ats americas it consolidation may2008 - stocker.ppt

Brad StockerPractice Manager, Consulting

May 8th, 2008

Meeting the Challenges of IT Optimization… Using Financial Justification to “Jump

Start” a Server, Desktop or Storage Consolidation project

© 2008 Avnet Inc. All rights reserved.


Discussion Topics

» Perspective» Consolidation Assessment Services» Approach, Methodology & Tools» Server Case Study x86 Study» Desktop Assessments» Storage Assessments» Next Steps


Ripe for Consolidation

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Server shipments Server ASP


Importance of a Financial JustificationQ: Using a scale of 1 to 5, with 1 being “not at all important” and 5 being “very important”, how important is financial justification, such as ROI, for securing internal funding for an IT project at your company?

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3 5 - VeryImportant

% of Responses

79%


Your part …


Consolidation Impact Assessment Services

» Unix (HP-UX, Solaris, VMS, Tru64, AIX) Server Consolidation Assessment –to- Integrity (HP-UX or Linux)

» Windows and Linux on x86 –to- VMware VI3» Desktop Virtualization Assessment –to- VDI or HP

PC Blade environment


Assessment StrategyAnalyze both the Technical and Financial Impact of Server and

Storage consolidation

» Use a tool called CapacityPlanner from VMware» Non-disruptively captures hardware and software inventory from current

environment» Measure actual utilization of servers and records the peak workloads» Uses peak workloads to create consolidation scenarios

» Model Financial Impact using Brigham-Gapenski Methodology» Collects financial assumptions at start of project via Financial Questionnaire» Total Cost of Ownership (TCO) analysis of selected IT environment» Compares baseline to the costs of a consolidated environment» Provides a detailed Return On Investment analysis


VMware Capacity Planner

Data Upload

Data Analyzer

HTTPS

InformationWarehouse

Infrastructure Assessments

Capacity Planning

Server Consolidation

Capacity Planner Dashboard

Discovery Inventory

Performance Data Synch

Data ManagerClient IT Environment

DataCollector

Agent-less Data Collection

ClientSite

HostedSecure Site

Web

Industry Data


Hardware

Platform B

CPU

0 – 1

GH

z

CPU

1 – 1

GH

z

Hardware

Platform A

CPU

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80

0M

Hz

CPU

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Virtualization Modeling

Capacity

Planner

Hardware

Platform C

CPU

0 – 2

GH

z

CPU

1 – 2

GH

z

Application C

80% Utilizatio

nApplicati

on B80%

Utilization

App. A80%

Utilization

Target Platform

CPU

0 – 2

.4G

Hz

CPU

1 – 2

.4G

Hz

Inventory gathered using Collector

Utilization gathered using Collector



Capacity

Planner

Hardware

Platform A

CPU

0 –

80

0M

Hz

CPU

1 –

80

0M

Hz

Hardware

Platform B

CPU

0 – 1

GH

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CPU

1 – 1

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z

Hardware

Platform C

CPU

0 – 2

GH

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CPU

1 – 2

GH

z

Application C

80% Utilizatio

nApplicat

ion B80%

Utilization

App. A80%

Utilization

Target Platform

CPU

0 – 2

.4G

Hz

CPU

1 – 2

.4G

Hz

App. A20%

Utilization

Virtualization



Capacity

Planner

Hardware

Platform A

CPU

0 –

80

0M

Hz

CPU

1 –

80

0M

Hz

Hardware

Platform B

CPU

0 – 1

GH

z

CPU

1 – 1

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z

Hardware

Platform C

CPU

0 – 2

GH

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CPU

1 – 2

GH

z

Application C

80% Utilizatio

nApplicati

on B80%

Utilization

Target Platform

CPU

0 – 2

.4G

Hz

CPU

1 – 2

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Hz

App. A20%

Utilization

Virtualization

Application B30%

Utilization

Virtualization



Capacity Planner

Hardware

Platform A

CPU

0 –

80

0M

Hz

CPU

1 –

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0M

Hz

Hardware

Platform B

CPU

0 – 1

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CPU

1 – 1

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Hardware

Platform C

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Application C

80% Utilizatio

n

Target Platform

CPU

0 – 2

.4G

Hz

CPU

1 – 2

.4G

Hz

App. A20%

Utilization

Virtualization

Application B

30% Utilization

Virtualization

Application C

50% Utilizatio

n

Virtualization


x86-Windows Consolidation Case Study


Capacity Planner Windows Servers - What we’re seeing

» Rarely find sites with over 10% average prime time utilization … some sites lower than 5%

» About 40 physical servers per System Admin» Main cost drivers are Power, System Admin, Maintenance, and

Growth/Refresh» Seeing 3 year TCO’s of around $1.5 million per

100 servers» Typical consolidation of 7:1 to 10:1, goal is usually

at least 10:1» Typical IT Cost Reduction of 25%, < 18 month payback


High-Level View: The Dashboard


Peak Load and Peak HourServer CPUs Mhz Business Hours Peak Load Peak Hour

aegis 2 448 6.86 21.34 10

arcadia 2 702 2.82 20.29 18

atlantis 1 199 7.09 22.79 8

boris 1 1,396 2.45 3.49 0

cim7 2 996 2.35 35.39 21

cisdev 2 0 8.6 44.33 15

coil 2 901 19.87 47.33 18

doc1 1 200 7.31 19.19 21

docbeta 1 448 3.8 49.15 21

edmsdb1 4 701 9.99 16.38 15

edmsdb1t 4 701 0.57 1.21 14

edmsdb2 4 701 2.88 5.17 2

edmsdb2t 4 701 1.3 5.08 2

edmsdc1 2 996 7.23 27.87 6

edmsdc1t 2 996 0.79 22.42 4


Created Scenarios – Windows

NameServers

InServers

OutServers Not Consolidated

453 Dovercourt to Target DL385 2.6 GHz (4) 16GB VM 4 1 0

Misc to Target DL385 2.6 GHz (4) 16GB VM 12 2 1

Unknown to Target DL385 2.6 GHz (4) 16GB VM 3 1 0

St. Mary DL580 to Target BL480c 3.2 GHz (4) 16GB VM 19 6 2

St. Mary minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 75 8 2

St. Mary minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 75 8 2

Taylor DL580 to Target BL480c 3.2 GHz (4) 16GB VM 13 4 1

Taylor minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 76 12 5

Taylor minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 76 12 5

Waverley DL580 to Target BL480c 3.2 GHz (4) 16GB VM 4 1 0

Waverley minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 41 4 1

Waverley minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 41 4 1


Scenario Results – St. Mary Group


Financial Assumptions1. 314 Total Windows Servers from Dashboard

2. Net new physical server annual growth rate of 14.3%

3. Assume Five (5) year average useful life

4. Five year lifecycle for hardware with a refresh rate of 50% of 1/5 of the server base per year (10%)

5. Average Server replacement cost = $7,500

6. Six FTE for core Windows Servers Management, 75% utilized for server management at assumed $100,000 fully burdened cost

7. Assume IT budget assessed via five year straight line depreciation


Financial Assumptions - continued1. 228 Windows Servers considered as Consolidation Candidates and

placed in financial model

2. Average server age calculated from Ave server CPU MHz (2047) is 36.0 months

3. Using $1000/server/year as maintenance cost of servers over 36 months, assumes 50.0% of servers are over 36 months

4. Power/Cooling Costs, using calculated power, power infrastructure and AC costs based on 350 watts/server for existing servers and 600 watts/server for new at $0.04 per KWH

5. Assume no tax benefits

6. Requires a 36 month payback for project to be considered


Financial Findings

3 Year TCO Breakdown

Sys Admin Costs: $1,120,737 (~70 servers : 1 FTE ratio)

Break/Fix Maintenance: $342,046

Growth (Capital): $513,000 (~33 servers / year)

Refresh/Replace (Capital): $515,250 (~23 servers / year)

Power & Cooling: $471,600

TCO Baseline Summary – 228 Servers(St. Mary, Taylor, Waverley)

Current TCO = $2,433,660


Financial FindingsThree Year Payback Summary – 228 Servers(St. Mary, Taylor, Waverley)

Option

HW/SW Cost1

3 Year TCO2 IT Budget Reduction

Raw Savings

ROI (IRR%)

Payback(months)

BL460c 2W 16GB16 New8 RemainingBL480c 2W 16GB8 New3 Remaining

$1,018,562 $1,864,906 $568,754 $1,966,475 31.1 22.2

DL585 4W 16GB16 New8 Remaining

BL480c 2W 16GB8 New3 Remaining

$1,422,270 $2,147,502 $286,158 $1,831,905 6.5 32.0

2Estimated implementation budget, $217,000

1Estimated storage capacity budget, $250,000



Financial Findings

Power, $364,861 , 19%

Sysadmin, $300,564 , 15%

Maintenance, $309,046 , 16%

Capital, $992,004 , 50%

Raw Savings Summary – BL460c/BL480c


Desktop Virtualization Case Study


Virtual Desktop (VDI)


VDI Main Points

» Executive Summary: Virtual Desktop Infrastructure (VDI) » VDI simplifies desktop administrative and management tasks» Users access virtual desktops running in the data center» Technology supports both PCs and thin clients» Desktop security and data protection are centralized» Access can be easily extended to remote users

» Benefits of VDI» Efficient use of CPU and memory resources » Reduced desktop downtime and increased availability » Patches and upgrades performed in data center » New users can be up and running quickly » Data and applications reside in secure data centers» Centralized management reduces operational expenses


High Level View – A Dashboard


Scenarios - Extrapolated

Scenario NameDesktops

InDesktops

ConsolidatedDesktops Not Consolidated

New Servers

Consolidation Ratios x:1

City Hall to BL465c-16GB 426 426 0 13 32.8City Hall to BL465c-24GB 426 426 0 10 42.6City Hall to BL465c-32GB 426 426 0 8 53.3City Hall to DL585-32GB 426 426 0 8 53.3S&J to BL465c-16GB 332 332 0 10 33.2S&J to BL465c-24GB 332 332 0 8 41.5S&J to BL465c-32GB 332 332 0 6 55.3S&J to DL585-32GB 332 332 0 6 55.3


Current Desktop Environment


TCO Detail


TCO Detail (cont)


Financial Findings – VDIThree Year Payback Summary – 426 Desktops

Option HW/SW Cost1

3 Year TCO2,3

IT Budget Reduction

Payback (months)

ROI (IRR%)

BL465c 16GB13 New0 Remaining

$417,836 $2,562,168 $663,555 17.5 54.6


$565,894 $2,705,496 $520,227 22.3 32.2


$549,716 $2,686,164 $539,559 21.7 34.4

DL585 32GB8 New0 Remaining

$510,104 $2,646,552 $579,171 20.4 39.7

2Estimated Implementation costs budget $91,294

1Estimated storage capacity budget $87,880 (4.16TB)


3Includes thin client phase in over three years, $255,174


Storage AssessmentsSAN Performance Analysis


Vision

RIGHTRIGHT DATADATA RIGHT TIMERIGHT TIMERIGHT PLACERIGHT PLACE

INFORMATION LIFECYCLE MANAGEMENT

Using Business Policy, Architectural Tiers and Financial Justification to move towards or enhance your Information Lifecycle Activity


Assessment Strategy» Analyze both the Technical and Financial Impact of the Storage Environment and

Recapture/Consolidation» Use Storage Essentials to capture a baseline and model options

» Non-disruptively captures file information on presented storage devices» Measure storage capacity, utilization characteristics and recoverable space» Uses business policy to architect effective and cost efficient storage tiers

» Model Financial Impact using Brigham-Gapenski methodology» Collects financial assumptions at start of project via Finance Questionnaire» Total Cost of Ownership (TCO) analysis of selected IT environment» Compares baseline to the costs of a consolidated environment» Provides a detailed Return On Investment analysis


Architectural Framework for Sampling» Integrated Discovery and Data Classification» Comprehensive Classification

» ILM missing link» Enterprise scalability

» Data Differentiation Policy Engine» Storage and Data Classes

» Transparency» OS & Storage Devices» Existing Infrastructure

» Data Migration & Monitoring Services» Place data on the most appropriate storage with no or little

disruption to data accessibility

» Tiered Storage Audits» Determine exactly what amount of data could

be migrated to other tiers of storage and the amount and types of storage required

» Storage Consolidation Audits» Properly plan for storage consolidation by

understanding data types and storage requirements

» Size out new storage infrastructure using actual data

» Back-up Optimization Audits» Identify the unused data causing backup

problems that could be migrated or removed

» Compliance Audits» Quickly identify fixed content data and data

with regulatory requirements that should be placed on a compliance device


Akorri BalancePoint™

» Agent-less Collection Across Databases, Servers, Storage, VMware & Storage Virtualization

» Advanced Analytics & Modeling

» Performance and Utilization

» Troubleshooting & Root Cause

» Optimization and Planning

» Rapidly Delivers ROI:

» Faster Problem Resolution» Avoid Performance Problems» Planning and Optimization


Full IO Layer Visibility & Analysis

Guest Server (VM)

Application (within VM)

O/S Volumes (within VM)

O/S Server LUNs

(within VM)

VMFS Datastore

(ESX Host)Server LUNs(ESX Host)

RAID Set(Array)

Array

Complex Cross Domain Analytics made easy to understand: Green, Yellow, Red


Cross-Domain Performance ViewpointsBalancePoint delivers view from Application to Spindle

Application

Physical & Virtual Server

Volume

LUN

ASG Disk Group

Disk


Storage Consolidation Study - Example

Business Drivers:•Reduce TCO•Manage to Business Policy•Reduce Total Backup Time•Validate file types & Space consumption

•Distributed storage 50 TB•Distributed across multiple States•Validate file types & Space consumption•Overall tier 1 storage 84.8%, industry average < 40%•62% of file server data hasn’t been accessed in over 12 months•8.971 TB of data hasn’t been accessed in over 3 years

EVA

MSA

58 NetApp Filers

New SolutionEVA 8000X MSA 1000’sHP OVSAMStorage Works


Steps 1/2/3: Current State TCO, Alternatives and Comparison Year 1 Year 2 Year 3 3 Year Totals

Disk Cost (Current Approach) $180,000 $234,000 $304,200 $718,200

Tape Cost (Current Approach) $90,000 $117,000 $152,100 $359,100

Disk/software Cost (With ILM) $108,000 $140,400 $182,520 $430,920

Tape Cost (With ILM) $0 $45,000 $58,500 $103,500

Total Savings with ILM $87,000.00 $150,000.00 $195,000.00 $432,000.00

Differences with ILM

$270,000

$351,000

$456,300

$183,000 $201,000$261,300

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Cost year 1 Cost year 2 Cost year 3

3 Year

Dis

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ost

s

CurrentApproach

With ILM


What were seeing

» ~70% direct attached with ~20-30% of duplicate data storage» Using tier 1 storage for files not accessed outside of business policy – some

> 5 years» Around 1 admin per 10TB of storage» Main cost drivers are using tier 1 storage for all storage, direct attached vs.

a centralized (SAN/NSA) storage policy, System Admin, Maintenance, and Growth/Refresh

» Seeing 3 year TCO’s of around $750k 25TB of direct attached» Typical consolidation of 42% based on tiered storage» Typical IT Cost Reduction > 30% through a structured ILM strategy


Implementation …


Consolidation Steps» Identify project (Work with Insight Team to define scope)

» 100+ Windows Servers, 250+ Desktops» 10+ HP-UX or other Unix servers» >20TB Storage environment

» Gather info for 2 page Project Request Form» Submit to ATS for SOW and pricing » ATS submits to HP for funding approval

(2 week typical turnaround)» Funding approved » Delivery begins (1-2 weeks)» Collect Data (4 weeks)» Analyze and present results (1-2 weeks)


Thank You!

ats americas it consolidation may2008 - stocker.ppt

Technology

target platform cpu0

hardware platform c

utilization application

collector utilization

target dl585

target bl460c

target bl480c

target dl385