The Transformative Power and Business Case for

Cloud Automation

Rich Bourdeau, VMware

Rich Pleasants, VMware

OPT5474

#OPT5474

2 2

Agenda Introductions

Business Motivations

• Improve Service Delivery

• Operational Efficiency

Customer ROI Examples

• Optimizing Resource Utilization

• Private Cloud Extensibility

• Accelerate Virtualization Deployments

“Live” Cloud Operations Automation Tenants & Use Cases

• Proactive Incident & Problem, Performance Mgmt and Configuration Mgmt

Compliance

Proactive and Predictive Cloud Operations Benefits/Value

Q&A

3 3

Virtualization

► Accelerate service delivery

(weeks days)

► Resource pooling

► HW consolidation

The Next Wave of IT Efficiency

Waves of IT Efficiency Improvements

IT E

ffic

ien

cy

Time

► Accelerate service delivery

(days min)

► Improve operational efficiency

► Optimize resource utilization

► Reduce complexity via

standardization

Cloud

Automation

4 4

Cloud Automation – Accelerating IT Efficiency

2

Cost per VM hour

(2GB instance)

20¢

18¢

16¢

14¢

12¢

10¢

8¢

6¢

4¢

2¢

0¢

30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Virtualization,

Standardization

and Pooling 1

Utilization

Governance

& Automation

Service

Delivery Times

Minutes

Hours

Days

Weeks

Months

5 5

Private Cloud Business Motivations

Agility/Speed 57%

Business Allignment

12%

Cost 21%

Defend IT 3%

Quality 3%

Enable Hybrid 1%

Don't Know 2%

Improve

IT Efficiency

Increase

Business Agility

Fastest Time

to Cloud Value

Consumerization

of IT

Source: Gartner -The Drivers and Challenges

of Private Cloud Computing, Mar 2012

Efficiency = Agility

6 6

Cloud Automation Savings

Private Cloud Public Cloud

RO

I B

en

efi

ts

Improved

Operational Efficiency

Accelerated

Virtualization Deployment

Optimized

Resource Utilization

Capacity Bursting

Commodity Pricing

Hybrid Cloud

Resource Pooling

HW Consolidation

Virtualization

7 7

Improve Operational Efficiency

Source: Server Provisioning Automation: Vendor Landscape,

Donna Scott, Ronni J. Colville, February 3, 2011.

Time to provision virtual servers

Zero touch deployment and management

Automated resource reclamation

Enforce governance with policies not people

4-6 hours over multiple days even weeks

Storage Virtual

Step 1 Step 2

Network

Step 3 Step 4 Step N

Apps Track

8 8

Improve Operational Efficiency

“Prior to VMware Cloud Automation it would take half of a man day to install and

configure a desktop for a developer to use. With VMware this is now 20 minutes and the

developers are self-served.”

Neil Smith

Virtualization Engineer, MAN Investments

“With VMware, we have reduced the time needed to deploy VMs, as well as the effort of

individuals required to focus on manual steps to provision,” noted Rupani. “This is saving

money by refocusing resources toward strategic activities rather than building

servers.”

Altaf Rupani

Vice President of Global Systems Services, Dow Jones

Zero touch deployment and management

Automated resource reclamation

Enforce governance with policies not people

9 9

vCenter Operations—Self-Service Private Cloud

Dow Jones—US Publishing &

Financial Information Firm “vCloud Automation Center met all of our criteria. It was more complete and

more agile for our specific needs”

—Tejash Patel, Service Manager for Cloud Computing and Virtualization, Dow Jones

Challenges

Multiple infrastructure

tools not integrated—no

process automation

Manual IT service

delivery processes

Difficult to maintain

compliance standards,

scale delivery, and track

costs

Need to speed delivery

of environments to Dev

and UAT teams

Results

Private Cloud “go-live” in

~60 days

Two dedicated

developers to implement

Provisioning time

reduced from days to

minutes

Success recognized by

parent company

propelled adoption

across all business units

Solution

VMware vCloud

Automation Center and

Developers Toolkit

Secure, fully compliant

private cloud with a

personalized user

experience

Automatic request

fulfillment

10 10

The News Corp Cloud – My NC3

(www.MyNC3.com)

11 11

Optimize Resource Utilization

Scale & Change

Co

st

Centralized

Control

Delegated

Control

Enforce Governance with Policies not People

Reduce over provisioning

Leverage tiered service levels

Reclaim and reuse inactive resources Reduce Reuse Recycle

12 12

Optimize Resource Utilization Case Studies

“VMware enabled us to achieve more efficient server utilization and lower capital costs

while reduce our provisioning lead times from weeks to minutes.”

Stephen Hilton,

Managing Director, Servers and Storage, Credit Suisse

“Automated workflows for archival of inactive VMs allow the use of secondary storage at

$0.50/GB instead of scarce primary storage at $5-$10/GB… deliver significant

operational and cost benefits.”

Senior Engineer for Storage and Virtualization

Leading Software and Technology Services Company

Reduce over provisioning

Leverage tiered service levels

Reclaim and reuse inactive resources Reduce Reuse Recycle

ROI Impact: A typical company with 1,000 VMs, with…

5% of their machines created without proper business justification

5% of their machines that are over-provisioned

No process to automatically reclaim and reuse inactive resources

… could save between $200,000 - $250,000 in annual capital expenditures

13 13

VMware vCloud Automation Center— Private Cloud Extensibility

Fortune 500 Software & Tech Services Company

“We couldn't find another solution that had the depth, capabilities, or cost-effectiveness

of vCloud Automation Center,”… “Finally, the tools are catching up with our aspirations!“

—Sr. Engineer, Storage/Virtualization, Leading Software/Tech Services Company

Challenges

• Service delivery times

measured in many days

• Resources left running

because of long

provisioning and

reconfiguration times

• Operations could not keep

up with demand

• Poor perception of IT

Results

• Access to compute

resources in minutes

• Archiving inactive

machines saves $4.50/GB

• $225K/year savings per

1,000 machines

• IT now perceived as being

able to deliver

Solution

• vCloud Automation Center

enabled self-service

access to compute

resources

• Automated archival of

inactive machines to lower

cost storage

• Enabled secure, full

integration with existing

backup, archival &

chargeback technologies

14 14

Accelerate Virtualization Deployments

70% of IT projects over budget or behind schedule

Scaling virtual desktops and servers

What's its worth to achieve your deployment goals

15 15

Accelerate Virtualization Deployments

70% of IT projects over budget or behind schedule

Scaling virtual desktops and servers

What's its worth to achieve your deployment goals

"DynamicOps has made desktop virtualization a win/win for Credit Suisse. We are able to

improve the user experience through rapid service delivery, while maximizing the operational

ROI through automation and standardization."

Brad Novak

Managing Director End-user Platforms, Credit Suisse

“Without DynamicOps automated provisioning and management, we would not have been able

to deploy this many desktops. DynamicOps put our stalled desktop deployment plan back on

track, and we can now successfully scale to meet our needs.”

Data Center Director,

$2 Trillion Global Financial Services Firm

ROI Impact: A typical company with 2,000 physical servers and 1,000 VMs

Can save over $400,000 annually by accelerating its server virtualization plans by just 5%

Can save over $100,000 annually by accelerating its desktop virtualization plans by just 10%

16 16

VMware vCloud Automation Center—Automated Provisioning

Global Bank with $2T in assets, 100K+ employees “Without vCloud Automation Center’s automated provisioning and management, we

wouldn’t have been able to deploy this many desktops. VMware put our stalled desktop

deployment plan back on track, and we can now successfully scale.”

—Data Center Director

Challenges

New products/services

delayed — too slow in

providing virtual desktops

to developers

Labor intensive — no

automated provisioning

or management of virtual

desktops from the

virtualization software

Growing backlog of

orders, change requests,

hard to scale, added

costs

Results

Deployment time

reduced to < 2 hrs; no

backlog; implementation

running for 100K+ global

employees

Delays in delivering new

products/services due to

slow desktop

provisioning eliminated

Protected existing

software investment, with

flexibility to evolve as

technology changes

Solution

vCloud Automation

Center delivered virtual

desktops to employees

quickly

On resources located

close to users for

optimal performance

With customized

workflows to meet

specialized

requirements

17 17

Increase Profit by Being More Responsive

17

Keeping up with the accelerating pace of your business

“VMware enabled us to reduce our provisioning lead times from weeks to minutes.

This has resulted in more efficient server utilization and lower capital costs. An

additional benefit is the dramatic improvement in our ability to respond

rapidly to business needs”

Steve Hilton, Managing Director, Enterprise Servers and Storage, Credit Suisse

Improve Business Productivity

Enable new Business Opportunity

Business Challenge: New employees sat idle 3-4 days before they received desktop

Cost: $350 per day per person

with 10% annual turnover rate represented $700,000 per year for every

1000 new employees

ROI Challenge: Even if you can’t quantify benefits include qualitative benefits

How quickly can you repurpose and reconfigure resources to meet the demands

of new business opportunities?

What effect will this have on your business?

What is the risk of Ignoring Private Cloud infrastructure and having more

agile competitors take business from you

18 18

~80% of the Labor-related OpEx Efficiencies Are Realized by Freeing Up Resources in 5 Core IT Roles for Redeployment

1

8

24

3

3

4

4

5

6

FTE savings (spend)

% of total labor-related IT

spend

IT operator / production

Control

Systems administrator

Support analyst

Application developer /

system analyst

IT manager

Other roles2

Total Savings1

FTE savings (HC)

% of total IT HC1 Process

FINANCIAL INDUSTRY EXAMPLE

26

2

3

3

5

5

8

80% of

the labor-

related

OpEx

impact

1 Based on 1000 person archetypal IT organization

2 Other roles include Business Analyst, Project Manager, Finance Manager, Knowledge Manager etc.

19 19

Define

Assign

Enable

Validate

Tune

Evaluate

Define

Create

Maintain

Notify

Report

Audit

4 Key Tenants of “Intelligent” Automation

Change

Mgmt

Optimize

Processes

Criteria

For

Action

Notification

& Reporting

Intelligent

Automation

20 20

“Live” Operations Intelligent Automation Use Cases

Performance Management

Infrastructure and App Siloed Support

Highly Manual Monitoring Analysis

Incident & Problem Management

Labor Intensive with weak reporting

Highly Manual Diagnosis & RCA

Configuration Management

Accuracy and Compliance is challenging with rapid change rate.

Manual Rollbacks

21 21

Current State “Live” Operations

Incident & Problem

Situation: Reactive Analysis

Highly Manual

Lack of dependency visibility

Situation: Reactive to infra/app issues

Highly Manual Analysis

Situation: Reactive Config Enforcement

Lack of Config Changes View

Little alignment for all “Events”

Performance Configuration

Complications:

Little or no predictive analytics

Distributed App Support teams

Weak SD and Ops workflow

Complications:

Little or no predictive analytics

Silos infra and apps support

Addressed after users report

Complications:

Little Compliance Enforcement

Rollback is mostly manual

Ma

nu

al R

em

ed

iatio

n

22 22

Future State “Live” Operations

Incident & Problem

Actions:

Need for Cloud Analytics

Defined Super Metrics

Notification Workflows

Actions:

Act on certain smart alerts:

Increase memory

Increase storage

Restart a service

Resize a DB

Network Configure

Actions:

Act on “Change” Events:

Rollback

Notification

Performance Configuration

Benefits:

Shortens diagnosis effort

MTTR reduced for services

Prevents Service Outages

Improves Availability

Benefits:

% drop in perf issues

Less manual resolution

Prevents Outages

Benefits:

% drop in config outages

% rise in config compliance

Inte

lligen

t Au

tom

atio

n

23 23

Proactive “Live” Operations Key Enablers

8/27/2013

Proactive automated smart alerts for health, performance and capacity

degradation

Eliminate finger pointing, improve team collaboration and reduce manual

problem-solving efforts

Automated correlation of health, performance and change events at the

infrastructure and guest operating system level

Visualized application and infrastructure dependency mapping

automation

Key

Enablers

24 24

Benefits – Predictive Cloud Operations thru Automation

Agility

Reliability

Examples

Reduced downtime of Cloud Services

Improved adherence to SLAs

Improves quality of service and experience

Availability improved of business critical apps

Efficiency

Decreased non-Head Count-related

Streamlined automated remediation

Predictive measurement of cloud health and performance

Benefits &

Measures by

Dimensions

Increased speed to remediate faults or performance based

Predictive capacity and performance management

Rapid enhanced incident/problem RCA support and remediation

Automation and auditing of cloud service changes

25 25

Cloud Management Business Justification

Risk Of Ignoring

26 26

Quantifying Cloud Management ROI

27 27

Resources

Next Steps:

• Let us help you develop your Private Cloud Business Case

Whitepapers

• Controlling Virtual Machine Sprawl: How to Better Utilize Virtual Infrastructure

• How to Avoid the Hidden Costs That Derail Cloud Projects

• VMware vCloud Automation Center Extensibility Overview

Customer Case Studies

• Resources in the vCloud Automation Center page on VMware.com

VMworld Sessions

• VCM4952 - Practicing What We Preach: VMware IT on vCenter Operations

Management Suite and vCloud Automation Center (Monday 2:00-3:00)

• VCM5114 - IaaS Case Study: How the University of New Mexico Improved Service

Delivery Times Using vCloud Automation Center (Tuesday 5:30-6:30)

• VCM5240 - IaaS Case Study: How Apollo Group Delivered Business Relevant Cloud

Service Using vCloud Automation Center (Wed 10:00-11:00)

28 28

Other VMware Activities Related to This Session

HOL:

HOL-SDC-1307

vCloud Automation Solutions

Group Discussions:

OPT1004-GD

IT Financial Management for the Cloud with Khalid Hakim

OPT5474

THANK YOU

The Transformative Power and Business Case for

Cloud Automation

Rich Bourdeau, VMware

Rich Pleasants, VMware

OPT5474

#OPT5474