Hyperconvergence and the Pulling
Forces in the Datacenter
Giorgio Nebuloni, IDC EMEA
Nutanix .NEXT On Tour 2015
Agenda
 State of the Datacenter Union
 What’s Forcing Change
 The New Wave of Convergence
 Customer Learnings
 Market Data
 Essential Guidance
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2
State of the
Datacenter
Union
3
Goal of Operating a Datacenter
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 4
Datacenter
Staff
Software
(Business App, OS,
BSM, System
Mgmt)
External
Contracts
(outsourcers,
clouds, suppliers)
Facility
(energy, building,
etc.)
Hardware
(servers,
storage,
networking) Delivering
IT services
to users
A Well Known Reality
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 5
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
Compute Cores shipped
Servers shipped
4 per. Mov. Avg. (Compute Cores
shipped)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
Total Terabytes shipped
All data Western Europe; Sources: IDC EMEA Quarterly ESS and Server Trackers, 2Q15
(September 2015)
The Virtualization “Given”
6Source: IDC WW Server Virtualization Tracker; IDC Estimates; all data Western Europe
36% of all new servers
are virtualized in 2014
~70% excluding bare
metal environments
>8 million VMs
deployed in 2014
29% in 2012
~50% in 2012
~1.6 million
physical servers
deployed in 2014
What’s
Forcing
Change
7
The Alphabet of Change
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
Give me a… D
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 9
Mobile Users
•50% Growth
•3.8 Billion
•50% Penetration
Data Center
Cores
•2x Growth
•77 Billion
•10/Person
Data Growth
•4x Growth
•24ZBs
•760 TBs/Second
2018
Massive Size
Driven by
Consumers
+
∞
Combinations of
Technology
Visions, but not Only Visions
Idea Bank / iTaxi Pilot ATM-on-Demand in
Warsaw
Programmatic Marketing Company
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
Impact on IT Operations
Copyright 2014 IDC
Operation
Efficiencies
Deeper Customer
Relationships
Net-New Revenue
Streams
Geo-Dispersed &
Always Available
Extract Value from
Corporate Data
Faster Time to
Deployment
Business Benefits Data Center Impact
Give me an… S
12Source: European Integrated System Survey, total =400 (103, 137, 160)
Q. On average how
long (in days) does it
take to develop and
deploy a new
application?36
38
40
42
44
46
48
50
10 to 99 empl. 100 to 499 500+
Average days to
develop/deploy an
application
Winning Back Time
13Source: European Integrated System Survey, total =400
Q. Considering the
following mix of tasks,
over a given week,
what percentage of
total IT admin and
operations staff time
(across server,
networking and
storage infrastructure)
is spent on the
following?
16.9%
18.6%
14.1%
39.2%
11.2%
Provisioning, patching,
config management
New service request and
approval mgmt
Vendor and internal
meetings
Monitoring,
troubleshooting,
remediation
Innovation and new
projects
Power & Cooling
Mgmt & Administration
New Server Spending
Give me an… O
14
1995 2000
2005
2010
2015
OPEX/CAPEX Ratio
0.48 0.77
1.51
2.83
3.91
$94B
$123B
$138B
$206B
$272B
WW Server, P&C and
Administration Spending
3x
8x
15
Vs.
The New Wave
of
Convergence
16
Q. What do you see as the top two major
benefits of Integrated Systems? Please select
top two
Integrated Systems, convergence 1.0
ems Integrated Systems
Compute Nodes
Storage
Internal Fabric
Operating System
Virtualization SW
Systems Management
Middleware
Apps
Middleware-centric Database-centric
Compute Nodes
Storage
Internal Fabric
Operating System
Systems Management
Database
Integrated Systems
17
Source: European Storage Survey, 2015; N = 498
0% 5% 10% 15% 20% 25% 30%
Improved agility / faster resource
availability
Lower Total Cost of Ownership
Improved Utilization IT resources
Fewer management Tools
Improved IT staff Efficiency
Lower Maintenance Costs
Improved Disaster Recovery
Lower Power/Cooling Costs
Time of Choice for the IT Department
18
Challenges to integrated systems
27%
27%
30%
34%
35%
36%
37%
37%
0% 20% 40%
Lack of visibility into traffic patterns
Cost and doubt of ROI
Single point of failure
Hard to segregate and protect data
across multiple users
Resistance from IT domains
IT org not structured to implement
change
Concerns about app performance
requirements
Concerns about technical maturity
What do you see as the top two challenges in moving to
converged or integrated systems? N = 498 ; European
Storage Survey, 2015
In the process of evaluating converged or integrated systems, what other
alternatives, if any, did you consider to meet your compute, storage and network
requirements? : IDC WW Converged and Integrated Systems End-User Survey (N
+ 308)
5%
12%
20%
20%
33%
44%
0% 20% 40% 60%
Did not consider alternative
Integrated Systems from a
differenet vendor
Do nothing - rely on existing
resources
Outsourcing
SaaS, PaaS, IaaS
"Traditional" hardware IT
purchase
Alternatives Evaluated
Integrated Systems vs. Hyper-Converged
ems Integrated Systems
Compute Nodes
Storage
Internal Fabric
Operating System
Virtualization SW
Systems Management
Middleware
Apps
Middleware-centric Database-centric
Compute Nodes
Storage
Internal Fabric
Operating System
Systems Management
Database
Hyperconvergence
Converged Systems Integrated Systems
Compute Nodes
Storage
Internal Fabric
Operating System
Virtualization SW
Systems Management
Middleware
Apps
Middleware-centric Database-centric
Compute Nodes
Storage
Internal Fabric
Operating System
Virtualization SW
Systems Management
Compute Nodes
Storage
Internal Fabric
Operating System
Systems Management
Database
Storage Volumes Virt.
Storage Function Virt.
Networking Virt.
With mixed Flash/HDD
storage
19
Integrated Systems
 Core storage and compute
functionality in a single,
highly virtualized, solution
 All compute and storage
functions delivered through
the same server-based
resources
 Typically in clusters and
scale-out
Customer
Learnings
20
Why Hyperconvergence ?
Q. What were the key motivators to
deploy Hyper-converged systems?
Source: IDC European Storage Survey 2015, Europe (410 responses). 1Q15 (only companies using Hyperconverged) 21
20%
23%
26%
28%
30%
30%
33%
35%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Elimination of SAN
Reduction in Technical support staff
Different type of backup
Easier to secure budget
Easier disaster recovery
Ease of set up
Speed of deployment
Scalability 35%
33%
30%
Hyperconvergence: Improving CAPEX
22
14%
25%
27%
30%
0% 20% 40% 60% 80%
Network
Storage - SSD
Storage - HDD
Servers
Power
Datacenter Facility
Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015)
67%
51%
« The complexity of doing disaster recovery in a
traditional model is harder and it takes more time. But the
savings is more about cost, because we're buying
expensive SAN solutions. We'd probably have to buy
another SAN at the second site. . . We'd be at a million
dollars total of additional SAN costs »
IT Manager,
US company, Services
23 23
IT Staff Savings from Management of Hyperconvergence
Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015)
16%
50%
71%
82%
0% 25% 50% 75% 100%
Application development
Deployment - staff time
Management
Support
IT Staff Productivity Gains
«We needed two days with Nutanix to
deploy. The old way, it would take 1-2
months for a new storage system — we'd
have to buy storage separately, then buy
the compute separately, and then buy
networking gear, and only then could we
plug it all together”
IT Manager, Government (USA)
Market Data
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 24
30%
25%
18%
8%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1% - 10% 11% - 25% 26% - 50% 51% - 75% 76% - 100%
H-C Systems in 18 months
Hyper-converged and Storage Usage
Q. What percentage of your company's total storage is used for Hyper-
converged systems now and in 12/18 month? 25
40%
21%
8%
4%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1% - 10% 11% - 25% 26% - 50% 51% - 75% 76% - 100%
H-C Systems Now
Source: IDC European Storage Survey 2015, Europe 556 responses. 1Q15
12% 20%
26
0% 20% 40% 60% 80% 100% 120%
Hyperconverged Infrastructure
All Flash Arrays
Integrated Infrastructure & Platforms
ODM Direct Storage Systems
Hybrid Flash Arrays
Enterprise Networking Market
External Storage Market
Server Market
Total Infrastructure Market
New Industries & Technologies Drive
Market Growth 2015 Forecasted Growth in WW Spending
Heavily Influenced by New Brands
WW Hyperconverged Infrastructure
Market
$0.0B
$0.5B
$1.0B
$1.5B
$2.0B
2013 2014 2015 2016
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 27
+162%
+116%
+94%
Sources: Worldwide Hyperconverged Systems 2015–2019 Forecast (April 2015)
Do the Buyer
Homework
Measure
Goals vs.
Parameters
Key Recommendations for IT Buyers
28
1 3
Contrast and
compare with
cloud
2
Any questions?
For questions or feedback,
please e-mail or call us
Giorgio Nebuloni
gnebuloni@idc.com
+49 (0) 69 90502 112
@gnebuloni

IDC Nutanix - Hyperconvergence and the Pulling Forces in the Datacenter

  • 1.
    Hyperconvergence and thePulling Forces in the Datacenter Giorgio Nebuloni, IDC EMEA Nutanix .NEXT On Tour 2015
  • 2.
    Agenda  State ofthe Datacenter Union  What’s Forcing Change  The New Wave of Convergence  Customer Learnings  Market Data  Essential Guidance © IDC Visit us at IDC.com and follow us on Twitter: @IDC 2
  • 3.
  • 4.
    Goal of Operatinga Datacenter © IDC Visit us at IDC.com and follow us on Twitter: @IDC 4 Datacenter Staff Software (Business App, OS, BSM, System Mgmt) External Contracts (outsourcers, clouds, suppliers) Facility (energy, building, etc.) Hardware (servers, storage, networking) Delivering IT services to users
  • 5.
    A Well KnownReality © IDC Visit us at IDC.com and follow us on Twitter: @IDC 5 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Compute Cores shipped Servers shipped 4 per. Mov. Avg. (Compute Cores shipped) 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 Total Terabytes shipped All data Western Europe; Sources: IDC EMEA Quarterly ESS and Server Trackers, 2Q15 (September 2015)
  • 6.
    The Virtualization “Given” 6Source:IDC WW Server Virtualization Tracker; IDC Estimates; all data Western Europe 36% of all new servers are virtualized in 2014 ~70% excluding bare metal environments >8 million VMs deployed in 2014 29% in 2012 ~50% in 2012 ~1.6 million physical servers deployed in 2014
  • 7.
  • 8.
    The Alphabet ofChange © IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
  • 9.
    Give me a…D © IDC Visit us at IDC.com and follow us on Twitter: @IDC 9 Mobile Users •50% Growth •3.8 Billion •50% Penetration Data Center Cores •2x Growth •77 Billion •10/Person Data Growth •4x Growth •24ZBs •760 TBs/Second 2018 Massive Size Driven by Consumers + ∞ Combinations of Technology
  • 10.
    Visions, but notOnly Visions Idea Bank / iTaxi Pilot ATM-on-Demand in Warsaw Programmatic Marketing Company © IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
  • 11.
    Impact on ITOperations Copyright 2014 IDC Operation Efficiencies Deeper Customer Relationships Net-New Revenue Streams Geo-Dispersed & Always Available Extract Value from Corporate Data Faster Time to Deployment Business Benefits Data Center Impact
  • 12.
    Give me an…S 12Source: European Integrated System Survey, total =400 (103, 137, 160) Q. On average how long (in days) does it take to develop and deploy a new application?36 38 40 42 44 46 48 50 10 to 99 empl. 100 to 499 500+ Average days to develop/deploy an application
  • 13.
    Winning Back Time 13Source:European Integrated System Survey, total =400 Q. Considering the following mix of tasks, over a given week, what percentage of total IT admin and operations staff time (across server, networking and storage infrastructure) is spent on the following? 16.9% 18.6% 14.1% 39.2% 11.2% Provisioning, patching, config management New service request and approval mgmt Vendor and internal meetings Monitoring, troubleshooting, remediation Innovation and new projects
  • 14.
    Power & Cooling Mgmt& Administration New Server Spending Give me an… O 14 1995 2000 2005 2010 2015 OPEX/CAPEX Ratio 0.48 0.77 1.51 2.83 3.91 $94B $123B $138B $206B $272B WW Server, P&C and Administration Spending 3x 8x
  • 15.
  • 16.
  • 17.
    Q. What doyou see as the top two major benefits of Integrated Systems? Please select top two Integrated Systems, convergence 1.0 ems Integrated Systems Compute Nodes Storage Internal Fabric Operating System Virtualization SW Systems Management Middleware Apps Middleware-centric Database-centric Compute Nodes Storage Internal Fabric Operating System Systems Management Database Integrated Systems 17 Source: European Storage Survey, 2015; N = 498 0% 5% 10% 15% 20% 25% 30% Improved agility / faster resource availability Lower Total Cost of Ownership Improved Utilization IT resources Fewer management Tools Improved IT staff Efficiency Lower Maintenance Costs Improved Disaster Recovery Lower Power/Cooling Costs
  • 18.
    Time of Choicefor the IT Department 18 Challenges to integrated systems 27% 27% 30% 34% 35% 36% 37% 37% 0% 20% 40% Lack of visibility into traffic patterns Cost and doubt of ROI Single point of failure Hard to segregate and protect data across multiple users Resistance from IT domains IT org not structured to implement change Concerns about app performance requirements Concerns about technical maturity What do you see as the top two challenges in moving to converged or integrated systems? N = 498 ; European Storage Survey, 2015 In the process of evaluating converged or integrated systems, what other alternatives, if any, did you consider to meet your compute, storage and network requirements? : IDC WW Converged and Integrated Systems End-User Survey (N + 308) 5% 12% 20% 20% 33% 44% 0% 20% 40% 60% Did not consider alternative Integrated Systems from a differenet vendor Do nothing - rely on existing resources Outsourcing SaaS, PaaS, IaaS "Traditional" hardware IT purchase Alternatives Evaluated
  • 19.
    Integrated Systems vs.Hyper-Converged ems Integrated Systems Compute Nodes Storage Internal Fabric Operating System Virtualization SW Systems Management Middleware Apps Middleware-centric Database-centric Compute Nodes Storage Internal Fabric Operating System Systems Management Database Hyperconvergence Converged Systems Integrated Systems Compute Nodes Storage Internal Fabric Operating System Virtualization SW Systems Management Middleware Apps Middleware-centric Database-centric Compute Nodes Storage Internal Fabric Operating System Virtualization SW Systems Management Compute Nodes Storage Internal Fabric Operating System Systems Management Database Storage Volumes Virt. Storage Function Virt. Networking Virt. With mixed Flash/HDD storage 19 Integrated Systems  Core storage and compute functionality in a single, highly virtualized, solution  All compute and storage functions delivered through the same server-based resources  Typically in clusters and scale-out
  • 20.
  • 21.
    Why Hyperconvergence ? Q.What were the key motivators to deploy Hyper-converged systems? Source: IDC European Storage Survey 2015, Europe (410 responses). 1Q15 (only companies using Hyperconverged) 21 20% 23% 26% 28% 30% 30% 33% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% Elimination of SAN Reduction in Technical support staff Different type of backup Easier to secure budget Easier disaster recovery Ease of set up Speed of deployment Scalability 35% 33% 30%
  • 22.
    Hyperconvergence: Improving CAPEX 22 14% 25% 27% 30% 0%20% 40% 60% 80% Network Storage - SSD Storage - HDD Servers Power Datacenter Facility Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015) 67% 51% « The complexity of doing disaster recovery in a traditional model is harder and it takes more time. But the savings is more about cost, because we're buying expensive SAN solutions. We'd probably have to buy another SAN at the second site. . . We'd be at a million dollars total of additional SAN costs » IT Manager, US company, Services
  • 23.
    23 23 IT StaffSavings from Management of Hyperconvergence Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015) 16% 50% 71% 82% 0% 25% 50% 75% 100% Application development Deployment - staff time Management Support IT Staff Productivity Gains «We needed two days with Nutanix to deploy. The old way, it would take 1-2 months for a new storage system — we'd have to buy storage separately, then buy the compute separately, and then buy networking gear, and only then could we plug it all together” IT Manager, Government (USA)
  • 24.
    Market Data © IDCVisit us at IDC.com and follow us on Twitter: @IDC 24
  • 25.
    30% 25% 18% 8% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1% - 10%11% - 25% 26% - 50% 51% - 75% 76% - 100% H-C Systems in 18 months Hyper-converged and Storage Usage Q. What percentage of your company's total storage is used for Hyper- converged systems now and in 12/18 month? 25 40% 21% 8% 4% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1% - 10% 11% - 25% 26% - 50% 51% - 75% 76% - 100% H-C Systems Now Source: IDC European Storage Survey 2015, Europe 556 responses. 1Q15 12% 20%
  • 26.
    26 0% 20% 40%60% 80% 100% 120% Hyperconverged Infrastructure All Flash Arrays Integrated Infrastructure & Platforms ODM Direct Storage Systems Hybrid Flash Arrays Enterprise Networking Market External Storage Market Server Market Total Infrastructure Market New Industries & Technologies Drive Market Growth 2015 Forecasted Growth in WW Spending Heavily Influenced by New Brands
  • 27.
    WW Hyperconverged Infrastructure Market $0.0B $0.5B $1.0B $1.5B $2.0B 20132014 2015 2016 © IDC Visit us at IDC.com and follow us on Twitter: @IDC 27 +162% +116% +94% Sources: Worldwide Hyperconverged Systems 2015–2019 Forecast (April 2015)
  • 28.
    Do the Buyer Homework Measure Goalsvs. Parameters Key Recommendations for IT Buyers 28 1 3 Contrast and compare with cloud 2
  • 29.
    Any questions? For questionsor feedback, please e-mail or call us Giorgio Nebuloni gnebuloni@idc.com +49 (0) 69 90502 112 @gnebuloni