Presentation on Developing A comprehensive business case

1. Getting to Yes! Developing a Strategic Business Case for Virtualization Chris Gebelin MGM MIRAGE Executive Director, Enterprise Management cgebelin@mgmmirage.com

2. Building the Business Case  Define the Need  Define the Solution  Plan the Work  Financial Analysis

3. Transformational Goals & Objectives $ Financial Savings Going Green Operational Agility

5. What is the annual cost to operate a physical server?

8. Resource capabilities…technical skillset, management & leadership

10. Define the Solution

11. The Plan  What Services to offer  Layout Technical Model  Consider Scalability & Manageability  Engineer the Solution

15. Use a Modular approach… virtual infrastructure needs to scale easily and rapidly

17. Converting Strategy into Action  Technical scope of work  Migrations  Building & deploy service management  Organization changes

19. Implement scalable/modular infrastructure to support 1200 guests

20. Define P2V migration process

21. Analyze operational support model

22. Continue P2V migrations

23. Maximize containment efforts

24. Disaster Recovery Automation

25. Provisioning Automation

26. Complete P2V migrations

27. Scale out two add’l clusters

29. No add’l storage

30. Add two eight node clusters to each site

31. Add 120 TB

32. VI foundation (compute, memory, storage, network)

34. Build in fail-safe check points

35. Don’t forget to start decommission process for retired physical server

36. Capture data on success rates, migration times & errors for analysis and process improvement

37. A lot of love out there for servers

38. Demonstrate benefits to them… recovery, clones for testing & dev

40. VI Policy Wave 1: Mandatory VM candidates Wave 2: Potential VM candidates Wave 3: Future VM candidates Excluded VM candidates

41. Program Recap Worked with Program Manager to define the scope of work and a schedule Communicated the Program Plan with other IT departments Developed a process for migrations to get everyone on the same page

42. Financial Analysis  Gather Costs  Gather & Quantify Benefits  Calculate ROI, IRR, NPV  Bring it all together

44. FTE additions (Cost) reductions (Benefit)

45. Reducing Server Expenditures (Benefit)

46. Utility Costs (Power & Water)

47. On-Demand service capacity (Benefit)

48. Corporate Environment Initiatives (Benefits)

49. Carbon Footprint reductions (Benefit)

50. Organizational Efficiencies (Benefit)

51. Staff re-assignments (Benefit)

52. Faster server provisioning (Benefit)Bottom Line is that there must be a direct cash flow association with hard costs & benefits

53. Program Costs

54. Program Benefits - Hard

55. Program Benefits – Avoidance

56. Cost Benefit Summary

57. Cost Benefit Calculations

58. Per Unit Costing - Virtual

59. Per Unit Costing – Physical

60. Another Look at Cost Justification $3,642 vs $11,337

61. Financial Recap Identified costs (hard & soft) to implement Identify benefits (hard & soft) of a Virtualization program Calculate NPV, IRR & ROI Per unit/service costs provide a different approach to Cost Benefit Analysis

63. Start with the end in mind.

64. Don’t be afraid of your CFO! The financial case for virtualization is strong