TECHNOLOGY AND THE BUSINESS OF GOVERNMENT

The Energy Department can save millions of dollars per year by consolidating data centers managed by contractors, according to an inspector general report released this week.

Comment on this article in The Forum.The report estimates that Energy could save at least $2.3 million annually by using more efficient hardware technologies and consolidating servers at the six data centers audited. The department spent $331 million in fiscal 2007 operating similar centers that house technology and networking hardware to support critical functions.

"The department has not always taken advantage of opportunities to improve the efficiency of its contractor data centers," the IG stated.

The report noted that Energy has maintained as many as 140 independent data centers despite the fact many provide redundant services such as e-mail or data storage. In addition, four of the six sites surveyed "made only limited use of more efficient hardware technologies that conserve energy and reduce operating costs." The power and cooling demands of hardware account for a significant portion of data center maintenance costs, according to auditors.

The report gave the department credit for attempting to improve efficiency by collecting information on energy consumption at data centers. Auditors also detailed several ongoing consolidation efforts, including one led by the Office of the Chief Information Officer.

The report recommended that Energy pursue consolidation wherever possible, not simply because of increased efficiency but also to save space.

Energy Department officials questioned the accuracy of some portions of the IG review, predicting that the savings from data center consolidation would be significantly less than those cited in the report. The calculations included servers that do not easily lend themselves to consolidation or elimination, department officials told the IG. They also pointed to continuity issues as one argument against moving all operations to a single site.