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1

An Analyst’s View on

Server Consolidation

and Virtualization

An Analyst

An Analyst

’

’

s View on

s View on



and Virtualization

and Virtualization

The Business Benefits and Value of

The Business Benefits and Value of

Server Consolidation and Virtualization

Server Consolidation and Virtualization

Joe Clabby

October 11, 2006

October 11, 2006

Speaker Background

Speaker Background

28 years in computer industry

28 years in computer industry

Sales/marketing/research & analysis

Sales/marketing/research & analysis

Areas of focus

Areas of focus

Microprocessor technologies

Microprocessor technologies

Multi

Multi

-

-

core/multi

core/multi

-

-

threading

threading

32

32

-

-

/64bit migration

/64bit migration

Systems and storage technologies

Systems and storage technologies

Consolidation, virtualization, and

Consolidation, virtualization, and

provisioning

provisioning

Blades, grids, scale

Blades, grids, scale

-

-

up designs

up designs

Vendors closely followed

Vendors closely followed

AMD, Dell, EMC, Hewlett

AMD, Dell, EMC, Hewlett

-

-

Packard,

Packard,

Intel, IBM, Oracle, Sun, Microsoft

Intel, IBM, Oracle, Sun, Microsoft

October 11, 2006

My Job: Make This Stuff Clear

My Job: Make This Stuff Clear

Utility Computing

Finds/allocates resources

Dynamic Web Services

Allows cross-platform, loosely

coupled applications to inter-

operate

Virtualization

Dynamic partitioning, automatic resource

allocation (of storage, computing, …)

Integrated Development Environments

Collection of application development tools and

utilities closely linked to underlying infrastructure

to make application development/management easier

Data Federation

Products/tools that enables disparate data to

be shared across disparate databases/structures

Vertical/Horizontal Infrastructure Integration

Cross platform program-to-program vertically through operating

system/coms subsystem; Common horizontal (cross environment)

standards for security, collaboration, management

Systems/Network/Application/Database Self-management

Systems/applications et al that are capable of adaptive/autonomic behaviors

such as self-healing, self-diagnostics, self configuration, self-optimization,

self-protection

Grid Computing

Products and middleware for

distributed resource inter-

action and management

J2EE and .NET

Program environments and

infrastructure that provide

the basis for Web services

Business Process Integration/Management

Tools/products that enable the application designers

to create applications that exploit process flow in

order to improve operational efficiency

Hardware

Differences between AMD

Opteron, UltraSparc,

Intel EPIC, Power

Operating Environment

The readiness of Linux;

the status of Unix;

the advance of Windows

October 11, 2006

Agenda

Agenda

What other analysts are saying


A quick review of your handouts

A quick review of your handouts

My View

My View

The Big Picture

The Big Picture

–

–

business process flow

business process flow

over SOA over CVP

over SOA over CVP

How do you do this?

How do you do this?

Scale

Scale

-

-

up (scale within), Scale

up (scale within), Scale

-

-

out (grids,

out (grids,

blades, distributed,

blades, distributed,

…

…

)

)

Which partners do you choose?

Which partners do you choose?

Buying criteria

Buying criteria

How do you measure results?

How do you measure results?

Summary Observations


October 11, 2006

What Other Analysts Are Saying




International Technology Group

International Technology Group

Key foci:

Key foci:

Cost savings

Cost savings

Level of investment

Level of investment

IT cost savings only

IT cost savings only

–

–

or other benefits?

or other benefits?

Looked at diverse multi

Looked at diverse multi

-

-

vendor Unix

vendor Unix

environments

environments

–

–

and the same applications and

and the same applications and

workloads on P5

workloads on P5

Findings:

Findings:

Server acquisition and operational costs average

Server acquisition and operational costs average

51% less than mixed Unix environment

51% less than mixed Unix environment

Downtime costs 47% less

Downtime costs 47% less

Application and workload migration may add cost

Application and workload migration may add cost

Broader benefits

Broader benefits

Reduced management costs

Reduced management costs

Paves the way for more flexible infrastructure

Paves the way for more flexible infrastructure

and business process flow

and business process flow

October 11, 2006





PUND

PUND

-

-

IT, Inc. (Charles King)

IT, Inc. (Charles King)

“

“

System p LPAR solutions can help enhance

System p LPAR solutions can help enhance

business and IT processes ranging from

business and IT processes ranging from

elementary small business and remote office

elementary small business and remote office

server consolidation to the highest levels of

server consolidation to the highest levels of

on demand computing

on demand computing

”

”

Good explanations:

Good explanations:

3 levels of partitioning

3 levels of partitioning

Hardware (isolate partitions)

Hardware (isolate partitions)

Software (one kernel

Software (one kernel

–

–

multiple applications

multiple applications

run in isolated environments)

run in isolated environments)

Hypervisor

Hypervisor

(firmware

(firmware

–

–

multiple operating

multiple operating

environments on the same machine

environments on the same machine

IBM

IBM

’

’

s APV (advanced POWER virtualization)

s APV (advanced POWER virtualization)

–

–

simplifies management by making

simplifies management by making

resources all look like one

resources all look like one

October 11, 2006





PUND

PUND

-

-

IT, Inc. (cont

IT, Inc. (cont

’

’

d)

d)

APV (continued)

APV (continued)

Virtual I/O server supports sharing of virtual

Virtual I/O server supports sharing of virtual

SCSI and virtual networking

SCSI and virtual networking

Makes server consolidation easier

Makes server consolidation easier

Virtual Ethernet supports high speed inter

Virtual Ethernet supports high speed inter

-

-

partition communications

partition communications

Micropartitioning

Micropartitioning

and Advanced Load Manager

and Advanced Load Manager

help enhance flexibility and ease

help enhance flexibility and ease

-

-

of

of

-

-

use

use

Many real world examples:

Many real world examples:

Sinopec

Sinopec

Corporation (China);

Corporation (China);

Alstom

Alstom

Information Technology Centre;

Information Technology Centre;

Acquedotto

Acquedotto

Pugliese;US

Pugliese;US

Tennis Association; Victoria

Tennis Association; Victoria

Partnership for Academic Computing

Partnership for Academic Computing

Ends with linking to business performance

Ends with linking to business performance

October 11, 2006





Next was my discussion (

Next was my discussion (

Clabby

Clabby

Analytics) about Itanium architecture

Analytics) about Itanium architecture

–

–

we

we

’

’

ll save that for another day

ll save that for another day

…

…

Or go to:

Or go to:

http://www.accelacast.com/webcasts/wh

http://www.accelacast.com/webcasts/wh

ymigrate/

ymigrate/

for a 25 minute rant on

for a 25 minute rant on

Itanium architecture, Hewlett

Itanium architecture, Hewlett

-

-

Packard

Packard

’

’

s

s

implementation and performance, and

implementation and performance, and

the Itanium Solutions Alliance

the Itanium Solutions Alliance

Next was Clay Ryder

Next was Clay Ryder

’

’

s buying advice

s buying advice

ROI, support, and ecosystem are very

ROI, support, and ecosystem are very

important

important

More from Clay tomorrow

More from Clay tomorrow

October 11, 2006



Next was Joyce

Next was Joyce

Becknell

Becknell

from

from

Sargeza

Sargeza

Great discussion of multi

Great discussion of multi

-

-

core and

core and

multi

multi

-

-

threading, as well as caching

threading, as well as caching

Processors and cores are synonymous

Processors and cores are synonymous

Threads are streams of instructions

Threads are streams of instructions

Caching helps make sure resources aren

Caching helps make sure resources aren

’

’

t

t

kept waiting

kept waiting

Very useful for applications with many

Very useful for applications with many

repetitive tasks where data gets reused

repetitive tasks where data gets reused

from cache

from cache

Sun, HP, AMD and Intel refer to a

Sun, HP, AMD and Intel refer to a

sixteen

sixteen

-

-

chip system (32 cores) as a

chip system (32 cores) as a

16 way

16 way

IBM refers to 8 chips with sixteen

IBM refers to 8 chips with sixteen

cores as a 16 way

cores as a 16 way

Makes benchmarking confusing

Makes benchmarking confusing

…

…

October 11, 2006



We all have common themes and

We all have common themes and

we all agree that:

we all agree that:

Hardware

Hardware

–

–

much more performance

much more performance

out of servers due to multi

out of servers due to multi

-

-

core/multi

core/multi

-

-

threading advances

threading advances

Consolidation and virtualization

Consolidation and virtualization

represents a means to exploit these

represents a means to exploit these

new server designs

new server designs

Aging servers will ultimately be replaced

Aging servers will ultimately be replaced

Maintenance will drive tech refresh

Maintenance will drive tech refresh

Reduce management costs, improve

Reduce management costs, improve

availability, simplify testing, and improve

availability, simplify testing, and improve

utilization benefits

utilization benefits

IBM has leadership products for

IBM has leadership products for

doing this

doing this

October 11, 2006

•

A major oil company achieved $147 million in cost savings

A major oil company achieved $147 million in cost savings

by streamlining business process flow using a balanced

by streamlining business process flow using a balanced

scorecard approach

scorecard approach

•

•

A city government provided a 35% reduction in the time it

A city government provided a 35% reduction in the time it

takes to deliver services to citizens

takes to deliver services to citizens

–

–

and realized a 29%

and realized a 29%

improvement in satisfaction among its own workers

improvement in satisfaction among its own workers

•

•

A bank reorganized the way that work flows within its

A bank reorganized the way that work flows within its

branches and began formally measuring performance

branches and began formally measuring performance

―

―

resulting in a 50% increase in the time that loan officers ar

resulting in a 50% increase in the time that loan officers ar

e

e

able to spend working with clients

able to spend working with clients

•

•

A property and casualty insurance company reduced claims

A property and casualty insurance company reduced claims

processing costs by 20%, and reduced claims processing

processing costs by 20%, and reduced claims processing

time by two

time by two

-

-

thirds

thirds

–

–

resulting in greater customer satisfaction

resulting in greater customer satisfaction

while greatly reducing processing time and cost

while greatly reducing processing time and cost

•

•

A computer maker streamlined its supply chain process flow,

A computer maker streamlined its supply chain process flow,

resulting in $2.7 billion in hardware cost savings and a

resulting in $2.7 billion in hardware cost savings and a

$3 billion reduction in procurement

$3 billion reduction in procurement

-

-

related costs

related costs

My View: The Big Picture

My View: The Big Picture

October 11, 2006

The Big Picture

The Big Picture

Find and exploit virtualized resources

Activate nascent computing resources

(CUoD) and/or memory blocks

Dynamically Reconfigure

(repartition) Existing System

Locate Other Resources (Grids, Distributed

Networks, and/or XSP utility providers)

Business Process Flow

Cross-platform program-to-program

communications and data sharing

Resource Virtualization

Service-oriented Architecture

Business Process Flow

Blades and Racks

Breaks-up applications

into thousands of services

Virtualized design ideal

for providing underlying

support for these services

October 11, 2006

The Big Picture

The Big Picture

Take multiple

distributed servers

and/or storage

devices

Blade/rack

Scale-up

Consolidate

Virtualize

Partition in scale-up;

Create resource pools

in scale-out

Provision

Determine policies

and procedures to

handle certain work-

loads; script them;

automatically build-up/-

tear down environments

to meet workload SLAs

October 11, 2006

What is IT Consolidation?

What is IT Consolidation?

The move by enterprises to merge

The move by enterprises to merge

multiple systems, applications, databases,

multiple systems, applications, databases,

operating environments that reside on

operating environments that reside on

multiple distributed servers onto fewer,

multiple distributed servers onto fewer,

often larger platforms/storage devices

often larger platforms/storage devices

To achieve:

To achieve:

Manageability benefits

Manageability benefits

Security benefits (fewer access points)

Security benefits (fewer access points)

High

High

-

-

availability

availability

Greater utilization of systems and servers

Greater utilization of systems and servers

Easier access to virtualized services

Easier access to virtualized services

Workload balance

Workload balance

Simplified testing

Simplified testing

and deployment

and deployment

Reduced complexity (versions, licenses, etc.)

Reduced complexity (versions, licenses, etc.)

October 11, 2006

Multiple Benefits to Consolidation

Multiple Benefits to Consolidation

Server

Server

Scale

Scale

-

-

up at the platform level to achieve manageability

up at the platform level to achieve manageability

benefits and greater platform utilization

benefits and greater platform utilization

Failover

Failover

Use partitions for failover to achieve high

Use partitions for failover to achieve high

-

-

availability

availability

O/S consolidation

O/S consolidation

Update OS versions into one version & run on a single box or

Update OS versions into one version & run on a single box or

run multiple

run multiple

OSs

OSs

on single platform

on single platform

Easier to manage, version control, etc.

Easier to manage, version control, etc.

Application consolidation

Application consolidation

Merge multiple application instances into one application

Merge multiple application instances into one application

server

server

Some applications run better

Some applications run better

“

“

scaled

scaled

-

-

up

up

”

”

–

–

so put

so put

them there

them there

Provides opportunities to streamline versions,

Provides opportunities to streamline versions,

licenses, service level agreements, sparing, etc.

licenses, service level agreements, sparing, etc.

Database Consolidation

Database Consolidation

Merge multiple database into one large DB environment

Merge multiple database into one large DB environment

Better control of data; synchronized database for data federatio

Better control of data; synchronized database for data federatio

n

n

October 11, 2006

Why Consolidate and Virtualize

Why Consolidate and Virtualize

?

?

What

What

’

’

s the ultimate business benefit?

s the ultimate business benefit?

Improper process flow creates

Improper process flow creates

inefficiencies

inefficiencies

–

–

inefficiencies result in

inefficiencies result in

higher operational costs

higher operational costs

Optimized business process flow results in

Optimized business process flow results in

lower Sales, General, and Administrative

lower Sales, General, and Administrative

(SG&A) costs that are passed directly to the

(SG&A) costs that are passed directly to the

bottom line in terms of increased profitability

bottom line in terms of increased profitability

October 11, 2006

Ultimately, the purpose

Ultimately, the purpose

is to build an

is to build an

information systems

information systems

environment that makes

environment that makes

it possible (and easier)

it possible (and easier)

to serve business

to serve business

process flow

process flow

Means information

Means information

systems serve

systems serve

process flow (not the

process flow (not the

other way around)

other way around)

1950 1960 1970 1980 1990 2000

Automation

BPM

Financial Systems; Office Automation; Manufacturing; Distribution; Sales Force Automation; …

Design,

Model,

Integrate,

Adapt,

Monitor,

Control

Integration

ERP/SCM/CRM

Standardization

Comms & Networking (the Internet); OSs,

Development Environs (J2EE & .NET); …

October 11, 2006

Case Studies

Case Studies

BAE SYSTEMS

BAE SYSTEMS

Advanced defense and aerospace systems

Advanced defense and aerospace systems

3 key problems

3 key problems

The approaching obsolescence of existing hardware

The approaching obsolescence of existing hardware

Lack of capacity to sustain and improve the

Lack of capacity to sustain and improve the

performance of its Baan application

performance of its Baan application

High recurring support costs for a platform that could

High recurring support costs for a platform that could

no longer deliver what the business needed

no longer deliver what the business needed

Worked with IBM Premier Business Partner CSC to

Worked with IBM Premier Business Partner CSC to

replace more than ten application servers with two

replace more than ten application servers with two

partitioned IBM pSeries 670 servers w/IBM AIX 5.1

partitioned IBM pSeries 670 servers w/IBM AIX 5.1

Reduction of recurring support costs; improved

Reduction of recurring support costs; improved

speed of batch processing; simplified hardware

speed of batch processing; simplified hardware

management and support; improved scalability, and

management and support; improved scalability, and

ability to respond to peaks in demand by switching

ability to respond to peaks in demand by switching

on additional processors

on additional processors

October 11, 2006

Case Studies

Case Studies

Sodexho Asia Pacific


Leading providers of food and multi

Leading providers of food and multi

-

-

services, with more than 300,000

services, with more than 300,000

employees spread over 76 countries

employees spread over 76 countries

Issues:

Issues:

With growth in some AP countries

With growth in some AP countries

exceeding 40 percent, the company

exceeding 40 percent, the company

needed to respond rapidly to service

needed to respond rapidly to service

opportunities

opportunities

Each country

Each country

’

’

s back

s back

-

-

office systems

office systems

needed to be robust enough to handle

needed to be robust enough to handle

the huge spikes in invoice and purchase

the huge spikes in invoice and purchase

order activity that major new contracts

order activity that major new contracts

typically generate.

typically generate.

October 11, 2006

Case Studies

Case Studies



Fragmented business processes were

Fragmented business processes were

especially harmful in the area of food

especially harmful in the area of food

procurement

procurement

The combination of huge purchasing

The combination of huge purchasing

expenditures and low profit margins made

expenditures and low profit margins made

it especially important to consolidate its

it especially important to consolidate its

purchasing power

purchasing power

Each unit using its own

Each unit using its own

siloed

siloed

procurement system, the company

procurement system, the company

had no way to get an aggregated

had no way to get an aggregated

picture of its purchasing opportunities

picture of its purchasing opportunities

October 11, 2006

Case Studies

Case Studies



The Fix:

The Fix:

Designed and deployed a single common

Designed and deployed a single common

platform for its core back

platform for its core back

-

-

office systems

office systems

Consolidated, simplified and standardized the

Consolidated, simplified and standardized the

back

back

-

-

office processes running on the platform

office processes running on the platform

Results:

Results:

3% reduction in overall procurement costs through process

3% reduction in overall procurement costs through process

standardization

standardization

—

—

that goes straight to the bottom line

that goes straight to the bottom line

100% payback within 2 years

100% payback within 2 years

25% reduction in total project cost by outsourcing back

25% reduction in total project cost by outsourcing back

-

-

office applications and infrastructure

office applications and infrastructure

More robust back

More robust back

-

-

office systems to handle rapid growth

office systems to handle rapid growth

Major reductions in administrative resource costs

Major reductions in administrative resource costs

Stronger decision

Stronger decision

-

-

making capability and improved

making capability and improved

responsiveness through greater information transparency

responsiveness through greater information transparency

October 11, 2006

Case Studies

Case Studies

J

J

Garc

Garc

í

í

a

a

Carri

Carri

ó

ó

n

n

Wine, fruit juices and natural drinks, and

Wine, fruit juices and natural drinks, and

gazpacho, sold under the

gazpacho, sold under the

‘

‘

Don

Don

Sim

Sim

ó

ó

n

n

’

’

brand

brand

name

name

Issue:

Issue:

Broken process flow (integration of sales, mfg.,

Broken process flow (integration of sales, mfg.,

…

…

)

)

Fixes:

Fixes:

New, integrated SAP environment

New, integrated SAP environment

2 IBM System p5 570 servers, each with four IBM

2 IBM System p5 570 servers, each with four IBM

POWER5 processors, of which two are active. Both

POWER5 processors, of which two are active. Both

servers run IBM AIX 5L

servers run IBM AIX 5L

One supports the SAP solutions while the other hosts

One supports the SAP solutions while the other hosts

a large Oracle database

a large Oracle database

Previously had six machines,

Previously had six machines,

“

“

now we have just

now we have just

two IBM p5

two IBM p5

-

-

570 servers, offering greater capacity

570 servers, offering greater capacity

and performance

and performance

”

”

October 11, 2006

Case Studies

Case Studies

J

J

Garc

Garc

í

í

a

a

Carri

Carri

ó

ó

n

n

(cont

(cont

’

’

d)

d)

Results:

Results:

Transactions are processed much faster now,

Transactions are processed much faster now,

and SAP response times have improved from

and SAP response times have improved from

800 to about 600 milliseconds, despite the

800 to about 600 milliseconds, despite the

extra workload

extra workload

Each of the p5

Each of the p5

-

-

570 servers is up to eight

570 servers is up to eight

times more scalable than the previous

times more scalable than the previous

systems, and with the Capacity on Demand

systems, and with the Capacity on Demand

feature

feature

The company can grow up to 16 times more

The company can grow up to 16 times more

with existing systems

with existing systems

–

–

handling future

handling future

business growth without disruption or high

business growth without disruption or high

cost

cost

October 11, 2006

Case Studies

Case Studies

Whirlpool

Whirlpool

$13 billion home appliance maker

$13 billion home appliance maker

Issue: good process flow regionally

Issue: good process flow regionally

–

–

but needed to improve

but needed to improve

overall process flow across the company

overall process flow across the company

Fixes:

Fixes:

SAP standardization played a key role by enabling Whirlpool to

SAP standardization played a key role by enabling Whirlpool to

manage its business globally, resulting in higher efficiency and

manage its business globally, resulting in higher efficiency and

lower

lower

costs

costs

Overhaul of Whirlpool

Overhaul of Whirlpool

’

’

s global infrastructure strategy.

s global infrastructure strategy.

The company now operates a single data center in Benton Harbor,

The company now operates a single data center in Benton Harbor,

Michigan (down from a high of 40) managed remotely by IBM Global

Michigan (down from a high of 40) managed remotely by IBM Global

Services staff located in Brazil.

Services staff located in Brazil.

Once a patchwork of disparate systems, its infrastructure now

Once a patchwork of disparate systems, its infrastructure now

consists of IBM eServer pSeries and zSeries servers, with IBM DB

consists of IBM eServer pSeries and zSeries servers, with IBM DB

2

2

providing core database functionality for SAP and IBM Tivoli

providing core database functionality for SAP and IBM Tivoli

products

products

Whirlpool can now ramp up capacity quickly, avoid large upfront

Whirlpool can now ramp up capacity quickly, avoid large upfront

expenditures and keep costs variable and predictable

expenditures and keep costs variable and predictable

October 11, 2006

How to Consolidate

How to Consolidate

Determine goal(s)

Determine goal(s)

Reduce management costs

Reduce management costs

Balance Workload

Balance Workload

Connect multiple databases/federate data

Connect multiple databases/federate data

Increase utilization rates

Increase utilization rates

…

…

Examine the vendor

Examine the vendor

’

’

s

s

manageability environment

manageability environment

Look for self

Look for self

-

-

management tools/utilities (monitor, control,

management tools/utilities (monitor, control,

tune, analyze,

tune, analyze,

…

…

)

)

Look for workload balancing; partitioning software

Look for workload balancing; partitioning software

Look at process management; performance optimization

Look at process management; performance optimization

October 11, 2006

How to Consolidate

How to Consolidate

Examine platform characteristics

Examine platform characteristics

How far up does it scale?

How far up does it scale?

8

8

-

-

way, 16

way, 16

-

-

way, 32

way, 32

-

-

way

way

…

…

How does it handle partitioning/virtualization?

How does it handle partitioning/virtualization?

Examine application/database

Examine application/database

portfolios

portfolios

Application designs

Application designs

Some work better when consolidated (SAP, for

Some work better when consolidated (SAP, for

instance)

instance)

Database design/deployment

Database design/deployment

Disparate databases?

Disparate databases?

–

–

Think about how to create a

Think about how to create a

consistent view of data

consistent view of data

Many applications make use of differing database features

Many applications make use of differing database features

…

…

October 11, 2006

How to Consolidate

How to Consolidate

Professional Services

Professional Services

Find expertise

Find expertise

Many OEMs have programs in place

Many OEMs have programs in place

for consolidation can help save the

for consolidation can help save the

enterprise money in design and

enterprise money in design and

training

training

October 11, 2006

Virtualization

Virtualization

What is

What is

“

“

virtualization

virtualization

”

”

?

?

Several different types of

Several different types of

virtualization

virtualization

Systems/storage/network


All about pooling resources

All about pooling resources

Application virtualization

Application virtualization

Isolates applications into containers to

Isolates applications into containers to

prevent conflicts (DLL, registry,

prevent conflicts (DLL, registry,

…

…

)

)

Information virtualization

Information virtualization

Taking abstracts of information from multiple

Taking abstracts of information from multiple

sources and placing that information closer to

sources and placing that information closer to

the processor pool

the processor pool

Others?

Others?

October 11, 2006

Virtualization

Virtualization



virtualization

virtualization

“

“

a single logical view of multiple physical

a single logical view of multiple physical

resources

resources

”

”

Those resources can be:

Those resources can be:

Internal/external processors

Internal/external processors

Internal/external disk or distributed SAN/NAS arrays

Internal/external disk or distributed SAN/NAS arrays

Hubs, routers, and other network devices

Hubs, routers, and other network devices

Objective

Objective

To create an environment where unused storage,

To create an environment where unused storage,

processor, and network capacity can be found and

processor, and network capacity can be found and

exploited

exploited

October 11, 2006

Virtualization

Virtualization

Applications virtualization

Applications virtualization

Design point

Design point

–

–

to isolate

to isolate

applications from one

applications from one

-

-

and

and

-

-

other in self

other in self

-

-

contained

contained

partitions

partitions

Reduces conflicts and failures

Reduces conflicts and failures

Microsoft, Dell through

Microsoft, Dell through

Altiris

Altiris

, IBM,

, IBM,

Hewlett

Hewlett

-

-

Packard [HP], Sun, and

Packard [HP], Sun, and

others offer this type of functionality

others offer this type of functionality

31

Virtualization

Virtualization

Information

Information

virtualization

virtualization

Mainframe

Servers

Data

Workstations

3 U

Racks and

Blades

e

-

Mail

Flat Files

Multimedia Files

Relational Database

Other File Types

Virtualized

Processing

Pool

Virtualized

Networking

Pool

Virtualized

Storage

Pool

Virtualized

Information

in Local

Cache

Find information

Rationalize information

Transform/cleanse information

Exploit available

bandwidth from

the network pool

Cache

(if appropriate)

Process

(rapidly)

Extract,

Clean

Present

October 11, 2006

Virtualization

Virtualization

Why virtualize?

Why virtualize?

Primary benefits:

Primary benefits:

Increases utilization

Increases utilization

Decreases management costs

Decreases management costs

Improves availability

Improves availability

Enables the creation of virtual test

Enables the creation of virtual test

environments

environments

October 11, 2006

Virtualization

Virtualization

How to virtualize

How to virtualize

Several different

Several different

approaches

approaches

Scale

Scale

-

-

up

up

An exercise in

An exercise in

partitioning disk

partitioning disk

or activating

or activating

unused CPUs

unused CPUs

Scale

Scale

-

-

out

out

An exercise in

An exercise in

managing

managing

resource pools

resource pools

Various

Various

configuratio

configuratio

ns including

ns including

grids,

grids,

blades,

blades,

distributed

distributed

networked

networked

systems and

systems and

storage

storage

Multiple resources within

a single box (and even micro-

partitioned CPUs…)

1 U

1 U

1 U

1 U

1 U

1 U

1 U

1 U

1 U

1 U

Grid-in-a-Box,

Blades, Rack

mounts, etc.

and/or

October 11, 2006

Case Studies

Case Studies

Alstom

Alstom

Information Technology

Information Technology

Centre GmbH

Centre GmbH

Transport engineering and power generation

Transport engineering and power generation

Issue:

Issue:

German power generation division needed a new

German power generation division needed a new

server and storage infrastructure capable of

server and storage infrastructure capable of

delivering improved performance with lower TCO

delivering improved performance with lower TCO

Actions:

Actions:

Migrated critical ERP systems away from end

Migrated critical ERP systems away from end

-

-

of

of

-

-

life platform to two clustered IBM eServer p5

life platform to two clustered IBM eServer p5

570 systems, running two separate SAP software

570 systems, running two separate SAP software

instances using IBM Advanced POWER

instances using IBM Advanced POWER

Virtualization on AIX 5L V5.3; two IBM

Virtualization on AIX 5L V5.3; two IBM

TotalStorage DS4300 systems; implementation

TotalStorage DS4300 systems; implementation

and configuration services from IBM Business

and configuration services from IBM Business

Partner CENIT AG

Partner CENIT AG

Systemhaus

Systemhaus

October 11, 2006

Case Studies

Case Studies

Alstom

Alstom

Information Technology Centre

Information Technology Centre

GmbH (cont

GmbH (cont

’

’

d)

d)

Results:

Results:

Ability to scale up on demand

Ability to scale up on demand

High server resource utilization

High server resource utilization

through virtualization

through virtualization

Ability to respond rapidly to

Ability to respond rapidly to

changing business requirements

changing business requirements

High scalability, availability and

High scalability, availability and

reliability

reliability

Estimated 30% reduction in total

Estimated 30% reduction in total

cost of ownership compared with

cost of ownership compared with

previous infrastructure

previous infrastructure

October 11, 2006

Case Studies

Case Studies

Erstes

Erstes

Burgenl

Burgenl

ä

ä

ndisches

ndisches

Rechenzentrum

Rechenzentrum

(EBRZ)

(EBRZ)

EBRZ provides outsourced IT services for

EBRZ provides outsourced IT services for

government agencies, healthcare providers,

government agencies, healthcare providers,

utility companies and a variety of small and

utility companies and a variety of small and

mid

mid

-

-

sized businesses

sized businesses

Issue:

Issue:

Needed IT infrastructure to keep pace with

Needed IT infrastructure to keep pace with

the demands of its customers

the demands of its customers

Customer needed to move to SAP ERP 2005

Customer needed to move to SAP ERP 2005

EBRZ was faced with rebuilding its existing IT

EBRZ was faced with rebuilding its existing IT

infrastructure

infrastructure

Existing environment was based on a

Existing environment was based on a

mixture of Intel processor

mixture of Intel processor

-

-

based and

based and

Unix servers was outdated, and would

Unix servers was outdated, and would

not be able to run the new software

not be able to run the new software

effectively

effectively

October 11, 2006

Case Studies

Case Studies

Erstes

Erstes

Burgenl

Burgenl

ä

ä

ndisches

ndisches

Rechenzentrum

Rechenzentrum

(EBRZ)

(EBRZ)

–

–

(cont

(cont

’

’

d)

d)

Action:

Action:

Consolidated 23 servers to logical partitions

Consolidated 23 servers to logical partitions

on just two IBM System p5 570 servers

on just two IBM System p5 570 servers

running AIX 5L 5.3

running AIX 5L 5.3

Implemented a SAN based around two IBM

Implemented a SAN based around two IBM

System Storage DS6800 storage systems,

System Storage DS6800 storage systems,

with IBM System Storage SAN Volume

with IBM System Storage SAN Volume

Controller software for storage virtualization

Controller software for storage virtualization

Benefits:

Benefits:

Lower total cost of ownership

Lower total cost of ownership

Faster and more reliable data backup

Faster and more reliable data backup

More efficient use of processing and storage

More efficient use of processing and storage

resources

resources

More flexible and scalable infrastructure,

More flexible and scalable infrastructure,

offering high reliability and availability

offering high reliability and availability

October 11, 2006

Case Studies

Case Studies

VM

VM

-

-

DATA NOVO

DATA NOVO

Novo offers comprehensive outsourced

Novo offers comprehensive outsourced

payroll services, designed to support

payroll services, designed to support

medium

medium

-

-

size and fast

size and fast

-

-

growth companies

growth companies

Issue:

Issue:

Novo had acquired 6 UNIX

Novo had acquired 6 UNIX

-

-

based servers

based servers

from three different vendors

from three different vendors

This combination of systems was inflexible to

This combination of systems was inflexible to

expand and costly to support

expand and costly to support

Action:

Action:

Consolidated multiple UNIX

Consolidated multiple UNIX

®

®

servers from

servers from

six separate physical systems to a single

six separate physical systems to a single

IBM pSeries Model 670 running IBM AIX 5.2

IBM pSeries Model 670 running IBM AIX 5.2

Virtualized the environment for optimal

Virtualized the environment for optimal

utilization

utilization

October 11, 2006

Case Studies

Case Studies

VM

VM

-

-

DATA NOVO (cont

DATA NOVO (cont

’

’

d)

d)

Customer quotes:

Customer quotes:

“Virtualization is the best possible result for Novo”.

“With the p670, we can calculate our business case much more

effectively and accurately, and match processor requirements to

the exact customer needs. Using logical partitions, we allocate

processing power to client applications, so customers receive the

service they want at the price they have agreed”.

“The p670 has reduced our maintenance costs and simplified our

systems management – it even occupies less space in the server

room.”

October 11, 2006

Case Studies

Case Studies

VM

VM

-

-

DATA NOVO (cont

DATA NOVO (cont

’

’

d)

d)

The results:

The results:

Simpler management and

Simpler management and

maintenance

maintenance

Improved reliability and

Improved reliability and

availability

availability

Lower database licensing costs

Lower database licensing costs

Greater business flexibility

Greater business flexibility

through variable computing

through variable computing

costs

costs

October 11, 2006

Provisioning

Provisioning

Provisioning

Provisioning

–

–

“

“

the automated

the automated

build

build

-

-

up/tear

up/tear

-

-

down

down

of systems and/or user

of systems and/or user

images to adapt to changing workload

images to adapt to changing workload

requirements

requirements

”

”

Provisioning improves availability and performance by

Provisioning improves availability and performance by

reducing the occurrence of human errors

reducing the occurrence of human errors

Tools, utilities, and programs allow for the automated

Tools, utilities, and programs allow for the automated

build

build

-

-

up/tear

up/tear

-

-

down systems images (Unix, Linux,

down systems images (Unix, Linux,

Windows), user profiles, application environments, etc.

Windows), user profiles, application environments, etc.

Primary benefit: reduce human

Primary benefit: reduce human

-

-

related, administrative

related, administrative

management costs

management costs

Note: Over the past several years systems and storage have

been “over-provisioned” (in other words: “not fully burdened”)

in order to leave room for applications to execute properly.

Workload balancing/provisioning will help IT more optimally

provision resources…

42

Provisioning

Provisioning

This is ultimately what you’re being asked to build…

Component Architecture

Web services applications/SOA

Management Environment

Business Process Mgmt

Application Management

Database Management

VIRTUALIZATION

Local Resource Management

(Dynamic Reconfiguration, micropartitioning, capacity upgrades,…)

Distributed Resource Management

(Find, pool, exploit distributed storage and systems)

Management

Console

Development

Tools

Workload

Management

Provisioning

Environment

Systems Management

Storage Management

Network Management

LAN

WAN

Grid

Business Process

Flows

Information Systems Environment

Process

Flows

October 11, 2006

Provisioning

Provisioning

Why provision?

Why provision?

Provisioning attacks human

Provisioning attacks human

-

-

related management costs

related management costs

Automates tasks

Automates tasks

Simplifies management of

Simplifies management of

resources

resources

Prepares the way for business

Prepares the way for business

process driven workflow

process driven workflow

control

control

October 11, 2006

Provisioning

Provisioning

Who is provisioning now?

Who is provisioning now?

Provisioning very active in blade

Provisioning very active in blade

environments

environments

IBM a leader in provisioning software

IBM a leader in provisioning software

Tivoli Provisioning Manager

Tivoli Provisioning Manager

Tivoli Intelligent Orchestrator

Tivoli Intelligent Orchestrator

Think about provisioning as you build

Think about provisioning as you build

your SCON/virtualization strategy

your SCON/virtualization strategy

October 11, 2006

The Competitive CVP Picture


All major vendors have consolidation

All major vendors have consolidation

programs

programs

All major vendors have manageability

All major vendors have manageability

software

software

Big differences, however in ease

Big differences, however in ease

-

-

of

of

-

-

use and

use and

granularity

granularity

All major vendors offer virtualization

All major vendors offer virtualization

Either directly or through third parties

Either directly or through third parties

The leading OEMs offer well integrated

The leading OEMs offer well integrated

provisioning software

provisioning software

IBM, HP, Sun

IBM, HP, Sun

Some ISVs offer decent provisioning,

Some ISVs offer decent provisioning,

others don

others don

’

’

t

t

EMC VMware vs. Microsoft

EMC VMware vs. Microsoft

…

…

October 11, 2006



Dozens upon dozens of vendors sell

Dozens upon dozens of vendors sell

virtualization solutions

virtualization solutions

Network (switch

Network (switch

-

-

based) virtualization

based) virtualization

Brocade, Cisco,

Brocade, Cisco,

McData

McData

,

,

…

…

Systems virtualization

Systems virtualization

Dell, EMC (VMware), HP, IBM, Microsoft,

Dell, EMC (VMware), HP, IBM, Microsoft,

Oracle, Sun,

Oracle, Sun,

…

…

Storage virtualization

Storage virtualization

EMC, IBM, HP, Hitachi, Sun, Veritas,

EMC, IBM, HP, Hitachi, Sun, Veritas,

…

…

But very few of these vendors can tie

But very few of these vendors can tie

it all together the way IBM can

it all together the way IBM can

…

…

October 11, 2006

•

•

Server

Server

-

-

Microsoft

Microsoft

-

-

Oracle

Oracle

-

-

EMC

EMC

(VMware)

(VMware)

-

-

IBM

IBM

(Virtualization

(Virtualization

Engine)

Engine)

-

-

Platform

Platform

Computing

Computing

-

-

United Devices

United Devices

-

-

Open Source

Open Source

(

(

Xen

Xen

)

)

-

-

Others

Others

…

…



•

•

Storage

Storage

-

-

Symantec

Symantec

(VERITAS)

(VERITAS)

-

-

IBM (SAN

IBM (SAN

Volume

Volume

Controller)

Controller)

-

-

EMC?

EMC?

•

•

Networks

Networks

-

-

Brocade

Brocade

-

-

F5

F5

Networks

Networks

-

-

Cisco

Cisco

-

-

AT&T

AT&T

-

-

Nortel

Nortel

And more

And more

…

…

•

•

Provisioning

Provisioning

-

-

IBM (Tivoli)

IBM (Tivoli)

-

-

HP (VSE)

HP (VSE)

-

-

Sun

Sun

-

-

EMC

EMC

(VMware)

(VMware)

-

-

OPSware

OPSware

October 11, 2006

TCO

TCO

Total Cost of Ownership


(TCO)

(TCO)

Consider:

Consider:

Physical plant

Physical plant

–

–

The floor space, electrical

The floor space, electrical

power, and networking costs related to

power, and networking costs related to

operating a distributed computing environment

operating a distributed computing environment

should be weighed against the cost to deploy a

should be weighed against the cost to deploy a

scaled

scaled

-

-

up environment

up environment

Workload Management

Workload Management

–

–

By pooling all

By pooling all

computing resources into a common server,

computing resources into a common server,

virtualization techniques make it possible to

virtualization techniques make it possible to

create an environment that can be adjusted to

create an environment that can be adjusted to

accommodate peaks and valleys in workload

accommodate peaks and valleys in workload

This means that enterprises do not have to buy as

This means that enterprises do not have to buy as

many computers in order to meet demand spikes

many computers in order to meet demand spikes

–

–

potentially reducing new equipment acquisition

potentially reducing new equipment acquisition

costs

costs

October 11, 2006

TCO

TCO



(cont

(cont

’

’

d))

d))

Consider:

Consider:

Operational/Management Costs

Operational/Management Costs

–

–

System

System

management costs include costs for people

management costs include costs for people

(managers, administrators), and operational

(managers, administrators), and operational

costs (such as costs related to the

costs (such as costs related to the

deployment of hardware/software upgrades,

deployment of hardware/software upgrades,

backup/restore, version control, and more).

backup/restore, version control, and more).

Consolidating to a single server environment

Consolidating to a single server environment

reduces the number of people needed to

reduces the number of people needed to

manage distributed servers

manage distributed servers

–

–

and it reduces

and it reduces

operational costs by the centralizing control

operational costs by the centralizing control

Scale-out usually means adding administrators –

scale-up often requires far fewer administrators…

October 11, 2006

How to Calculate ROI

How to Calculate ROI

These are the types of questions that

These are the types of questions that

should be asked:

should be asked:

How many servers will you consolidate in a

How many servers will you consolidate in a

project?

project?

What is the average number of processors per

What is the average number of processors per

server consolidated?

server consolidated?

What is the average

What is the average

Mhz

Mhz

per server processor?

per server processor?

What is the current average processor

What is the current average processor

utilization?

utilization?

How many users will be impacted?

How many users will be impacted?

How dependent are users on this server system?

How dependent are users on this server system?

What is your average annual server reliability?

What is your average annual server reliability?

All vendors have a more detailed ROI tool

All vendors have a more detailed ROI tool

available on a custom engagement basis

available on a custom engagement basis

October 11, 2006

ROI Considerations: Another View

ROI Considerations: Another View

Your Vendor

Your Vendor

’

’

s ROI Measurement

s ROI Measurement

Should Include:

Should Include:

Industry and business process specific benefit

Industry and business process specific benefit

modeling

modeling

Account for all costs related to the investment

Account for all costs related to the investment

Easy to understand and communicate

Easy to understand and communicate

Easy to change assumptions driving the model

Easy to change assumptions driving the model

Provide key project viability measures

Provide key project viability measures

Ability to model hard and soft benefits

Ability to model hard and soft benefits

Allow for Risk Adjustments and Uncertainty Modeling

Allow for Risk Adjustments and Uncertainty Modeling

Perform Sensitivity Analysis

Perform Sensitivity Analysis

Allow for customization of model by

Allow for customization of model by

modification/extension of base model

modification/extension of base model

Audit all model assumption and parameter changes

Audit all model assumption and parameter changes

Provide for Target versus Actual ROI comparison

Provide for Target versus Actual ROI comparison

Source:

Source:

http://us.fujitsu.com/img_asset/GND/GND_literature_Effective

http://us.fujitsu.com/img_asset/GND/GND_literature_Effective

-

-

ROI.pdf

ROI.pdf

October 11, 2006

Risks

Risks

Gartner

Gartner

–

–

35% fail due to poor planning

35% fail due to poor planning

Vendor partner should have strong planning emphasis

Vendor partner should have strong planning emphasis

This is not a

This is not a

“

“

swap

swap

-

-

out

out

”…

”…

Not meeting ROI expectations

Not meeting ROI expectations

Was workload assessed properly?

Was workload assessed properly?

Model, then verify, then deploy

Model, then verify, then deploy

Revisions/Versions

Revisions/Versions

–

–

and functionality

and functionality

Will all applications work if upgraded to single, common

Will all applications work if upgraded to single, common

operating environment?

operating environment?

Can databases be synchronized/combined?

Can databases be synchronized/combined?

External Factors

External Factors

Were network speed requirements evaluated? How about

Were network speed requirements evaluated? How about

security requirements? How about software upgrade

security requirements? How about software upgrade

costs/capacity licensing? How about migration costs?

costs/capacity licensing? How about migration costs?

Internal Factors

Internal Factors

Does the business unit agree?

Does the business unit agree?

Does senior management see the value and results?

Does senior management see the value and results?

October 11, 2006

Next Steps

Next Steps

Determine if server consolidation makes

Determine if server consolidation makes

sense in your environment

sense in your environment

Examine server/storage utilization,

Examine server/storage utilization,

management costs, and manageability

management costs, and manageability

benefits,

benefits,

…

…

If consolidation makes sense, analyze your

If consolidation makes sense, analyze your

enterprise

enterprise

’

’

s information infrastructure

s information infrastructure

Can applications be rebalanced to exploit a

Can applications be rebalanced to exploit a

consolidated server environment


Can data be restructured to exploit a

Can data be restructured to exploit a



Don

Don

’

’

t forget to consider business process

t forget to consider business process

flow

flow

…

…

October 11, 2006

Next Steps

Next Steps

Determine how the success of

Determine how the success of

this project will be measured

this project will be measured

TCO goals

TCO goals

ROI goals

ROI goals

Examine Risks

Examine Risks

Monitor risk areas and overcome

Monitor risk areas and overcome

obstacles

obstacles

October 11, 2006

Next Steps

Next Steps

Choosing a vendor

Choosing a vendor

Closely examine manageability

Closely examine manageability

Closely examine scalability

Closely examine scalability

characteristics

characteristics

Check out professional services

Check out professional services

offerings

offerings

Does your local sales/professional services

Does your local sales/professional services

team understand the relevance and

team understand the relevance and

importance of building information systems

importance of building information systems

that support efficient business process flow?

that support efficient business process flow?

Does your vendor focus on planning?

Does your vendor focus on planning?

October 11, 2006

Next Steps

Next Steps

After consolidation: virtualize systems/storage

After consolidation: virtualize systems/storage

For systems

For systems

Examine how to partition individual servers

Examine how to partition individual servers

Systems disk can be software partitioned to

Systems disk can be software partitioned to

provide dedicated space in which applications can

provide dedicated space in which applications can

execute

execute

Processors can be micro

Processors can be micro

-

-

partitioned

partitioned

Then introduce the concepts of distributed

Then introduce the concepts of distributed

resource pooling and distributed resource

resource pooling and distributed resource

management

management

Organize distributed resources into logical pools

Organize distributed resources into logical pools

Configurations can include LAN or WAN

Configurations can include LAN or WAN

environments comprised of discrete

environments comprised of discrete

systems/storage; self

systems/storage; self

-

-

contained blade or grid

contained blade or grid

-

-

in

in

-

-

a

a

-

-

box configurations, or distributed grids

box configurations, or distributed grids

October 11, 2006

Next Steps

Next Steps

Then provision

Then provision

…

…

Learn how to automatically provision their

Learn how to automatically provision their

systems environments using policies and

systems environments using policies and

service level agreements

service level agreements

Install a workload manager that isolates

Install a workload manager that isolates

workloads from one and other and allows

workloads from one and other and allows

systems and storage to

systems and storage to

“

“

flex

flex

”

”

(to be dynamically

(to be dynamically

provisioned across partitioned environments)

provisioned across partitioned environments)

according to the needs of the users/applications

according to the needs of the users/applications

Goals

Goals

Initial: script driven automated provisioning

Initial: script driven automated provisioning

Eventually: application/workload driven dynamic

Eventually: application/workload driven dynamic

provisioning

provisioning

October 11, 2006



Ask for help

Ask for help

Vendors have lots of experience

Vendors have lots of experience

in CVP

in CVP

Find the one that

Find the one that

’

’

s right for you

s right for you

IBM is a leader in CVP, in business transformation, in outsourced services,

and in IT management – and should be considered as a potential business

partner in any CVP planning/-implementation activity!

October 11, 2006



Q&A

Q&A

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