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In this tough economic environment, with budgets being squeezed (industry research and analysts estimate 5-10% decline in 2009), IT departments are expected to do “more with less.” How do you get more out of your datacenter? What tools/ solutions should you invest in? Which vendor should you strategically partner with to get the best ROI?
In this presentation, we will be discussing different ways in which VMware products and solutions will empower your organization to realize high ROI and reduce TCO.
VMware provides tangible CapEx and OpEx cost savings. In this tough economy, with declining IT budgets, the Top 3 Reasons to adopt VMware virtualization software:
Physical Infrastructure Cost Reduction: With virtualization, you can reduce the number of servers and related IT hardware in the datacenter. This leads to reductions in real estate, power and cooling requirements, resulting in significantly lower IT costs. VMware virtualization solutions makes it possible to achieve significantly higher resource utilization by pooling common infrastructure resources and breaking the legacy “one application to one server” model.
Datacenter Operating Cost Reduction: Virtualization offers a new way of managing and automating your IT infrastructure and can help IT administrators spend less time on repetitive tasks such as provisioning, configuration, monitoring and maintenance. VMware virtualization improves your organization’s operational efficiency --- increasing flexibility & responsiveness
Downtime and Risk Reduction: Eliminate planned downtime and recover quickly from unplanned outages with the ability to securely backup and migrate entire virtual environments with no interruption in service. VMware virtualization increases your Application Availability & improves Business Continuity.
Traditionally, organizations have run a single operating system (OS) and application on each server, leading to the server sprawl issues.
VMware virtualization allows you to encapsulate each OS and application into a software file called a virtual machine (VM). Each virtual machine is completely hardware independent and can be treated just like a file. It can be moved around between servers, copied, or run simultaneously on the same server as other virtual machines.
Many VMware customers run 8, 10, or more virtual machines for every physical server. This dramatically reduces the number of servers required to support an identical set of workloads, leading to significant savings, as you’ll see in the following slides…
VMware reduces energy by rightsizing the IT load, which is the culprit for energy over-consumption
This rightsizing does not just apply just to the initial consolidation of x86 servers (where VMware offers the highest consolidation rates, which translate directly to energy savings)
Rightsizing occurs at any given point in time with DRS/DPM, which is critical since the IT load is dynamic
Savings apply to storage and networking layers as well, although these are responsible for much less power consumption in the datacenter (5% for each according to EPA report)
Virtual Desktops also saves desktop power consumption from thin client deployments
VMware simplifies virtual system management by automating common administrative activities like monitoring and demand, change, incident, performance, and asset management. VMware virtualization enables operational savings in two ways:
Increase IT efficiency. Every server virtualized represents one less workload to administer, maintain and service. Spend less time on monitoring and less money on power and cooling costs.
Improve IT service delivery. Increase your business agility and innovation with process management and automation. Spend less time on simple tasks, and more time on strategic, value-add projects.
Through policies and rules, VMware virtualization eliminates many tedious day-to-day process inefficiencies.
Customers save up to 60% in total cost of infrastructure on a per application basis – and increase productivity of Administrators almost 2-3x.
The net effect is that you can meet your business requirements at a fairly low cost. Because you can spend a lot less time fighting fires on a daily basis, you are able to manage many more workloads than in a physical environment. Additionally, you are also able to spend more time architecting your datacenter infrastructure better for higher levels of productivity.
Before VMware, IDC claims an average of about 30 servers per admin. After virtualization, customers typically see the number increase 3x.
Based on data/ statistics collected from the VMware TAM program, a large Financial company had an excellent VM to Admin ratio of approximately 300 : 1 (Approximately 1500 VMs to 5 Admins). Another Financial company on the East Coast has approx 2000 VMs and between 8 to 10 VI administrators (200:1). The ratios vary widely based on the role of the administrator and the length of their deployment. This is merely anecdotal information and not in depth analysis of our larger customer base, but even IDC has claimed that average server to admin ratios with VMware are 3x or 90 server per admin (John Humphreys, VForum presentation / Virtualization 2.0).
Avoid extra costs and minimize potential lost revenue from business downtime, outages and failures. Any unplanned downtime adversely affects your bottom line and your corporate perception, business relationships, and future viability.
Avoid lost business due to datacenter outage
Save time by automating testing and quick/ reliable restore
Reduce setup, deploy and support costs for DR server and site
Reduce risks by proactively moving applications away from failing or underperforming servers
Notes: This scenario is based on Vmmark results (see backup) that show Intel’s Xeon 5500 providing 140% increase in performance over its predecessor and AMD’s Shanghai processor providing a 45% increase over its predecessor. We take a weighted average based on Intel & AMD market share – and we get an improvement of ~120% with new hardware. To keep things simple in the customer example, we assume a straight 100% improvement.
Note-VMware utilizes specific virtualization assist features in the hardware better than anyone else, leading to significant consolidation ratio improvements
** Source: Based on VMmark benchmark comparing the performance of ESX 4.0 on 2-socket server with quad-core Nehalem Intel processors to the performance of ESX 3.5 on 2-socket server with quad-core Intel Harpertown processors.
See the XLS model for the calculations
1. Calculate new consolidation ratio. 30% x 10:1 = 13:1 new vSphere consolidation ratio2. Calculate new servers/ hosts required. 1000 VMs/ 13 =77 servers needed. Results in a savings of 23 servers
3. Calculate server savings: 23x $8000 = $184k or $61,538 annualized hardware savings
4. Calculate power and cooling savings. Assume $0.11 kWh, 633 Watts Power 791 Watts cooling and server operating hours = 24x7x52 8736 hours. The calculation is (23x (633+791)x 0.11x 8736)/1000 = $31,579
In addition to the reduced power & cooling due to datacenter consolidation, DPM provides addiitonal cost savings on an ongoing basis
Based on customer interviews and VMmark studies.
In this example of a 77 server datacenter, where about 50% of the servers can be powered off for 8 hrs/ day on weekdays and 16 hrs /day on weekends, DPM provides a 21% reduction in power and cooling costs. Capacity is always available on standby should workload requirements increase, however the resulting power cost is not incurred. This is a very important benefit for datacenters overburdened by power and cooling costs – consolidation provides significant benefit to start with, DPM adds to the benefit by reducing administrative overhead required to manage power well.
Calculate % of DPM savings.
1. Calculate “normal” server operating hours (without DPM)= 24x7x52 = 8736 hours
2. Calculate DPM server operating hours = (16 hr*5 days) + (8hrs*2 days)*52 = 4992 hours
3. Calculate % of DPM savings. 50% of servers x ((8736 – 4992)/8736)) = 21.4%
See the XLS model for the calculations
Customers tend to overprovision, according to IDC 50-70% of storage capacity is unused. With thin provisioning, VMware helps reduce the extra cost of over-provisioned storage.
With 4 disk RAID 5, you need to multiply with 1.33, as you need 4 disk of raw capacity for 3 usable capacity.
$3/GB is a mean measure of cost for storage. There is a wide range of price for storage between 10K to 50K.
If we took the database server by itself it will be between 400GB to 1TB
The saving is higher with mirroring (RAID 1) at $90,000
If we use 20% reduction in storage = $79,800
In terms of next steps and getting started, there are 2 calculators on the VMware web site, www.vmware.com/calculator. The Green and ROI/ TCO calculators provide the economic argument for both energy and hardware, it gives you the environmental justification. The calculator is customizable. You can put in your energy cost, you can put in how efficient you think your cooling is, what percentage of your cooling versus IT, and then you can go into quite a bit of detail there.
Also, you can review a checklist of important considerations in selecting a virtualization vendor. This is available in the URL: www.vmware.com/technology/whyvmware/
Thank You! For more information, please utilize the following resources:
Cost Savings webpage: http://www.vmware.com/solutions/cost-savings/
ROI/ TCO calculator: http://www.vmware.com/go/calculator
Contact VMware Sales: http://www.vmware.com/contact/contact_sales.html