What does the future hold for IT skill sets?

Co-authored numerousOsborne/McGraw-Hill) Ran AccessFlow, recd.

VMware Advantage + Award

Steve Kaplan VP Data Center Virtualization

INX Data Center Virtualization Success

VMware 2010 Global Desktop Partner of

the Year!!!

Clouds are moving in (ie AB 2408)

Cloud Computing Models

• Private

• Public

• Community

• Hybrid

Cloud Layers & Service Models

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

IT-as-a-Service(ItaaS)

Virt: Server Babysitting Going Away

Server admins tied to pServers

• Transparency concerns

• No need for card-keys

• On/off button for reboots

• Escorting vendors

• Switching backup tapes

• Memory upgrades

Private Cloud Requirements

IT specialists must become data center architects

IT needs to understand & present economic drivers

IT needs to understand & present business drivers

No Longer Required

Functional Team DissonanceManual administration & interaction

Integrated Compute Stack

Cloud Management Platforms

Public Cloud: Skills Required

• Governance strategy & planning

• Security

• Service Architecture Specialists

• Project Management

• Negotiation

• Supplier Management

• New Developer skills

Public Cloud: No longer required

• HW maintenance

• Technical IT jobs in general

• Server & data center layout & design

• Facilities planning (power design, HVAC, etc.)

Hybrid Cloud: Skills Needed

All of the private & public skill sets plus...

• Security, security, security

• Portal management

• Process management

Community Clouds

• Governance & security policy planning

• Geographically disbursed multi-tenancy

• Operating level agreements between all members

• Trust in physical security employed by each member

IT can Focus on Productivity

Data Mining Web Analytics and Statistics

Business Intelligence

• Openness to change

• Creativity

• Communication skills

• Collaboration

• Entrepreneurship

Putting the Service in ITaaS

Virtualization Challenges

Source: 2011 – The State of IT Automation

Data Center Gridlock

• VM Stall on the Virtualization Journey

– Most organizations ~ 10% - 50% virtualized

– Virtualization efforts only expand slowly or stall completely

The Road to VM Stall

• VMware’s original mantra, “get an eval copy in the hands of the techies”

• Strategy worked great – sales rocketed

• Even as VMware matured, virtualization remained piecemeal

Looking through a Physical Filter

• Physical infrastructure consumes the lion’s share of financial and staffing resources

• VMs viewed as tertiary infrastructure

Virtualization = New Problems

• VM Sprawl

• I/O bottlenecks

• Efficient provisioning of virtual infrastructure

Increased Complexity

• More objects to manage

– VMs

– Hosts

– vSwitches

– vAdapters

– Hypervisors

• More Tools

• More Processes

Nothing Driving Investment

IT Must Continually go Back to the Well

• More licensing

• More memory

• More storage

• New hosts

The Virtualization Journey Hits a Dead End

• Risk Aversion

• Staff & skills shortage

• Process Issues

• Collaboration

• No Money

Required: A new IT Mindset

• Turn the data center perception on its head

• Make virtualization the standard

• Physical machines become the one-offs

Financial/Business Drivers

• Discounted cash flow analysis

• IRR/ROI/payback

• Additional benefits

– Green initiatives

– High Availability

– Disaster recovery

• Desktop

• Voice / UC

Financial Metrics

• Discounted cash flow analysis

• ROI = (Savings – Investment)/Investment

• Payback period = Amount of time required to cover investment costs with savings

• IRR = Discount rate that makes the NPV of all cash flows from the investment equal to zero.

5 New servers added per year on average

84 copies of MS Windows Srvr (8 Ent)

4 Yr. Server refresh cycle

32 CPUs of SQL Server Standard

Denton County Physical IT Environment

Servers (Existing)

Unit Cost Physical Virtual

New Servers (5/yr)

Power/Cool New Servers

Power/Cooling Servers

$10,000 $1,200,000

Maintenance

Windows Srvr (74 Std)

Total

$250,000

$432,000

$ 56,250

Savings

$1,063,830

$250,000$10,000

$75

$ 125,183

$75

$ 789

$136,170

-

$27,000

-

$32,648

$430,218$2,360,633

$405,000

$ 56,250

<$32,648>

$125,183

$1,930,415

-

Windows Srvr (10 Ent) $ 54,850$ 2,559 <$20,150>

-

$75,000

SQL Srvr (16 Std) $ 215,493$ 6,285 $215,493-

-SQL Srvr (0 Ent-8 CPU) -$23,910 <$159,400>$159,400

5-Year Savings for 96 Servers

- -

Unit Cost

Virtualization & virtual switch licenses

Total

$ 55,000

$267,000

Versus savings of $1,930,000 ROI=623% over 5 years. 8.3 month payback

Storage $ 42,000

9 Dell R710 Hosts w/96 GB RAM $ 137,000

Services/Training $ 33,000

Virtualization Investment

Procurement process for physical servers a lengthy ordeal

All but four clustered servers vulnerable to downtime

Colloaction facility extremely expensive – needed to downsize

City & County of SF Physical IT Challenges

Lot of time spent rebuilding test server environments

Less than 1/6 of servers SAN connected

Backup solutions range from continuous to none

Aging & inefficient IT infrastructure lacked network monitoring & other basic reporting capabilities

Unit

Virtualization licenses

Total

5-Year Savings from 1st 330 servers $14,840,474

Storage

Virtualization Hosts $ 425,000

Services/Training $ 400,000

Virtualization Investment

vSphere

$ 172,160

$ 408,750

$1,405,910

5-Year ROI 956%

Private Cloud Green Benefits

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1 2 3 4 5

vDC Carbon Footprint Comparison - Production

Current State: CO2 Pounds Created Per Year vDC: CO2 Pounds Created Per Year

-

100

200

300

400

500

600

1 2 3 4 5

Carbon Car Equivalent Reduced with vDC

Strategic desktop strategy?

Virtualized Desktops

OPEXCAPEX

For every $1 spent on hardware, companies spend $3 to manage.

$1

$3$3

Source: IDC Study 2009

The Cost of Desktop Management Is Staggering

Incr

ea

sin

g I

T c

ost

s

Are the needs of IT and end-users being met?

VDI Use Cases

• Windows 7 migrations finally replacing XP

– Old PCs with <128MB RAM can’t go to Win7

• Security/Management

• Reduced Cost

• Disaster Recovery

• Regulatory Compliance

• Increased User Productivity

Location Aware Virtual Desktop®The ability to actively push

actionable content to a users

virtual desktop based on who

they are, where they are and

what they are close to.

VDI: Perception is Reality

• 18,000 students

• 4:1 student:PC ratio

• Aging PCs: thousands over 8 years old Old PCs with <256MB RAM can’t go to Win7 or run modern

apps

• Management/security expense

Tyler Independent School District

Physical Environment

Tyler Independent SD

VDI Objectives

• BYOPC

• Reduced IT staff requirements

• Reduced costs

• Improved management/security

• Additional devices/sessions

• Facilitate Windows 7 Upgrade

Tyler ISD – Phase 1

• 2,500 User “Pilot” (PCs only this phase)

• Blind trial between VDI & physcial PCs

• VMware View (following XD comparison test)

• Vblock back-end infrastructure

• AppSense for user personalization

• Trend-Micro anti-virus

Physical/Virtual PC Maintenance

Physical Virtual

PC / UCS Power Cost

UCS Maintenance Cost

$ 337,500

VMware View SNS

$ 278,580

-

Savings

$ 168,750

< 47,044>

-

-

$ 68,934 < 68,934>

Unit

-

TISD: 5-Year OPEX: Physical vs. VDI

Trend Micro SNS Cost $ 27,786 -

Total $ 3,821,312 $ 3,133,534 $ 687,788

VMware vSphere Ent Plus SNS $ 52,440 -

Staffing Expense – Physical PCs $ 625,000 $ 2,500,000

AppSense SNS < 68,694>

$ 52,440

$ 27,786

-

-

$ 168,750

$ 325,624

Staffing Expense – Virtual PCs $ 1,298,295 < 1,923,295>

< 197,760>

$ 68,694

$ 197,760

-

$3,125,000

New Storage SNS - < 300,240>$ 300,240

Unit Cost

VMware View Licenses

New UCS + 3 Yrs SNS

Total

$139,325

$509,865

$1,878,942

$428,252

TISD - VDI Investment

AppSense Licenses + 3 Yrs SNS

New EMC Storage + 3 Yrs SNS $512,236

TrendMicro Anti-Virus + 3 Yrs SNS $ 43,030

Services/Training $233,944

UPS $ 12,200

Unit Cost

Upgraded PCs (2,500 @ $910)

Net CAPEX Reduction

$2,276,225

$ 397,283

CAPEX VDI Reductions (Year 1)

Less total VDI investment $1,878,942

Tyler ISD: 5-Year Cash Flow by Year

Financial MetricsYear Cash Flow

Investment ($1,878,942)

Year 1 $2,550,316

Year 2 $274,091

Year 3 $274,091

Year 4 ($62,247)

Year 5 ($72,247)

Total $1,085,061

ROI 58%

Payback 8.8 Months

IRR 50%

Social Media Career Enhancement

@ROIdude

For More Information

Shane Sullivan Steve Kaplan

Regional Dir Sales VP Virtualization

916-979-6950 707-745-8585

shane.sullivan@INXi.com steve.kaplan @INXi.com

www.INXi.com