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!

    1. 1. Getting to Yes!<br />Developing a Strategic Business Case for Virtualization <br />Chris Gebelin<br />MGM MIRAGE<br />Executive Director, Enterprise Management<br />cgebelin@mgmmirage.com<br />
    2. 2. Building the Business Case<br /> Define the Need<br /> Define the Solution<br /> Plan the Work<br /> Financial Analysis<br />
    3. 3. Transformational Goals & Objectives<br />$<br />Financial Savings<br />Going Green<br />Operational Agility<br />
    4. 4. Benchmark Current<br />THIS IS NOT EASY!<br />Toughest part of the processes for most organizations<br />Use Goals & Objectives to define KPIs<br /><ul><li>What is total current cost to deploy a physical server?
    5. 5. What is the annual cost to operate a physical server?
    6. 6. How long does it take to deploy a physical server?</li></li></ul><li>Additional Factors<br />P2V Migrations<br /><ul><li>Analyze current server inventory to determine candidates
    7. 7. Supports lower operating costs, and reduces future capital costs associated with hardware upgrades/refresh</li></ul>Organizational Analysis<br /><ul><li>Organizational capability/resistance to CHANGE
    8. 8. Resource capabilities…technical skillset, management & leadership
    9. 9. Agility</li></li></ul><li>Recap<br />Talked with Sr. Management, technical staff, and customers to document the goals &objectives for the program<br />Benchmarked current Key Performance Indicators<br />Evaluated the impact on our current infrastructure environment<br />Defined P2V candidates<br />Took a hard look at the impact on our organization & it’s ability to adopt this change<br />
    10. 10. Define the Solution<br />
    11. 11. The Plan<br /> What Services to offer<br /> Layout Technical Model<br /> Consider Scalability & Manageability<br /> Engineer the Solution<br />
    12. 12. Service Design<br /><ul><li>Service Definition drives design, cost (capital expense & operating expenses), deployment timelines, DR capabilities
    13. 13. Leverage Tier Model from Storage Management practice</li></li></ul><li>Service Management<br />Capacity Management<br /><ul><li>Key to long term success of Virtual Infrastructure is “Unit of Consumption” approach</li></ul>Unit of Compute<br />Unit or Memory<br />Unit of Storage<br />Unit of Network <br />
    14. 14. Building Blocks<br />Key Design Principles<br /><ul><li>Align to Service Requirements… don’t over engineer
    15. 15. Use a Modular approach… virtual infrastructure needs to scale easily and rapidly
    16. 16. Design fully built-out solution, but deploy what you need </li></li></ul><li>Solution Recap<br />Using our goals & requirements we defined the service offerings<br />Developed a technical solution that:<br />Meets our service offering needs<br />Is modular is design, so that we can expand capacity in each of the four “Units of Consumption”<br />Is designed for full build-out so we know maximum capacity<br />
    17. 17. Converting Strategy into Action<br /> Technical scope of work<br /> Migrations<br /> Building & deploy service management<br /> Organization changes<br />
    18. 18. VI Program<br />P2V Objective: 400 servers<br />P2V Objective: 400 servers<br />Period 1 Scope<br />Period 2 Scope<br />Period 3 Scope<br />Virtual Infrastructure<br /><ul><li>Design & Architecture for dual data center VM Infrastructure
    19. 19. Implement scalable/modular infrastructure to support 1200 guests
    20. 20. Define P2V migration process
    21. 21. Analyze operational support model
    22. 22. Continue P2V migrations
    23. 23. Maximize containment efforts
    24. 24. Disaster Recovery Automation
    25. 25. Provisioning Automation
    26. 26. Complete P2V migrations
    27. 27. Scale out two add’l clusters
    28. 28. Automate provisioning process</li></ul>VM Policy<br />P2V Process<br />P2V Objective: 400 servers<br /><ul><li>Add two eight node clusters to each site
    29. 29. No add’l storage
    30. 30. Add two eight node clusters to each site
    31. 31. Add 120 TB
    32. 32. VI foundation (compute, memory, storage, network)
    33. 33. VI management (Virtual Center, Capacity Planning)</li></li></ul><li>Migrations<br />Build a Process Map<br />Partner with Application Owners & Developers<br /><ul><li>Develop a repeatable process for migrations; identify roles & responsibilities
    34. 34. Build in fail-safe check points
    35. 35. Don’t forget to start decommission process for retired physical server
    36. 36. Capture data on success rates, migration times & errors for analysis and process improvement
    37. 37. A lot of love out there for servers
    38. 38. Demonstrate benefits to them… recovery, clones for testing & dev
    39. 39. 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?</li></li></ul><li>Organizational Strategy<br /><ul><li>Keys to success for managing VI is adopting Service Management approach:</li></ul>Policies, Procedures & Service definition<br />Update organizational responsibilities<br />Management of VI components (hosts, network, storage)<br />Guest Provisioning<br />Capacity Management<br />Funding Strategy for “Unit of Consumption” replenishment<br />Overall Service Ownership<br />
    40. 40. VI Policy<br />Wave 1: Mandatory VM candidates<br />Wave 2: Potential VM candidates<br />Wave 3: Future VM candidates<br />Excluded VM candidates<br />
    41. 41. Program Recap<br />Worked with Program Manager to define the scope of work and a schedule<br />Communicated the Program Plan with other IT departments <br />Developed a process for migrations to get everyone on the same page<br />
    42. 42. Financial Analysis<br /> Gather Costs<br /> Gather & Quantify Benefits<br /> Calculate ROI, IRR, NPV<br /> Bring it all together<br />
    43. 43. Hard vs. Soft<br /><ul><li>Infrastructure purchases (Cost)
    44. 44. FTE additions (Cost) reductions (Benefit)
    45. 45. Reducing Server Expenditures (Benefit)
    46. 46. Utility Costs (Power & Water)
    47. 47. On-Demand service capacity (Benefit)
    48. 48. Corporate Environment Initiatives (Benefits)
    49. 49. Carbon Footprint reductions (Benefit)
    50. 50. Organizational Efficiencies (Benefit)
    51. 51. Staff re-assignments (Benefit)
    52. 52. Faster server provisioning (Benefit)</li></ul>Bottom Line is that there must be a direct cash flow association with hard costs & benefits<br />
    53. 53. Program Costs<br />
    54. 54. Program Benefits - Hard<br />
    55. 55. Program Benefits – Avoidance<br />
    56. 56. Cost Benefit Summary<br />
    57. 57. Cost Benefit Calculations<br />
    58. 58. Per Unit Costing - Virtual<br />
    59. 59. Per Unit Costing – Physical<br />
    60. 60. Another Look at Cost Justification<br />$3,642<br />vs<br />$11,337<br />
    61. 61. Financial Recap<br />Identified costs (hard & soft) to implement <br />Identify benefits (hard & soft) of a Virtualization program<br />Calculate NPV, IRR & ROI<br />Per unit/service costs provide a different approach to Cost Benefit Analysis<br />
    62. 62. A few closing thoughts<br /><ul><li>A transformation strategy is more than a technology solution!
    63. 63. Start with the end in mind.
    64. 64. Don’t be afraid of your CFO! The financial case for virtualization is strong
    65. 65. Presentation & Templates are posted online</li></ul>http://cid-f895f1a99bc3da0f.skydrive.live.com/browse.aspx/VMWorld%202009<br /><ul><li>Go forth & make magic happen!</li></li></ul><li>Thank You!<br />

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