LHC2386BU True Costs Savings Modeling and Costing A · PDF fileTrue Costs Savings Modeling and Costing A ... Save money? How can I know? Can I prove the ... •May waste resources

Chris Grossmeier – [email protected] Blumenthal – [email protected]

LHC2386BU

#VMworld #LHC2386BU

True Costs Savings Modeling and Costing A Migration to VMware Cloud™on AWS

VMworld 2017 Content: Not fo

r publication or distri

bution

mailto:[email protected]

mailto:[email protected]

Public Cloud Leverage For IT/Business Alignment

Business Goals

• Agility to speed time to market, adapt to market demands

• Elasticity to meet demand while controlling cost

• Global presence

Impediments On-prem Today

• Physical capacity limitations

• Capex-based financial model

• Legacy infrastructure maintenance

Hidden Challenges

• Replatforming VMs

• app dependencies

• Re-architecting apps and infrastructure

• Cost analysis / alternatives and impacts

IT struggles to meet

these goals because…

The public cloud seems

like the solution

but…

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bution

There is another path… “Virtual Insanity”

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Traveling Without Moving (aka Virtual Insanity)

OnPrem vSphere

• Existing infrastructure services

• Fixed physical resources

• Capex financial model

VMware Cloud™ on AWS

• Existing infrastructure services

• Variable physical resources

• Opex financial model

Macro Virtualization – Delivers Hybrid IT StructureExtends virtualization benefits without additional cost or risk

…But new world increases economic complexity and decisions#LHC2386BU



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VMware Cloud ™ on AWS Economic Considerations

VMware Cloud™ on AWS or AWS,

GCP, Azure?

Resource Saturation and

Contention?

Workloads:

Best fit / Worst Fit.

Best Applications

Save money?

How can I know?

Can I prove the ROI?

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VMware Cloud™ on AWS – The Cost Value CurveC

ost

per

VM

Utility

• Too few VMs for Cluster - High Cost per VM

• Just the Smallest VMs - Wasted Resources

• Balance of Small and Mid - Good Value

• Small, Mid, and Some Large - Meets Business Needs

• Most VMs Except Largest – Extra Hosts Required

Your largest outliers add significant cost by increasing Cluster Host Count

Dramatically to meet resource needs

Cluster Grows

Cluster Grows

• All VMs – Full Function/Several Extra Hosts Required

Cluster Grows

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Steps To Maximizing Value with VMware Cloud™ on AWS

1. Quantify On-Premise Costs

2. Apply a Packing Model

3. Exclude Outliers

4. Quantify the Cloud costs

5. Other Service Costs

6. Estimate Migration Costs



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Baseline Costs

• Current Real Data

• CapEx – Hardware + Licenses

• OpEx – Support + Energy

• Define Your Scope

• Total these workload costs to understand your total on premise operational costs for these workloads

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Quantify Your On-Premises IT Costs

• Quantify all hardware resources and their costs

• Include vSphere Licenses and Support

• Add per VM and per Host costs

• Estimate cost per workload

• Environmental Costs, Electricity, Cooling, Square Footage

• Take depreciation into account

Or

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Optimize Your Resource Packing Models

Everyone thinks they know how to pack. But few respect the

limits of their resource

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Bin Packing for CPU Demand, vRAM,

Storage, and Network

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Now do this for each critical metric that defines a Cluster Capacity.

CPU, Memory, Storage Capacity, Disk IO, and Network IO

Individual VMs As Defined with Usage

Aggregate Sum of Peak of Each VM

Aggregate of All VMs As

Defined

All VMs – Aggregate Time Based Peaks With 20

Second Granularity

8:01:20 8:01:40 8:02:00 8:02:20 8:02:40

$$$$$

$$$

$$

Understand How to Measure and Size for Usage Peaks

Individual VMs As Defined with Usage



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Cluster Bin Packing Has

Different Rules

Packing Considerations:

• Storage can span hosts

• vCPU and vRAM are contained to a single host

• CPU Demand not CPU Core Count Matters

• Hyperthreads impact demand

Outcomes:

• Very large VM’s add to the host count

• Small VM’s add to the density and savings



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Effective Packing Manages All Resources

A data center has an infinite number of combinations#LHC2386BU



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Optimizing Cost for Cloud - Shared Resource

Packing Maximizes Value

Pack for 85% to 95% Resource Utilization

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Peaks for VMware Cloud™ Percentiles for Cloud Instances.

• Use Peaks for VMware Cloud™ on AWS

• Use Percentiles for Instance Mapping

• Every VM hits 100%, the question is for how long it stays there.

• Histograms and granularity ensure maximum density

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Efficient Packing and Cluster Impact

Packing for CPU

• Focus on demand

• Target 85%-95%

• Limited to single hosts maximums

• Ideal density avoids scheduler contention

• DRS still plays a role in resource availability

Packing for RAM

• Avoid over subscribing

• Target 1:1

• Limited to single host maximums

• Ideal density reduces Memory Swaps and Latency

Packing for Storage

• Can expand Cluster

• Storage Spans Hosts

• No overcommit of Storage

• Thin Provisioning reduces storage needs

Don’t overlook Disk IOPS, Network IO, Throughput Speeds, etc.

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Focus on Packing Efficiency

Do Not Focus On Consolidation Ratio

• False focuses on more VM’s per Host –Not an indicator of efficiency, only density

• May cause contention if density is too high

• May waste resources if density too low

• This is not what we are striving for but rather the product of efficient packing

• Potential false appearance of value

Focus On Efficient Packing

• Better packing yields optimal consolidation ratios

• Strive for 85% to 95% packing.

• Packing to Limiting Resources leaves other resources free

• Packing based on peak histogram results in best density with least contention

• Result is the Ideal Consolidation Ratio

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Reduce the Candidates – Identify Outliers

• One Large VM may result in additional servers and resources.

• Remove a large VMs may dramatically reduce cluster limiting resources and shift limiting resource to other metric

• Strive for balance, not an excess in any one resource.

• Large Disks often need more hosts to achieve capacity despite CPU and RAM not being used.

Sultan Kosen is a staggering 8’ 3” tall and has size 28 feet

3

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Large VM Medium VM

CPU Capacity (Height)

RAM Capacity(Width)

Storage Capacity(Depth)

Small VM

Visualizing Cluster Capacity and Packing

MiniSingle Host Capacity

Things would be great if every VM used its defined resources to 100% and VM Sizes were easily classified

x 4The VMC Base Cluster Capacity

JUMBO

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BigCPU VM

High RAM VM

High RAM +Large Storage VM

CPU GHZ Demand Capacity Consumned

RAM Capacity Consumed

Storage Capacity Defined

Small VM

Sizing Factor

• Volume Increases with Each Additional Host to the Cluster

• Storage Can Scale Across Hots

• vRAM is Host Limited

• vCPU is Host Limited

• Network IO is Host Limited and Cluster Limited

• Storage IO is Host Limited and Cluster Limited

• Storage impacted by Deduplication and Compression

• 32 vCPUs

• 1 vCPU 512 MB vRAM

• 128 GB vRAM

• 3 TB Storage + 32 vCPU

• 3 TB Storage + 148 GB vRAM

These Are All Valid Configurations

LargeStorage

VM+

CPU Demand

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RAM Capacity(Width)


Don’t Over Purchase Your Cluster Capacity

Total Cluster Capacity

Single Host Capacity

36 CPU 512 GB RAM

7.2TB Usable Disk

No Single VM Can be Larger than this.


36 CPU 512 GB RAM

7.2TB Usable Disk


Server 3 Server 4


36 CPU 512 GB RAM

7.2TB Usable Disk



36 CPU 512 GB RAM

7.2TB Usable Disk


Server 1 Server 2

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Large VM

Medium VM

Small VM

Mini

Jumbo VM(1 per Host)


RAM Capacity(Width)


Buy for Resource Demand, Not Configured VM Size


36 CPU 512 GB RAM

5.3TB Usable Disk


Total Cluster CapacityAnd Actual Resource Demand

Large VMMedium

VM

Small VM Mini

Jumbo VM(1 per Host)

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Collect Data on Everything• Host Hardware

• Storage

• Networks

• VMs

• Supporting Resources#LHC2386BU



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Looks At Metrics That Matter

at clusters, hosts, OS, storage, networks, and usageLook

your packing density – density adds valueKnow

the Outliers and their impact on Hosts CountFind

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Mapping Cloud Costs

Costs start with 4 hosts

With VMware Cloud™, fewer than

4 hosts still find benefit, but at a cost

Take advantage of VMware discounts for owned licenses

Know which VMs have greatest impact

on cost

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Packing Cost Comparison –VMware Cloud™ on AWS– CloudPhysics Packing Model

VM’s In Scope of Assessment 561 VMs Cost per VM

CloudPhysics’ Cost Calculator Estimates

For VMware Cloud on AWS

18 Hosts @ 90% Packed

Apply Discounts ForNSX, vSAN, vSphere

$990,289.32 – Annual On-Dmeand$701,824.50 Annual 1 Year Commit

$492,147.00 Annual 3 Year Commit

$1,765.22 – On Demand$1,251.02 – 1-Year Commit

$877.27 - 3 Year Commit

Instance Based CloudsAs Configured Peak Usage 99th Percentile Usage 95th Percentile Usage Cost Per VM @ Peak

Private – On Premises IT $978,481.00

Microsoft Azure $894,604.00 $865,737.00 $694,645.00 $645,288.00 $1,543.20

Google Cloud (GCP) $1,190,127.00 $1,139,146.00 $912,641.00 $845,644.00 $2,030.56

AWS $893,870.00 $871,263.00 $747,777.00 $724,567.00 $1,553.05

Comparing VMware Cloud™ Cluster Cost and Forecasted Actual Cloud Instance Costs often proves advantage to VMware Cloud on AWS over Instance Based Hosting

Actual customer results - 5 Clusters, 28 Hosts, 561 VM’s Before Assessment

Note: Real results based on customer data. Your mileage will vary based on utilization and resource requirements.



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CloudPhysics’ Cost Calculator for VMware Cloud ™ on AWS – Real Results

On-Premises VMware Hybrid Cloud

On-Premises

PrimaryDatacenter

RemoteDatacenter A

RemoteDatacenter B

Note: Real results based on customer data. Your mileage will vary based on utilization and resource requirements.

$ 735,314.00 /yearWith 3-Year

Commitment

Saving 25% with 3yr CommitmentCost within 1% for Hybrid Cloud W/ On-Demand

$ 489,241 /year

On-Premises VMware Cloud on AWS

PrimaryData Center

RemoteData Center A

RemoteData Center B

PrimaryData Center

RemoteData Center A

RemoteData Center

B

On Premises CostEstimated at

$978,481.00 /year $ 495,144.66 /year On Demand

$ 246,073.5 /year3-Year Commitment

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84.27% of clusters analyzed are cheaper than AWS Instances

40%40%+ Cheaper than AWS in 21.35% of Clusters after CloudPhysicsOptimizations

55.73%Largest observed savings over AWS

27.1%On average, VMware Cloud ™ on AWS is 27.1% Cheaper than AWS after CloudPhysicsOptimizations.

25% Cheaper than AWS in 55% of clusters after CloudPhysicsOptimization



bution

IT Needs to Go Deeper into Business Rules

vCloud on AWSOn-Premises

Private Datacenter

Database Tier

Dependencies make or break your business model.

Ingress/ Egress Data

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Account for Outlying Attribute

• Static IP Addresses

• Network Firewalls

• Load Balancers

• Private VPN

• Network Segments

• HA and DRS

• Affinity Rules

• Replication and Mirror

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Future State

Welcome to the Hybrid Cloud

vCloud on AWSOn-Premises

Private Datacenter

SaaS Based Apps

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Can You Find Additional Savings? YES!

• Migration Costs Savings – vMotion, No rebuilds!

• Re-Platform Costs Savings – Existing network and resource models, No rebuilds!

• Discounts – Take advantage of NSX, vSAN, and vSphere discounts

• Term Length Commitment – On-Demand vs 1-Year vs and 3-Years.

Photo Credit : 401(K) 2012 - Flickr#LHC2386BU



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Lessons Learned

1. Efficient cluster packing increases value considerably

2. Outlier configurations dramatically impact value

3. Until deduplication and compression arrive, storage likely to be primary bottleneck. Host Limited

4. Packing for resources based on aggregate demand finds optimal consolidation ratio

5. 85% of time, VMware Cloud on AWS is cheaper.

6. Discounts impacted if you move more than 50%

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Your Call To Action

Optimize Optimize Cost by Reducing Outliers when Possible

Clarify Clarify Scope

Involve Involve your Lines Of Business to know Dependencies

Complete Complete a Packing Exercise to Find Opportunity Cost

Know Know Your On-Premises Costs

Leverage Leverage Partners for Funded Assessments!

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CloudPhysics for VMware Cloud on AWS:

Analyzes all VMs in vCenter

Finds outliers that negatively

impact costs

Determines ideal host count

Compares instance vs host

cloud models

Gets you to the cloud faster!

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Get a Fully Funded

Assessment From

A CloudPhysics Partner!



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Documents

LHC2386BU True Costs Savings Modeling and Costing A · PDF fileTrue Costs Savings Modeling and Costing A ... Save money? How can I know? Can I prove the ... •May waste resources