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1 LHC2386BU True Costs Savings Modeling and Costing A Migration to VMware Cloud on AWS Chris Grossmeier chrisg@cloudphysics.com John Blumenthal john@cloudphysics.com #VMworld

2 Public Cloud Leverage For IT/Business Alignment Business Goals Agility to speed time to market, adapt to market demands Elasticity to meet demand while controlling cost Global presence IT struggles to meet these goals because Impediments On-prem Today Physical capacity limitations Capex-based financial model Legacy infrastructure maintenance The public cloud seems like the solution but Hidden Challenges Replatforming VMs app dependencies Re-architecting apps and infrastructure Cost analysis / alternatives and impacts

3 There is another path Virtual Insanity

4 Traveling Without Moving (aka Virtual Insanity) OnPrem vsphere Existing infrastructure services Fixed physical resources Capex financial model VMware Cloud on AWS Existing infrastructure services Variable physical resources Opex financial model Macro Virtualization Delivers Hybrid IT Structure Extends virtualization benefits without additional cost or risk But new world increases economic complexity and decisions

5 VMware Cloud on AWS Economic Considerations VMware Cloud on AWS or AWS, GCP, Azure? Best Applications Resource Saturation and Contention? Save money? How can I know? Workloads: Best fit / Worst Fit. Can I prove the ROI?

6 VMware Cloud on AWS The Cost Value Curve Cost per VM Utility Cluster Grows Cluster Grows Cluster Grows Too few VMs for Cluster - High Cost per VM Just the Smallest VMs - Wasted Resources Balance of Small and Mid - Good Value Small, Mid, and Some Large - Meets Business Needs Most VMs Except Largest Extra Hosts Required All VMs Full Function/Several Extra Hosts Required Your largest outliers add significant cost by increasing Cluster Host Count Dramatically to meet resource needs

7 Steps To Maximizing Value with VMware Cloud on AWS 1. Quantify On-Premise Costs 2. Apply a Packing Model 3. Exclude Outliers 4. Quantify the Cloud costs 5. Other Service Costs 6. Estimate Migration Costs

8 Baseline Costs Current Real Data CapEx Hardware + Licenses OpEx Support + Energy Define Your Scope Total these workload costs to understand your total on premise operational costs for these workloads

9 Quantify Your On-Premises IT Costs Quantify all hardware resources and their costs Include vsphere Licenses and Support Add per VM and per Host costs Estimate cost per workload Environmental Costs, Electricity, Cooling, Square Footage Take depreciation into account Or

10 Optimize Your Resource Packing Models Everyone thinks they know how to pack. But few respect the limits of their resource

11

12 Bin Packing for CPU Demand, vram, Storage, and Network

13 $$$$$ Understand How to Measure and Size for Usage Peaks $$$ $$ Individual VMs As Defined with Usage distribu Individual VMs As Defined with Usage Now do this for each critical metric that defines a Cluster Capacity. CPU, Memory, Storage Capacity, Disk IO, and Network IO or Aggregate of All VMs As Defined Aggregate Sum of Peak of Each VM 8:01:20 8:01:40 8:02:00 8:02:20 8:02:40 All VMs Aggregate Time Based Peaks With 20 Second Granularity

14 Cluster Bin Packing Has Different Rules Packing Considerations: Storage can span hosts vcpu and vram are contained to a single host CPU Demand not CPU Core Count Matters Hyperthreads impact demand Outcomes: Very large VM s add to the host count Small VM s add to the density and savings

15 Effective Packing Manages All Resources A data center has an infinite number of combinations

16 Optimizing Cost for Cloud - Shared Resource Packing Maximizes Value Pack for 85% to 95% Resource Utilization

17 Peaks for VMware Cloud Percentiles for Cloud Instances. Use Peaks for VMware Cloud on AWS Use Percentiles for Instance Mapping Every VM hits 100%, the question is for how long it stays there. Histograms and granularity ensure maximum density

18 Efficient Packing and Cluster Impact Packing for CPU Focus on demand Target 85%-95% Limited to single hosts maximums Ideal density avoids scheduler contention DRS still plays a role in resource availability Packing for RAM Avoid over subscribing Target 1:1 Limited to single host maximums Ideal density reduces Memory Swaps and Latency Packing for Storage Can expand Cluster Storage Spans Hosts No overcommit of Storage Thin Provisioning reduces storage needs Don t overlook Disk IOPS, Network IO, Throughput Speeds, etc.

19 Focus on Packing Efficiency Do Not Focus On Consolidation Ratio False focuses on more VM s per Host Not an indicator of efficiency, only density May cause contention if density is too high May waste resources if density too low This is not what we are striving for but rather the product of efficient packing Potential false appearance of value VMworld 2017 Focus On Efficient Packing Better packing yields optimal consolidation ratios Strive for 85% to 95% packing. Packing to Limiting Resources leaves other resources free Packing based on peak histogram results in best density with least contention Content: Not for publication Result is the Ideal Consolidation Ratio

20 Reduce the Candidates Identify Outliers One Large VM may result in additional servers and resources. Remove a large VMs may dramatically reduce cluster limiting resources and shift limiting resource to other metric Strive for balance, not an excess in any one resource. Large Disks often need more hosts to achieve capacity despite CPU and RAM not being used. 3 Sultan Kosen is a staggering 8 3 tall and has size 28 feet

21 Visualizing Cluster Capacity and Packing Single Host Capacity x 4 The VMC Base Cluster Capacity Storage Capacity (Depth) CPU Capacity (Height) Large VM Medium VM Small VM Mini JUMBO RAM Capacity (Width) Things would be great if every VM used its defined resources to 100% and VM Sizes were easily classified

22 These Are All Valid Configurations 1 vcpu 512 MB vram 32 vcpus 128 GB vram 3 TB Storage GB vram 3 TB Storage + 32 vcpu CPU GHZ Demand Capacity Consumned Large Storage VM + CPU Demand Storage Capacity Defined Big CPU VM High RAM + Large Storage VM Small VM High RAM VM RAM Capacity Consumed Sizing Factor Volume Increases with Each Additional Host to the Cluster Storage Can Scale Across Hots vram is Host Limited vcpu is Host Limited Network IO is Host Limited and Cluster Limited Storage IO is Host Limited and Cluster Limited Storage impacted by Deduplication and Compression

23 Don t Over Purchase Your Cluster Capacity VMworld 2017 Storage Capacity (Depth) Single Host Capacity 36 CPU 512 GB RAM 7.2TB Usable Disk Single Host Capacity 36 CPU 512 GB RAM 7.2TB Usable Disk Total Cluster Capacity CPU Capacity (Height) Single Host Capacity 36 CPU 512 GB RAM 7.2TB Usable Disk Server No Single 1 VM Can be Server No Single 2 VM Can be Larger than this. Larger than this. Single Host Capacity 36 CPU 512 GB RAM 7.2TB Usable Disk Content: Not for publication Server No Single VM Can be Larger 3 No Single VM Can be than this. Server Larger 4 than this. RAM Capacity (Width)

24 Buy for Resource Demand, Not Configured VM Size Single Host Capacity 36 CPU 512 GB RAM 5.3TB Usable Disk No Single VM Can be Larger than this. Storage Capacity (Depth) Large VM CPU Capacity (Height) Total Cluster Capacity And Actual Resource Demand Large VM Medium VM Small Small VM VM Mini Jumbo VM (1 per Host) Jumbo VM (1 per Host) RAM Capacity (Width)

25 Collect Data on Everything Host Hardware Storage Networks VMs Supporting Resources

26 Looks At Metrics That Matter Look Know Find at clusters, hosts, OS, storage, networks, and usage your packing density density adds value the Outliers and their impact on Hosts Count

27 Mapping Cloud Costs Costs start with 4 hosts Take advantage of VMware discounts for owned licenses With VMware Cloud, fewer than 4 hosts still find benefit, but at a cost Know which VMs have greatest impact on cost

28 Packing Cost Comparison VMware Cloud on AWS CloudPhysics Packing Model VM s In Scope of Assessment 561 VMs Actual customer results - 5 Clusters, 28 Hosts, 561 VM s Before Assessment Cost per VM CloudPhysics Cost Calculator Estimates For VMware Cloud on AWS 18 90% Packed Private On Premises IT $978, Apply Discounts For NSX, vsan, vsphere Instance Based Clouds $990, Annual On-Dmeand $701, Annual 1 Year Commit $492, Annual 3 Year Commit $1, On Demand $1, Year Commit $ Year Commit As Configured Peak Usage 99th Percentile Usage 95th Percentile Usage Cost Per Peak Microsoft Azure $894, $865, $694, $645, $1, Google Cloud (GCP) $1,190, $1,139, $912, $845, $2, VMworld 2017 Content: Not for publication AWS $893, $871, $747, $724, $1, Comparing VMware Cloud Cluster Cost and Forecasted Actual Cloud Instance Costs often proves advantage to VMware Cloud on AWS over Instance Based Hosting Note: Real results based on customer data. Your mileage will vary based on utilization and resource requirements.

29 Remote Datacenter A Primary Datacenter On-Premises CloudPhysics Cost Calculator for VMware Cloud on AWS Real Results On-Premises 84.27% $ 735, /year On With average, 3-Year VMware Commitment $ 489,241 /year Remote Data Center B Remote Data Center A Primary Data Center On-Premises VMware Hybrid Cloud On Premises Cost $ 246,073.5 /year Remote Data Center Remote Estimated at Cheaper than AWS in of clusters analyzed are Cloud on AWS is 27.1% 3-Year Commitment B Datacenter B $978, /year Remote $ 55% 495, of clusters /year On Demand after cheaper than AWS Cheaper than AWS after Data Center A CloudPhysics Instances CloudPhysics Optimization Optimizations. 40% 40%+ Cheaper than AWS in 21.35% of Clusters after CloudPhysics Optimizations 27.1% Primary Data Center Saving 25% with 3yr Commitment Cost within 1% for Hybrid Cloud W/ On-Demand Largest observed savings over VMware AWS Cloud on AWS Note: Real results based on customer data. Your mileage will vary based on utilization and resource requirements % 25%

30 IT Needs to Go Deeper into Business Rules On-Premises Private Datacenter Dependencies make or break your business model. Ingress/ Egress Data Database Tier vcloud on AWS

31 Account for Outlying Attribute Static IP Addresses Network Firewalls Load Balancers Private VPN Network Segments HA and DRS Affinity Rules Replication and Mirror

32 Future State Welcome to the Hybrid Cloud On-Premises Private Datacenter SaaS Based Apps vcloud on AWS

33 VMworld 2017 Can You Find Additional Savings? YES! Migration Costs Savings vmotion, No rebuilds! Re-Platform Costs Savings Existing network and resource models, No rebuilds! Discounts Take advantage of NSX, vsan, and vsphere discounts Content: Not for publication Term Length Commitment On-Demand vs 1-Year vs and 3-Years. Photo Credit : 401(K) Flickr

34 Lessons Learned 1. Efficient cluster packing increases value considerably 2. Outlier configurations dramatically impact value 3. Until deduplication and compression arrive, storage likely to be primary bottleneck. Host Limited 4. Packing for resources based on aggregate demand finds optimal consolidation ratio 5. 85% of time, VMware Cloud on AWS is cheaper. 6. Discounts impacted if you move more than 50%

35 Your Call To Action Leverage Know Complete Involve Clarify Leverage Partners for Funded Assessments! Know Your On-Premises Costs Complete a Packing Exercise to Find Opportunity Cost Involve your Lines Of Business to know Dependencies Clarify Scope Optimize Optimize Cost by Reducing Outliers when Possible

36 CloudPhysics for VMware Cloud on AWS: Analyzes all VMs in vcenter Compares instance vs host cloud models Finds outliers that negatively impact costs Gets you to the cloud faster! Determines ideal host count

37 Get a Fully Funded Assessment From A CloudPhysics Partner!

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