VMworld 2013: Quantifying the Business Value of VMware Horizon View

Quantifying the Business Value of

VMware Horizon View

Aivars Apsite, Metro Health

Ridwan Huq, VMware

EUC5211

#EUC5211

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Abstract

A VMware View Virtual Desktop solution can provide significant

cost savings and IT manageability improvements by consolidating

a vast number of supported end points onto a centralized service

providing platform.

According to Enterprise Management Associates (EMA) primary research,

71% of organizations that have implemented desktop virtualization have

seen real, measurable costs savings with roughly a 60% reduction in

hardware, software, and administration costs. When selecting a VMware

View solution, organizations must understand the total infrastructure costs

to make the right investment decision.

This session will cover the infrastructure costs and the tangible business

benefits of the VMware View Desktop Virtualization solution, and help you

understand how you can lower your total cost of ownership by up to 50%.

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Market Dynamics

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Device simplification and/or consolidation

Speed new deployments, new apps, new employee provisioning

Desktop infrastructure simplification CapEx reduction

Simplified desk-side support

Simplified lifecycle management

Power cost

OpEx Reduction

Windows 7 migration Ease and speed of OS/app deployments

Control assets outside corporate perimeter (“off-shoring”)

Device, data security and control

Security

New Initiatives BYOD

Primary Drivers for Hosted Virtual Desktop Adoption

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CAPEX OPEX TCO

The TCO Equation

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What is the average acquisition cost?

Cost of Enterprise Desktop Management – Capital Expense

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Source: Gartner - Recommended Desktop Configuration, 2012 #G00229871

Recommended Desktop Configurations, 1H2012

Intel-Based Desktop Configurations

Component Mainstream User Power User

Form Factor (chassis) Small form factor (SFF) Mini tower (MT)

Processor Core i5-3550 (four core)

Core i5-3570 (four core) or Core i7-

3770 (four core, eight thread)

Chipset Intel Q77 Intel Q77

Memory 4GB DDR3 4GB to 8GB DDR3

Hard Drive

120GB Serial Advanced Technology

Attachment (SATA) 500GB or more SATA

Optical Drive DVD-ROM (optional) DVD-ROM (optional)

Graphics Integrated (PCI) Express 512Mb

Display Size 21.5-inch-wide flat-panel display (FPD) 21.5-inch-wide FPD

Display Resolution 1600 x 900 1600 x 900

USB Ports Four rear, two front Four rear, two front

Network Interface Card (NIC) Integrated 10/100/1,000 Integrated 10/100/1,000

Manageability

Desktop and mobile Architecture for

System Hardware (DASH)-compliant

(vPro) DASH-compliant (vPro)

Price $700 to $1,100 $1,000 to $2,500

Warranty Three years, on-site Three years, on-site

Gartner Recommended Desktop Configuration

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Manage

Retire

Secure

Deploy

Test

Image

Procure

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1

1

1

1

Hardware/SW configuration

User administration (Move/Add/Change)

Desktop imaging/reimaging

Patching, upgrading OS/applications

Application testing & provisioning

Packaging and deploying applications

Access/data security management

Help desk support

Cost of Enterprise Desktop Management – Operational Expense

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Administration

Average burdened salary: $70K

Admin User ratio: 1: 200

Cost per user: $350

Install/Config/Deploy

Time spent per user (min): 160

Cost per user: $90

IT Cost (Helpdesk)

Helpdesk (190min/user/yr): $105

Desk side (60min/user/yr): $75

Total Cost per user: $180

Annual cost per user: $350 + $90 + $180 = $620

Source: IDC – Quantifying Business Value of VMware View, June 2011

Cost of Enterprise Desktop Management – Operational Expense

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Indirect Cost

Downtime cost (loss time 5.9 hr) :$145

Helpdesk cost (loss time – 5.3hr) :$130

Security cost (loss time – 1.8hr) :$45

Start-up cost (2 hr, 4 yr refresh) :$20

Annual productivity cost: $145+$130+$45+$20 = $340


Cost of Enterprise Desktop Management – Indirect Cost

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CapEx OpEx Indirect Cost First Year Cost

Device

$1000

IT Support

$620

Productivity Cost

$340 $1960


Enterprise Desktop – Cost of Acquisition & 1 Year Management

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$1 spent on Hardware, requires $3.8 more to support it!

Enterprise Desktop – Total Cost of Ownership

Average Useful Life: 4 years

Operational Expense : $2480 (over useful life of 4 years)

Capital Expense : $1000 (one time)

Productivity Cost : $1360 (over useful life of 4 years)

Total Cost of Ownership : $4840 (over useful life of 4 years)

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Storage

Server

Microsoft VDA

License

Thin/Zero

Client

VMwareView

License

Repurposed

PC

Switches

Data Center

VMware View – Infrastructure Components

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Storage

Server

Dual CPU/Quad Core

Average VM per core = 10

Server cost per VM ~ $75

User Type

% of

Users VM Density

Power User 10% 6

Knowledge

Worker 60% 10

Task

Worker 30% 12

Avg Image Size = 20GB

User data = 5GB

Linked Clone = 70%

Storage cost per VM ~ $75

User Type IOPS R/W ratio

Power User 15 80%

Knowledge

Worker 10 80%

Task

Worker 8 80%

VMware View – Infrastructure Cost per User

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VMware View Premier (List) : $250

VMware View Enterprise (List) : $150

If under Software Assurance : $0

Microsoft VDA License (List) : $100

If purchased : $250

Repurpose existing PC : $25

Microsoft

VDA License

Thin/Zero

Client

View

License


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Data Center Colocation (est) : $10-$25

7sq.ft/rack x $300~$700/sq.ft

Network Switch (48 Ports) : $10-$15

Data Center

Switches


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IT Cost (Administration)

Average Salary: $70K

Admin User ratio: 1: 400

Cost per user: $175

IT Cost (Install/Config/Deploy)

Time spent per user (min): 50

Cost per user: $25

IT Cost (Helpdesk)

Helpdesk: (141min/yr) $80

Desk side: (8 min/yr) $10

Total cost per user: $90

Annual cost per user: $175+$25+$90 = $290


VMware View – Operational Expense

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Indirect Cost

Productivity cost: $45+$30+$30+$5 = $110


VMware View – Indirect Cost

Downtime cost (loss time 1.9 hr) :$45

Helpdesk cost (loss time – 1.3hr) :$30

Security cost (loss time – 1.2hr) :$30

Start-up cost (2 hr, 4 yr refresh) :$5

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Physical/Virtual Environment

Endpoint Operations 52 Wks, 5 Days, 10 Hrs

Data Center Operations 52 Wks, 7 Days, 24 Hrs

Thick Client Power Draw (average) 0.17 KW

Thin Client Power Draw (average) 0.015 KW

Data Center Power Draw (Server/Storage) (average) 0.75 KW

Cooling Load Factor 80%

Distributed Power Management Optimization 90%

Physical vs. Virtual Power Consumption

Physical Environment (Average Annual Cost Per User) $75

Virtual Environment (Average Annual Cost Per User) $25

Average Electricity Cost Savings (per user/year) $50

Savings in Power Consumption

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CAPEX OPEX Indirect Cost Total Cost

of Ownership

HW/Software

$800

IT Support

$290

Productivity Cost

$110 $1200


VMware View – Cost of Acquisition & 1 Year Management

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$1 spent on Hardware, requires $1.3 to support it

VMware View – Total Cost of Ownership

Average Useful Life: 4 years

Operational Expense : $1160 (over useful life of 4 years)

Capital Expense : $1250 (includes VDA, View S&S license )

Productivity Cost : $440 (over useful life of 4 years)

Total Cost of Ownership : $2850 (over useful life of 4 years)

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Source: IDC – Quantifying Business Value of VMware View, August 2011

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

Traditional PC With VMware View

$1,000

$250

$1,400

$700

$360

$100

$720

$360

$1,360

$440

$75 $75

$850

Device IT - Admin IT - Install IT - HelpDesk Downtime Server Storage Software

$4880

$2850

Save $500/PC annually

4 Year TCO Comparison (Traditional Desktop vs. VMware View)

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Cost Savings on Windows 7 Migration

Desktop Environment

Number of desktops : 5000

OS migration : Windows XP to Windows 7

Average cost of new PC : $1000

Application Environment

Total number of packaged application : 200

Total number of custom application : 50

Average number applications per PC : 20

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Manage Manage

50% saving

Install

OS/App/Drivers

Audit/Assess Audit/Assess

~35% saving

Install

OS/App/Drivers

60% Saving

1

1

1

1

1

Impact of VMware View on Windows 7 Migration

© 2013 VMware Inc. All rights reserved

VMware Horizon View Building the Business Case:

Desktop Virtualization for a Hospital

Aivars Apsite

Technology Strategist

Metro Health

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Agenda

ID the Business Cases for our Hospital

Calculate the IT Savings

Plan the Next Steps

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Why desktop virtualization?

It improves the efficiency

of clinical workflows.

Quantify your vision:

“Enable fast roaming access to a user’s active back end session in 10 seconds or less.”

There is one thing stronger than all the armies in the

world; and that is an idea whose time has come.

Isaac Newton

This will impact the IT budget, but it will save money for your hospital

Define Vision – Desktops and Endpoints

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• Reconnect to active desktop in 10 seconds or less

• To a FULL Windows desktop

• Access to ALL opened applications simultaneously

The most dangerous kind of waste is

the waste we do not recognize.

~Shigeo Shingo

Roaming with Fast Reconnects

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Roaming with fast reconnects to a full Windows OS desktop – 10 seconds or less

Being rich is having money;

being wealthy is having time.

Margaret Bonnano

Time is in seconds Hours Annual

Full PC login

Reconnect

time

Time

savings

Time

saved/day Hours Per Person Annual

TOTAL

recognized

SAVINGS

60 10 50 3600

Working

Days/year

Time

saved/yr Cost Savings

On-site

Staff

Counts

TOTAL

Projected

SAVINGS 25%

35%

# reconnects

per day User type Avg Salary

Salary

+ benefits

Hourly

rate

60 Employed Physician $160,000 $216,000 $104 0.83 209 174.17 $18,086.54 130 $2,351,250.00 $587,812.50

20 Consulting Physician $200,000 $270,000 $130 0.28 209 58.06 $7,536.06 40 $301,442.31 $75,360.58

60 clinician $42,000 $56,700 $27 0.83 227 189.17 $5,156.61 800 $4,125,288.46 $1,031,322.12

20 Professional $65,000 $87,750 $42 0.28 200 55.56 $2,343.75 400 $937,500.00 $234,375.00

15 Support $33,000 $44,550 $21 0.21 235 48.96 $1,048.60 300 $314,580.83 $78,645.21

1670 $8,030,061.60 $2,007,515.40

Time Savings with Roaming

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• Imaging access from anywhere

Access images from anywhere, even home.

Savings -

• Dragon dictation access from anywhere

Dictate from any device with a USB 2.0 port, even home.

Savings -

$821,621

$786,258

195 physicians

8 images/day

7 minutes of travel

110 physicians

19 images/day

5 minutes of travel

Metro Health Specific Time Savings

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Agenda



Plan the Next Steps

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Jan

2007

Oct

2007 Feb

2010

MetroAnywhere

Development

Begins

MetroAnywhere

Go Live when

Metro Health

Moves into its

New hospital

MetroAnywhere

With TCX

Video playback

USB support

v1 v2 Feb

2011 v3 Oct

2011

Cisco

VXI

Purchase

MetroView

MetroAnywhere

VMware View

V4.6

v4 Dec

2012

MetroView

VMware View

V5.1

1100 PCs

900 Wyse Thins 1400 PCs

1100 Wyse Thins

300 Wyse Laptops

1300 PCs

1600 Cisco Zeros

310 Wyse Laptops

$1,610/client

$1,140/client

$588/client

Desktop Virtualization Timeline

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PCs versus Pooled Sessions 3000 PCs at $590/PC -

1400 Thin/ 1400 PCs with pooled sessions -

$1,770,000

Zero clients versus local full Windows OS clients Local desktop imaging of a PC is about 2 hours

A thin client image is about 30 minutes

A Zero Client is about 5 minutes

Annualized Savings - $11,601

$70,502

break/fix – 7 devices/week

2500 device refresh

$3,420,000

$1,765,000

In 2011

Today 2500 Zero/ 500 PCs with pooled sessions -

Average 40% reduction of backend session requirements

IT Savings – Compared to Deployed PCs

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IT Savings – Net Reduced Support Desk Calls

Reduced desktop technician support requirements

for zero clients

Remote access to virtual desktop is seamless

and integrated

Endpoint proliferation while implementing an EMR

FTE per device ratio is increased

Before Epic Inpatient: 2000 endpoints - 898 monthly support calls

After Epic Inpatient & View: 3100 endpoints - 875 monthly support calls

35% increase Net Call Volume change

37% time savings = ¼ FTE

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Included in the solution

400+

applications

Full Windows

OS desktop

Novell Zenworks

Microsoft SCCM

Application

Application

Application

Servers

This solution

was not needed!

ThinApp

Active

Directory

IT Savings – ThinApp Application Streaming

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Savings Summary

Impact of VMware View Savings

Time savings with roaming $2,007,515

Imaging access from anywhere $821,621

Dragon dictation access from anywhere $786,258

Zero clients versus local full Windows OS clients $70,502

Net reduced support desk calls $0

No additional app distribution solution $0

Cost of our VDI solution ($2,000,000)

Potential Annual Savings $1,685,896

Intangible Benefits

Security savings + ?

Built in upgrade environment + ?

Built in disaster recovery + ?

Optimized hardware functionality + ?

Single Sign On + ?

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Agenda



Plan the Next Steps

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• Ask why transform before you try to figure out how it transforms.

• Transformative success will only come if you take the time to prepare.

• The will to transform will succeed only if you will believe in the benefits.

This is a transforming technology

You can't do today's job with yesterday's

methods and be in business tomorrow.

– Nelson Jackson

Thinking Differently about VMware View

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Plan the Next Steps

Enable your vision for the whole organization

Must have the vision of a full desktop replacement

Must ID the key champion stakeholders

Implement a tightly integrated solution

Must perform a Proof Of Concept

Pilots are very necessary, but have a plan to enable the vision

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Time waste differs from material waste in that there can

be no salvage. The easiest of all wastes and the hardest

to correct is the waste of time, because wasted time

does not litter the floor like wasted material.

Henry Ford

Be the change you wish to see in the world.

Mahatma Gandhi

Forward success will always be followed by maddening setbacks,

often with the irresistible urge to go back to what is perceived as “safe”,

potentially sacrificing vision and a differentiating future for status quo.

Aivars Apsite

Closing Thoughts on Transforming Technology

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Questions?

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Other VMware Activities Related to This Session

HOL:

HOL-MBL-1301

Horizon View from A to Z

Group Discussions:

EUC1001-GD, EUC1006-GD

View with Matt Coppinger or Andre Leibovici

THANK YOU

Quantifying the Business Value of

VMware Horizon View

Aivars Apsite, Metro Health

Ridwan Huq, VMware

EUC5211

#EUC5211

46

APPENDIX

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Security savings

No cost for additional encryption at endpoint

USB connectivity is managed

Built in upgrade environment

Various solution environments can be tested simultaneously

Built in Disaster Recovery

Spread across two active data centers

Endpoint hardware refresh cycle every year

Can lower costs and stretch out useful life

Other Strategic Benefits Representing Savings

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Endpoint hardware functionality is optimized

Application efficiency is shifting to operate more efficiently in virtual

environments vs physical desktops

Remote access to un-managed desktops

In community care settings, allow affiliates to manage their own

desktops and applications running on them

Single Sign On

Savings are generated by eliminating multiple

application logins within active session

Windows 7 upgrade

Significantly shorten the upgrade timeframe

Other Strategic Benefits Representing Savings

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In case you missed it…..

over $3,000,000

That is

in annual time savings

VMworld 2013: Quantifying the Business Value of VMware Horizon View

Technology

Transcript of VMworld 2013: Quantifying the Business Value of VMware Horizon View