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Permission Notice Permission to use and redistribute this Document is granted, provided that (1) the below copyright notice appears in all copies and that both the copyright notice and this permission notice appear, and (2) you do not alter any copyright, trademark or patent notice in the Document.  You may modify, and redistribute the modified Document,  so long as (a) you adhere to the distribution requirements above and (b) the modifications are for customizing the Document for the sole purpose of your selling the Microsoft products discussed in this document and are not malicious, deceptive or unlawful. You may not further grant your customers or other business partners the right to modify or distribute this Document. By distributing the Document you agree to indemnify Microsoft for any claims that arise due to your modifications. Elements of the Document, including logos, graphics, sound or images, are protected by trade dress, trademark, unfair competition, and other laws and may not be copied or imitated in whole or in part except as part of the Document as allowed above.  Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the document and related graphics for any purpose.  The document and related graphics published on the services could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions it should not be interpreted to be a commitment on the part of Microsoft. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. Opinions expressed by instructor or persons in videos are their own and do not represent Microsoft Corporation. © 2008 Microsoft Corporation.  All rights reserved.
Spotlight on Cost How Customers Are  Cutting Costs & Building Value  with Microsoft's Virtualization Platform
Three Ways Customers Are Cutting Costs With  Microsoft Virtualization Virtualization Solutions Savings Lowest Cost of Acquisition & Ownership MicrosoftPlatform Savings Server Consolidation Energy & space reduction Accelerated application & desktop deployment Platform-based hypervisor End-to-end management Training & Support 1/3 Cost of VMware Licensing for Virtualization Microsoft Desktop Optimization Pack
Microsoft Virtualization ProductsFrom the Datacenter to the Desktop Application Virtualization Server Virtualization Presentation Virtualization Desktop Virtualization User State Virtualization Document redirection Offline files
Server Consolidation Savings
Rapid Provisioning Savings: Accelerating Time to Production “Building a physical server took almost four hours before virtualization.  Hyper-V has helped decrease this time to 20 minutes.  The simplified management console in System Center Virtual Machine Manager reduces this time even more, so build time is down to 10 minutes.   The value of the time savings associated with the server management improvements is estimated to be AU$1,055,000 (U.S.$999,985) per year.” Vito Forte, Chief Information Officer, WorleyParsons
Discover Candidates for Consolidation: Microsoft Virtualization Solution Accelerator Server Consolidation? ApplicationVirtualization? Windows migration? Customer Network Assess customer’s environment and recommend the right technologies MAP MAP Tool User (IT Pro/Partner) “Before physical-to-virtual (P2V) conversions began, Costco IT staff used the Microsoft Assessment and Planning (MAP) Toolkit to evaluate server loads.  Using the toolkit, staff members discovered that, in many cases, servers were running at only 5 percent utilization, making them good candidates for consolidation.” Costco Wholesale Corp Case Study Report Generation For Different Migration Scenarios Microsoft.com/MAP
Green IT Savings Projected Savings MS Actual Dev/Test Savings Hyper-Green Tool
Desktop Virtualization Savings
MicrosoftPlatform Savings “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.” Bert Van Pottelberghe,  Sales Director, Hostbasket Platform-based hypervisor End-to-end management Training & Support
Platform-Based Virtualization Features
Virtualization Built Into Management Platform
Training & Support:Virtualization is a Skill, Not a Specialty “We will be able to support our entire virtual landscape through Microsoft, which already supports the rest of our datacenter, and have solid, seamless coverage under our Microsoft Premier Support Agreement.  Hyper-V fits better into our Microsoft infrastructure and simplifies our IT strategy by enabling us to work with as few vendors as possible.”  Erich Nøkling, Business Development Manager, Mamut
Low Cost of Acquisition & Ownership “By deploying Windows Server 2008 Datacenter, with its liberal virtual-machine licensing options, MLS PIN achieved savings of $200,000 over other editions of the operating system.” Matt Lavalee, Director of Technology, MLS Property Information Network
Side-By-Side Feature & Cost Comparison Of Virtualizing 5 Hosts “We saw that Hyper-V did everything we needed and was far more cost-effective than VMware, which costs about $6,300 per server more than Hyper-V.” Nicholas Merton, IT Support, Maxol $61.4K x x x Virtual Center $7.3K Multi-Hypervisor Management App Management $21.4K Virtual Infrastructure Enterprise $42.1K Included Physical Management Virtual Management System Center $9.4K Windows Server 2008 $12K Windows Server 2008 $12K Windows Server 2008 Hyper-V $12K Hypervisor
Cost Savings Through Adoption of Best Pratices, including Virtualization Basic Standardized Rationalized IT Labor Cost  Per User Per Year $ 89.68 $ 67.3 $ 1.24 Collaboration IT Running Costs  Per Server $ 10,950 $ 6,285 $ 15,045 Email Servers / IT FTE 46.3  Servers 96.5 Servers  35.6 Servers Data Management Virtualization Source: 2008 Microsoft research project analyzing adoption and use of best practices for server management
Calculate Your Savings: Microsoft Virtualization ROI Tool

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How Customers Are Cutting Costs And Building Value With Microsofts Virtualiation Platform

  • 1. Permission Notice Permission to use and redistribute this Document is granted, provided that (1) the below copyright notice appears in all copies and that both the copyright notice and this permission notice appear, and (2) you do not alter any copyright, trademark or patent notice in the Document. You may modify, and redistribute the modified Document, so long as (a) you adhere to the distribution requirements above and (b) the modifications are for customizing the Document for the sole purpose of your selling the Microsoft products discussed in this document and are not malicious, deceptive or unlawful. You may not further grant your customers or other business partners the right to modify or distribute this Document. By distributing the Document you agree to indemnify Microsoft for any claims that arise due to your modifications. Elements of the Document, including logos, graphics, sound or images, are protected by trade dress, trademark, unfair competition, and other laws and may not be copied or imitated in whole or in part except as part of the Document as allowed above. Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the document and related graphics for any purpose. The document and related graphics published on the services could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions it should not be interpreted to be a commitment on the part of Microsoft. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. Opinions expressed by instructor or persons in videos are their own and do not represent Microsoft Corporation. © 2008 Microsoft Corporation. All rights reserved.
  • 2. Spotlight on Cost How Customers Are Cutting Costs & Building Value with Microsoft's Virtualization Platform
  • 3. Three Ways Customers Are Cutting Costs With Microsoft Virtualization Virtualization Solutions Savings Lowest Cost of Acquisition & Ownership MicrosoftPlatform Savings Server Consolidation Energy & space reduction Accelerated application & desktop deployment Platform-based hypervisor End-to-end management Training & Support 1/3 Cost of VMware Licensing for Virtualization Microsoft Desktop Optimization Pack
  • 4. Microsoft Virtualization ProductsFrom the Datacenter to the Desktop Application Virtualization Server Virtualization Presentation Virtualization Desktop Virtualization User State Virtualization Document redirection Offline files
  • 6. Rapid Provisioning Savings: Accelerating Time to Production “Building a physical server took almost four hours before virtualization. Hyper-V has helped decrease this time to 20 minutes. The simplified management console in System Center Virtual Machine Manager reduces this time even more, so build time is down to 10 minutes. The value of the time savings associated with the server management improvements is estimated to be AU$1,055,000 (U.S.$999,985) per year.” Vito Forte, Chief Information Officer, WorleyParsons
  • 7. Discover Candidates for Consolidation: Microsoft Virtualization Solution Accelerator Server Consolidation? ApplicationVirtualization? Windows migration? Customer Network Assess customer’s environment and recommend the right technologies MAP MAP Tool User (IT Pro/Partner) “Before physical-to-virtual (P2V) conversions began, Costco IT staff used the Microsoft Assessment and Planning (MAP) Toolkit to evaluate server loads. Using the toolkit, staff members discovered that, in many cases, servers were running at only 5 percent utilization, making them good candidates for consolidation.” Costco Wholesale Corp Case Study Report Generation For Different Migration Scenarios Microsoft.com/MAP
  • 8. Green IT Savings Projected Savings MS Actual Dev/Test Savings Hyper-Green Tool
  • 10. MicrosoftPlatform Savings “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.” Bert Van Pottelberghe, Sales Director, Hostbasket Platform-based hypervisor End-to-end management Training & Support
  • 12. Virtualization Built Into Management Platform
  • 13. Training & Support:Virtualization is a Skill, Not a Specialty “We will be able to support our entire virtual landscape through Microsoft, which already supports the rest of our datacenter, and have solid, seamless coverage under our Microsoft Premier Support Agreement. Hyper-V fits better into our Microsoft infrastructure and simplifies our IT strategy by enabling us to work with as few vendors as possible.” Erich Nøkling, Business Development Manager, Mamut
  • 14. Low Cost of Acquisition & Ownership “By deploying Windows Server 2008 Datacenter, with its liberal virtual-machine licensing options, MLS PIN achieved savings of $200,000 over other editions of the operating system.” Matt Lavalee, Director of Technology, MLS Property Information Network
  • 15. Side-By-Side Feature & Cost Comparison Of Virtualizing 5 Hosts “We saw that Hyper-V did everything we needed and was far more cost-effective than VMware, which costs about $6,300 per server more than Hyper-V.” Nicholas Merton, IT Support, Maxol $61.4K x x x Virtual Center $7.3K Multi-Hypervisor Management App Management $21.4K Virtual Infrastructure Enterprise $42.1K Included Physical Management Virtual Management System Center $9.4K Windows Server 2008 $12K Windows Server 2008 $12K Windows Server 2008 Hyper-V $12K Hypervisor
  • 16. Cost Savings Through Adoption of Best Pratices, including Virtualization Basic Standardized Rationalized IT Labor Cost Per User Per Year $ 89.68 $ 67.3 $ 1.24 Collaboration IT Running Costs Per Server $ 10,950 $ 6,285 $ 15,045 Email Servers / IT FTE 46.3 Servers 96.5 Servers 35.6 Servers Data Management Virtualization Source: 2008 Microsoft research project analyzing adoption and use of best practices for server management
  • 17. Calculate Your Savings: Microsoft Virtualization ROI Tool
  • 18. Next Steps to Cutting Costs with Microsoft Virtualization

Editor's Notes

  1. The deck is divided into three broad ways customers can save with Microsoft’s Virtualization:It begins by discussing the core savings inherent in using virtualization to consolidate servers and accelerate desktop deployment and, as a result, how this helps organizations gain significant time, space and power savings, as well as environmental benefits. We then look at additional savings customers are achieving due to the unique way that Microsoft built virtualization technologies into our server, desktop and management platforms. Finally, we show how Microsoft enables even further savings through innovative pricing and licensing, which lower both acquisition and ongoing ownership costs.
  2. Key pointsEveryone thinks about server virt when they think about virt – we have history here w/ Virtual Server, and a big strength w/ Hyper-VBut, there’s more to virt than server virt…As virtualization becomes more pervasive, management is much more critical to enable dynamic scenarios – System Center can sit at the heart of all of this“When we think about virtualization, most of the hype in the industry today is focused on machine virtualization or server virtualization, and certainly server virtualization is a critical enabling technology where I'm able to encapsulate an operating system and application and my data all together.  Microsoft's solution there is that we have a solution, Virtual Server, in market, and now with Windows Server 2008, a key feature of Windows Server 2008 is Hyper-V, our hypervisor-based virtualization solution. That is in the process of coming to market and will be released to market within the next three to four weeks or so; which is great but that's just one kind of virtualization. Depending on the problem that you're trying to solve, there are a number of different virtualization technologies that are important to take advantage of.  So Application Virtualization: On clients the ability to do application isolation and to stream application on-demand is critical; if we think about the adaptive application delivery, which I'll talk to in a minute, and we have the leading virtualization capability here with Microsoft Application Virtualization.  Desktop virtualization: Virtual PC has been in market for awhile, and then we announced an acquisition of a company called Kidaro to really enable enterprise-class desktop virtualization solutions and scenarios.  Then presentation virtualization, which you may know of as Terminal Services, but the ability to centrally manage and host an application and the data, and just serve out the interaction with that, so present it up to a user remotely. All of these different pieces can play a role in the solution that you're trying to solve for, but what's critical is at the heart of this is management. In a virtualized world, management becomes much, much more critical in enabling some of these dynamic scenarios that we talk about. So, take a broad view and think about desktop to datacenter.”
  3. Inherent Savings from Server Virtualization: Consolidation, Power, Green IT, Space The most frequently discussed virtualization benefits relate to servers. By virtualizing servers, you can address the problems with underutilized and difficult-to-manage hardware, excessive power consumption, and the expensive space required to house servers in datacenters and branch offices. This leads to tremendous savings in several areas. The first and most visible is from direct server consolidation.Server Consolidation SavingsBy running multiple virtual machines on fewer physical servers, Microsoft customers are drastically cutting hardware requirements and easing server management. For instance, using Windows Server 2008 Hyper-V, Dartmouth-Hitchcock Medical Center consolidated 400 servers down to 100 servers. “We expect to consolidate an additional 75 servers using Hyper-V, which will lead to a cost savings of more than U.S. $325,000 annually,” says Robert McShinsky Senior Systems Administrator, Dartmouth-Hitchcock Medical Center.  This degree of savings is typical. Indiana University Auxiliary IT Department went from 152 to just 32 servers, which it expects will save U.S. $85,000 annually. MaximumASPreduced its servers from 40 to 5, saving U.S. $7,000 every year. Saxo Bank had an average physical server utilization of just 20 percent and was deploying nearly 200 new servers per year before using server virtualization. Hyper-V allowed the bank to reduce the number of servers needed by 36 percent and realize savings equivalent to U.S. $1 million, due to lower server hardware costs and associated reductions in space, power and cooling costs. Electrical Power SavingsMany customers have realized similarly dramatic electrical savings, as Saxo Bank, as a result of server consolidation—which is a particularly important benefit in today’s climate of volatile power prices. TALX expects to save approximately 50 percent in annual power and cooling costs by consolidating its server environment with Hyper-V. HotSchedules, which notes that its “number one cost in the datacenter is power,” currently spends about U.S. $11,000 a month on datacenter power costs, but with Hyper-V, it anticipates that this monthly figure will go down to $2,500. Santa Barbara Web Hosting uses Hyper-V to reduce its power consumption costs by U.S. $5,220 per month, helping the company provide more cost-effective services to its customers. And Slough Borough Council took advantage of the savings from eliminating 10 initial physical servers to preserve the electrical power needed to turn on a new storage area network. As Nicholas Merton, IT Support for Microsoft customer Maxolexplains, energy costs can be reduced not only by using Hyper-V, but also with Microsoft System Center Virtual Machine Manager 2008. “We estimate that we’ll save about U.S. $47,000 in electrical costs over three years. We also plan to shut down servers at night when the processing load is far less and move their applications to a smaller number of servers. In a physical environment, you can’t just turn off Exchange Server or other critical applications. But in a virtual environment, you can use System Center Virtual Machine Manager 2008 to automatically move selected applications to specified servers and move them back to their ‘home’ servers in the morning.” More efficient electrical power usage also improves Maxol’s standing as a “green” company.Space SavingsBurgeoning server farms can also be expensive to house. But consolidating servers through virtualization can save valuable space in your datacenter and branch offices, and further reduce operational costs. Indiana University Auxiliary IT Department used to spend U.S. $17,500 annually on rent for five racks in its datacenter. Using Microsoft virtualization technology, it slashed its rack count down to two, saving $10,500 annually on datacenter rack fees.Volusia County Schools was running out of rack space and realized it would have to expand its datacenter if it didn’t virtualize the environment. “All of our datacenter racks were full. Our cooling system was reaching maximum capacity, and so was our battery backup system—and we had just upgraded it only three years ago,” says Ken Richmond, Manager of System Engineering, Volusia County Schools.  To accommodate a larger server footprint, the district estimated that it would have to spend U.S. $250,000 to physically build out the datacenter. With Hyper-V, Volusia County was able to consolidate everything in its existing space. “Without Hyper-V, we wouldn’t have the room to bring all of these applications and services back to the datacenter,” Richmond adds.
  4. Extending Server Virtualization Benefits with Rapid ProvisioningOnce your servers are virtualized, they are much easier and less expensive to deploy by using System Center Virtual Machine Manager 2008. Slough Borough Council cut the average time to provision a new server from 16 hours to just 3 minutes, which translates to U.S. $23,700 annual savings in deployment costs. Indiana University Auxiliary IT Department now requires just one hour, instead of 10 hours, to provision a server, which it estimates saves U.S. $9,000 in setup costs alone based on a $50-per-hour IT professional wage. Even more dramatic, WorleyParsonsslashed its time to deploy a new server from 3 weeks to just one day, saving AU $1,055,000 (U.S. $999,985) every year. “In the past this would require deploying a new physical server, which could take three weeks because of the time involved in purchasing and setting up the server. With Hyper-V and System Center Virtual Machine Manager, we now have the templates and ability to provision in a much shorter timeframe,” says Vito Forte, Chief Information Officer, WorleyParsons. “Virtualization with Hyper-V is providing the ability to deliver applications quickly, and this is what we need to do to differentiate ourselves from competition.”  How do these customers, and many others, achieve these kinds of savings? Because they no longer have to physically build machines—they simply spawn new virtual machines—it takes much less time and labor to provision them. With advanced management tools in Microsoft System Center Virtual Machine Manager 2008, you can automate P2V conversions, intelligently place virtual machines on the most appropriate servers based on usage and capacity, and manage both Microsoft and VMware hosts—all with the same solution. 
  5. Getting Started with Server Virtualization: MAP Getting started on realizing these savings is now easier than ever with Microsoft assessment tools for server consolidation and environmental savings. Microsoft has a free downloadable tool, called Microsoft Assessment and Planning (MAP) Solution Accelerator, that helps identify your best candidates for consolidation. With its agent-less inventory, performance data gathering, and auto-generated proposal and report generation capabilities, MAP lets you conduct network-wide readiness assessments so you can quickly and efficiently determine the right servers to target for Hyper-V.  Costco Wholesale Corp. used the MAP toolkit with great success. “It’s a good tool to have to help gauge what you can virtualize,” says Jason Griffith, Analyst at Costco Wholesale Corporation. Before performing physical-to-virtual (P2V) conversions, Costco IT staff evaluated the existing physical server loads. Using the MAP toolkit, staff members discovered that, in many cases, their servers were running at only five percent utilization, making them good candidates for consolidation. Costco now runs Hyper-V on five servers in its datacenter, and plans to virtualize nearly 50 percent of its servers within the next year. The company reduced spending on new physical servers and expects to cut datacenter energy expenses, which cost the company U.S. $75,000 a month.
  6. Environmental Impact and SavingsAs Maxol noted, server virtualization can have a tremendous impact on green initiatives. By improving capacity utilization by consolidating underutilized servers, server virtualization not only lessens cooling requirements and kilowatts of power used, it reduces the environmental footprint for organizations such as Banque de Luxembourg and the Kentucky Department of Education. According to Jodi Hurley, Infrastructure Operations Manager, Kentucky Department of Education,“By using fewer physical servers, we reduce our environmental impact and lower our energy costs. We’re using less electricity and dumping fewer discarded servers into landfills. Virtualization helps us be better environmental citizens.” Xavier Granveaux, Virtualization Project Manager, Banque de Luxembourg, adds, “By running an IT environment that is so much more efficient than before, we will be able to dramatically reduce our carbon footprint as part of the goal to become more environmentally responsible.” After you have determined how many servers you plan to consolidate, you can use the free Microsoft HyperGreen Tool to figure out how much energy you’ll save and the environmental impact of those savings. You simply plug in the number of servers you are going to consolidate, and HyperGreen generates a report detailing your reductions in kilowatts, money and CO2 emissions.  
  7. Saving Money with Desktop Virtualization Clearly, Microsoft customers are saving substantial amounts of money with server virtualization. However, they are also realizing dramatic cost reductions on the desktop side with application and presentation virtualization. Customers are speeding application deployments, simplifying OS migrations, and accelerating time-to-access applications for users across the enterprise—all of which translate to less labor and money required for desktop management. Using Microsoft Application Virtualization, which eliminates application conflicts and the need for lengthy regression testing, and enables applications to be delivered on demand, AspenTech cut its application delivery time by 50 percent; Banverket ICT reduced it from weeks to just half a day; and California State University now requires just 10 hours—instead of 700 hours—to package and deliver an application. These time reductions can amount to significant monetary savings. According to Axel Junghans, Global Client Manager for Heidelberg, “We don’t have to do any integration tests because virtualized applications have no impact on other applications. This enables us to deliver applications to the field in half the time it used to take.” Heidelberg estimates that it saves approximately 50,000 Euro, or more than U.S. $65,000, annually in packaging costs alone. Junghans add, “Microsoft Application Virtualization helps us dramatically reduce packaging time, optimize application delivery and management processes, and cut the total cost of ownership for our client environment. It paid for itself in just six months.”“It used to take us up to 4 hours to restore a damaged client computer. With Microsoft Application Virtualization, the same process takes only a quarter of an hour. If you take into consideration that we used to have to carry out manual interventions on almost 200 of our 650 PCs when updating, you can imagine how many man-hours we save on this process alone.”Claude Progin, Group Manager of Information Technology and Logistics for the City of BielCustomers are also realizing savings with Microsoft Windows Server 2008 Terminal Services, which separates where an application or desktop is used from where it is run. This enables customers to consolidate applications and data in the datacenter while providing broad access to local and remote users. Mantrac Group is a great case in point: “With Terminal Services in Windows Server 2008, we’ve been able to reduce our administrative overhead because our engineers no longer have to deal with VPN accounts,” says Ahmed Atef, Group IT Service Delivery Manager, Mantrac. “Our people are also finding it easier to work wherever they are—whether they are at a customer site, roaming between sites, or on the road. This anytime, anywhere access helps people to be more productive. When our employees are more productive, we decrease our costs.”
  8. Amplifying Savings and Value with Microsoft’s Platform Approach to VirtualizationBecause of virtualization’s proven ability to save our customers money and lay the foundation for a more dynamic IT environment, Microsoft built it into its core platform offerings. By making machine virtualization ubiquitous on the server and application virtualization ubiquitous on the desktop, and by deeply integrating virtualization into our end-to-end management solution, Microsoft uniquely makes virtualization part of the everyday IT environment.  As Bert Van Pottelberghe, Sales Director at Hostbasket, says, “Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.”Windows Server 2008 is replete with tools and capabilities that streamline processes and enable customers to maximize the value gained from virtualization technologies. HypervisorWith Hyper-V a key feature of Windows Server 2008, customers don’t have to purchase or manage hypervisors separately from the operating system. As a result, Hyper-V licensing “was 50 percent less than competitive solutions,” according to Paul Acampora, Manager of Customer Service for Saint Raphael Healthcare System. Jackson Energy Authority was able to save U.S. $15,000 by using Hyper-V in Windows Server 2008 Enterprise—including $5,000 on VMware licenses and $10,000 on a remote access solution. And, by choosing Hyper-V over VMware ESX, Santa Barbara Web Hosting saved money and got an easy to use solution:  “The ESX solution would have cost U.S. $30,000 for four servers. With Microsoft, we have a service provider agreement that allows for monthly payments with no capital costs—costing us less than $1,000 over the life of the contract,” says David Straede, President and Chief Operating Officer for Santa Barbara Web Hosting. “Hyper-V has the core features businesses need. It’s the Windows people know, is installed just like other Windows-based applications, and works in a management console that IT staff are already using. The ESX feature set simply doesn’t justify its additional expense.” ClusteringBecause host-to-host clustering is also built into Windows Server 2008, making Virtual Machines highly available is easy to implement and less costly to manage. By implementing clustering with Hyper-V, VMs will automatically failover between cluster nodes in the event of a host downtime. Hyper-V leverages Windows Server 2008 clustering to provide migration capabilities, which enable virtual machine guests to migrate from one cluster node to another with little downtime. According to Acampora of Saint Raphael Healthcare System, “Clustering enables us to deliver 100 percent uptime. We can lose one of our hosts and instantly fail-over its VMs to another system. Instead of experiencing a 24-hour outage, our users see only minutes of outage, if that. It enables us to provide better service to our users.” The U.S. Department of Energy has said that the datacenter is the fastest-growing energy consumer in the United States today, with 61 billion kilowatt hours going toward datacenter power consumption and a projected ten to fifteen additional power plants needed by 2011 to keep up.  According to Gartner Research, energy costs could soon account for more than 50 percent of the total information technology budget for a typical datacenter (Gartner Press Release, “Gartner Urges IT and Business Leaders to Wake Up to IT's Energy Crisis,” September 28, 2006). While power consumption is often viewed as a hardware issue, Microsoft has made significant engineering investments to ensure that Windows Server 2008 uses energy efficiently. As a result, Windows Server 2008 out of the box uses approximately 10 percent less energy than Windows Server 2003 running an identical workload. This is largely because Windows Server 2008 includes updated support for Advanced Configuration and Power Interface (ACPI) processor power management (PPM) features, including support for processor performance states (P-states) and processor idle sleep states on multiprocessor systems. These features simplify power management in Windows Server 2008 and can be managed easily across servers and clients using Group Policies.  
  9. Virtualization Built into System Center – both physical and virtual If making it easy for customers to implement virtualization is important, making it easy to manage the environment is just as critical for saving time and money. With Microsoft System Center, customers have a single solution for managing the entire IT lifecycle, from deployment and provisioning, to monitoring and back-up. Equally important, you can manage both server and desktop resources, both virtual and physical assets, and both Microsoft and third-party hypervisors, all with the same platform.  These capabilities helped Banverket ICT choose Microsoft for its virtualization strategy: “We had been watching with interest the evolution of the Microsoft strategy to build interoperability between infrastructure management and virtualization technologies from the datacenter to the desktop. We knew we wanted to build an integrated virtualization platform that would encompass server consolidation, Terminal Services, and application virtualization that we could manage with a single set of tools. We looked at VMware but decided against it because we wanted to benefit from the end-to-end integration that Microsoft virtualization and management technologies will provide us,” explains Pontus Blomkvist, Service Design Manager, Banverket ICT.Disaster Recovery Built into System CenterEven disaster recovery capabilities are built into the Microsoft solution, helping you improve productivity during unplanned downtime and minimize the financial impact of IT outages. Using the Hyper-V Snapshot feature, Dartmouth-Hitchcock Medical Center can quickly capture the state of a running virtual machine so that it can rapidly and easily restore that virtual machine to a previous state.  “Doing this on physical hardware takes a couple of hours; with virtual machines, it takes minutes,” says Robert McShinsky Senior Systems Administrator, Dartmouth-Hitchcock Medical Center. These capabilities are also essential for Bouygues Construction. According to AmauryPitrou, the company’s Projects Architecture, Desktops and Mobility Deputy Director, “The construction industry has changed, and employees are very dependent upon electronic systems. We can no longer tolerate services interruptions. With Hyper-V and System Center Virtual Machine Manager, we are creating a redundant datacenter in Normandy to ensure business continuity.” App Virtualization Built into System CenterAnother example where virtualization is integrated into the management platform is with System Center Configuration Manager 2007 R2, which allows you to deploy both physical and virtual applications from the same console. Tuv Nord agrees that an integrated virtualization and management solution provides tremendous benefits: “We were eager to get Microsoft Application Virtualization and System Center Configuration Manager working together so that we could have a single, uniform infrastructure for distribution. And with just eight people in our group, the more we can simplify our processes, the better. Now we can deploy both virtualized and installed applications using the same procedure,” notes Arne Bertgen, IT administrator for Tuv Nord. In addition to being integrated into the System Center solution, Microsoft Application Virtualization works seamlessly with Microsoft Active Directory services, making it easy—and fast—to allocate the right applications to users, as Kent School District attests. “All we do is add the application to the teacher's Active Directory and, the moment she logs onto the computer, she gets it. The teachers think it's magic," says Judy Peterson, Customer Support Manager, Kent School District. 
  10. Customers Save on Training and Support With virtualization built into the Microsoft platform, virtualization becomes a skill rather than a specialty. Now that you no longer need separate processes or IT teams to manage and support virtualization solutions, you can save time—and money—across the board. Customers agree that this is a crucial advantage. Erich Nøkling,Business Development Manager, Mamut, adds, “We will be able to support our entire virtual landscape through Microsoft, which already supports the rest of our datacenter, and have solid, seamless coverage under our Microsoft Premier Support Agreement. Hyper-V fits better into our Microsoft infrastructure and simplifies our IT strategy by enabling us to work with as few vendors as possible.”
  11. Lowering Cost of Acquisition and Ownership with Innovative Microsoft LicensingAs you can see, Microsoft’s approach of architecting virtualization into our core solutions helps customers save tremendous amounts of time and money. To help you keep costs as low as possible—both at acquisition time and throughout the lifecycle—we offer attractive licensing for a range of virtualization products.Windows Server 2008 DatacenterThe Datacenter Edition makes licensing Windows Server for virtual machines easy. You license Windows by the processors on the physical server and get unlimited product use rights for the virtual guests. There’s no need to count, track, or license the virtual machines. This makes it a compelling option for many customers. By deploying Windows Server 2008 Datacenter, MLS Property Information Network realized savings of U.S. $200,000 over other editions of the operating system. This licensing was also advantageous to Hostbasket, “We liked the fact that Hyper-V was built into Windows Server 2008,” Bart Roels, Operations Manager, Hostbasketsays. “Other solutions are built on top of the operating system, which adds more moving parts, performance overhead, and additional software licensing and maintenance. With Hyper-V, we don’t need separate drivers for the hypervisor, and we don’t pay additional licensing fees.” System Management Suite EnterpriseSystem Management Suite Enterprise (SMSE) provides a great way to keep purchase prices low and reduce total cost of ownership. You can manage an unlimited number of operating system environments on a physical host server and receive licensing for the four System Center products that simplify end-to-end lifecycle management: System Center Data Protection Manager 2007, System Center Operations Manager 2007, System Center Configuration Manager 2007, and System Center Virtual Machine Manager 2008.  By purchasing SMSE, Santa Barbara Web Hosting saves approximately U.S. $100,000 per year in licensing costs. MaximumASP took advantage of the SMSE licensing arrangement to obtain all the Microsoft System Center programs in one package. “All the components purchased individually were cost-prohibitive for us. With this new bundle, we can completely manage our environment with a single family of tools,” says Dominic Foster, Chief Technology Officer for MaximumASP. Microsoft Desktop Optimization PackTo help customers take advantage of virtualization on the desktop side, Microsoft bundled Microsoft Application Virtualization with five other desktop management tools, in the Microsoft Desktop Optimization Pack. The entire solution costs just U.S. $10/user/year and, in addition to Microsoft Application Virtualization, it gives you the added benefit of desktop inventory assessment, group policy management, Virtual PC management, and desktop error monitoring and repair tools. This pricing has enabled many customers to cost-effectively implement desktop virtualization. “When Microsoft integrated [Microsoft Application Virtualization] with the Microsoft Desktop Optimization Pack, we realized that we could purchase the technology through our Enterprise Agreement license at a very reasonable cost, and we decided to use it for the new Heidelberg Client,” says Axel Junghans, Global Client Manager, Heidelberg.  
  12. Calculate Your Savings from Microsoft Virtualization SolutionsWith so many customers realizing such substantial savings, you may be wondering what kind of benefits virtualization can provide to your organization. It’s easy to find out. Use the Microsoft Integrated Virtualization ROI Tool to estimate your return on investment in Microsoft virtualization solutions, including server, desktop and management. As our customers have shown, the results can be transformational. 
  13. Conclusion: Three Ways to Save Money You can save a tremendous amount of time, energy and money using virtualization. First, leverage the inherent savings that server and desktop virtualization provide through consolidation, reductions in power, space, and CO2 emissions, and by accelerating provisioning processes. Then, increase these savings through Microsoft’s built-in platform approach, which incorporates virtualization into our operating system and management offerings, making it part of your everyday IT environment. And, finally, take advantage of our innovative pricing and licensing programs, which help you minimize acquisition and ownership costs, making virtualization an even more compelling option for your business. To learn how you can save money with Microsoft virtualization solutions:Watch this introductory video  to see how Microsoft customers are saving money. (add URL for people who are printing this doc.) Download the Microsoft Assessment and Planning Solution Accelerator to identify your best candidates for server consolidation. (www.microsoft.com/MAP) Use the Microsoft Integrated Virtualization ROI Calculator to estimate your return on investment in Microsoft virtualization tools. (https://roianalyst.alinean.com/msft/AutoLogin.do?d=307025591178580657) Determine the reductions you can achieve in kilowatts, money and CO2 emissions with the Microsoft HyperGreen Tool. (www.hyper-green.com)  To read the case studies highlighted in this white paper, and for additional Microsoft virtualization case studies, go to http://www.microsoft.com/virtualization/case-studies.mspx Link to video