Cutting IT Costs with Server Virtualization

Server Consolidation with VMWare VirtualizationConsolidating Servers with Virtualization can have some dramatic cost savings

Jeff BowersVirtualization & Security EngineerAdvanced Logic [email protected]

Cindy DeHartVirtualization Practice ManagerAdvanced Logic [email protected](540) 443-3392

Agenda

Session Logistics & Introductions

Economic Environment in 2011

Why VMware is a Strategic Investment

Additional Cost Savings with vSphere 4.1

Proven Customer Success

Resources & Next Steps

Q&A

Key areas of ALI’s expertise

Collaboration & Messaging

IP Voice/Video/Data

Resource Management

Mobile Workforce

Data Storage & Archiving

Network Support

Virtualization

Data Security

Managed Services

Why ALI?

Trusted Expertise

Responsive

Value-drivenExperienced

Technology partners

WebexBlackberryHP

Novell

Lightspeed

Cisco

Lenovo

EMC

RSA

Messaging Architects

Motorola

Sophos

Sony

CitrixMicrosoft

VMWare

Liebert

Agenda

Session Logistics & Introductions






Q&A

The Road Ahead….

Source: Gartner, January, 2010

“At the same time, pent-up demand for new technologies will be

released as enterprises focus on new growth opportunities and

increase spending plans.”

- Gartner Research

An increase in IT spending is expected to increase 4.6% in 2011

The economic environment is a leading indicator of tech spending

The IT Dilemma

I am supposed to do the same job, but with less budget and headcount?!?

Agenda

Introduction & Webinar Logistics






Q&A

Recent CIO Surveys Agree: Virtualization is the Top CIO Priority in a Tough Economic Environment

Source: Merrill Lynch CIO Survey, Oct 28th, 2008Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

“The current environment has moved virtualization toward the top of the priority list for CIOs.”

“Total cost of ownership (TCO) reductions will be a key driver of the acceleration in server virtualization deployments as CIOs are forced to cut capital spending and reign in management, administrative and power/ cooling costs.”

Which software providers are gaining share of your IT spending dollars?

113 Quarters

#

Source: Goldman Sachs IT Spending Survey, March 9th, 2009

VMware Continues to be the #1 Software Investment for CIOs in a Tough Economy

Gaining

1. VMware2. Citrix

Systems3. Cisco

Software/ Security

4. Oracle5. Symantec

VMware

Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

“VMware’s incumbent position at the top of the rankings demonstrates that server virtualization momentum remains alive and well with a strong ROI case for a declining budget environment.”

- Goldman Sachs

Which software providers are gaining share of your IT spending dollars?

VMware is the Proven, Trusted Leader Providing the Highest ROI and Lowest TCO

Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment

Minimize Lost Revenue Due to Downtime3

Reduce Datacenter Operating Cost (e.g. Power & Cooling)

2

Reduce Physical Infrastructure Cost1

Before After

Business Loss Due to Datacenter Outage**Sys Admin per 100 Apps*

* Source: IDC and VMware TAM program** Source: VMware customer – a $2bn insurance company. Estimates based on 40 hrs needed to recover before virtualizing and 4.5 hrs needed for the same recovery after virtualization.

Infrastructure Cost per App

Before After

Reduction in Datacenter Capital Expense

2.0-3.0

Before After

$14,235

$5,6940.3 – 1.0

Reduction in Datacenter Operating Expense

$30 MM

$4 MM

Reduction in Risk

VMware Delivers Tangible Business Outcomes

Reduce Server Spend Through Consolidation

VMware…

Decouples software from

hardware

Encapsulates Operating

Systems and applications into

“Virtual Machines”

A Server or Desktop Virtual Machine

Typical Consolidation: 5:1

Typical Excess Hardware Capacity: 3

Years!

Copyright © 2005 VMware, Inc. All rights reserved.

Reduce Energy Consumption

Copyright © 2005 VMware, Inc. All rights reserved.

Highest consolidation rates on most secure and reliable virtualization platform

Safely improve utilization rates

80% energy reduction

Dynamic server and storage migration

Power off unneeded servers in real-time

Migrate storage dynamically


Host desktop PCs in the datacenter

Use thin clients, double refresh cycle

Reduce storage for similar desktop images


Total Savings Per Workload

Servers 1000 80 $5,816

Network Switches 84 10 $296

Real Estate (Sq ft) 2053 257 $431

Power (kWh) 407 52 $759

Cooling (kWh) 509 64 $949

Savings per Workload(Over 3 years)

$8,251*

BEFORE AFTER SAVINGS

• Actual customer savings per application; represents typical savings• Includes estimated cost of VMware licenses, Support and Subscription

VMware consolidates servers, storage and networking infrastructure to safely achieve higher utilization

Reducing Capital Cost

1

Reducing Operating Cost

2

Improving Operational Efficiency

Source: IDC and VMware TAM program

Do more work with the same number of people = operating cost savings

Free up resources and budgets from day-to-day maintenance to focus on future innovation and strategic projects

Drivers of productivity improvements:

Instant provisioning

Dynamic patching

Zero downtime maintenance

Reducing Operating Cost2

Double the time for innovation: from 28% to 55%!

Ensuring Business Continuity

Source: IDC and VMware TAM program

Reduce business risk without increasing costs or complexity

Minimize lost revenue from and avoid costs of business downtime

Drivers of productivity improvements:

Built-in high availability

Automated recovery

Reducing Operating Cost

Minimize Lost Revenue3

A VMware Customer…

VMotion – Avoided downtime due to planned server maintenance

Storage VMotion – Avoided planned storage downtime

DRS – Automated monitoring and load balancing

Update Manager – Automated host and guest patching

= $ 45,000

= $ 43,000

= $ 39,000

= $ 36,540HA – Simple, cost effective high availability

SRM – Automated site recovery

= $ 48,000

= $ 615,385

A VMware customer who has 100 VMs, realizing over $2,725,925 of savings annually, or $8,177,774 over 3 years

See ROI/ TCO calculator for your own detailed models

Agenda







Q&A

Application Services

Infrastructure Services

Scalability

VMware vSphere 4.1

Security

• AD Integration (host)

• More VMs (per cluster, DC)

• More Hosts (per VC, DC)

• HA Diagnostics And Healthcheck• vMotion Speed

and Scale

Availability

vNetworkvStorage

• Network I/O Control

• Storage I/O Control

• vStorage APIs forArray Integration

(VAAI)

• Memory Compression

• DRSHost Affinity

vCompute

vCenter Server (64-bit) ManagementServices

• Update Manager Enhancements

• Virtual Serial Port Concentrator

vSphere 4.1 Delivers “Cloud Scale”

10,000 VMs / vCenter (3x)

500 hosts / vCenter (5x)

3,000 VMs / cluster (2x)

99% of VMware’s 190K Customers Can Run Their Entire Datacenter in a Single VMware Cluster.

Enhanced Scalability Defined

vSphere 4 vSphere 4.1 RatioVMs per host 320 320 1x

Hosts per cluster 32 32 1x

VMs per cluster 1280 3000 >2x

Hosts per VC 300 1000 >3x

Registered VMs per VC 4500 15000 >3x

Powered-On VMs per VC 3000 10000 >3x

Concurrent VI Clients 30 120 4x

Hosts per DC 100 500 5x

VMs per DC 2500 5000 2x

Additional Reduction in Power Costs

Assumptions: 50% of 50 servers can be powered down for 8 hrs/d ay on weekdays and 16 hrs/day on weekends.

Total power consumption per server ( operating power + cooling power) = 1424 watts/hr

Cost of energy = $ 0.11 per kWH (source: Energy Information Administration)

$48, 048

$37,752

Before DPM After DPM

DPM Savings for 50 Hosts For our customer example:

Additional power and cooling savings of $10,296

NOTE: vSphere 4.1 model is based off 50 servers due to the 100% better consolidation achieved

Up to 50% Storage Savings

Assumptions:50% storage deferred due to thin provisioning

Storage costs are $3/GB and RAID5 is used

Storage savings with Thin Provisioning:

Reduced storage purchases due to less over provisioning

50% reduction in storage costs: $99,750 (over 3 years)

ROI Example - Assumptions

Hardware Savings

Power & Cooling Savings

Network Savings

Labor & Downtime Savings

Cost Benefit Analysis

- 3 years

- Payback – 2.7 years

- 5 years

- Payback – 3.1 years

Agenda







Q&A

34

Meet Service Levels Efficiently

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.”

Rob Jones, Director of Technology, ALSTOM

Reduce Costs

“Using VMWare enabled us to roll out a new learning management system with no

increase in hardware. In fact our server consolidation saved us money on hardware,

cooling and management costs.”

Sandy Forrest, Director of IT, Martinsville City Schools

Customer Testimonials

Simplify Management

“Our organization was looking to streamline our IT infrastructure and be proactive and cost effective. We wanted to spend less time patching systems or fighting fires; and more time on enabling the growing IT needs of the students and teachers.”

Steve Kruskamp, Director of IT, Gonzaga College High School

http://www.alstom.com/

http://www.alstom.com/

Available ResourcesOnline ROI/ TCO Calculator: Customizable analysis of virtualization’s impact on your IT budget and datacenter costs

http://roitco.vmware.com/vmw/

Why Choose VMware: Vendor selection checklist to ensure a Complete, Robust, Proven Virtual Infrastructure

www.vmware.com/technology/whyvmware/

Why Choose ALI:

Proven experienced team

http://www.ali-inc.com/solutions/virtualization.html

http://www.vmware.com/technology/whyvmware/






Agenda







Q&A


Licensing Experts

ALI Consulting & Support

Capacity Planner

ROI Calculator

ALI Consulting & Deployment Services

Consultative Assessment

Project & Resource Planning

Deployment

Proactive strategy

Clear roadmap for deployment

Value driven project analysis

Limits burden on existing staff

Saves IT budget

Speeds time to deployment

Priority access to expertsw

Options for non-production/lab testing

Special Incentives for Webinar Attendees

Act within next 60 days to receive:

Special product discounts available Special rates for project-based ALI services & assessments

Call Cindy for more details!

Questions & Feedback

Jeff BowersVirtualization & Security EngineerAdvanced Logic [email protected]

Cindy DeHartVirtualization & Novell Practice ManagerAdvanced Logic [email protected](540) 443-3392

Cutting IT Costs with Server Virtualization

Technology

vmware customer

spending survey

capital spending

spending dollars

server virtualization

vmware tam programdo

typical savings

server consolidation