How Customers Are Cutting Costs & Building Value with Microsoft's Virtualization Platform

Spotlight on Cost

Three Ways Customers Are Cutting Costs With

Microsoft VirtualizationVirtualization Solutions

Savings

Server ConsolidationEnergy & space reductionAccelerated application &

desktop deployment

Microsoft Platform Savings

Platform-based hypervisorEnd-to-end management

Training & Support

Lowest Cost of

Acquisition & Ownership

1/3 Cost of VMwareLicensing for Virtualization

Microsoft Desktop Optimization Pack

PresentationVirtualization

User StateVirtualization

ApplicationVirtualization

DesktopVirtualization

Microsoft Virtualization Products From the Datacenter to the Desktop

ServerVirtualization

Document redirectionOffline files

Server Consolidation Savings

Hardware ConsolidationDartmouth-Hitchcock Medical Center reduced 400 servers to

100 servers, leading to cost savings of more than US $325K

annually

Power ReductionWith Hyper-V, HotSchedules

reduced its power costs from US $11K to $2.5K per month

Space ReductionIndiana University Auxiliary IT Department cut its rack count down to two, saving $10,500

annually on datacenter rack fees.

Rapid Provisioning Savings: Accelerating Time to Production

“Building a physical server took almost four hours before virtualization.

Hyper-V has helped decrease this time to 20 minutes.

The simplified management console in System Center Virtual Machine Manager reduces this time even more, so

build time is down to 10 minutes.

The value of the time savings associated with the server management improvements is estimated to be

AU$1,055,000 (U.S.$999,985) per year.”

Vito Forte, Chief Information Officer, WorleyParsons

Discover Candidates for Consolidation: Microsoft Virtualization Solution Accelerator

Microsoft.com/MAP

Report GenerationFor Different Migration

Scenarios

MAP Customer Network

Assess customer’s environment andrecommend the right technologies

MAP Tool User(IT Pro/Partner)

Server Consolidation?Application

Virtualization?Windows migration?

“Before physical-to-virtual (P2V) conversions began, Costco IT staff used the Microsoft

Assessment and Planning (MAP) Toolkit to evaluate server loads. Using the toolkit, staff

members discovered that, in many cases, servers were running at only 5 percent

utilization, making them good candidates for consolidation.”

Costco Wholesale Corp Case Study

Green IT Savings

Server setup Average Watts kWh/year Cost KG of

CO2

Standalone IIS x10 5,001 43,839 $4,007 34,084

One Hyper-V server with 10 IIS7 virtual machines

512 4,490 $410 3,491

Savings 4,489 39,349 $3,597 30,593

Projected SavingsNumber of Servers Rack

Space Power

Physical 477 systems ~$5k each 30 racks 525 amps

Virtual 20 systems ~$20k each 2 racks 8 amps

Savings ~ $2,000,000 28 racks 517 amps

MS Actual Dev/Test Savings

Hyper-Green Tool

Desktop Virtualization Savings

Reduced Compatibility Testing

Heidelberg estimates that it saves approximately 50,000 Euros

annually in packaging costs using Application Virtualization. “It paid for itself in just six months.”

Accelerated Desktop Deployment

California State University now requires just 10 hours instead

of 700 hours to package and deliver apps

AspenTech cut its application delivery time by 50 %

Cost-effective Anywhere Access

“Our people are also finding it easier to work wherever they are—whether they

are at a customer site, roaming between sites, or on the road… When our

employees are more productive, we decrease our costs.”

- Ahmed Atef, Mantrac, about Terminal Services

Microsoft Platform Savings

Platform-based hypervisorEnd-to-end management

Training & Support

“Having one vendor for the hypervisor, operating system, and much of our application software was very appealing to us from a support and cost perspective.”

Bert Van Pottelberghe, Sales Director, Hostbasket

Hypervisor Feature of OS

“We liked the fact that Hyper-V was built into Windows Server

2008…With Hyper-V, we don’t need separate drivers for the hypervisor,

and we don’t pay additional licensing fees.”

Bart Roels, Operations Manager, Hostbasket

High Availability with Clustering Feature of OS

Hyper-V leverages Windows Server 2008 clustering to provide

migration, which enable virtual machine guests to migrate from

one cluster node to another.

Power Management Feature of OS

Windows Server 2008 out of the box uses approximately 10 percent less energy than Windows Server

2003 because of Advanced Configuration and Power Interface

processor power management

Platform-Based Virtualization Features

Virtual, Physical & Cross-Hypervisor Management

“…if my central console can manage both my Microsoft virtual machines and my VMware virtual machines

with an interface that is familiar and easy for my Microsoft certified staff,

that's a big plus.”Brent Register, The Atlanta Journal-

Constitution

Disaster Recovery part of System Center

“Doing this on physical hardware takes a couple of hours; with virtual

machines, it takes minutes,”Robert McShinsky Senior Systems

Administrator, Dartmouth-Hitchcock Medical Center.

App Virtualization deployment part of System Center

“Now we can deploy both virtualized and installed applications using the

same procedure,” Arne Bertgen, IT administrator for

Tuv Nord.

Virtualization Built Into Management Platform

Training & Support:Virtualization is a Skill, Not a Specialty

“We will be able to support our entire virtual landscape through Microsoft, which already

supports the rest of our datacenter, and have solid, seamless coverage under our Microsoft

Premier Support Agreement.

Hyper-V fits better into our Microsoft infrastructure and simplifies our IT strategy by

enabling us to work with as few vendors as possible.”

Erich Nøkling, Business Development Manager, Mamut

Windows Server 2008 Licensing: Datacenter Edition

License Windows by the processors on the physical server and get unlimited product use rights for the virtual guests. There’s no need to count, track, or license the virtual

machines.

System Center Licensing: System Management Suite Enterprise

Manage an unlimited number of virtual operating systems on a physical host server

Microsoft Desktop Optimization Pack (MDOP)

In addition to Microsoft Application Virtualization, MDOP provides desktop

inventory assessment, group policy management, Virtual PC management and desktop error monitoring and repair tools.

Low Cost of Acquisition & Ownership

“By deploying Windows Server 2008 Datacenter, with its liberal virtual-machine licensing options, MLS PIN achieved savings of $200,000 over other editions of the operating

system.”Matt Lavalee, Director of Technology, MLS Property Information Network

Side-By-Side Feature & Cost Comparison Of Virtualizing 5 Hosts

x

x

x

$61.4K

Multi-Hypervisor

Management

App Management

Physical Manageme

nt

Virtual Managemen

t

HypervisorWindows Server 2008

$12KWindows Server 2008

$12KWindows Server 2008

Hyper-V

$12K

Virtual Infrastructure Enterprise$42.1K

Virtual Center$7.3K

System Center$9.4K

$21.4KIncluded

“We saw that Hyper-V did everything we needed and was far more cost-effective than VMware, which costs about $6,300 per server more than Hyper-V.”

Nicholas Merton, IT Support, Maxol

Basic Standardized

Rationalized

Cost Savings Through Adoption of Best Pratices, including Virtualization

IT Labor Cost Per User Per Year $ 89.68 $ 67.3 $ 1.24

IT Running Costs Per Server $ 10,950$ 15,045 $ 6,285

Servers / IT FTE 46.3 Servers

35.6Servers

96.5 Servers

Collaboration

Email

Data Management

Source: 2008 Microsoft research project analyzing adoption and use of best practices for server management

Virtualization

Calculate Your Savings: Microsoft Virtualization ROI Tool

Next Steps to Cutting Costs with Microsoft Virtualization

Resources & Assessmentwww.microsoft.com/

virtualization Solution Accelerators

Proof of Concept

Windows Server 2008 with Hyper-V &

TS System Center

Microsoft Application

Virtualization

Evaluate Savings ROI Calculator Hyper-Green

Calculator