Changing Face of Virtualization

1. Changing Face of Virtualization David Senf, Director Infrastructure Solutions Group idc.com November 24, 2009

2. 2009 8.4% Profits GDP Un-employment -33.8% -2.4%

3. Yet another forecast Source: IDC Market Models

5. IT conundrum – tradeoffs inevitable

6. The Big Switch – Nicholas Carr

7. The Big Switch – Nicholas Carr

8. The Big Switch – Nicholas Carr

10. “capacity=demand” The Big Switch – Nicholas Carr

11. So where are we now?

14. Real Estate Admin Utilization & Maintain ++++ Power & Cooling

15. Cost avoidance through virtualization

16. Virtualization by the numbers • Top Savings Opex Capex 25% cost reductionover 12 monthsacross capex and opex

17. Business case development Half of firms create formal business caseto justify virtualization investments. As for the rest.... • “I figured I had saved about $1.5M...[in] hardware costs... I didn’t go into a lot of the intangibles...” • Pharmaceutical “If I go to my CFO, he wants to see a couple of pieces of data, not a hundred.” - Manufacturing

18. Server build decisions Suggest virtual servers 57% Virtualdefault 32% Hardwarecentric 11% N=400

19. How did we get here?

20. Annual Cores Shipped Annual CPUs Shipped Server capability and density soars – virtualization gets a leg up 1 app/CPU 1 app/core 1 app/blade 1 app/server

21. Sprawling Server InfrastructureOperational Costs Rise Dramatically WW Spending on Servers, Power and Cooling, and Management/Administration Customer Spending ($B)

22. New Economic Model for the Datacenter Shifts to Automation Tools are a Requirement WW Spending on Servers, Power and Cooling, and Management/Administration Customer Spending ($B) Virtualization Management Gap

23. Zero sum game? “If we had not virtualized the number of servers would be significantly greater...Our carbon footprint would be greater… We are spending less as a whole.” - Financial Services

24. New Economic Model for the Datacenter Shifts to Automation Tools are a Requirement WW Spending on Servers, Power and Cooling, and Management/Administration Customer Spending ($B)

25. Considerations

27. Few VMs Profile • IT-centric • Virtualize for hardware savings • Low ITIL use • Resource mgmt • Lack of visibility • Manual processes • Physical & virtual tools / mgmt separate • Lower VM / server rate(e.g., 5/server)

28. Many VMs Profile • Business-centric • Virtualize for competitive advantage • High ITIL use • DR/HA • Resource monitoring / measurement • Automate processes • Physical & virtual tools / mgmt integrated • Higher VM / server rate(e.g., 25/server)

31. Virtual machine adoption hurdles – past Time Inst. Resistance

32. Virtual machine adoption hurdles – present Tools Cost/ Budget Expertise Availability Capacity Planning

33. 5 things on order

34. 1

35. From noun to verb

36. The Next Virtualization Milestones 2006 • Virtualization 3.0 • Automation • Service oriented • Policy based • “Cloud” Computing • Variable costs Virtual Clients Utility Computing 3% 1% SW Availability Development & Test 11% 36% • Virtualization 2.5 • Unplanned • HA/DR/back-up • Workload balancing • Virtual Clients Production Consolidation 2013 49% • Virtualization 2.0 • Mobility • Planned downtime • Virtual Clients SW Development & Test Virtual Clients 6% Operational Cost Reduction 15% Production Consolidation Utility Computing 24% 16% Availability 39% CAPEX • Virtualization 1.0 • Encapsulation • Resource sharing • Dynamic consolidation

37. Physical Virtual Server Type High Business Critical Low Virtualization has lots of head room

38. 2

39. The good, the bad and the ugly

40. Server Virtualization Impact: 8.0 Cross Over 7.6 7.0 6.3 5.4 4.3 3.3 3.0  VM Densities Nearly Triple  2005 2006 2007 2009 2008 2010 2011 2012 20% Shipments 5% Shipments

41. Virtualization Machine MovementMobility is on the Rise Move VMs Using Policy Tools Don’t Move VMs Move VMs Manually Move VMs Manually & Using Tools VM Mobility Management VM Movement Frequency • 80% report moving virtual machines across physical hardware • 60% report using automation tools • This highlights the evolution of virtualization and the desire to exploit increased functionality • Illustrates movement towards more dynamic & flexible IT environment

42. VM tools features we desire 1st wave 2nd wave N=297: QC01MR. Which of the following systems management features or tools are you currently using to support your virtual servers? Please select all that apply.

43. 3

44. Action not reaction

45. DR plan? What DR plan? Which of the following describes your organization’s business continuity planning status? We have a plan that is regularly tested Have no plan I think one area specifically that [virtualization] has changed is our ability to provide a better level of service [for] our DR and BCP. - Financial Services Have anad hocplan We have a plan,but it is not regularly tested N=255

46. Dial it up – ITIL? 23% in 2008 12% in 2006 Process automation evolves on a scale fromanti-inflammatoryearly on, tosteroiddown the road

47. 4

48. Resistance is futile

49. 50% of Canadian Firms Use & Plan to UseDesktop Virtualization Total PCs installed in Canada from 1985 - 2009

50. PC Total Cost of Ownership (TCO)Opex makes up the bulk of spending 10% 60% • Operations 7% • Administration • Deploy, Support, Train • Hardware & • Software 23% Q: What is the average breakdown of your PC expenditure? Source IDC Virtualization Forum