PLAYBOOK

Virtualized
Datacenter
Real-World IT
Optimization
=
PREPARED FOR

inside
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

2
Optimizing IT infrastructure is always
in season. During challenging times, however,
it becomes more than an aspiration: making the
most of your IT assets becomes an imperative for
competitive advantage, and ultimately, survival.
Based on the proven ROI and business success of
virtualization for server consolidation, many orga-
nizations are looking to extend their virtualization
efforts to encompass the entire datacenter, from
the OS to the network to the management of
those critical business information assets.
Inspired by the collaboration between
VMware® and Intel to enable the next phase
of virtualization, this playbook will provide IT
decision-makers with a step-by-step overview of
Ihe beneñIs, challenges, Iechnclcgy cpIicns and
best practices for datacenter virtualization. It will
describe breakthroughs in management solutions
for virtual datacenters and multi-core chipsets—
including VMware vSphere™ 4, and VMware VMo-
tion™ as well as Xeon processors with
Intel Virtualization Technology and the
new microarchitecture code-named
Nehalem—to case studies and advice
from CIOs and IT decision-makers.
Using a mix of original articles and
syndicated articles culled from the best
of CIO and CSO magazines, IT decision-
makers will be prepared to make
informed decisions on virtualization’s
role in controlling costs, optimizing IT
assets, business agility and disaster
recovery and business continuity.
Virtualized Datacenter
=

Real-World IT Optimization
1
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

3
An effective virtualization model re-
quires commitment and a well-designed
strategy. Organizations that succeed
can achieve remarkable gains.
Over the last few years, virtualization has evolved
from a promising technology to a mainstream tool
for maximizing utilization rates and minimizing costs
within an IT infrastructure. A 2008 IDG Research
Services survey of 100 U.S.-based IT leaders found
that 88 percent of organizations currently invest in
virtualization initiatives; 63 percent have already
achieved success with server virtualization. Now,
a growing number of organizations are focusing on
total datacenter infrastructure virtualization.
Yet understanding the challenges of operating
a datacenter and how virtualization technology
can help solve them doesn’t necessarily translate
into a viable strategy—particularly for organiza-
tions moving toward large-scale deployments. An
organization—and its IT department—must develop
a sound plan for virtualizing servers, storage and
other enterprise resources. Utilization rates, avail-
ability, resource optimization and, ultimately, return
on investment (ROI) and total cost of ownership
(TCO) are integral to success.
It’s no secret that datacenter optimization
is a key to building a more agile, adaptable and
e!ñcienI enIerprise. And virIualizaIicn can deliver
impressive results. It can spike utilization rates
from the 20 percent range to 80 percent or higher
and result in a cost savings exceeding 70 percent.
But assembling the right combination of hardware
and software is paramount, and seamlessly inte-
grating policies and culture is vital. Only then can
an enterprise unlock maximum business value and
achieve superior results.
Building the Business Case
for Virtualization
The ability to run multiple computing environments,
operating systems and applications side by side
within the same physical server is appealing. By
partitioning a server into several virtual machines,
an enterprise can:
F Boost utilization rates and thereby reduce
server sprawl. A smaller and mcre e!ñcienI lT
environment also helps boost server perfor-
mance and streamline the datacenter.
F Reduce datacenter power utilization and space
requirements, thereby driving costs down.
F Deliver cost-effective virtualization-based high
availability solutions for critical applications.
F Develop enterprise-class application availability
and robust business continuity and disaster re-
Putting Virtualization to Work
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

4
covery on a high performance platform offered
by Intel and VMware.
F Migrate legacy operating systems and applica-
tions to virtualized environments for better
reliability and performance—especially with
server refreshes and hardware upgrades.
The business world is experiencing one of the
fastest data growth periods in history. As com-
panies migrate to online transactions, electronic
records, and wireless systems, the demand for
datacenter space, servers and storage arrays is
climbing at a dizzying rate. Moreover, a spate of
government regulations, along with enhanced
business continuity, disaster recovery and data
archiving requirements mean more robust systems
are needed.
The corporate mindset is changing as well.
A few years ago, the idea of going “green” was
relegated to a handful of distinctly environmental
ñrms. Tcday, as energy prices climb while bud-
geIs shrink, energy e!ñciency has beccme a ccre
component of a successful business. Consolidating
servers and storage translates into lower cooling
bills, reduced electricity consumption, and a smaller
footprint. Green is here to stay.
Making the Move to Virtualization
The starting point for any organization adopting
virtualization is to gain the support of top execu-
Iives. A ccmpelling ñnancial sIcry-and prcc! c!
viability—can transform a virtualization initiative
from a promising idea into a winning proposi-
tion. Typically, an enterprise can achieve ROI for a
virtualization project within three to six months of
deployment. Lower TCO, improved resource usage
rates and better system availability can result in
signiñcanIly greaIer savings and per!crmance im-
1
provements. In addition, an organization can realize
ancillary beneñIs such as simpliñed paIch manage-
ment and software updates.
It’s also vital to crunch numbers internally and
assemble a realistic adoption and deployment mod-
el. One useful tool is VMware’s free ROI calculator:
www.vmware.com/products/vi/calculator.html. It
can transform raw data and vague objectives into a
clear-cut strategy. Essentially, the calculator guides
an organization through the decision-making pro-
cess by identifying the tangible CAPEX and OPEX
savings available through: infrastructure optimi-
zation; lifecycle management; disaster recovery;
application development; release management and
desktop virtualization.
The ñnal sIep is Ic assess, design and build a
virtualized environment that’s plugged into overall
business objectives. A virtualized model must work
across departments, business units and beyond. It
must deal with current IT requirements but offer
the automation, scalability, management tools and
support for services necessary for the future.
The migration to virtualized systems doesn’t
have to prove overwhelming. Refresh cycles can
become an opportunity for costs savings rather
than cost activities. As older servers and sys-
tems are replaced with a higher-performing
and more cost-effective architecture, it’s pos-
sible to achieve greater virtual machine density,
improved application performance, better flex-
ibility and lower power consumption. These
incremental benefits add up to big gains.
At the same time, an organization can phase
in virtualization software such as VMware, which
provides tools for provisioning and managing
resources faster and far more effectively. In fact,
a VMware stack can create multiple snapshots of
a virtualized environment and provide insight into
ideal operating conditions for servers—as well as
storage systems running on storage area networks,
network-attached storage and other components.
Finally-and nc less signiñcanIly-iI's enIirely
possible to identify small and obvious opportunities
for virtualization, create proof points and success
stories, and then build on the framework by ex-
panding the use of the technology to additional
departments, divisions or initiatives. This process
can occur in a deliberate and well-planned manner,
starting with a test development environment that
allows IT to tweak and adjust settings to determine
the best operating state. The end result is a low-
risk, high-reward IT infrastructure that can trans-
form an enterprise.
In today’s highly competitive business environ-
ment, virtualization is ultimately about dollars and
sense. When used effectively, it provides immedi-
ate and tangible results but also builds a founda-
tion and framework for future gains.
In Chapter 2, we’ll look at how virtualization tech-
nology can transform and optimize the datacenter. Q
1
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

5
2
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

6
Trusted partners can help organiza-
tions get the most from virtualization
deployments.
Virtualization seems sensible at face value, with
sIraighI!crward beneñIs and qualiIaIive savings.
Varicus research scurces ccnñrm IhaI a virIualiza-
tion infrastructure based on high-performance
servers can result in a 20 to 80 percent increase in
hardware utilization—which can translate into hun-
dreds of thousands of dollars in savings.
But many IT environments still operate in a “do
less with more” fashion. A datacenter might have
dozens of servers running a variety of operating
systems. Many of these servers house just a single
application, resulting in a highly complex, rigid infra-
structure that is tough to manage and adapt. It’s a
drain cn cash dcw, hardware rescurces and energy.
Organizations that move to a virtualized infra-
structure can consolidate multiple operating sys-
tems and applications onto a single server, which
reduces costs and complexity and frees up physical
space. lI alsc simpliñes securiIy, because securiIy
protection resides in the virtualization layer, not
within individual applications.
And because virtualization dramatically
decreases the number of machines, datacenter
energy use is reduced, shaving utility bills and
boosting corporate sustainability strategies. Finally,
virIualizaIicn c!!ers a dexible, dynamic envircnmenI
for infrastructure resource-sharing, with server
loads that adapt in real-time to changing business
needs, minimizing service delays and disruptions.
In this “optimized” datacenter infrastructure, the
IT team can virtualize servers, storage and net-
works into one set of computing resources that can
be shared and reallocated as needed. Think of it as
a virtual datacenter that can expand and contract
dynamically. Virtualization solutions also include
sophisticated management, monitoring, availability
and recovery features that comple-
ment existing system manage-
ment tools.
Moving to virtualiza-
tion requires a shift
in mindset from
both IT and
business
Making the Most through Virtualization
2
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

7
leaders, and often new skill sets and HR changes
within IT. Below, we talk about these changes and
how technology partners can ease the transition
and improve outcomes.
Culture Change
SmarI ccmpanies have been cperaIing in a ¨daI¨
structure in recent years; the same concept applies
to the datacenter. Resources are shared and distrib-
uted according to need, not corporate hierarchy
—a change that does not come easy.
Business leaders may worry that application
performance will suffer in a shared server environ-
ment. For executives accustomed to having their
own box, control and risk management issues can
be top concerns. The CIO’s job is to clearly demon-
strate why virtualization is a wise and competitive
option, particularly during tight economic times.
Nearly half the respondents to a recent AFCOM (an
association for datacenter managers) survey say
they will have a smaller datacenter budget in 2009;
86 percent report increased use of virtualization
technology to reduce the need for new server
purchases.
Strive for broad stakeholder participation and
test virtual servers to ensure service levels are still
acceptable. Management policies that avoid virtual
server sprawl by helping IT managers determine
which applications should go virtual are part of a
sound virtualization strategy. Finally, staff train-
ing on virtualization techniques, securing a virtual
environment, and a plan for IT staff reorganization
are key components of any comprehensive virtual-
ization change management practice.
A Strong Alliance Helps
As wiIh any signiñcanI Iechnclcgy implemenIaIicn,
particularly one that changes how core infrastruc-
ture components are acquired and managed, tech-
nology partners are critical to success. It’s impor-
tant to choose vendors that continually innovate
and will be around for a long time to come.
Intel, with decades of experience supplying
products to support advanced computing and com-
munications systems, and VMware, which delivers
virtualization software to millions of end users
and all of the Fortune 100, have been working
IcgeIher !cr years Ic deliver a dexible virIualiza-
Iicn archiIecIure prcviding maximum e!ñciencies.
Their alliance has resulIed in signiñcanI Iechnclcgy
enhancements:
WORKLOAD MANAGEMENT AND MULTI-CORE
PROCESSING Data volumes and datacenter re-
quirements will only expand in the coming years.
VMware vSphere 4 software addresses shifting
wcrklcad requiremenIs Ihrcugh dexible, dynamic
hardware resource management. It pools and clus-
ters aggregate physical resources, presenting them
uniformly for dynamic load balancing, high avail-
ability and mobility of virtual machines between
2
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

8
different physical hardware with no disruption. The
VMware/Intel collaboration has helped VMware
software make better use of Intel hardware capabil-
ities—such as the new multi-core processors, which
support multiple software tasks simultaneously.
CONSOLIDATION Virtualization and consolida-
tion require server platforms that combine perfor-
mance, scalability and availability to deliver high
service levels for multiple business applications. In-
tel architecture is the basis for exactly these kinds
of high-performance servers; with VMware technol-
ogy, organizations can achieve server consolidation
ratios as high as 20:1.
EccsysIem ßeneñIs
The VMware/Intel partner ecosystem provides
access to a rich choice of platforms, operat-
ing systems and applications to complement an
organization’s virtualization and dynamic data-
center strategy. ISVs can gain access to a suite
of platforms from various OEMs; pre-production
access to Intel Xeon platforms; pre-release access
to VMware vSphere 4 and technical support from
both companies. More information is available at
www.vmware.com/go/intel.
For the past decade, VMware and SAP have
enjoyed a close partnership; hundreds of customers
use VMware in their SAP environments. VMware is
an SAP Global Technology Partner, and SAP sup-
ports VMware ESX™ as a platform for SAP applica-
tions on Windows and Linux in test, development
and production environments.
The Intel® Enabled Server Acceleration Alliance
(Intel® ESAA) delivers reliable, high-quality server
solutions. Intel ESAA aligns with leading software
providers and includes a validation service within
Intel’s Enterprise Platform and Services division.
The alliance combines robust Intel-based server
platforms and building blocks with software appli-
caIicns !rcm cIher ccmpanies Ic prcvide cerIiñed
server solution offerings to resellers. The VMware
System Builder Program helps VMware partners
become experts in virtualization, offering technical
support, exclusive knowledge and other services
IhaI beneñI cusIcmer implemenIaIicns.
In Chapter 3, we’ll discuss three core virtu-
alization activities: server consolidation, auto-
mated management, and resource allocation and
monitoring. Working in tandem, they transform a
resource-intensive infrastructure that can’t adapt
quickly to business needs to one that is flexible,
dynamic and efficient. Q
Var|cus research scurces ccnñrm
that a virtualization infrastructure based
on high-performance servers can result in
a 20 to 80 percent increase in hardware
utilization—which can translate into and
hundreds of thousands of dollars in savings.

With virtualization as the underlying
technology, the datacenter can be
optimized for best use of resources
and cost savings.
It used to be that when a business unit needed
a new application, IT ordered a new server and
placed it in the datacenter. When space ran out,
the datacenter was expanded or a new facility
was built.
Concerns about rising costs and energy usage
have made that strategy untenable. Datacenter
optimization is now focused on minimizing costs,
maximizing resources and enabling IT-business
alignment. But multifaceted business requirements,
growing data volumes and stringent regulations
make this a tall order.
First, though, IT must deal with outdated
datacenters, which typically house multiple server
platforms, with each server running a single ap-
plication, at utilization rates as low as 15 percent.
These data islands create physical complexity,
energy waste and management headaches. A com-
bination of best practices, hardware and software
focused on consolidating and “greening” the data-
cenIer can lead Ic a mcre adapIable and e!ñcienI
infrastructure. When a business unit needs new
functionality, users won’t have to wait for weeks,
or suffer from performance drags because the
infrastructure can’t handle more workload.
For example, say a VP of sales needs a new
CRM solution in place in a week for a major indus-
try conference. Through a Web-based interface,
she requests the software, enters the number
of users and other business requirements, and
accesses the application in a matter of days. In
this scenario, IT becomes an enabler for business
demands cn Ihe dy-which IranslaIes Ic beIIer
customer service and lets business units quickly
capitalize on changing demands and opportunities,
ahead of the competition.
Getting Down to the FAQs
3
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

9
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

10
3
The Big Virtualization Picture
An optimized datacenter lays a foundation for self-
service IT. The streamlined datacenter becomes a
pillar on which to build out the entire IT infrastruc-
ture, including desktops, servers and networks. An
cpIimized in!rasIrucIure e!ñcienIly manages user
requests and applications. Consolidation, resource
allocation and workload balancing save companies
money, ensure high availability for critical systems,
and are part of an overall energy management
in!rasIrucIure, including e!ñcienI pcwer and cccling
systems. Below are the core features of an opti-
mized virtual infrastructure:
1. Server consolidation
Consolidating servers directly improves the bot-
tom line. Datacenters account for 1.5 percent of
total U.S. electricity consumption at a cost of $4.5
billion—more than all the color televisions in the
country, according to research from the EPA and
the Silicon Valley Leadership Group.
Through widespread adoption of virtualiza-
tion, the EPA estimates annual savings in electric-
ity costs in 2011 will be from $1.6 billion to $5.1
billion. With high-performance server and state-
of-the-art virtualization software combinations,
server consolidation ratios could reach 20:1. Ac-
cording to VMware, consolidation can result in up
to 80 percent cost savings on energy bills and 50
percent on hardware.
Getting started is quick and inexpensive. VM-
ware offers customers two free downloads to
get started on virtualization now—no investment
required. VMware Server is a free virtualization
product for Windows and Linux servers that en-
ables companies to partition a physical server into
multiple virtual machines and immediately experi-
ence Ihe beneñIs c! virIualizaIicn. VNware ESXi is
an OS-independent hypervisor, offering the same
functionality and performance as VMware ESX but
with a 32 MB disk footprint.
As well, continued advances in server hard-
ware, such as the new Intel® Xeon® 5500 series
and Intel® Xeon® 7400 series processor families
create a performance environment that makes
virtualization practical and cost-effective.
2. Automated management
Automated management is an ongoing trend; sys-
Iems IhaI can dynamically manage, mcniIcr and ñx
issues or modify settings to improve performance
are helping decrease IT managers’ workloads—and
in some cases prevent costly problems. New virtu-
alization software and advanced server platforms
can help in several ways:
F CENTRAL MANAGEMENT: Virtualization tech-
nology can provide a central management con-
sole to keep track of performance, availability
and ccnñguraIicns including auIcmaIic securiIy
patching and power management. This means
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

11
3
IT managers can view the status of hundreds
of servers and thousands of virtual machines.
From the console, IT managers can analyze
physical servers to identify strong virtualization
candidates, and then convert them to virtual
machines. Management software within virtual-
ization suites can also provide Web access from
any networked device, enabling managers to
work remotely.
F LOAD BALANCING: VMware Distributed Re-
source Scheduler (DRS) aggregates CPU and
memcry acrcss physical servers inIc uniñed
resource pools that are made intelligently
available in real-time to virtual machines based
on business priority, to maintain SLAs. Load
balancing optimizes heat generation and power
distribution across the datacenter; it can also
entail live server-to-server migrations, which
supports the shared services model of the
modern IT environment. The trick is to do this
across multiple generations of processors, with-
out affecting end-user performance. VMware
and Intel technology help enable rapid migra-
tion of virtual machines while avoiding these
potential problems.
3. Resource allocation
and monitoring
A virtual datacenter offers the ability to direct,
through automated policies or manual intervention,
how IT resources are used according to business
needs. During a major product promotion, for in-
stance, it might be necessary to direct more server
power toward the call center. When the promotion
ends, those resources can be reallocated. Managed
properly, virtualization can boost both internal and
external customer service satisfaction.
Here are a few examples of how IT can use
VMware virtualization technology to dynamically
manage resources:
F ENABLE applications to dynamically acquire
more resources to accommodate peak
performance
F ASSIGN minimum and maximum CPU capacity
to virtual machines based on business priority
F ENSURE critical virtual machines receive prior-
ity access to storage devices and network
bandwidth
F USE resource pools to provide on-demand
access to virtual machines as business needs
shift and to ensure application service levels
are met
F TAKE advantage of advanced server hardware
that increases the memory bandwidth and
application performance within each virtual
machine by more than two times over previous-
generation multiprocessor platforms.
In Chapter 4, we’ll delve into the concept of
agility and how virtualization supports it, from both
IT and business perspectives. Q
Business agility is a long sought after
organizational goal. Virtualization is
making it easier to achieve.
In a global business environment where plans are
constantly morphing, agility is key—and virtual-
ization can help. It is bringing companies closer
to on-demand computing than ever before. With
virtualization, IT departments can operate in a
more behind-the-scenes manner, and give busi-
ness more control over how and when they use IT
services. Organizations can change course quickly,
scaling up or down as necessary to meet new
customer demands.
The following intersections between virtualiza-
tion technology and agility give IT the power to be
more responsive to business requirements:
1. Faster provisioning
Virtualization software is embedded on some
physical servers, allowing IT to deploy a new virtual
machine in just a few minutes. (VMware ESXi is an
OS-independent VMware hypervisor available for
free. It offers the same functionality and per-
formance as VMware ESX but with a 32 MB disk
footprint). Virtualization management software
addresses the dual parts of provisioning, automati-
cally detecting the new physical hardware and
quickly migrating virtual machines to it according to
SLAs and other policies.
Normally, IT administrators spend hours manu-
ally configuring new servers, which can create
frustrating and sometimes costly delays. Ad-
vanced server technology, coupled with special-
ized virtualization features, enables more efficient
migrations between physical servers, preventing
user downtime.
OUTCOMES: IT can more quickly allocate
new computing resources to support the busi-
ness, and users do not experience productivity
declines from infrastructure changes.
2. Location-independent
applications and services
IT complexity is often related to incompatibility
issues between platforms. It is much easier to
move virtual machines from machine to machine
as needed for availability or backup reasons.
Intel® VT FlexMigration with VMware Enhanced
VMotion technology enables efficient live migra-
tions of virtual machines across all Intel Core
microarchitecture-based servers.
Virtual machines are hardware-independent,
and can run on any x86 computer; a physical server
can even run multiple different virtual operating
Turning the Corner to an Agile Business
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

12
4
systems. As well, virtualization encapsulates appli-
cations, operating systems, and hardware require-
ments including CPU, memory, storage and I/O into
a highly portable software container.
OUTCOMES: A virtualized infrastructure not
only enables consolidation among disparate
µ|aIfcrms buI |I a|sc cffers mcre ñex|b|||Iy w|Ih
IT resources and enhances performance.
3. High availability
Server failure is a hard reality. It doesn’t have to be
a nightmare. One strategy for dealing with it is to
have physical servers as backups for key systems,
but that gets expensive to maintain. Specialized
virtualization software, however, can continuously
and seamlessly monitor the environment for server
failure, and restart virtual machines immediately—
without human intervention. The user, unaware of
the situation, continues work as usual.
By the same token, consider the implications
for disaster recovery. A system can be protected
with backup or replication software because it
resides in a !ew ñles called Ihe virIual machine.
If a server begins to fail, the virtual machine can
be recovered to any compatible hardware without
ccnñguraIicn, since virIual machines are hardware·
independent. It’s important to note, however, that
IT should select suitable hardware platforms for
virtualization, to ensure high performance and reli-
ability during data and system recovery.
OUTCOMES: IT can achieve high SLA perfor-
mance and satisfaction levels with the busi-
ness, and avoid costly interruptions.
4. Dynamic, real-time resource
management
VirIualizaIicn bccsIs cperaIicnal e!ñciencies.
VMware virtualization software, combined with
Intel® Xeon® processor servers, can create a virtual
“pool” of processing and storage resources, allow-
ing IT managers to allocate and reallocate them
as needed to different applications or to provide a
data backup resource.
For instance, say an organic produce home
delivery company receives a larger-than-expected
response to an online promotion. To meet demand
and mainIain e!ñcienI prccessing cn iIs web siIe,
the company can quickly dedicate more server
power to its customer-facing applications. As well,
IT managers can create policies to prioritize how
resources are allocated to virtual machines, keep-
4
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

13
When infrastructure is simpler,
streamlined, and easier to adapt, it
requires less time to manage. That leads
to the ability to provide higher levels of
services faster.

ing strategic applications and data readily available.
OUTCOMES: In the future, virtualization
technology will automatically readjust loads
based on changing datacenter conditions or
business requirements.
5. S|mµ||ñed IT managemenI
Virtualization technology has become a criti-
cal method to reduce infrastructure complexity
through faster server deployment; more painless
and effective migrations; better achievement of
service-level agreements via intelligent resource
allocation; and a more foolproof response to avail-
ability and disaster recovery needs.
When infrastructure is simpler, streamlined,
and easier to adapt, it requires less time to man-
age. That leads to not only a lower cost structure
for the datacenter, but also the ability to provide
higher levels of services faster.
OUTCOMES: Less time troubleshooting
means more time to help business leaders
achieve their goals.
Virtualization in action
The !cllcwing crganizaIicns gained agiliIy beneñIs
from virtualization:
F To keep up with the pace of business, Siemens
Medical Solutions required an ever-increasing
number of servers, which caused physical
storage constraints and made hardware main-
tenance more complex for IT administrators.
Through virtualization, IT gained time and real-
ized a $4 million reduction in operating expens-
es, reduced space and cooling requirements
through consolidation, and improved availability
of applications and data. VMotion from VMware
enabled the company to add memory, move
memory, or migrate applications across servers
without any downtime. The company is now
making better use of its hardware resources, as
virtualization improved server CPU utilization
from 4 percent to 70 percent. The company is
now investigating multi-core technologies to
place more intensive workloads and more users
on virtual machines.
F AXA Technology Services (an internal service
provider for the AXA Group, a global insurance
provider with 52 million clients) was worried
virtualization might result in a performance
decline for its brokers. After implementing the
technology, the company maintained its previ-
ous service levels and realized the following
beneñIs. S550,000 in hardware expendiIure
savings; 30 percent improvement in server utili-
zation; reduction in time needed to acquire and
build a server from days to hours; and a 12:1
server consolidation ratio overall.
In Chapter 5, we’ll look at how virtualization
can enable a streamlined and affordable disaster
recovery and business continuity practice. Q
4
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

14
Virtualization can enable a more robust
and reliable disaster recovery and busi-
ness continuity model. But it’s vital to
develop a focused strategy and put the
right technology in place.
Business continuity is a critical concern for all orga-
nizations. The emergence of vast computer net-
works—often intertwined with partners, customers,
employees and others—has changed the way com-
panies act…and interact. There’s an expectation that
sysIems will !uncIicn e!!ecIively and daIa will dcw
almost instantly. Recovery time objectives (RTOs)
and recovery point objectives (RPOs) continue to
shrink while the need to support business continuity
and disaster recovery (DR) grows.
Corporate executives, IT managers, and small
business owners must develop an effective busi-
ness continuity and disaster recovery strategy—no
simple task. Companies must tap into a variety of
solutions and technologies to build a robust and
effective infrastructure, including: storage and
backup devices; mirroring and clustering technol-
ogy; management software; and remote access.
Establishing and managing datacenters—as well
as replicating data on physical servers—can prove
incredibly complex and cost prohibitive. Conse-
quently, many organizations are turning to a virtu-
alized IT environment. It reduces the demand for
hardware while alleviating or even eliminating the
need to replicate data in the same format in which
it was originally stored.
A New Business Continuity
Model Emerges
Downtime is far more than inconvenient in a digi-
tal economy. According to Ontrack Data Recovery
Services, large companies can lose upwards of $1
million an hour when systems and data aren’t avail-
able. For small companies, the consequences of any
inIerrupIicn in Ihe dcw c! gccds cr services can
be fatal—customers will take their business else-
where. Too many organizations fail to take busi-
ness continuity seriously until it’s too late.
Hurricane Katrina caused over $100 billion in
damages and made local business operations nearly
impcssible. BuI scme ñrms-including several lead-
ing ñnancial services ccmpanies-had plans in place
Ic rcuIe phcne calls and daIa dcw Ic cIher c!ñces.
while cIhers dcundered, Ihey sIayed sIrcng. And
in some cases, virtualization helped them build a
The Role of Virtualization in Business
Continuity and Disaster Recovery
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

15
5
5
more robust and streamlined architecture.
What makes business continuity planning so
challenging is that it’s necessary to design and
engineer a solution that can handle dozens, even
hundreds, of variables, including RPOs, RTOs and
storage tiers. Yet at the same time an organization
must plan for a variety of possible disruptions rang-
ing from cataclysmic events such as earthquakes to
more mundane problems such as power failures.
Virtualization provides a way to lower the cost
of business continuity and DR without compromis-
ing results. Virtual machines allow IT to manage
tape and disk libraries more seamlessly, and quickly
access virIual snapshcIs c! daIa Ic reIrieve ñles
based cn speciñc RP0 and RT0 criIeria. This is es-
pecially valuable for businesses that cannot afford
to build and maintain remote failover sites with
identical physical servers and storage arrays.
Remote datacenters that duplicate all the
hardware and software from a primary business
site create a tangle of challenges. Beyond the
initial cost of building a failover site and ensuring
it meets all standards is the nettlesome issue of
keeping hardware and software synchronized on
physical machines. Even mincr paIches and ñrm-
ware updates can derail systems. And maintaining
systems in an identical state can drain IT resources.
Virtualization separates the recovery process
from physical servers. Virtual machines contain the
OS, applications, data and, in some cases, provision-
ing information. This means an organization can re-
store computing functionality to hardware without
serious concern for its underlying characteristics.
In essence, the virtualized platform creates hard-
ware independence through a complete operating
environment. Virtualization software from VMware
handles the data management and mapping, thus
simplifying IT management and improving the over-
all ability to run the business.
Greater automation is also part of the picture.
If a hardware or application disruption takes place,
virtualization software ensures that only a brief
restart is required. VMware High Availability (HA)
virtualization software offers powerful business
continuity and DR features: if a physical server fails,
any virtual machine that’s affected automatically
restarts on another production server with spare
capacity. If a failure takes place within a virtual ma-
chine, VMware HA detects the problem and restarts
the failed virtual machine on the same server.
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

16
5
Steering Toward Success
VirIualizaIicn can beneñI business ccnIinuiIy and
disaster recovery strategies in other ways. Orga-
nizations can conduct non-disruptive testing and
make changes dynamically without taking systems
down. They can simplify data recovery by eliminat-
ing complex manual steps—all while centralizing
recovery plan management. In this new environ-
ment of automation and high availability, hardware
failure no longer equals business failure. Systems
adjust and adapt and it’s business as usual.
It’s a concept that appeals to Health First, a
ncn·prcñI healIhcare prcvider wiIh Ihree hcspiIals
and a IcIal c! 40 clinics and c!ñces alcng Flcrida's
Space Coast. Using Intel processors and VMware
ESX, the organization built a high availability envi-
ronment while trimming 55 physical servers and
$105,000 in capital costs. Health First also reduced
server deplcymenI Iimes, increased dexibiliIy Ic
business needs and boosted DR protection.
lI's a signiñcanI sIep !crward !cr a smaller cr-
ganization with limited resources. Health First pre-
viously depended on tape backup, which required
days to restore in the event of a server failure.
Now, with real-time snapshots of running virtual
machines and a storage area network (SAN), the
organization is able to recover primary applications
“within an hour,” says network engineer Joel Otero.
Another company that used virtualization to
boost business continuity is Subaru of Indiana.
The 620-acre facility, which manufactures 21,800
vehicles per month, turned to a virtualized IT envi-
ronment to boost productivity and reduce system
downtime. The joint solution using VMware and In-
tel platform pushed annual uptime from 96.64 per-
cent to 99.56 percent and created new business
continuity options. IT now uses virtual machines as
hot backups for physical machines, eliminating the
need for new hardware.
In Chapter 6, we’ll examine how organizations
can use virtualization to realize even greater per-
!crmance and prcñIs. Q
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

17
TOOLKIT
The Power of
Virtualization Technology
RISING ENERGY COSTS and limited datacenter space
are !crcing crganizaIicns Ic seek a mcre e!ñcienI
computing infrastructure. Intel Xeon processors deliver
results in three key areas: optimal server performance
based cn speciñc applicaIicn requiremenIs, energy
reductions and boosted performance; and best-in-class
virtualization features. All of this translates into more
intelligent performance and greater automation, in-
cluding mcre e!ñcienI use c! prccessing pcwer, beIIer
consolidation ratios; the ability to combine heteroge-
neous servers into a single virtualized server pool; and
improved virtual machine failover, load balancing, and
disaster recovery capabilities.
The right IT infrastructure can help
an organization ride the virtualization
wave into the future of business and
embrace opportunities that can rede-
ñne Ihe enIerµr|se.
Virtualization can drive remarkable improvements
in utilization and performance, helping organiza-
tions squeeze maximum returns from technology
investments and fashion a far more agile enter-
prise. But in today’s highly competitive and fast-
changing global environment, building a solid IT
foundation is crucial. The right hardware, software
and systems can create new opportunities and a
more dynamic approach to business.
Storage, applications and desktops are also
becoming virtualized as organizations look for
ways Ic manage lT envircnmenIs mcre e!ñcienIly.
As cloud computing, Web 2.0, service-oriented
architecture (SOA) and many other tools enter the
picIure, a dexible and agile lT !ramewcrk is impera-
tive. And given the current economic climate, orga-
nizations must adopt an architecture that supports
change at the lowest possible cost.
A Framework for Success
Although the concept of building today for tomor-
row sounds simple enough, the path to success can
have more than a few potholes—such as trying to
balance expenditures versus ROI. During the recent
economic downturn, more than a few organizations
made OPEX cuts that reduced server refreshes and
other equipment investments. This approach can
inhibit opportunities for gains once the economy
picks up or as the need for more sophisticated
systems accelerates.
Assembling the right combination of hard-
ware, software and other components can also
be a challenge. Together, Intel and VMware offer
a virtualization environment that’s optimized for
maximum performance. A 10-year partnership has
produced features and performance levels that
aren’t available through mixing and matching. An
IT department that relies on hardware-assisted
virtualization from Intel can achieve infrastructure
optimization from the desktop to the server—and
across the network.
Intel Xeon processors with Virtualization
Technology (VT) provide a unique and powerful
platform providing hardware assistance for virtu-
alization. Enhancements in the processor, chipset
and network interface ensure the VMware virtual-
ization software runs at a maximum performance
level. Ncrecver, Ihe sc!Iware can c!dcad ccmplex
tasks to hardware for near-native performance
Building a Foundation for the Future
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

18
6
characteristics. In a business environment that’s
increasingly measured in milliseconds, such gains
are a clear competitive advantage.
Embracing a Virtual Future
Virtualization will play an important role in comput-
ing in the months and years ahead. Already, orga-
nizations are stepping beyond server virtualization
and reaping additional rewards through virtual-
izing storage, networking, and applications. For
example, storage virtualization allows an organiza-
tion to centralize all available storage and manage
one large pool of devices and servers—instead of
hundreds of different ones—and carve up that pool
into storage portions attached to the servers.
Application virtualization, which isolates an ap-
plication from the underlying OS, lets programs run
in parallel with other software—making it much
easier to move programs and data across devices
and operating systems. And it can enable delivery
to any device or operating system, creating a level
c! dexibiliIy IhaI was cnce impcssible. 0rganiza-
Iicns are lccking Ic exIend Ihe beneñIs c! virIual-
ization technology to client devices.
The clienI advanIages are equally signiñcanI.
VMware client virtualization allows organizations
to manage desktops as a service and lower admin-
istration and management costs—all while increas-
ing end·user dexibiliIy. whaI makes virIualizaIicn
so powerful is that it partitions familiar hardware
into multiple isolated virtual environments called
“virtual machines.” Virtualizing client devices allows
an organization to use multiple operating systems,
isolate applications from one another, and take
advanIage c! mcre dexible ccmpuIing mcdels.
The combination of VMware View™3 (Client
Virtualization Platform) with Intel® vPro™ is a “best
of breed” solution, optimized for enterprise busi-
ness client virtualization. It enables network mobil-
ity, enterprise-class control, and centralized applica-
tion, image and data management while providing
dexibiliIy and device independence. This apprcach
reduces hardware-related operating costs and
allows IT shops to manage desktops as a service,
resulIing in greaIer business dexibiliIy and end·
user productivity.
Virtualization is creating opportunities for other
IT gains. Within the datacenter, for example, VM-
ware enables server consolidation and serves as a
!undamenIal building blcck IhaI drives e!ñciency,
control and choice—particularly as organizations
adopt cloud computing solutions. Cloud comput-
ing provides an environment where applications
and data are highly accessible—and manageable.
Using the Internet to connect customers, business
partners and employees with the data they desire
when and where they need it, an enterprise can
raIcheI up prcducIiviIy and ccsI·e!ñciency.
VMware vSphere™ aggregates all datacenter
resources into a shared private cloud, creating mas-
6
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

19
sive economies of scale and leading to enormous
capital and operational savings. The solution
also decreases capital expense per application
and supports the broadest range of operating
systems and applications running on x86. This
makes it possible to seamlessly federate private
and public clouds without requiring application
customization.
VMware vSphere is optimized for Intel® VT
FlexMigration. This processor technology boosts
dexibiliIy and c!!ers greaIer cpIicns in managing
and allocating virtualized workloads across new
and existing Intel-based platforms. It makes pro-
cessor generations transparent and expands the
pool of resources in a virtualized environment.
Combining VMware® Enhanced VMotion™
technology with Intel VT FlexMigration allows an
enterprise to capture the current live state of a
virtual machine and transfer it to a destination
system with a different processor generation
without any disruptions or downtime.
Cloud computing allows organizations to
move beyond the traditional datacenter and into
a computing framework that makes geography
irrelevant and physical machines less important.
Grid computing, Software as a Service, on-
demand computing and hosted IT become viable
options—transforming computing into a utility
and further reducing IT complexity.
Virtualization is at the center of a shifting
IT landscape; its successful adoption can lead
to remarkable gains. Understanding how to use
the technology and unlock its full value can help
an enterprise tap its full potential. Of course, no
one can predict exactly how the business and IT
worlds will change over the next few years. But
one thing is certain: the right technology founda-
tion can support whichever direction an organiza-
tion chooses. Q
6
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY
AND DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

20
TOOLKIT
VMware vSphere
THE COST AND COMPLEXITY of traditional cluster-
ing systems can be formidable. VMware vSphere
prcvides an e!ñcienI and ñnancially prudenI way Ic
maximize the availability of applications running on
a virtual machine. It makes operating systems and
underlying hardware ccnñguraIicns invisible and
pushes business continuity to a new level. VMware
vSphere protects systems within an entire infra-
structure. This includes an ability to monitor virtual
machines to detect hardware and OS failures; restart
virtual machines on physical servers without manual
intervention when a failure occurs; and protect ap-
plications from OS failures by automatically restarting
VMs when an OS failure takes place.
S
A
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

21
Bank Scores with
Server Virtualization
BY GUNJAN TRIVEDI
Here’s a look at why ICICI Bank’s senior GM and Group
CTO, Pravir Vohra, is known as an IT leader who can make a
difference.
They say old habits die hard. It’s a adage that’s certainly true
for ICICI Bank’s senior GM and the Group CTO, Pravir Vohra. As a
man who was part of the team that popularized online banking
and helped create a new revenue stream for ICICI Bank, Vohra is
already known as an IT leader who can make a difference. He’s
also celebrated as a CIO who not only leverages new concepts
and technologies to create -mover advantages for his organiza-
tion, but also adopts solutions at such an unprecedented rate
and scale that it advances his bank beyond the reach of its peers.
Even solution and service providers have found it hard to keep up.
About four years ago, for instance, ICICI Bank was one of the
].!. -! !¤e c-|e |! c¤e.-!e. !c Jcce]J||v |ee.-¤e e¤!e.¤.|e-
wide data warehousing and b usiness intelligence. And now the
ecc¤c |-.¤e! '-¤' |¤ !¤e ccJ¤!.v ¤- -¤-|¤ cc.ec -¤c!¤e. ].!
with technology, this time with server virtualization.
ICICI Bank’s IT team, led by Vohra, has used virtualization to
arrest an electronic infrastructure spill-over at its datacenters.
`¤ev cc¤c||c-!ec ..d ¤¤v|c-| e.e. !c |J! ]e. .J¤¤|¤¤ -
little under 650 applications on a virtualized environment. It
required them to develop the unparalleled technology ability to
run 60 virtual machines on a single server but it saved the bank
over a crore annually in power, cooling and space.
The result? While the server count of its closest competitors
.J¤ |¤!c ]cJ. c. ]e c|¤|!. '´'´' |-¤' e.|ce |! cJ!ce.
with just a fraction of that. That’s incredibly low for a bank of
its size with assets amounting to Rs 384,970 crore (US$7899),
and with 1,400 branches and 4,530 ATMs across the country.
Big, Real Big
The business problem ICICI Bank forever grapples with lies at
the core of its standardized Windows NT architecture. Any ap-
plication typically requires a Web tier, an application tier and a
database tier— it’s a necessary evil. “Now if somebody asks for
a development environment, add three more. Move onto a test-
ing environment, add another three servers. So even if you are
deploying something as simple as a library management system,
you have to take nine servers into account. At ICICI Bank, we run
-'cJ! u´d -¤¤||c-!|c¤. ´c ]¤J.e. -v Vc¤.-.
Running that many application has a domino effect. It de-
mands an ongoing investment in servers, power consumption,
rack space, switching gear because as all these servers need to
be interconnected to storage and networking sub-systems for
management, availability and recoverability. “We were actually
.c..|ec !¤-! .e .e.e e¤c|¤¤ |¤ - e.e. c. -¤ e|ec!.c¤|c ¤.-.|.
he says. “It is a kind of an exponential problem. We were not
utilizing our servers properly but had to keep them because
some development or some testing could happen. Let’s say that
without virtualization, I’ll provide a server to run a library, holiday
home and collection applications on the same server. But if you
run a user acceptance testing (UAT) environment at the same
time, you’ll have problems. The world has found a way of con-
J|¤¤ !¤e -¤J]-c!J.|¤¤ |! -¤J]-c!J.e. Vc¤.- -v.
The problem wasn’t new. Though the problem piled up over
time, the bank’s IT team had only experimented with different
technologies from time to time to seek an effective solution.
But a couple of years ago, they started looking at a solution in
earnest. “We found an embryo of a solution that we believed
could work and improve over time to adequately arrest server,
rack and power sprawl. We considered it to be workable enough
!c !-.! c-''||¤¤ .|!¤. '! .- - !.J¤¤|e ]c. J. .ec-|| Vc¤.-.
Vohra refers to a two-year-ago old initiative that was funda-
mentally concentrated on server consolidation. Over the last year,
the scope of the project has expanded to include other infra-
structure consolidation, and an overall focus to reduce the bank’s
SYNDICATED ARTICLES
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

22
carbon footprint. But it’s been a journey of discovery, he admits.
“We can’t take credit for scripting a story to a design principle. We
found a way as we discovered new things and worked with dif-
ferent technologies. The idea was to improve our IT management
capabilities and to reduce power and cooling consumption. It’s
-'cJ! .c.'|¤¤ -.cJ¤c - !¤ec.v c] cc¤!.-|¤!. ¤e -v.
School of Hardknocks
Vohra formed a core team of 12 who were part of the NT
admin team in the shared services vertical that takes care of
the bank’s datacenters. The team ran a few proof-of-concepts,
and started by virtualizing environments that were lower on the
showstopper scale.
Vohra points out that out of the 650 applications, there are
about 200 applications, which nobody would even notice if they
were shutdown for a day. For example, a one-day outage of ap-
plications such as ATM cash analysis or dead-stock inventory MIS
generation would not raise any eyebrows.
But as the team started testing in live and more critical envi-
ronments, they set high-water marks for the thresholds of run-
ning applications in a virtualized ecosystem. About 14 months
ago, the team managed to run about 51 virtual machines on
- |¤¤|e ¤¤v|c-| e.e.. we .e.e !.v|¤¤ !c ]¤J.e cJ! .¤-!
we were running out of: compute resources, I/O bandwidth or
memory? We’d take say a server of 4-CPUs with 8-cores, run-
ning Windows and run a mixed load of applications on 51 virtual
machines. Not only did we break Sun Microsystem’s record of
.J¤¤|¤¤ ´d V| c¤ - e.e. 'J! .e !c¤¤ec |!. we !cJc¤ec - ]¤-
ure of 60 virtual machines on a single server. Of course, we later
ce!e.|¤ec !¤e c¤!|-| !¤.e¤c|c -! -'cJ! .´ |.!J-| -c¤|¤e.
says Vohra.
As the proof-of-concepts succeeded, turnaround times for
!¤e ¤.c|ec! .e.e ce]¤ec. -||c!!ec -¤c .c||ec cJ!. `¤e !J.¤-.cJ¤c
!|e ]c. !¤e |ce¤!|]c-!|c¤ -¤c .ec.e-| c] ¤.c'|e .e.e c¤|-
tored closely. “With technology, it is very easy to say that some-
thing doesn’t work. It is much harder to make it work. Obviously,
it takes effort to make something hard work. But the problem in
such cases, is that you don’t know what you are going to do but
you discover what you need to do. You do it and take the next
!e¤. ¤e -v.
As the team scrambled forward with its server virtualiza-
tion push, it had to pick its way through numerous technical
challenges that surfaced. High CPU and memory utilization
led to frequent performance degradation, which were in turn
compounded by network bottlenecks. This resource issue was
addressed by using dynamic memory and CPU allocation to
avoid creating performance chokepoints. Patching and upgrading
to higher versions were also undertaken to overcome various
technical limitations.
“You run into a choke and after some analysis you realize that
the internal disks are not good enough or you need a higher I/O
'-¤c.|c!¤ ¤|¤e. 0. vcJ |¤¤! ]¤c !¤-! !¤e -c¤|¤e | .J¤¤|¤¤
out of memory for no logical reasoning. The physical machines
you’re virtualizing, may add up to only 32GB of RAM, while
on a target machine you have 64. Since we were pioneers in
implementing such a solution at this scale, there were no easy
answers available. Not even with our solution providers. We un-
derstood the theoretical concepts well, but we became experts
'v |||¤¤ !¤.cJ¤¤ -|| !¤e ||e c|-.cc. ¤e .ec-||.
The Smaller They Are, the
Rarer They Fall
Today, ICICI Bank runs about 40 virtual machines on a server,
with VMware virtualizing the environments of database server
running SQL instances; application servers such as Websphere,
Pramati and Oracle; and Web-servers. Vohra explains that as a
strategy the current implementation has been executed only
on 8-CPU dual core, 64GB RAM servers so that the features of
over-commitment of memory and CPU resources are leveraged
and VMware is able to scale up instead of scale out, taking full
advantage of the Bank’s licenses
To decrease the use of multiple network cards, the servers
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

23
have been moved to the same subnet of the NAS storage. This
way, the same network card could be virtualized and deployed.
This also ensures that connectivity to the storage through iSCSI
is consistent and there are not too many hops.
“You can now over-commit resources. If I really needed 24
cores to do something spread across 30 applications I can now
give them two cores each. That is a total is of 60 cores but
¤¤v|c-||v ' ¤-e c¤|v .". -v Vc¤.-. `¤e |c¤|c | !¤-! ¤c! -||
the applications peak at the same time. Some of these systems
allow to over-commit resources beyond the boundaries of the
physical box.
The required disk space on the home server has been provi-
sioned on the connected iSCSI and Fiber Channel-based storage
to meet the requirements of hosted VMs. I/O bottlenecks had
been avoided by segregating storage connectivity on different
network interfaces, says Vohra. This requires separate network
cards for individual storage connectivity.
The virtualization effort forced various processes to be
relooked and improved. It has translated into speedy provision-
ing that takes no more than two minutes of. This has directly
reduced the average downtime of all the virtualized applications.
|-.||e.. !¤cJ¤¤ !¤e '-¤' '` !e- ccJ|c ¤.c||c¤ ]e e.-
ers as standby for 30 servers it took three hours to bring up
those server, in case of a failure. Each server had to be manually
cc¤]¤J.ec. |c-cec -¤c .e!c.ec. /¤c |] !¤e |¤c|ce¤! cccJ..ec -!
./|. |! ccJ|c !-'e - Jc¤ - ]e ¤cJ. !c '.|¤¤ J¤.
Now, with automatic provisioning and over-commitment in
place, running applications can failover seamlessly and automati-
cally. Features such as V-Motion have been employed to transfer
-¤¤||c-!|c¤ !c ¤|¤¤e. cc¤]¤J.-!|c¤ ||ce. SJc¤ |¤¤c-!|e c¤||¤e
fallback mechanisms have led to zero downtime.
Virtual machine slices with requisite operating system con-
]¤J.-!|c¤ ¤-e 'ee¤ c.e-!ec c¤ |.!J-||.ec c|' ¤-ce. ´|c¤-
ing feature of such VM slices help in the rapid provisioning of
resources when they are required. Downtime has been minimized
by provisioning alternate servers with the V-Motion feature for
auto failover of the entire system to another base server or for
individual virtual machine failover.
Though the business is exposed to all 650 applications, not
all the applications have been virtualized, says Vohra. There are
a few applications (running on 900 servers) that are too critical
and too monolithic to be put on a virtualized environment. Appli-
cations such as the core banking system and credit card applica-
tions demonstrate no advantage even if they were virtualized
as they need power-packed servers to run in any case. “You
don’t do it for religion. You do it only if it makes business sense.
Anything that doesn’t require super-sized servers has been vir-
tualized. All the new applications also are being virtualized. Only
about 20-odd applications are running on very old servers. We
will either retire them and have them virtualized eventually. They
-.e ¤-.! c] !¤e |-! ||e c] !¤e |cJ.¤ev. ¤e -v.
Such technological advancements have made an impact on
the resources and learning skill sets in ICICI Bank’s shared ser-
vices team. They need to stay abreast with new technologies. It,
however, doesn’t affect the application development team. As
long as they see a server name, an IP address, they have local
admin rights to the server; they don’t know whether that server
translates into a pizza box or waferware, Vohra says.
Vohra maintains that given the amount of money a CIO needs
to sink in a project like this, it had better make sense and a CIO
better believe in what he or she is doing. At ICICI Bank, once the
proof-of-concepts were successfully executed, there was no
doubt over what would work and what would not.
But Vohra warns of peripheral things a CIO can never test, un-
The virtualization effort forced
various processes to be relooked and
improved. It has translated into speedy
provisioning that takes no more than
two minutes.

S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

24
less they get their feet wet. “We took a considered view. If some
of these don’t run, we were comfortable that we had the ability
to work with our partners to get upgrades or patches to make
them run. When you are a pioneer, you are bound to trip up. But
if your relationships are strong, then your partner will also work
.|!¤ vcJ -¤c c|e vcJ. ¤.c'|e. -v Vc¤.-. '´'´' |-¤' ¤-c
quarterly targets of how many net servers were de-inducted.
Payback was how many physical servers were sold for scrap or
sent for recycling.
“In the end, we saw clear business payback. Business may
or may not see it because for them it is just an event. They will
see results only when an application goes down. In the life of a
business manager, it will happen only three times. If it is 4AM, he
is not bothered. But if it is at 10AM, and if it is a trading applica-
tion, he would kill you for even 10 minutes of downtime. When
an incident happens, a 3-hour or a 30-minute outage hurts busi-
ness equally. Applications ran reasonably smoothly earlier but
¤c. !¤ev cc¤! ee -¤v cJ!-¤e -! -||. ¤e ¤c|¤! cJ!.
Pocket Power
Although users are not consciously aware that the applica-
tions they use everyday have been virtualized but there are still
e-J.-'|e. cec¤!.-'|e 'J|¤e 'e¤e]!. `¤e cc¤c||c-!|c¤
c] ..d e.e. !c ]e ¤- .eJ|!ec |¤ -¤ -¤¤J-| c¤ex -|¤¤
of Rs 1.15 crore on account of power, cooling and space, says
Vohra. The break-even period, considering capex, has been about
|x c¤!¤. .|!¤ ¤.c|ec!ec -|¤¤ ]c. ]e ve-. c] -'cJ! |
5.7 crore. ICICI Bank’s IT team buys servers today based on their
power consumption. It is not that one company is worse than
another, or that one model is better than another, says Vohra.
“You should never generate more heat and consume more power
than you can avoid. Would I buy a car, which is cheaper but con-
sumes more gas? It is the same thing. At the end, you want to
pay a little premium to buy a car that consumes less fuel. There
are models of servers that are of similar compute capacity but
cc¤Je -|c! !.c !|e !¤e ¤c.e. c] -¤c!¤e.. ¤e -v.
Today, Vohra is in a position to point this out because he
knows. “The electricity bill at my datacenter alone has come
cc.¤ 'v | /d |-'¤. ¤e -v.
The procurement and indenting process has witnessed a dra-
matic change, too, after the virtualization revolution at the bank.
All the business units in the ICICI Group have been instructed
to not indent or procure physical servers. The only unit they are
allowed to procure their indent is in cores. Instead of asking for
physical servers, they are supposed to ask for a certain number
of cores because for every application, the unit of measurement
is no longer a computer or a CPU but the lowest measurement
unit in commercial terms.
“Fundamentally, the DNA of the enterprise has changed.
Budgeting is now based on cores. Soon, going forward, we will
move over to threads as the unit to indent and budget. The
only people allowed to count servers are those from the shared
e.|ce ¤.cJ¤ .¤c -¤-¤e cJ. c-!-ce¤!e.. -v Vc¤.-.
V|.!J-||.-!|c¤ -¤c !¤e .eJ|!|¤¤ ¤.ee¤ '` 'e¤e]! ¤-e e]-
fectuated the organization to earn valuable carbon credits. The
enterprise intends to encompass various organization-wide
green initiatives that go beyond its datacenters to create a
meaningful and substantial trust fund of carbon credits that can
be leveraged at the right opportunity.
“The logic for pursuing this initiative is that it not only ad-
dresses the global phenomenon of environmentally responsible
'J|¤e 'J! -|c |e-c !c e]]c|e¤cv ¤-|¤ -¤c -cc|-!ec cc!
-|¤¤. / - .eJ|!. .e -¤-¤e !c cJ! ]-'. ec|e |e-¤ ¤.c-
cee -¤c -|c 'e¤e]! ].c 'J||c|¤¤ -¤ e¤|.c¤e¤!-||v -.-.e
c.¤-¤|-!|c¤. ¤e -v.
Like they say, good things come in small packages.
Virtualization and the resulting
green IT beneñIs have effecIuaIed Ihe cr-
ganization to earn valuable carbon credits.

S
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SYNDICATED ARTICLES
Doing the Math on
Virtualization
One IT director breaks down the savings that
he reaped from a server revamp and technol-
ogy from VMware and Vizioncore.
BY JOANNE CUMMINGS
Money is tight. Performance is declining. Your servers are
all nearly three years old and pretty soon, their high-priced main-
tenance contract is about to kick in. What do you do?
If you’re like Tim Hays, you take the money you would have
spent on maintenance and instead use virtualization to not only
|¤.ce ¤e.]c.-¤ce. 'J! |¤c.e-e '` e]]c|e¤cv. cJ! ¤c.e. -¤c
cooling costs 45 percent, and make disaster recovery as easy as
pushing a button.
' ¤Je ' c.e c] - 'J|¤e ¤Jv ].! -¤c -¤ '` ¤Jv ecc¤c.
says Hays, director of IT at Lextron, a wholesale distributor of ani-
mal health pharmaceuticals with 600 employees in 44 locations
across 19 states. “I look at IT as a business enabler. Virtualization
wasn’t something that we did just because it was the next cool
!¤|¤¤. '! -ce - |c! c] ecc¤c|c e¤e.
Start small
Hays, who told his story at the recent Network World IT Roadmap
Conference in Denver, didn’t jump into virtualization all at once
|ee .e|-!ec !c.v c¤ c.e |ec¤ |e-.¤ec). || ].! ]c.-v .-
in 2005, when he was faced with paying $300,000 over three
years to maintain the three Unix servers and direct-attached
storage units supporting his ERP, inventory management and
sales management functions. All told, the three servers were
responsible for handling $1.75 million in sales transactions daily.
At the time, virtualization a la VMware was not well-known.
Instead, he used the $300,000 to replace the Unix servers with
one PA-RISC-based HP-UX server running HP’s Virtual Partition
(vPAR) software, which enabled the one server to host three
virtually partitioned servers. He also put the server on a Fibre
Channel-based HP EVA 5000 storage-area network. (Compare
storage virtualization products.)
´c!-.|e. |! .- - .-¤. ¤e -v. ¤c!|¤¤ !¤-! !¤e ce¤.ec|-!|c¤
for the new equipment was $100,000 per year, the same as he
would have been paying for maintenance per year on the old gear.
But reports now ran 30 percent to 40 percent faster, and user
complaints declined.
“People were waiting less time to get information, and they
didn’t have that problem where they were outworking the ability
c] !¤e v!e !c .e!.|ee !¤e c-!-. ¤e -v.
At the same time, the company also needed to upgrade its
ERP databases from Informix 7 to 9.4. “We had 1,500 programs
that we needed to regression test against new hardware, a new
c-!-'-e. ¤e. cee|c¤e¤! !cc| -¤c - ¤e. c¤e.-!|¤¤ v!e.
Hays says. Buying new equipment enabled Hays to install all the
new software and thoroughly test everything before cutting
ce.. 0¤ce ¤| !e- .- cc¤]ce¤! ee.v!¤|¤¤ .cJ|c .c.'. !¤ev
simply switched users from the old equipment to the new. The
whole process, which could have taken six months in the past,
took just 45 days.
Success breeds success
Faced with a similar situation on the Wintel side of the house
in August 2006, Lextron once again calculated its options. The
company had been using 40 physical servers to support its Micro-
soft Windows environment, including Exchange, SharePoint, CRM
-¤c we' e.|ce. - .e|| - ]|e -¤c ¤.|¤!.
“We had servers that needed to be replaced and we had a
track record of taking multiple physical servers and combining
!¤e |¤!c c¤e. |-v -v. V|.!J-||.-!|c¤ eeec ||'e -¤ c'|cJ
¤.c|ec! !c -! |e-! |¤e!|¤-!e.
The company decided to virtualize its 40 servers and run
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

25
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

26
them all on a cluster of two HP x64 DL-360 servers, each with
20GB of memory and running VMware Virtual Infrastructure 3
(VI3) software. Hays says the decision to use just two physi-
cal servers hinged on VMware’s licensing costs. “It’s just a math
¤.c'|e. |-v -v. ' c-¤ 'Jv c.e V|.-.e ||ce¤e -¤c ¤.e-c
them over cheaper servers, or I can buy more expensive, robust
servers and fewer VMware licenses. I just projected the total cost
of ownership for a 36-month period, and using these four boxes
.- c¤!|-| -!¤e-!|c-||v.
Plus, the move enabled Lextron to eliminate three racks of
equipment, along with 45 percent of its power and cooling costs.
And it increased productivity overall, especially in IT. “If someone
¤eecec - !e! e.e. |¤ !¤e c|c .c.|c. vcJ ¤-c !c ]¤c - ¤¤v|-
cal box, and make sure it had the right physical features -- CPU,
ec.v. !¤e .|¤¤! ¤e!.c.' cc¤¤ec!|c¤. |-v -v. Sce!|e.
we had to purchase a new server just to test a particular applica-
tion. That’s all eliminated with virtual machines. They’re very easy
!c 'J||c J¤ -¤c !-'e '-c' cc.¤.
Plus, with virtualization and fewer physical servers, Lextron
was able to go to the next big step, implementing what Hays
c-|| ¤J¤-'J!!c¤ c|-!e. .ecce.v.
“Because of virtualization, we were able to rent a much small-
er facility for a disaster-recovery center -- if you looked at it, you
|¤¤! ee¤ !¤|¤' |! .- - '.cc c|ce!. ¤e -v. `¤e ´c|-!e.-
recovery] site has just two server racks, an inline cooling unit, and
UPS and battery backup. Plus, Hays uses Vizioncore’s vReplicator
software to replicate virtual machines from the primary site to
the backup site.
“I have virtual Exchange Server ‘A’ sitting in my production
data center, and multiple times a day, Vizioncore takes a snapshot
of everything that’s unique about it — the server, the database
— and it passes that data over to virtual Exchange Server ‘B’ at
!¤e ´c|-!e.-.ecce.v] |!e. -v |-v. ¤c!|¤¤ !¤-! !¤e c|-!e.-
recovery site is located 3 miles away and is linked to the produc-
tion site via a 180Mbps connection. “From a command console, I
can tell it to automatically switch over to Exchange Server B and
run all my users, and my users wouldn’t know the difference. It’s
¤J¤-'J!!c¤ ´c|-!e.-.ecce.v].
Vizioncore cost $600 per server license, and Lextron uses
it for 26 critical servers. “Twenty-six times $600 is less than
S|´.ddd. ¤e -v. Sc |! -¤c!¤e. -.e- .¤e.e .e |J! -|c. w¤v
.cJ|c¤! .e ¤e¤c !¤| c¤ev`
In the end, virtualization was just a no-brainer for Lextron. “I
got more productivity from my staff, I got better utilization of the
equipment that I had, I got a better return on the invested capital
]c. ecJ|¤e¤!. -¤c ' .ecJcec ¤c.e. -¤c ccc||¤¤ cc!. |-v -v.
|e ¤c!e !¤ce 'e¤e]! c-e c¤ !c¤ c] !¤e -|¤¤ ¤e ¤c! |¤
!¤e ].! ¤|-ce. 'v 'Jv|¤¤ !¤e ]cJ. e.e. -¤c V'. !c .e¤|-ce "d
e.e.. '! .- e-v -!¤.
Joanne Cummings is a freelance writer in North Andover, Mass.
She can be reached at jocummings@comcast.net.
Major shift to cloud
IT services inevitable,
IDC says
BY JON BRODKIN
IT infrastructure and services delivered over the cloud will
'e J'|cJ|!cJ .|!¤|¤ ]e ve-.. -¤c e¤cc. !¤-! |¤¤c.e !¤e ¤|]!
from on-premises software to Internet-delivered technology will
be left in the dust, IDC analyst Frank Gens predicted at the IDC
Directions conference in Boston Tuesday.
“If you are not thinking about and acting on delivering your
c.¤ c]]e.|¤¤ !¤.cJ¤¤ !¤e c|cJc ´.|!¤|¤ ]e ve-.]. vcJ .c¤! 'e
|¤ !¤e -|¤!.e- -¤vc.e. ´e¤ -|c. /c|c|¤¤ !¤e c|cJc .c¤!
.e-||v 'e -¤ c¤!|c¤.
´e¤ ce]¤ec c|cJc cc¤J!|¤¤ - cc¤Je. -¤c 'J|¤e
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

27
products, services and solutions delivered and consumed in real
!|e ce. !¤e '¤!e.¤e!. |c.e !ec¤¤|c-||v. ´e¤ -|c !¤e c|cJc |
made up of shared services under virtualized management that
are accessible to people and other services over the Internet in a
pay-per-use and self-service model.
An important distinguishing feature under the IDC cloud
ce]¤|!|c¤ | !¤e Je c] '¤!e.¤e! !-¤c-.c !c cc¤¤ec! c|cJc e.-
vices to one another and to the systems within enterprise data
centers, he said.
Cloud services break down into six main categories, according
to Gens— applications, collaboration tools, storage, servers and
processing, IT management, and platforms.
IDC surveys show 26% of businesses using the cloud for
IT management, 15% to bolster server and storage capacity, a
quarter for collaboration and business applications, and 17% for
application development and deployment.
A common perception is that most customers embrace cloud
services because of the cost. While that is certainly true, Gens
said IDC surveys show the No. 1 attribute driving people toward
cloud services is the ease and speed of deployment.
Users are telling CIOs they want faster delivery of services,
and the cloud helps achieve that goal.
“That alone guarantees that over the next several years the
c|cJc cce| .||| 'e e.v |¤c.!-¤! ]c. ´'0. ´e¤ -|c.
0!¤e. '|¤ e|||¤¤ ¤c|¤! |ce¤!|]ec |¤ Je. J.ev |¤c|Jce
lessening the need for in-house IT staff, paying only for what you
use and when you use it, the standardization of IT systems, and
access to the latest functionality.
`¤e !c¤ cc¤ce.¤ |ce¤!|]ec |¤ '|´ Je. J.ev -.e ecJ.|!v.
performance, availability and barriers to integrating cloud services
with in-house IT systems. “We’re going to have to do a lot of
work around service-level assurance to move this market into the
-|¤!.e-. ´e¤ -|c.
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formation and Communications Technology]: New risks, rules and
c¤¤c.!J¤|!|e. ||c¤c|- ´-... -J!¤c. c] `¤e ||¤ S.|!c¤ -¤c |ce '`
Matter? is scheduled to speak at the end of the conference.
Recession will be a change agent in the technology world,
forcing customers and vendors to adapt to new realities, IDC
c¤|e] .ee-.c¤ c]]ce. 'c¤¤ ´-¤!. -|c. w¤e.e- '|´ .- ¤.ec|c!-
ing nearly 6% growth in worldwide IT spending back in August,
!¤e -¤-|v! ]. ¤c. 'e||ee ¤e¤c|¤¤ .||| |¤c.e-e 'v |J! ¤-|]
of one percent this year. Spending should rebound with 4.4%
growth in 2010, IDC forecasts.
0J! !¤e.e. ¤c!¤|¤¤ | ]-|||-.. ´-¤!. -|c. we.e |¤ !¤e |c!
of the worst economic downturn since before the computer was
|¤e¤!ec |¤ |'"/.
But the move toward cloud computing — or utility computing
as it is also called — shows that the IT industry is still stable and
has room for growth, speakers said. If IT is truly a utility, like water
or electricity, it’s probably a good business to be in, Gantz said.
Gens, who has traveled throughout the world the past six
weeks and spoken with hundreds of CIOs, said “one thing I have
learned during this trip is that this whole topic about cloud, Inter-
net delivery of IT offerings, is really capturing the imagination of
- |c! c] ´'0 -¤c ||¤e-c]-'J|¤e ¤ec¤|e cJ! !¤e.e.
Pepsi Bottler
Swallows Skepticism
About Virtualization
One IT leader’s cautious move into virtual serv-
ers and storage virtualization tastes sweet so
far. Here’s a look at the strategy and savings.
BY JON BRODKIN
Christian Messer was a virtualization skeptic not long ago.
Now he swears by virtual servers.
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

28
“I was very skeptical. I think it’s more mentality than anything
e|e. -v |ee.. .¤c | |e-c|¤¤ - e.e. -¤c !c.-¤e |.!J-|-
ization project at G&J Pepsi Cola Bottling Company in Cincinnati.
“It was more of a lack of understanding on my part. As I got it
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|ee| ¤.e..
Messer, manager of information systems at G&J, explains that
he had suffered numerous system crashes with Microsoft Ex-
change on physical servers and wasn’t sure how it would perform
c¤ |.!J-| c¤e. |J! !¤e ¤e.]c.-¤ce !J.¤ec cJ! !c 'e ]¤e. -¤c
virtualization has allowed Messer to drastically reduce disaster
recovery times.
“I did a test employment with Exchange 2007 in a virtual
-c¤|¤e e¤|.c¤e¤! -¤c ' ¤c! |¤c.ec|'|e .eJ|!. ¤e -v. '!
performance was outstanding. I’ve got a much higher comfort
level now with virtual machines than with physical servers. I’m
able to leverage a lot more of my technology and get some ROI,
.¤|c¤ |cc' ¤.e-! !c !¤e -cccJ¤!-¤!.
G&J is an independent bottler with more than 1,000
employees.
Before deploying virtualization last November, Messer had 78
servers, mostly from Dell and HP, and is in the process of con-
solidating them into just 16 Dell blade servers by the end of this
year. (Compare blade server products.)
With VMware’s hypervisor on quad-core servers, he’s running
two virtual machines on each core for a total of eight per physi-
cal server.
S¤-.e¤c|¤!. |xc¤-¤¤e. S0| -¤c 0.-c|e c-!-'-e -¤c ]|e
servers are all running on virtual machines. Before virtualization
Messer was using less than 10% of his server resources, and he
still has room for improvement. He says he hasn’t found an ap-
plication that he wouldn’t trust on a virtual machine.
w|!¤ e-c¤ '-'v !e¤. .e .e.e !¤.c.|¤¤ c.e -! ´V|.-.e]
|S¨. ¤e -v. /! !¤| ¤c|¤! ' ¤-e¤! !¤.c.¤ e¤cJ¤¤ -! |!. ' ccJ|c
probably double everything I’ve got on the ESX servers and still
¤c! 'e -! ´d' J!|||.-!|c¤.
Messer is moving his storage from tape to a Dell EqualLogic
iSCSI storage-area network and virtualizing both servers and
storage. Having storage and server virtualization work together
is key, Messer says, describing the ability to abstract logical
storage from physical storage and easily reallocate storage
units to virtual machines.
“In my opinion, it’s necessary to have both if you want to
¤e! -|| !¤e 'e¤e]!. ¤e -v. '! -'e vcJ. ´c|-!e.] .ecce.v
time quicker. The ability to grab snapshots of virtual machines,
data volumes, replicate those and replicate changes. . . . Hav-
ing multiple layers of redundancy scattered across your WAN,
for me that’s extremely valuable. I put more value on that than
-¤v!¤|¤¤ e|e.
It took about a half-hour to get back up and running after a
SQL virtual server crashed recently. That’s a huge improvement
over the days when G&J had everything on tape.
'J! cJ!|ce c] ]e ve-. -¤c. |] vcJ |c! - e.e.. vcJ .e.e
rebuilding and reloading an operating system and grabbing all
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e|¤¤! !c |d ¤cJ..
Messer estimates he’s saving between $11,000 and $13,000
per year because of storage and server virtualization.
That’s not to say life with virtualization is perfect. USB storage
devices aren’t compatible with G&J’s virtual machines, Messer
says. He’s working with VMware to solve the problem but hasn’t
cce J¤ .|!¤ - ]x ve!.
“You can make the USB device visible to your ESX Server,
¤c.ee. vcJ. |.!J-| e.e. .c¤! ee |!. ¤e -v. '! - |¤c.
|||!-!|c¤.
S
A
SYNDICATED ARTICLES
INTRODUCTION
1: GETTING STARTED
2: MAKING THE MOST
THROUGH VIRTUALIZATION:
WHAT TO EXPECT
3: DATACENTER
OPTIMIZATION: THE FAQS
4: THE AGILE BUSINESS
5: BUSINESS CONTINUITY AND
DISASTER RECOVERY
6: VISION FOR THE FUTURE
SYNDICATED ARTICLES
– Bank Scores with Server
Virtualization
– Doing the Math on
Virtualization
– Major shift to cloud IT
services inevitable
– Pepsi Bottler Swallows
Skepticism About
Virtualization
– 5 Steps to A Big Picture
Approach to Virtualization
in 2009

29
5 Steps to A Big
Picture Approach to
Virtualization in 2009
Think far beyond your servers from the start if
you want to reap virtualization’s wider poten-
tial in the data center, says Dave Robbins, CTO,
Information Technology for NetApp. Here’s his
starting checklist for IT pros who want to take
a holistic view of virtualization in the enterprise.
BY DAVE ROBBINS
In the current economic climate, organizations are cutting IT
projects that are unable to show a strong return on investment
within twelve months. But buoyed by the prospect of increased
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|'|e cce| !c -||¤¤ .|!¤ ¤.|-.v 'J|¤e ]J¤c!|c¤. |.!J-||.-!|c¤ |
one of the IT projects getting almost universal buy-in from CIOs.
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ec cc¤ecJe¤ce -¤c cc¤|ex|!|e !¤-! -.e 'e|¤¤ c.e-!ec. `¤ee
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want to ensure that they are taking a holistic view of virtualization.
1. Assess your virtual
environment readiness
You can’t optimize what can’t measure. Detailed assessment is
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provide a baseline measurement that can be tracked and reviewed.
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A well-architected shared storage environment can help IT groups
enable the advanced features of virtualized server environments
without adding the overhead of additional management.
3. Revisit data backup and
recovery plans
Virtualization means relying on fewer physical systems to process
more tasks. Consolidating on fewer machines without redesigning
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and limit overall project success. CIOs should carefully consider
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site failure and ensure information is properly protected.
4. Consider thin provisioning
Server virtualization enables the rapid provisioning of applications
and administrators should consider thin provisioning for their en-
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and enable faster time to market.
5. Dig into data deduplication to
max|m|ze efñc|ency
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data such as the same operating system and application software.
Deduplication technologies allow an organization to use and man-
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|c. c.e |¤]c.-!|c¤. ||! www.vmware.com/go/intel

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