© 2007 Avnet Inc. All rights reserved.
Meeting the Challenges of IT Optimization… Using Financial Justification to “Jump Start” a Server or
Desktop Consolidation project
John Dodge HayesManager Consolidation Solutions
1/17/08
© 2007 Avnet Inc. All rights reserved.
© 2007 Avnet Inc. All rights reserved.
Importance of a Financial Justification
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 - NotImportant
3 5 - VeryImportant
% of Responses
Q: Using a scale of 1 to 5, with 1 being “not at all important” and 5 being “very important”, how important is financial justification, such as ROI, for securing internal funding for an IT project at your company?
© 2007 Avnet Inc. All rights reserved.
Consolidation Impact Assessment Services
• Unix (HP-UX, Solaris, VMS, Tru64, AIX) Server Consolidation Assessment –to- Integrity (HP-UX or Linux)
• Windows and Linux on x86 –to- VMware VI3
• Desktop Virtualization Assessment –to- VDI or HP PC Blade environment
© 2007 Avnet Inc. All rights reserved.
Assessment Strategy
• Analyze both the Technical and Financial Impact of Server and Storage consolidation
• Use a tool called CapacityPlanner from VMware
– Non-disruptively captures hardware and software inventory from current environment
– Measure actual utilization of servers and records the peak workloads
– Uses peak workloads to create consolidation scenarios
• Model Financial Impact using Brigham-Gapenski methodology
– Collects financial assumptions at start of project via Finance Questionnaire
– Total Cost of Ownership (TCO) analysis of selected IT environment
– Compares baseline to the costs of a consolidated environment
– Provides a detailed Return On Investment analysis
© 2007 Avnet Inc. All rights reserved.
VMware Capacity Planner
Data Upload
Data Analyzer
HTTPS
InformationWarehouse
Infrastructure Assessments
Capacity Planning
Server Consolidation
Capacity Planner Dashboard
Discovery Inventory
Performance Data Synch
Data ManagerClient IT Environment
DataCollector
Agent-less Data Collection
ClientSite
HostedSecure Site
Web
Industry Data
© 2007 Avnet Inc. All rights reserved.
Hardware
Platform B
CPU
0 – 1
GH
z
CPU
1 – 1
GH
z
Hardware
Platform A
CPU
0 –
80
0M
Hz
CPU
1 –
80
0M
Hz
Virtualization Modeling
Capacity
Planner
Hardware
Platform C
CPU
0 – 2
GH
z
CPU
1 – 2
GH
z
Application C
80% Utilizatio
nApplicati
on B80%
Utilization
App. A80%
Utilization
Target Platform
CPU
0 – 2
.4G
Hz
CPU
1 – 2
.4G
Hz
Inventory gathered using Collector
Utilization gathered using Collector
© 2007 Avnet Inc. All rights reserved.
Virtualization Modeling
Capacity
Planner
Hardware
Platform A
CPU
0 –
80
0M
Hz
CPU
1 –
80
0M
Hz
Hardware
Platform B
CPU
0 – 1
GH
z
CPU
1 – 1
GH
z
Hardware
Platform C
CPU
0 – 2
GH
z
CPU
1 – 2
GH
z
Application C
80% Utilizatio
nApplicat
ion B80%
Utilization
App. A80%
Utilization
Target Platform
CPU
0 – 2
.4G
Hz
CPU
1 – 2
.4G
Hz
App. A20%
Utilization
Virtualization
© 2007 Avnet Inc. All rights reserved.
Virtualization Modeling
Capacity
Planner
Hardware
Platform A
CPU
0 –
80
0M
Hz
CPU
1 –
80
0M
Hz
Hardware
Platform B
CPU
0 – 1
GH
z
CPU
1 – 1
GH
z
Hardware
Platform C
CPU
0 – 2
GH
z
CPU
1 – 2
GH
z
Application C
80% Utilizatio
nApplicati
on B80%
Utilization
Target Platform
CPU
0 – 2
.4G
Hz
CPU
1 – 2
.4G
Hz
App. A20%
Utilization
Virtualization
Application B30%
Utilization
Virtualization
© 2007 Avnet Inc. All rights reserved.
Virtualization Modeling
Capacity Planner
Hardware
Platform A
CPU
0 –
80
0M
Hz
CPU
1 –
80
0M
Hz
Hardware
Platform B
CPU
0 – 1
GH
z
CPU
1 – 1
GH
z
Hardware
Platform C
CPU
0 – 2
GH
z
CPU
1 – 2
GH
z
Application C
80% Utilizatio
n
Target Platform
CPU
0 – 2
.4G
Hz
CPU
1 – 2
.4G
Hz
App. A20%
Utilization
Virtualization
Application B
30% Utilization
Virtualization
Application C
50% Utilizatio
n
Virtualization
© 2007 Avnet Inc. All rights reserved.
HP-UX Consolidation Case Study
© 2007 Avnet Inc. All rights reserved.
Sport Vehicle Manufacturer
• Client had production environment with 49x HP-UX servers – rp34xx, L2000, L3000
• Primary application SAP ERP on Oracle and some MRP on Informix
• Running into facility issues – power and rackspace
• Need to build more robust DR capability
© 2007 Avnet Inc. All rights reserved.
Production – Load Factor/System
Load factors above 1.5 result in severely degraded system response.Systems reporting normalized load factors > 3 graphed at 3.0
© 2007 Avnet Inc. All rights reserved.
Load Factor Definition
• For a quick example let’s consider the output below.
Load average of a system can be found by running top
load averages: 2.43, 2.96, 3.41
• One minute load average is 2.43
• Five minute is 2.96
• Fifteen minute load average is 3.41
• Here are some conclusions we can draw from this:
© 2007 Avnet Inc. All rights reserved.
Load Factor Definition - continued
On average, over the past one minute there have been 2.43 processes running or waiting for a resource Overall the load is on a down-trend since the average number of processes running or waiting in the past minute (2.43) is lower than the average running or waiting over the past 5 minutes (2.96) and 15 minutes (3.41) This system is busy, but we cannot conclude how busy solely from load averages. It is important here to mention that the load average does not take into account the number of processes. Another critical detail is that processes could be waiting for any number of things including CPU, disk, or network.
So what we do know is that a system that has a load average significantly higher than the number of CPUs is probably pretty busy, or bogged down by some bottleneck. Conversely a system which has a load average significantly lower than the number of CPUs is probably doing just fine.
Posted on Monday, March 13, 2006 by Jon Emmons
© 2007 Avnet Inc. All rights reserved.
Defining Groups and Applying Loads
These potential consolidation scenarios were developed based on the following assumptions:
•Each CPU is set at a peak load of 1.5 per cpu to get an estimate of required TPMC – TPMC charts received from PQRT data from HP
•Memory is at 80% of the recorded peak memory usage for the servers
•All servers are 16 Cores/2Cell and are assumed to support two nPar’s and up to 8 vPars.
•Each server has 16 x 2gb FC ports and 16 x 1000TX Network cards
•All servers are considered as vPar candidates. No application layering has been considered at this time
© 2007 Avnet Inc. All rights reserved.
Consolidation to rp7420 servers
6:176134249All Servers to rp7420
Consolidation Ratio
New Servers
Not Consolidated
Servers OutConsolidated
Servers In
6:176134249All Servers to rp7420
Consolidation Ratio
New Servers
Not Consolidated
Servers OutConsolidated
Servers In
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Suspect servers – Excessive load
4889403759290001,08925.294096800 MHz19000/800/rp3410pdomsdb1
39365090245390097121.9181901 GHz29000/800/rp3440pdscmdb1
248615542811568005,72514.27491501 GHz69000/800/rp4440pdwcsdb1
232309202815390015712.93163821 GHz29000/800/rp3440pdsapas4
2307838051908001,74915.2581901 GHz49000/800/rp3440prdgf1
1466428271908001,5739.6981901 GHz49000/800/rp3440prdybc1
tpmc REC
Mem Rec
tpmcFree Mem
Load Peak
MemorySpeedCore Count
ModelSys Name
4889403759290001,08925.294096800 MHz19000/800/rp3410pdomsdb1
39365090245390097121.9181901 GHz29000/800/rp3440pdscmdb1
248615542811568005,72514.27491501 GHz69000/800/rp4440pdwcsdb1
232309202815390015712.93163821 GHz29000/800/rp3440pdsapas4
2307838051908001,74915.2581901 GHz49000/800/rp3440prdgf1
1466428271908001,5739.6981901 GHz49000/800/rp3440prdybc1
tpmc REC
Mem Rec
tpmcFree Mem
Load Peak
MemorySpeedCore Count
ModelSys Name
© 2007 Avnet Inc. All rights reserved.
Workload mappings - Example
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x86-Windows Consolidation Case Study
© 2007 Avnet Inc. All rights reserved.
Capacity Planner Windows Servers - What we’re seeing
• Rarely find sites with over 10% average prime time utilization … some sites lower than 5%
• About 40 servers per System Admin
• Main cost drivers are Power, System Admin, Maintenance, and Growth/Refresh
• Seeing 3 year TCO’s of around $1.5 million per 100 servers
• Typical consolidation of 7:1 to 10:1, goal is usually at least 10:1
• Typical IT Cost Reduction of 25%, < 18 month payback
© 2007 Avnet Inc. All rights reserved.
High-Level View: The Dashboard
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Peak Load and Peak Hour
Server CPUs MhzBusiness Hours Peak Load Peak Hour
aegis 2 448 6.86 21.34 10
arcadia 2 702 2.82 20.29 18
atlantis 1 199 7.09 22.79 8
boris 1 1,396 2.45 3.49 0
cim7 2 996 2.35 35.39 21
cisdev 2 0 8.6 44.33 15
coil 2 901 19.87 47.33 18
doc1 1 200 7.31 19.19 21
docbeta 1 448 3.8 49.15 21
edmsdb1 4 701 9.99 16.38 15
edmsdb1t 4 701 0.57 1.21 14
edmsdb2 4 701 2.88 5.17 2
edmsdb2t 4 701 1.3 5.08 2
edmsdc1 2 996 7.23 27.87 6
edmsdc1t 2 996 0.79 22.42 4
© 2007 Avnet Inc. All rights reserved.
Created Scenarios – Windows
NameServers
InServers
OutServers Not
Consolidated
453 Dovercourt to Target DL385 2.6 GHz (4) 16GB VM 4 1 0
Misc to Target DL385 2.6 GHz (4) 16GB VM 12 2 1
Unknown to Target DL385 2.6 GHz (4) 16GB VM 3 1 0
St. Mary DL580 to Target BL480c 3.2 GHz (4) 16GB VM 19 6 2
St. Mary minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 75 8 2
St. Mary minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 75 8 2
Taylor DL580 to Target BL480c 3.2 GHz (4) 16GB VM 13 4 1
Taylor minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 76 12 5
Taylor minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 76 12 5
Waverley DL580 to Target BL480c 3.2 GHz (4) 16GB VM 4 1 0
Waverley minus DL580 to Target BL460c 3.2 GHz (4) 16GB VM 41 4 1
Waverley minus DL580 to Target DL585 2.6 GHz (8) 16GB VM 41 4 1
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Scenario Results – St. Mary Group
© 2007 Avnet Inc. All rights reserved.
Financial Assumptions
1. 314 Total Windows Servers from Dashboard
2. Net new physical server annual growth rate of 14.3%
3. Assume Five (5) year average useful life
4. Five year lifecycle for hardware with a refresh rate of 50% of 1/5 of the server base per year (10%)
5. Average Server replacement cost = $7,500
6. Six FTE for core Windows Servers Management, 75% utilized for server management at assumed $100,000 fully burdened cost
7. Assume IT budget assessed via five year straight line depreciation
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Financial Assumptions - continued
1. 228 Windows Servers considered as Consolidation Candidates and placed in financial model
2. Average server age calculated from Ave server CPU MHz (2047) is 36.0 months
3. Using $1000/server/year as maintenance cost of servers over 36 months, assumes 50.0% of servers are over 36 months
4. Power/Cooling Costs, using calculated power, power infrastructure and AC costs based on 350 watts/server for existing servers and 600 watts/server for new at $0.04 per KWH
5. Assume no tax benefits
6. Requires a 36 month payback for project to be considered
© 2007 Avnet Inc. All rights reserved.
Financial Findings
3 Year TCO Breakdown
Sys Admin Costs: $1,120,737 (~70 servers : 1 FTE ratio)
Break/Fix Maintenance: $342,046
Growth (Capital): $513,000 (~33 servers / year)
Refresh/Replace (Capital): $515,250 (~23 servers / year)
Power & Cooling: $471,600
TCO Baseline Summary – 228 Servers(St. Mary, Taylor, Waverley)
Current TCO = $2,433,660
© 2007 Avnet Inc. All rights reserved.
Financial Findings
Three Year Payback Summary – 228 Servers(St. Mary, Taylor, Waverley)
Option
HW/SW Cost1
3 Year TCO2
IT Budget Reduction
Raw Savings
ROI (IRR%)
Payback(months)
BL460c 2W 16GB16 New8 Remaining
BL480c 2W 16GB8 New3 Remaining
$1,018,562 $1,864,906 $568,754 $1,966,475 31.1 22.2
DL585 4W 16GB16 New8 Remaining
BL480c 2W 16GB8 New3 Remaining
$1,422,270 $2,147,502 $286,158 $1,831,905 6.5 32.0
2Estimated implementation budget, $217,000
1Estimated storage capacity budget, $250,000
Current TCO = $2,433,660
© 2007 Avnet Inc. All rights reserved.
Financial Findings
Power, $364,861 , 19%
Sysadmin, $300,564 , 15%
Maintenance, $309,046 , 16%
Capital, $992,004 , 50%
Raw Savings Summary – BL460c/BL480c
© 2007 Avnet Inc. All rights reserved.
Your part …
© 2007 Avnet Inc. All rights reserved.
Desktop Virtualization Case Study
© 2007 Avnet Inc. All rights reserved.
Virtual Desktop (VDI)
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VDI Main Points
• Executive Summary: Virtual Desktop Infrastructure (VDI) – VDI simplifies desktop administrative and management tasks– Users access virtual desktops running in the data center– Technology supports both PCs and thin clients– Desktop security and data protection are centralized– Access can be easily extended to remote users
• Benefits of VDI– Efficient use of CPU and memory resources – Reduced desktop downtime and increased availability – Patches and upgrades performed in data center – New users can be up and running quickly – Data and applications reside in secure data centers– Centralized management reduces operational expenses
© 2007 Avnet Inc. All rights reserved.
High-Level View: A Dashboard
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Scenarios - Extrapolated
Scenario NameDesktops
InDesktops
ConsolidatedDesktops Not Consolidated
New Servers
Consolidation Ratios x:1
City Hall to BL465c-16GB 426 426 0 13 32.8City Hall to BL465c-24GB 426 426 0 10 42.6City Hall to BL465c-32GB 426 426 0 8 53.3City Hall to DL585-32GB 426 426 0 8 53.3S&J to BL465c-16GB 332 332 0 10 33.2S&J to BL465c-24GB 332 332 0 8 41.5S&J to BL465c-32GB 332 332 0 6 55.3S&J to DL585-32GB 332 332 0 6 55.3
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Current Desktop Environment
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TCO Detail
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TCO Detail - continued
© 2007 Avnet Inc. All rights reserved.
Financial Findings – VDI – City HallThree Year Payback Summary – 426 Desktops
OptionHW/SW Cost1
3 Year TCO2,3
IT Budget Reduction
Payback (months)
ROI (IRR%)
BL465c 16GB13 New
0 Remaining$417,836 $2,562,168 $663,555 17.5 54.6
BL465c 24GB10 New
0 Remaining$565,894 $2,705,496 $520,227 22.3 32.2
BL465c 32GB8 New
0 Remaining$549,716 $2,686,164 $539,559 21.7 34.4
DL585 32GB8 New
0 Remaining$510,104 $2,646,552 $579,171 20.4 39.7
2Estimated Implementation costs budget $91,294
1Estimated storage capacity budget $87,880 (4.16TB)
Current TCO = $3,225,723
3Includes thin client phase in over three years, $255,174
© 2007 Avnet Inc. All rights reserved.
Consolidation Steps
• Identify project– Work with your VAR to define scope
• Gather info for 2 page Project Request Form
• Submit to APS for SOW and pricing
• APS submits to HP for funding approval (2 week typical turnaround)
• Funding approved
• Delivery begins (1-2 weeks)
• Collect Data (4 weeks)
• Analyze and present results (1-2 weeks)
© 2007 Avnet Inc. All rights reserved.
Thank You!
© 2007 Avnet Inc. All rights reserved.
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