© 2013 VMware Inc. All rights reserved Confidential VMware Accelerate ™ Advisory Services A Software-Defined Data Center Case Study Mark Sarago, Strategist, VMware Accelerate Advisory Services
Software-Defined Data Center Case Study – Financial Institution and VMware
Oct 21, 2014
In this case study, a large financial institution engaged the VMware software-defined data center team to create a three-to-five year forward-looking strategy document for its IT department. The overriding business driver for the institution was the need for a drastic reduction in IT OpEx Costs, at least a 50% OpEx annualized cost reduction over a three-year period. This presentation explains how VMware Accelerate Advisory Services established the necessary strategy, including a look at the “cloud reference architecture,” which addressed the: application plane, control plane, infrastructure layer, and management plan.
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© 2013 VMware Inc. All rights reserved
Confidential
VMware Accelerate™ Advisory ServicesA Software-Defined Data Center Case Study
Mark Sarago, Strategist, VMware Accelerate Advisory Services
2 Confidential
Primary IT Business Driver
Reduce infrastructure OpEx costsby at least 50% within 3 years.
3 Confidential
Initial Observations
IT infrastructure overly complex, proprietary and segmented
Substantial vendor lock-in with limited best-in-class pricing
Low rate of automated workload provisioning
Ineffective, inefficient IT infrastructure organization
4 Confidential
Assessed: People, Process, Technology
Technical architecture including network and storage
Assess readiness of the enabling SDDC technologies
Operating model and organizational structure
Workflow processes and automation
Cost model focusing on CapEx and OpEx savings
Migration plan
5 Confidential
Infrastructure Layer
Control Plane
Application Plane ManagementPlane
Servers Network and Security
Storage
Virtualized Network and Security
Hypervisor Virtualized Storage
Application develop
Application deploy
Application run
PaaS
Monitoring and analytics
Service continuation
Service design
Service automation
ITaaS
Cloud Reference Architecture
IaaS
ITFM
Capacity management
6 Confidential
Architectural Options Considered
Option Attributes
1 Converged vBlock, VCE, “cloud in the box”
2 SDDC Enabled Virtualized Network and Cloud-Aware Storage
3 Full SDDC Virtualized Network and Virtualized Storage
7 Confidential
Considerations by Architectural Option
Existing Target
X Converged X Full SDDCX SDDC Enabled
Transition from multiple heterogeneous facilities to fewer
homogeneous facilities Small number of highly utilized
datacenters with replication/mobility.Underutilized datacenters that are designed for purpose.
1 52 3 4
Datacenter
Reduce vendor lock-in and move to using more industry standard
hardwareMassive over-provisioning of expensive proprietary infrastructure hardware.
Dynamic / right-sized provisioning of industry standard hardware.
1 52 3 4
Hardware
Implement full automation and orchestration at the management
and services plane.Complex set of management and automation tools for managing environment
Streamlined set of tools with heavy automation at service and
infrastructure layer.
1 52 3 4Tools /
Process
Greater use of automation and service-oriented software shifts
hardware-specific engineers to be more service-oriented.
Expensive and poorly scaled labor structure.
Lean silo-less org focused on design (rather than hardware
config / management).
1 52 3 4
Labor
To evolve from applications on proprietary platforms to applications
on generic x86 platforms may require migration projects.
Legacy applications requiring high cost hardware and labor support.
Modern cloud-ready apps only.
1 2 3 54Legacy
Applications
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Cloud COE Organization Enables IT-as-a-Service Transformation
Reduce theComplexity
ImproveCloud Operations
Enable AgileIT Service Delivery
Value
ITaaS
With virtualizationand standardization
With managementcapabilities
With SDDC and Cloud Center of
Excellence
IT Transformation Journey
9 Confidential
SDDC Improves Both Organization and Processes
Area Characteristics
Process &
Tools
Organization
▪ Extensive automation
▪ Automated application management
▪ Management plane focused
▪ Service-oriented
▪ SDDC Architect heavy
▪ Rack-and-stack operations
DATA CENTER OF THE FUTURE – ORGANIZATION
10 Confidential
Financial Analysis — Dramatic Sustainable Cost Reduction
100%
-38%
-54%
-75%
Estimated TCO Reduction by Option2013 vs 2016
Baseline Converged SDDC Enabled SDDC
Option Considered
11 Confidential
Dramatic Sustainable Cost Reduction
17%
12%
28%
37%
6%
Savings Contribution
Servers
Storage
Networking
Labor
Other
SDDC is Projected to Deliver 75% in Steady-State IT Infrastructure Savings*
* Actual results may vary by organization
12 Confidential
Workload Costs Reduce Over Time
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Approximate Costof Amazon/Google
per VM
2014 2015 2016 2017 2018
Cost Per Virtual Machine Will Experience a Significant Drop Over Time with Increased Scale and Maturity of Processes
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Key SDDC Takeaways
1. SDDC is part of the journey to ITaaS
2. Projected cost reductions from SDDC can be dramatic
3. Management plane software is mature
4. Network virtualization software is ready
5. Storage virtualization software ismaturing quickly
6. Cloud COE org transformation is a challenge
7. The time to start is NOW
© 2013 VMware Inc. All rights reserved
Confidential
Thank you!
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