dc30 muminov tm__tco-eng

Cisco Public 1 © 2011 Cisco Systems, Inc. All rights reserved. MTM_DC-TCO

Conducting a Successful Data Center TCO Analysis:

Keys to a Successful Data Center TCO Analysis

Timur Muminov ([email protected])

Systems Engineer

Sales / Channels VTSP, VCP, DCUCD, MCSE, MCT, MCDBA

OCP, HPStar, A+, PMP-CAPM, JNCP

mailto:[email protected]

© 2011 Cisco Systems, Inc. All rights reserved. Cisco Public MTM_DC-TCO 2

Is the timing right?

• ROI/TCO analysis help you quantify the monetary/business value of architectural advantages, not identify them.

• Can you articulate how this solution addresses a business need, strategic objective or solves a problem?

• Have you identified the correct audience for a financial selling message?

• Is the account willing to invest some time in a ‘deeper dive’ analysis?

• Is the analysis needed to move to next phase of sales process?

Qualification


Two TCO Tools: DC 3.0 & UCS

1. Data Center 3.0 TCO Advisor

Strategic tool – End to End DC3 Architecture

Current State vs. Proposed Solution

Choose from 5 Solutions – How Cisco solves customer pain

Server Virtualization

Storage Consolidation & Virtualization

Unified Fabric

Branch IT Consolidation

Application Optimization

2. UCS TCO Advisor

Competitive Comparison

UCS Only

3. Rich set of defaults based on industry benchmarks

4. Tools Merged in Next Release

Engagement


Scope of Analysis Determined by Customer Need / Cisco Solution

Escalating Demand but Must Hold Costs Constant

Where Can I Achieve Cost Savings?

How Much will Virtualization Help?

Need to Improve Application Performance

Diverse DC Technologies and Locations – Evaluating Consolidation

What are the Energy Implications?

Cisco Solutions Customer Need / Pain

Engagement


Engaging the Customer

Objective of TCO Analysis: Generate interest and create opportunity. Align TCO to Solution Benefits

Target: Executive sponsor – who can / will act on the results of the analysis

Approach:

• “Based on what we know about you today, we believe Cisco can save $$” (show highlights from first pass at analysis)

• “If you find this to be interesting and credible, we’re looking for opportunity to have a deeper dialogue…”

• “In order to complete the analysis, we’ll need:

• Some more detailed information about your current architecture and costs

• A point person to work with to create the analysis

Engagement


Traditional

vCenter

Nexus 1000V VSM End of Row

1GbE Switch

Cisco Nexus 5000

Top of Rack

10GbE Switch

Virtualized

servers Physical

servers

Virtualized

servers Physical

servers

vSphere

Cisco

Nexus

1000V

VEM

VM VM VM VM VM VM VM VM

vSphere

Cisco

Nexus

1000V

VEM

VM VM VM VM VM VM VM VM

10GbE

1GbE

vSphere

VM VM VM VM

Traditional

Virtual

Switch

Cisco Data Center – Server Virtualization

• Reduced Server Opex and Capex Costs

• Reduced Network, I/O and Cabling Costs

• Reduced Virtualization Operations Costs

Increased Server

Virtualization

Penetration

More Virtual

Machines Per

Server

Reduced Network, I/O,

Cabling Infrastructure

TCO Analysis Aligns with Solution Benefits Server Virtualization Analysis


Creating Credible TCO in 3 Steps Server Virtualization Example

Small Number of Key Inputs:

# of X86 Servers

% Annual Increase in X86 Servers

Average # LAN Connections

Additional LAN Connections for NAS Connectivity

Average Server Lifecycle

# of X86 Servers per Admin

1

Analysis

Credible

Defensible

Level of Accuracy & Customer Specificity



1 2 Profile Cisco Solution

Future OS Image Virtualization %

Increase in Average # of Virtual Machines

per Server

Copper (CX1) or Fiber (OM3)

Analysis

Credible

Defensible





# of X86 Servers






1 Collaborate to refine model

Identify actual costs Refine architectural assumptions

Drive customer ‘buy in’ to model findings

2 3

Analysis

Credible

Defensible



End of Row

1GbE Switch Cisco Nexus 5000

Top of Row

10GbE

Virtualized

servers

Physical

servers

Access LAN

Networks

VM VM VM VM

Fibre Channel

Switch

Edge SAN

Networks

Unified Fabric

Aggregation

LAN

Networks Core LAN

Networks

Core SAN

Networks

Virtualized

servers

Physical

servers

VM VM VM VM

Core SAN

Networks

Core/Aggregation

LAN

Cisco Nexus 7000

High Density

10GbE

Cisco MDS

Fibre Channel

Switch

1GbE Fibre Channel 10GbE / FCoE

Traditional

Cisco Data Center – Unified Fabric

• Reduced LAN Access Switching Costs

Reduce Server I/O and Cabling Costs

• Eliminate SAN Capex and Opex Costs

• Reduced LAN Core / Aggregation Network Costs

Reduced Network, I/O,

Cabling Infrastructure Eliminated SAN Access,

Switching, I/O,

Cabling Infrastructure

Consolidated

Networks

Unified Fabric

TCO Analysis Aligns with Solution Benefits


Creating Credible TCO in 3 Steps Unified Fabric Example


# of X86 Servers


Servers Connected to Network Storage

Servers Connected to Network Storage – SAN Connected


SAN Connections per SAN Connected Server

1

Analysis

Credible

Defensible




1 2

Profile Cisco Solution

Migrate existing servers to Unified I/O?

Include LAN Core and Aggregation Layers?

Net New Servers Deployed w/ Unified I/O Year 1

# of CNAs per Server

Copper (CX1) or Fiber (OM3)

Analysis

Credible

Defensible





# of X86 Servers









2 3

Analysis

Credible

Defensible



Creating Credible TCO in 3 Steps UCS TCO Comparison Tool Example


# of Servers or Blades

FTE Costs (Provisioning, etc.)

Consolidation Ratio (vs. competition)




2 3 Profile Cisco & Competing System

# of Blades per chassis

EOR/TOR Connectivity

SAN attachments

H/W & S/W Maintenance

Analysis

Credible

Defensible

Level of Accuracy

& Customer Specificity


Deliverables

Microsoft Word Business Case

Executive Summary

Technology Drivers

Business Challenges

Key Benefits

Financial Results

Microsoft Excel Financial Model

Results

Cost Structures

Infrastructure

Fully customizable inputs

Analysis


Engagement Methodology

Depending on customer situation and scope of analysis, end to end process should take 5-10 hours of your time over 1 to 2 weeks

Calendar Time:

Create First

Pass of

Financial

Model, based

on Key Inputs

Approach

Customer with

Analysis – Gain

Sponsorship for

Deeper Analysis

Discovery – Collect

More Detailed

Information from

Customer

Complete TCO

Financial

Model &

Business Case

Present

Results to

Sponsor &

Others

1 hour

Per Solution

Clock Time:

Day 3 Day 6 Day 10

.5 hour 1 hour per Solution

or per Customer

Stakeholder

1 – 2 hours 1 hour

Engagement

Day 0


Who Do I Speak With?

Solution Compute Storage Network Applications Facilities Other

Server Virtualization X X

Application Optimization X X X

Unified Fabric X X X

Storage Consolidation &

Virtualization X X X

Branch IT Consolidation X X X X X Branch

SMEs

Unified Computing System X X X

• Information Gathering should take between 30-60 minutes per technology domain in scope.

• Customer SME should have understanding of current state architecture, cost structures and

certain administrative activities

• All solutions will ideally uncover basic Power information (Average cost of power per kWh,

Power Usage Effectiveness Factor) and Facilities (Average cost per square foot)

Engagement


What’s New in DC 3.0 TCO Advisor?

Priority Inputs Highlighted

Replicate Function

Live / Test

Template Capability

New Results Screen


Complete Information at DC Business Value Portal

http://wwwin-dev.cisco.com/marketing/datacenter/programs/business_value.shtml






Next Steps

View DC TCO Advisor tools training URL

Prioritize customer opportunities – Use Predictor tool

Identify executive sponsor for priority opportunities

Conduct initial information gathering for First Pass TCO Analysis

Engage with PSS for Second Pass / Deeper data collection for TCO Analysis

For additional support and feedback: [email protected]

mailto:[email protected]


Questions?

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