Acquisition cost of server virtualization

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Acquisition cost of server virtualization
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VMware Cost Per Application Calculator -
Objectives

• Introduce a metric to accurately estimate and
  compare acquisition cost of a virtualization
  solution
• VMware calls such metric Cost Per Application
• Focus on easily quantifiable cost items, not
  indirect savings coming from things like improved
  productivity or operational efficiency
• Present a cost comparison between VMware and
  Microsoft using cost per application
• Respond to customers question How can we
  compare the actual acquisition cost of
  virtualization without having to rely only on
  software licenses?
• Present results that account for VMwares ability
  to run at higher VM density, but also present a
  sensitivity analysis on this critical variable
• With this first version of the calculator we
  focus on a comparison Microsoft, however the
  methodology can be applied to any other
  virtualization solutions

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Why virtualization software price alone is not a
good measure of upfront cost?

• Does not account for VM density (i.e. number of
  applications that can be run on a virtualization
  host)
• VM density determines the cost of hardware
  infrastructure (server, networking, storage,
  power, cooling, real estate) to virtualize apps
  the higher the density, the lower the
  infrastructure cost
• Depending on the vendor, VM density can also
  affect the cost of software licenses for guest OS
  for example the lower the number of
  virtualization hosts, the lower the cost of
  Windows Server licenses
• Not all virtualization solutions are the same
  when it comes to VM density capabilities.
  VMwares technology allows to achieve higher VM
  density than other solutions (even 2x)
• Does not account for virtualization management
  software cost
• Hypervisors are free (or almost), but management
  solutions are not!
• Management solutions can be made up by multiple
  components of one or more vendors each with a its
  own price
• Management software requires its hardware,
  operating system and database all these items
  are not free!

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What should be factored in acquisition cost?
Management

• Management software
• Management servers and other infrastructure cost
• Databases software and servers

• Licenses for virtualization software

• Licenses for Virtual machines operating system

• Servers
• Networking
• Storage
• Electricity
• Datacenter space

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Cost-per-Application - Definition



Divided by
Number of Apps Virtualized

Cost-Per-Application
An accurate metric for virtual environments
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Cost to Virtualize 100 Applications

• VMware ESX vCenter Update Manager
• Microsoft Hyper-V System Center (OM, CM, VMM)
• 100 Applications ? 100 VMs
• Mid-range server as host 8000 each
• 2P Quad-cores, 32GB RAM, 4-port NIC, HBA,
• Windows Server 2008 Datacenter Edition
• Lower-end server as management server 4000
  each
• Windows Server 2008 Standard Edition
• 3 Scenarios at different VM densities

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VMware Infrastructure 3 Enterprise Edition(at
average of 50 more VMs than MS)
Cost to deploy 100 VMs
VMware is 13 less,and has more functionality!
Basic Single Server Partitioning
1st gen Microsoft Hyper-V
High Availability(failover individual VMs)
MSCS, but must failover all VMs on a LUN
?
380,738(with 2 yrs SA)
329,856 (with 2 yrs support)
At a 50 higher consolidation ratio VMware
Infrastructure 3 is 13 less expensive than
Microsofts offering and offers many more
functionalities
Memory Overcommit(higher VM density per host)
Not available
27,548Management SW
13,089Management SW
Ultra-thin virtualization footprint(better
reliability, security)
Server Core still gt2GB
80,973Windows Server DataCenter Ed.
50,548VI3 Ent Lic. SnS
Patching of Offline VMs
No out-of-box support in SCCM
53,982Windows Server DataCenter Ed.
Clustered FS (enables VM restart migration
indpnt of LUN mapping)
NTFS
20,837Network, Power, Space
Quick Migration not live, migrates all VMs on a
LUN
Live VM Migration (server to serer)
134,500Storage
127,000Storage
Live VM Migration (disk to disk)
Not available
105,800Server HW
64,400Server HW
Zero VM Downtime Host Patching
Host patching has VM downtime
VMware VI3 Enterprise 3299 per App
MicrosoftHyper-V 3807 per App
Dynamic Load Balancing
Only initial VM placement
Dynamic Power Management
No cluster-level power mgmt
181 average consolidation ratio
121 average consolidation ratio
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VMware Density Advantage

• Memory Oversubscription
• More efficient use of physical RAM by reclaiming
  unused physical memory and consolidating
  identical memory pages among VMs on a host.
• Direct Driver Model
• VMware ESX can achieve very high I/O throughput
  and can handle the I/O requirements for more VMs
  simultaneously requesting hardware resources.
• Support for Large Memory Pages and Nested Page
  Tables
• Optimize memory access and can provide
  substantial performance benefits for mission
  critical, memory-intensive applications, can
  reduce CPU resource consumption by up to 15
• DRS with Resource Pools
• Dynamically load balance VMs across a cluster so
  applications get required resources when they
  need them -a safety net that lets
  administrators run individual servers at higher
  utilization levels while meeting service level
  agreements
• High Performance Gang Scheduler
• Can account for CPU and I/O needs of virtual
  machines by dynamically allocating more resources
  and larger processor timeslices to VMs

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VMware Infrastructure 3 Enterprise Edition(at
same average consolidation ratio as MS)
Cost to deploy 100 VMs
VMware is only 11 more expensive, but has many
more features!
Basic Single Server Partitioning
1st gen Microsoft Hyper-V
423,721 (with 2 yrs SnS)
High Availability(failover individual VMs)
MSCS, but must failover all VMs on a LUN
?
Even at same consolidation ratio, VMware is only
marginally more Microsoft is nowhere close to
being 1/3 the cost of VMware And, look at the
difference in capabilities
380,738(with 2 yrs SA)
13,089Management SW
Memory Overcommit(higher VM density per host)
Not available
27,458Management SW
75,882VI3 Ent Lic. SnS
Ultra-thin virtualization footprint(better
reliability, security)
Server Core still gt2GB
80.973Windows Server DataCenter Ed.
80,973Windows Server DataCenter Ed.
Patching of Offline VMs
No out-of-box support in SCCM
Clustered FS (enables VM restart migration
indpnt of LUN mapping)
NTFS
Quick Migration not live, migrates all VMs on a
LUN
Live VM Migration (server to serer)
134,500Storage
134,500Storage
Live VM Migration (disk to disk)
Not available
105,800Server HW
92,000Server HW
Zero VM Downtime Host Patching
Host patching has VM downtime
VMware VI3 Enterprise 4273 per App
MicrosoftHyper-V 3807 per App
Dynamic Load Balancing
Only initial VM placement
Dynamic Power Management
No cluster-level power mgmt
121 average consolidation ratio
121 average consolidation ratio
10
VMware Infrastructure 3 Enterprise Edition(at
just 1 more VMs than MS)
Cost to deploy 100 VMs
VMware is at cost parity with many more features!
Basic Single Server Partitioning
1st gen Microsoft Hyper-V
The fully featured VI 3 Enterprise Edition is at
cost parity with only 1 additional VM per VMware
host Real life deployments show that VMware hosts
can achieve even 2x the VM density of Hyper-V
hosts
High Availability(failover individual VMs)
MSCS, but must failover all VMs on a LUN
?
389,766 (with 2 yrs support)
380,738(with 2 yrs SA)
Memory Overcommit(higher VM density per host)
Not available
13,089Management SW
27,548Management SW
Ultra-thin virtualization footprint(better
reliability, security)
67,397VI3 Ent Lic. SnS
Server Core still gt2GB
80,973Windows Server DataCenter Ed.
71,976Windows Server DataCenter Ed.
Patching of Offline VMs
No out-of-box support in SCCM
Clustered FS (enables VM restart migration
indpnt of LUN mapping)
NTFS
Quick Migration not live, migrates all VMs on a
LUN
Live VM Migration (server to serer)
134,500Storage
132,000Storage
Live VM Migration (disk to disk)
Not available
105,800Server HW
82,800Server HW
Zero VM Downtime Host Patching
Host patching has VM downtime
VMware VI3 Enterprise 3898 per App
MicrosoftHyper-V 3807 per App
Dynamic Load Balancing
Only initial VM placement
Dynamic Power Management
No cluster-level power mgmt
131 average consolidation ratio
121 average consolidation ratio
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Announcing the VMware Cost-per-App Calculator

• Customers enter inputs according to their IT
  environment
• Factors in costs of virtualization SW, hardware,
  storage, networking, management SW, guest OSs
• Shows VMware cost (vs. others) at a realistic and
  conservative VM density levels

www.vmware.com/go/costperappcalc
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Cost-Per-Application is not a full TCO analysis

• TCO is always the optimal methodology to evaluate
  a software investment with a complete the
  cost/savings analysis
• TCO can be difficult and resource consuming to
  build
• Competitive comparisons might become more complex
  as feature parity is almost never possible
• Cost Per Application provides is a simplified yet
  accurate metric to evaluate upfront costs only
• Does not include estimate on opex savings (for
  example increased productivity)
• Does not include multi year view
• Does not include depreciation and amortization of
  equipment
• Assumes a green field deployment no reuse of
  equipment or other existing assets such as
  software
• For a complete TCO analysis of VMwares solutions
  use VMware ROI/TCO calculator http//www.vmware.co
  m/products/vi/calculator.html

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Back up System Center Deployment
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How to estimate cost of virtualization and
management software - Microsoft

• Virtualization software is licensed with Windows
  Server 2008. No extra charge
• System Center requires licensing of the managed
  hosts and of the management servers
• Managed host licensing ?1 SMSE license per
  managed host
• SMSE license (per managed host) 1,497 (w/ 2 yrs
  SA)
• Management server licenses
• SC Virtual Machine Manager per management server
  included in SMSE
• SC Configuration Manager per management server
  1,321 (w/SQL) or 579 (w/o SQL) must add 50
  for SA
• SC Operations Manager w/SQL per management server
  1,321 (w/SQL) or 579 (w/o SQL) must add 50
  for SA
• Add cost of OS for management server, OS for DB
  server and SQL server license

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System Center Deployment - Summary
Source Microsoft TechNet
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To manage 100 VMs, MS System Center requires at
least 5 physical servers
SCVMM client
SCOM client
SCCM client
SC Ops MgrRoot MgmtServer
SC Conf MgrManagement Server
SC VM MgrManagement Server
1st Server
2nd Server
3rd Server
plus SCVMM Library Server
SCVMM DB
SCOM DB reporting server
Library DB
SCCM DB
SCOMManagement Server
Note MS recommends separate VMM server, VMM
Library, and VMM DB for gt20 hosts
Hyper-V Manager client
4th Server
5th Server
Source Microsoft TechNet
Hyper-V hosts with SMSE licenses
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System Center Essential 2007

• With Essentials 2007, you can manage up to 30
  Windows-based servers (not including the
  Essentials server) and 500 Windows-based clients.
  Essentials 2007 will not track or limit the
  number of SNMP-capable network devices you want
  to manage, however performance parameters may
  limit you to approximately 75 network devices.
• Essentials 2007 is technically limited to
  management of 30 Windows-based server OSEs and
  500 Windows-based PC OSEs. The Essentials 2007
  product (and Essentials 2007 product with SQL
  Server 2005 Technology) comes with the MLs to
  manage 10 server OSEs and 50 PC OSEs. Additional
  Server MLs can be purchased as a single license
  or in a 5-pack, and additional Client MLs in a
  5-pack or 20-pack.

To license 30 VMs 1 Essential 2007 license (10
ML included) 20 additional single ML licenses
(no difference in price from 5 or 20 pack)
Source http//www.microsoft.com/Systemcenter/esse
ntials/en/us/pricing-licensing.aspx
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SC Operations Manager 2007

• Single Server, Single Management Group Scenario
• This configuration is most commonly used for
  evaluation, testing, and Management Pack
  development purposes, usually in nonproduction or
  preproduction environments. Single server, single
  management group configurations generally lack
  the robustness and performance to support
  anything but the smallest production loads.
• Multiple Server, Single Management Group Scenario
• This type of management group installation will
  form the foundation of 99 percent of Operations
  Manager deployments. It allows for the
  distribution of server roles and services across
  multiple servers to allow for scalability and for
  the use of Windows failover clustering and
  Operations Manager-specific failover
  configurations. It can include all Operations
  Manager server roles and supports the monitoring
  of devices across trust boundaries through the
  use of the gateway server.

Source Microsoft TechNet (http//technet.microsof
t.com/en-us/library/bb432139.aspx,
http//technet.microsoft.com/en-us/library/bb43213
2.aspx)
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SCOM 07 Multiple Servers, Single Mgmt. Group
1 Physical Server
1 Physical Server
1 Physical Server
The larger the environment the more Management
Server must be added to scale SCOM
At last 1 Physical Server
Source Microsoft TechNet (http//technet.microsof
t.com/en-us/library/bb432139.aspx,
http//technet.microsoft.com/en-us/library/bb4321
32.aspx)
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SC Configuration Manager 2007

• SCCM 2007 Required components
• Configuration Manager 2007 primary sites require
  access to a SQL Server database to host the site
  database. The site database can be hosted on a
  SQL Server instance installed on the same server
  as the primary site, on a remote computer, or on
  a virtual SQL Server cluster instance.
• Install Configuration Manager and SQL Server on
  the same computerInstalling SQL Server and
  Configuration Manager 2007 on the same computer
  might seem to violate the idea of role separation
  to increase availability, but it is not a
  significant security concern. If either the
  Configuration Manager 2007 site database or the
  site server go offline, the other server is
  virtually useless. Installing Configuration
  Manager 2007 and SQL Server on the same computer
  simplifies SQL Server configuration and thus
  reduces the risk of making security-related
  mistakes.

Source Microsoft TechNet (http//technet.microsof
t.com/en-us/library/bb694113.aspx
, http//technet.microsoft.com/en-us/library/bb694
127.aspx)
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SC Virtual Machine Manager 2008

• SCVMM Required components
• Every VMM implementation requires implementation
  of the following components
• VMM server and default library server
• VMM database
• VMM Administrator Console
• Virtual machine host
• You can install all required VMM components on a
  single computer. However, that computer must be
  properly sized and this configuration should not
  be used to manage more than 20 hosts. This
  configuration can also be useful for
  demonstration purposes. . If you plan to
  manage over 20 hosts, it is recommended that you
  implement a distributed VMM environment, where
  the VMM server, database, library server, and
  hosts are all implemented on separate computers.

Source Microsoft TechNet (http//technet.microsof
t.com/en-us/library/cc764267.aspx)
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To manage 100 VM, VMware vCenter requires 2
physical servers
VMware Infrastructure Client
vCenter Management Server
2nd Server
1st Server
vCenter VUM DB
Managed ESX Hosts