Virtualization%20Business%20Case

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Virtualization Business Case

• 2007

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The Problem of Virtualization

• 44 of organizations cannot determine if
  virtualization goals were achieved
• 16.2 of IT projects succeed
• IT history of shanty towns among early adopters
• Understand where youre going
• Understand your metrics

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Drivers for Cost Reduction

• Hardware and Related Physical Infrastructure
• Cost of real estate (limited floor space)
• Cost of power
• Cost of cooling (3x)
• Over-provisioning
• Software
• Licensing
• Patch management
• Migrations and upgrades
• Management
• 50-70 of TCO
• Speed of provisioning (weeks)
• DR environment
• Fewer staff
• Consolidated training needs

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Virtualization Can Help
Using VMware virtual infrastructure, we can offer
the same levels of service and more flexibility
for up to 40 percent lower server and operating
costs.
Many firms attribute their adoption of
virtualization to server consolidation, but an
equivalent number are using the technology to
make their server environments more flexible and
agile.
Rob Jones, Director of Technology, ALSTOM
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1. Pragmatic Approaches To Server
Virtualization, Forrester, June 2006
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State of Infrastructure Today
Server Sprawl
Power Cooling

• 36M physical x86 servers by 20111 a 10x increase
  in 15 years1
• 140B in excess server capacity - a 3-year
  supply2

• 50c for every 1 spent on servers2
• 29 bn in power and cooling industry wide2

Operating Cost
Space Crunch

• 8 in maintenance for every 1 spent on new
  infrastructure2
• 20-30 1 server-to-admin ratio3

• 1,000 / sqft2
• 2,400 / server2
• 40,000 / rack2

1. IDC, U.S. and Worldwide Server Installed Base
20072011 Forecast, Doc 207044, May 2007 2.
IDC, Virtualization And Multicore Innovations
Disrupt The Worldwide Server Market, Doc
206035, March 2007 3. Source VMware
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Traditional Process vs. Virtual Infrastructure
Key Task Traditional Approach Virtual Infrastructure Approach
Moving an application to a new server 4 - 6 hours for migration Service interrupted for duration of maintenance window Requires days/weeks of change management preparation 2 - 5 minutes for live migration using VMotion and DRS (no service interruption)
Hardware maintenance Requires 1 - 3 hour maintenance window Requires days/weeks of change management preparation Zero downtime hardware upgrades with VMotion and DRS
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Maximizing Return - Metrics

• Hardware and Related Physical Infrastructure
• BTU per CPU/second
• KW per CPU/second
• Cost per square foot
• Software
• Cost of non-compliance
• Cost of downtime
• Management
• Migration labor hours
• Provisioning labor hours
• Headcount per CPU/second
• Operations cost per CPU/second
• Cost of training / training days
• Centralization
• Number of managed environments
• Data centers
• Closets
• MDF/IDF

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Maximizing Return - Metrics
Always relate to workload
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Maximizing Return - Tools

• Platespin PowerRecon
• VMWARE Capacity Planner
• Eracent EnterpriseAM
• IBM Consolidation Discovery and Analysis Tool
  (CDAT)

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Assessment Methodology

• Inventory / Discover
• Physical assets
• Intellectual assets
• Infrastructure assets
• Current cost baseline
• Business / mission objectives
• Monitor
• Measure key indicators of performance
• Behaviors as important as averages, peaks
• Use data to narrow options
• Model
• What if scenarios for both performance and cost
• Identify constraints
• Resource allocation
• Workload prioritization
• Security limitations
• Evaluate
• Identify optimal choices
• Develop architecture

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Risks to Successful Implementation

• Backups
• Impact on shared disk infrastructure
• Complexities of restoring data
• Data consistency
• Workload Planning
• Accurately measuring current workloads, peaks
• Aggressive oversubscription 50-500 versus 101
  501
• Higher randomization of I/O on disk subsystems
• Ongoing monitoring
• Security
• Classified systems
• Isolation of data access and processing
• Human Factors
• Organizational conflict
• Ability to downsize
• Retraining
• Manage
• Ensure that management applications can support
  virtual machines
• Ensure that apps measure and trend important
  performance data

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Benefits of Consolidation
3-Year Cost Savings / Workload 3-Year Cost Savings / Workload
Server Hardware 5,816
Power Costs 759
Cooling Costs 949
Data Center Real Estate 431
Network Infrastructure 296
TOTAL 8,251

• Fewer Servers to Manage
• Less Power required
• Less Space needed
• Less Cabling required

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Free Up Maintenance
Applicationmaintenance 15
Applicationmaintenance 30
Applicationinnovation45
Infrastructuremaintenance42
Infrastructuremaintenance30
Applicationinnovation23
Infrastructureinnovation10
Infrastructureinnovation5
Source Fortune 100 Company
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Questions?