Achieving maximum ROI from server virtualization

White Paper

Achieving maximum ROI from server virtualizationVirtualization holds tremendous promise, but it’s up to IT managers to overcome some basic hurdles. By Sandra Gittlen

Contents

1 ExecutiveSummary2 Virtualization:AdvantagesandObstacles2 EliminatingMajorDeploymentObstacles6 Conclusion

ExecutiveSummaryVirtualization is widely regarded as a powerful tool for solving resource utilization

challenges. From consolidating servers to pooling storage to easing desktop image

management, virtualization can help organizations reduce data center complexity, lower

power consumption, and save money.

Yet many organizations decelerated their adoption of virtualization over the course of

2008, according to surveys conducted by IDG Research Services in the spring and fall of

that year. For instance, in the spring, 72 percent of respondents said they were currently

investing in server virtualization. Yet only 47 percent said so in the fall. Similarly, while

11 percent of spring respondents said they had no plans to invest in virtualization over

the next 12 months, by the fall that number had leapt to 20 percent.

The IDG Research Services studies also clearly show that the chief culprits behind this

declining investment in virtualization are a series of obstacles that IT teams are encountering

as they virtualize their servers, storage, desktops, applications, and other systems. Technology

managers report that unanticipated management complexity, unplanned software licensing

costs, reductions in application performance, and lack of business owner buy-in, among other

factors, are hindering their ability to benefit from their virtualization deployments.

This white paper examines the roadblocks that IT departments face when imple-

menting virtualization and offers tips on avoiding them, so you can achieve maximum

ROI on your virtualization investment.

>>Brought to you compliments of

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Achieving Maximum ROI from Server Virtualization �

>> Virtualization:AdvantagesandobstaclesVirtualization in its simplest form is a way to abstract physical resources from the

software or operating systems that control those resources. It can be applied to

myriad infrastructure components, including servers, storage, desktops, file systems,

applications and application grids, I/O, and entire data centers.

No matter where an organization deploys virtualization, though, the goals are gener-

ally the same: to reduce infrastructure costs and power consumption, consolidate

hardware and software, lower administrative overhead, improve disaster recovery

readiness, and boost system availability and reliability.

Yet despite virtualization’s myriad benefits, many IT managers who were initially

enthusiastic about the technology have had difficulty extracting maximum value

from it. Where they thought they’d find simplicity, they’re encountering complexity.

Where they anticipated a drop in licensing outlays, they’re seeing software spending

actually increase. And where they expected to have fewer servers to manage, they’re

seeing virtual machines proliferate out of control.

This has led to a drop in virtualization investments during 2008, according to the two

studies from IDG Research Services. Yet those surveys showed little to no decline

in the importance that IT managers attach to virtualization. For example, 67 percent

of respondents to both the spring and fall surveys agreed that server virtualization

would be important to their company over the next 12 months. This suggests that

while IT departments remain interested in virtualization, deployment obstacles are

keeping them from adopting the technology more rapidly.

EliminatingMajorDeploymentObstaclesRespondents to the IDG Research Services surveys reported a variety of challenges

keeping them from realizing virtualization’s full potential (see table 1). Here are

solutions to some of the biggest such deployment hurdles:

Increasedmanagementcomplexity

Managing a virtual infrastructure can be extremely difficult using conventional

techniques, as most physical infrastructure management tools have trouble detect-

ing virtual resources.

However, using virtual systems management tools from companies such as BMC

Software® Inc., CA Inc., Hewlett-Packard, and IBM® in conjunction with physical

management tools can help you overcome this problem. Such systems automate

the lifecycle management of a virtual environment, including the configuration,

deployment, maintenance, patching, and decommissioning of your virtual machines.

SurveyresultssuggestthatwhileITdepartmentsremaininterestedinvirtual-ization,deploymentobstaclesarekeepingthemfromadoptingthetechnologymorerapidly.


Rethinking your server management processes is also important. For example, few

companies have trouble controlling the number of physical server images they sup-

port. Under virtualization, though, virtual servers often proliferate wildly, producing

a large number of unique server images. That, in turn, can saddle businesses with

high support costs as they try to patch, update, and perform general maintenance

on a wide variety of virtual machines.

To prevent such problems from developing, carefully limit the number of unique

server images in your data center. Standardizing on a few virtual server images

enables you to manage your system as a fleet of clones and avoid the need for

individualized configurations, quality assurance, and testing.

Unanticipatedcostofsoftwarelicensing

Many organizations expect virtualization to lower their licensing expenses. How-

ever, virtual machines require licenses just like physical ones, so depending on your

software vendors’ licensing terms, your costs can actually go up.

Organizations rolling out virtualization, then, must carefully scrutinize their software

vendors’ requirements and restrictions if they wish to keep licensing outlays under

control. For example, do your vendors charge per user, per server, per CPU, or per

physical machine? The answer could impact how much it costs you to run a given

application in a virtual environment.

If virtualization does drive up your licensing costs, you have several options. First, see

if redeploying some of your virtual machines onto host servers with fewer processors

or CPUs fixes the problem. If not, try negotiating a “virtual environment” price with

your vendor. For instance, some software makers allow for on-demand pricing that only

applies when your virtual machines are running. As a last resort, consider switching to

a new solution with licensing terms more congenial to virtual environments.

Deploying software asset management tools can also help you control licensing costs

Standardizingonafewvirtualserverimagesenablesyoutomanageyoursystemasafleetofclonesandavoidtheneedforindividualizedconfigurations,qualityassurance,andtesting.

>>

Table 1. Which of the following factors are limiting your organization’s ability to achieve greater ROI on its server virtualization initiatives?

Increased management complexity

Lack of business owner buy-in

Reductions in application performance and availability

Virtual machine sprawl

Difficulty in isolating technical problems

26%

25%

24%

21%

21%

Source: “Trends in Virtualization” survey, April and October 2008, IDG Research Services


under virtualization. Such tools—available from BMC, CA, Hewlett-Packard, IBM,

Novell®, and Microsoft® Corp., among many others—enable you to identify soft-

ware that no one is using and either retire it or redeploy it. They can also warn you

against exceeding your pool of existing licenses as you grow your virtual environment.

Lackofbusinessownerbuy-in

While most IT managers adapt easily to virtualization, business owners often find its

abstraction unnerving. If they’re going to pay for IT services, they want something

they can see and touch in return, such as a storage array or blade server.

To win over balky business executives, IT teams must emphasize virtualization’s busi-

ness benefits, including faster deployment times and lower power costs. The best

approach is to offer business owners a concrete, written service-level agreement

focused on enhancements such as shorter provisioning windows, greater ability to

support peak loads without purchasing new hardware, faster recovery times, and

improved support.

On the back end, IT departments can install performance monitoring, capacity plan-

ning, and chargeback tools from vendors such as VKernel Corp., Vizioncore™ Inc.,

and PlateSpin®. These tools, available in both appliance and software form factors,

automatically track usage, create chargeback reports, and forecast capacity growth,

yielding data you can use to measure and prove ROI.

Reductionsinapplicationperformanceandavailability

Newcomers to virtualization sometimes encounter application performance

slowdowns. The culprit is usually overburdened physical host hardware. To avoid

performance drop-offs, organizations must balance a given application’s processing

requirements against the capacity of both the virtual environment and the physical

hardware supporting that environment.

Virtualization capacity planning tools can help with this task. With their assistance,

for example, you may find that you can rectify a performance slowdown simply by

moving a virtual server onto a more robust host server that can handle heavier loads.

Or you may find that you need to spread your virtual resources over a greater number

of host devices because your ratio of virtual machines to physical servers is too high.

Virtualmachinesprawl

Creating new virtual machines is so easy that IT organizations often have trouble

keeping server populations in check, resulting in an all-too-common phenomenon

known as “virtual machine sprawl.”

To avoid this problem, IT departments should employ a combination of policies and


lifecycle management tools. The policies should articulate conditions under which it

is permissible to deploy new virtual machines. Lifecycle management tools can then

help administrators track those virtual machines, keep them compliant with deploy-

ment policies, and retire or recommission them when they’re no longer needed.

Difficultyinisolatingtechnicalproblems

Isolating and diagnosing technical problems is inherently easier in a physical

environment than in an abstract, virtual one. However, configuration management

tools designed to map both physical and virtual environments can help you overcome

this issue. For example, products from vendors such as Configuresoft Inc., Microsoft,

Solidcore® Systems Inc., and Tripwire® Inc. enable you to perform root cause

analyses that pinpoint communication bottlenecks between virtual machines. They

can also help you replicate thoroughly tested, standardized machine images. That

way, if you find an issue in one virtual machine, you can quickly and automatically fix

it in machines across the enterprise.

Ballooningconsultingcosts

Consultants often bring a lot to the table when it comes to virtualization, as most

have vast experience that can speed your deployment along. However, virtualization

projects tend to be phased or ongoing, making it easy for consulting costs to spiral

out of control.

To address this problem, always assign your consultants a finite list of clearly defined

tasks, and have full-time employees collaborate on completing them. The hands-on

knowledge transfer that results will enable you to carry out the next stage of your

virtualization plan alone.

Toaddress[spiralingconsultingcosts],alwaysassignyourconsultantsafinitelistofclearlydefinedtasks,andhavefull-timeemployeescollaborateoncompletingthem.

>>

Table 2. In which areas, if any, did your organization realize costs beyond what was initially anticipated with respect to server virtualization initiatives?

Staff hours (labor)

Software licensing

Systems management

Hardware

Consulting

Security

27%

26%

25%

20%

12%

Source: “Trends in Virtualization” survey, April and October 2008, IDG Research Services

36%


ConclusionWhile virtualization is still in many respects a nascent technology, it is rapidly

maturing. Every day sees the introduction of new planning and management tools

capable of assisting with the tough challenges that organizations often encounter

during virtualization deployments. In addition, early adopters are sharing their experi-

ences, resulting in an abundance of best practices for setting policies and managing

virtual environments. With so many people channeling so much effort into realizing

the promise of virtualization, IT organizations can feel confident that achieving the

maximum return on their investment is well within their reach.

>> Sandra Gittlen is a free-lance technology writer near Boston. She can be reached

at [email protected].