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Virtualization: The Foundation of a
Data Center Green IT Business Case

Ted Ritter
Senior Research Analyst
Nemertes Research
ted.ritter@nemertes.com

Agenda

 Introductions
 Virtualization Trends
 Green/Sustainability Status
 Power Challenges
 Power Cost Modeling with Virtualization
 ROI Reality
 Virtualization Green Reality
 Conclusions and Recommendations
Q&A

2 © Nemertes Research 2010 www.nemertes.com 1-888-241-2685

Introductions: About Nemertes
 Analyze business value of
emerging technologies
 Advise and Assist Fortune 100-
2,000 businesses on critical IT
strategies
 Benchmark reality
 2,500+ IT executives share
strategies, costs, vendor
satisfaction
 Analysts have 17-30 years
experience, including
operational
 Founded 2002


Virtualization Trends
 Server Virtualization:
 93% implementing server virtualization
 21% “full implementation”
 Desktop Virtualization: More than 20% now
 Growing over next two years
 Benefits:
 Cost savings (power, server hardware)
 Agility (provisioning times drop by 80%+)
 Disaster recovery (74% increase in “less-than-an-hour” site recovery times)
 Cautions
 Servers: security, management
 Desktops: careful attention to service engineering, TCO
 Application Virtualization: 10% now, set to grow more slowly than
desktop virtualization
 Few using cloud computing today, but looking to do it in future


Why Virtualize?


Why Virtualize Desktops?

6 © Nemertes Research 2010 www.nemertes.com 1-888-241-2685 © Copyright 2009 Nemertes Research

Green/Sustainability Status


The Green Data Center: Sustainability Policy

50% of
organizations have
quantified a benefit
from sustainability


Power Density

16 KW
Rack of
Blade
Chassis
12 KW (64) Typical Co-
location
Power

8 KW

4 KW Full Blade Chassis (16)
Rack of 1U Servers (16)


Power Challenges


HVAC Challenges


Response to HVAC Challenges


Power Usage Metric - PUE

 Only 35% - 50% of power
actually reaches IT 3.0
2.86 – 35%
equipment IT Power
 HVAC consumes 45% of power
 Power transmission-conversion
loss consumes 5 - 20% 43% 2.0
1.87 – Research
 Only 45% of organizations More
Participants
IT
measure data center
Power 1.37 – Fortune
power Data Center
 Only 15% of organizations 1.0
< 1.0 - ????
have a power efficiency
metric
Main Power Feed
Power Use Efficiency (PUE) =
Power Reaching IT Equipment


Power Cost Modeling


Desktop Virtualization Factors

18000
Current
Desktops

Four year lifespan
85 Watt Power Draw

20% Systems
Replaced by
16 Watts
Thin Clients
Average thin
client


New Enterprise Desktop – Post-Virtualization

Transition
to Thin
Client

Account
for Server
Power
97% Pre- 90% Pre-
Virtualizatio Virtualizatio
n Power n Power


Server Virtualization Factors

Server Power
450 Watts

5000 Pre Virtualization Servers
1400 Post-Virtualization Servers

Stage of
Virtualization
- Partial

Power Cost
$0.12 per
kWh


Server Virtualization Business Case: Small
Server Virtualization: Cost and Returns
Without With
In a 200 server infrastructure Virtualization Virtualization
Number of new servers per year (lifecycle) 57 10
Without With
Capital Costs Virtualization Virtualization
Servers 171429 42857
Cost of associated network infrastructure (annualized) 429 476

Cost of associated storage network (annualized) 2000 1029

Annual Capital Costs $ 173,857.14 $ 44,361.90
Without 71% Pre-
With
Operational Costs Virtualization Virtualization
Virtualizatio
Admin time to rack and stack them (staff hours) 71 n Power12
Admin cost to rack and stack them 3214 536
Cost of power (annual) 94608 66856

Annual Operational Costs $ 97,822.29 $ 67,392.03

Annual Expenses $ 271,679.43 $ 111,753.94


Server Virtualization Business Case: Large
Server Virtualization: Cost and Returns
Without Moving to
In a 5000 server infrastructure Virtualization Virtualization

Number of new servers per year (lifecycle) 1429 238

Capital Costs
Servers 4285714 1071429
Cost of associated network infrastructure (annualized) 10714 11905
Cost of associated storage network (annualized) 50000 25714

Annual Capital Costs $ 4,346,428.57 $ 1,109,047.62
71% Pre-
Operational Costs
Virtualizatio
Admin time to rack and stack them (staff hours) 1786 n Power
298
Admin cost to rack and stack them 80357 13393
Cost of power (annual) 2365200 1671408

Annual Operational Costs $ 2,445,557.14 $ 1,684,800.86

Annual Expenses $ 6,791,985.71 $ 2,793,848.48


ROI Analysis

3 Year ROI
392%

OpEx
91% OpEx Savings of
savings is $2,282,269
power


ROI Reality - ROI Improves With Maturity


Maturity vs. Server Power Load


Virtualization Green Reality

 OpEx: The power of virtualization
 Power – the most significant OpEx reduction factor
 No participant from a large organization knew their data center power usage
 Every server kWh reduced is 3 kWh on the meter
 Size matters
 Larger data centers show greater returns
 Key factors are stacking depth and annual expansion
 Maturity pays off
 ROI increases by stage: Evaluation to pilot to partial to full roll-out the ROI
 Expect a negative ROI during evaluation stage – duplication of resources
 Poor storage planning will eat virtualization returns
 Participants report spiraling storage requirements


Conclusions and Recommendations

 Need to start with power metrics – PUE
 Focus on low-hanging fruit
 Server virtualization to consolidate older less efficient servers onto more
powerful and more efficient servers
 Caution – watch out for power and heat density potential issues
 Desktop virtualization power savings complicated
 Often desktop power use is not on “your nickel”
 Desktop virtualization extends the life of desktops
 Look to power optimizing solutions from companies like
Avocent, Cisco and Microsoft to conserve power
independent of virtualization efforts


Thank you!
Questions?
Research@nemertes.com


10 fn s38

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