Server Consolidation November 2006 Paul Cosgrave Commissioner Do

Server Consolidation November 2006 Paul Cosgrave, Commissioner, Do. ITT Michael Bimonte, Deputy Commissioner, IU Christopher R. Ianniello, Assistant Commissioner, IU Copyright © 2006 VMware, Inc. All rights reserved.

IT Under Pressure Management requirements for improved IT efficiency Costly but underutilized hardware resources Difficulty of capacity planning for future projects Copyright © 2006 VMware, Inc. All rights reserved. Backlog of new IT projects demanded by business managers Budget constraints

But Already Facing Challenges Uncontrollable Server Growth Slow Development & Deployment Cycles Fire drills Inflexible, Costly Insecure Infrastructure Copyright © 2006 VMware, Inc. All rights reserved.

Datacenter Infrastructure Today Increasing use of x 86 servers • 91% of all enterprise servers bought in 2004 (Gartner Dataquest) But those servers are not utilized efficiently • Typical x 86 -based server utilization: 5 -15% • Best practice for x 86 servers of one application per server • Repurposing servers is difficult and costly And the need for servers continues to grow • Need to duplicate datacenter for disaster recovery • Need additional servers to support test and development of new applications • Need servers for staging Copyright © 2006 VMware, Inc. All rights reserved.

Result: Inflexible, Costly Server Sprawl • Dramatic increases in dedicated, under-utilized IT assets • Management of servers is costly and complex: maintaining this ‘server sprawl’ infrastructure can consume up to 65% of IT budgets • Inflexibility makes it hard to meet business needs “Through 2007, organizations with more than 200 servers will waste between $500, 000 and $720, 000 annually supporting underutilized application/server combinations” Gartner Research, December 2004 Copyright © 2006 VMware, Inc. All rights reserved.

Solving the Problem Virtual Infrastructure provides a managed approach to regain control over x 86 -based server sprawl Benefits: Reduce hardware costs up to 30 -50% Reduce operations costs up to 70 -80% Reduce total TCO up to 30 -70% Fully utilize server capacity Deploy new services efficiently Manage computing resources strategically Copyright © 2006 VMware, Inc. All rights reserved.

Server Virtualization Basics Before Virtualization: Single OS image per machine Software and hardware tightly coupled Running multiple applications on same machine often creates conflict Underutilized resources Inflexible and costly infrastructure Copyright © 2006 VMware, Inc. All rights reserved. After Virtualization: Break dependencies between OS and hardware Manage OS and application as single unit by encapsulating them into VMs Strong fault and security isolation VM’s are hardware-independent: they can be provisioned anywhere

Solving the Server Sprawl Problem • Server consolidation • Reduce number of servers for current projects • Applies to datacenter, development, test, staging, and disaster recovery environments • Server containment • Manage future server growth • Find ways to reduce need to provision new hardware Copyright © 2006 VMware, Inc. All rights reserved.

Comparing the Options Physical consolidation • e. g. racks, blades • Saves space, but does not improve utilization Application consolidation • Risk of application conflicts, resource contention Implement Virtual infrastructure • Optimizes utilization, availability, manageability • Delivers maximum ROI from hardware Copyright © 2006 VMware, Inc. All rights reserved. Web Server APP Server

Solution: Server Consolidation and Containment Virtual infrastructure provides a managed approach to regain control over x 86 -based server sprawl Server consolidation • Reduce number of servers in datacenter to reduce costs Server containment • Create virtual machines instead of provisioning new hardware • Reduces future hardware needs Copyright © 2006 VMware, Inc. All rights reserved.

Benefits of Solving Server Sprawl with Virtual Infrastructure Reduced TCO • Lower hardware costs through higher utilization • Lower administrative costs • Lower overhead costs for datacenter Copyright © 2006 VMware, Inc. All rights reserved. Enhanced Manageability Increased Flexibility and Responsiveness • SLA management capabilities • Instant provisioning using Virtual. Center • Better management of capacity planning • Easy to repurpose physical servers • Centralized management of virtual machines • Online workload management

Server Consolidation with VMware Means Customers Can Take This… 300 Servers Copyright © 2006

…and Replace It With This 300 Servers without VMware software 8 Servers, 1 rack

Consolidation Improves Hardware Utilization Before VMware After VMware Virtualization enables consolidation of workloads from underutilized servers onto a single server to safely achieve higher utilization Copyright © 2006 VMware, Inc. All rights reserved.

Benefit: Improved Capacity Planning Process • Monitor and tune utilization • Centralized virtual machine management • Monitoring & performance management • Automated provisioning and migration • Forecast future capacity needs • Use Virtual. Center to optimize utilization • Deliver zero-downtime maintenance • Continuous workload consolidation • Procure additional hardware based on longrange capacity forecasts, not in reaction to immediate project needs • Transform IT from reactive to proactive Copyright © 2006 VMware, Inc. All rights reserved.

Containment through Virtual Infrastructure • Backward containment • Combats sprawl due to maintaining existing projects • Enable support for older applications on new hardware via virtualization • Retire legacy hardware from the data center • Forward containment • Manage server growth for future projects • Allows incremental virtualization of workloads • Provision new projects with virtual machines instead of provisioning hardware Copyright © 2006 VMware, Inc. All rights reserved.

Degrees of Consolidation • Departmental consolidation • Identify applications on underutilized servers • Group many virtual machines on a single physical system • Datacenter consolidation • Extend virtual machines to single apps on dedicated servers • 100% virtual machines for better maintainability and disaster recovery support • Enterprise-wide consolidation • Virtualize entire primary and recovery datacenters Copyright © 2006 VMware, Inc. All rights reserved.

Leading Candidates for Virtualization • Workloads consuming a small server footprint Microsoft Exchange Server Windows NT App Server Microsoft SQL Server Active Directory Server – Infrastructure (Web, DHCP, firewall, file & print servers) – Messaging, small or partitionable databases • Servers with high rates of reconfiguration Microsoft IIS Web Server – Development and testing servers – Staging and proof of concept servers • Workloads with high uptime requirements – Share redundant elements across many workloads Copyright © 2006 VMware, Inc. All rights reserved.

Virtual Infrastructure Return on Investment üEnjoy rapid ROI – payback in 60 -90 days üReduce TCO of server infrastructure üCut hardware costs by 50+% üDecrease operational costs by 70+% üSlash overall deployment costs by 60+% üManage computing resources strategically üOptimize existing server resources üDeploy new services more efficiently üReduce hardware costs by 30 -50% Copyright © 2006 VMware, Inc. All rights reserved. 19