid-State Drives based on PCIe*, and Intel® Cache Acceleration Software. By modernizing its infrastructure in this way, Yahoo! has been able to make staggering improvements to its operational efficiency – increasing its throughput by up to 400 percent and reducing end-customer latency by as much as 75 percent.

Another example can be found in Mandic Cloud Solutions, one of the leading Brazilian cloud computing companies, which specializes in providing Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) solutions. Mandic wanted to upgrade the energy efficiency of its data centers to improve its operations and reduce electricity consumption. The chosen solution combined software managing the power consumption and temperature of servers with Intel® Node Manager to streamline operations throughout the server fleet across Mandic’s three data centers. These changes saw Mandic expand its rack occupancy rate by 40 percent and reduce electricity consumption by 30 percent. Mandic is also now able to monitor and control the temperature of its servers more efficiently, thereby increasing their availability and mitigating operational risks.

Optimizing operating efficiency by CSPs also enables end-customers to benefit from similar improvements to their IT infrastructure. An excellent case in point is BookMyShow, 
the largest online entertainment ticketing platform in India, which needed to upgrade its technologies and infrastructure to meet increasingly high levels of traffic for its new releases. BookMyShow decided to take advantage of the cost-effective scalability offered by cloud and data center solutions provider NxtGen with Intel® NVMe Solid State Drives and shift to a hybrid cloud infrastructure. As a result of the NxtGen solution, BookMyShow now has a more cost-effective way to deal with its dynamic online traffic, as well as increased speeds and a reduced server footprint.

For further examples of how CSPs are refining their infrastructure to optimize the efficiency and cost-effectiveness of their cloud infrastructures, as well as further examples of how cloud providers are innovating new services, take a look at our interactive CSP Success Stories page.

By optimizing power consumption and server temperature, Mandic Cloud Solutions has reduced electricity consumption by 30 percent.

Find the case studies relevant to you

Discover how CSPs like you have transformed their business.

Product and Performance Information

2 The Salesforce Economy: Enabling 1.9 Million New Jobs and $389 Billion in New Revenue Over the Next Five Years,