vmware roitco_analysis

VMware ROI TCO Calculator Analysis Name: Report - Shared

January 08, 2013

Server Opening Questions

Server Opening Questions: Key Assumptions

Server Virtualization Savings On Server Hardware

Analysis Time Period

Number of Years (max 10 years) 5

Start Year 2013

End Year 2017

Start of 2013: Physical Servers (before virtualization)

CPU's / Server Cores / CPU Number of Workloads

Number of Servers

Avg Price / Server

Define Configuration of Physical Servers 1 1 200 400 $ 3,000

(server costs excluding HBA's and TOE cards) $

$

$

$

Number of Unvirtualized Workloads & Servers

200 400

If 100% virtualized, what kinds of servers would host VM's?

CPU's / Server Cores / CPU Number of Workloads

Number of Servers

Avg Price / Server

Define Configuration of Host Servers 2 4 200 17 $ 10,000

(server costs excluding HBA's and TOE cards) $

$

$

$

Number of Virtual Machines & Host Servers 200 17

Current Consolidation Ratio (Workloads / Server)

12:1

Maximum Consolidation Ratio (Workloads / Server)

12:1

Assumes all host servers are new purchases, and existing servers are fully depreciated and retired as infrastructure transitions

Based on Average Number of Virtual Machines (VM's) per physical Core of: 1.50

Are servers leased? No

(if yes, average price per server represents annual leasing cost)

Savings on Server Hardware Start 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total

A) Extension of Unvirtualized Environment

Number of Workloads 200 210 221 233 245 258 0 0 0 0 0 258

Number of Servers 400 420 442 466 490 516 0 0 0 0 0 516

Servers retired 0 -400 0 0 -20 0 0 0 0 0 -420

Servers purchased for workload growth & refresh 20 422 24 24 46 0 0 0 0 0 536

Cash Expenditure (avg $ 3.0K per server) $ 60,000

$ 1,266,000 $ 72,000

$ 72,000

$ 138,000 $ 0 $ 0 $ 0 $ 0 $ 0

$ 1,608,000

B) Transition to Virtualized Environment

Virtualization Schedule (% workloads virtualized) 30% 50% 100% 100% 100%100%

100%

100%

100%

100%

Number of VM's

Virtualized Workloads 63 111 233 245 258 0 0 0 0 0 258

vCenter Server 1 1 1 1 1 0 0 0 0 0 1

vCenter Server Database 1 1 1 1 1 0 0 0 0 0 1

Total 65 113 235 247 260 0 0 0 0 0 260

Number of Host Servers (12:1) 6 10 20 21 22 0 0 0 0 0 22

Servers retired 0 0 0 0 -6 0 0 0 0 0 -6

Server Virtulization

VMware ROI TCO Calculator 2

Server Virtualization Savings On Server Hardware: Key Assumptions


Cash Expenditure (avg $ 10.0K per server) $ 60,000 $ 40,000

$ 100,000

$ 10,000 $ 70,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 280,000

Remaining Unvirtualized Workloads 200 147 110 0 0 0 0 0 0 0 0 0

Remaining Unvirtualized Servers 400 147 110 0 0 0 0 0 0 0 0 0

Servers retired 0 -400 0 0 0 0 0 0 0 0 -400


Cash Expenditure (avg $ 3.0K per server) $ 0 $ 330,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 330,000

Server Hardware Savings (A-B) $ 0 $ 896,000 $ -28,000$

62,000 $ 68,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 998,000

Annual growth in workloads: 5%

Unvirtualized Server Refresh

Simple: define aggregated refresh cycles nmlkji

Existing unvirtualized servers useful life (yrs): 4

Average age of existing servers (yrs)? 3

New host servers useful life (yrs): 4

Advanced: define servers retired for each year and category nmlkj

Additional Advanced Functionality:

Define non-linear growth for workloads? No (Manually adjust count of workloads)

Define changing consolidation ratios? No (Manually adjust count of host servers)

Define number of vCenter Server instances? No (Manually adjust number of vCenter Server + DB instances)



Savings on Server Power & Cooling

Savings on Server Power & Cooling: Key Assumptions

Server Impact On Server Storage

Savings on Server Power & Cooling 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total


Number of Servers 420 442 466 490 516 0 0 0 0 0 516

Power: Operating (kWatt hours) 825,552 868,795 915,970 963,144 1,014,250 0 0 0 0 0 4,587,710

Power: Cooling (kWatt hours) 1,073,218 1,129,434 1,190,760 1,252,087 1,318,524 0 0 0 0 0 5,964,024

Power: Rate (per kWatt hour) $ 0.100 $ 0.103 $ 0.105 $ 0.108 $ 0.110 $ 0.113 $ 0.116 $ 0.119 $ 0.122 $ 0.125 $ 0.105

Power & Cooling Expense $ 189,877 $ 204,818 $ 221,338 $ 238,556 $ 257,495 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,112,085


Number of Servers 153 120 20 21 22 0 0 0 0 0 22

Power: Operating (kWatt hours) 313,513 257,166 81,900 85,995 90,090 0 0 0 0 0 828,664

Power: Cooling (kWatt hours) 407,567 334,316 106,470 111,794 117,117 0 0 0 0 0 1,077,263

Power: Rate (per kWatt hour) $ 0.100 $ 0.103 $ 0.105 $ 0.108 $ 0.110 $ 0.113 $ 0.116 $ 0.119 $ 0.122 $ 0.125 $ 0.103

Power & Cooling Expense $ 72,108 $ 60,627 $ 19,791 $ 21,300 $ 22,872 $ 0 $ 0 $ 0 $ 0 $ 0 $ 196,697

Server Power & Cooling Savings (A-B) $ 117,769 $ 144,192 $ 201,548 $ 217,257 $ 234,623 $ 0 $ 0 $ 0 $ 0 $ 0 $ 915,388

Servers Weeks Days/Week Hours/Day Avg operating power (kW) per server:

Hours of Operation = 52 x 7 x 24 Existing - unvirtualized 0.225

New - virtualized

(75% of nameplate rating) 0.469

Hours of Operation per Year 8,736

Multiple of Operating Power required for Cooling 1.3 x

Annual growth rate of electricity rate 2.5 %

Manually adjust cost per kWatt hour each year? No

Impact on Server Storage Start 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total

A) Extension of Unvirtualized Environment (25% of servers attached to shared storage)

Number of FC SAN HBA's 100 105 111 117 123 129 0 0 0 0 0 129

HBA's retired 0 -100 0 0 -5 0 0 0 0 0 -105

HBA's purchased 5 106 6 6 11 0 0 0 0 0 134

Cash Expenditure $ 6,000 $ 127,200 $ 7,200 $ 7,200 $ 13,200 $ 0 $ 0 $ 0 $ 0 $ 0 $ 160,800

Number of FC SAN Switches 10 10 10 10 12 12 0 0 0 0 0 12

FC SAN Switches retired 0 -10 0 0 0 0 0 0 0 0 -10

FC SAN Switches purchased 0 10 0 2 0 0 0 0 0 0 12

Cash Expenditure $ 0 $ 55,000 $ 0 $ 11,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 66,000

Number of iSCSI SAN TOE Cards 0 0 0 0 0 0 0 0 0 0 0 0

iSCSI SAN TOE Cards retired 0 0 0 0 0 0 0 0 0 0 0

iSCSI SAN TOE Cards purchased 0 0 0 0 0 0 0 0 0 0 0

Cash Expenditure $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Amount of Storage (GB)

Direct Attached Storage (DAS) 15,000 15,750 16,575 17,475 18,375 19,350 0 0 0 0 0 19,350

SAN / NAS shared storage 5,000 5,250 5,525 5,825 6,125 6,450 0 0 0 0 0 6,450



Server Impact On Server Storage: Key Assumptions

Direct Attached Storage (DAS) retired 0 -15,000 0 0 -750 0 0 0 0 0 -15,750

SAN / NAS shared storage retired 0 -5,000 0 0 -250 0 0 0 0 0 -5,250

Direct Attached Storage (DAS) purchased 750 15,825 900 900 1,725 0 0 0 0 0 20,100

SAN / NAS shared storage purchased 250 5,275 300 300 575 0 0 0 0 0 6,700


Total Cash Expenditure: Unvirtualized $ 8,375 $ 232,313 $ 10,050 $ 21,050 $ 18,663 $ 0 $ 0 $ 0 $ 0 $ 0 $ 290,450

B) Transition to Virtualized Environment (100% of servers attached to shared storage)

Number of FC SAN HBA's 100 86 76 40 42 44 0 0 0 0 0 44

HBA's retired 0 -100 0 0 0 0 0 0 0 0 -100

HBA's purchased 0 76 0 2 2 0 0 0 0 0 80

Cash Expenditure $ 0 $ 91,200 $ 0 $ 2,400 $ 2,400 $ 0 $ 0 $ 0 $ 0 $ 0 $ 96,000

Number of FC SAN Switches 10 4 4 2 2 2 0 0 0 0 0 2

FC SAN Switches retired 0 -10 0 0 0 0 0 0 0 0 -10

FC SAN Switches purchased 0 4 0 0 0 0 0 0 0 0 4

Cash Expenditure $ 0 $ 22,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 22,000

Number of iSCSI SAN TOE Cards 0 0 0 0 0 0 0 0 0 0 0 0

iSCSI SAN TOE Cards retired 0 0 0 0 0 0 0 0 0 0 0

iSCSI SAN TOE Cards purchased 0 0 0 0 0 0 0 0 0 0 0

Cash Expenditure $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Amount of Storage (GB)

Direct Attached Storage (DAS) 15,000 11,025 8,250 0 0 0 0 0 0 0 0 0

SAN / NAS shared storage 5,000 10,988 15,463 26,438 27,788 29,250 0 0 0 0 0 29,250

Direct Attached Storage (DAS) retired 0 -15,000 0 0 0 0 0 0 0 0 -15,000

SAN / NAS shared storage retired 0 -5,000 0 0 -5,988 0 0 0 0 0 -10,988

Direct Attached Storage (DAS) purchased 0 8,250 0 0 0 0 0 0 0 0 8,250

SAN / NAS shared storage purchased 5,988 9,475 10,975 1,350 7,450 0 0 0 0 0 35,238


Total Cash Expenditure: Transition to Virtualized $ 29,938 $ 172,950 $ 54,875 $ 9,150 $ 39,650 $ 0 $ 0 $ 0 $ 0 $ 0 $ 306,563

Server Storage Impact (A-B) $ -21,563 $ 59,363 $ -44,825 $ 11,900 $ -20,988 $ 0 $ 0 $ 0 $ 0 $ 0 $ -16,113

Key features in vSphere such as High Availability and vMotion are enabled by shared storage between hosts. For customers who will not be implementing

physical a shared storage solution, a new software solution from VMware, the vSphere Storage Appliance (VSA), transforms cheaper internal host storage

(up to 3 hosts) into a single shared storage resource.

Ideal for customers planning to virtualize smaller environments with vSphere Essentials+.

Virtualize storage with vSphere Storage Appliance? No

Shared Storage

Do you currently have shared storage? Yes

% of shared storage by type

Choose a shared storage technology: Select (total must = 100%) Percentage of servers attached to

Fibre Channel SAN gfedcb needs HBA & SAN Switch 100% shared storage:

iSCSI SAN gfedc Existing - unvirtualized 25%

NAS (NFS) gfedc New - virtualized 100%



Server Virtualization Savings On Server Networking

Server Virtualization Savings On Server Networking: Key Assumptions

Server Virtualization Savings On Server RackSpace

SAN Storage

HBA's per server 2 Cost per FC SAN HBA $ 1,200

Useful life (yrs) 4

Avg age of existing equip (yrs) 3

Number of ports per FC SAN Switch 24 Cost per FC SAN Switch $ 5,500

SAN Switch redundancy: 2x Useful life (yrs) 4

Avg age of existing equip (yrs) 3

Average storage per workload (GB)

Existing - unvirtualized 100 Cost DAS per GB $ 1.50

New - virtualized (+50GB) 150 Cost SAN or NAS per GB $ 5.00

Reduction due to Thin Provisioning 25% Useful life (yrs) 4

Savings on Server Networking Start 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total


Number of Network Switches 67 70 74 78 82 86 0 0 0 0 0 86

Switches retired 0 -67 0 0 -3 0 0 0 0 0 -70

Switches purchased 3 71 4 4 7 0 0 0 0 0 89



Number of Network Switches 67 26 20 4 4 4 0 0 0 0 0 4

Switches retired 0 -67 0 0 0 0 0 0 0 0 -67

Switches purchased 0 20 0 0 0 0 0 0 0 0 20

Cash Expenditure $ 0 $ 80,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 80,000

Server Networking Savings (A-B) $ 12,000 $ 204,000 $ 16,000 $ 16,000 $ 28,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 276,000

NIC's + TOE cards per

Server2

Cost per Network

Switch$ 4,000

Ports per NIC / TOE card 2 Useful life (yrs) 4

Ports per Network Switch 24Avg age of existing

equip?3

Savings on Server Rack Space 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total


Rack space required (Square Feet) 70 77 84 84 91 0 0 0 0 0 91

Annual expense $ 84,000 $ 92,400 $ 100,800 $ 100,800 $ 109,200 $ 0 $ 0 $ 0 $ 0 $ 0 $ 487,200


Rack space required (Square Feet) 28 28 7 7 14 0 0 0 0 0 14

Annual expense $ 33,600 $ 33,600 $ 8,400 $ 8,400 $ 16,800 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100,800

Server Rack Space Expense Savings (A-B) $ 50,400 $ 58,800 $ 92,400 $ 92,400 $ 92,400 $ 0 $ 0 $ 0 $ 0 $ 0 $ 386,400



Server Virtualization Savings On Server RackSpace: Key Assumptions

Server Product Selection Editions

Include value of server rack space savings? Yes

Calculate space in Square Feet or Square Meters? Square Feet

Average server size (U's, please include any in-rack spacing)

Existing - unvirtualized 1.0 Square Feet required per rack 7.0

New - virtualized 2.0 Annual cost per Square Foot $ 1,200

Average rack size (U's) 42.0

You already know what you want

Select your edition of vSphere: Standard

Advanced Features included:

High Availability gfedcb

vMotion gfedcb

Data Recovery gfedcb

Hot Add gfedc

Fault Tolerance gfedc

vShield Zones gfedc

vSerial Port Concentrator gfedc

Storage vMotion gfedc

Distributed Resource Scheduler (DRS) + Distributed Power Mgmt (DPM) gfedc

Third Party Multipathing gfedc

vStorage API's for Array Integration gfedc

I/O Control gfedc

vNetwork Distributed Switch gfedc

Host Profiles gfedc

Auto Deploy gfedc

Storage Distributed Resource Scheduler + Profile-Driven Storage gfedc

Average configured vRAM of running VM's (GB's): 2.00

Select your edition of vCenter Server: Standard

Advanced Features included:

Manage more than 3 vSphere hosts per vCenter Server instance gfedcb

Linked Mode gfedcb

Orchestrator gfedcb



http://www.vmware.com/products/high-availability/overview.html

http://www.vmware.com/products/vmotion/overview.html

http://www.vmware.com/products/fault-tolerance/overview.html

http://www.vmware.com/products/fault-tolerance/overview.html

http://www.vmware.com/products/vshield-zones/overview.html

http://communities.vmware.com/message/1802880#1802880

http://www.vmware.com/products/storage-vmotion/overview.html

http://www.vmware.com/products/drs/overview.html

http://www.vmware.com/products/vstorage-apis-for-array-integration/overview.html

http://www.vmware.com/products/vnetwork-distributed-switch/overview.html

http://www.youtube.com/watch?v=aDJi87tNhIE

http://www.youtube.com/watch?v=G2qZl-760yU

http://www.vmware.com/products/datacenter-virtualization/vsphere/vsphere-storage-drs/features.html

http://www.vmware.com/products/datacenter-virtualization/vsphere/profile-driven-storage/overview.html

Server Product Selection Editions: Key Assumptions

Investment in VMware Software & Support (Over 5 Years: 260 Workloads on 22 Host Servers)

vSphere Edition: Standard

Price per Unit (License + Subscription & Support): $ 1,318 Support & Subscription: Production Discounts? No

x Req'd Number of Units: 44 Years of SnS: 1

Total vSphere License + Subscription & Support [1 yr(s)]: $ 57,992 SnS Cost per Year $ 1,822

vCenter Server Edition: Standard

Price per Unit (License + Subscription & Support): $ 6,244 Support & Subscription: Production Discounts? No

x Req'd Number of Units: 1 Years of SnS: 1

Total vCenter License + Subscription & Support [1 yr(s)]: $ 6,244 SnS Cost per Year $ 1,249

Total License & Support: $ 64,236

OR

Select to enter known costs gfedc gfedc gfedc gfedc gfedc

Enter Historical or ELA Cost 2013 2014 2015 2016 2017

VMware SW: Server Virtualization $ $ $ $ $



Server Product Selection Profesional Services Training

Services & Training 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total

Investment

Onsite Assessment $ 0 $ 0

Operational Readiness $ 0 $ 0

vSphere Jumpstart $ 0 $ 0

P2V Jumpstart $ 0 $ 0

Fast Track $ 0

Install, Configure, Manage $ 1,875 $ 1,875

Planning & Design $ 0

P2V Acceleration (end to end application migration service)

Workload Migrations 63 45 117 0 0 0 0 0 0 0 225

Cost per Server $ 2,720 $ 3,450 $ 1,877 0$ 0$ 0$ 0$ 0$ 0$ 0$ $ 0

Total $ 0

vSphere Health Check (annual checkup)

Host Servers 6 10 20 21 22 0 0 0 0 0 79

Cost per Server $ 2,175 $ 1,995 $ 1,860 $ 1,853 $ 1,848 0$ 0$ 0$ 0$ 0$ $ 1,896

Total $ 13,053 $ 19,952 $ 37,199 $ 38,923 $ 40,648 $ 149,774

Select to enter known costs gfedc gfedc gfedc gfedc gfedc gfedc gfedc gfedc gfedc gfedc

Enter Historical or PSO Credit cost $ $ $ $ $ $ $ $ $ $ $ 0

Services & Training $ 14,928 $ 19,952 $ 37,199 $ 38,923 $ 40,648 $ 0 $ 0 $ 0 $ 0 $ 0 $ 151,649



Server Product Selection Profesional Services Training: Key Assumptions

Server Beyond Server Consolidation Savings On Labor

Professional Services & Training

Assessment Select to reviewWindows

Servers

Cost

per ServerInvestment

Virtualization Assessment gfedc 420 66$ $ 0 onsite assessment

Operational Readiness Select to reviewDatacenter

Sitesper Site Investment

Accelerator gfedc 1 $ 93,000 $ 0 organizational analysis & virtualization roadmap

Training Select to reviewDatacenter

Sitesper Site Investment

vSphere Jumpstart gfedc 1 $ 10,000 $ 0 onsite: setup 2 vSphere hosts & 1 vCenter Server

P2V Jumpstart gfedc 1 $ 6,000 $ 0 onsite: demonstrate 4 workload migrations

Select to review Participants per Participant Investment

Fast Track gfedc 1 $ 4,250 offsite: install, config, manage + advanced tasks

Install, Configure, Manage gfedcb 1 $ 1,875 $ 1,875 offsite: install, config, manage

Planning & Design Select to reviewDatacenter

Sites

Cost

per SiteInvestment

Premium gfedc 1 $ 48,900 Design, installation, and operational documents & roadmap

Application Migration Select to review

P2V Acceleration gfedc End to end application migration service

Annual Checkup Select to review

vSphere Heath Check gfedcb Annual checkup for host servers

Savings on Server Provisioning Labor Start 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total


Existing Servers 400 420 442 466 490 516 0 0 0 0 0 516

Servers retired 0 -400 0 0 -20 0 0 0 0 0 -420

Servers purchased: number to provision 20 422 24 24 46 0 0 0 0 0 536

Hours required for server provisioning 200 4,220 240 240 460 0 0 0 0 0 5,360


New Host Servers (12:1) 0 6 10 20 21 22 0 0 0 0 0 22

Servers retired 0 0 0 0 -6 0 0 0 0 0 -6

Servers purchased: number to deploy 6 4 10 1 7 0 0 0 0 0 28

Hours required for physical server deployment 60 40 100 10 70 0 0 0 0 0 280

New VM's to provision 63 48 122 12 13 0 0 0 0 0 258

Hours required for VM provisioning 126 96 244 24 26 0 0 0 0 0 516

Hours required for server provisioning 186 136 344 34 96 0 0 0 0 0 796

IT Administration Labor Savings (A-B) Hours 14 4,084 -104 206 364 0 0 0 0 0 4,564

FTE Equivalent 0.01 2.08 (0.05) 0.11 0.19 0.00 0.00 0.00 0.00 0.00 2.33

Value $ 592 $ 172,794 $ -4,400 $ 8,716 $ 15,401 $ 0 $ 0 $ 0 $ 0 $ 0 $ 193,103

Business Downtime Savings [(A-B) * 40%]

Hours 6 1,634 -42 82 146 0 0 0 0 0 1,826

Opportunity Cost Savings (@ $ 0.1K per hour)

Value $ 560 $ 163,360 $ -4,160 $ 8,240 $ 14,560 $ 0 $ 0 $ 0 $ 0 $ 0 $ 182,560



Server Beyond Server Consolidation Savings On Labor: Key Assumptions

Server Beyond Server Consolidation vSphere vMotion

Server Beyond Server Consolidation vSphere vMotion: Key Assumptions

Server Beyond Server Consolidation Availability

Hours to provision a server Administration Labor

Existing Physical or New Physical 10.0 Calculate value of hours saved? Yes

New Virtual Machines 2.0 Cost per Hour 42$

Assuming all new workloads are virtualized

Full-Time Employee (FTE) Administrator hours per year

Weeks per Year 49

Days per Week 5

Hours per Day 8

Hours per FTE per Year 1,960

Percentage of Business Downtime in relation to Administration Hours spent Business Downtime

Virtualized 40% Calculate value of hours saved? Yes

Cost per Hour 100$

vSphere Feature: vMotion 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total


Existing Servers 420 442 466 490 516 0 0 0 0 0 516

Maintenance events 1,680 1,768 1,864 1,960 2,064 0 0 0 0 0 9,336

Total hours of application downtime 1,680 1,768 1,864 1,960 2,064 0 0 0 0 0 9,336


Host Server (12:1) 6 10 20 21 22 0 0 0 0 0 79

Unvirtualized Servers 147 110 0 0 0 0 0 0 0 0 0

Maintenance events 612 480 80 84 88 0 0 0 0 0 1,344

Total hours of application downtime 588 440 0 0 0 0 0 0 0 0 1,028

Downtime Savings (A-B) Hours 1,092 1,328 1,864 1,960 2,064 0 0 0 0 0 8,308


Value $ 109,200 $ 132,800 $ 186,400 $ 196,000 $ 206,400 $ 0 $ 0 $ 0 $ 0 $ 0 $ 830,800

Does selected edition of vSphere include vMotion feature? yes

Do you have or plan to have shared storage? yes

Is vMotion enabled for this environment? yes

Average number of Server maintenance events per server per year? 4

Calculate opportunity cost of downtime? yes

Average number of Hours of downtime per event? Cost per Hour 100$

Unvirtualized Workloads 1.0

VM's 0.0

vSphere Features: High Availability & Fault Tolerance 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total



Server Beyond Server Consolidation Availability: Key Assumptions

Savings on Server Administration Labor


Existing Servers 420 442 466 490 516 0 0 0 0 0 516

Server OS or HW failure events 21 23 24 25 26 0 0 0 0 0 119

Hours to recover 84.0 92.0 96.0 100.0 104.0 0.0 0.0 0.0 0.0 0.0 476.0

Downtime (application hours) 84.0 92.0 96.0 100.0 104.0 0.0 0.0 0.0 0.0 0.0 476.0


Virtual Machines (VM's) 65 113 235 247 260 0 0 0 0 0 260

VM's protected by FT 0 0 0 0 0 0 0 0 0 0 0

VM's unprotected by FT, but HA enabled 65 113 235 247 260 0 0 0 0 0 260

Number Servers unprotected by FT (12:1) 6 10 20 21 22 0 0 0 0 0 22

Remaining Physical Servers 147 110 0 0 0 0 0 0 0 0 0

Server HW failure events 8 6 1 2 2 0 0 0 0 0 19

Hours to recover 31.6 23.3 2.6 5.2 5.2 0.0 0.0 0.0 0.0 0.0 67.9

Downtime (application hours) 45.2 44.7 31.2 62.4 62.4 0.0 0.0 0.0 0.0 0.0 245.8

Shadow VM's created by FT 0 0 0 0 0 0 0 0 0 0 0

Additional Servers required (12:1) 0 0 0 0 0 0 0 0 0 0 0

CapEx for Additional Servers $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Downtime Savings (A-B) Hours 38.8 47.3 64.8 37.6 41.6 0.0 0.0 0.0 0.0 0.0 230.2


Value $ 3,882 $ 4,734 $ 6,480 $ 3,760 $ 4,160 $ 0 $ 0 $ 0 $ 0 $ 0 $ 23,017

Additional Server Expenses from FT

Does selected edition of vSphere include HA feature? yes

Do you have or plan to have shared storage? yes (HA and FT require shared storage)

Is HA enabled for this environment? yes

Percent of Server OS or HW failures per Year

5%

Average number of Hours to recover per event

Existing - unvirtualized 4.0

New - virtualized 2.6

Does selected edition of vSphere include FT feature? no

Is FT enabled for this environment? no

Percent of VM's protected by FT 0% Calculate opportunity cost of downtime? Yes

(support for 1 vCPU workloads only) Cost per Hour 100$

Savings on Server Administration Labor 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total



Savings on Server Administration Labor: Key Assumptions

ROI on Server Consolidation Server Consolidation Benefits


Number of Workloads 210 221 233 245 258 0 0 0 0 0 258

Hours required for application administration 9,147 9,626 10,148 10,671 11,237 0 0 0 0 0 50,829


Number of Workloads - virtualized 65 113 235 247 260 0 0 0 0 0 260

Number of Workloads - unvirtualized 147 110 0 0 0 0 0 0 0 0 0

Hours required for application administration 8,678 8,746 8,225 8,645 9,100 0 0 0 0 0 43,394

IT Administration Labor Savings (A-B) Hours 469 880 1,923 2,026 2,137 0 0 0 0 0 7,436

FTE Equivalent 0.24 0.45 0.98 1.03 1.09 0.00 0.00 0.00 0.00 0.00 3.79

Value $ 19,843 $ 37,219 $ 81,381 $ 85,725 $ 90,431 $ 0 $ 0 $ 0 $ 0 $ 0 $ 314,598

Business Downtime Savings [(A-B) * 40%] Hours 188 352 769 810 855 0 0 0 0 0 2,974

Opportunity Cost Savings (@ $ 0.1K per hour) Value $ 18,760 $ 35,187 $ 76,938 $ 81,044 $ 85,493 $ 0 $ 0 $ 0 $ 0 $ 0 $ 297,422

Average Workloads per FTE Administrator

Existing - unvirtualized 45

New - virtualized 56

Estimate 24% increase in infrastructure administration efficiency

vSphere & vCenter productivity features

Feature in

selected edition?

Shared

Storage?

Feature

Enabled?

Increase in

Workloads / AdminFeature

no yes no 0.000.00 Distributed Resource Scheduler

no no 0.000.00 vNetwork Distributed Switch & Host Profiles

no no 0.000.00 Storage Distributed Resource Scheduler + Profile-Driven Storage

yes yes 5.50 Orchestrator (vCenter)

no no 0.000.00 Auto Deploy

no no 0.000.00 vShield Zones

no no 0.000.00 I/O Control

yes yes 4.50 Update Manager

yes yes 0.30 Data Recovery

no no 0.000.00 Hot Add

no no 0.000.00 3rd Party Multipathing

no no 0.000.00 vStorage API's for Storage Array Integration

no no 0.000.00 vSerial Port Concentrator

yes yes 0.30 Linked Mode (vCenter)

Total 10.60

Annual Administrator Hours per Workload

Hours per FTE per Year 1,960 Administration Labor

Existing - unvirtualized 44 Calculate value of hours saved? Yes

New - virtualized 35 Cost per Hour 42$

Percentage of Business Downtime in relation to Administration Hours spent Business Downtime

Virtualized 40% Calculate value of hours saved? Yes

Cost per Hour 100$

Server Consolidation Benefits

Investment Over 5 Years

VMware Software License & Support

Year 1: 12 vSphere, 1 vCenter Server $ 22,060



Year 2+: 32 vSphere, 0 vCenter Server $ 42,176

Total: 44 vSphere, 1 vCenter Server $ 64,236

New Servers

Year 1: 6 servers $ 60,000

Year 2+: 132 servers $ 550,000

Total: 138 servers $ 610,000

Storage (TB's of DAS / SAN / NAS)

Year 1: 5.8 TB's $ 29,938

Year 2+: 36.6 TB's $ 276,625

Total: 42.5 TB's $ 306,563

Networking

Year 1: 0 switches $ 0

Year 2+: 20 switches $ 80,000

Total: 20 switches $ 80,000

Additional CapEx for Fault Tolerance

0% of VM's protected $ 0

Professional Services & Training $ 151,649

Other 0$

Tax (5%) 5% $ 60,622

Total Investment $ 1,273,070

Savings Over 5 Years

Server Consolidation

Servers $ 998,000

Power & Cooling $ 915,388

Storage $ -16,113

Networking $ 276,000

Rack Space $ 386,400

IT Administration Labor Savings

Hours saved from Server Provisioning 4,564

Hours saved from Administration Productivity Features 7,436

Total Hours saved 12,000

FTE Equivalent (avg per year) 1.22

Value $ 507,701

Downtime Savings (application hours)

Hours saved from Planned Downtime: Server maintenance 8,308

Hours saved from Planned Downtime: Storage maintenance 1,820

Hours saved in recovery from Server OS / HW failure 230

Hours returned to business from faster IT administration 4,800

Total Hours saved 15,158

Value $ 1,333,799

Additional Power & Cooling for FT servers $ 0

Additional Power Savings with DPM $ 0

Other 0$

Total Savings $ 4,401,175

Return on Investment 246%

Payback on Investment 1.5 years



5 Year Total Savings: $ 4,378,158

Summary Analysis


5 Year Total Investment: $ 1,273,070

Reduction (over 5 years): 43%

Summary Analysis


Summary Analysis


Reduction (over 5 Years): 43%

Summary Analysis


Data Summary

Summary of Virtualized Infrastructure Environment

Server Infrastructure

WORKLOADS

Server Infrastructure 2013 2014 2015 2016 2017

Unvirtualized Workloads

Extension of Existing 210 221 233 245 258

% Virtualized 30% 50% 100% 100% 100%

VM's: Dev & Test + Production

Total1 65 113 235 247 260

VM's: Business Continuity + Disaster Recovery

Total 0 0 0 0 0

VM's: Network Security

Total 0 0 0 0 0

1 Includes vCenter Server instances

SERVERS


Dev & Test + Production

Total 6 10 20 21 22

Consolidation

(VM's to Servers) 11:1 11:1 12:1 12:1 12:1

Business Continuity + Disaster Recovery

Total 0 0 0 0 0

Network Security

Total 0 0 0 0 0

STORAGE (GB's)


Total 22,013 23,713 26,438 27,788 29,250

Infrastructure Administration (Hours)


Unvirtualized

Workloads1 210 221 233 245 258

Administrators (FTE) 5 7 5 6 6

Hours 9,347 13,846 10,388 10,911 11,697

Virtualization Savings

+vSphere -483 -4,964 -1,819 -2,232 -2,501

+AppSpeed 0 0 0 0 0

+vCloud Director 0 0 0 0 0

+SRM 0 0 0 0 0

+vShield Edge & App 0 0 0 0 0

Savings -483 -4,964 -1,819 -2,232 -2,501

Total 8,864 8,882 8,569 8,679 9,196

Reduction 5% 36% 18% 20% 21%

1 Including count of specialized Network Security hardware (Firewalls & Load Balancers) if applicable

Summary Analysis


APPENDIX A: Detail of Virtualized Server Infrastructure Environment

Server Infrastructure

WORKLOADS


Unvirtualized Workloads

Extension of Existing 210 221 233 245 258

% Virtualized 30% 50% 100% 100% 100%

VM's: Dev & Test + Production

vSphere1 65 113 235 247 260


Total 65 113 235 247 260

VM's: Business Continuity + Disaster Recovery

+Fault Tolerance 0 0 0 0 0

+SRM 0 0 0 0 0

Total 0 0 0 0 0

VM's: Network Security

+vShield Edge 0 0 0 0 0

+vShield App 0 0 0 0 0

Total 0 0 0 0 0

1 Includes vCenter Server instances

SERVERS

Servers: Dev & Test + Production

vSphere 6 10 20 21 22

+CapacityIQ 0 0 0 0 0


+Chargeback 0 0 0 0 0

Total 6 10 20 21 22

Consolidation

(Workloads to Servers) 11:1 11:1 12:1 12:1 12:1

Servers: Business Continuity + Disaster Recovery


+SRM 0 0 0 0 0

Total 0 0 0 0 0

Servers: Network Security



Total 0 0 0 0 0

STORAGE


Storage (GB's)

vSphere

Direct Attached 11,025 8,250 0 0 0

SAN / NAS 10,988 15,463 26,438 27,788 29,250



+SRM 0 0 0 0 0



Total 22,013 23,713 26,438 27,788 29,250

Summary Analysis


INFRASTRUCTURE ADMINISTRATION


Infrastructure Administration (Hours)

Unvirtualized

Workloads

Dev & Test + Production 210 221 233 245 258

Fault Tolerance 0 0 0 0 0

Disaster Recovery 0 0 0 0 0

Network Security1 0 0 0 0 0

Total 210 221 233 245 258

Administrators (FTE) 5 7 5 6 6

Hours 9,347 13,846 10,388 10,911 11,697

Virtualization Savings

+vSphere -483 -4,964 -1,819 -2,232 -2,501

+AppSpeed 0 0 0 0 0


+SRM 0 0 0 0 0

+vShield Edge & App 0 0 0 0 0

Savings -483 -4,964 -1,819 -2,232 -2,501

Total 8,864 8,882 8,569 8,679 9,196

Reduction 5% 36% 18% 20% 21%

1 Including count of specialized Network Security hardware (Firewalls & Load Balancers) if applicable

Summary Analysis


Charts Data

Investment vs. Savings vs. ROI (cumulative)

2013 2014 2015 2016 2017

Investment ($) $ 133,271 $ 819,389 $ 1,048,744 $ 1,112,489 $ 1,273,070

Savings ($) $ 307,562 $ 2,211,276 $ 2,784,557 $ 3,563,838 $ 4,378,158

ROI (%) 131% 170% 166% 220% 244%

Annual Savings $ 307,562 $ 1,903,713 $ 573,281 $ 779,282 $ 814,320

5 Year Payback NA 1.5 NA NA NA

Distribution of Savings

Total 5 Yrs

Server Total

CapEx Client HW + MS VDA $ 0 $ 0

Server HW $ 998,000 $ 998,000

Storage HW $ -16,113 $ -16,113

Networking & Security HW $ 276,000 $ 276,000

OpEx Infrastructure Admin Productivity $ 507,701 $ 507,701

Power & Cooling $ 915,388 $ 915,388

Rack Space & Office Space $ 386,400 $ 386,400

Other Planned Downtime $ 830,800 $ 830,800

Unplanned Downtime $ 0 $ 0

Business Downtime $ 479,982 $ 479,982

Other $ 0 $ 0

Total $ 4,378,158 $ 4,378,158

Distribution of Investment

Total 5 Yrs

Server Total

Investment VMW SW + SnS $ 64,236 $ 64,236

Client HW + MS VDA $ 0 $ 0

Server HW $ 610,000 $ 610,000

Storage HW $ 306,563 $ 306,563

Networking & Security HW $ 80,000 $ 80,000

Services + Training $ 151,649 $ 151,649

Other $ 0 $ 0

Tax $ 60,622 $ 60,622

Total $ 1,273,070 $ 1,273,070

Total Cost of Ownership

Total Analysis Horizon 5 Yrs

Physical Virtualized Reduction%

CapEx $ 2,254,450 $ 1,060,798 53%

OpEx $ 3,976,655 $ 2,318,816 42%

Other $ 3,574,896 $ 2,212,013 38%

Total $ 9,806,001 $ 5,591,628 43%

Summary Analysis


Total Cost of Ownership - Total 5 Yrs


Server Total Server Total Server Total

CapEx Client HW + MS VDA $ 0 $ 0 $ 0 0%

Server HW $ 1,608,000 $ 1,608,000 $ 610,000 $ 610,000 62% 62%

Storage HW $ 290,450 $ 290,450 $ 306,563 $ 306,563 (6)% (6)%

Networking & Security HW $ 356,000 $ 356,000 $ 80,000 $ 80,000 78% 78%

VMW SW + SnS $ 0 $ 64,236 $ 64,236

OpEx Infrastructure Admin $ 2,377,371 $ 2,377,371 $ 1,869,669 $ 1,869,669 21% 21%

Power & Cooling $ 1,112,085 $ 1,112,085 $ 196,697 $ 196,697 82% 82%

Rack Space & Office Space $ 487,200 $ 487,200 $ 100,800 $ 100,800 79% 79%

Services + Training $ 0 $ 151,649 $ 151,649

Other Planned Downtime $ 1,167,000 $ 1,167,000 $ 336,200 $ 336,200 71% 71%

Unplanned Downtime $ 47,600 $ 47,600 $ 47,600 $ 47,600 0% 0%

Business Downtime $ 2,247,573 $ 2,247,573 $ 1,767,591 $ 1,767,591 21% 21%

Other + Tax $ 112,723 $ 112,723 $ 60,622 $ 60,622 46% 46%

Total $ 9,806,001 $ 9,806,001 $ 5,591,628 $ 5,591,628 43% 43%

Server Workloads: Average Cost per Workload / VM per Hour (excluding any desktop workloads in analysis)

Server Analysis Horizon 5 Yrs


CapEx $ 0.22 $ 0.10 53%

OpEx $ 0.39 $ 0.23 42%

Other $ 0.35 $ 0.22 39%

Total $ 0.96 $ 0.54 43%

Number of Workloads / VM's (5 year avg) Physical Virtualized

Production + Preproduction 233 235

Business Continuity & Disaster Recovery 0 0

Network Security 0 0

Total 233 235

Server Workloads: Cumulative Cost per Workload / VM per Hour, over time (excluding any desktop workloads in analysis)

Cumulative Total Cost of Ownership

2013 2014 2015 2016 2017

CapEx $ 111,997 $ 745,491 $ 926,726 $ 948,512 $ 1,060,798

OpEx $ 495,658 $ 985,638 $ 1,413,582 $ 1,849,413 $ 2,318,816

Other $ 470,093 $ 955,450 $ 1,365,331 $ 1,774,527 $ 2,212,013

Cumulative TCO Server $ 1,077,748 $ 2,686,579 $ 3,705,639 $ 4,572,452 $ 5,591,628

Server Workloads / VM's

Physical Workloads 147 110 0 0 0

VM's 65 113 235 247 260

Total Workloads / VM's 212 223 235 247 260

Cumulative Avg thru each year 212 218 223 229 235

Cumulative Cost per Server Workload per Hour (based on cumulative average of server workloads / VM's thru each year)

CapEx $ 0.06 $ 0.20 $ 0.16 $ 0.12 $ 0.10

OpEx $ 0.27 $ 0.26 $ 0.24 $ 0.23 $ 0.23

Other $ 0.25 $ 0.25 $ 0.23 $ 0.22 $ 0.22

Total $ 0.58 $ 0.71 $ 0.63 $ 0.57 $ 0.54

Summary Analysis


Green Savings

1 Assumes 667 lbs of CO2 offset per tree

2 Assumes 12,000 miles per year and 20 mpg

3 Assumes 1.583 lbs of CO2 per kWh

Virtual Infrastructure: Green Savings

Energy Savings Total Analysis Horizon 5 Yrs

Number of Servers & Network Security Appliances


Dev & Test + Production 516

Business Continuity + Disaster Recovery 0

Network Security appliances 0

Total 516

B) Transition to Virtualized Infrastructure

Dev & Test + Production 20

Business Continuity + Disaster Recovery 0

Network Security hosts 0

Desktop hosts 0

Total 20

Reduction (A-B) 496

Power & Cooling Energy Savings (Kilo-Watt Hours)

A) Extension of Unvirtualized Environment 10,551,734

B) Transition to Virtualized Infrastructure 2,048,909

Server Virtualization Savings (A-B) 8,502,824

C) Net impact of Desktop Client transition 79,170

Savings (A - B + C) 8,581,994

Environmental Impact Equivalents

Planting trees1 20,377

Cars off the road2 1,151

CO2 emission avoided3

lbs 13,585,297

kg 6,162,187

Summary Analysis


Compare Platforms

Comparison Against Competing Platforms

(for virtualized Server workloads only)

Year 1: Transition to Virtualized Infrastructure VMware Microsoft Red Hat Citrix

Server Consolidation

Workloads Virtualized 63 63 63 63

Management workloads required 2 4 2 3

Total 65 67 65 66

Windows VM's (OS) 34 36 34 35

Linux VM's (OS) 31 31 31 31

Number of Host Servers 6 9 9 9

Current Consolidation Ratio 11:1 7:1 7:1 7:1

Max Consolidation Ratio 12:1 8:1 8:1 8:1

Total Number of CPU's 12 18 18 18

Servers with Windows VM's 3 5 5 5


Servers with Linux VM's 3 4 4 4


Infrastructure

Server HW $ 60,000 $ 90,000 $ 90,000 $ 90,000

Server Power & Cooling $ 5,651 $ 8,477 $ 8,477 $ 8,477

Server Storage $ 11,563 $ 25,250 $ 25,250 $ 25,250

Server Networking $ 0 $ 0 $ 0 $ 0

Server Rack Space $ 8,400 $ 8,400 $ 8,400 $ 8,400

Total Cash Expenditure $ 85,614 $ 132,127 $ 132,127 $ 132,127

Server OS

Server OS

Windows Server 2008

Units 6 10 10 10

Cost $ 22,493 $ 37,488 $ 37,488 $ 37,488

Novell SUSE Linux Enterprise Server

Units 3 4 4 4

Cost $ 3,300 $ 4,400 $ 4,400 $ 4,400

Red Hat Enterprise Linux

Units 0 0 0 0

Cost $ 0 $ 0 $ 0 $ 0


Virtualization Software

Virtualization

VMware: vSphere + vCenter $ 22,060

Microsoft System Center: Hyper-V

SMSD licenses $ 16,853

SCCM Server license with SQL $ 1,651

SCOM Server license without SQL $ 0

SCOM Server license with SQL $ 3,303

Essentials 2007 with SQL Server 2008 $ 0

Essentials 2010 $ 0

Essentials Server ML $ 0

SCVMM Workgroup Edition $ 0

Summary Analysis


Total $ 21,806

Red Hat Enterprise Virtualization: KVM $ 13,482

Citrix: XenServer + Essentials $ 18,000


Total Cost of Infrastructure + Software $ 130,166 $ 191,420 $ 183,096 $ 187,614

Number of VM's (excluding Mgmt) 63 63 63 63

Cost per VM $ 2,066 $ 3,038 $ 2,906 $ 2,978

VMW per VM cost advantage 32% 29% 31%

Summary Analysis


Compare Platforms

General

Windows Workloads % of Total 50%

Windows VM's 32

Linux VM's 31

Linux VM's Server OS Novell

(Support assumed to be Production level, at lower of per Server cost of $1,100 or per VM cost of $375)

Include VMware infrastructure advantage from Thin Provisioning and Distributed Power Management

Yes

VMware VM density advantage: 50%

Microsoft

Note: Non-USD prices here translated from USD price points

Server OS

Windows Server 2008

Edition Datacenter

License cost, per CPU $ 2,999

Software Assurance (1 year) $ 750

Virtualization

Microsoft System Center License SA Units

SMSD licenses, per CPU $ 749 $ 187 18

SCCM Server license with SQL $ 1,321 $ 330 1

SCOM Server license without SQL $ 579 $ 145 0

Summary Analysis


SCOM Server license with SQL $ 1,321 $ 330 2

Essentials 2010 with SQL Server 2008 $ 870 $ 218 0

Essentials 2010 $ 103 $ 26 0

Essentials Server ML (1 MLP) $ 103 $ 26 0

Red Hat


Server OS

Red Hat Enterprise Linux

Edition Advanced Platform

Premium Support $ 2,499

Virtualization

Red Hat Enterprise Virtualization for Servers Support Units

Premium $ 749 18

Citrix


Virtualization

Citrix XenServer Support Units

Preferred Extend (5 incidents pack) $ 3,000 3

(unit count assumes one 5 incidents pack for every 3 servers)

Citrix Management and Automation

Edition Advanced

License Units

License cost, per Server $ 1,000 9

Summary Analysis


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