How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with...

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© 2009 VMware Inc. All rights reserved How to Cut Costs and Save Time with Virtualization for SMBs

Transcript of How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with...

Page 1: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

© 2009 VMware Inc. All rights reserved

How to Cut Costs and Save Time

with Virtualization for SMBs

Page 2: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

The Problem

Overwhelming complexity

>70% of IT budgets just to keep

the lights on

<30% of IT budgets goes to

innovation and competitive

advantage

Page 3: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

VMware Mission – “Make the Plumbing Disappear!”

“Make the plumbing

disappear – in the

Datacenter, in the Cloud,

on the Desktop…

and for the SMB”

“How can I extend my server and storage investment?”

“How can I deploy new services faster and with less effort/training?”

“How can I make my applications, esp. email, more available?”

“How can my backups be faster and more predictable?”

“How can I stop worrying about daily IT operations and plan for the future?”

Page 4: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

The Goal

IT

as a

Service

(Internally or

Externally

Provisioned)

Efficiency

Control

Choice

Page 5: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

© 2009 VMware Inc. All rights reserved

The Case for Virtualization

Page 6: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Why Virtualize with VMware and Dell?

1. VMware virtualization will get you

10x productivity on your servers

2. VMware virtualization delivers

affordable business continuity,

enabling “Always On IT”

3. VMware vSphere and Intel®

Xeon® processors deliver:

Greater flexibility and agility

Cost-effective availability and continuity

Higher VM density

Increased energy efficiency

With packages starting as low as

$330 per server, VMware

virtualization is a must-have for

every IT environment

• Increase power of every server

• Increase application availability

• Protect your data

Page 7: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Hardw

are

Virtualized World Physical World

How Do I Get 10x Productivity On My Servers?

Traditional x86 Architecture

• Legacy rule: Run only one application per server because single application crashes result in OS or server failure

• Typical hardware utilization under 8%

Virtualization:

• New rule: Run multiple applications per server because OS/applications are

isolated from one another

• Typical hardware utilization 80%

Page 8: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Impact on Small and Midsized Businesses

Increase Staff Productivity

Increase Application Availability

Reduce Physical Infrastructure Cost 1

Increase Data Protection

2

3

4

3-Yr Cost Savings

Opportunity*

20 Servers 50 Servers

$290k $774k

1 month

Payback

3 month

Payback

* VMware ROI Calculator

Page 9: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

ATER VMware

Servers 10

Utilization 8%

Annual Support

Costs

$5,000

Annual Power and

Cooling Costs

$8,334

Servers 3

Utilization 80%

Annual Support

Costs

$1,500

Annual Power and

Cooling Costs

$2,499

Before VMware

After VMware

More applications per machine

= less machines

Reduce Physical Infrastructure Cost 1

Over $9,000 per year in savings!!!

Immediate Savings on Hardware

Page 10: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Get More Done with Existing Staff

% of Time Spent on Maintenance

72%

Before VMware After VMware

24%

Source: IDC and VMware TAM program

Do more work with the same

number of people = operating cost

savings

Drivers of productivity

improvements include

Zero downtime maintenance

Built-in high availability

Dynamic patching

Instant provisioning

Automated disaster recovery

Increase Staff Productivity 2

Page 11: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Keep Your Business Running

Zero down-time failover of failed servers

Increase Application Availability 3

Detects server failures and migrates the VM to

a different physical server without human

intervention

Typical downtime

per failure

4 hours

Lost revenue per

hour

$2,416

Lost staff

productivity per hour

$50/hour

Average failures per

year

2

Average Downtime

Costs*

* Average company with 25 employees, 10 servers and $25m a year in sales

$29,328 per year!

OS APP

ESX

OS APP

OS APP

OS APP

ESX

OS APP

OS APP

Failed OS or server

Two levels of Application Protection

Fault Tolerance Zero-downtime failover; VM’s migrate off of failed servers Included in Acceleration kits

High Availability Automated reboot of VMs in the event of physical server failure Included in Acceleration kits & Essentials Plus

Page 12: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

OS

APP

Ensures Data is Protected

Agent-less, disk-based backup and

recovery of your VMs

VM or file level restore

Incremental backups and data

de-dupe to save disk space

De-duplicated

Storage

ESX

OS

APP

OS

APP

Increase Data Protection 4

Agent-less snapshot technology

Built in data protection

saves time and money

• Simplifies administration

• Faster recover times

• Less downtime = higher

staff productivity

Page 13: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Business Continuity: The Big Picture

Availability expectations

continue to increase

• RTO’s decreasing from

>24 hours to <12 hours

Cost of downtime continues to

rise

• Increasing dependence on x86

infrastructure

Business Continuity = Minimizing Downtime

40% of small businesses never reopen following a disaster. Of the

remaining companies, at least 25% will close within 2 years. -- U.S. Department of Labor

Typical downtime per

failure

4 hours

Lost revenue per hour $14k*

Lost staff productivity

per hour

$50/hour

Average failures per

year

2

Savings per Year $120k

Average Downtime Costs*

How much does down

time cost your business?

* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)

Page 14: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

© 2009 VMware Inc. All rights reserved

Why Refresh your Hardware

Page 15: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

~76% of the server install

base is still up for refresh Estimated 34% single-core

and 42% dual-core1

Server Refresh Opportunities in 2011

IDC believes replacement

cycles being delayed from 3-4

years to every 4-5 years.

Source IDC, 2009

Source: Gartner press release http://www.gartner.com/it/page.jsp?id=1209913

Approximately 1 million

servers have had their

replacement delayed by a

year.

Maintaining Aging Servers Limits Innovation & Growth Now is the Time to Refresh!

If you delayed

refresh in 2009, then

you’re not alone

Source: Intel. Intel® Xeon® shipments, 2005-2009.

2010 will mark an important return to installed

base refreshes driven by an uptick in enterprise

budgets, new technological innovations, and a

return to economic growth. Source: IDC, February 2010

Approximately 1 million servers have had their

replacement delayed by a year.

Source: Gartner press release

http://www.gartner.com/it/page.jsp?id=1209913

1 Source: IDC 2009 Q4 Server Tracker. Install base calculated by using this IDC data and a standard life-cycle distribution, and assumes 4- to 5-year replacement cycle in 2008 and 2009 when the recession hit.

Page 16: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

© 2009 VMware Inc. All rights reserved

VMware vSphere™ Editions for SMBs

Page 17: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

vSphere Essentials

Cost-effective

server

consolidation

and mgmt for

small offices

• Update Manager

• Virtual Center Foundation

(management console)

• 3 dual CPU licenses

• Includes 1-year of support

$995

vSphere 4.1 SMB Product Line

vSphere Essentials Plus

Cost-effective

availability

and data

protection for

small offices

• High Availability

• Data Recovery

• Update Manager

• Virtual Center Foundation

(management console)

• 3 dual CPU licenses

$3995

$2995 (25% off - limited time only)

vSphere Advanced

Acceleration Kit

Full-featured

virtualization

solution for

all size

environments

• Fault Tolerance

• vMotion

• vShield Zones

• Hot Add

• High Availability

• Data Recovery

• Update Manager

• Virtual Center Foundation

(management console)

• 30 Training Credits (optional)

• For 3 hosts

$10,495

**All Prices USD RRP**

Only $330 per server

Under $1,000 per server

Page 18: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

vSphere Acceleration Kits – 2011 Lineup

• One of the most popular kits in 2009, VMware has

extended the Advanced Kit into 2010

• 6-CPUs of vSphere Advanced, features includes

• VMotion

• Fault Tolerance

• Data Recovery

• High Availability

• vCenter Server Foundation

vSphere Advanced Acceleration Kit – 36% off list

Kit list price: $10,495

Component list: $16,470

Savings: $5,975 (36%)

Part #: VS4-AD-AK

Page 19: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

vSphere Acceleration Kits – 2011 Lineup

• We’ve listened to partners and customers who have

requested a bundle package with vSphere Enterprise

and vCenter Standard

• 6-CPU license of vSphere Enterprise, features include:

• DRS/DPM

• Storage Vmotion

• Vmotion

• High Availability

• Fault Tolerance

• Data Recovery

• vCenter Server Standard

Introducing the new vSphere Midsize Acceleration Kit – 25% off list

Kit list price: $17,795

Component list: $23,750

Savings: $5,955 (25%)

Part #: VS4-MS-AK

Page 20: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

VMware

Essentials

VMware

Ess Plus

Other

Solutions

2-way server (4GB RAM) $6,000 $6,000 $6,000

Cost: Guest Windows licenses1 $5,998 $5,998 $5,998

Cost: Virtualization license* $330 $999 $0*

Subtotal $12,328 $12,997 $11,998

Total VMs2 (512MB each)** 12 12 10

Cost per VM $1,027 $1,083 $1,199

Plus:

VMware software is more reliable, has more features and better performance

than any other virtualization product on the market

VMware beats the competition even if their products are “free”

*single server cost when purchased in 3-server bundle

**average VMs per physical machine

VMware Offers The Lowest Cost Per Application (VM)

Page 21: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Resources and Next Steps

• VMware solutions for Small and Midsized businesses:

http://www.vmware.com/solutions/smb/

• Intel’s IT center – solutions to address your IT needs from client to server

http://www.intel.com/itcenter

• Learn more about the Intel | VMware solution:

http://www/vmware.com/go/intel

• Find a VMware Partner:

http://www.vmware.com/partnerlocator

• Find an Intel Distributor:

http://www.intel.com/buy/index.htm

• Download ESXi for Free:

http://www.vmware.com/go/get-free-esxi/

• Evaluate VMware vSphere free for 60 days:

http://www.vmware.com/go/EvaluatevSphere

• VMware Go™ — the Quick and Easy On-ramp to Virtualization

http://www.vmware.com/products/esxi/go.html

Page 22: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

© 2009 VMware Inc. All rights reserved

Thank you!

Page 23: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Appendix slides

Page 24: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

Product Feature Comparison

Product Feature Enterprise Plus

Acceleration Kit

($20,895)

Advanced

Acceleration Kit

($10,495)

Essentials Plus

($2,995)

Essentials

($995)

Max

functionality

DRS, DPM, Storage VMotion,

Host Profiles, Distributed Switch

Fault

Tolerance Zero down-time failover

Max

scalability

Can scale beyond 3 physical

servers

VMotion Moves running VMs between

physical servers

vShield

Zones Integrated security

High

Availability

Automated restart of failed

physical machines

Data

Recovery

Agent-less, deduplicated

backups

Update

Manager Updates all VMs simultaneously

Includes 3 dual-CPU licenses

Page 25: How to Cut Costs and Save Time with Virtualization for SMBs · How to Cut Costs and Save Time with Virtualization for SMBs . The Problem Overwhelming complexity >70% of IT budgets

VMware vSphere = Lowest Cost Per Application

$26,991 Windows Server DataCenter Ed.

$1,499 Management*

$4,500 Storage

$21,850 Server HW

$13,504 Network, Power,

Space

$4,388 vSphere Essentials Plus +

SnS

$72,731 (with 2 yrs support)

$26,991 Windows Server DataCenter Ed.

$8,954 Management*

$26,450 Server HW

$4,500 Storage

$14,337 Network, Power,

Space

$81,232 (with 2 yrs SA)

Essentials Plus costs 10% less even at equal

consolidation ratios

6:1 average

consolidation ratio

6:1 average

consolidation ratio**

Cost to deploy 15 VMs

VMware vSphere 4

Essentials Plus

$4,849 per App

Windows Server 2008

with Hyper-V

$5,415 per App

Use the VMware Cost-per-

Application Calculator to figure

out your cost-per-application

* includes cost of servers and software (management, OS, SQL) required by the virtualization solution. vSphere Essentials is bundled with one license of VMware vCenter

Server Foundation. Microsoft management software includes System Center Virtual Machine Manager Workgroup Edition, System Center Essentials

** Assumes 1.5 VMs per core in a 2 socket dual core server, 16 GB RAM ($5,000 estimated unit cost), iSCSI storage