The document discusses a webinar comparing the total cost of ownership (TCO) of hyperconverged infrastructure and public cloud solutions. It presents a TCO model comparing a SimpliVity hyperconverged cluster to an equivalent Amazon EC2 cloud configuration. Over 3 years, the analysis found that the SimpliVity solution had a TCO 22-49% lower than the AWS configuration. Key factors that make hyperconverged infrastructure more cost-effective include lower upfront capital costs through converged hardware, simplified management and expansion, and efficiency features. While public cloud remains viable for some workloads, the economics are no longer a given compared to hyperconverged appliances according to the analysis.

1. Copyright © 2016 SimpliVity. All rights reserved.
1
Thursday 31st March 2016
8am PST / 11am EST
Follow today’s
conversation
#Hyperconvergence
Is Hyperconvergence a Viable Alternative to the Public Cloud?

2. © 2016 Evaluator Group, Inc.
Speakers
 Eric Slack
Analyst, Evaluator Group
 Rich Kucharski
VP Solutions Architecture, Simplivity
 Host – Stephen Worn
CTO, DatacenterDynamics

3. © 2016 Evaluator Group, Inc.
4/11/2016 3
Pre-registration surveys
67%
22%
11%
Are you planning a hyperconverged
implementation?
No, not at this time
Yes, we are in the exploring
phase
Yes, we are in the planning
phase

4. © 2016 Evaluator Group, Inc.
4/11/2016 4
Pre-registration surveys
31%
26%
18%
25%
Are you considering a move to the cloud in
place of on-premises infrastructure?
No
Undecided
Yes, for all workloads
Yes, for specific workloads

5. © 2016 Evaluator Group, Inc.
TCO Comparison:
Hyperconverged vs
Cloud
Eric Slack, Sr. Analyst
Evaluator Group

6. © 2016 Evaluator Group, Inc.
The Cloud
Now – things have changed
• Hyper-scale tech
• Cloud is now an option for IT
4/11/2016 6
Dot.com era
• Clouds weren’t really viable
• Bandwidth unavailable
• Infrastructure $$$ for providers

7. © 2016 Evaluator Group, Inc.
Cloud Economics
4/11/2016 7
Now the cloud does make sense
• An option IT didn’t have a dozen+ years ago
• A tool for a lot of applications
• An easy choice - but has to be economical,
compared to on-site alternatives
When companies look at new alternatives,
like the cloud, one of the tools they use is a
TCO comparison

8. © 2016 Evaluator Group, Inc.
Total Cost of Ownership
4/11/2016 8
TCO is a method to calculate cost of complex systems,
like IT infrastructures, where the cost of procurement
(visible cost), by itself, is not accurate enough.
It was (and is) used by
companies to determine
viability of the cloud option.

9. © 2016 Evaluator Group, Inc.
Total Cost of Ownership
4/11/2016 9
TCO incorporates actual implementation costs –
not just purchase price
• System Design – incl component choices
• Evaluation - bake off
• Installation – put it in
• Integration – make it work
• Training – make it work for users
• OPEX – operational costs (incl updates,
expansion, ‘care and feeding’)

10. © 2016 Evaluator Group, Inc.
Cloud Assumption
4/11/2016 10
It’s easy to see the cloud as default IT solution
It is the default technology for:
email, DR, file sharing, etc.
But does that mean it’s the best
solution for everything?
The cloud
costs less!

11. © 2016 Evaluator Group, Inc.
Hyperconverged Appliances
4/11/2016 11
Hyper-scalers changed the technology baseline for
cloud infrastructures.
Now, Hyperconverged Appliances have changed
what on-site infrastructure looks like
- and transformed the cost
model as well

12. © 2016 Evaluator Group, Inc.
Hyperconverged Appliances
4/11/2016 12
What is a Hyperconverged Appliance?

13. © 2016 Evaluator Group, Inc.
Hyperconverged Appliances
4/11/2016 13
Hyperconverged infrastructures change the
traditional TCO calculations that have been used to
justify cloud decisions. Specifically:
• Greatly simplify the design process
• “Plug and play” = very little implementation
• Integration with hypervisor management simplifies
operation
• VM-level focus simplifies storage-related tasks
• Scale-out architecture = incremental growth

14. © 2016 Evaluator Group, Inc.
Hyperconverged vs Cloud TCO Model
4/11/2016 14
OmniCube CN-3400 Hyperconverged Appliance
• 3-node cluster using N+1 redundancy
• 36-month one-time cost amortization
• Committed to 99.999% (“3 9s”) uptime
Amazon EC2 cloud compute service
• HA configuration (99.9 % uptime)
• 3-year “All Up Front, Reserved” pricing
• Initial fees amortized over 36 mos

15. © 2016 Evaluator Group, Inc.
Hyperconverged vs Cloud TCO Model
4/11/2016 15
Amazon EC2 Service (US-East)
• Compute: “M3.medium” instance, 1 vCPU, 3.7GB
memory, 100% utilized
• EBS Volumes*: 100GB of “General Purpose SSD” storage
• EBS IOPS*: 300 IOPS for this 100GB
• EBS Snapshots*: 10% daily change, 30-day retention
• AWS Data Transfer In: 0.5TB per month, per 103 VMs
• AWS Data Transfer Out: 4.5TB per month, per 103 VMs
• AWS Support: Business Support for all AWS
services
* for each instance

16. © 2016 Evaluator Group, Inc.
Hyperconverged vs Cloud TCO Model
4/11/2016 16
SimpliVity Cluster
• 3-node cluster supporting 206 VMs = 2 active nodes
(103 VMs each), one redundant node
• Cluster could be expanded by adding more active nodes
to support up to 515 VMs
• 3-year lifespan for infrastructure – typical for IT systems
• OmniCube acquisition price – the list price, less a
standard discount, for three SimpliVity CN-3400 nodes
required for an N+1 configuration.

17. © 2016 Evaluator Group, Inc.
Hyperconverged vs Cloud TCO Model
4/11/2016 17
SimpliVity Cluster
• OmniCube maintenance – the 3-year maintenance cost
for these nodes
• vSphere licenses – the 3-year cost of a hypervisor license
for each 2-CPU node, assuming a 10% discount off list
• vSphere support – the cost of hypervisor support for
licenses required for a given configuration
• Power, cooling and rack space – the 3-year data center
facility cost assuming $100 per node, per month

18. © 2016 Evaluator Group, Inc.
IT Administrative Overhead
4/11/2016 18
Calculation to arrive at cost for running each
OmniCube node:
Hourly cost of fully burdened employee:
($150,000 per year = $75/hour)
* 1 hour per week (each node)
* 52 weeks
* 3 years

19. © 2016 Evaluator Group, Inc.
Cost for Baseline Configuration
4/11/2016 19

20. © 2016 Evaluator Group, Inc.
Scaling the Infrastructure
4/11/2016 20

21. © 2016 Evaluator Group, Inc.
Cumulative Savings
4/11/2016 21
$885K
$1.14M
$1.74M
AWS
SimpliVity
SimpliVity TCO 22% to 49% Less Than AWS Over 3 Years

22. © 2016 Evaluator Group, Inc.
Why Hyperconverged TCO is Lower
4/11/2016 22
Capital expenditures
• Converge server, storage functions
• Commodity hardware
• Simplify design, implementation
• Efficiency features
Operating expenses
• Integrated management
• VM-centric operation
• Simplified expansion

23. © 2016 Evaluator Group, Inc.
Conclusion
4/11/2016 23
Cloud Assumption is out of date
HCAs changed the cost environment
• Baseline costs are close
• Scale-out costs are not close
Cloud is still a viable option for some applications –
but economics are not a given, compared with HCAs

24. © 2016 Evaluator Group, Inc.
Poll Question
4/11/2016 24
Which of the following is the most important for
considering a move to the public cloud?
• Self-service provisioning
• Elasticity/scale resources up or down as needed
• Utility service model
• Agility
• Cost/TCO

25. Copyright © 2016 SimpliVity. All rights reserved.
25
Bringing Cloud Agility and Economics to Your Data Center
Rich Kucharski
VP Solutions Architecture

26. Copyright © 2016 SimpliVity. All rights reserved.
26
Servers + VMware
Storage Switch
HA Shared Storage
SSD Array
Backup Appliance
WAN Optimization
Cloud Gateway
Storage Caching
Backup Apps
Legacy Stack
Evolution of Convergence

27. Copyright © 2016 SimpliVity. All rights reserved.
27
Servers + VMware
Storage Switch
HA Shared Storage
SSD Array
Backup Appliance
WAN Optimization
Cloud Gateway
Storage Caching
Backup Apps
Legacy Stack Convergence 1.0
Integrated Systems
Pre-integrated
storage and
server
Evolution of Convergence
Enterprise
Capabilities
1. Data protection
2. Data efficiency
3. Performance
4. Global Unified
Management
Tier-1 use cases

28. Copyright © 2016 SimpliVity. All rights reserved.
28
Cloud
Economics
1. Simplicity
2. Low cost
3. Agility and
elasticity
Servers + VMware
Storage Switch
HA Shared Storage
SSD Array
Backup Appliance
WAN Optimization
Cloud Gateway
Storage Caching
Backup Apps
Legacy Stack Convergence 2.0
Partial Convergence
Converge only
storage and
server
Convergence 1.0
Integrated Systems
Pre-integrated
storage and
server
Evolution of Convergence
Enterprise
Capabilities
1. Data protection
2. Data efficiency
3. Performance
4. Global Unified
Management
VDI, Tier-2/3Tier-1 use cases

29. Copyright © 2016 SimpliVity. All rights reserved.
29
Servers + VMware
Storage Switch
HA Shared Storage
SSD Array
Backup Appliance
WAN Optimization
Cloud Gateway
Storage Caching
Backup Apps
Legacy Stack Convergence 2.0
Partial Convergence
Converge only
storage and
server
Convergence 3.0
Hyperconvergence
The Best of
Both Worlds
Hyperconverge
entire stack
Convergence 1.0
Integrated Systems
Pre-integrated
storage and
server
Evolution of Convergence
Enterprise
Capabilities
1. Data protection
2. Data efficiency
3. Performance
4. Global Unified
Management
Cloud
Economics
1. Simplicity
2. Low cost
3. Agility and
elasticity
VDI, Tier-2/3Tier-1 use cases

30. Copyright © 2016 SimpliVity. All rights reserved.
30
Vision
Servers
Storage switch
HA shared storage
Cloud gateway
SSD array
Management
Orchestration
Hypervisor
Legacy IT Infrastructure
Storage caching
Backup appliance
WAN optimization
Data Protection
Applications

31. Copyright © 2016 SimpliVity. All rights reserved.
31
Vision
Servers
Storage switch
HA shared storage
Cloud gateway
SSD array
Management
Orchestration
Hypervisor
The Future
All IT infrastructure
below the hypervisor
Anywhere:
Public Cloud, Private Cloud, ROBO
Legacy IT Infrastructure
Powered by
OmniStack
Data Virtualization Platform
Storage caching
Backup appliance
WAN optimization
Data Protection
Applications
Any x86 Platform

32. Copyright © 2016 SimpliVity. All rights reserved.
32
Vision
Servers
Storage switch
HA shared storage
Cloud gateway
SSD array
Management
Orchestration
Hypervisor
The Future
All IT infrastructure
below the hypervisor
Anywhere:
Public Cloud, Private Cloud, ROBO
Legacy IT Infrastructure
3x TCO Reduction
Powered by
OmniStack
Data Virtualization Platform
Storage caching
Backup appliance
WAN optimization
Data Protection
Applications
The Best of Both Worlds:
Enterprise Capabilities with Cloud Economics
Any x86 Platform

33. Copyright © 2016 SimpliVity. All rights reserved.
33
SimpliVity’s Architecture: OmniStack Data Virtualization Platform
Simple, click-driven interface
No LUNS, shares, or volumes
Single view of all data centers
Eliminates need for specialists
Saves time and labor
Simplifies ROBOs and distributed
deployments
Global Unified Management
Instant VM recovery
Improves RTOs and RPOs
Full logical backups at speed of
snapshots
Simplified disaster recovery
between data centers
Built-in Data Protection
 Global inline dedupe across all
storage tiers, once and forever
 Shared resource pooling
 40:1 average data efficiency
 Saves on storage and bandwidth
 Increases performance by
eliminating IOPS
Accelerated Data Efficiency

34. Copyright © 2016 SimpliVity. All rights reserved.
34
About SimpliVity

35. Copyright © 2016 SimpliVity. All rights reserved.
35
Founded in 2009: 3.5 years of
development:
all code purpose built and “home grown”
Mission: Simplify IT Infrastructure
Indirect Global Channel
Top tier investors: $276M raised
SimpliVity Introduction
1. Data Protection
2. Data Efficiency
3. Performance
4. Global Unified
Management
Best of Breed
Enterprise
Capabilities
1. Simplicity
2. Low-cost
3. Agility &
elasticity
Cloud
Economics
The Best of
Both Worlds
Revenue Units Shipped by Quarter

36. Copyright © 2016 SimpliVity. All rights reserved.
36
Our Customers
> 4,000 Systems shipped … globally, across all customer segments
OtherGlobal 2000 Healthcare Financial
Services
Consumer
Leading Luxury
Brand
Top 5 Global
Consumer
Electronics
Government and
Higher Education
Leading
Indian
Bank
Top 5 US
Government
Agency
Leading
Consulting Firm

37. Copyright © 2016 SimpliVity. All rights reserved.
3737
>1/3 with
>100:1
Data Efficiency
SimpliVity Enables
Dramatic Efficiency Benefits
Greater than 300:1: 7%
200:1 to 300:1 9%
100:1 to 200:1: 19%
50:1 to 100:1: 30%
Up to 50:1: 35%
Customer Results
>1/2 see
>50%
Performance
Improvements
SimpliVity Provides Dramatic
Application Performance
Improvements
Greater than 75%: 17%
50% to 75%: 33%
25% to 50%: 38%
Up to 25%: 12%
65% midmarket customers run
100% of virtualized workloads
on SimpliVity
Hyperconverged Infrastructure
for Business Applications
Which application types are you running or planning to run on SimpliVity?
24%
50%
79%
39%
12%
41%
48%
14%
21%
Oracle
Microsoft Exchange
Microsoft SQL Server
Microsoft SharePoint
SAP
Industry-specific application
(e.g., 911 system, healthcare
application, legal case
management, CAD/CAM, etc.)
E-Commerce
Other
Note: this is a multiple-choice question – response percentages may not add up to 100
VDI
Source: TechValidate and internal research

38. Copyright © 2016 SimpliVity. All rights reserved.
38
Bringing Cloud Agility and
Economics to Your Data Center

39. Copyright © 2016 SimpliVity. All rights reserved.
39
Traditional Model Cloud Model
Predictable performance
Data privacy & protection
Governance and control
Lower cost
Flexibility for changing demand
Fast, simple deployment
IT Providers IT Consumers
Perceived Tradeoffs and Historic Tensions

40. Copyright © 2016 SimpliVity. All rights reserved.
40
What is Cloud?
1) Self-service provisioning
• Cloud consumers choose and deploy resources from a defined menu of options
2) Elastic infrastructure
• Agility to respond to changing business needs
3) Service-driven operating model
• Usage metering, chargebacks, and menu pricing (dollars per VM per month)
4) Location
• On-premises (private), off-premises (public), or both (hybrid)

41. Copyright © 2016 SimpliVity. All rights reserved.
41
• Application owners request and manage VMs directly
• Supported by policy-driven orchestration & automation
• Extends full management of data to application owners
Accelerate service delivery
Self-Service Provisioning
Enterprise
Application Owner
1. Request VMs
2. Clone VMs
3. Backup/ restore
4. Test DR

42. Copyright © 2016 SimpliVity. All rights reserved.
42
Initial Pilot Production
Rollout
Expanded
Rollout
250VMs
500VMs
1000VMs
Rapid deployment of hyperconverged building blocks
Elastic Infrastructure

43. Copyright © 2016 SimpliVity. All rights reserved.
43
Consistent linear scale as nodes and VMs are added
Predictable Performance With Scale
Source: ESG Independent Lab Validation
Average Response
Time
Response Time
Threshold

44. Copyright © 2016 SimpliVity. All rights reserved.
44
Enterprise-class resilience
Maximizing Uptime
Node-level
 Hardware RAID
 Component-level
redundancy &
protection
Data Center
 Instant VM recovery
 Data replication
 High availability
Federation
 Site-to-site DR
 Remote backup &
recovery

45. Copyright © 2016 SimpliVity. All rights reserved.
45
Native backup and bandwidth-efficient replication.
Preventing Data Loss
Of customers reduced recovery time
from days or hours to minutes
57%
HyperProtected Guarantee
60 seconds or less on average for local backup or
restore of a 1TB VM

46. Copyright © 2016 SimpliVity. All rights reserved.
46
Economics of Public Cloud
SimpliVity
• Hardware and maintenance
• VMware licensing and support
• Power, cooling, rack-space
• FTE labor allocation
Amazon Web Services
• Pricing as of January 2016
• M3.Medium instance
• 100GB SSD, Fully Utilized
• Daily backup schedule (10%),
retained for 30 days
• 9TB Transfer Out per 206 VMs (~30
Mbps per VM)
Independent 3-Year TCO

47. Copyright © 2016 SimpliVity. All rights reserved.
47
Choice of Private, Public, and Hybrid Clouds
Enabling Cloud Choice
Private Cloud
• Cloud economics and simplicity
onsite
• Seamless integration and
movement of workloads
Service
Provider Cloud
• DR as a service (DRaaS)
• Infrastructure as a service (IaaS)
• Desktops as a service (DaaS)

48. Copyright © 2016 SimpliVity. All rights reserved.
48
Challenging Perceived Tradeoffs: On-Premises vs. Public Cloud
On-Premises Public Cloud
Predictable performance
Data privacy and protection
Governance and control
Lower cost
Flexibility for changing demand
Fast and simple deployment

49. Copyright © 2016 SimpliVity. All rights reserved.
49
Roundtable Debate
Eric Slack
Analyst, Evaluator Group
Rich Kucharski
VP Solutions Architecture, Simplivity
Stephen Worn
CTO, DatacenterDynamics

50. Copyright © 2016 SimpliVity. All rights reserved.
50
Thank you!
1.Download the webinar ‘on demand’
http://www.datacenterdynamics.com/is-hyperconvergence-a-viable-alternative-to-the-
public-cloud/95688.article
2. Download the White Paper
Available Now to Download in the environment
3.Keep up to date with DatacenterDynamics
https://account.datacenterdynamics.com/register
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