VMworld 2013 Aivars Apsite, Metro Health Ridwan Huq, VMware Learn more about VMworld and register at http://www.vmworld.com/index.jspa?src=socmed-vmworld-slideshare

1. Quantifying the Business Value of
VMware Horizon View
Aivars Apsite, Metro Health
Ridwan Huq, VMware
EUC5211
#EUC5211

2. 2
Abstract
A VMware View Virtual Desktop solution can provide significant
cost savings and IT manageability improvements by consolidating
a vast number of supported end points onto a centralized service
providing platform.
According to Enterprise Management Associates (EMA) primary research,
71% of organizations that have implemented desktop virtualization have
seen real, measurable costs savings with roughly a 60% reduction in
hardware, software, and administration costs. When selecting a VMware
View solution, organizations must understand the total infrastructure costs
to make the right investment decision.
This session will cover the infrastructure costs and the tangible business
benefits of the VMware View Desktop Virtualization solution, and help you
understand how you can lower your total cost of ownership by up to 50%.

3. 3
Market Dynamics

4. 4
 Device simplification and/or consolidation
 Speed new deployments, new apps, new
employee provisioning
Desktop infrastructure simplification
CapEx reduction
 Simplified desk-side support
 Simplified lifecycle management
 Power cost
OpEx Reduction
 Windows 7 migrationEase and speed of OS/app deployments
 Control assets outside corporate
perimeter (“off-shoring”)
 Device, data security and control
Security
New Initiatives  BYOD
Primary Drivers for Hosted Virtual Desktop Adoption

5. 5
CAPEX OPEX TCO
The TCO Equation

6. 6
What is the average acquisition cost?
Cost of Enterprise Desktop Management – Capital Expense

7. 7
Source: Gartner - Recommended Desktop Configuration, 2012 #G00229871
Recommended Desktop Configurations, 1H2012
Intel-Based Desktop Configurations
Component Mainstream User Power User
Form Factor (chassis) Small form factor (SFF) Mini tower (MT)
Processor Core i5-3550 (four core)
Core i5-3570 (four core) or Core i7-
3770 (four core, eight thread)
Chipset Intel Q77 Intel Q77
Memory 4GB DDR3 4GB to 8GB DDR3
Hard Drive
120GB Serial Advanced Technology
Attachment (SATA) 500GB or more SATA
Optical Drive DVD-ROM (optional) DVD-ROM (optional)
Graphics Integrated (PCI) Express 512Mb
Display Size 21.5-inch-wide flat-panel display (FPD) 21.5-inch-wide FPD
Display Resolution 1600 x 900 1600 x 900
USB Ports Four rear, two front Four rear, two front
Network Interface Card (NIC) Integrated 10/100/1,000 Integrated 10/100/1,000
Manageability
Desktop and mobile Architecture for
System Hardware (DASH)-compliant
(vPro) DASH-compliant (vPro)
Price $700 to $1,100 $1,000 to $2,500
Warranty Three years, on-site Three years, on-site
Gartner Recommended Desktop Configuration

8. 8
Manage
Retire
Secure
Deploy
Test
Image
Procure
1
1
1
1
1
 Hardware/SW configuration
 User administration (Move/Add/Change)
 Desktop imaging/reimaging
 Patching, upgrading OS/applications
 Application testing & provisioning
 Packaging and deploying applications
 Access/data security management
 Help desk support
Cost of Enterprise Desktop Management –
Operational Expense

9. 9
Administration
 Average burdened salary: $70K
 Admin User ratio: 1: 200
 Cost per user: $350
Install/Config/Deploy
 Time spent per user (min): 160
 Cost per user: $90
IT Cost (Helpdesk)
 Helpdesk (190min/user/yr): $105
 Desk side (60min/user/yr): $75
 Total Cost per user: $180
Annual cost per user: $350 + $90 + $180 = $620
Source: IDC – Quantifying Business Value of VMware View, June 2011
Cost of Enterprise Desktop Management –
Operational Expense

10. 10
Indirect Cost
 Downtime cost (loss time 5.9 hr) :$145
 Helpdesk cost (loss time – 5.3hr) :$130
 Security cost (loss time – 1.8hr) :$45
 Start-up cost (2 hr, 4 yr refresh) :$20
Annual productivity cost: $145+$130+$45+$20 = $340
Source: IDC – Quantifying Business Value of VMware View, June 2011
Cost of Enterprise Desktop Management – Indirect Cost

11. 11
CapEx OpEx Indirect Cost First Year Cost
Device
$1000
IT Support
$620
Productivity Cost
$340
$1960
Source: IDC – Quantifying Business Value of VMware View, June 2011
Enterprise Desktop – Cost of Acquisition & 1 Year Management

12. 12
$1 spent on Hardware, requires $3.8 more to support it!
Enterprise Desktop – Total Cost of Ownership
Average Useful Life: 4 years
Operational Expense : $2480 (over useful life of 4 years)
Capital Expense : $1000 (one time)
Productivity Cost : $1360 (over useful life of 4 years)
Total Cost of Ownership : $4840 (over useful life of 4 years)

13. 13
Storage
Server
Microsoft VDA
License
Thin/Zero
Client
VMwareView
License
Repurposed
PC
Switches
Data Center
VMware View – Infrastructure Components

14. 14
Storage
Server
Dual CPU/Quad Core
Average VM per core = 10
Server cost per VM ~ $75
User Type
% of
Users VM Density
Power User 10% 6
Knowledge
Worker 60% 10
Task
Worker 30% 12
Avg Image Size = 20GB
User data = 5GB
Linked Clone = 70%
Storage cost per VM ~ $75
User Type IOPS R/W ratio
Power User 15 80%
Knowledge
Worker 10 80%
Task
Worker 8 80%
VMware View – Infrastructure Cost per User

15. 15
VMware View Premier (List) : $250
VMware View Enterprise (List) : $150
If under Software Assurance : $0
Microsoft VDA License (List) : $100
If purchased : $250
Repurpose existing PC : $25
Microsoft
VDA License
Thin/Zero
Client
View
License
VMware View – Infrastructure Cost per User

16. 16
Data Center Colocation (est) : $10-$25
7sq.ft/rack x $300~$700/sq.ft
Network Switch (48 Ports) : $10-$15
Data Center
Switches
VMware View – Infrastructure Cost per User

17. 17
IT Cost (Administration)
 Average Salary: $70K
 Admin User ratio: 1: 400
 Cost per user: $175
IT Cost (Install/Config/Deploy)
 Time spent per user (min): 50
 Cost per user: $25
IT Cost (Helpdesk)
 Helpdesk: (141min/yr) $80
 Desk side: (8 min/yr) $10
 Total cost per user: $90
Annual cost per user: $175+$25+$90 = $290
Source: IDC – Quantifying Business Value of VMware View, June 2011
VMware View – Operational Expense

18. 18
Indirect Cost
Productivity cost: $45+$30+$30+$5 = $110
Source: IDC – Quantifying Business Value of VMware View, June 2011
VMware View – Indirect Cost
 Downtime cost (loss time 1.9 hr) :$45
 Helpdesk cost (loss time – 1.3hr) :$30
 Security cost (loss time – 1.2hr) :$30
 Start-up cost (2 hr, 4 yr refresh) :$5

19. 19
Physical/Virtual Environment
Endpoint Operations 52 Wks, 5 Days, 10 Hrs
Data Center Operations 52 Wks, 7 Days, 24 Hrs
Thick Client Power Draw (average) 0.17 KW
Thin Client Power Draw (average) 0.015 KW
Data Center Power Draw (Server/Storage) (average) 0.75 KW
Cooling Load Factor 80%
Distributed Power Management Optimization 90%
Physical vs. Virtual Power Consumption
Physical Environment (Average Annual Cost Per User) $75
Virtual Environment (Average Annual Cost Per User) $25
Average Electricity Cost Savings (per user/year) $50
Savings in Power Consumption

20. 20
CAPEX OPEX Indirect Cost
Total Cost
of Ownership
HW/Software
$800
IT Support
$290
Productivity Cost
$110
$1200
Source: IDC – Quantifying Business Value of VMware View, June 2011
VMware View – Cost of Acquisition & 1 Year Management

21. 21
$1 spent on Hardware, requires $1.3 to support it
VMware View – Total Cost of Ownership
Average Useful Life: 4 years
Operational Expense : $1160 (over useful life of 4 years)
Capital Expense : $1250 (includes VDA, View S&S license )
Productivity Cost : $440 (over useful life of 4 years)
Total Cost of Ownership : $2850 (over useful life of 4 years)

22. 22
Source: IDC – Quantifying Business Value of VMware View, August 2011
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Traditional PC With VMware View
$1,000
$250
$1,400
$700
$360
$100
$720
$360
$1,360
$440
$75
$75
$850
Device IT - Admin IT - Install IT - HelpDesk Downtime Server Storage Software
$4880
$2850
Save $500/PC annually
4 Year TCO Comparison (Traditional Desktop vs. VMware View)

23. 23
Cost Savings on Windows 7 Migration
 Desktop Environment
 Number of desktops : 5000
 OS migration : Windows XP to Windows 7
 Average cost of new PC : $1000
 Application Environment
 Total number of packaged application : 200
 Total number of custom application : 50
 Average number applications per PC : 20

24. 24
Manage
Manage
50% saving
Install
OS/App/Drivers
Audit/Assess
Audit/Assess
~35% saving
Install
OS/App/Drivers
60% Saving
1
1
1
1
1
Impact of VMware View on Windows 7 Migration

25. © 2013 VMware Inc. All rights reserved
VMware Horizon View
Building the Business Case:
Desktop Virtualization for a Hospital
Aivars Apsite
Technology Strategist
Metro Health

26. 26
Agenda
 ID the Business Cases for our Hospital
 Calculate the IT Savings
 Plan the Next Steps

27. 27
Why desktop virtualization?
It improves the efficiency
of clinical workflows.
Quantify your vision:
“Enable fast roaming access to a user’s active back end session in 10 seconds or less.”
There is one thing stronger than all the armies in the
world; and that is an idea whose time has come.
Isaac Newton
This will impact the IT budget, but it will save money for your hospital
Define Vision – Desktops and Endpoints

28. 28
• Reconnect to active desktop in 10 seconds or less
• To a FULL Windows desktop
• Access to ALL opened applications simultaneously
The most dangerous kind of waste is
the waste we do not recognize.
~Shigeo Shingo
Roaming with Fast Reconnects

29. 29
Roaming with fast reconnects to a full Windows OS desktop – 10 seconds or less
Being rich is having money;
being wealthy is having time.
Margaret Bonnano
Time is in seconds Hours Annual
Full PC login
Reconnect
time
Time
savings
Time
saved/day Hours Per Person Annual
TOTAL
recognized
SAVINGS
60 10 50 3600
Working
Days/year
Time
saved/yr Cost Savings
On-site
Staff
Counts
TOTAL
Projected
SAVINGS 25%
35%
# reconnects
per day User type Avg Salary
Salary
+ benefits
Hourly
rate
60 Employed Physician $160,000 $216,000 $104 0.83 209 174.17 $18,086.54 130 $2,351,250.00 $587,812.50
20 Consulting Physician $200,000 $270,000 $130 0.28 209 58.06 $7,536.06 40 $301,442.31 $75,360.58
60 clinician $42,000 $56,700 $27 0.83 227 189.17 $5,156.61 800 $4,125,288.46 $1,031,322.12
20 Professional $65,000 $87,750 $42 0.28 200 55.56 $2,343.75 400 $937,500.00 $234,375.00
15 Support $33,000 $44,550 $21 0.21 235 48.96 $1,048.60 300 $314,580.83 $78,645.21
1670 $8,030,061.60 $2,007,515.40
Time Savings with Roaming

30. 30
• Imaging access from anywhere
Access images from anywhere, even home.
Savings -
• Dragon dictation access from anywhere
Dictate from any device with a USB 2.0 port, even home.
Savings -
$821,621
$786,258
195 physicians
8 images/day
7 minutes of travel
110 physicians
19 images/day
5 minutes of travel
Metro Health Specific Time Savings

31. 31
Agenda
 ID the Business Cases for our Hospital
 Calculate the IT Savings
 Plan the Next Steps

32. 32
Jan
2007
Oct
2007
Feb
2010
MetroAnywhere
Development
Begins
MetroAnywhere
Go Live when
Metro Health
Moves into its
New hospital
MetroAnywhere
With TCX
Video playback
USB support
v1 v2 Feb
2011
v3Oct
2011
Cisco
VXI
Purchase
MetroView
MetroAnywhere
VMware View
V4.6
v4Dec
2012
MetroView
VMware View
V5.1
1100 PCs
900 Wyse Thins
1400 PCs
1100 Wyse Thins
300 Wyse Laptops
1300 PCs
1600 Cisco Zeros
310 Wyse Laptops
$1,610/client
$1,140/client
$588/client
Desktop Virtualization Timeline

33. 33
PCs versus Pooled Sessions
3000 PCs at $590/PC -
1400 Thin/ 1400 PCs with pooled sessions -
$1,770,000
Zero clients versus local full Windows OS clients
Local desktop imaging of a PC is about 2 hours
A thin client image is about 30 minutes
A Zero Client is about 5 minutes
Annualized Savings - $11,601
$70,502
break/fix – 7 devices/week
2500 device refresh
$3,420,000
$1,765,000
In 2011
Today2500 Zero/ 500 PCs with pooled sessions -
Average 40% reduction of backend session requirements
IT Savings – Compared to Deployed PCs

34. 34
IT Savings – Net Reduced Support Desk Calls
 Reduced desktop technician support requirements
for zero clients
 Remote access to virtual desktop is seamless
and integrated
 Endpoint proliferation while implementing an EMR
 FTE per device ratio is increased
Before Epic Inpatient: 2000 endpoints - 898 monthly support calls
After Epic Inpatient & View: 3100 endpoints - 875 monthly support calls
35% increase Net Call Volume change
37% time savings = ¼ FTE

35. 35
Included in the solution
400+
applicationsFull Windows
OS desktop
Novell Zenworks
Microsoft SCCM
Application
Application
Application
Servers
This solution
was not needed!
ThinApp
Active
Directory
IT Savings – ThinApp Application Streaming

36. 36
Savings Summary
Impact of VMware View Savings
Time savings with roaming $2,007,515
Imaging access from anywhere $821,621
Dragon dictation access from anywhere $786,258
Zero clients versus local full Windows OS clients $70,502
Net reduced support desk calls $0
No additional app distribution solution $0
Cost of our VDI solution ($2,000,000)
Potential Annual Savings $1,685,896
Intangible Benefits
Security savings + ?
Built in upgrade environment + ?
Built in disaster recovery + ?
Optimized hardware functionality + ?
Single Sign On + ?

37. 37
Agenda
 ID the Business Cases for our Hospital
 Calculate the IT Savings
 Plan the Next Steps

38. 38
• Ask why transform before you try to figure out how it transforms.
• Transformative success will only come if you take the time to prepare.
• The will to transform will succeed only if you will believe in the benefits.
This is a transforming technology
You can't do today's job with yesterday's
methods and be in business tomorrow.
– Nelson Jackson
Thinking Differently about VMware View

39. 39
Plan the Next Steps
 Enable your vision for the whole organization
 Must have the vision of a full desktop replacement
 Must ID the key champion stakeholders
 Implement a tightly integrated solution
 Must perform a Proof Of Concept
 Pilots are very necessary, but have a plan to enable the vision

40. 40
Time waste differs from material waste in that there can
be no salvage. The easiest of all wastes and the hardest
to correct is the waste of time, because wasted time
does not litter the floor like wasted material.
Henry Ford
Be the change you wish to see in the world.
Mahatma Gandhi
Forward success will always be followed by maddening setbacks,
often with the irresistible urge to go back to what is perceived as “safe”,
potentially sacrificing vision and a differentiating future for status quo.
Aivars Apsite
Closing Thoughts on Transforming Technology

41. 41
Questions?

42. 42
Other VMware Activities Related to This Session
 HOL:
HOL-MBL-1301
Horizon View from A to Z
 Group Discussions:
EUC1001-GD, EUC1006-GD
View with Matt Coppinger or Andre Leibovici

43. THANK YOU

45. Quantifying the Business Value of
VMware Horizon View
Aivars Apsite, Metro Health
Ridwan Huq, VMware
EUC5211
#EUC5211

46. 46
APPENDIX

47. 48
Security savings
No cost for additional encryption at endpoint
USB connectivity is managed
Built in upgrade environment
Various solution environments can be tested simultaneously
Built in Disaster Recovery
Spread across two active data centers
Endpoint hardware refresh cycle every year
Can lower costs and stretch out useful life
Other Strategic Benefits Representing Savings

48. 49
Endpoint hardware functionality is optimized
Application efficiency is shifting to operate more efficiently in virtual
environments vs physical desktops
Remote access to un-managed desktops
In community care settings, allow affiliates to manage their own
desktops and applications running on them
Single Sign On
Savings are generated by eliminating multiple
application logins within active session
Windows 7 upgrade
Significantly shorten the upgrade timeframe
Other Strategic Benefits Representing Savings

49. 50
In case you missed it…..
over $3,000,000
That is
in annual time savings