TCA/TCO Benefits of Consolidating Databases and x86 Servers on IBM Enterprise Linux Servers

White Paper:
TCA/TCO Benefits of
Consolidating Databases
and x86 Servers on IBM
Enterprise Linux Servers

WinterGreen Research, Inc.

Whitepaper: TCA/TCO Benefits of Consolidating Databases and
x86 Servers on IBM zEnterprise Servers with Linux
As a C-level executive, you are always on the lookout for ways to reduce IT costs while
increasing systems capability in order to grow sales and/or improve service. Leveraging
applications with automated business processes that enable user centric interconnected
applications embracing interfaces that are inherently enabled for smart devices with
efficient systems represents a proven way to improve the business.

As your IT managers look for economies within the data center, improved Linux systems
can provide those economies. Benefits of Linux open systems include capabilities for
supporting application and data base consolidation. Linux systems consolidations
eliminate server sprawl and provide for virtualization of servers. Server sprawl may be
eliminated in a partial manner by consolidating from many servers and moving them as
images to ten percent or fewer servers using VMware, or more completely by taking the
images onto one Enterprise Linux Server.

Linux systems consolidation may occur within the line of business or inside the IT data
center. The effect of having a zEnterprise server consolidation of images is to achieve a
condensed footprint. This achieves elimination of application and database distributed
servers, and decrease or elimination of many software application licenses and database
licenses. The cost reduction implications are significant as illustrated hereafter.

The larger, faster IBM zEnterprise servers have compelling TCO and TCA metrics that
show considerable cost savings over VMware consolidation implementations. IBM
zEnterprise is a viable data and server consolidation option. Linux on zEnterprise is a
solution available to the line of business to promote enterprise class capability while
reducing distributed server systems operations costs.

As an Executive responsible for controlling IT costs, you can use the approach outlined
herein to analyze your situation and to quickly identify potential IT cost reduction
benefits by doing a proper TCA/TCO analysis. The IBM Enterprise Linux Server
technology cost advantages presented herein are achieved in part through server

COPYRIGHT 2012, WINTERGREEN RESEARCH, INC. 2
www.wintergreenresearch.com www.wintergreenblog.com
tel 781-863-5078
email: info@wintergreenresearch.com
Lexington, Massachusetts


consolidation. Fewer application and database software licenses, fewer people, and less
energy costs provide compelling savings in IT acquisition and operations costs.

Server, Networking, and Software Total Cost of Acquisition (TCA)
Comparison
Following is a total cost of acquisition (TCA) cost comparison for 80 physical x86 servers
in the first case versus 80 VMware images on 5 blade Linux servers in the second case,
and 80 applications on one zEnterprise 114 in the third case.

Figure 1

Total Cost of Acquisition (TCA) Comparison of Different Server Implementations of
One Application

TCA of 80 Linux Servers :
x86 Distributed, Blade VMware Virtualized, and zEnterprise z/VM Servers

800000

730,388
700000
In Dollars

600000

532,212
500000

400000
349,756
300000

200000
Distributed Blade VMware zEnterprise Linux
Source: WinterGreen Research, Inc.

tel 781-863-5078


The total cost for one zEnterprise 114 (See Appendix 1 for configuration details) hosting
the virtual images, for server hardware purchase plus software and infrastructure of
network, database, and storage is $349,756 as compared to $730,388 for 80 standalone
x86 servers when every web service application instance is hosted on its very own
server. This is versus $532,212 TCA for the consolidation to 5 larger distributed Linux
blade VMware equipped servers

The acquisition costs of hardware, software, and infrastructure components including
network and storage systems have similar proportions for the three scenarios as
illustrated in Figure 2.

Figure 2
Component TCA Hardware, Software, and Network, Database, and Storage
Infrastructure Costs for 80 Linux Servers and / or Images

Proportion of Hardware, Software, and Infrastructure Cost for 80 Linux
Production and 80 Linux Support Servers
800,000.0
730,388
700,000.0

600,000.0
532,212
500,000.0
349,756

400,000.0

300,000.0

200,000.0

100,000.0

0.0
1 2 3
Distributed x86 Servers Blade Unix Server with VMware zEnterprise with Linux Images

Server Cost /x86, Blade Linux, z 114 Cost
Software Application, OS, Security, VM
Network, Database, and Storage Source: WinterGreen Research, Inc.

tel 781-863-5078


The two charts above illustrate that the zEnterprise 114 is the least cost system by 52%
over the VMware blade systems when considering direct acquisition costs.

When looked at from the point of view of the useful life of the equipment asset, the
analysis yields different results; the zEnterprise server becomes far more attractive than
the other systems implementations. Following is a snapshot analysis of acquisition cost
divided by useful life to show single year cost for the different systems configurations
when shared workload, useful life, and utilization are taken into consideration. As
shown below, the savings are dramatic.

Figure 3

Analysis showing Single Year Costs for Seven Year Timeframe

Including Server Useful Life:
TCA of 80 Linux Production TCA of 80 Linux Servers Over Useful Life of Equipment:
and 80 Linux Support Servers x86 Distributed, Blade VMware Virtualized, and zEnterprise
z/VM
Including the effects of 160,000

variable systems utilization, 133,536
140,000
variable virtualization
120,000
efficiency and variable
workload sharing accumulated
In Dollars

100,000
84,458
over seven years. This 80,000

analysis is rationalized for
60,000
constant lease payments, to
show a one year snapshot of 40,000

TCA. 20,000
18,381

0
Distributed Blade VMware zEnterprise Linux
Note: Includes virtualization consolidation efficiencies achieved and workload sharing effects.

tel 781-863-5078


In this case, the zEnterprise 114 is 4.6 times less expensive than the VMware blade
workload systems implementation. The TCA of 80 Linux servers along with their support
systems over the useful life of the equipment analysis illustrates that the 80 distributed
servers plus the 80 support servers cost $133,536 per year, the blade VMware
virtualized (80+80) systems for a comparable workload are $84,458 per year, and the
zEnterprise 114 hosting (80+80 images) is $18,381 per year.

Additional savings come from utilizing the zEnterprise 114 in a shared workload
environment, where the assumption is that 35% of the zEnterprise 114 processing
capacity is used for other applications (for example: managing distributed server
security authentication or another department running Linux) and 65% of workload
processing capacity is consumed by the consolidated Linux applications.

The most compelling factors that have impact on the more detailed server TCA analysis
beyond purchase price are application workload, shared workload, utilization, and years
of server useful life. By looking at the entire TCA costs for each of the three server
scenarios over 7 years, it is possible to derive rational, comparable costs for one year.
The zEnterprise servers (with a single asset serial number) tend to be refreshed rather
than replaced, permitting continuing lease whereby the actual lease amount goes down
as the years go forward, because the box has been depreciated.

tel 781-863-5078


Figure 4
Selected Assumptions Used for TCA Analysis of Servers
Selected Assumptions Used for TCA Analysis of Servers
Distributed Virtualized Linux
Servers Distributed zEnterprise
HP Proliant HP Blade Virtual Machines
DL 381 685 VMWare on z/VM
# Production Servers x 2 for x86 and Blade 80.0 5.0 1.0
$ Per Server 2,340.0 23,680.0 185,000.0
Servers Purchase Price $ 374,400.0 236,800.0 185,000.0
% Server Workload Shared 100.0 100.0 35.0
% Utilization 5.0 35.0 85.0
$ Per Server / Shared Workload 374,400.0 236,800.0 120,250.0
Years of Useful Life / Refresh 3.0 3.0 7.0
$ Server Costs Per Year Over Useful Life 133,536.0 84,458.7 18,381.1


Distributed servers and blade VMware units have a typical 3 year shelf-life. The newer
x86 systems use less energy and are more efficient, creating advantages to a 3 year x86
server replacement cycle program.
The independent benchmarks from TCP C, TCP A and others form the basis for making
assumptions about workload and cost per server. Many variables are considered in the
seven year analysis where the seven year costs are totaled and divided by 7 for each
system. Distributed and blade servers that sit completely idle are a separate issue.
Shared workload is an issue as well. Processing nonrelated workloads during low
utilization times has direct impact on reducing zEnterprise 114 TCA. The number of
application server licenses and database licenses in the virtualized blade systems are an
cost issue for those systems. IBM zEnterprise requires considerably fewer software
licenses than the other systems being compared.

tel 781-863-5078


Total Cost of Acquisition (TCA) For Deployment Topology
TCA includes acquisition of server and storage hardware, but also the software licenses
required for the deployment topology. Database servers and licenses, test and
development servers, software licenses, networking routers and cabling are some of the
often overlooked server acquisition associated TCA costs.

The usual as-is configuration in a horizontally scaled-out network of x86 distributed
servers running a like application and/or copies of data to support application workloads
is well defined and typically somewhat standardized. (See Appendix for configuration
used in this analysis). Many firms have already embarked on a consolidation and
virtualization strategy to collapse the high number of smaller user-centric single-
application servers into a larger server shared by multiple users using technologies such
as VMware. A more scalable and cost effective mixed workload solution is provided by
Linux on IBM zEnterprise.

Even though the single server is $2,340 each, when compared to the cost of the
zEnterprise at $185,000 (See Appendix for system configuration used in this analysis),
the zEnterprise is less expensive because when considering workload, the more
expensive unit is more efficient at running the workload, the $ per unit of workload is
lower on the zEnterprise 114 (z114).

IBM zEnterprise 114 Lowers Entry Cost
The IBM z114 lowers the entry cost to get started with the enterprise Linux server.
Faster cores and a bigger system cache on the zEnterprise 114 and its larger sibling
zEnterprise 196 let users do more processing at less cost. Whether running Linux on
z/VM, or on integrated IBM System x or p blades within the zEnterprise BladeCenter
Extension (zBX), the zEnterprise solution offers workload optimization choices beyond
the traditional mainframe operating environments -- and this flexibility of operating
environments and deployment choices within a single system is unique to the
zEnterprise System.

The total cost of acquisition analysis for a single application consisting of 80 production
instances (plus 80 supporting server instances which we will discuss next) illustrates the

tel 781-863-5078


differences in cost between images instantiated on single servers, VMware virtualized
servers and a zEnterprise z/VM virtualized server.

The launch of production applications on 80 servers depends on the existence of
background server resources, used for testing, development, quality assurance and
database systems support. This analysis assumes that there is an equal number of non-
production x86 and blade servers used for test, development, and database as
production x86 and blade servers (a 1:1 ratio of production to non-production). It
should be noted that this is a rather conservative estimate vs. the 1:4 or 1:6 ratios often
used in similar analyses. Our belief is that the 1:1 scenario is more accurate than the
other ratios, more representative of what is found in typical data centers. Any higher
ratio simply increases the savings from the zEnterprise 114 server case.

Thus when we analyze 80 x86 Linux servers with a cost comparison, there are an
additional 80 x86 servers needed to make the application instantiation a reality. For
blade servers the same scenario holds true for hosted server images. IT has other
choices for hosting test and development in the cloud, running the database on a
mainframe, and so forth, but we have chosen to analyze using this ratio.

As shown in the illustrations, the 80 distributed production servers plus 80 supporting
other servers together cost more to implement than the single zEnterprise 114 server.
Applications can be implemented on real (physical) servers or as (virtual) server images
on blade servers or a zEnterprise 114 server. In every case there are a total of 160
application images that need to be processed on some server.

Designed, sized and priced for mid-sized organizations, the zEnterprise 114 is the
newest addition to the IBM zEnterprise System class of servers; it sells for approximately
$185,000 USD in the selected configuration considered in this instance (pricing may vary
by country) and is positioned as an alternative to scaled out virtualized servers for the
line of business requirements. Consolidation of an application onto a single zEnterprise
server turns out to be the most cost efficient way to implement web services. (Who
knew?)

tel 781-863-5078


Instantiation of multiple server images on a blade server using several servers using
VMware is the second most cost efficient way to deploy web services enabled
applications. Use of multiple single inexpensive x86 servers, one for each single
application instance (commonly called the “scale out” approach) is the most expensive
way to deploy these types of applications.

There are many sets of web services enabled Linux applications running in IT data
centers on 80 or so production servers. This is a typical number of servers or images for
a specific, targeted application.

Competitive pricing for Linux on zEnterprise proves to be an attractive alternative to
server sprawl. A combined total cost of acquisition (TCA) and total cost of ownership
(TCO) perspective provides insight into cost structures. In an environment with 5
virtualized physical blade servers with 80 Linux images on production servers using
VMware as compared to the same Linux images on zEnterprise 114 with z/VM shows
there are multiple areas of cost reduction possible in the total infrastructure.

Total Cost of Ownership (TCO)
In part, the single x86 or blade servers are more expensive because they are more labor
intensive than the zEnterprise 114 and labor accounts for 70% of the cost of running an
IT department. The more automated process provided by zEnterprise 114 is significant
because it permits faster, better application launch and systems management.

In part the difference in IT TCO cost is because the single x86 servers run at only 15%
utilization on average while the zEnterprise server demonstrates 85%+ utilization,
creating economies of scale. Economies on consolidated systems are achieved in
energy, cooling and floor space efficiencies and in the need for fewer software licenses
on the consolidated virtualized systems.

Software cost for the VMware virtualized blade systems are particularly impacted by the
number of cores in the server. The software and software maintenance pricing is by
core so even though there are only 5 distributed servers as in the above VMware
example, there are still 16 cores on each server and 80 licenses needed with
maintenance, resulting in no database or application software savings.

tel 781-863-5078


The zEnterprise server uses three cores in this situation so there are significantly fewer
licenses, only three, but it needs to be noted that the dollar per core is higher for this
type of zEnterprise server and this impacts ongoing maintenance costs.

The graphics following show more detail for the TCO of HW/SW for a small
configuration scenario (horizontal scale-out of distributed x86 servers, consolidated
larger distributed blade servers with virtualization, and a zEnterprise consolidated /
virtualized system.

Figure 5

Total Cost of Ownership (TCO) 80 Linux x 86 Production and 80 x86 Support Servers,
80 Blade Virtualized Production Images and 80 Support Virtualized Images Cost
Comparison to One zEnterprise z/VM Implementation

Total Cost of Ownership (TCO) 80 Linux
Production Servers Cost Comparison
300,000.0

250,000.0 Outage Cost

200,000.0

Floor Space, Power, and
150,000.0 Cooling

100,000.0
Software and Hardware
Updates and
50,000.0 Maintenance

0.0 Labor Costs
Distributed Blade zEnterprise

Note: Analysis per Year, Comparable Cost Over 7 Years.

tel 781-863-5078


The 80 production servers or server images are matched by an equal number of support
servers or server images (160 in total). The variables looked at in the total cost of
ownership TCO include outage cost, floor space, power, cooling, software and hardware
updates, backup, software and hardware maintenance, and labor costs.

These TCO costs are shown for one year. They represent recurring costs so the
disparities become more pronounced over the seven years considered in the analysis.
Even in one year, the TCO numbers show very compelling advantage to use of
zEnterprise for web services enabled workloads. An analysis showing significant
advantage to the operating costs of the zEnterprise System over an extended period
beyond the initial first year is not shown but can be calculated fairly easily to
demonstrate the effects over several years.

The 80 x86 distributed production servers have operating costs of $288,298 for one
year. The blade servers with VMware have one year operating costs of $127,225 and
the zEnterprise benefits from no outage costs and lower labor costs because of more
automation in the system. An 80 production server configuration was chosen as an
example because it is representative of a variety of web application situations
commonly found in IT environments. Web services enabled applications are used for
ordering, transaction management, and shipping process management. While there are
thousands of different IT data center metrics to analyze in the WinterGreen Research
ROI tool, a representative average has been chosen for this analysis.

tel 781-863-5078


Figure 6
Total Cost of Ownership (TCO) 80 Linux Production Servers Cost Comparison

Assumptions Used for Analysis of Total Cost of Ownership (TCO) Linux Servers
In Dollars

Distributed Virtualized Linux
Servers Distributed zEnterprise
HP Proliant DL 380 HP Blade 685 Servers Virtual Machines
VMware on z/VM
Labor Costs 84,000.0 23,000.0 13,500.0
Software, Hardware Updates, Maintenance 72,288.0 51,275.4 51,100.3
Floor Space, Power, and Cooling 48,000.0 11,610.0 3,167.0
Outage Cost 62,010.0 41,340.0 0.0

Total $ 266,298.0 127,225.4 67,767.3

Note: Per single year costs, comparable cost over 7 years.


The zEnterprise 114 (or z196) server is cost
What costs $266,298 per year to
efficient because it uses less power and fewer
implement as a set of Linux web services software licenses. Stand alone servers are very
enabled applications deployed inexpensive to purchase, but their utilization
enterprise wide on 80 distributed x86 tends to be low, software licenses are
production servers, costs $127,225 on cumulatively more expensive. Application images
blade servers with VMware. The virtualized under VMware on a Blade are more
comparable processing costs decline to expensive than on the zEnterprise 114.
$67,787 on the zEnterprise 114 because
the mature system has the best
automated processes.

tel 781-863-5078


These numbers illustrate why consolidation of servers is creating significant incentive in
the market for IT departments to move to virtualized systems.

As illustrated, virtualization alone is not sufficient, VMware systems have their
limitations, and it is difficult to get many images on a server, 16 virtual server images on
a blade is the number used for this analysis. Many users start out trying to put 50
images on the blade. Studies show that 16 images per blade is reasonable, a little above
the average of 10 images per blade. Utilization of 65% is difficult and expensive to
sustain, 35% is more often the case. Blade servers are generally limited to only one type
of workload, the cost of electricity is still high, and the ratio of full time personnel to
servers remains high.

TCO and TCA Costs Form Basis For Comparative Consideration Of
80 Linux Production Servers
The same amount of workload processing can be done in less time, with more reliability,
more security, and more automated management of process leveraging the high
availability and high utilization for the zEnterprise servers. In addition, the zEnterprise
can manage many different workload types on the same system and is designed to run
at 100% utilization, creating greater efficiencies than are available on blade systems
running VMware, which tend to be tuned for a specific workload type.

For one year TCO / TCA for an organization to run web services enabled application
server virtual images on zEnterprise means that the total cost of each virtual image
including operations and labor is less than the cost of the distributed server hardware
alone. Distributed servers have additional costs for software, networking and database
storage and operations. Once the hardware has been paid for, there are significant
areas of savings from the operations aspects of ongoing systems support. The total cost
per image per year on zEnterprise is $700 in this scenario, including all the associated
hardware, software, labor, and operating systems costs and becomes even less
improves as more workload is added to the system.

This cost per unit of workload analysis is conducted in a thoughtful, detailed, and
professional manner using the independent WinterGreen Research ROI tool, available

tel 781-863-5078


for subscription to anyone who is interested. Such an analysis of TCO and TCA costs
forms the base for consideration of a range of systems configurations.

Analyses are done keeping in mind that there are always many different scenarios and
data center complexities due to processor workload optimization and similar
considerations. Identified trends appear over time.

Security is integral to the design of zEnterprise. Security is built in the DNA of the
zEnterprise hardware and operating systems which provide additional support for ANSI,
firewalls, and PCI standards.

IBM middleware packages run equally well on all platforms. This provides the capability
to migrate systems off expensive application and database server sprawl to the
consolidated mainframe. The zEnterprise’s capability to integrate directly with a blade
server extension (zBX) that runs select native POWER7 and System x x86 processors for
those workloads that require it, addresses any past shortcomings.

Competitive IBM pricing for Linux on zEnterprise proves to provide a compelling
alternative to server sprawl when looked at from a TCO / TCA perspective.

Conclusion
The TCA and TCO benefits come from consolidating databases and distributed x86
servers as images on zEnterprise with Linux. Benefits are compelling for the right
workloads. The larger, faster zEnterprise server has TCO and TCA benefit needs to be
considered by you as a fiscally responsible C level Executive. The direction outlined here
illustrates how you can control costs using the IBM zEnterprise server consolidation and
database consolidation value proposition.

Competitive pricing for Linux on zEnterprise proves the scale up server is an alternative
to server sprawl. Linux on zEnterprise is a solution for the line of business. The LoB can
achieve enterprise class capability at distributed server pricing. The benefits of Linux
open systems capitalize on capabilities that enable application and data base
consolidation. Clients are looking for economies relating to Linux. The costs of server
sprawl and associated data base licenses are very high compared to the costs of the

tel 781-863-5078


zEnterprise System. The same people who support Linux on distributed servers can
support Linux on zEnterprise because it is the same.

The Enterprise Linux Server runs multiple virtual Linux servers concurrently. IBM
zEnterprise Linux Server provides simplification, scalability, reliability, high availability
and security capabilities that go beyond anything a distributed server can offer and at a
lower TCA / TCO.

Single-server simplicity is a priority and zEnterprise 114 (and/or z196) positions the
Enterprise Linux Server to provide Web based and application functionality directly for
the line of business. The Enterprise Linux Server allows running applications on a single
server, which saves software license and management costs, floor space and energy
costs. It significantly reduces labor costs which represent 70% of the IT budget.

The Enterprise Linux Server handles data analytics. It is a game changing,
transformational server. The Enterprise Linux Server advanced virtualization
technology, automation features and highly-scalable server capacities are significant.
Availability in an enterprise Linux server is enhanced by the backup (spare) cores within
to system so there is no single point of failure, providing a system that goes far beyond
the traditional server hardware in its ability to perform without any downtime.

The availability design point focuses on the applications, which results in an integrated
environment where hardware, firmware, virtualization software, Linux and middleware
work in concert to provide application and data availability and security.

Executives are encouraged to view Enterprise Linux Server as another Linux server with
much more scalability and flexibility. Linux will run on zEnterprise as it does on other
hardware and this enterprise class system has compelling cost of computing benefit.

tel 781-863-5078


Appendix – x86 Server Configurations Used In Analysis
Assuming lighter weight Linux web services enabled application:

IBM zEnterprise 114 Server

Machine Model: M05

Memory: 72 Gigabytes RAIM (Redundant Array of Independent Memory).

Number of IFLs: 3

z/VM and Red Hat Linux

x86 Servers

HP ProLiant

Model DL381

Memory: 8 MB RAM

Red Hat Linux

CPU Type: Intel Xeon X5690 3.46 GHz

Total # of Processors: 2

Total # of Cores: 12

Total # of Threads: 24

Linux Midrange Blade Servers

HP ProLiant Blade 685

Memory: 64 GB RAM

Red Hat Linux

tel 781-863-5078

ZSL03148-USEN-02

TCA/TCO Benefits of Consolidating Databases and x86 Servers on IBM Enterprise Linux Servers

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (16)

Semelhante a TCA/TCO Benefits of Consolidating Databases and x86 Servers on IBM Enterprise Linux Servers

Semelhante a TCA/TCO Benefits of Consolidating Databases and x86 Servers on IBM Enterprise Linux Servers (20)

Mais de IBM India Smarter Computing

Mais de IBM India Smarter Computing (20)

Último

Último (20)

TCA/TCO Benefits of Consolidating Databases and x86 Servers on IBM Enterprise Linux Servers