© 2014 VMware Inc. All rights reserved.

Building the Business Case for Cloud Automation in vCloud Suite

Dave Funnell Strategic Account Executive

Agenda

The Relationship Between The Software Defined Data Center and Cloud Automation

Business Motivations

• Accelerating Service Delivery

• Cost Efficiency

Customer Benefit Examples

• Improving Operational Efficiency

• Optimizing Resource Utilization

• Accelerate Virtualization Deployments

Results from VMware Journey to IT as a Service Survey

Q&A

VMware Delivers the Foundation for the Software Defined Enterprise

3

Wait Wait

Infrastructure Service Delivery Days

Application and Change Delivery Weeks

Work Wait Wait Wait Work Wait

Changes

Compute

Physical

Hardware

Private

Clouds

Public

Clouds

Hybrid Cloud VMware &

vCloud Data Center

Partners

Virtualized Infrastructure Abstract & Pool

Compute

Abstraction =

Server

Virtualization

Network

Network

Abstraction =

Virtual

Networking

Storage

Storage

Abstraction =

Software-Defined

Storage

VMware Delivers the Foundation for the Software Defined Enterprise

4

Policy-based

Management &

Automation Cloud Automation Cloud Operations Cloud Business

Software-Defined Data Center

Private

Clouds

Public

Clouds

Hybrid Cloud VMware &

vCloud Data Center

Partners

Virtualized Infrastructure Abstract & Pool

Compute

Abstraction =

Server

Virtualization

Network

Abstraction =

Virtual

Networking

Storage

Abstraction =

Software-Defined

Storage

Management – The catalysts that empowers the software defined data center

Compute

Physical

Hardware

Network Storage

Catalyst: a substance that causes or accelerates a chemical reaction

Wait Work Wait Wait Wait Work Wait Wait

Minutes

Infrastructure Services Application Delivery

The catalyst that empowers the software defined data center

Changes

Management Automation

Virtualization

► Accelerate service delivery

(weeks days)

► Resource pooling

► HW consolidation

The Next Wave of IT Efficiency IT

Eff

icie

ncy

Time

► Accelerate service delivery

(days min)

► Improve operational efficiency

► Optimize resource utilization

► Reduce complexity via

standardization

Cloud

Automation&

Management

51%

56%

42%

36%

45%

42%

39%

40%

35%

28%

37%

30%

41%

43%

34%

37%

39%

37%

36%

35%

"Cloud native" applications

Automation

Horizontal scaling

Hybrid environments

Vertical resource scaling

Service orientation

On-demand provisioning

Self service

Policy driven

Service broker

Substantial Impact Some Impact

New Cloud Technologies Driving IT Operational Transformation

Source - VMware 2013 CloudOps Transformation Benchmark

Cloud Automation Business Motivations

Agility/Speed 57%

Business Allignment

12%

Cost 21%

Defend IT 3%

Quality 3%

Enable Hybrid 1%

Don't Know 2%

Increase

Business Agility

Consumerization

of IT

Improve

IT Efficiency

Optimize HW

Utilization

Source: Gartner -The Drivers and Challenges

of Private Cloud Computing, Mar 2012

Efficiency = Agility

Cloud Automation Savings

Private Cloud Public Cloud

RO

I B

en

efi

ts Improved

Operational Efficiency

Accelerated

Virtualization Deployment

Optimized

Resource Utilization

Capacity Bursting

Commodity Pricing

Hybrid Cloud

Resource Pooling

HW Consolidation

Virtualization

Source: Server Provisioning Automation: Vendor Landscape,

Donna Scott, Ronni J. Colville, February 3, 2011.

Time to provision virtual servers

Improve Operational Efficiency

• Zero touch deployment and management

• Automate across silos

• Standardize delivery - eliminate errors

4-6 hours over multiple days even weeks

Storage Virtual

Step 1 Step 2

Network

Step 3 Step 4 Step N

Apps Track

Wait Wait Wait Wait

Wait Wait Wait Wait

Wait

The Challenges of Keeping up with the Demand

wait wait

Infrastructure

days

wait wait wait wait wait

wait wait wait wait wait

Web

App

DB

Infrastructure

IT Operations

Dev

QA

Prod

Application

Web

App

DB

Infrastructure

weeks

wait wait work

Application

Applications

wait wait work

Days (multiple times)

Release Automation

Automation Creates Fundamental Shift

Service

Definition

Blueprint

Policy POC1 POC2 To Catalog

Provision QA Staging Release

40 work weeks effort – Per Release…

20 work weeks effort – Once!

Run Book

36 hours

Service

Request

4 weeks

Virtual Data Center

Virtual Server

It takes less effort/time to convert the runbook into blueprints

than it takes to “run” the runbook...

Example: Health Care Provider

Improve Operational Efficiency

• Zero touch deployment and management

• Automated resource reclamation

• Enforce governance with policies not people

Assumptions

• 1,000 VMs 1,200 by year end

• 3 System Admins today

• 50% of time spent on Provisioning and Reconfig

• Provisioning will be Admin Initiated

• 80% improvement in Operational efficiency via automation

Business Value

• $132K in operational savings that can be used on more strategic initiatives

• Improved service delivery from days to minutes

• Increase business productivity

• Empower new business opportunity

vCenter Operations—Self-Service Private Cloud “With VMware, we have reduced the time needed to deploy VMs, as well as the effort of

individuals required to focus on manual steps to provision,” noted Rupani. “This is saving

money by refocusing resources toward strategic activities rather than building servers.”

Altaf Rupani

Vice President of Global Systems Services, Dow Jones

Challenges

• Multiple infrastructure

tools not integrated—no

process automation

• Manual IT service delivery

processes

• Difficult to maintain

compliance standards,

scale delivery, and track

costs

Results

• Private Cloud “go-live” in

~60 days

• Provisioning time reduced

from days to minutes

• Success recognized by

parent company propelled

adoption across all

business units

Solution

• VMware vCloud

Automation Center and

Developers Toolkit

• Secure, fully compliant

private cloud with a

personalized user

experience

The News Corp Cloud – My NC3

(www.MyNC3.com)

Optimize Resource Utilization

Reduce Reuse Recycle

Optimize Resource Utilization

• Reduce over provisioning

• Leverage tiered service levels

• Reclaim and reuse inactive resources

Applies to Both New and Existing VMs

Example: Health Care Provider

Reduce Reuse Recycle

Assumptions

• 1200 VMs Under Management (EOY)

• 5% provisioned unnecessarily

• 10% over provisioned by 33%

• 10% Temp VMs - Not reclaimed

• 5% Permanent VMs - Inactive

Business Value

• $ 64K Appropriate Business Justification

• $ 42K Resource Rightsizing

• $ 106K Resource Reclamation

• $ 49K Reclamation efficiency

• $ 261K Total Resource Efficiency

Enforce governance with policies not people

Optimize Resource Utilization

• Reduce over provisioning

• Leverage tiered service levels

• Reclaim and reuse inactive resources

vCloud Automation Center—Private Cloud Extensibility

Fortune 500 Software & Tech Services Company

“We couldn't find another solution that had the depth, capabilities, or cost-

effectiveness of vCloud Automation Center,”… “Finally, the tools are

catching up with our aspirations!“

—Sr. Engineer, Storage/Virtualization, Leading Software/Tech Services Company

Challenges

• Service delivery times

measured in many days

• Resources left running

because of long

provisioning times

• Operations could not keep

up with demand

Results

• Access to compute

resources in minutes

• Archiving inactive

machines saves $4.50/GB

• $225K/year savings per

1,000 machines

Solution

• self-service access to

compute resources

• Automated archival of

inactive machines to lower

cost storage

• Enabled secure, full

integration with existing

backup, archival &

chargeback technologies

Accelerate Virtualization Deployments

• 70% of IT projects over budget or behind schedule

• Scaling virtual desktops and servers

• What's its worth to achieve your deployment goals

vCloud Automation Center Custom Desktop Cloud

International financial services firm “We now globally manages tens of thousands of virtual desktops as both thin and fat

clients – deploying hundreds of new virtual desktops each day.”

—VP of Desktop Infrastructure, International financial services firm

Challenges

• Deployed and manage

60K virtual desktops

• 500-1000 Desktops daily

• Virtual desktop

deployment was stalled

Results

• Hundreds of desktops built

or reconfigured daily

• New custom workflow pre-

builds desktops in the

background

• The stalled desktop

deployment now moving

forward

Solution

• vCloud Automation Center

+ Development Kit

enabled single, centralized

process for requesting &

managing new machines

• Desktops deployed using

VMware ESC, Citrix

XenDesktop & NetApp

FlexClone

• Integrated with existing

CMDB

Example: Health Care Provider

• 70% of IT projects over budget or behind schedule

• Scaling virtual desktops and servers

• What's its worth to achieve your deployment goals

Assumptions

• They were already greater than 85%

virtualized

Business Value

• $ 0K in additional server consolidation

Example: Health Care Provider

Accelerate Service Delivery 98% • 4 days to 1.5 hrs.

Lower Operational Costs 80% • $132K Savings

Optimize Resource Utilization 20% • $261K Savings

Break Even = 11 Months

VMware IT – Exceeding Expectations

Reduced provision time

95% (4 weeks to 36 hours)

Improved productivity

of 600 developers

20%

Reduced

IT operations costs

$1.5M /year

Able to say

“yes” to developer requests

Reduced the cost of

a VM/month

80% ($133 to $20)

Reduced

infrastructure costs

$4.5M/year

Enterprises that have automated IT are…

37%

30%

26%

50%

more responsive to IT requests

While saving of both operations and development staff time

Increasing revenues due to new applications and IT services

Investing of their budgets in innovation

Able to secure nearly more budget than their less-mature counterparts 2 3

Source: VMware Journey Benchmark Survey, 4th Wave 2013 25

Cloud Automation – Accelerating IT Efficiency

2

Cost per VM hour

(2GB instance) 20¢

18¢

16¢

14¢

12¢

10¢

8¢

6¢

4¢

2¢

0¢ 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Virtualization,

Consolidation

and Pooling 1

Utilization

Governance

& Automation

Service

Delivery Times

Minutes

Hours

Days

Weeks

Months

Cloud Automation Business Justification

Risk Of Ignoring

Resources

• Next Steps:

– Stay Tuned for a Simplified Cloud Automation ROI Model

• Whitepapers

– Controlling Virtual Machine Sprawl: How to Better Utilize Virtual Infrastructure

– How to Avoid the Hidden Costs That Derail Cloud Projects

– VMware vCloud Automation Center Extensibility Overview

• Customer Case Studies

– Resources in the vCloud Automation Center page on VMware.com

• Videos

• Building the Cloud Automation Business Case (10:09)

• Intro to vCloud Automation Center (10:05)

• Personalizing your Cloud (11:03)

© 2014 VMware Inc. All rights reserved.

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