IBM whitepaper: Building a Dynamic Infrastructure with IBM Power Systems: A Closer Look at Private...

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 Bu h ilding a Dynamic Infrastructure wit IBM Power Systems: A Closer Look at Private Cloud TCO Scott A. Bain Fehmina Merchant Bob Minns John J Thomas IBM SWG Competitive Project Office March, 2010

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Bu hilding a Dynamic Infrastructure wit 

IBM Power Systems:

A Closer Look at Private Cloud TCO

Scott A. Bain

Fehmina Merchant

Bob Minns

John J Thomas

IBM SWG Competitive Project Office

March, 2010

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Table of ContentsTable of Contents............................................................................................................................... ........... 2 

Executive Summary....................................................................................................................................... 3 

A Virtuous Circle to Reduce IT Costs .............................................................................................................4  

Take Cost Out Through Virtualization...........................................................................................................5  

Labor and the Server Provisioning Lifecycle ...............................................................................................10 

Standardization Helps Lower Labor Costs ..................................................................................................14 

Automation Can Help Lower Labor Costs Even Further! ............................................................................17 

Putting It All Together................................................................................................................................. 21 

Summary ............................................................................................................................... ...................... 23 

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Executive Summary

Many companies are finding their need for greater business agility being frustrated by an increasingly

costly and rigid IT infrastructure. The culprits are many. Maintenance of the current environment

accounts for over 70% of the IT budget, leaving less than 30% available for new projects. Annual

operational costs (power, cooling, and labor) of distributed systems and networking exceed their

acquisition cost by 2-3X and continue to climb. Utilization rates of these commodity servers hover

around 5-15% on average, leading to excess capacity going to waste. Time to provision new servers can

be as long as six months, hampering lines-of-business efforts to quickly respond to competitive threats

or new opportunities. As a result, LOB units are beginning to go outside the datacenter to public cloud

providers like Amazon in hopes of lowering their costs and improving their responsiveness. To avoid

disintermediation, IT needs to re-invent the datacenter by moving towards a more dynamic

infrastructure. One that takes out cost through the use of virtualization to improve utilization levels

with a commensurate reduction in power consumption. One that embraces a private cloud model that

uses standardized workloads and service automation to dynamically provision IT services in

minutes/hours rather than months (and at lower cost) via self-service portals. Customers can build such

an environment using IBM’s Power Systems servers coupled with Tivoli service management software.

This paper examines the Total Cost of Ownership (TCO) for a dynamic infrastructure built around private

cloud services and compares it to public cloud alternatives as well as conventional one-application-per-

distributed server models. The results show that private cloud implementations built around new

POWER7 based servers can be up to 90% less expensive than public cloud options over a three year

period and over 70% less than a distributed stand-alone server approach.

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 A Virtuous Circle to Reduce IT Costs

Figure 1 depicts a three-pronged approach to how customers can reduce their overall IT costs through

the implementation of a dynamic infrastructure built on virtualization, standardization, and automation.

A Virtuous Circle To Reduce I/T Costs

Automate

Virtualize Standardize

Reduce Labor Costs

Improve Service

Reduce Hardware,

Software, Power, andLabor Costs

Reduce Labor Costs

Enable Automation

 

Figure 1

Although enterprise usage of these three approaches is expected to rise to 50% by 2012, adoption thus

far has been limited to around 12%1. One of the reasons for the tepid adoption rate so far has been an

inability to quantify the impact these capabilities have on reducing IT costs. Customers want a better

understanding of the savings they can anticipate through the application of these technologies before

committing resources to their implementation. To that end, the rest of this paper takes a look at each

approach in more detail and provides some guidelines on how customers can go about estimating cost

savings for their own company.

1 Internal IBM Cloud study 2009

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Take Cost Out Through Virtualization

A recent IBM internal study of its nearly 4000 distributed servers showed annual operational costs

attributed to each server to be over $34,000, with almost 90% due to software maintenance and

systems administration. It stands to reason that reducing the number of physical servers to fewer,larger, more capable machines can serve to greatly reduce these costs. Indeed, the virtues of 

virtualization to accomplish this have been well-publicized. What has proven to be more elusive,

however, is the quantification of these benefits. How many workloads can actually be consolidated

onto a given platform while maintaining acceptable service level agreements? Which platform gives you

the greatest economy of scale, producing the lowest cost per virtual machine image/workload?

To answer this question, the CPO evaluated three different alternatives for running 75 heavy Linux

workloads as shown in Figure 2 below:

PrivateCloud

PublicCloud

75 LinuxWorkloads

Buy POWER 7servers and

provision your ownvirtual servers

(Power/VM)

Buy standaloneservers

Rent virtualservers

Which platform provides the lowest TCA over 3 years? 

Dynamic Infrastructure -

Compare Options For Deploying Heavy Workloads

IBM WebSphereApplication Server 

Online banking workloads,each driving 745

transactions per second

 

Figure 2

The workload in question was an online banking application built using IBM WebSphere Application

Server (WAS) and requiring an average throughput of 745 transactions per second. We first ran this

workload on a stand-alone, 8-core Intel server (Xeon 5500 or “Nehalem” processors at 2.93 GHz), which

resulted in an average utilization of 12%. A VM image of the online banking application was then

created to see how many images could be placed on a Power 750 server (32-cores). Multiple running

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instances of this VM image were added incrementally to the servers until it could no longer handle any

additional throughput.

It should be noted, however, that this approach drives the machine to 100% utilization with no

consideration of workload variation. In practice, real world workloads have variability in demand. This

variability has an effect on what CPU utilization can be tolerated on the target virtualization platform.

Ideally, you want to be able to run utilization levels high enough to achieve the highest consolidation

ratio, but still keep it less than 100% to allow for peaks caused by this variance in workload demand.

One way to gauge the impact of workload variability on consolidation ratios is to use statistical models.

If we were to track average utilization over time of workloads with varying demand, the results would

tend to exhibit a “bell curve” type distribution pattern as shown below. Theory tells us that 95% of all

values fall within two standard deviations from the mean. Thus, if we had a Service Level Agreement

(SLA) that called for us to be able to handle 95% of all workload demand that occurs on the system over

a given time period, we would need to size a machine with a capacity of the mean + two times the

standard deviation (sigma).

Statistical Models Can Be Used To Account For Workload Variability

Mean

2 σ2 standard deviations

from the meanApproximately 95% of all

values are less than this

3 σ3 standard deviations

from the meanApproximately 97.7%

of all values are lessthan this

To meet an SLA that requires 95% of the workload be run satisfactorily,we need a server with capacity M+2σ. In this case, Mean Utilization = M/(M+2σ)

 

Figure 3

Based on an IBM internal survey of workload variability of over 3200 distributed servers, the standarddeviation or sigma for our class of workload is approximately 2.5 times the mean. This suggests that for

a single workload, our server should be able to handle 12% + 2(2.5 * 12%) or 72% peak utilization, easily

within the SLA requirement of 95%. But what happens when you combine workloads? It turns out that

when you aggregate workloads with variable demand, the overall variability of the combined workloads

gets smaller. This phenomenon is often referred to as the Central Limit Theorem. We further observe

that when we pool n workloads, the additional capacity required to handle the variations does not go up

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by n, it goes up only by the square root of (n). For example, when you combine four workloads of 

roughly equal size, you only need a server capable of handling 3.5 times the average demand or

utilization. Combining 16 workloads results in needing only 2.25 times the mean, whereas if you

consolidate 144 workloads, you would only need 1.42 times the mean. Thus, larger machines capable of 

accommodating more workloads can run at higher utilization levels than smaller ones. When we apply

an SLA of 95% to our benchmark data, the maximum number of VM images that can be supported on

our 32-core Power 750 server is 24 (Figure 4). As a result, we would need up to four Power 750 servers

and two Power 770 (64-core) systems to handle our 75 workloads.

Consolidation Ratio For Power 750

P750 Friendly Bank 32 cps

12% Nehalem Workload

2.434.68

10.30

17.0221.65

33.10

68.24

0

10

20

30

40

50

60

70

80

90

100

1 2 5 10 15 20 30

LPARS

      U      t      i      l      i     z     a      t      i     o     n

%TOT Machine Utili zation

Peak utilization for “n” workloads

= M(1 + (2*Sigma)/M*√n )

   2 .   0   2  x   M

94.96%

47.01

24 VMs

 

Figure 4

If we were to try and add more than one of our 12% “heavy” workloads onto a hypervisor-enabled

version of this same 8-core Intel server, the statistical model shows that you wouldn’t be able to do so

without violating the SLA. By combining just two workloads, the overall demand placed on the server

would exceed 109%. Had we used smaller, more lighter-weight workloads, then a virtualized x86 server

would likely have been a viable option.

It is also important to note that these consolidation ratios assume “flat-out” operation. In practice, notall servers/images are used all the time. Experience from customers and public cloud providers have

shown typical usage patterns of 14 hours per day (59%). This means in theory, we should be able to

reduce our virtualized hardware requirements by 1.7X in order to support our 75 workloads. Applying

this factor to our Power Systems configurations means we only need two Power 750 servers and one

Power 770 server as shown in Figure 5.

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Compare Options For Deploying Heavy Workloads

75Workloads

Rent 225 of thelargest computeinstances

Which platform provides the lowest 

TCA over 3 years? 

Requirements

IBM WebSphereApplication Server 

Buy 4 32-wayPower 750(3.55GHz) servers

Buy 2 64-wayPower 770(3.1GHz) server 

Online banking workloads,

each driving 745transactions per second

45 LPARs

45 LPARs

600

cores

64 cores

64 cores

PublicCloud

Buy 75 8-core

Intel Nehalemservers

1

2

 

Figure 5

In selecting the appropriate compute instance size required to handle our workload, we found that we

would need to cluster three of the largest instances available from a leading public cloud provider in

order to match the performance we achieved with a single 8-core Intel server. As a result, this drove thetotal number of paid compute instances needed up to 225 (75 x 3).

When you look at the four options from a Total Cost of Acquisition (TCA) perspective, the Power

Systems servers are the lowest cost alternative, around 70% lower than the stand-alone servers and

one-tenth the cost of the public cloud option (Figure 6):

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0

20000

40000

60000

80000

100000

120000

140000

160000

180000 Software

Hardware/ComputeInstance

$62.3K

$167K

Buy

StandaloneServers

Public

Cloud

Private

Cloudp770

   C  o  s   t  p  e  r   W  o  r   k   l  o  a   d   /   I  m  a  g  e   (   U   S

   D   )

$20.0K

Hardware And Software Costs Per Image for Linux Workloads (3 Yr TCO)

Private

Cloudp750

$16.0K

 

Figure 6

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Labor and the Server Provisioning Lifecycle

Now that we have a handle on the impact of virtualization on hardware and software costs, what about

the effects of labor? Any discussion of labor needs to start with a process that describes the tasks

associated with the acquisition, deployment and retirement of servers. Servers are first planned andacquired, then they are handed over to administrators to configure, set up and deploy. The operating

systems software is installed, Hypervisors are configured, virtual servers configured, security profiles for

users established, and the server is tested and deployed into production. Monthly maintenance

continues including routine patches and fixes, and upgrades. The servers are ultimately cleansed and

retired from service.

Figure 7 below depicts this provisioning lifecycle approach. It includes some procurement functions, set

up and deployment functions, maintenance, troubleshooting and ultimate tear down. The labor

categories included setup and tear down costs as well as the ongoing monthly maintenance and

troubleshooting costs for physical servers and software virtual images.

Server Provisioning Lifecycle: Labor Components

Set-Up

and

Deploy

Tear-down

and

Retire

Procurement

Maintenance

Troubleshoot

Business IT

focus of labor model 

 

Figure 7 

To quantify the impact of labor, we developed a labor model for servers (Figure 8). The formula

represents the total labor hours ascribed to the management of a server environment as comprised of 

the hours spent managing a physical server over its lifetime plus the hours spent managing the software

images over their lifetime. Total hardware server labor hours (H) include the set up and deployment

hours representing one-time events such as sizing and configuring workloads, and testing of a physical

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computing element. They also include hours for scrubbing of servers, decommissioning, maintenance

and troubleshooting for physical servers over the analysis period. Total software labor hours (S) include

both the initial installation labor associated with the software stack or virtual images on the physical

server along with ongoing maintenance and troubleshooting over the assessment period. These tasks

include periodic patching and upgrades, associated testing functions, analysis of errors, debugging, fixes,

testing and reboots.

Software

Stack

Labor Hours

(S)

Labor Model For Servers

Total

Labor Hours=Hardware

Labor Hours

(H)

# of 

Physical

Servers+

Over a given time period 

Set-up +,Maintenance + 

Troubleshooting + Tear-down per server 

over a given time period 

Set-up +,Maintenance + 

Troubleshooting + Tear-down per image 

over a given time period 

# of 

Unique

Software

Stacks

 

Figure 8

Solving this equation for a stand-alone x86 environment gives us a picture of how much labor was

required before virtualization. Similarly, solving the equation for the Power Systems-based environment

gives us insight into the total hours needed after virtualization. Fortunately, we have data from

customer case studies that can help us evaluate both equations as shown in Figure 9:

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0

10

20

30

40

50

60

Power/VMx86 hypervisor 

Dist Intel

Dist UNIX

Average

Using Customer Data to Derive Average Number of Servers per Administrator 

   S  e  r  v  e  r  s  p  e  r   F   T   E

Customer Data

14.68

55.90

30.68

52.45

 

Figure 9

For the stand-alone x86 server case, this works out to be 30.7 servers/FTE, while the virtualized Power

Systems server case turns out to be 55.9 servers per administrator.

We then wanted to calculate the portion of FTE labor needed to manage a server .

Calculating the FTEs per server for stand-alone and virtualized x86-based servers

•  Stand-alone x86 data shows 30.7 servers managed per FTE,

1/30.7= .0326 FTE’s needed per server

•  Virtualized Power Systems data shows 55.9 virtual servers managed per

FTE,

1/55.9 = .0179 FTE’s needed per server 

Next, we wrote equations to represent the total FTE hours required to manage our 75 Linux workloads

each year for both stand-alone and virtualized Power Systems platforms.

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We assumed 2,080 hours or 52 weeks per year, 8-hour days for 1 year.

FTE hours needed to manage 75 workloads for 1 year:

Multiply FTEs needed per server * total hours over 1 yr * number of software images

•  .0326 * 2,080 *75 = 5,086 hours needed for all stand-alone x86 servers

•  .0179 * 2,080 *75 = 2,792 hours needed for all virtualized Power Systems servers

On balance, this shows a virtualized Power Systems-based environment requires 45% less total labor

hours to manage 75 Linux workloads for 1 year than the stand-alone x86 scenario. But what percentage

of that time can be attributed to managing the hardware (H) vs. managing the software images (S)?

From our earlier analysis, it took 75 8-core Intel Nehalem servers to handle 75 Linux workloads. For the

virtualized Power Systems case, we found that you could handle 75 workloads on a single 64-core Power

770 server.

Thus, we are left with the following equations:

(1) Stand-alone x86 75Hi+75S = 5,086

(2) Virtualized Power Systems 1Hp+75S = 2,792 

While the amount of time to install software on either a Power-based or x86 server is about the same,

our own hands-on usage of a Power-based server showed that it took roughly twice the amount of 

hours to administer as a stand-alone x86 platform. Thus, substituting Hp = 2Hi allows us to solve theequations for their respective H and S values. 

Subtracting equation 2 from equation 1 to solve for H i, Hp, and S:

Hi = 32 hours per year

Hp = 64 hours per year

S = 36 hours per year

Therefore, over a 1-year planning horizon, the total hardware labor (Hi) to manage one x86 server is 32hours while the Power Systems server labor hours (Hp) requires twice that (64 hours). The cost to

manage a single software image (S) is 36 hours.

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Standardization Helps Lower Labor Costs

Servers need a full load of software to run a workload. This includes not only an operating system,

middleware and the application itself, but also things like patches and configuration specifications. We

refer to all of this software as a “software stack”. Without controls, the variety of software stacks tendsto proliferate, driving up labor costs. For example, many stacks will have different levels of software

installed, along with different patches and product selections. The standardization of these software

stacks, however, can reduce labor costs. Uniformity reduces the number of unique stacks to manage

and allows for greater re-use. We refer to the concept of re-using a standard software stack as

“cloning”. The question is, how can we quantify the material impact standardization has on reducing

labor costs?

To estimate this, we applied a cloning factor to our original equation as shown below in Figure 10:

# of 

Software

Images

Clone

Factor 

C

Use of Standardized Stacks Can Drive Down the

Labor Hours for Software Images

Where C = average number of copies

deployed for each unique software stack

(from 1 to 75 in our example)

Software

Stack

Labor Hours

TotalLabor Hours

=Hardware

Labor Hours

# of 

Physical

Servers+

This is the number 

of unique stacks 

 

Figure 10

Solving this equation for the virtualized Power 770 environment discussed earlier in the paper yields thefollowing:

1Hp + 75(S/C) = total labor hours per year

Since we already know Hp and S from our previous calculations, we can substitute those values, resulting

in the following:

1(64) + 75(36)/C = total labor hours per year

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Expressing the formula this way allows us to play some “what if” games with the clone factor (C) to

gauge the impact of standardization on total labor hours. For example, applying a clone factor of five

would mean that out of 75 servers there are 75/5 or 15 unique images deployed, of which the rest are

duplicates of the original fifteen unique templates. When calculated over three years, this reduces the

overall labor hours from the original virtualized Power Systems case of 8,372 to 1,823, a reduction of 

78%!

The graph below in Figure 11 shows the labor savings to be had as you adjust the clone factor “C”

between no clones (1) and 75 clones (75).

21

Benefit Of Cloning Factor On Software Labor Costs In A Virtualized Environment

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

75

Clones

No

Clones

2

Clones

5

Clones

10

Clones   T  o   t  a   l   S  o   f   t  w  a  r  e   L  a   b  o  r   H  o  u  r  s   O  v  e

  r   3   Y  e  a  r  s

   (   7   5   L   i  n  u  x   W  o  r   k   l  o  a   d  s   ) Software Labor declines by 1/C 

Clones per unique image 

Figure 11

As you can see from the curve, total software labor hours decline by roughly the inverse of the cloning

factor. Based on this revised labor model that takes into account the use of clones, we can make the

following observations as shown in Figure 12:

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# of 

Software

Images

Clone

Factor 

C

Effects of Virtualization and Standardization OnLabor Costs

Total Software

Labor Hours

Total Hardware

Labor Hours

The more images youcan standardize and

clone, the lower youcan drive software

labor hours

The greater theconsolidation you can

achieve, the lower youcan drive hardware

labor hours

=# of 

Physical

Servers+

Software

Stack

Labor Hours

Hardware

Labor Hours

Total

Labor Hours

(per year)

Figure 12

One of the levers in reducing labor costs is to reduce the number of physical servers you have to

manage. Put another way, the more workloads you can consolidate on a given platform, the more you

can lower your labor costs. This makes larger, more scalable systems like the IBM Power Systems family

an ideal virtualization and consolidation platform for implementing private clouds.

Another lever is the degree to which you can use workload standardization and cloning in your

environment. Simply stated, the higher the clone factor, the greater the reduction in labor costs

associated with deploying and maintaining software virtual images.

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 Automation Can Help Lower Labor Costs Even Further!

While virtualization and standardization can go a long way in reducing overall labor costs, the task of 

deploying a software stack as a VM image onto a virtualized server has historically been a highly labor-

intensive task. For instance, one has to first deploy and configure the OS along with all requisitepatches. After that, the administrator has to install and configure the application server and all its

constituent components (e.g. HTTP server, etc.) as well as patches and other fixes. For applications

requiring a database, that becomes yet another piece of middleware that needs to be installed and

configured. Then there is the application itself. Collectively, deploying and testing a complete

application manually can require days or weeks to accomplish depending upon its overall complexity. In

a private cloud environment, this kind of turnaround is untenable. The use of automation promises to

reduce the labor required dramatically. Figure 13 depicts such an environment with a self-service portal

that enables users to request IT services on demand and have the request fulfilled in minutes/hours

versus days/weeks/months.

51

Automated Self Provisioning Further ReducesLabor Costs And Speeds Up Delivery

ServiceService

Service

Auto Manage

Catalog

Deploy

Use service 

Request service 

Stack

Hypervisor 

Operating System

Self ServicePortal

Capture

Physical Resources

Deploy via:Image copy (fastest)Automated install (scripts)

Figure 13

In this environment, services are initially defined/created and stored in a service catalog. Requesters

can then browse the catalog to find and select the desired service. After submitting the request, it gets

routed for approval and then fulfilled by the underlying infrastructure. The software needed as part of 

the overall service is typically deployed in one of two ways: image copy (the fastest) or via automated

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install using scripts. When the service is no longer needed, the affected resources are freed up so that

they can be claimed by other subsequent requests. In order for all of this to work seamlessly and

transparently to the user, there needs to be automated management software that undergirds each

step in the process.

IBM offers Tivoli Service Automation Manager (TSAM) to manage this cloud services lifecycle and deliver

request-driven provisioning for a private cloud environment. It leverages Tivoli Service Request

Manager (TSRM) to provide a self-service UI for users to search against the catalog and select the

desired service. It also utilizes Tivoli Provisioning Manager (TPM) to provision hardware and software

resources according to best practices to satisfy the service request (Figure 14).

Example: IBM Tivoli Service Automation Manager (TSAM) Delivers Fast Self-Service Provisioning

Service

Catalog

Automated

Provisioning

User browses service catalogAdds service to shopping cartSubmits request

TSAM starts the deployment

process via IBM TivoliProvisioning Manager workflow

TSAM enables standardization viaa catalog of service offerings

TSAM provides automated provisioning

TSAM

Power Hardware

PowerVM

VirtualServer 

VirtualServer 

NewVirtualServer 

 

Figure 14

To help assess the extent to which the use of TSAM can reduce labor hours, we conducted a hands-on

study as shown on Figure 15 below:

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Deployment Study On The Labor Benefits Of Self-Service Provisioning and Automated Install

IBM Power 750(8-core, 3.55 GHz)

Self-Service Provisioningand Automated Install

ServiceManagement

Linux

App

HTTP

WAS

Power/VM

Linux

App

HTTP

WAS

Manual Install

User Administrator 

•Self-service•Automation

Power/VM

IBM Power 750(8-core, 3.55 GHz)

Source: CPO internal study  

Figure 15

This study tracked the time it took to deploy and instantiate a WebSphere-based application on a virtual

server using Power/VM. We captured metrics for doing this manually as well as using TSAM. The

results from this study show that the use of automation via TSAM can reduce software image labor

hours by as much as 67%! (Figure 16):

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Benefit Of Automated, Self Provisioning OnLabor Costs

0

50

100

150

200

250

300

   T  o   t  a   l   D  e  p   l  o  y  m  e  n   t   T   i  m

  e

     (    m     i    n    u    t    e    s     )

AutomatedInstall

ManualInstall

67%reduction

40 min 

120 min 

Applying this labor savings ratio reduces Software Labor (S) from 36 to 12 for each VM image! 

 

Figure 16

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Putting It All Together

As our analysis shows, there are significant labor savings to be had through the use of virtualization,

standardization, and automation. For our example of 75 Linux workloads over three years, virtualization

by itself yields a 46% reduction while standardization alone reduces labor hours up to 78% with just amodest clone factor (C=5). Using Tivoli Service Automation Manager for automation in conjunction with

Power/VM hypervisor on a Power Systems server yields a reduction of 60%. Taken collectively,

companies can reduce their labor costs by up to 95% compared to a traditional stand-alone x86

environment and manual deployment methods (Figure 17):

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Total Hardware and Software Labor Hours for 75Linux Workloads Over 3 Years

   T  o   t  a   l   H  a  r   d  w  a  r  e  a  n   d   S  o   f   t  w

  a  r  e

   L  a   b  o  r   H  o  u  r  s   O  v  e  r   3   Y  e  a

  r  s

   (   7   5   L   i  n  u  x   W  o  r   k   l  o  a   d  s   )

60% less 

95% less 

Virtualized +

Standardized(C=5) +Automation

Distributed

(Intel)

Virtualized

(POWER)

Virtualized +

Standardized(C=5)

46% less 

78% less 

 

Figure 17 

Now that we have been able to quantify the labor savings through the use of virtualization,

standardization, and automation, we need to combine these with our earlier hardware and software

numbers in order to show a complete cost picture. As shown in Figure 18, you see that the Power

Systems 750 and 770 server options come in at the lowest cost per image over three years for our 75

workloads at $25.5K and $30.5K, respectively. This works out to be a savings of over 70% compared to

the stand-alone x86 server alternative and almost 90% for the public cloud option.

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0

50000

100000

150000

200000

250000

300000Administration

Software

Hardware/ComputeInstance

BuyStandalone

Servers

PublicCloud

PrivateCloud

p770

   C  o  s   t  p  e  r   W  o  r   k   l  o  a   d   /   I  m  a  g  e   (   U   S   D   )

PrivateCloud

p750

Let’s Put It All Together In Our Example-Cost Per Image for Linux Workloads (3 Yr TCO)

$105K

$248K

$30.5K$25.5K

No

standardization

No

standardizationWith standardization and

automation

Figure 18

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Summary

Escalating business requirements will continue to drive companies toward datacenter transformation.

This includes pursuing ways to take costs out of their existing infrastructure through the use of 

virtualization, standardization, and automation. The labor model described in this paper can be used toestimate potential savings for a number of different deployment scenarios and technology choices. In

our example, we chose to highlight the advantages of using IBM Power Systems servers in conjunction

with Tivoli service management software as a means to deliver a cost-effective private cloud

environment. Some of the benefits that can be expected include:

•  Private clouds built on IBM Power Systems servers and Tivoli service management software

can be up to 70-90% less expensive on a cost/image basis than stand-alone x86 servers or

public cloud alternatives

•  The greater the consolidation you can achieve, the lower you can reduce total physical server

labor hours

•  The more images you can standardize and clone, the lower you can reduce software image

labor hours

•  The use of Tivoli Service Automation Manager can reduce labor hours for a unique software

image by up to 67% compared to manual deployment on an IBM Power Systems server

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Page 24 of 24

© Copyright IBM Corporation 2010 

IBM Corporation

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Produced in the United States

March 2010

All Rights Reserved

IBM, the IBM logo, DB2 and WebSphere are trademarks or registered trademarks of International Business Machines Corporation in the

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POW03043USEN-00