How to Cut Costs and Save Time

with Virtualization for SMBs

© 2009 VMware Inc. All rights reserved

The Problem

Overwhelming complexity
>70% of IT budgets just to keep
the lights on
<30% of IT budgets goes to
innovation and competitive
advantage
VMware Mission – “Make the Plumbing Disappear!”

“Make the plumbing

disappear – in the
Datacenter, in the Cloud,
on the Desktop…
and for the SMB”

“How can I extend my server and storage investment?”

“How can I deploy new services faster and with less effort/training?”
“How can I make my applications, esp. email, more available?”
“How can my backups be faster and more predictable?”
“How can I stop worrying about daily IT operations and plan for the future?”
The Goal

IT
Efficiency
as a
Service Control
(Internally or
Externally
Provisioned)
Choice
The Case for Virtualization

© 2009 VMware Inc. All rights reserved

Why Virtualize with VMware and Dell?

With packages starting as low as

1. VMware virtualization will get you $330 per server, VMware
10x productivity on your servers virtualization is a must-have for
every IT environment
2. VMware virtualization delivers
affordable business continuity,
• Increase power of every server
enabling “Always On IT”
• Increase application availability
3. VMware vSphere and Intel® • Protect your data
Xeon® processors deliver:
 Greater flexibility and agility
 Cost-effective availability and continuity
 Higher VM density
 Increased energy efficiency
How Do I Get 10x Productivity On My Servers?

Physical World Virtualized World

Hardw
are

Traditional x86 Architecture Virtualization:

• Legacy rule: Run only one application • New rule: Run multiple applications per
per server because single application server because OS/applications are
crashes result in OS or server failure isolated from one another
• Typical hardware utilization under 8% • Typical hardware utilization 80%
Impact on Small and Midsized Businesses

1 Reduce Physical Infrastructure Cost

3-Yr Cost Savings

Opportunity*
2 Increase Staff Productivity 20 Servers 50 Servers
$290k $774k
1 month 3 month
Payback Payback
3 Increase Application Availability
* VMware ROI Calculator

4 Increase Data Protection

 Immediate Savings on Hardware

1 Reduce Physical Infrastructure Cost ATER VMware

After VMware
Before VMware
More applications per machine
= less machines

Servers 10 Servers 3
Utilization 8% Utilization 80%
Annual Support $5,000 Annual Support $1,500
Costs Costs
Annual Power and $8,334 Annual Power and $2,499
Cooling Costs Cooling Costs

Over $9,000 per year in savings!!!

Get More Done with Existing Staff

2 Increase Staff Productivity

% of Time Spent on Do more work with the same

Maintenance number of people = operating cost
72% savings
Drivers of productivity
improvements include
Zero downtime maintenance
24% Built-in high availability
Dynamic patching
Instant provisioning
Before VMware After VMware Automated disaster recovery

Source: IDC and VMware TAM program

 Keep Your Business Running

3 Increase Application Availability Average Downtime

Costs*
Typical downtime 4 hours
Zero down-time failover of failed servers per failure
APP APP APP APP APP APP Lost revenue per $2,416
OS OS OS OS OS OS
hour
ESX ESX
Lost staff $50/hour
Failed OS or server
productivity per hour
Average failures per 2
Detects server failures and migrates the VM to year
a different physical server without human
intervention $29,328 per year!

Two levels of Application Protection

Fault Tolerance Zero-downtime failover; VM’s migrate off of failed servers Included in Acceleration kits

High Availability Automated reboot of VMs in the event of physical server failure Included in Acceleration kits & Essentials Plus

* Average company with 25 employees, 10 servers and $25m a year in sales

Ensures Data is Protected

4 Increase Data Protection

Agent-less, disk-based backup and
recovery of your VMs
VM or file level restore
Incremental backups and data
de-dupe to save disk space
Built in data protection
saves time and money
• Simplifies administration
• Faster recover times
• Less downtime = higher
staff productivity

APP APP APP

OS OS OS

ESX
Agent-less snapshot
technology
De-duplicated
Storage
 Business Continuity: The Big Picture

Business Continuity = Minimizing Downtime

Availability expectations How much does down
continue to increase time cost your business?
• RTO’s decreasing from Average Downtime Costs*
>24 hours to <12 hours Typical downtime per 4 hours
failure
Cost of downtime continues to Lost revenue per hour $14k*
rise Lost staff productivity $50/hour
• Increasing dependence on x86 per hour

infrastructure Average failures per 2

year
Savings per Year $120k

40% of small businesses never reopen following a disaster. Of the

remaining companies, at least 25% will close within 2 years.
-- U.S. Department of Labor
* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)
Why Refresh your Hardware

© 2009 VMware Inc. All rights reserved

Server Refresh Opportunities in 2011

If you delayed ~76% of the server install

refresh in 2009, then base is still up for refresh
you’re not alone Estimated 34% single-core
and 42% dual-core1
IDC believes replacement
Approximately
cycles being1delayed
million servers have had their
from 3-4
replacement
years todelayed by ayears.
every 4-5 year.
Source IDC, 2009
Source: Gartner press release
http://www.gartner.com/it/page.jsp?id=1209913
Approximately 1 million
2010 will markservers
an important
havereturn to installed
had their
base refreshes driven by an
replacement uptick in
delayed byenterprise
a
budgets, new technological innovations,
year. and a
return to economic growth. Source: Gartner press release
Source: Intel. Intel® Xeon® shipments, 2005-2009.
Source: IDC, February 2010
http://www.gartner.com/it/page.jsp?id=1209913

Maintaining Aging Servers Limits Innovation & Growth

Now is the Time to Refresh!
1 Source: IDC 2009 Q4 Server Tracker. Install base calculated by using this IDC data and a standard life-cycle distribution, and assumes 4- to 5-
year replacement cycle in 2008 and 2009 when the recession hit.
VMware vSphere™ Editions for SMBs

© 2009 VMware Inc. All rights reserved

vSphere 4.1 SMB Product Line

vSphere Essentials vSphere Essentials Plus vSphere Advanced

Acceleration Kit
Cost-effective Cost-effective Full-featured
server availability virtualization
consolidation and data solution for
and mgmt for protection for all size
small offices small offices environments

• Update Manager • High Availability • Fault Tolerance

• Virtual Center Foundation • Data Recovery • vMotion
(management console) • Update Manager • vShield Zones
• 3 dual CPU licenses • Virtual Center Foundation • Hot Add
• Includes 1-year of support (management console) • High Availability
• 3 dual CPU licenses • Data Recovery
$995 • Update Manager
$3995 • Virtual Center Foundation
Only $330 per server $2995 (25% off - limited time only) (management console)
• 30 Training Credits (optional)
Under $1,000 per server • For 3 hosts
$10,495
**All Prices USD RRP**
vSphere Acceleration Kits – 2011 Lineup

vSphere Advanced Acceleration Kit – 36% off list

• One of the most popular kits in 2009, VMware has

extended the Advanced Kit into 2010

• 6-CPUs of vSphere Advanced, features includes

• VMotion
• Fault Tolerance
• Data Recovery
• High Availability

Kit list price: $10,495 • vCenter Server Foundation

Component list: $16,470

Savings: $5,975 (36%)
Part #: VS4-AD-AK
vSphere Acceleration Kits – 2011 Lineup

Introducing the new vSphere Midsize Acceleration Kit – 25% off list

• We’ve listened to partners and customers who have

requested a bundle package with vSphere Enterprise
and vCenter Standard
• 6-CPU license of vSphere Enterprise, features include:
• DRS/DPM
• Storage Vmotion
• Vmotion
• High Availability
• Fault Tolerance
• Data Recovery
Kit list price: $17,795
• vCenter Server Standard
Component list: $23,750
Savings: $5,955 (25%)
Part #: VS4-MS-AK
 VMware Offers The Lowest Cost Per Application (VM)

VMware VMware Other

Essentials Ess Plus Solutions
2-way server (4GB RAM) $6,000 $6,000 $6,000
Cost: Guest Windows licenses1 $5,998 $5,998 $5,998
Cost: Virtualization license* $330 $999 $0*
Subtotal $12,328 $12,997 $11,998
Total VMs2 (512MB each)** 12 12 10
Cost per VM $1,027 $1,083 $1,199
Plus:

VMware software is more reliable, has more features and better performance
than any other virtualization product on the market

VMware beats the competition even if their products are “free”

*single server cost when purchased in 3-server bundle
**average VMs per physical machine
Resources and Next Steps
• VMware solutions for Small and Midsized businesses:
http://www.vmware.com/solutions/smb/
• Intel’s IT center – solutions to address your IT needs from client to server
http://www.intel.com/itcenter
• Learn more about the Intel | VMware solution:
http://www/vmware.com/go/intel
• Find a VMware Partner:
http://www.vmware.com/partnerlocator
• Find an Intel Distributor:
http://www.intel.com/buy/index.htm
• Download ESXi for Free:
http://www.vmware.com/go/get-free-esxi/
• Evaluate VMware vSphere free for 60 days:
http://www.vmware.com/go/EvaluatevSphere
• VMware Go™ — the Quick and Easy On-ramp to Virtualization
http://www.vmware.com/products/esxi/go.html
Thank you!

© 2009 VMware Inc. All rights reserved

Appendix slides
 Product Feature Comparison

Product Feature Enterprise Plus Advanced Essentials Plus Essentials

Acceleration Kit Acceleration Kit ($2,995) ($995)
($20,895) ($10,495)
Max DRS, DPM, Storage VMotion,
functionality Host Profiles, Distributed Switch

Fault
Zero down-time failover
Tolerance
Max Can scale beyond 3 physical
scalability servers
Moves running VMs between
VMotion
physical servers
vShield
Integrated security
Zones
High Automated restart of failed
Availability physical machines

Data Agent-less, deduplicated

Recovery backups

Update
Updates all VMs simultaneously
Manager

Includes 3 dual-CPU licenses

 VMware vSphere = Lowest Cost Per Application

$81,232
$72,731 (with 2 yrs SA)
$8,954
$1,499
(with 2 yrs support)
Management* Cost to deploy 15 VMs
Management*
$4,388 $26,991 VMware vSphere 4
vSphere Essentials Plus + Windows Server Essentials Plus
SnS DataCenter Ed.
$26,991
Windows Server
$4,849 per App
DataCenter Ed. $14,337
Network, Power,
$13,504 Space
Windows Server 2008
Network, Power,
$4,500
with Hyper-V
Space
Storage
$4,500 $5,415 per App
Storage
$26,450
$21,850 Server HW
Server HW Use the VMware Cost-per-
Application Calculator to figure
6:1 average 6:1 average
consolidation ratio consolidation ratio** out your cost-per-application

Essentials Plus costs 10% less even at equal

consolidation ratios
* includes cost of servers and software (management, OS, SQL) required by the virtualization solution. vSphere Essentials is bundled with one license of VMware vCenter
Server Foundation. Microsoft management software includes System Center Virtual Machine Manager Workgroup Edition, System Center Essentials
** Assumes 1.5 VMs per core in a 2 socket dual core server, 16 GB RAM ($5,000 estimated unit cost), iSCSI storage