Saving Costs with Virtualization Tips from the Experts Nati Shalom, James Liddle January 14, 2008

Outline Survival of the Innovative Cutting Costs By Improving Return on Technology Assets (ROA) Top 5 priorities and proposed solutions The Impact of Application-Level Virtualization on Cost Savings Implementation Guidelines Practical Steps A Case Study

Survival of the Innovative

Cutting Costs By Improving Return on Technology Assets (ROA)

Top 5 priorities and proposed solutions

The Impact of Application-Level Virtualization on Cost Savings

Implementation Guidelines

Practical Steps

A Case Study

Survival of the Innovative — Doing More with Less "The Chinese use two brush strokes to write the word ' crisis '. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger — but recognize the opportunity." John F. Kennedy

"The Chinese use two brush strokes to write the word ' crisis '. One brush stroke stands for danger; the other for opportunity.

In a crisis, be aware of the danger — but recognize the opportunity."

John F. Kennedy

Cutting Costs By Improving Return on Technology Assets Top 5 Priorities: Server Side Consolidation Linear scalability Outsourcing to cloud infrastructure services (IaaS) Improving application-level efficiency Platform consolidation

Top 5 Priorities:

Server Side Consolidation

Linear scalability

Outsourcing to cloud infrastructure services (IaaS)

Improving application-level efficiency

Platform consolidation

Where we are today? Server Side Consolidation  Application-Level Virtualization ? Linear scalability Outsourcing to cloud infrastructure services (IaaS) Improving application-level efficiency Platform consolidation App X App Y App Z App A App B App X

Server Side Consolidation 

Application-Level Virtualization ?

Linear scalability

Outsourcing to cloud infrastructure services (IaaS)

Improving application-level efficiency

Platform consolidation

RECAP: Top 5 Priority for Reducing ROA Server side consolidation  Linear scalability Outsourcing to cloud infrastructure services (IaaS) Improving application-level efficiency Platform consolidation

Server side consolidation 

Linear scalability

Outsourcing to cloud infrastructure services (IaaS)

Improving application-level efficiency

Platform consolidation

The Cost of Non-Linear Scalability Same middleware license costs for GigaSpaces and alternative Same throughput for GigaSpaces and alternative The alternative hits a “salability wall” at some point “ Every Year, we take the busiest minute of the busiest hour of the busiest day and build capacity on that, we built our systems to (handle that load) and we went above and beyond that. ” Scott Gulbransen, Intuit Spokesman The Scalability Wall

Same middleware license costs for GigaSpaces and alternative

Same throughput for GigaSpaces and alternative

The alternative hits a “salability wall” at some point

Downtime Cost due to Scalability Barriers Downtime cost is estimated at $500K – 1000K by 25% of Forrester’s surveyed companies

Downtime cost is estimated at $500K – 1000K

by 25% of Forrester’s surveyed companies

Reducing the Cost of Scaling Design for Linear scalability Reduces marginal hardware costs per transaction  less servers  reduced cost of ownership On-demand Provisioning Eliminates over-provisioning  less servers  reduced cost of ownership SLA-driven deployment Eliminates downtime  prevents productivity and revenue loss  saves downtime cost

Design for Linear scalability

Reduces marginal hardware costs per transaction  less servers  reduced cost of ownership

On-demand Provisioning

Eliminates over-provisioning  less servers  reduced cost of ownership

SLA-driven deployment

Eliminates downtime  prevents productivity and revenue loss  saves downtime cost

RECAP: Top 5 Priority for Reducing ROA Server side consolidation  Linear scalability  Outsourcing to cloud infrastructure services (IaaS) Improving application-level efficiency Platform consolidation

Server side consolidation 

Linear scalability 

Outsourcing to cloud infrastructure services (IaaS)

Improving application-level efficiency

Platform consolidation

Outsourcing to cloud infrastructure services (IaaS) Outsource testing, disaster recovery, etc. to public cloud Eliminates data center maintenance costs  reduced cost of ownership Prevent lock-in by cloud vendors Shop around for the best cloud services deal  reduced outsourcing costs Scale out to public cloud at peak times Eliminates redundant capacity  less servers  reduced cost of ownership

Outsource testing, disaster recovery, etc. to public cloud

Eliminates data center maintenance costs  reduced cost of ownership

Prevent lock-in by cloud vendors

Shop around for the best cloud services deal  reduced outsourcing costs

Scale out to public cloud at peak times

Eliminates redundant capacity  less servers  reduced cost of ownership

RECAP: Top 5 Priority for Reducing ROA Server side consolidation  Linear scalability  Outsourcing to cloud infrastructure services (IaaS)  Improving application-level efficiency Platform consolidation

Server side consolidation 

Linear scalability 

Outsourcing to cloud infrastructure services (IaaS) 

Improving application-level efficiency

Platform consolidation

Improving application-level efficiency Eliminate middleware bottlenecks Increases throughput  less servers  reduced cost of ownership Reduces latency  less servers  reduced cost of ownership Enable predictable latency under any load  Increase revenue “ A brokerage can lose up to $4M per 1ms of latency” - The Tabb Group “ An additional 500ms delay resulted in -20% traffic” – Google “ An additional 100ms in latency resulted in -1% sales” - Amazon 6x the throughput, with up to 10x less the latency Decreases number of machines by 6x at least!

Eliminate middleware bottlenecks

Increases throughput  less servers  reduced cost of ownership

Reduces latency  less servers  reduced cost of ownership

Enable predictable latency under any load  Increase revenue

“ A brokerage can lose up to $4M per 1ms of latency” - The Tabb Group

“ An additional 500ms delay resulted in -20% traffic” – Google

“ An additional 100ms in latency resulted in -1% sales” - Amazon

Improving application-level efficiency Eliminate middleware bottlenecks Increase throughput  less servers  reduced cost of ownership Reduce-network hops  Reduce latency  less servers  reduced cost of ownership Enable predictable latency under any load  Increase revenue Collocate all application components / services and run in-memory. Achieve linear scalability  reduce marginal hardware costs per transaction  less servers  reduced cost of scaling Develop, test and deploy exactly the same component in a predetermined environment Simplify development, testing, and change cycles  less time spent on integration and testing  reduced dev costs and improved productivity

Eliminate middleware bottlenecks

Increase throughput  less servers  reduced cost of ownership

Reduce-network hops  Reduce latency  less servers  reduced cost of ownership

Enable predictable latency under any load  Increase revenue

Collocate all application components / services and run in-memory.

Achieve linear scalability  reduce marginal hardware costs per transaction  less servers  reduced cost of scaling

Develop, test and deploy exactly the same component in a predetermined environment

Simplify development, testing, and change cycles  less time spent on integration and testing  reduced dev costs and improved productivity

Simpler Development Reduces Costs “ [The biggest value of GigaSpaces is] bang for buck. The cost of building a system (even with existing open source elements) that can replicate single dimensions of what GS can offer will outweigh the cost of using their system. Put this way- with GS, you get an enterprise system- partitioning, replication, failover mechanisms and the like all out of box. “ Ashmit Bhattacharya, VP Engineering, Blackhawk Networks, Dec 2007

“ [The biggest value of GigaSpaces is] bang for buck. The cost of building a system (even with existing open source elements) that can replicate single dimensions of what GS can offer will outweigh the cost of using their system. Put this way- with GS, you get an enterprise system- partitioning, replication, failover mechanisms and the like all out of box. “

Ashmit Bhattacharya, VP Engineering, Blackhawk Networks, Dec 2007

RECAP: Top 5 Priority for Reducing ROA Server side consolidation  Linear scalability  Outsourcing to cloud infrastructure services (IaaS)  Improving application-level efficiency  Platform consolidation

Server side consolidation 

Linear scalability 

Outsourcing to cloud infrastructure services (IaaS) 

Improving application-level efficiency 

Platform consolidation

Platform consolidation All middleware functionality in one product Reduces # of software licenses  reduced capital expenditure, integration costs Use ONE product for messaging, data and parallel processing, Leverage open-source and commodity products, e.g. Jetty, Glassfish, Spring Use of In Memory Data Grid Reduces the need for high-end database  cheaper hardware and software  reduced cost of ownership Flexible licensing model Offers subscription / pay-per-use licensing  reduced upfront investment

All middleware functionality in one product

Reduces # of software licenses  reduced capital expenditure, integration costs

Use ONE product for messaging, data and parallel processing,

Leverage open-source and commodity products, e.g. Jetty, Glassfish, Spring

Use of In Memory Data Grid

Reduces the need for high-end database  cheaper hardware and software  reduced cost of ownership

Flexible licensing model

Offers subscription / pay-per-use licensing  reduced upfront investment

Implementation Guidelines Avoid radical change, enabling a gradual process Choose an architecture supporting linear scalability Minimize vendor lock-in Enable application portability and freedom of choice of: cloud provider, web container, programming language, database Minimize API lock in: Use of standards API Abstractions – when standards are not available Future proof your application Don’t make decision today, but be ready to make one without major effort Avoid long-term commitment – choose the right licensing model

Avoid radical change, enabling a gradual process

Choose an architecture supporting linear scalability

Minimize vendor lock-in

Enable application portability and freedom of choice of:

cloud provider, web container, programming language, database

Minimize API lock in:

Use of standards

API Abstractions – when standards are not available

Future proof your application

Don’t make decision today, but be ready to make one without major effort

Avoid long-term commitment – choose the right licensing model

Practical Gradual Steps for Increasing ROA Intrusiveness Time to value Web Tier Business Logic Messaging Data tier Architecture On-demand provisioning vs. static, peak-based Parallel Processing vs. client-server Partitioned virtualized servers vs . central server Partitioned virtualized servers vs. central server Saving Examples 7x machines (10 peak – 3 avg) 90x machines (100 peak, 10 avg) 6x machines (TBA/SBA Bench.) 6x machines (TBA/SBA Bench) Additional Benefits - Self-healing - Basic caching - Auto deployment -Commodity HW Simple dev and testing -Commodity HW Low latency (in-memory) Fast& Consistent response time. Commodity db vs. high-end

Fast& Consistent response time.

Commodity db vs. high-end

Large UK Telco Saving Costs through Application-level Virtualization Background: Telco was announced as UK carrier for Apples revolutionary iPhone The US iPhone launch with AT&T provided the Telco with: High availability imperative Scalability worries Peak usage capacity worries

Background:

Telco was announced as UK carrier for Apples revolutionary iPhone

The US iPhone launch with AT&T provided the Telco with:

High availability imperative

Scalability worries

Peak usage capacity worries

Large UK Telco: Requirements Issues Current Application server + stack Could not scale up and out in real-time Stability and reliability of Application server + stack Worked ‘stateless’, not ‘stateful’ Load Had to be able to deal with high peak volumes even if could not process all requests Downstream systems Had to be able to deal with downstream systems being offline Costs Alternative solution had could not be a “kitchen sink” set of licensing costs Time Only 12 weeks to implement, test and go live with system

Issues

Current Application server + stack

Could not scale up and out in real-time

Stability and reliability of Application server + stack

Worked ‘stateless’, not ‘stateful’

Load

Had to be able to deal with high peak volumes even if could not process all requests

Downstream systems

Had to be able to deal with downstream systems being offline

Costs

Alternative solution had could not be a “kitchen sink” set of licensing costs

Time

Only 12 weeks to implement, test and go live with system

Original System

Large UK Telco: Key Results New architecture put into production within 12 weeks ! Logic, Data, Messaging virtualized Enabled scaling up and out, real-time Reduced the cost of peak load Reduced need to buy for peak loads: gives confidence to be able to if required License costs for one product rather than several Reduced overall software costs Reduced maintenance and development costs Leveraged existing skill sets – JEE Migration made easy Fully automated deployment and self healing

New architecture put into production within 12 weeks !

Logic, Data, Messaging virtualized

Enabled scaling up and out, real-time

Reduced the cost of peak load

Reduced need to buy for peak loads: gives confidence to be able to if required

License costs for one product rather than several

Reduced overall software costs

Reduced maintenance and development costs

Leveraged existing skill sets – JEE Migration made easy

Fully automated deployment and self healing

GigaSpaces enabled System

Customers Using the Cloud to Reduce Costs Large UK Telco Company Deploying discrete stand alone services in the Cloud More cost effective; easier to outsource; enabled by secure service interface Large Global Telco Company Deploying carrier grade VOIP service to the Cloud New SaaS business model; New revenue stream Global Media Company Using the Cloud to process events for innovative new TV programme Cloud makes concept cost effective Financial Services Start-up Using the Cloud for a trading exchange Cloud lowers barrier to entry and makes proposition possible Online Gaming Company Using the Cloud for testing and scaling Able to test large scale user support early / easy on cloud, hard otherwise

Large UK Telco Company

Deploying discrete stand alone services in the Cloud

More cost effective; easier to outsource; enabled by secure service interface

Large Global Telco Company

Deploying carrier grade VOIP service to the Cloud

New SaaS business model; New revenue stream

Global Media Company

Using the Cloud to process events for innovative new TV programme

Cloud makes concept cost effective

Financial Services Start-up

Using the Cloud for a trading exchange

Cloud lowers barrier to entry and makes proposition possible

Online Gaming Company

Using the Cloud for testing and scaling

Able to test large scale user support early / easy on cloud, hard otherwise

Summary Server Side Consolidation was the first step towards complete virtualization Next step: Application Level Virtualization Holds a large potential for cost saving The simplest step of moving to on-demand provisioning can lead to 7x cost savings. The Cloud adds another dimension of flexibility Can be made simple by optimizing gradually

Server Side Consolidation was the first step towards complete virtualization

Next step: Application Level Virtualization

Holds a large potential for cost saving

The simplest step of moving to on-demand provisioning can lead to 7x cost savings.

The Cloud adds another dimension of flexibility

Can be made simple by optimizing gradually

What’s Next? Follow our latest tutorial about transitioning your web application from static provisioning to on-demand provisioning at http://www.gigaspaces.com/wiki/display/XAP66/GigaSpaces+for+Web+Applications You are encouraged to see how application virtualization works on Amazon EC2: Visit www.gigaspaces.com/cloud For a free trial, email [email_address] For free consultation (5 hours) on the best way to save costs in your organization contact [email_address]

Follow our latest tutorial about transitioning your web application from static provisioning to on-demand provisioning at http://www.gigaspaces.com/wiki/display/XAP66/GigaSpaces+for+Web+Applications

You are encouraged to see how application virtualization works on Amazon EC2:

Visit www.gigaspaces.com/cloud

For a free trial, email [email_address]

For free consultation (5 hours) on the best way to save costs in your organization contact [email_address]

Thank You