dc seminar nairobi vmware presentation

Server Virtualization – The Right Investment

Phares Kariuki,Westcon Africa

Agenda Economic Environment in 2010Why VMware is a Strategic InvestmentEvolution of VirtualizationProven Customer Success

The Rough Road Ahead….

Source: Goldman Sachs IT Spending Survey, Nov 2nd 2008Source: IMF World Economic Outlook Report, Nov 6th 2008

Total IT spending is the “lowest in the history of the survey”.

Goldman Sachs IT Spending Survey

A global economic recession is forecasted for 2009

US -0.7% GDP growthEMEA -0.5% GDP growth

The economic environment is a leading indicator of tech spending

71% of CIOs anticipate flat or decreasing IT spending budgetsIT budgets in developed countries set to decline by 5%

The IT Dilemma

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

The Problem

� Overwhelming complexity� >70% of IT budgets just tokeep the lights on� <30% of IT budgets goes to innovation and competitive advantage

Your Business Can Change Only as Fast as Your IT Can

Where the IT Budget Goes

42%InfrastructureMaintenance

30%ApplicationMaintenance

23%ApplicationInnovation

5%Infrastructure Investment

The Goal

ITas a

Service(Internally or Externally

Provisioned)

EfficiencyControlChoice

VMware Solutions Delivers

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

Efficiency Control Choice

Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment

Increase Productivity, OperationalFlexibility and Responsiveness3

Reduce Datacenter Operating Cost (e.g. Power & Cooling)2

Reduce Physical Infrastructure Cost1

10

Reduce Server Spend Through Consolidation VMware…Decouples software from hardwareEncapsulates Operating Systems and applications into “Virtual Machines”

A Server or Desktop Virtual Machine

Typical Consolidation: 10:1

Typical Excess Hardware Capacity: 3

Years!

X

The Always On, Optimized, Energy Efficient DatacenterShared pools of resources

Self-optimizingFault tolerant

VMware Infrastructure

Self-protectingAutomated

VI Transforms Critical Infrastructure Services…

Consolidation & Containment

ApplicationAvailability

Security

ResourceManagement

BusinessContinuity

Service Level Management

VMware Infrastructure

Availability

Security

Performance

Rolling Out a New Business Service

Availability

Security

Performance

Lowest TCO

Becomes a Matter of Specifying Required SLAs

APP Internal Cloud

External CloudInternal Cloud

Unlock new market based economies of scale, service and innovation beyond what currently exists today

APP APP

InternalCloud

Cloud OSManagement

ExternalClouds

Cloud OSManagement

On the Internal or External Cloud

IT Leaders Can Say “Yes!”We can deliver new business services…

Business Loss Due to Datacenter Outage

Infrastructure Cost Per App

Days to Provision a New App

On time56 $14,235

$5,694

2

Within Budget$30 MM

$4 MM

With Assured QoS

Before After Before After Before After

* The above data comes from specific VMware customer case studies

Copyright © 2005 VMware, Inc. All rights reserved.

Reduce Energy Consumption

Copyright © 2005 VMware, Inc. All rights reserved.

Highest consolidation rates on most secure and reliable virtualization platformSafely improve utilization rates80% energy reduction

Dynamic server and storage migrationPower off unneeded servers in real-timeMigrate storage dynamically25% energy reduction

Host desktop PCs in the datacenter Use thin clients, double refresh cycleReduce storage for similar desktop images70% energy reduction

OSAPP

OSAPP

OSAPP

DPM consolidates workloads onto fewer servers when the cluster needs fewer resources

Places unneeded servers in standby modeBrings servers back online as workload needs increase

ESX supports Intel Speed Step/AMD Power now for individual host power optimizationMinimizes power consumption while guaranteeing service levelsNo disruption or downtime to virtual machines

vCompute vStorage vNetwork

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

VMware vSphere™

Green IT with VMware vSphere™ Power Optimization features

DPM powers off server when requirements are lower

DPM brings servers back online when load increases

Additional 20% Reduction in Power Costs with DPM…

DPM Savings calculated for a datacenter with 100 physical servers

16,800

Hours per Week

Before DPM

13,200

$80,300

$63,093

Dollars per Year

After DPM

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) = 1130.625 watts/hrCost of energy = $ 0.0813 per kWH (source: Energy Information Administration)

Virtual machine disks consume only the amount of physical space in use

Virtual machine sees full logical disk size at all timesFull reporting and alerting on allocation and consumption

Significantly improve storage utilizationEliminate need to over-provision virtual disksReduce storage costs by up to 50%

vStorage Thin ProvisioningvCompute vStorage vNetwork

ESXOSAPP

OSAPP

OSAPP

Datastore

Virtual Disks 20GB

40GB

20GB

20GB

60GB20GB

100GB

Thick Thin Thin40GB 100GB

vNetwork Distributed SwitchvCompute vStorage vNetwork

Aggregated datacenter level virtual networkingSimplified setup and changeEasy troubleshooting, monitoring and debuggingEnables transparent third party management of virtual environments

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

OSAPP

VMware vSphere™vNetwork Distributed SwitchvSwitch vSwitch vSwitchCisco Nexus 1000V

Total Savings per Workload

Servers 1000 80 $5,816Network Switches

84 10 $296

Power (kWh) 407 52 $759Cooling (kWh) 509 64 $949Real Estate (Sq ft) 2053 257 $431Savingsper Workload(Over 3 years)

$8,251*

BEFORE AFTER SAVINGS

• Actual customer savings per application; represents typical savings• Includes estimated cost of VMware licenses, Support and Subscription

VMware consolidates servers, storage and networking infrastructure to safely achieve higher utilization

Physical Infrastructure1

Operating Cost2

Decreasing Operating Costs

Workloads per Admin

30–75

Before VMware After VMware

90–225

Source: IDC and VMware TAM program

Do more work with the same number of people = operating cost savingsDrivers of productivity improvements:

Instant provisioningDynamic patchingZero downtime maintenanceBuilt-in high availabilityAutomated disaster recovery

Productivity, Flexibility & Responsiveness

3

Cost of Ownership?Obvious Costs/Savings

Physical ServersVirtualization License CostsInstallation LaborMaintenance LaborSAN InfrastructureNetworking InfrastructurePower/CoolingDatacenter Space

Forgotten Costs/SavingsLabor ReassignmentEfficienciesShared Storage PowerOS License CostsSnS CostsUptime Savings

Cost per VM is a CRITICAL MetricCost 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 downtimeLab Manager saves money and avoids Management costs

VMware is Lowest TCO Per VM

VMware VI3Foundation

VMware VI3Enterprise

Other Solutions

2-way server (16GB RAM) $7,000 $7,000 $7,000Cost: Guest Windows licenses1 $5,998 $5,998 $5,998Cost: Virtualization license $995 $5,750 $0Subtotal $13,993 $18,748 $12,998Total VMs2 (2GB each) 15* 15* 7Cost per VM $933 $1,250 $1,857

1 List price for 2-socket Windows 2003 Server Datacenter Edition2 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

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.

VMware’s cost-per-VM beats even “free” products…

plus …

The Virtualisation Journey

CapacityOn Demand

Hypervisor

Management

VirtualInfrastructure

AutomateSeparate Consolidate Aggregate

Self-Managing Datacenter

Server Consolidation

Test and Development

Computing Clouds

Hypervisor Hypervisor

Management

Hypervisor

Management

VirtualInfrastructure

Automation

Liberate

CapExSavings

OpExSavings

Business Agility

5

4

3

2

1Enterprise

Maturity Level

VMware Infrastructure -> Virtual Datacenter OS

App

OS

App

OS

App

OS

The Evolution of VMware Infrastructure

Application vServices Scalability

Infrastructure vServices

SecurityAvailability

vNetworkvStoragevCompute vCloud

Off-premise Cloud

ESXvCenter

Application Management

Infrastructure

Management

DesktopLinuxSaaS Windows J2EE.Net

30

Meet Service Levels EfficientlyUsing VMware virtual infrastructure, we can offer the same levels of service and more flexibility for up to 40 percent lower server and operating costs.”

Rob Jones, Director of Technology, ALSTOM

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

Customer Testimonials

Simplify ManagementThe 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

Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

“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 Sachs11/2/2008

Which software providers are gaining share of your IT spending dollars?

VMware is the Proven Leader and Provides the Highest ROI

Which software providers are gaining share of your IT spending dollars?

12 Quarters#

Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

VMware Continues to be the #1 Software Investment for CIOs in a Tough Economy

Gaining1. VMware2. Cisco Software3. Red Hat4. Oracle5. Informatica6. salesforce.com7. Microsoft8. EMC Software9. Symantec10. Citrix

VMware

Available ResourcesOnline ROI/ TCO Calculator: Robust and customizable analysis of virtualization’s impact on your IT budget and datacenter costs www.vmware.com/calculator

Why Choose VMware: Vendor selection checklist to ensure a Complete, Robust, Proven Virtual Infrastructurewww.vmware.com/technology/whyvmware/

THANK YOUMERCI

DANKE SCHÖN

GRAZIEGRACIAS

REKHMETTAVTAPUCHHVALA

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DANKEKÖSZÖNÖM

BARKALGIITTUS TACK

Appendix

VMware vSphere: Most EfficientEfficiency

Hardware Scale Out

Virtual Hardware (VM) Scale Out

CPU Efficiency

Memory Efficiency

Power Efficiency

Storage Usage Efficiency

x 4-way on Win08 only64 GB vRAM

Network Management Efficiency

x 32 logical cores128 GB RAM

Automated Patching Efficiency

~ 24 logical cores1 TB RAM� 64 logical cores

512 GB RAM

� 8-way vCPU255 GB vRAM

x Req. HW-assist for WinReuse gen-OS schdlerx Requires HW-assist

Reuse gen-OS schdler� CPU HW-assist or BTVirt-specific scheduler

x Memory HW-assistNo overcommitmentx Memory HW-assist

No overcommitment� Memory HW-assistOvercommit / sharing

x No Cluster-level Mgmtx No Cluster-level Mgmt� DPM: Cluster-level power management

x Only via 3rd partystorage vendor

x Nonex None� Distributed switch3rd party virtual switch

x Host patching, but noauto guest patchingx Host patching causes

VM downtime� Transparent host patchAuto guest patching

x Thin disks, but nomonitoring tools� Thin provisioning

Monitoring tools

Hot-add/remove Virtual Resources � Add: vCPU, vMemAdd: virtual disk x None x No hot-add CPU, mem

Add: virtual disk

~ 8-way vCPU32 GB vRAM

New capability in VMware vSphereNote: Many improvements were also made to existing VI3 capabilities

VMware vSphere: Uncompromised ControlControl

Control for Server Maintenance

Control for Storage Maintenance

Control of Resource Allocation

Fault Tolerance for VMs

Control during NIC Failure

Thin Hypervisor to Reduce Attack Surface

Better Security than Physical

x Nothing comparable� VMware EnhancedStorage vMotion

x 3rd party for DRSNo logical poolsx Pro Tips has downtime

No logical pools� VMware DRSLogical Resource Pool

x Promised featurehasn’t shipped yetx No VM-level protection� VMware Fault

Tolerance

x XenServer1.8GB disk footprintx Hyper-V w/ Server Core

>2GB disk footprint� VMware ESXi70-100MB disk footprint

x Nothing comparablex Nothing comparable� VMware VMSafe API3rd party support

x Relies on network vendor to provide� Integrated NIC teaming

x Nothing comparable

x Quick Migrationcauses downtime� VMware vMotion (w/

Enh Compatibility) � XenMotion

Control during Host or VM Failure

Control during Entire Site Failure

x Only for host failure1-VM-per-LUN issue� VMware HA

Up to 32 nodes

x Nothing comparablex Geo-clustering has noworkflow, testing, audit� VMware Site Recovery

Manager

~ Supported, but mayrequire CLI to configure

~ Only for host failureUp to 16 nodes


VMware vSphere: Maximum ChoiceChoice

Choice thru Guest OS Support

Choice thru Hardware Support

Choice thru Application Support

Integrating with Existing Mgmt Tools

Choice in “Cloud” Service Provider

Interoperability between Internal &External CloudChoice in Using Existing Apps inthe Cloud

x 20 OSs supported

� Leader category(per leading analyst firm)

x Citrix Essentials APInot readily available

x Apps need to be rewritten for MS cloud� Run existing apps w/o

rewriting code

x Very limited HCL~100 Servers

x 11 OSs supportedWindows biased

~ Next-tier category(per leading analyst firm)

x Building a MS-hostedoffering� VMReady program for

cloud providers

� >30 OSs supportedMore Windows than MS

x No clear cloud strategy



x Apps in MS cloud don’t come back out� VMReady ensures

interoperability

~ Can integrate, but SCcompetes w/ existing� Dozens of integrations

vCenter API via SDK


~ Using Windows driversPotential driver issues� Large HCL: >450 HBAs,

>160 NICs,>450 Servers

� Leader category(per leading analyst firm)