Savig cost using application level virtualization

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 — 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

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

Where we are today?
Server Side Consolidation 
Application-Level Virtualization ?
Linear scalability
App X App Y App Z App A App B App X

RECAP: Top 5 Priority for Reducing ROA
Server side consolidation 
Linear scalability

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

Downtime Cost due to Scalability Barriers
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

Linear scalability 

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

Outsourcing to cloud infrastructure services (IaaS) 

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
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

Outsourcing to cloud infrastructure services (IaaS) 
Improving application-level efficiency 

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

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

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

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

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

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

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

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]

Thank You

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Savig cost using application level virtualization

by Nati Shalom on Jan 21, 2009

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