Server Virtualization The Right Investment. Phares Kariuki, Westcon Africa

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1 Server Virtualization The Right Investment Phares Kariuki, Westcon Africa

2 Agenda Economic Environment in 2010 Why VMware is a Strategic Investment Evolution of Virtualization Proven Customer Success

3 The Rough Road Ahead. A global economic recession is forecasted for 2009 US -0.7% GDP growth EMEA -0.5% GDP growth The economic environment is a leading indicator of tech spending 71% of CIOs anticipate flat or decreasing IT spending budgets IT budgets in developed countries set to decline by 5% Source: Goldman Sachs IT Spending Survey, Nov 2 nd 2008 Source: IMF World Economic Outlook Report, Nov 6 th 2008 Total IT spending is the lowest in the history of the survey. Goldman Sachs IT Spending Survey

4 The IT Dilemma I am supposed to still do the same job, but with less budget and headcount?!?

5 The Problem Where the IT Budget Goes 5% Infrastructure Investment 23% Application Innovation 30% Application Maintenance 42% Infrastructure Maintenance Overwhelming compleity >70% of IT budgets just to keep the lights on <30% of IT budgets goes to innovation and competitive advantage Your Business Can Change Only as Fast as Your IT Can

6 The Goal IT as a Service (Internally or Eternally Provisioned) Efficiency Control Choice

7 VMware Solutions Delivers Efficiency Control Choice Cut capital and operational costs by over 50%. for all applications.. while automating quality of service and remaining independent of hardware, operating system, application stack, and service providers

8 Agenda Economic Environment in 2010 Why VMware is a Strategic Investment Evolution of Virtualization Proven Customer Success

9 Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment 1 Reduce Physical Infrastructure Cost 2 Reduce Datacenter Operating Cost (e.g. Power & Cooling) 3 Increase Productivity, Operational Fleibility and Responsiveness

10 Reduce Server Spend Through Consolidation VMware Typical Consolidation: 10:1 Decouples software from hardware Encapsulates Operating Systems and applications into Virtual Machines A Server or Desktop Virtual Machine Typical Ecess Hardware Capacity: 3 Years! 10

11 The Always On, Optimized, Energy Efficient Datacenter Shared pools of resources Self-optimizing Fault tolerant Self-protecting Automated VMware Infrastructure X

12 VI Transforms Critical Infrastructure Services Resource Management Business Continuity Application Availability Service Level Management Security Consolidation & Containment VMware Infrastructure

13 Rolling Out a New Business Service Availability Availability APP Internal Cloud Security Performance Security Lowest TCO Performance Becomes a Matter of Specifying Required SLAs

14 On the Internal or Eternal Cloud Internal Cloud Eternal Cloud APP APP Management Cloud OS Internal Cloud Management Cloud OS Eternal Clouds Unlock new market based economies of scale, service and innovation beyond what currently eists today

15 IT Leaders Can Say Yes! We can deliver new business services 56 On time Within Budget $14,235 With Assured QoS $30 MM $5,694 2 $4 MM Before After Before After Before After Days to Provision a New App Infrastructure Cost Per App Business Loss Due to Datacenter Outage * The above data comes from specific VMware customer case studies

16 Reduce Energy Consumption Highest consolidation rates on most secure and reliable virtualization platform Safely improve utilization rates 80% energy reduction Dynamic server and storage migration Power off unneeded servers in real-time Migrate storage dynamically 25% energy reduction Host desktop PCs in the datacenter Use thin clients, double refresh cycle Reduce storage for similar desktop images 70% energy reduction Copyright 2005 VMware, Inc. All rights reserved.

17 vcompute vstorage vnetwork Green IT with VMware vsphere Power Optimization features DPM consolidates workloads onto fewer servers when the cluster needs fewer resources Places unneeded servers in standby mode APP APP APP OS OS OS DPM brings powers servers off server back online when when load requirements increases are lower APP APP APP OS OS OS VMware vsphere APP OS APP OS APP OS Brings servers back online as workload needs increase ESX supports Intel Speed Step/AMD Power now for individual host power optimization Minimizes power consumption while guaranteeing service levels No disruption or downtime to virtual machines

18 Additional 20% Reduction in Power Costs with DPM DPM Savings calculated for a datacenter with 100 physical servers Before DPM After DPM $80,300 $63,093 16,800 13,200 Hours per Week Dollars per Year Assumptions: 50 out of 100 servers can be powered down for 8 hrs/day on weekdays and 16 hrs/day on weekends. Total power consumption per server ( operating power + cooling power) = watts/hr Cost of energy = $ per kwh (source: Energy Information Administration)

19 vstorage Thin Provisioning vcompute vstorage vnetwork Virtual Disks Datastore APP OS APP OS ESX APP OS Thick Thin Thin 20GB 40GB 100GB 20GB 20GB 100GB 60GB 20GB 40GB Virtual machine disks consume only the amount of physical space in use Virtual machine sees full logical disk size at all times Full reporting and alerting on allocation and consumption Significantly improve storage utilization Eliminate need to overprovision virtual disks Reduce storage costs by up to 50%

20 vcompute vstorage vnetwork vnetwork Distributed Switch Aggregated datacenter level virtual networking APP OS APP OS APP OS APP OS APP OS APP OS APP OS APP vnetwork Distributed Switch vswitch vswitch vswitch Cisco Neus 1000V VMware vsphere OS APP OS Simplified setup and change Easy troubleshooting, monitoring and debugging Enables transparent third party management of virtual environments

21 Total Savings per Workload VMware consolidates servers, storage and networking infrastructure to safely achieve higher utilization BEFORE AFTER SAVINGS 1 2 Physical Infrastructure Operating Cost Servers $5,816 Network Switches $296 Power (kwh) $759 Cooling (kwh) $949 Real Estate (Sq ft) $431 Savings per Workload (Over 3 years) $8,251* Actual customer savings per application; represents typical savings Includes estimated cost of VMware licenses, Support and Subscription

22 Decreasing Operating Costs Before VMware Productivity, Fleibility & Responsiveness After VMware Workloads per Admin Do more work with the same number of people = operating cost savings Drivers of productivity improvements: Instant provisioning Dynamic patching Zero downtime maintenance Built-in high availability Automated disaster recovery Source: IDC and VMware TAM program

23 Cost of Ownership? Obvious Costs/Savings Physical Servers Virtualization License Costs Installation Labor Maintenance Labor SAN Infrastructure Networking Infrastructure Power/Cooling Datacenter Space Forgotten Costs/Savings Labor Reassignment Efficiencies Shared Storage Power OS License Costs SnS Costs Uptime Savings

24 Cost per VM is a CRITICAL Metric Cost per VM is better metric over Cost of License Cost of license is negligible compared to infrastructure costs (servers, network/san ports, power, cooling) Due to overcommitment, we can run the same amount of VMs in half the physical infrastructure Advanced Solutions mean true savings and cost avoidance DPM can equate to real $ DRS avoids SLA misses, saves $ HA and SRM lessens downtime Lab Manager saves money and avoids Management costs

25 VMware is Lowest TCO Per VM VMware s cost-per-vm beats even free products VMware VI3 Foundation VMware VI3 Enterprise Other Solutions 2-way server (16GB RAM) $7,000 $7,000 $7,000 Cost: Guest Windows licenses 1 $5,998 $5,998 $5,998 Cost: Virtualization license $995 $5,750 $0 Subtotal $13,993 $18,748 $12,998 Total VMs 2 (2GB each) 15* 15* 7 Cost per VM $933 $1,250 $1,857 plus VI3 Enterprise includes advanced functionality such as live server and storage migration, dynamic workload balancing, built in high availability, data protection, and power management which competitors don t have. 1 List price for 2-socket Windows 2003 Server Datacenter Edition 2 Assumes a 2:1 memory overcommit ratio based on VMware advanced memory mgmt technologies * Assumes 1GB of memory used by host virtualization SW for all vendors

26 Agenda Economic Environment in 2010 Why VMware is a Strategic Investment Evolution of Virtualization Proven Customer Success

27 The Virtualisation Journey Separate Consolidate Aggregate Automate Liberate 5 CapE Savings OpE Savings Business Agility 4 Automation 3 Virtual Infrastructure Virtual Infrastructure 2 Management Management Management Hypervisor Test and Development Hypervisor Server Consolidation Hypervisor Capacity On Demand Hypervisor Self-Managing Datacenter Computing Clouds 1 Enterprise Maturity Level

28 The Evolution of VMware Infrastructure.Net SaaS Windows Linu J2EE Desktop Application Management App OS App Application vservices OS App Availability OS Security Scalability vcenter Infrastructur e Management Infrastructure vservices VMware Infrastructure -> Virtual ESX vcompute Datacenter OS vstorage vnetwork vcloud Off-premise Cloud

29 Agenda Economic Environment in 2010 Why VMware is a Strategic Investment Evolution of Virtualization Proven Customer Success

30 Customer Testimonials Reduce Costs Using VMware software has brought a huge cost benefit to IT - avoiding costs by $1.1 million is fantastic. For every production virtual machine, we estimate a $7,500 cost avoidance per server. We multiply 150 applications by $7,500 and estimate a $1.1 million cost avoidance. Barry Naber, Technology Manager at International Truck and Engine Corporation Simplify Management The net impact of utility computing with VMware Infrastructure 3 for the business is higher service levels, for IT - it is simplified and easier to manage infrastructure. Fazil Habibulla, Vice President and System Architect, NATIXIS Capital Markets Meet Service Levels Efficiently Using VMware virtual infrastructure, we can offer the same levels of service and more fleibility for up to 40 percent lower server and operating costs. Rob Jones, Director of Technology, ALSTOM 30

31 VMware is the Proven Leader and Provides the Highest ROI VMware s incumbent position at the top of the rankings demonstrates that server virtualization momentum remains alive and well with a strong ROI case for a declining budget environment. -- Goldman Sachs 11/2/2008 Which software providers are gaining share of your IT spending dollars? Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

32 VMware Continues to be the #1 Software Investment for CIOs in a Tough Economy VMware Gaining 1. VMware 2. Cisco Software 3. Red Hat 4. Oracle 5. Informatica 6. salesforce.com 7. Microsoft 8. EMC Software 9. Symantec 10. Citri # 12 Quarters Which software providers are gaining share of your IT spending dollars? Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

33 Available Resources Online ROI/ TCO Calculator: Robust and customizable analysis of virtualization s impact on your IT budget and datacenter costs Why Choose VMware: Vendor selection checklist to ensure a Complete, Robust, Proven Virtual Infrastructure vmware/

34 KIITOS DANKE SCHÖN THANK YOU MERCI GRACIAS DANKE GRAZIE HVALA TAVTAPUCH BARKAL REKHMET KÖSZÖNÖM GIITTUS TACK

35 Appendi

36 VMware vsphere: Most Efficient Efficiency Hardware Scale Out CPU Efficiency Memory Efficiency Virtual Hardware (VM) Scale Out Hot-add/remove Virtual Resources Power Efficiency Storage Usage Efficiency Network Management Efficiency Automated Patching Efficiency 64 logical cores 512 GB RAM CPU HW-assist or BT Virt-specific scheduler Memory HW-assist Overcommit / sharing 8-way vcpu 255 GB vram ~ 24 logical cores 1 TB RAM Requires HW-assist Reuse gen-os schdler Memory HW-assist No overcommitment 4-way on Win08 only 64 GB vram Add: vcpu, vmem Add: virtual disk None DPM: Cluster-level power management Thin provisioning Monitoring tools Distributed switch 3 rd party virtual switch Transparent host patch Auto guest patching None No Cluster-level Mgmt Thin disks, but no monitoring tools Host patching causes VM downtime ~ 32 logical cores 128 GB RAM Req. HW-assist for Win Reuse gen-os schdler Memory HW-assist No overcommitment No Cluster-level Mgmt Only via 3rd party storage vendor None 8-way vcpu 32 GB vram No hot-add CPU, mem Add: virtual disk Host patching, but no auto guest patching New capability in VMware vsphere Note: Many improvements were also made to eisting VI3 capabilities

37 VMware vsphere: Uncompromised Control Control Control for Server Maintenance VMware vmotion (w/ Enh Compatibility) Quick Migration causes downtime XenMotion Control for Storage Maintenance VMware Enhanced Storage vmotion Nothing comparable Nothing comparable Control of Resource Allocation VMware DRS Logical Resource Pool Pro Tips has downtime No logical pools 3rd party for DRS No logical pools Fault Tolerance for VMs VMware Fault Tolerance No VM-level protection Promised feature hasn t shipped yet Control during NIC Failure Integrated NIC teaming Relies on network vendor to provide ~ Supported, but may require CLI to configure Control during Host or VM Failure VMware HA Up to 32 nodes Only for host failure 1-VM-per-LUN issue ~ Only for host failure Up to 16 nodes Control during Entire Site Failure VMware Site Recovery Manager Geo-clustering has no workflow, testing, audit Nothing comparable Thin Hypervisor to Reduce Attack Surface VMware ESXi MB disk footprint Hyper-V w/ Server Core >2GB disk footprint XenServer 1.8GB disk footprint Better Security than Physical VMware VMSafe API 3 rd party support Nothing comparable Nothing comparable New capability in VMware vsphere Note: Many improvements were also made to eisting VI3 capabilities

38 VMware vsphere: Maimum Choice Choice Choice thru Guest OS Support >30 OSs supported More Windows than MS 11 OSs supported Windows biased 20 OSs supported Choice thru Hardware Support Large HCL: >450 HBAs, >160 NICs,>450 Servers ~ Using Windows drivers Potential driver issues Very limited HCL ~100 Servers Choice thru Application Support Leader category (per leading analyst firm) Leader category (per leading analyst firm) ~ Net-tier category (per leading analyst firm) Integrating with Eisting Mgmt Tools Dozens of integrations vcenter API via SDK ~ Can integrate, but SC competes w/ eisting Citri Essentials API not readily available Choice in Cloud Service Provider VMReady program for cloud providers Building a MS-hosted offering No clear cloud strategy Interoperability between Internal & Eternal Cloud VMReady ensures interoperability Apps in MS cloud don t come back out No clear cloud strategy Choice in Using Eisting Apps in the Cloud Run eisting apps w/o rewriting code Apps need to be rewritten for MS cloud No clear cloud strategy New capability in VMware vsphere Note: Many improvements were also made to eisting VI3 capabilities

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