The document summarizes an initial presentation for a server consolidation project at a customer in Cincinnati, OH. It includes an agenda covering an overview of the project, a review of performance metrics and architecture/financial assumptions, and next steps. It also provides details on the business goals for consolidation, an impact assessment using VMware tools, scenarios considered, and financial findings showing a three year payback period and ROI for consolidation options.

1. Customer in Cincinnati, OH
Windows® Server Consolidation Project
Initial Presentation
David Koester Account Manger
Jim Wallburg Project Manager
Tom Lorenz Technology Architect
Mike Fee IT Financial Consultant November 14, 2008
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2. Agenda
• Introductions
• Overview of Project
• Review and discuss captured performance metrics
• Review initial analysis and confirm architecture assumptions
• Review initial analysis and confirm financial assumptions
• Solicit changes to prepare for the final presentation and report
• Next Steps
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3. Business Goals of Consolidation
•Server hardware approaching end of life
•Control data center footprint
•Reduce electricity and cooling expense
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4. Consolidation Impact Assessment
• Considers both the Technical and Financial Impact of Server and
Storage Consolidation
• Uses the VMware Capacity Planner tool
– Non-disruptively captures hardware and software inventory from current
environment
– Measures actual utilization of servers and records the peak workloads
– Uses peak workloads to create consolidation scenario(s)
– Used data collected by VMware from July 19 to September 5, 2008
• Model Financial Impact using Brigham-Gapenski Methodology
– Based on Intermediate Financial Management, 5th Edition (1996)
– Follows the model for evaluating asset replacement “Investment Decisions”
– Provides a familiar analysis for those in finance who support IT
– Develops a Total Cost of Ownership (TCO) baseline of current environment
– Compares the baseline to the TCO of the recommended environment(s)
– Provides a detailed Return On Investment analysis
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5. High Level View – A Dashboard
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6. Inventory Details - Chassis
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7. Inventory Details – CPU
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8. Inventory Details – NIC’s
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9. Weekly Loads – Business Hours
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10. Weekly Loads – Peak Hours
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11. Processor Peak Load & Peak Hour
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12. Vintage System
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13. Created Scenarios
Consolida
Servers Not New tion
Name In Consolidated Consolidated Servers Ratios x:1
All servers to BL460c 3.0Ghz (2-QC)
32GB 33 33 0 3 (*) 10
All servers to DL380 G5 3.0Ghz (2-QC)
32GB 33 33 0 3 (*) 10
All servers to BL460c 3.0Ghz (2-QC)
16GB 33 32 1 5 >6
All servers to DL380 G5 3.0Ghz (2-QC)
16GB 33 32 1 5 >6
* NOTE: Add (N+1) BL460c Server for redundancy
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14. Defining Target Server and Thresholds
BL460c 2QC 32GB Servers
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15. Consolidation Recommendations Server Assignments
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16. Server Disk Inventory
Path Type Total Size (MB) Total Free (MB) Count
C: NTFS 1,557,806 1,090,814 33
D: FAT32 13,134 9,964 1
D: NTFS 503,876 395,683 9
D: UDF 445 0 1
Totals 2,075,261 1,496,461
Total Used Space 578,800
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17. Current External Storage Capacity
Path Type Total Size (MB) Total Free (MB) Count
E: NTFS 4,990,394 2,830,960 18
F: NTFS 1,647,389 508,033 6
G: NTFS 2,024,914 835,385 8
H: NTFS 2,485,956 150,833 5
I: NTFS 2,919,520 973,370 5
J: NTFS 669,984 254,506 4
K: NTFS 389,984 146,663 4
L: NTFS 558,357 261,729 4
All Local and Local Attached Storage = 3TB
M: NTFS 629,978 378,900 3
N: NTFS 629,978 356,598 3
O: NTFS 757,674 156,897 4
P: NTFS 374,416 321,211 3
Q: NTFS 147,352 128,076 3
R: NTFS 139,424 137,218 2
T: NTFS 230,227 22,027 3
U: NTFS 416,561 255,711 2
V: NTFS 842,232 328,476 3
W: NTFS 139,973 104,840 1
Z: NTFS 476,938 140,368 1
External Storage 20,471,251 8,291,801
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18. Example C3000, C7000, EVA4400 Rack Placement
C7000 Chassis EVA4400 C3000 Chassis
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19. End of Technical Portion
Questions?
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20. Financial Assumptions
Windows Server Budget (built from following)
1. System Administration
2. Growth
3. Lifecycle Management / Replacement
4. Maintenance
5. Power and Cooling
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21. Financial Assumptions (continued)
System Administration Windows Server Budget
1. Three (3) Full Time Equivalent (FTE) for Core Windows System
Management (50 servers)
2. 100% utilized for actual server management
3. $75,000 assumed average annual fully burdened cost per FTE
4. Prorated to the actual number of servers modeled for each
consolidation scenario
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22. Financial Assumptions (continued)
Growth and Replacement Budget
1. 8% net new physical server annual growth rate
2. 6.3% Lifecycle Management rate (16 years)
a) Average four year expected useful life
b) Using one fourth of servers as candidates for replacements
c) IT actually replaces 25% of the replacement candidates
3. $5,500 average current server cost
a) Hardware only
b) Includes any warranty uplift
c) No OS, middleware, application, etc.
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23. Financial Assumptions (continued)
Maintenance Budget
1. 24 months average server age calculated from Average
Server CPU MHz (2647)
2. Servers greater than 36 months in age
a. On average calculated to be 24.8% of total
b. Using $0 per server per year
3. Servers less than or equal to 36 months in age
a. On average calculated to be 75.2% of total
b. Using $0 per server per year
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24. Financial Assumptions (continued)
Power and Cooling Budget
 Not Assessed to IT Budget – Included in Analysis
1. $0.09 per KWH
2. Use server plate input wattage
 $684.11 average per
existing server per year (33)
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25. Financial Assumptions (continued)
Financial Metrics
1. Model of Future Servers
a. All growth servers are implemented via virtualization
b. Model accounts for additional VI3 Host Servers for years two
and three
2. Recommended environment gear is purchased up front i.e.
implementation is completed over the course of first year
3. IT budget assessed using five year straight line method
4. Tax rate 25% and 12% Hurdle Rate
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26. Financial Findings
Three Year TCO Baseline Summary – 33 Servers
Breakdown:
Sys Admin Costs: $481,140 (~17 servers : 1 FTE ratio)
Break/Fix Maintenance: $0
IT Assessed Charge: $31,037
Power / Cooling: $73,145
Current TCO = $585,322
Growth (Capital): $43,560 (~3 servers / year)
Refresh/Replace (Capital): $34,031 (~2 servers / year)
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27. Financial Findings (continued)
Three Year Payback Summary – 33 Servers
Current TCO = $585,322
HW/SW 3 Year IT Budget Payback ROI
Scenario Cost1 TCO2 Reduction (months) (IRR%)
BL460c 2-QC 32GB $222,327 $527,291 $58,031 31.2 8.3
4 New ESX Hosts
3000 Chassis
EVA4400 22TB Storage
BL460c 2-QC 32GB $225,559 $529,230 $56,092 31.5 7.7
4 New ESX Hosts
7000 Chassis
EVA4400 22TB Storage
DL380G5 2-QC 32GB $204,955 $525,733 $59,589 30.3 10.2
4 New ESX Hosts
EVA4400 22TB Storage
1Includes budgetary pricing for server, software, support and storage
capacity ($130,636),
2Includes estimated implementation budget, $33,000
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28. Financial Findings (continued)
Three Year TCO Proposed Summary – BL460 2-QC 32GB
Breakdown:
Sys Admin Costs: $379,421
Break/Fix Maintenance: $0
IT Assessed Charge: $133,396
Power / Cooling: $14,474
Proposed TCO = $527,291
Growth (Capital): $0 (0 Yr 2; 0 Yr 3)
Refresh/Replace (Capital): $0
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29. Financial Findings (continued)
Three Year Power and Cooling Summary
Breakdown:
Today:
33 Existing Servers: $73,145
Proposed:
4 BL460 32GB $14,474
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30. Financial Findings (continued)
Three Year TCO Proposed Summary – BL460 2-QC 32GB
Breakdown:
Sys Admin Costs: $379,421
Break/Fix Maintenance: $0
Power / Cooling: $0
IT Assessed Charge: $133,396 Payback increases
from 31.2 months
Current TCO = $512,817 to 38.6 months
Growth (Capital): $0 (0 Yr. 2: 0 Yr. 3)
Refresh/Replace (Capital): $0
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31. Thank you for your time!
Questions?
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32. Server Administration Tasks (for reference only)
1. Deploying servers,
2. Software installation and configuration,
3. Physical installation (conventional server),
4. Proactive upgrading servers (patches/service packs/applications),
5. Monitoring,
6. Backup/Recovery,
7. Labor hours for unplanned downtime,
8. Problem resolution,
9. User Support,
10.Training, Security,
11.HW Procurement/Inventory, and
12.Miscellaneous (e-mail, staff meetings/reporting, etc.)
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