Successfully Selling Virtualization To SMBs Musheer Ahmad Infrastructure Practice
Agenda  Market Overview Identifying Opportunities Customer Presentation New SMB Packages Handling Objections PTG Infrastructure 2011 Goals
1/3 of SMBs have started virtualizing and  ~50%  are implementing in next 12 months 1 VMware has  3X  the market share in SMB as the nearest competitor SMBs express 3-to-1 brand preference for VMware VMware introduced vSphere pricing designed for SMBs VMware is launched a global SMB marketing campaign The SMB Virtualization Opportunity is Growing… 1. Source: Forrester Research, Inc., “The State of Emerging SMB Hardware Trends: 2008 To 2009,” February 29, 2009. $25B  Market Oppty
The Problem Overwhelming complexity >70% of IT budgets just to keep the lights on <30% of IT budgets goes to innovation and competitive advantage
Virtualization Mission – “Make the Plumbing Disappear!”  “ Make the IT plumbing disappear in the small and mid-sized business” Stop worrying about daily IT operations and start planning for the future Focus on ways to better service your customers  Have confidence that you can deploy new services faster, at a lower cost, and with less risk
SMB Sales Approach Containment approach -  An ongoing effort to virtualize new applications and manage growth of existing ones  Consolidation Approach -  One-time event that moves existing applications onto a fewer number of servers Availability Approach -  Introducing virtualization to increase application availability and data recoverability Ideal for customers looking for robust, affordable business continuity solutions New
The Customer Presentation
How does Virtualization Solve My Problems? Spend less of your budget on hardware, power, maintenance and administration Spend less time worrying about and reacting to downtime  VMware virtualization will get you 10x productivity on your servers VMware virtualization is the most cost-effective business continuity solution High Availability Data Recovery
How Do I Get 10x Productivity On My Servers? Hardware Virtualized World  Physical World Traditional x86 Architecture Legacy rule:  Run  only one  application per server because single application crashes result in OS or server failure Typical hardware utilization under 8% Virtualization:  New rule:  Run  multiple  applications per server because OS/applications are isolated from one another Typical hardware utilization 80%
VMware Impact on Small and Midsized Businesses Increase Staff Productivity Increase Application Availability Reduce Physical Infrastructure Cost 1 Increase Data Protection 2 3 4 3-Yr Cost Savings Opportunity* * VMware TCO Calculator 20 Servers 50 Servers $290k $774k 1 month Payback 3 month Payback
Immediate Savings on Server Consolidation ATER VMware Before VMware With VMware More applications per server = less servers to buy, power, and maintain Reduce Physical Infrastructure Cost 1 $200k+ 3-Yr Cost Savings! Source: VMware TCO Calculator –  www.vmware.com Before VMware With VMware Savings in $ Savings in % Servers 20 3 Utilization 8% 80% Server HW  3 -Yr Cost $208,000 $49,918 $158,082 76% Networking 3 -Yr Cost $17,649 $4,412 $13,237 75% Real Estate, Power & Cooling $97,000 $36,141 $60,819 74% VMware license and support cost $0 $5,706 ($5,706) Shared storage 3 -Yr Cost $0 $23,004 ($23,004) Total 3 Yr Capital Costs $322,649 $119,181 $203,468 $63% VMware VMware VMware
Get More Done with Existing Staff % of IT Staff Time Spent on Maintenance With VMware 24% Do more work with the same number of people = operating cost savings Drivers of productivity improvements: Zero downtime maintenance Built-in high availability Dynamic patching Instant provisioning Increase Staff Productivity 2 72% $85k+ 3-Yr Productivity Savings! Source: VMware TCO Calculator –  www.vmware.com Before VMware With VMware Savings in $ Savings in % Servers 20 3 Utilization 8% 80% Server Provisioning  3 -Yr Cost $26,065 $1,954 $24,111 93% Server Administration 3 -Yr Cost $139,971 $120,374 $19,597 14% Automated Patching with VMware Update Mgr $57,375 $15,501 $41,874 73% Total 3 Yr Staff Operating Costs $223,411 $137,829 $85,582 $38%
Keep Your Business Running Automatic detection and restart of failed servers Increase Application Availability 3 Detects server failures and initiates the new virtual machine restart on a different physical server  without  human intervention Average Downtime Costs* * Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time) How much does down time cost your business? Typical downtime per failure 4 hours Lost revenue per hour $14k* Lost staff productivity per hour  $50/hour Average failures per year 2 Savings per Year $120k
Ensures Data is Available and Recoverable Increase Data Protection 4 Built in data protection saves time and money  Simplifies administration Faster recovery times Save on storage costs with disk de-duplication Less downtime = higher staff productivity
Seamless Storage Integration NAS, iSCSI or SAN Storage NFS or VMFS Virtual machine data can be stored on local disks Storage can be shared between multiple virtual machines Local Storage Shared Storage  (NAS, iSCSI or SAN) Benefits:  Low cost, entry-level option for users without shared storage Recommended VMware Product:  Essentials  Benefits:  Enables virtualization features such as high availability, vMotion and DRS Enhanced scalability, management and performance Recommended  VMware Product:  Essentials Plus or  Advanced Acceleration Kit  ESX OS APP OS APP OS APP ESX OS APP OS APP OS APP
Which Package is Right for Your Customer?
Selecting the Right Package Wants to virtualize more than 3 physical servers Or will want to in the future Customer Needs Recommended Product Will not want to virtualize than 3 physical servers And won’t in the future Is interested value added features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion or Is NOT interested features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion or Vmware Advanced Acceleration Kit Microsoft Hyper-V Microsoft Hyper-V VMware Enterprise Plus Acceleration Kit
Handling Objections
What Puts VMware Ahead of Microsoft? Most Trusted, Reliable, Robust  VMware is the proven market leader in its 4th generation product.  Easiest to deploy application uptime and data protection  FT, Data Recovery with de-duplication, HA & VMotion Most Cost Effective  Lowest cost per application – the real way to measure cost Low entry price with Essentials packages for small IT environments
All My Eggs in One Basket? “ It seems risky loading up so many apps on one server. What if the server fails or one of the apps?”  Response Failure to an application on one virtual machine does not affect other virtual machines on the same physical  server VMware High Availability and Data Recovery protect your application workloads and data in the event of unplanned downtime.
I’m Already Using Open Source, Why Buy?  Business continuity functionality Fault Tolerance High Availability Data Recovery Centralized management of virtual machines Save significant administration time Update and patch all servers simultaneously
Plan for 2011 $ $ ??? K $ $ ??? K Business Performance $ ??? K plan for 2011  Direct Staffing  Projects Rajat Akash + Prosoft Team VMware Microsoft ??? consultants  @ 100/hr ??? Projects @ ??K
Thank you!

VM Ware Market Analysis

  • 1.
    Successfully Selling VirtualizationTo SMBs Musheer Ahmad Infrastructure Practice
  • 2.
    Agenda MarketOverview Identifying Opportunities Customer Presentation New SMB Packages Handling Objections PTG Infrastructure 2011 Goals
  • 3.
    1/3 of SMBshave started virtualizing and ~50% are implementing in next 12 months 1 VMware has 3X the market share in SMB as the nearest competitor SMBs express 3-to-1 brand preference for VMware VMware introduced vSphere pricing designed for SMBs VMware is launched a global SMB marketing campaign The SMB Virtualization Opportunity is Growing… 1. Source: Forrester Research, Inc., “The State of Emerging SMB Hardware Trends: 2008 To 2009,” February 29, 2009. $25B Market Oppty
  • 4.
    The Problem Overwhelmingcomplexity >70% of IT budgets just to keep the lights on <30% of IT budgets goes to innovation and competitive advantage
  • 5.
    Virtualization Mission –“Make the Plumbing Disappear!” “ Make the IT plumbing disappear in the small and mid-sized business” Stop worrying about daily IT operations and start planning for the future Focus on ways to better service your customers Have confidence that you can deploy new services faster, at a lower cost, and with less risk
  • 6.
    SMB Sales ApproachContainment approach - An ongoing effort to virtualize new applications and manage growth of existing ones Consolidation Approach - One-time event that moves existing applications onto a fewer number of servers Availability Approach - Introducing virtualization to increase application availability and data recoverability Ideal for customers looking for robust, affordable business continuity solutions New
  • 7.
  • 8.
    How does VirtualizationSolve My Problems? Spend less of your budget on hardware, power, maintenance and administration Spend less time worrying about and reacting to downtime VMware virtualization will get you 10x productivity on your servers VMware virtualization is the most cost-effective business continuity solution High Availability Data Recovery
  • 9.
    How Do IGet 10x Productivity On My Servers? Hardware Virtualized World Physical World Traditional x86 Architecture Legacy rule: Run only one application per server because single application crashes result in OS or server failure Typical hardware utilization under 8% Virtualization: New rule: Run multiple applications per server because OS/applications are isolated from one another Typical hardware utilization 80%
  • 10.
    VMware Impact onSmall and Midsized Businesses Increase Staff Productivity Increase Application Availability Reduce Physical Infrastructure Cost 1 Increase Data Protection 2 3 4 3-Yr Cost Savings Opportunity* * VMware TCO Calculator 20 Servers 50 Servers $290k $774k 1 month Payback 3 month Payback
  • 11.
    Immediate Savings onServer Consolidation ATER VMware Before VMware With VMware More applications per server = less servers to buy, power, and maintain Reduce Physical Infrastructure Cost 1 $200k+ 3-Yr Cost Savings! Source: VMware TCO Calculator – www.vmware.com Before VMware With VMware Savings in $ Savings in % Servers 20 3 Utilization 8% 80% Server HW 3 -Yr Cost $208,000 $49,918 $158,082 76% Networking 3 -Yr Cost $17,649 $4,412 $13,237 75% Real Estate, Power & Cooling $97,000 $36,141 $60,819 74% VMware license and support cost $0 $5,706 ($5,706) Shared storage 3 -Yr Cost $0 $23,004 ($23,004) Total 3 Yr Capital Costs $322,649 $119,181 $203,468 $63% VMware VMware VMware
  • 12.
    Get More Donewith Existing Staff % of IT Staff Time Spent on Maintenance With VMware 24% Do more work with the same number of people = operating cost savings Drivers of productivity improvements: Zero downtime maintenance Built-in high availability Dynamic patching Instant provisioning Increase Staff Productivity 2 72% $85k+ 3-Yr Productivity Savings! Source: VMware TCO Calculator – www.vmware.com Before VMware With VMware Savings in $ Savings in % Servers 20 3 Utilization 8% 80% Server Provisioning 3 -Yr Cost $26,065 $1,954 $24,111 93% Server Administration 3 -Yr Cost $139,971 $120,374 $19,597 14% Automated Patching with VMware Update Mgr $57,375 $15,501 $41,874 73% Total 3 Yr Staff Operating Costs $223,411 $137,829 $85,582 $38%
  • 13.
    Keep Your BusinessRunning Automatic detection and restart of failed servers Increase Application Availability 3 Detects server failures and initiates the new virtual machine restart on a different physical server without human intervention Average Downtime Costs* * Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time) How much does down time cost your business? Typical downtime per failure 4 hours Lost revenue per hour $14k* Lost staff productivity per hour $50/hour Average failures per year 2 Savings per Year $120k
  • 14.
    Ensures Data isAvailable and Recoverable Increase Data Protection 4 Built in data protection saves time and money Simplifies administration Faster recovery times Save on storage costs with disk de-duplication Less downtime = higher staff productivity
  • 15.
    Seamless Storage IntegrationNAS, iSCSI or SAN Storage NFS or VMFS Virtual machine data can be stored on local disks Storage can be shared between multiple virtual machines Local Storage Shared Storage (NAS, iSCSI or SAN) Benefits: Low cost, entry-level option for users without shared storage Recommended VMware Product: Essentials Benefits: Enables virtualization features such as high availability, vMotion and DRS Enhanced scalability, management and performance Recommended VMware Product: Essentials Plus or Advanced Acceleration Kit ESX OS APP OS APP OS APP ESX OS APP OS APP OS APP
  • 16.
    Which Package isRight for Your Customer?
  • 17.
    Selecting the RightPackage Wants to virtualize more than 3 physical servers Or will want to in the future Customer Needs Recommended Product Will not want to virtualize than 3 physical servers And won’t in the future Is interested value added features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion or Is NOT interested features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion or Vmware Advanced Acceleration Kit Microsoft Hyper-V Microsoft Hyper-V VMware Enterprise Plus Acceleration Kit
  • 18.
  • 19.
    What Puts VMwareAhead of Microsoft? Most Trusted, Reliable, Robust VMware is the proven market leader in its 4th generation product.  Easiest to deploy application uptime and data protection FT, Data Recovery with de-duplication, HA & VMotion Most Cost Effective Lowest cost per application – the real way to measure cost Low entry price with Essentials packages for small IT environments
  • 20.
    All My Eggsin One Basket? “ It seems risky loading up so many apps on one server. What if the server fails or one of the apps?” Response Failure to an application on one virtual machine does not affect other virtual machines on the same physical server VMware High Availability and Data Recovery protect your application workloads and data in the event of unplanned downtime.
  • 21.
    I’m Already UsingOpen Source, Why Buy? Business continuity functionality Fault Tolerance High Availability Data Recovery Centralized management of virtual machines Save significant administration time Update and patch all servers simultaneously
  • 22.
    Plan for 2011$ $ ??? K $ $ ??? K Business Performance $ ??? K plan for 2011 Direct Staffing Projects Rajat Akash + Prosoft Team VMware Microsoft ??? consultants @ 100/hr ??? Projects @ ??K
  • 23.