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
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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
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
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
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
25% energy reduction
Host desktop PCs in the datacenter
Use thin clients, double refresh cycle
Reduce storage for similar desktop images
70% energy reduction
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
Introduction & Webinar Logistics
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
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
Introduction & Webinar Logistics
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
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
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
Agenda
Introduction & Webinar Logistics
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
Resources & Next Steps
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