VMware — takaisinmaksuaika 6 kk Petri Ulmanen Sr

VMware - takaisinmaksuaika 6 kk! Petri Ulmanen Sr. Systems Engineer pulmanen@vmware. com

The Rough Road Ahead…. A global economic recession is forecasted for 2009 US -0. 7% GDP growth EMEA -0. 5% GDP growth The economic environment is a leading indicator of tech spending 71% of CIOs anticipate flat or decreasing IT spending budgets IT budgets in developed countries set to decline by 5% Total IT spending is the “lowest in the history of the survey”. Goldman Sachs IT Spending Survey Source: Goldman Sachs IT Spending Survey, Nov 2 nd 2008 Source: IMF World Economic Outlook Report, Nov 6 th 2008

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

Recent CIO Surveys Agree: Virtualization is the Top CIO Priority in a Tough Economic Environment “The current environment has moved virtualization toward the top of the priority list for CIOs. ” Source: Merrill Lynch CIO Survey, Oct 28 th, 2008 Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008 “Total cost of ownership (TCO) reductions will be a key driver of the acceleration in server virtualization deployments as CIOs are forced to cut capital spending and reign in management, administrative and power/ cooling costs. ”

Customers Are Still Moving Ahead with Virtualization in 2009 CIOs expect to double the percentage of servers virtualized in 2009 Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

VMware Continues to be the #1 Software Investment for CIOs in a Tough Economy VMware Gaining 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. VMware Cisco Software Red Hat Oracle Informatica salesforce. com Microsoft EMC Software Symantec Citrix 1 # 12 Quarters Which software providers are gaining share of your IT spending dollars? Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

VMware is the Proven Leader and Provides the Highest ROI “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 Sachs 11/2/2008 Which software providers are gaining share of your IT spending dollars? Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment 1 Reduce Physical Infrastructure Cost 2 Reduce Datacenter Operating Cost (e. g. Power & Cooling) 3 Increase Productivity, Operational Flexibility and Responsiveness

Reduce Server Spend Through Consolidation Typical Consolidation: 10: 1 VMware… Decouples software from hardware Encapsulates Operating Systems and applications into “Virtual Machines” A Server or Desktop Virtual Machine Typical Excess Hardware Capacity: 3 Years! 11

Reduce Energy Consumption Highest consolidation rates on most secure and reliable virtualization platform Safely improve utilization rates 80% energy reduction Dynamic server and storage migration Power off unneeded servers in real-time Migrate storage dynamically 25% energy reduction Host desktop PCs in the datacenter Use thin clients, double refresh cycle Reduce storage for similar desktop images 70% energy reduction Copyright © 2005 VMware, Inc. All rights reserved.

Total Savings per Workload VMware consolidates servers, storage and networking infrastructure to safely achieve higher utilization BEFORE SAVINGS 2 Operating Cost 1000 80 $5, 816 Network Switches 84 10 $296 Power (k. Wh) 407 52 $759 Cooling (k. Wh) 509 64 $949 Real Estate (Sq ft) 1 Physical Infrastructure Servers AFTER 2053 257 $431 Savings per Workload (Over 3 years) • Actual customer savings per application; represents typical savings • Includes estimated cost of VMware licenses, Support and Subscription $8, 251*

Decreasing Operating Costs 3 Productivity, Flexibility & Responsiveness 90– 225 Do more work with the same number of people = operating cost savings Drivers of productivity improvements: Instant provisioning Dynamic patching 30– 75 Zero downtime maintenance Built-in high availability Before VMware After VMware Workloads per Admin Source: IDC and VMware TAM program Automated disaster recovery

VMware is Lowest TCO Per VM VMware’s cost-per-VM beats even “free” products… VMware VI 3 Foundation VMware VI 3 Enterprise 2 -way server (16 GB RAM) $7, 000 Cost: Guest Windows licenses 1 $5, 998 $995 $5, 750 $0 $13, 993 $18, 748 $12, 998 15* 7 $933 $1, 250 plus … $1, 857 Cost: Virtualization license Subtotal Total VMs 2 (2 GB each) Cost per VM Other Solutions VI 3 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. 1 List price for 2 -socket Windows 2003 Server Datacenter Edition 2 Assumes a 2: 1 memory overcommit ratio based on VMware advanced memory mgmt technologies * Assumes 1 GB of memory used by “host virtualization SW” for all vendors

Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment 1 Reduce Physical Infrastructure Cost 2 Reduce Datacenter Operating Cost (e. g. Power & Cooling) 3 Increase Productivity, Operational Flexibility and Responsiveness

Available Resources Online 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 Infrastructure www. vmware. com/technology/why vmware/

Appendix Petri Ulmanen Sr. Systems Engineer pulmanen@vmware. com

VMware & Sähkönkulutus

Energiankulutus ei kiinnosta? Gartner: ”Sähköenergian kustannukset tällä hetkellä ovat n 10% ITbudjetista ja voivat nousta 50%: iin muutamassa vuodessa” IDC: ”Vuoteen 2008 mennessä palvelinten sähköenergian kulutus ylittää palvelinten hankintahinnan” Esimerkkilaskelma: • Keskisuuri yritys maksaa sähköenergiasta n 6 snt/kwh • Palvelimen sähkönkulutus 0. 4 kwh 0, 58€/vrk => 18€/kk => 216€/v • 1 kwh palvelimessa = 2 kwh muualla (jäähdytys, varavoima, ym) • Palvelimen aiheuttama sähkönenergiankulutus vuodessa 216€ + 2 x 216€ = 648€/v/palvelin

40 fyysistä palvelinta – 13815 W Palvelimet: CPU: 2 x. Quadcore RAM: 6 GB/palvelin Hinta: 4000€/palvelin Yht: 320 CPU, 240 GB 160. 000€

Virtualisoitu ympäristö 4 palvelinta – 1536 W Palvelimet: CPU: 2 x. Quadcore RAM: 32 GB/palvelin Hinta: 5000€/palvelin Yht: 32 CPU, 128 GB 20. 000€

Esimerkkikokoonpanon energiankulutus • • Sähköenergian hinta 6 snt/kwh 1 kwh palvelimessa = 2 kwh muualla (jäähdytys, varavoima, ym) • Virtualisoimaton ympäristö: Palvelimet 13, 8 k. Wh Jäähdytys 27, 6 k. Wh Yhteensä 41, 4 k. Wh x 0, 06 snt = 2, 5€/h = 60€/vrk = 21. 900€/v • Virtualisoitu ympäristö: Palvelimet 1, 53 k. Wh Jäähdytys 3, 07 k. Wh Yhteensä 4, 60 k. Wh x 0, 06 snt = 0, 28€/h = 6, 6€/vrk = 2. 418€/v Säästöt energiankulutuksessa 36, 8 k. Wh = 19. 482€ VMware lisenssit + ylläpito alle 20. 000€ (svh)

Appendix Petri Ulmanen Sr. Systems Engineer pulmanen@vmware. com