the business side of server virtualization

Create, Connect, Secure

September 2008 v1.0

The Pennsylvania Chamber of Business and Industry

IT Business Roundtable: Server Virtualization

September 19th, 2008Radisson Penn Harris, Camp HillGeorge Park Virtualization Consultant, VCP

Comm Solutions Company

http://www.commsolutions.com/index.htm


Today’s Goals

Mission Statement: Present a server virtualization overview for the assembled business-focused audience that illustrates the technology functionality, implementation process and business value.

PA Chamber Synopsis:

• What it is and how it works

• How does a company make a decision as to whether it will work for them

• Steps for implementation

• What value it adds to your business


Background

Hello my name is:

• Virtualization Practice Leader for Comm Solutions Company in Malvern, PA

• Primary focus is on host, data and storage virtualization technologies.

• Over the last 15 years I’m a former local and regional Telecom, Network, Security, Server and Helpdesk Manager; former Global Infrastructure/Operations Manager; Enterprise architect, hands on technical staff.

My role as a customer advocate, technology evangelist:• Support and deploy useful technology• Minimize ITs financial impact on businesses• Do not build IT for IT’s sake – what we do should have business value.• Use what is available if possible, recycle when reasonable• Tactical decisions have Strategic impact• Do not be a cheerleader for a particular product or vendor – use what works for the customer• Employ a flexible yet structured approach to IT


Virtualization:

What it is and how it works


What is “Virtualization” – nutshell

• Going back in time - to the late 60s

– Virtualization has a 40 year history (IBM) and is as old as I am (1967, in case you were wondering)

• Creating “Virtual Environments”

– Synthetic environments that abstract underlying physical elements of the IT infrastructure.

• We are discussing “Platform” – x86 Server Platform – Bare-Metal Virtualization today

– These are technologies using x86 Intel or AMD processors, VMWare

• Not just server virtualization (OS) but also (topics for another day)

– Desktop/client (OS or presentation)

– Application– Storage (Block or file-level)– Data

Images:VMWare


How does Virtualization work?

• A software application is loaded onto a commodity x86 server – the “Host” - to provide a foundation environment to support Virtualization typically called the “Hypervisor”.

• This environment allows, depending on the type, for an entire hardware-based server to be run in software. This software-based server is now called a “Virtual Machine” or VM.

• The environment enables many software-based VM to run on a single hardware server Host – isolated from the host and other VM.

• It allows, depending on the type, for the OS inside the VM to be run unmodified, abstracting the underlying hardware from the VM.

• VM – an OS encapsulated in a few files – become very portable and are able to be used in backup, recovery and availability operations.

• The VM files may be stored centrally on shared storage (typically a SAN) and accessed by many Hosts (one at a time).

• VM communicate with other VM and the customer environment via virtual networks

• Many Hosts may be combined into a “Cluster” to provide (at a minimum) recovery from a Host failure.

• Clusters, Hosts and VM may be centrally accessed and managed.


Where does it run?

• Full or OS Independent (Bare Metal) VirtualizationVMWare ESX, ESXi (Parallels Server in Beta)

– The VM is unaware that it is being Virtualized

• Paravirtualized , OS Dependent or Hardware Assisted Parallels Containers, Xen/Citrix, Hyper-V

– There is a dependency on an OS or Processor regardless of the presence of a Hypervisor or VMM.

– There is a difference between technologies - Microsoft Hyper V, Microsoft Virtual Server, VMWare Server and Parallels Containers

• HyperV is a Windows 2008 feature [Microsoft], paravirtualized and leveraging a required parent partition (Windows 2008), x64bit windows, IntelVT/AMD-V and Hardware DEP

• MS Virtual Server and VMWare Server run on top of a host OS

• Parallels Containers (Windows) rely on the underlying Windows OS

• Application-based or "Presentation” Citrix MetaFrame, Windows Terminal Services

– There is a dependency on the underlying presentation application to generate a virtualized environment for an end user.


Complete Virtualization Environment

Virtual Machines

Shared Storage

VM4 VM5 VM6

VM1 VM2 VM3

Networking

Central Management

Live / Cold VM Migration

Cluster

Host Host Host

vlan3

vlan2

vlan1

• Administration• Performance Management• Monitoring• Patching• Cluster Management• Resource Allocation• Migration• Provisioning

• Segmented Networking• Access policies• Performance stats

• Administration• Performance & Archive disk types• Snapshots• Replication

• Different OS (Win, Linux, etc)• Different Networks• Different resource allocations


What does Virtualization enable?

• Lower number of physical servers while increasing efficiency of use

• Create a smaller physical footprint - enable“Green IT”

• Ease Operational Management over the life of a server, service or application

• Lower operational costs

• Isolate Applications without increasing physical server sprawl

• Isolate servers from physical hardware to protect from host failures

• Implement flexible storage and networking topologies

• Deploy different server technologies on the same physical platform

• Migrate, in place, physical servers to virtual servers – P2V

• Identify resource ownership and monitor consumption

• Increase application and service availability, visibility

• Facilitate backup, disaster recovery and business continuity

• Changes in the marketplace due to market disruption

• Extension of investments in IT infrastructure

• Increase in business agility

• Leverage choice

CIO Mag, IT World, VMWare, Microsoft,


Who makes Server Virtualization?

• VMWare

• Microsoft

• Citrix/Xen

• Sun

• Virtual Iron

• Parallels

• Various Linux


Server Virtualization use & support

• Virtualization Market (IDC)

2005: 560 million2006: 998 million2007: 1.7 billion

• 100% of the Fortune 100

• 97% of the Fortune 500 (use VMWare)

• 95% of the Fortune Global 100 (use VMWare)

• Including:

– 30 of the top 30 US Commercial Banks, 25 of the top 25 Global Commercial & Savings Banks

– 15 of the top 15 US Pharmaceutical Companies12 of the 12 Global Pharmaceutical Companies

– 19 of the top 20 US Energy Companies4 of the top 5 Global Energy Companies

– 9 of the top 10 US Airlines7 of the top 7 Global Airlines

– 5 of the top 5 US Software Companies

• All major Systems Vendors directly support virtualization


Virtualization Risks

• Same as with Physical Servers

– Lack of security between VM, management and physical infrastructure

– Untested recovery operations

– Patching & other administration tasks overlooked

– Segregation of duties must be maintained, access restricted

• “Foundation Software” to maintain (patch, upgrade, monitor)

– The Virtualization layer must be maintained

– There are “single point” risks in patching and upgrades to mitigate

• Some systems cannot be virtualized

– Systems with especially high I/O and specialized hardware can generally not be virtualized.

• Unchecked Server Sprawl

– VMs are very easy to put up – provisioning in just a few minutes

• Lack of Application Support

– While this is decreasing some vendors require Hypervisor to be on HCL

• Not taking advantage of a “shared services” model

– Knowing who owners are allow for savings based on consumption, not just floor space.

• Changes in technology, competition & mergers

– While there are clear leaders partnerships can lead to new & divergent directions


Virtualization:

How does a Company decide it’s right for them


Can we virtualize?

• This is the number one question we are asked.

– Do you have a compelling reason to consider virtualization?– If so the answer is generally yes although there will certainly be exceptions.

• Educate you and your staff.

– Attend events like these, look on line, invite people in who are experienced in the field.

• Ask key questions:

– Do you need to lower IT costs?– If you have servers do you know what they do, why and for whom?– Are any of your servers running highly specialized applications, OS or hardware?– Do you perform testing and development work?– Are you considering any server replacement projects?– Do you have space, power, heat / cooling issues?– Are you considering relocation to a shared hosting facility?– Do you have shared storage? If not do you know why?– Do you have requirements for DR or BCP that are currently unanswered?– Do you already have some of the infrastructure in place?


Start the process

• Perform an analysis

– Systems– IT “Business”

• Develop a Vision, a Plan – the framework

• Determine the costs, benefits

• Make a decision

• Execute the Plan


Analyze system performance & efficiency

• Conduct a “Capacity Planning” Study

– Many authorised contractors can install software to analyze your running environment to gain a true picture of your virtualization possibilities via modeling – your “consolidation ratio”.

• Many Companies have existing metrics tools

– You may already have some of the information at your fingertips provided they gather the right information.

• Know how your servers are being used

– Industry standard is under 15% utilization of servers. – Most servers are used for a “single” application, prime candidates for virtualization

• Understand how is storage being used

– Can you benefit from consolidated storage?– How is your existing storage space being used?

• Review backup and recovery systems and processes

• Determine what cannot be virtualized

• Leverage the vendor to assist with the ground work – it is what they do.


Analyze your IT business

• Review IT Costs

– Acquisition– Operation– Maintenance

• Review your IT Strategic Plan & PMO

– Server Infrastructure– Storage Infrastructure– Network Infrastructure & Systems

Interconnectivity– Backup and Recovery infrastructure– DR & BCP plans and infrastructure– Management & Oversight

(Dashboard, Metrics, etc.)– Security– Projects– Compliance Landscape

• Review your Resources

– Locations, Personnel, Skills, Availability

• Review your Risks

– What are your most significant risks and tolerance levels?

– Risks have costs

• Determine an ROI

– Would it save you money if you:– Could run 40 servers on 1?– Could lower your HVAC and

Power Requirements– Could lower risk by increasing

availability and recoverability?


From Vision to Decision

• Develop a Vision & a Plan

– You must have a realistic expectation of your target environment– While a sound design and bill of materials is important having an eye on the

management, security, risk, administration, operation and support of your environment is key.

– Consider the future

• Make a decision & Execute

– Can we reach a realistic consolidation ratio– Can we lower costs, manage risks and expectations– Can we streamline processes – Can we leverage existing/pending projects – consolidate where possible– Can we increase efficiencies – virtualization can pool computing resources, take

the opportunity to train your staff and manage their expectations.

The technology is widely used, there are many reference customers and successful deployments – each business is unique, make the decision that is right for yours.


Virtualization:

Implementation Steps


Standard Methodology

• We use a standard methodology, most companies will:

– Consultation: We discuss with and educate the customer.

– Analysis :We review your environment – business and technical.

– Design:We design a “build to order” environment for the customer.

– Plan:We integrate project management at all phases to facilitate the build process.

– Build:Leveraging the customer relationship, analysis and design we execute the plan.

– Maintain:We transition to production and assist the customer as needed.

• If the vendor has performed implementation should be a smooth process

• A completed implementation of the Virtual Infrastructure is the first step to a full migration


Virtual Infrastructure Implementation

• It is important to have a team approach, a “Center of Excellence” around any Virtualization initiative. It’s a “Virtual Datacenter” and crosses many internal domains

• Server virtualization implementations generally involve the following infrastructure areas:

– Linux & Windows server infrastructure: Day to day admin of hosts and VMs– IP Networking: Mainly switching and routing but also firewalls and remote access– Storage & Storage Networking: Shared storage for VMs and Host connectivity– Physical Infrastructure: Rack space, power, cabling, cooling, system removal– Operations: Monitoring and backing up hosts and VMs– Helpdesk: Addressing user issues resulting from server migrations to VMs– Security: Review of technical architecture to ensure adherence to internal policy– Validation: Ensure systems as built meet validation criteria– Compliance: Ensure technical architectures and as built systems meet requirements

• Failure to involve personnel from the conception of a virtualization project can lead to lengthy delays and internal conflicts.


Migration Scenarios

• It will take some time from decision to a completed implementation. Resist the urge to test the system in production.

• Customers migrate from a physical to virtual environment at their pace based on resources, risk and other internal factors

• The environments are highly configurable. Provide ample time to customize to meet your requirements.

• While migrating there will be outages, these must be planned for.

• Common migration scenarios are:

– Mass migration: • In this scenario all VM planned to be migrated are quickly moved from Physical to Virtual.

• We have migrated scores of machines in this manner, addressing issues along the way.

– Phased migration:• In this scenario all VM planned to be migrated are done so based on a pre-established time schedule.

• This is the most common method of

– Stilted migration:• While Virtual Infrastructure migrations are rarely relegated to “shelfware” some migrations may pause.


What changes after we virtualize?

• Server Access, Administration:

– KVMs can be discarded, ILO/DRAC cards can be used for console access to VI Hosts– VMs are accessed through a web or other client connection, RDP or VNC

• Start up and shut down times, VM:

– VMs start up and reboot much more quickly than physical servers

• Adding memory, disks, etc, VM:

– Some resources can be added on the fly, others require the VM to be shut down but all resources are configured virtually via check box, slider or other mouse-driven action

• Network Configuration, VM:

– Network cards are virtual, can be configured to attach to different networks which abstract the underlying network configuration – vlans, etc.

• “Where is the server” – physically:

– Virtual systems can relocate machines dynamically moving from one “compute” or storage host to another.

• Existing 3rd party drivers and software:

– 3rd party drivers are no longer required as a few drivers are used for video, networking and storage

• Resource allocations and priorities:

– Resources can be allocated (or removed) from systems dynamically, this can lead to unintended performance issues

• Management dashboard:

– All cluster, host and VM resource utilization (for major resources) will be maintained and can be reported on at a cluster or host level

• Existing IP-based monitoring tools, DNS, AD, etc:

– As a VM’s IP does not have to change existing DNS and AD entries may remain the same, IP system tools do not have to change

• Backup & Recovery:

– Systems can be backed up at an “image” (VM-level) or from within the VM at a “file” level – backup agents may not have to change


Virtualization:

Value added to business


Virtualization – Immediate Value

• “Moving to a Virtual Infrastructure (VI) can lead to significant savings” IDC

– Implementing “Simple” VI can lead to a reduction of up to 35% of annual server costs– With consolidation rates of 10:1, 40:1 or greater hardware costs will decrease as reductions in server,

storage and networking are realized.– With less hardware on the floor space, power and cooling costs will decrease as well.

• Increase efficiencies – more fully utilize what you have

– “Merely moving from unvirtualized…to virtualized…boosts [utilization]” (IDC)

– VI leads to a greater utilization – up to 3 times the number of users per server (IDC)

• Reduction in business risk

– Decreasing downtime and increasing availability mitigates risk.

• Increase standardization of server platforms

– Lowers costs associated with deployment and system management– Rapid “cloning” and templates allow for fast deployment– Removal of unique drivers assists administration – and application deployment

• Ability to migrate workloads allows for a more agile business

• Ability to copy, “snapshot” and replicate systems provides immediate functionality

• IT Productivity improves, staffing costs lower

– Standardization, manageability all lead to increased productivity – centralization to lower costs


IDC Reports

“Companies that have deployed basic virtualization are reducing their IT costs by $145 per user over three years with a total investment of $24 per user.

Using IDC’s standard discount rate of 12%, the average company deploying basic virtualization could see an ROI of 472% and payback in less than a year, including deployment time. This is a very significant ROI for a relatively low-cost, low-risk initiative.

In the advanced virtualization scenario, average benefits are increased by 49% (primarily through enhanced IT operations and user productivity cost reductions), while costs per user decline by 3% due to lower hardware costs. “

Business Value of Virtualization, IDC, July 2008


The business case for Virtualization

• A typical 2 CPU server averages 9K per year in direct ownership costs

– 4K per year in 3 year amortized purchase, support and maintenance

– 1.1K per year for storage and networking costs

– .3K per year for lifecycle maintenance

– 2.7K per year for administration

– .9K for power, cooling and space

• Consolidating 100 of these servers may deliver:

– 575K per year average net TCO

– 1.38M NPV over 3 years (10% discount)

– Payback in 5 months

– ROI of 670%

• Using the VMWare TCO calculator (includes all costs):

– 1.8M NPV

– Payback in 4 months

– ROI of 915% (9.5% discount)

• Using the Logicalis “US IT Carbon Footprint CalcuatorMigrating 100 servers to VM on 10 Hosts and 1 Mid-Range storage array:

– Yields an 82% energy savings; 350kWh and 482K less carbon per year, saving 880 barrels of oil


Closing

• Server Virtualization creates “software” computers running on physical hardware.

• Virtualization is a widely used and proven technology, decisions to deploy are based on objective analysis and experience.

• Virtualization deployments are mature, process-driven endeavors tailored to the customer’s business and IT needs.

• Virtualization has a clear business value for Companies of nearly all sizes.


Thank you for your [email protected]

the business side of server virtualization

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