Virtualization Business Case

Michael Grollman & Craig Cook, TopLine Strategies 5/21/09 Virtualization Business Case: How to Stamp Out 80% of Utility Expense & More

IT infrastructure & cost challenges today
Virtualization as a potent change agent
Case studies, hard numbers
Good news on the performance & security
More real world stories on the cost front
Questions & next steps
Agenda

ROOM FOR IMPROVEMENT Room for Improvement? State of the Infrastructure Nation

Old model is challenging! Old Model: Traditional x86 Architecture
Single OS image per machine
Software and hardware tightly coupled
Multiple applications often conflict
Underutilized resources
IT Challenges Today

State of US Infrastructure Today Source: IDC

Virtualization -- Mainstream in Enterprises Today Enterprises that do not leverage virtualization technologies will spend 25 percent more annually for hardware, software, labor and space for Intel servers More than 50 percent of all virtual servers are running production-level applications , including the most business critical workloads Virtualization adoption in the SMB space is expected to double in the next 2 years. Server virtualization technology has entered mainstream data centers…

Comparing Consolidation Options

Why make a change? The 5 +1 stages to dramatic savings and performance with virtualization

Typically going to save about 50% on overall hardware costs
Stop buying so many physical servers
Stop paying maintenance fees on so many boxes
Buy capacity as needed (MHz, Mb, GB, etc.)
Why Change Matters Now  HW Cost Savings

Reduced effort around provisioning and de-provisioning
Drastically reduced Datacenter Space, Power & Cooling requirements and costs
>80% reduction in Power and HVAC requirements
Why Change Matters Now  Operational Savings

Ability to deploy desktops, servers, storage & networks in minutes
Temporary systems can also dramatically improve stability and the QA process
The ability to cost effectively provide dev/test/stage/etc can result in a distinct competitive advantage
Why Change Matters Now  Time to Market

Creating highly available systems means improved application availability
Being able to monitor, manage and proactively mitigate systems issues is critical to availability
Different workloads can now be considered – it’s proven. Portability vs. small amount of overhead
Why Change Matters Now  Systems Availability

Why Change Matters Now 
Evolution of the Business Case for Virtualization
Overall availability of your infrastructure will improve if you leverage Virtualization
Right-sized, cost-effective business continuity
Right-sized, cost-effective disaster recovery
Healing & roll-back capabilities
Data protection & compliance
IT Resilience

Evolution of the Business Case for Virtualization
This is the sum of all the other benefits
Typically organizations will start with server virtualization & low hanging fruit
Move to storage, network, desktop and application virtualization
The end result is a shift toward dynamic computing that enables the business to do more
… the final step Business Agility

Detailed Case Study Let’s Get Down to Real World Hard Numbers and Cases

Regional Utility Case Study Virtualize 1,000 Servers Over 1.5 Years BEFORE VM Process AFTER VM Process
Servers
1,000
50
Storage
Direct attach
Tiered SAN and NAS
Network
3000 cables/ports
300 cables/ports
Facilities
200 racks
10 racks
400 power whips
20 power whips

Decrease Capital Investment Before Type Quantity Price
1 CPU
300
$4,000
2 CPU
500
$6,500
4 CPU
200
$14,000
8 CPU
0
$30,000
After Type Quantity Price
1 CPU
0
$4,000
2 CPU
38
$10,000
4 CPU
38
$23,000
8 CPU
4
$45,000
Server Hardware Savings Year 0 Year 1 Year 2 Year 3 Total $(1,434,000)
$2,416,667
$2,416,667
$2,416,667
$5,816,000

Benefits of Consolidation + + +
Fewer Servers to Manage
Less Power required
Less Space needed
Less Cabling required
3-Year Cost Savings / Workload
Server Hardware
$5,816
Power Costs
$759
Cooling Costs
$949
Data Center Real Estate
$431
Network Infrastructure
$296
TOTAL
$8,251

Datacenters are huge CO2 factories
1 full rack of blade servers = 20-25 kW = peak demand of 30 homes
Every virtualized workload saves…
4 tons of CO2 emissions
Equivalent to 1.5 cars off road
Un-utilized server capacity in the industry equates to:
$140 billion, 3 year supply, more than 20 million servers (IDC)
80 million tons of CO2 per year, more than half of ALL countries in South America produce
The Environmental Impact of Right-sizing IT

Surprisingly Potent Enough about consolidation. What about performance and management?

Beyond Consolidation: Provisioning Instant Provisioning

Provisioning time reduced to minutes, not days to weeks!
Comparison of Provisioning Effort Configure hardware Install OS Configure OS & Tools Assign IP Addr. Configure Network Test Apps Physical Virtual 20-40 hrs of work 4-6 week lead time Deploy from Template Power on VM <1 hr of work 1-2 days lead time

Dynamically adjust datacenter to fit business priorities
Automate capacity management
Foundation to many Cloud computing systems
Beyond Consolidation: Automation

More evidence More Evidence Got any more examples? Did mid-sized firms also see these savings?

McHenry Savings Bank Small, full-service financial institution Challenge Results VMware Solution “ We’ve added more servers into our VMware infrastructure than we thought we’d be able to – and we still have room to add more.” Derek Niedermayer, Network Support Supervisor
12 new servers required to support rich software applications the bank offers customers (in addition to 30+ already running)
2-person IT department, supporting 110 staffers, would be challenged to manage additional server requirements
Saved $68k in hardware acquisition costs
Reduced average new server deployment from several hours to 45 minutes
Cleared more than half a computer rack by taking old servers offline
VI3 Enterprise, featuring:
ESX Server 3 with VMFS
VMotion, Virtual Center 2, High Availability
Distributed Resource Scheduler

Los Angeles Valley Community College The “everyday” disasters you should consider Challenge Results VMware Solution “ With limited budgets and demanding IT requirements, VMware is my shortcut to building a more dynamic datacenter.” Jorge Mata, IT Manager
#1 Priority: Replicate data and provide continuous uptime
Arson damages same campus building…twice
City infrastructure work creates risk for network damage
Rolling power outages and brown-outs
Earthquakes
Limited budgets to ensure uptime with these risks
Able to deliver uninterrupted service during power fluctuations
Rerouted access to datacenter off campus during construction
With limited budget, able to serve up VMs for department needs with no new hardware
Peace of mind: agility to survive a true disaster
5 licenses of VI 3 Enterprise (90% virtual environment)
iSCSI SAN
Replicated datacenter in downtown city offices
Using VMware’s VMotion technology to move uptime servers dynamically if needed.

Genilogix Inc. 500 IT Company Challenge Results VMware Solution “ VMotion with High Availability is incredibly beneficial. If a server goes down…the users don’t even realize it, so their application availability goes up dramatically.” Nate Stuyvesant, CTO and Sr. Partner
Create flexible IT infrastructure to avoid upfront costs
Improve disaster recovery options
Reduce maintenance windows
Allow for staging of test environments
Reduced power & cooling costs by two-thirds
Reduced application development time by 18% and server deployment time by 66%
Enabled anytime backup without performance degradation
Eliminated server maintenance windows by using VMotion
VI3 Enterprise, featuring:
ESX Server 3 with VMFS
VMotion, VirtualCenter, VMware High Availability (HA), VMware Consolidated Backup
VMware Lab Manager

Next steps Rad. Now who can help give our project a quick start?

Project Management and Engineering
IT Consulting
IT Human Resource Solutions
TopLine Strategies Proud Partners with:

Virtualization Readiness Assessment
VDI Proof of Concept and Business Case Creation
Technical Proof of Concept and financial analysis
Virtualization Quickstart
Virtual Infrastructure Healthcheck
Virtual Infrastructure Jumpstart
P2V Conversions (for VMWare, Xen, Hyper-V
Consolidated Backup Planning & Implementation
Base Deployment Architectural review
VMware ESX Server Custom Installations Includes HA, DRS, VMotion, network & storage connectivity
Business Continuity & Disaster Recovery Plan Development
Internal Cloud Strategy Development
TopLine’s Virtualization Packages

TopLine’s Client Focus
Financial Services
Insurance and Health Management
Firms with complex channels (agents, brokers, franchisees, or partners)

Thank you! Pdf Copy of presentation? ROI/TCO Analysis Survey? Email: [email_address] or [email_address] Questions?

http://www.slideshare.net	38
http://www.vmworld.com	1
http://www.linkedin.com	1

Virtualization Business Case

by TopLine Strategies

Accessibility

Categories

Upload Details

Usage Rights

3 Embeds 40

Statistics

Virtualization Business Case Presentation Transcript