virtualization assessment example

A c c e l e r a t i n g Y o u r S u c c e s s ™

November 14, 2008

David Koester Account MangerJim Wallburg Project ManagerTom Lorenz Technology ArchitectMike Fee IT Financial Consultant

Customer in Cincinnati, OHWindows® Server Consolidation ProjectInitial Presentation

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Agenda

• Introductions

• Overview of Project

• Review and discuss captured performance metrics

• Review initial analysis and confirm architecture assumptions

• Review initial analysis and confirm financial assumptions

• Solicit changes to prepare for the final presentation and report

• Next Steps

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Business Goals of Consolidation•Server hardware approaching end of life

•Control data center footprint

•Reduce electricity and cooling expense

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Consolidation Impact Assessment• Considers both the Technical and Financial Impact of Server and

Storage Consolidation• Uses the VMware Capacity Planner tool

– Non-disruptively captures hardware and software inventory from current environment

– Measures actual utilization of servers and records the peak workloads– Uses peak workloads to create consolidation scenario(s)– Used data collected by VMware from July 19 to September 5, 2008

• Model Financial Impact using Brigham-Gapenski Methodology– Based on Intermediate Financial Management, 5th Edition (1996)– Follows the model for evaluating asset replacement “Investment Decisions”– Provides a familiar analysis for those in finance who support IT– Develops a Total Cost of Ownership (TCO) baseline of current environment– Compares the baseline to the TCO of the recommended environment(s)– Provides a detailed Return On Investment analysis

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High Level View – A Dashboard

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Inventory Details - Chassis

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Inventory Details – CPU

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Inventory Details – NIC’s

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Weekly Loads – Business Hours

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Weekly Loads – Peak Hours

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Processor Peak Load & Peak Hour

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Vintage System

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Created Scenarios

NameServers

In ConsolidatedNot

ConsolidatedNew

Servers

Consolidation

Ratios x:1

All servers to BL460c 3.0Ghz (2-QC) 32GB 33 33 0 3 (*) 10

All servers to DL380 G5 3.0Ghz (2-QC) 32GB 33 33 0 3 (*) 10

All servers to BL460c 3.0Ghz (2-QC) 16GB 33 32 1 5 >6

All servers to DL380 G5 3.0Ghz (2-QC) 16GB 33 32 1 5 >6

* NOTE: Add (N+1) BL460c Server for redundancy

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Defining Target Server and Thresholds BL460c 2QC 32GB Servers

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Consolidation Recommendations Server Assignments

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Server Disk Inventory

Path Type Total Size (MB) Total Free (MB) Count

C: NTFS 1,557,806 1,090,814 33

D: FAT32 13,134 9,964 1

D: NTFS 503,876 395,683 9

D: UDF 445 0 1

Totals 2,075,261 1,496,461

Total Used Space 578,800

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All Local and Local Attached Storage = 3TB

Current External Storage CapacityPath Type Total Size (MB) Total Free (MB) Count

E: NTFS 4,990,394 2,830,960 18

F: NTFS 1,647,389 508,033 6

G: NTFS 2,024,914 835,385 8

H: NTFS 2,485,956 150,833 5

I: NTFS 2,919,520 973,370 5

J: NTFS 669,984 254,506 4

K: NTFS 389,984 146,663 4

L: NTFS 558,357 261,729 4

M: NTFS 629,978 378,900 3

N: NTFS 629,978 356,598 3

O: NTFS 757,674 156,897 4

P: NTFS 374,416 321,211 3

Q: NTFS 147,352 128,076 3

R: NTFS 139,424 137,218 2

T: NTFS 230,227 22,027 3

U: NTFS 416,561 255,711 2

V: NTFS 842,232 328,476 3

W: NTFS 139,973 104,840 1

Z: NTFS 476,938 140,368 1

External Storage 20,471,251 8,291,801

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Example C3000, C7000, EVA4400 Rack Placement

C7000 Chassis C3000 ChassisEVA4400

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End of Technical Portion

Questions?

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Financial AssumptionsWindows Server Budget (built from following)

1. System Administration

2. Growth

3. Lifecycle Management / Replacement

4. Maintenance

5. Power and Cooling

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Financial Assumptions (continued)

System Administration Windows Server Budget1. Three (3) Full Time Equivalent (FTE) for Core Windows System

Management (50 servers)

2. 100% utilized for actual server management

3. $75,000 assumed average annual fully burdened cost per FTE

4. Prorated to the actual number of servers modeled for each consolidation scenario

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Financial Assumptions (continued)

Growth and Replacement Budget1. 8% net new physical server annual growth rate

2. 6.3% Lifecycle Management rate (16 years)

a) Average four year expected useful life

b) Using one fourth of servers as candidates for replacements

c) IT actually replaces 25% of the replacement candidates

3. $5,500 average current server cost

a) Hardware only

b) Includes any warranty uplift

c) No OS, middleware, application, etc.

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Financial Assumptions (continued)

Maintenance Budget 1. 24 months average server age calculated from Average

Server CPU MHz (2647)

2. Servers greater than 36 months in age

a. On average calculated to be 24.8% of total

b. Using $0 per server per year

3. Servers less than or equal to 36 months in age

a. On average calculated to be 75.2% of total

b. Using $0 per server per year

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Financial Assumptions (continued)

Power and Cooling Budget Not Assessed to IT Budget – Included in Analysis

1. $0.09 per KWH

2. Use server plate input wattage

$684.11 average per existing server per year (33)

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Financial Assumptions (continued)

Financial Metrics1. Model of Future Servers

a. All growth servers are implemented via virtualization

b. Model accounts for additional VI3 Host Servers for years two and three

2. Recommended environment gear is purchased up front i.e. implementation is completed over the course of first year

3. IT budget assessed using five year straight line method

4. Tax rate 25% and 12% Hurdle Rate

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Breakdown:

Sys Admin Costs: $481,140 (~17 servers : 1 FTE ratio)

Break/Fix Maintenance: $0

IT Assessed Charge: $31,037

Power / Cooling: $73,145

Growth (Capital): $43,560 (~3 servers / year)

Refresh/Replace (Capital): $34,031 (~2 servers / year)

Financial FindingsThree Year TCO Baseline Summary – 33 Servers

Current TCO = $585,322

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Financial Findings (continued)

Three Year Payback Summary – 33 Servers

ScenarioHW/SW Cost1

3 Year TCO2

IT Budget Reduction

Payback (months)

ROI (IRR%)

BL460c 2-QC 32GB4 New ESX Hosts3000 ChassisEVA4400 22TB Storage

$222,327 $527,291 $58,031 31.2 8.3

BL460c 2-QC 32GB4 New ESX Hosts7000 ChassisEVA4400 22TB Storage

$225,559 $529,230 $56,092 31.5 7.7

DL380G5 2-QC 32GB4 New ESX HostsEVA4400 22TB Storage

$204,955 $525,733 $59,589 30.3 10.2

2Includes estimated implementation budget, $33,000

1Includes budgetary pricing for server, software, support and storage capacity ($130,636),

Current TCO = $585,322

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Breakdown:

Sys Admin Costs: $379,421

Break/Fix Maintenance: $0

IT Assessed Charge: $133,396

Power / Cooling: $14,474

Growth (Capital): $0 (0 Yr 2; 0 Yr 3)

Refresh/Replace (Capital): $0

Financial Findings (continued)

Three Year TCO Proposed Summary – BL460 2-QC 32GB

Proposed TCO = $527,291

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Breakdown:

Today:

33 Existing Servers: $73,145

Proposed:

4 BL460 32GB $14,474

Financial Findings (continued)

Three Year Power and Cooling Summary

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Breakdown:

Sys Admin Costs: $379,421

Break/Fix Maintenance: $0

Power / Cooling: $0

IT Assessed Charge: $133,396

Growth (Capital): $0 (0 Yr. 2: 0 Yr. 3)

Refresh/Replace (Capital): $0

Financial Findings (continued)

Three Year TCO Proposed Summary – BL460 2-QC 32GB

Current TCO = $512,817

Payback increases from 31.2 monthsto 38.6 months

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Thank you for your time!

Questions?

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Server Administration Tasks (for reference only)

1. Deploying servers, 2. Software installation and configuration, 3. Physical installation (conventional server), 4. Proactive upgrading servers (patches/service packs/applications), 5. Monitoring, 6. Backup/Recovery, 7. Labor hours for unplanned downtime, 8. Problem resolution, 9. User Support, 10.Training, Security, 11.HW Procurement/Inventory, and 12.Miscellaneous (e-mail, staff meetings/reporting, etc.)