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An Analyst’s View on
Server Consolidation
and Virtualization
An Analyst
An Analyst
’
’
s View on
s View on
Server Consolidation
Server Consolidation
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
Page 2 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
Page 3 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
Page 4 October 11, 2006
Agenda
Agenda
What other analysts are saying
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
Summary Observations
Page 5 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
What other analysts are saying
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
Page 6 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
What other analysts are saying
What other analysts are saying
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
Page 7 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
What other analysts are saying
What other analysts are saying
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
Page 8 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
What other analysts are saying
What other analysts are saying
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
Page 9 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
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
…
…
Page 10 October 11, 2006
What Other Analysts Are Saying
What Other Analysts Are Saying
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
Page 11 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
Page 12 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
Page 13 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
Page 14 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.)
Page 15 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
Page 16 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
Page 17 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); …
Page 18 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
Page 19 October 11, 2006
Case Studies
Case Studies
Sodexho Asia Pacific
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.
Page 20 October 11, 2006
Case Studies
Case Studies
Sodexho Asia Pacific
Sodexho Asia Pacific
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
Page 21 October 11, 2006
Case Studies
Case Studies
Sodexho Asia Pacific
Sodexho Asia Pacific
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
Page 22 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
”
”
Page 23 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
Page 24 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
Page 25 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
Page 26 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
…
…
Page 27 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
Page 28 October 11, 2006
Virtualization
Virtualization
What is
What is
“
“
virtualization
virtualization
”
”
?
?
Several different types of
Several different types of
virtualization
virtualization
Systems/storage/network
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?
Page 29 October 11, 2006
Virtualization
Virtualization
Systems/storage/network
Systems/storage/network
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
Page 30 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
-
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
Page 32 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
Page 33 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
Page 34 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
Page 35 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
Page 36 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
Page 37 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
Page 38 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
Page 39 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.”
Page 40 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
Page 41 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
Page 43 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
Page 44 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
Page 45 October 11, 2006
The Competitive CVP Picture
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
…
…
Page 46 October 11, 2006
The Competitive CVP Picture
The Competitive CVP Picture
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
…
…
Page 47 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
…
…
The Competitive CVP Picture
The Competitive CVP Picture
•
•
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
Page 48 October 11, 2006
TCO
TCO
Total Cost of Ownership
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
Page 49 October 11, 2006
TCO
TCO
Total Cost of Ownership
Total Cost of Ownership
(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…
Page 50 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
Page 51 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
Page 52 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?
Page 53 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
consolidated server environment
Can data be restructured to exploit a
Can data be restructured to exploit a
consolidated server environment
consolidated server environment
Don
Don
’
’
t forget to consider business process
t forget to consider business process
flow
flow
…
…
Page 54 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
Page 55 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?
Page 56 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
Page 57 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
Page 58 October 11, 2006
Summary Observations
Summary Observations
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!