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© 2009 VMware Inc. All rights reserved
How to Cut Costs and Save Time
with Virtualization for SMBs
The Problem
Overwhelming complexity
>70% of IT budgets just to keep
the lights on
<30% of IT budgets goes to
innovation and competitive
advantage
VMware Mission – “Make the Plumbing Disappear!”
“Make the plumbing
disappear – in the
Datacenter, in the Cloud,
on the Desktop…
and for the SMB”
“How can I extend my server and storage investment?”
“How can I deploy new services faster and with less effort/training?”
“How can I make my applications, esp. email, more available?”
“How can my backups be faster and more predictable?”
“How can I stop worrying about daily IT operations and plan for the future?”
The Goal
IT
as a
Service
(Internally or
Externally
Provisioned)
Efficiency
Control
Choice
© 2009 VMware Inc. All rights reserved
The Case for Virtualization
Why Virtualize with VMware and Dell?
1. VMware virtualization will get you
10x productivity on your servers
2. VMware virtualization delivers
affordable business continuity,
enabling “Always On IT”
3. VMware vSphere and Intel®
Xeon® processors deliver:
Greater flexibility and agility
Cost-effective availability and continuity
Higher VM density
Increased energy efficiency
With packages starting as low as
$330 per server, VMware
virtualization is a must-have for
every IT environment
• Increase power of every server
• Increase application availability
• Protect your data
Hardw
are
Virtualized World Physical World
How Do I Get 10x Productivity On My Servers?
Traditional x86 Architecture
• Legacy rule: Run only one application per server because single application crashes result in OS or server failure
• Typical hardware utilization under 8%
Virtualization:
• New rule: Run multiple applications per server because OS/applications are
isolated from one another
• Typical hardware utilization 80%
Impact on Small and Midsized Businesses
Increase Staff Productivity
Increase Application Availability
Reduce Physical Infrastructure Cost 1
Increase Data Protection
2
3
4
3-Yr Cost Savings
Opportunity*
20 Servers 50 Servers
$290k $774k
1 month
Payback
3 month
Payback
* VMware ROI Calculator
ATER VMware
Servers 10
Utilization 8%
Annual Support
Costs
$5,000
Annual Power and
Cooling Costs
$8,334
Servers 3
Utilization 80%
Annual Support
Costs
$1,500
Annual Power and
Cooling Costs
$2,499
Before VMware
After VMware
More applications per machine
= less machines
Reduce Physical Infrastructure Cost 1
Over $9,000 per year in savings!!!
Immediate Savings on Hardware
Get More Done with Existing Staff
% of Time Spent on Maintenance
72%
Before VMware After VMware
24%
Source: IDC and VMware TAM program
Do more work with the same
number of people = operating cost
savings
Drivers of productivity
improvements include
Zero downtime maintenance
Built-in high availability
Dynamic patching
Instant provisioning
Automated disaster recovery
Increase Staff Productivity 2
Keep Your Business Running
Zero down-time failover of failed servers
Increase Application Availability 3
Detects server failures and migrates the VM to
a different physical server without human
intervention
Typical downtime
per failure
4 hours
Lost revenue per
hour
$2,416
Lost staff
productivity per hour
$50/hour
Average failures per
year
2
Average Downtime
Costs*
* Average company with 25 employees, 10 servers and $25m a year in sales
$29,328 per year!
OS APP
ESX
OS APP
OS APP
OS APP
ESX
OS APP
OS APP
Failed OS or server
Two levels of Application Protection
Fault Tolerance Zero-downtime failover; VM’s migrate off of failed servers Included in Acceleration kits
High Availability Automated reboot of VMs in the event of physical server failure Included in Acceleration kits & Essentials Plus
OS
APP
Ensures Data is Protected
Agent-less, disk-based backup and
recovery of your VMs
VM or file level restore
Incremental backups and data
de-dupe to save disk space
De-duplicated
Storage
ESX
OS
APP
OS
APP
Increase Data Protection 4
Agent-less snapshot technology
Built in data protection
saves time and money
• Simplifies administration
• Faster recover times
• Less downtime = higher
staff productivity
Business Continuity: The Big Picture
Availability expectations
continue to increase
• RTO’s decreasing from
>24 hours to <12 hours
Cost of downtime continues to
rise
• Increasing dependence on x86
infrastructure
Business Continuity = Minimizing Downtime
40% of small businesses never reopen following a disaster. Of the
remaining companies, at least 25% will close within 2 years. -- U.S. Department of Labor
Typical downtime per
failure
4 hours
Lost revenue per hour $14k*
Lost staff productivity
per hour
$50/hour
Average failures per
year
2
Savings per Year $120k
Average Downtime Costs*
How much does down
time cost your business?
* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)
© 2009 VMware Inc. All rights reserved
Why Refresh your Hardware
~76% of the server install
base is still up for refresh Estimated 34% single-core
and 42% dual-core1
Server Refresh Opportunities in 2011
IDC believes replacement
cycles being delayed from 3-4
years to every 4-5 years.
Source IDC, 2009
Source: Gartner press release http://www.gartner.com/it/page.jsp?id=1209913
Approximately 1 million
servers have had their
replacement delayed by a
year.
Maintaining Aging Servers Limits Innovation & Growth Now is the Time to Refresh!
If you delayed
refresh in 2009, then
you’re not alone
Source: Intel. Intel® Xeon® shipments, 2005-2009.
2010 will mark an important return to installed
base refreshes driven by an uptick in enterprise
budgets, new technological innovations, and a
return to economic growth. Source: IDC, February 2010
Approximately 1 million servers have had their
replacement delayed by a year.
Source: Gartner press release
http://www.gartner.com/it/page.jsp?id=1209913
1 Source: IDC 2009 Q4 Server Tracker. Install base calculated by using this IDC data and a standard life-cycle distribution, and assumes 4- to 5-year replacement cycle in 2008 and 2009 when the recession hit.
© 2009 VMware Inc. All rights reserved
VMware vSphere™ Editions for SMBs
vSphere Essentials
Cost-effective
server
consolidation
and mgmt for
small offices
• Update Manager
• Virtual Center Foundation
(management console)
• 3 dual CPU licenses
• Includes 1-year of support
$995
vSphere 4.1 SMB Product Line
vSphere Essentials Plus
Cost-effective
availability
and data
protection for
small offices
• High Availability
• Data Recovery
• Update Manager
• Virtual Center Foundation
(management console)
• 3 dual CPU licenses
$3995
$2995 (25% off - limited time only)
vSphere Advanced
Acceleration Kit
Full-featured
virtualization
solution for
all size
environments
• Fault Tolerance
• vMotion
• vShield Zones
• Hot Add
• High Availability
• Data Recovery
• Update Manager
• Virtual Center Foundation
(management console)
• 30 Training Credits (optional)
• For 3 hosts
$10,495
**All Prices USD RRP**
Only $330 per server
Under $1,000 per server
vSphere Acceleration Kits – 2011 Lineup
• One of the most popular kits in 2009, VMware has
extended the Advanced Kit into 2010
• 6-CPUs of vSphere Advanced, features includes
• VMotion
• Fault Tolerance
• Data Recovery
• High Availability
• vCenter Server Foundation
vSphere Advanced Acceleration Kit – 36% off list
Kit list price: $10,495
Component list: $16,470
Savings: $5,975 (36%)
Part #: VS4-AD-AK
vSphere Acceleration Kits – 2011 Lineup
• We’ve listened to partners and customers who have
requested a bundle package with vSphere Enterprise
and vCenter Standard
• 6-CPU license of vSphere Enterprise, features include:
• DRS/DPM
• Storage Vmotion
• Vmotion
• High Availability
• Fault Tolerance
• Data Recovery
• vCenter Server Standard
Introducing the new vSphere Midsize Acceleration Kit – 25% off list
Kit list price: $17,795
Component list: $23,750
Savings: $5,955 (25%)
Part #: VS4-MS-AK
VMware
Essentials
VMware
Ess Plus
Other
Solutions
2-way server (4GB RAM) $6,000 $6,000 $6,000
Cost: Guest Windows licenses1 $5,998 $5,998 $5,998
Cost: Virtualization license* $330 $999 $0*
Subtotal $12,328 $12,997 $11,998
Total VMs2 (512MB each)** 12 12 10
Cost per VM $1,027 $1,083 $1,199
Plus:
VMware software is more reliable, has more features and better performance
than any other virtualization product on the market
VMware beats the competition even if their products are “free”
*single server cost when purchased in 3-server bundle
**average VMs per physical machine
VMware Offers The Lowest Cost Per Application (VM)
Resources and Next Steps
• VMware solutions for Small and Midsized businesses:
http://www.vmware.com/solutions/smb/
• Intel’s IT center – solutions to address your IT needs from client to server
http://www.intel.com/itcenter
• Learn more about the Intel | VMware solution:
http://www/vmware.com/go/intel
• Find a VMware Partner:
http://www.vmware.com/partnerlocator
• Find an Intel Distributor:
http://www.intel.com/buy/index.htm
• Download ESXi for Free:
http://www.vmware.com/go/get-free-esxi/
• Evaluate VMware vSphere free for 60 days:
http://www.vmware.com/go/EvaluatevSphere
• VMware Go™ — the Quick and Easy On-ramp to Virtualization
http://www.vmware.com/products/esxi/go.html
© 2009 VMware Inc. All rights reserved
Thank you!
Appendix slides
Product Feature Comparison
Product Feature Enterprise Plus
Acceleration Kit
($20,895)
Advanced
Acceleration Kit
($10,495)
Essentials Plus
($2,995)
Essentials
($995)
Max
functionality
DRS, DPM, Storage VMotion,
Host Profiles, Distributed Switch
Fault
Tolerance Zero down-time failover
Max
scalability
Can scale beyond 3 physical
servers
VMotion Moves running VMs between
physical servers
vShield
Zones Integrated security
High
Availability
Automated restart of failed
physical machines
Data
Recovery
Agent-less, deduplicated
backups
Update
Manager Updates all VMs simultaneously
Includes 3 dual-CPU licenses
VMware vSphere = Lowest Cost Per Application
$26,991 Windows Server DataCenter Ed.
$1,499 Management*
$4,500 Storage
$21,850 Server HW
$13,504 Network, Power,
Space
$4,388 vSphere Essentials Plus +
SnS
$72,731 (with 2 yrs support)
$26,991 Windows Server DataCenter Ed.
$8,954 Management*
$26,450 Server HW
$4,500 Storage
$14,337 Network, Power,
Space
$81,232 (with 2 yrs SA)
Essentials Plus costs 10% less even at equal
consolidation ratios
6:1 average
consolidation ratio
6:1 average
consolidation ratio**
Cost to deploy 15 VMs
VMware vSphere 4
Essentials Plus
$4,849 per App
Windows Server 2008
with Hyper-V
$5,415 per App
Use the VMware Cost-per-
Application Calculator to figure
out your cost-per-application
* includes cost of servers and software (management, OS, SQL) required by the virtualization solution. vSphere Essentials is bundled with one license of VMware vCenter
Server Foundation. Microsoft management software includes System Center Virtual Machine Manager Workgroup Edition, System Center Essentials
** Assumes 1.5 VMs per core in a 2 socket dual core server, 16 GB RAM ($5,000 estimated unit cost), iSCSI storage
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