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VMWorld 2009 - Gebelin Getting To Yes!

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Presentation on Developing A comprehensive business case

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  • Section 1 – Define the NeedSection 2 – Define the SolutionSection 3 – Plan the workSection 4 – Layout the business case
  • Cost Savings (server consolidation, operational efficiency)Going Green (reduce power consumption, reduce physical foot print, extend life of Data Center facilities)Operational Agility (decreased proviGreen Grid – data center efficiency standardssioning time, increased availability, lower RTO/RPO)
  • Which came first the chicken of the egg?
  • C02 or Power Reduction objectives

VMWorld 2009 -  Gebelin Getting To Yes! VMWorld 2009 - Gebelin Getting To Yes! Presentation Transcript

  • Getting to Yes!
    Developing a Strategic Business Case for Virtualization
    Chris Gebelin
    MGM MIRAGE
    Executive Director, Enterprise Management
    cgebelin@mgmmirage.com
  • Building the Business Case
     Define the Need
     Define the Solution
     Plan the Work
     Financial Analysis
  • Transformational Goals & Objectives
    $
    Financial Savings
    Going Green
    Operational Agility
    View slide
  • Benchmark Current
    THIS IS NOT EASY!
    Toughest part of the processes for most organizations
    Use Goals & Objectives to define KPIs
    • What is total current cost to deploy a physical server? View slide
    • What is the annual cost to operate a physical server?
    • How long does it take to deploy a physical server?
  • Additional Factors
    P2V Migrations
    • Analyze current server inventory to determine candidates
    • Supports lower operating costs, and reduces future capital costs associated with hardware upgrades/refresh
    Organizational Analysis
    • Organizational capability/resistance to CHANGE
    • Resource capabilities…technical skillset, management & leadership
    • Agility
  • Recap
    Talked with Sr. Management, technical staff, and customers to document the goals &objectives for the program
    Benchmarked current Key Performance Indicators
    Evaluated the impact on our current infrastructure environment
    Defined P2V candidates
    Took a hard look at the impact on our organization & it’s ability to adopt this change
  • Define the Solution
  • The Plan
     What Services to offer
     Layout Technical Model
     Consider Scalability & Manageability
     Engineer the Solution
  • Service Design
    • Service Definition drives design, cost (capital expense & operating expenses), deployment timelines, DR capabilities
    • Leverage Tier Model from Storage Management practice
  • Service Management
    Capacity Management
    • Key to long term success of Virtual Infrastructure is “Unit of Consumption” approach
    Unit of Compute
    Unit or Memory
    Unit of Storage
    Unit of Network
  • Building Blocks
    Key Design Principles
    • Align to Service Requirements… don’t over engineer
    • Use a Modular approach… virtual infrastructure needs to scale easily and rapidly
    • Design fully built-out solution, but deploy what you need
  • Solution Recap
    Using our goals & requirements we defined the service offerings
    Developed a technical solution that:
    Meets our service offering needs
    Is modular is design, so that we can expand capacity in each of the four “Units of Consumption”
    Is designed for full build-out so we know maximum capacity
  • Converting Strategy into Action
     Technical scope of work
     Migrations
     Building & deploy service management
     Organization changes
  • VI Program
    P2V Objective: 400 servers
    P2V Objective: 400 servers
    Period 1 Scope
    Period 2 Scope
    Period 3 Scope
    Virtual Infrastructure
    • Design & Architecture for dual data center VM Infrastructure
    • Implement scalable/modular infrastructure to support 1200 guests
    • Define P2V migration process
    • Analyze operational support model
    • Continue P2V migrations
    • Maximize containment efforts
    • Disaster Recovery Automation
    • Provisioning Automation
    • Complete P2V migrations
    • Scale out two add’l clusters
    • Automate provisioning process
    VM Policy
    P2V Process
    P2V Objective: 400 servers
    • Add two eight node clusters to each site
    • No add’l storage
    • Add two eight node clusters to each site
    • Add 120 TB
    • VI foundation (compute, memory, storage, network)
    • VI management (Virtual Center, Capacity Planning)
  • Migrations
    Build a Process Map
    Partner with Application Owners & Developers
    • Develop a repeatable process for migrations; identify roles & responsibilities
    • Build in fail-safe check points
    • Don’t forget to start decommission process for retired physical server
    • Capture data on success rates, migration times & errors for analysis and process improvement
    • A lot of love out there for servers
    • Demonstrate benefits to them… recovery, clones for testing & dev
    • Don’t forget to Ask the big question… does “not supported” mean it’s never been tested in a virtual environment or are there known compatibility issues?
  • Organizational Strategy
    • Keys to success for managing VI is adopting Service Management approach:
    Policies, Procedures & Service definition
    Update organizational responsibilities
    Management of VI components (hosts, network, storage)
    Guest Provisioning
    Capacity Management
    Funding Strategy for “Unit of Consumption” replenishment
    Overall Service Ownership
  • VI Policy
    Wave 1: Mandatory VM candidates
    Wave 2: Potential VM candidates
    Wave 3: Future VM candidates
    Excluded VM candidates
  • Program Recap
    Worked with Program Manager to define the scope of work and a schedule
    Communicated the Program Plan with other IT departments
    Developed a process for migrations to get everyone on the same page
  • Financial Analysis
     Gather Costs
     Gather & Quantify Benefits
     Calculate ROI, IRR, NPV
     Bring it all together
  • Hard vs. Soft
    • Infrastructure purchases (Cost)
    • FTE additions (Cost) reductions (Benefit)
    • Reducing Server Expenditures (Benefit)
    • Utility Costs (Power & Water)
    • On-Demand service capacity (Benefit)
    • Corporate Environment Initiatives (Benefits)
    • Carbon Footprint reductions (Benefit)
    • Organizational Efficiencies (Benefit)
    • Staff re-assignments (Benefit)
    • Faster server provisioning (Benefit)
    Bottom Line is that there must be a direct cash flow association with hard costs & benefits
  • Program Costs
  • Program Benefits - Hard
  • Program Benefits – Avoidance
  • Cost Benefit Summary
  • Cost Benefit Calculations
  • Per Unit Costing - Virtual
  • Per Unit Costing – Physical
  • Another Look at Cost Justification
    $3,642
    vs
    $11,337
  • Financial Recap
    Identified costs (hard & soft) to implement
    Identify benefits (hard & soft) of a Virtualization program
    Calculate NPV, IRR & ROI
    Per unit/service costs provide a different approach to Cost Benefit Analysis
  • A few closing thoughts
    • A transformation strategy is more than a technology solution!
    • Start with the end in mind.
    • Don’t be afraid of your CFO! The financial case for virtualization is strong
    • Presentation & Templates are posted online
    http://cid-f895f1a99bc3da0f.skydrive.live.com/browse.aspx/VMWorld%202009
    • Go forth & make magic happen!
  • Thank You!