Savig cost using application level virtualization

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Saving cost using middleware and application level virtualization. This presentation provides description of the various cost saving elements beyond server-side consolidation. - Saving the cost of peak/static provisioning using on-demand scaling - Saving the downtime cost - Saving cost through outsourcing part of our application and operations to the cloud - Saving cost using application level optimization (doing more with less) - Saving cost using platform consolidation to reduce the number of software components as well as utilize OpenSource and more commodity Software packages Toward the end Jim Liddle provide real life case studies from iPhone launch in the UK and how those principles has been applied to enable successful launch in the UK. In addition to that Jim go through some of the motivations and case studies that led different telco and startup companies to utilize the cloud to gain better cost effectiveness.

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  • Saving cost using middleware and application level virtualization.

    This presentation provides description of the various cost saving elements beyond server-side consolidation:

    - Saving the cost of peak/static provisioning using on-demand scaling
    - Saving the downtime cost
    - Saving cost through outsourcing part of our application and operations to the cloud
    - Saving cost using application level optimization (doing more with less)
    - Saving cost using platform consolidation to reduce the number of software components as well as utilize OpenSource and more commodity Software packages

    Toward the end (Slide 20) Jim Liddle provide real life case studies from iPhone launch in the UK and how those principles has been applied to enable successful launch in the UK.

    In addition to that Jim go through some of the motivations and case studies that led different telco and startup companies to utilize the cloud to gain better cost effectiveness.
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Savig cost using application level virtualization

  1. 1. Saving Costs with Virtualization Tips from the Experts Nati Shalom, James Liddle January 14, 2008
  2. 2. Outline <ul><li>Survival of the Innovative </li></ul><ul><li>Cutting Costs By Improving Return on Technology Assets (ROA) </li></ul><ul><ul><li>Top 5 priorities and proposed solutions </li></ul></ul><ul><li>The Impact of Application-Level Virtualization on Cost Savings </li></ul><ul><li>Implementation Guidelines </li></ul><ul><li>Practical Steps </li></ul><ul><li>A Case Study </li></ul>
  3. 3. Survival of the Innovative — Doing More with Less <ul><li>&quot;The Chinese use two brush strokes to write the word ' crisis '. One brush stroke stands for danger; the other for opportunity. </li></ul><ul><li>In a crisis, be aware of the danger — but recognize the opportunity.&quot; </li></ul><ul><li>John F. Kennedy </li></ul>
  4. 4. Cutting Costs By Improving Return on Technology Assets <ul><li>Top 5 Priorities: </li></ul><ul><li>Server Side Consolidation </li></ul><ul><li>Linear scalability </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS) </li></ul><ul><li>Improving application-level efficiency </li></ul><ul><li>Platform consolidation </li></ul>
  5. 5. Where we are today? <ul><li>Server Side Consolidation  </li></ul><ul><li>Application-Level Virtualization ? </li></ul><ul><li>Linear scalability </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS) </li></ul><ul><li>Improving application-level efficiency </li></ul><ul><li>Platform consolidation </li></ul>App X App Y App Z App A App B App X
  6. 6. RECAP: Top 5 Priority for Reducing ROA <ul><li>Server side consolidation  </li></ul><ul><li>Linear scalability </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS) </li></ul><ul><li>Improving application-level efficiency </li></ul><ul><li>Platform consolidation </li></ul>
  7. 7. The Cost of Non-Linear Scalability <ul><ul><li>Same middleware license costs for GigaSpaces and alternative </li></ul></ul><ul><ul><li>Same throughput for GigaSpaces and alternative </li></ul></ul><ul><ul><li>The alternative hits a “salability wall” at some point </li></ul></ul>“ 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
  8. 8. Downtime Cost due to Scalability Barriers <ul><li>Downtime cost is estimated at $500K – 1000K </li></ul><ul><li>by 25% of Forrester’s surveyed companies </li></ul>
  9. 9. Reducing the Cost of Scaling <ul><li>Design for Linear scalability </li></ul><ul><ul><li>Reduces marginal hardware costs per transaction  less servers  reduced cost of ownership </li></ul></ul><ul><li>On-demand Provisioning </li></ul><ul><ul><li>Eliminates over-provisioning  less servers  reduced cost of ownership </li></ul></ul><ul><li>SLA-driven deployment </li></ul><ul><ul><li>Eliminates downtime  prevents productivity and revenue loss  saves downtime cost </li></ul></ul>
  10. 10. RECAP: Top 5 Priority for Reducing ROA <ul><li>Server side consolidation  </li></ul><ul><li>Linear scalability  </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS) </li></ul><ul><li>Improving application-level efficiency </li></ul><ul><li>Platform consolidation </li></ul>
  11. 11. Outsourcing to cloud infrastructure services (IaaS) <ul><li>Outsource testing, disaster recovery, etc. to public cloud </li></ul><ul><ul><li>Eliminates data center maintenance costs  reduced cost of ownership </li></ul></ul><ul><li>Prevent lock-in by cloud vendors </li></ul><ul><ul><li>Shop around for the best cloud services deal  reduced outsourcing costs </li></ul></ul><ul><li>Scale out to public cloud at peak times </li></ul><ul><ul><li>Eliminates redundant capacity  less servers  reduced cost of ownership </li></ul></ul>
  12. 12. RECAP: Top 5 Priority for Reducing ROA <ul><li>Server side consolidation  </li></ul><ul><li>Linear scalability  </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS)  </li></ul><ul><li>Improving application-level efficiency </li></ul><ul><li>Platform consolidation </li></ul>
  13. 13. Improving application-level efficiency <ul><li>Eliminate middleware bottlenecks </li></ul><ul><ul><li>Increases throughput  less servers  reduced cost of ownership </li></ul></ul><ul><ul><li>Reduces latency  less servers  reduced cost of ownership </li></ul></ul><ul><ul><li>Enable predictable latency under any load  Increase revenue </li></ul></ul><ul><li>“ A brokerage can lose up to $4M per 1ms of latency” - The Tabb Group </li></ul><ul><li>“ An additional 500ms delay resulted in -20% traffic” – Google </li></ul><ul><li>“ An additional 100ms in latency resulted in -1% sales” - Amazon </li></ul>6x the throughput, with up to 10x less the latency Decreases number of machines by 6x at least!
  14. 14. Improving application-level efficiency <ul><li>Eliminate middleware bottlenecks </li></ul><ul><ul><li>Increase throughput  less servers  reduced cost of ownership </li></ul></ul><ul><ul><li>Reduce-network hops  Reduce latency  less servers  reduced cost of ownership </li></ul></ul><ul><ul><li>Enable predictable latency under any load  Increase revenue </li></ul></ul><ul><li>Collocate all application components / services and run in-memory. </li></ul><ul><ul><li>Achieve linear scalability  reduce marginal hardware costs per transaction  less servers  reduced cost of scaling </li></ul></ul><ul><li>Develop, test and deploy exactly the same component in a predetermined environment </li></ul><ul><ul><li>Simplify development, testing, and change cycles  less time spent on integration and testing  reduced dev costs and improved productivity </li></ul></ul>
  15. 15. Simpler Development Reduces Costs <ul><li>“ [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. “ </li></ul><ul><li>Ashmit Bhattacharya, VP Engineering, Blackhawk Networks, Dec 2007 </li></ul>
  16. 16. RECAP: Top 5 Priority for Reducing ROA <ul><li>Server side consolidation  </li></ul><ul><li>Linear scalability  </li></ul><ul><li>Outsourcing to cloud infrastructure services (IaaS)  </li></ul><ul><li>Improving application-level efficiency  </li></ul><ul><li>Platform consolidation </li></ul>
  17. 17. Platform consolidation <ul><li>All middleware functionality in one product </li></ul><ul><ul><li>Reduces # of software licenses  reduced capital expenditure, integration costs </li></ul></ul><ul><ul><li>Use ONE product for messaging, data and parallel processing, </li></ul></ul><ul><ul><li>Leverage open-source and commodity products, e.g. Jetty, Glassfish, Spring </li></ul></ul><ul><li>Use of In Memory Data Grid </li></ul><ul><ul><li>Reduces the need for high-end database  cheaper hardware and software  reduced cost of ownership </li></ul></ul><ul><li>Flexible licensing model </li></ul><ul><ul><li>Offers subscription / pay-per-use licensing  reduced upfront investment </li></ul></ul>
  18. 18. Implementation Guidelines <ul><li>Avoid radical change, enabling a gradual process </li></ul><ul><li>Choose an architecture supporting linear scalability </li></ul><ul><li>Minimize vendor lock-in </li></ul><ul><ul><li>Enable application portability and freedom of choice of: </li></ul></ul><ul><ul><ul><li>cloud provider, web container, programming language, database </li></ul></ul></ul><ul><ul><li>Minimize API lock in: </li></ul></ul><ul><ul><ul><li>Use of standards </li></ul></ul></ul><ul><ul><ul><li>API Abstractions – when standards are not available </li></ul></ul></ul><ul><li>Future proof your application </li></ul><ul><ul><li>Don’t make decision today, but be ready to make one without major effort </li></ul></ul><ul><li>Avoid long-term commitment – choose the right licensing model </li></ul>
  19. 19. 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) <ul><li>Fast& Consistent response time. </li></ul><ul><li>Commodity db vs. high-end </li></ul>
  20. 20. Large UK Telco Saving Costs through Application-level Virtualization <ul><li>Background: </li></ul><ul><li>Telco was announced as UK carrier for Apples revolutionary iPhone </li></ul><ul><li>The US iPhone launch with AT&T provided the Telco with: </li></ul><ul><ul><li>High availability imperative </li></ul></ul><ul><ul><li>Scalability worries </li></ul></ul><ul><ul><li>Peak usage capacity worries </li></ul></ul>
  21. 21. Large UK Telco: Requirements <ul><li>Issues </li></ul><ul><li>Current Application server + stack </li></ul><ul><ul><li>Could not scale up and out in real-time </li></ul></ul><ul><li>Stability and reliability of Application server + stack </li></ul><ul><ul><li>Worked ‘stateless’, not ‘stateful’ </li></ul></ul><ul><li>Load </li></ul><ul><ul><li>Had to be able to deal with high peak volumes even if could not process all requests </li></ul></ul><ul><li>Downstream systems </li></ul><ul><ul><li>Had to be able to deal with downstream systems being offline </li></ul></ul><ul><li>Costs </li></ul><ul><ul><li>Alternative solution had could not be a “kitchen sink” set of licensing costs </li></ul></ul><ul><li>Time </li></ul><ul><ul><li>Only 12 weeks to implement, test and go live with system </li></ul></ul>
  22. 22. Original System
  23. 23. Large UK Telco: Key Results <ul><li>New architecture put into production within 12 weeks ! </li></ul><ul><ul><li>Logic, Data, Messaging virtualized </li></ul></ul><ul><ul><li>Enabled scaling up and out, real-time </li></ul></ul><ul><li>Reduced the cost of peak load </li></ul><ul><ul><li>Reduced need to buy for peak loads: gives confidence to be able to if required </li></ul></ul><ul><li>License costs for one product rather than several </li></ul><ul><ul><li>Reduced overall software costs </li></ul></ul><ul><li>Reduced maintenance and development costs </li></ul><ul><ul><li>Leveraged existing skill sets – JEE Migration made easy </li></ul></ul><ul><ul><li>Fully automated deployment and self healing </li></ul></ul>
  24. 24. GigaSpaces enabled System
  25. 25. Customers Using the Cloud to Reduce Costs <ul><li>Large UK Telco Company </li></ul><ul><ul><li>Deploying discrete stand alone services in the Cloud </li></ul></ul><ul><ul><li>More cost effective; easier to outsource; enabled by secure service interface </li></ul></ul><ul><li>Large Global Telco Company </li></ul><ul><ul><li>Deploying carrier grade VOIP service to the Cloud </li></ul></ul><ul><ul><li>New SaaS business model; New revenue stream </li></ul></ul><ul><li>Global Media Company </li></ul><ul><ul><li>Using the Cloud to process events for innovative new TV programme </li></ul></ul><ul><ul><li>Cloud makes concept cost effective </li></ul></ul><ul><li>Financial Services Start-up </li></ul><ul><ul><li>Using the Cloud for a trading exchange </li></ul></ul><ul><ul><li>Cloud lowers barrier to entry and makes proposition possible </li></ul></ul><ul><li>Online Gaming Company </li></ul><ul><ul><li>Using the Cloud for testing and scaling </li></ul></ul><ul><ul><li>Able to test large scale user support early / easy on cloud, hard otherwise </li></ul></ul>
  26. 26. Summary <ul><li>Server Side Consolidation was the first step towards complete virtualization </li></ul><ul><li>Next step: Application Level Virtualization </li></ul><ul><ul><li>Holds a large potential for cost saving </li></ul></ul><ul><ul><ul><li>The simplest step of moving to on-demand provisioning can lead to 7x cost savings. </li></ul></ul></ul><ul><ul><ul><li>The Cloud adds another dimension of flexibility </li></ul></ul></ul><ul><ul><li>Can be made simple by optimizing gradually </li></ul></ul>
  27. 27. What’s Next? <ul><li>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 </li></ul><ul><li>You are encouraged to see how application virtualization works on Amazon EC2: </li></ul><ul><ul><li>Visit www.gigaspaces.com/cloud </li></ul></ul><ul><ul><li>For a free trial, email [email_address] </li></ul></ul><ul><li>For free consultation (5 hours) on the best way to save costs in your organization contact [email_address] </li></ul>
  28. 28. Thank You

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