1. Server Virtualization and Beyond
Insights from the IBM Global Data Center Study to
help improve operational efficiency
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3. Today’s Featured Speakers
Matthew Eastwood
Group Vice President and General Manager
Enterprise Platforms
IDC
Shaown Nandi
Senior Manager, IBM Server and Middleware Services
IBM Global Technology Services

4. Matthew Eastwood, IDC Enterprise Platforms Group Vice President and General Manager
Shaown Nandi, Senior Manager, IBM Server and Middleware Services, IBM Global Technology Services
Server Virtualization and Beyond
Insights from the IBM Global Data Center Study to help
improve operational efficiency
SSP03161-USEN-01
© 2012 IBM Corporation

5. We commissioned a data center study of 308 clients to determine
the current operational efficiency of data centers around the world.
IBM Global Data Center Study
 Broad survey covering server, storage, network data center facility and data center operations
 Detailed execution questions going deep into availability, cost efficiencies and governance
One-in-five, or 21%, of clients have highly efficient data centers; allocating 50% more of
their IT budget to new projects.
How much of your IT budget is spent on:
Most efficient data centers
Maintaining New projects
existing
infrastructure Optimize the IT and facilities assets to maximize
Basic 35% capacity and availability
data
centers Design for flexibility to support changing business
65% needs
Strategic 53% Use automation tools to improve service levels
data and availability
centers 47% Have a plan that aligns with the business goals
Source: IBM Global Data Center Study (2012 April) and keep it current
5 © 2012 IBM Corporation

6. The data center study highlights three critical server implications for
highly efficient data centers.
Virtualization and Leaders have accelerated virtualization and
Standardization standardization to improve operational efficiency.
Leaders use automation and self-service portal to
Automation
manage availability and speed of providing services.
Have a plan and Leaders are faster to adopt the latest technology and
keep it current have a backup plan in the event of disaster.
6 © 2012 IBM Corporation

7. Poll Question #1
What percent of virtualization have you achieved for your servers
A. > 60%
B. 40% - 60%
C. 20% - 40%
D. 10% - 20%
E. < 10%
7 © 2012 IBM Corporation

8. Leaders have accelerated virtualization and Virtualization and
standardization
standardization to improve operational efficiency.
Virtualization and standardization
Strategic 85%
82%
Basic
65%
48% 46%
27% 31%
21%
Percent of Planned growth rate in Standardized on Standardized on operating
servers virtualized server virtualization in hardware platform system and middleware
the next year (mean
response)
Leaders have 2.5 times more servers managed per administrator (27 to 10)
Leaders have higher virtual machine (VM) densities of 8.2 versus 4.5 VMs per server
Source: IBM Global Data Center Study (2012 April)
8 © 2012 IBM Corporation

9. We offer a three-phased approach to virtualize Virtualization and
standardization
your servers, leveraging repeatable processes
and time-tested methodologies.
Solution framing Plan and design Implementation
Discover, model Design a more Pilot, test, deploy
and assess to meet flexible and migrate the
current and future infrastructure that new server
business and IT can respond to fast- infrastructure with
requirements changing demands reduced disruption
9 © 2012 IBM Corporation

10. We modeled simple to complex workloads with Virtualization and
standardization
advanced analytics to increase average
utilization by four times.2
Challenge Central processing unit (CPU) utilization
Comparison of before and after consolidation
 5-10% increase in annual operating expenses (Illustrative)
(%)
 Limited skills to manage heterogeneous 60
servers
Sustained CPU Utilization
50
 Simple virtualization done—little experience to
(Virtualization)
virtualize more complex workloads 40
30
Benefits After (average utilization rate: 40%)
20
 Increased server utilization by 4 times2 by
10
modeling workload with CiRBA1 analytics
Before (average utilization rate: 10%)
 Reduced server count by 5 by times2 0
accelerating virtualization adoption across
Time of day
simple to complex workloads
 Projected savings of US$4 million for new Before consolidation After consolidation
projects in the first year3
1CiRBA Data Center Intelligence (DCI) is an analytics software by CiRBA Inc. This software determines the optimal workload placements and resource and capacity allocations required
to safely maximize the efficiency of physical, cloud and virtual infrastructure; 2547 UNIX servers consolidated to 97 IBM System p® servers; 3 Based on IBM analysis and calculations;
individual client results may vary.
10 © 2012 IBM Corporation

11. Poll Question #2
How many different platforms (Hardware, Hypervisor, Vendor) do you use in your Data Center today?
A) 1-2
B) 3-5
C) 5-10
D) Over 10
11 © 2012 IBM Corporation

12. Our fit-for-purpose analytics helped a leading Virtualization and
standardization
financial company simplify and standardize its
heterogeneous server infrastructure.
Challenge Fit-for-purpose analytics*
Workload placement – Oracle
 Lack of standardization, with over 200
Platform Platform Platform
operating system variations
1 2 12
 Greater effort to manage over 130 types VMware Microsoft
Workload IBM AIX®
of servers and 12 platforms on Power®
Windows … Windows
attributes on x86 on x86
 Increasing operational costs ISV1 support 31 18 20
Performance 40 17 21
Benefits
Scalability 38 15 18
 66% fewer platforms (from 12 to 4) SW 2 licenses 39 20 13
…
…
…
…
 90% fewer servers (from 813 to 81)
Energy
 45% reduction in operating consumption
31 19 9
expenses (US$10M to US$5M)
Overall score 247 170 … 138
Five-year TCO3 US$13M US$31M US$38M
*Fit-for-purpose analytics is IBM’s patent-pending objective analysis tool designed
Five-year
US$25M US$7 US$0
to identify the best-fit platform (hardware and operating system) for selected savings
workloads by modeling business and technical requirements.
1Independent software vendor (ISV); 2Software (SW); 3Total cost of ownership (TCO) Recommend Invest Divest … Divest
12 © 2012 IBM Corporation

13. Leaders use automation and self-service Automation
portal to manage availability and speed of
providing services.
Automation
81%
Strategic
58% Basic
26% 32%
1% 4%
Move virtual machines (VMs) Move VMs based on Self-service
across servers service level agreements provisioning portal
Over 30% of leaders have implemented self-service portals to provision virtual machines,
with 80% of leaders planning them by 2013 to support cloud computing.
Source: IBM Global Data Center Study (2012 April)
13 © 2012 IBM Corporation

14. IBM provides knowledge and best practices Automation
to better manage virtual infrastructure using
advanced analytics.
Challenge
Define workload policies
 Struggle to manage complex virtualized and best practices
infrastructure and meet service level
agreements (SLA) targets
 High operational cost
Advanced workload analysis
 Define standards-based policies to model IT
and user requirements  Discover
 Assess
Benefits
 Model
 Provides immediate and actionable
recommendations for optimizing
virtual infrastructure
Real-time monitoring console
 Reduces virtual machine sprawl significantly
 Visualize workload
 Reduces under- and over-provisioning
performance
of virtualized servers
 Get control with
prescription actions
 Automate
1Based on previous select IBM client engagements; individual client results vary.
14 © 2012 IBM Corporation

15. IBM can create a self-service portal that helps Automation
enable greater flexibility and responsiveness to
your business needs.
Challenge
Provisioning
 Complexity of managing a dynamic Automate provisioning
virtualized infrastructure resulting in of resources
increased operational cost
 Slow response to fast-changing
business needs
Benefits Metering and rating
Track usage of resources
 Enabled a self-service delivery model that
streamlined IT systems management
 Reduced provisioning time from days to
hours1 with automated provisioning and
configuration
Workflow
Manage the process
 Improved human and technology for approval of usage
resource productivity
 Helped reduce IT operational cost
1 Basedon a select IBM client engagement; Individual results will vary
View an IBM Video about automating processes with IBM virtualization.
15 © 2012 IBM Corporation

16. Leaders are faster to adopt the latest technology Have a plan
and have a backup plan in the event of disaster.
Fast to adopt new technology Backup plan
100%
86%
75%
62% Strategic
57%
43% Basic
27%
9%
First and fast Refresh technology Plan to implement DC have a backup or
technology adoption within 12-23 months converged secondary site for
infrastructure disaster
Leaders value faster migration of workloads to new technology and integration into
existing service management processes.
Source: IBM Global Data Center Study (2012 April)
16 © 2012 IBM Corporation

17. We can help you enable virtualization and cloud Have a plan
leveraging the latest technology with integrated
systems for faster ROI1.
Implementation
Expert integrated systems:  System configuration of server, storage,
Systems with integrated expertise networking
that combine the flexibility of a general  Configure system management software,
Flexible System Manager (FSM)
purpose system, the elasticity of cloud
 Knowledge transfer
and the simplicity of an appliance
Virtualization enablement
 Provision of virtual servers
Potential benefits  Configure vCenter
 Populate virtual appliances
 Optimize new technology features and  Deploy virtual workloads
 Knowledge transfer
performance with expert implementation
 Accelerate time to value and reduce
IBM SmartCloud Entry enablement
downtime during the transition with  Configure self-service portal for workload
repeatable methodology provisioning
 Deploy virtualized image management
 Reduce transition cost by knowledge
 Set up metering tools for resource usage
transfer for tools monitoring
 Knowledge transfer
1Return on investment (ROI)
17 © 2012 IBM Corporation

18. IBM SmartCloud Virtualized Server Recovery Have a plan
helps ensure more reliable and efficient recovery
of your virtualized application.
This service can help you:
Reduce the risk of failure to Enable more predictable
Achieve shorter
recover and avoid the need for costs through a fully
recovery time and IBM SmartCloud
travel through remote access managed subscription
point objectives Archive
self-management tools service model
Potential benefits:
 Easier to recover to unlike hardware with reliability
 Shortens recovery time objective (RTO) and
recovery point objective (RPO)
 Avoids need to travel to recovery site
 Provides virtual machines for server failover Dedicated Shared Virtualized
18 © 2012 IBM Corporation

19. IBM can help you in these three critical areas:
 We can help you virtualize and manage your complex
workloads with improved cost savings by leveraging our
Virtualization and advanced analytics and automation capabilities.
Standardization  Our server virtualization and cloud computing solutions help
you free-up under-utilized capacity.
 We create self-service portals through automated provisioning
for faster access to server resources.
 We can integrate capacity management tools to help maintain
Automation higher levels of optimization and reduce virtual machine sprawl.
 We can help create a business-oriented, storage infrastructure
with standardized processes and automated data movement to
enhance operational efficiency and reduce risk.
 We can help you to accelerate adopting new technology and
Have a plan and provide you a cloud-based recovery solution.
keep it current  Avoid the need for travel with remote access, self-
management tools
19 © 2012 IBM Corporation

20. …or we can work with you to build a detailed business case to show
potential cost savings to justify your investment
ANCHOR financial analysis (sample)
Cumulative estimated cost savings over five years
Cost (US M$)
40 US$37M
35
30
43 percent reduction
25
US$21M
20
15
10
5
0
Current Proposed
One Time Cost System Management Hardware Maintenance Facility Power & Cooling
IBM’s ANCHOR financial analysis tool is used to model investment scenarios to find the optimum approach to help meet your financial, business and technical requirements.
20 © 2012 IBM Corporation

21. … and determine the next steps to transform your infrastructure.
Tell us about your business and IT objectives and
together we can determine the best approach to
transform your infrastructure
Have us perform a quick return-on-investment analysis for a segment of
your infrastructure to present to you potential cost savings
Assemble information from your experts to help define the
scope of the project
 Document the inventory of assets for consolidation and virtualization
 Define the critical application availability requirements and
dependencies
Perform a short-term virtualization efficiency
study to determine the health and performance
of your current virtualized infrastructure
21 © 2012 IBM Corporation

22. IT executives realize they need to use outside tools, technologies
and assistance.
77%
of IT managers
planning
transformational
projects will turn to
outside help
Register for the data center
study paper
ibm.com/data-center/study
Source: IBM Global Data Center Study (2012 April)
22 © 2012 IBM Corporation

23. IBM solutions can help you achieve your IT infrastructure and
business goals.
 Expertise gained from managing more than 200,000 servers for companies worldwide
 More than 8,000 infrastructure professionals from all aspects of IT management
 IBM’s server leadership - Multiple platforms and operating systems
 IBM’s extensive experience in IT project management in heterogeneous environments
 We can help you consolidate from mixed platforms to IBM hardware
 Ability to provide remotely delivered services and related cost savings
 Many infrastructure service activities can be provided remotely through IBM’s global resources,
helping reduce costs and speed deployment
 More than 50 years of business continuity and disaster recovery experience, with over 9,000 disaster
recovery clients
 IBM’s cloud leadership
– 19 million public cloud users
– More than US $1 billion in planned cloud data center investments
Thank you
23 © 2012 IBM Corporation

24. Questions?
Please submit your questions now
Matthew Eastwood
Group Vice President and General Manager
Enterprise Platforms
IDC
Shaown Nandi
Senior Manager, IBM Server and Middleware Services
IBM Global Technology Services

25. Resources
To view this or other events on demand, please visit:
http://www.theitservicessite.com/webinar_archives.asp
For more information, please visit:
www.theitservicessite.com
IBM Server optimization and integration
IBM Data Center Study
http://www.ibm.com/data-center/study
IBM Smarter Data Center
http://www.ibm.com/services/smarterdatacenter

26. Thank you for attending!