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Successfully Selling Virtualization To SMBs
Infrastructure Practice
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Agenda
• Market Overview
• Identifying Opportunities
• Customer Presentation
• New SMB Packages
• Handling Objections
• PTG Infrastructure 2011 Goals
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1/3 of SMBs have started virtualizing and ~50% are implementing in next 12 months1
VMware has 3X the market share in SMB as the nearest competitor
SMBs express 3-to-1 brand preference for VMware
VMware introduced vSphere pricing designed for SMBs
VMware is launched a global SMB marketing campaign
The SMB Virtualization Opportunity is Growing…
1. Source: Forrester Research, Inc., “The State of Emerging SMB Hardware Trends: 2008 To 2009,” February 29, 2009.
$25B MarketOppty
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The Problem
• Overwhelming complexity
• >70% of IT budgets just to keep the lights on
• <30% of IT budgets goes to innovation and competitive advantage
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Virtualization Mission – “Make the Plumbing Disappear!”
“Make the IT plumbing disappear in the small and
mid-sized business”•Stop worrying about daily IT operations and start planning for the future
•Focus on ways to better service your customers
•Have confidence that you can deploy new services faster, at a lower cost, and with less risk
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SMB Sales Approach•Containment approach - An ongoing effort to virtualize new applications and manage growth of existing ones
•Consolidation Approach - One-time event that moves existing applications onto a fewer number of servers
•Availability Approach - Introducing virtualization to increase application availability and data recoverability
– Ideal for customers looking for robust, affordable business continuity solutions
New
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The Customer Presentation
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How does Virtualization Solve My Problems?
Spend less of your budget on hardware, power, maintenance and administration
Spend less time worrying about and
reacting to downtime
VMware virtualization will get you 10x productivity on your servers
VMware virtualization is the most cost-effective business continuity solution
• High Availability
• Data Recovery
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Hardware
Virtualized World Physical WorldHow Do I Get 10x Productivity On My Servers?
Traditional x86 Architecture• Legacy rule: Run only one application
per server because single application crashes result in OS or server failure
• Typical hardware utilization under 8%
Virtualization: • New rule: Run multiple applications per
server because OS/applications are isolated from one another
• Typical hardware utilization 80%
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VMware Impact on Small and Midsized Businesses
Increase Staff Productivity
Increase Application Availability
Reduce Physical Infrastructure Cost1
Increase Data Protection
2
3
4
3-Yr Cost Savings Opportunity*
20 Servers 50 Servers
$290k $774k
1 month Payback
3 month Payback
* VMware TCO Calculator
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Immediate Savings on Server Consolidation
ATER VMware
Before VMware With VMware Savings in $ Savings in %
Servers 20 3
Utilization 8% 80%
Server HW 3 -Yr Cost $208,000 $49,918 $158,082 76%
Networking 3 -Yr Cost $17,649 $4,412 $13,237 75%
Real Estate, Power & Cooling $97,000 $36,141 $60,819 74%
VMware license and support cost $0 $5,706 ($5,706)
Shared storage 3 -Yr Cost $0 $23,004 ($23,004)
Total 3 Yr Capital Costs $322,649 $119,181 $203,468 $63%
Before VMwareWith VMware
More applications per server = less servers to buy, power, and maintain
Reduce Physical Infrastructure Cost1
$200k+ 3-Yr Cost Savings!
Source: VMware TCO Calculator – www.vmware.com
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Get More Done with Existing Staff
% of IT Staff Time Spent on Maintenance
With VMware
24%
Do more work with the same number of people = operating cost savings
Drivers of productivity improvements:
Zero downtime maintenance
Built-in high availability
Dynamic patching
Instant provisioning
Increase Staff Productivity2
Before VMware With VMware Savings in $ Savings in %
Servers 20 3
Utilization 8% 80%
Server Provisioning 3 -Yr Cost $26,065 $1,954 $24,111 93%
Server Administration 3 -Yr Cost $139,971 $120,374 $19,597 14%
Automated Patching with VMware Update Mgr $57,375 $15,501 $41,874 73%
Total 3 Yr Staff Operating Costs $223,411 $137,829 $85,582 $38%
72% $85k+ 3-Yr Productivity
Savings!
Source: VMware TCO Calculator – www.vmware.com
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Keep Your Business Running
Automatic detection and restart of failed servers
Increase Application Availability3
Detects server failures and initiates the new virtual machine restart on a different physical
server without human intervention
Typical downtime per failure
4 hours
Lost revenue per hour $14k*
Lost staff productivity per hour
$50/hour
Average failures per year
2
Savings per Year $120k
Average Downtime Costs*
* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)
How much does down time cost your
business?
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Ensures Data is Available and Recoverable
Increase Data Protection4
Built in data protection saves time and money
•Simplifies administration
•Faster recovery times
•Save on storage costs with disk de-duplication
•Less downtime = higher staff productivity
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Benefits: •Low cost, entry-level option for users without shared storage
Recommended VMware Product: •Essentials
Benefits: •Enables virtualization features such as high availability, vMotion and DRS•Enhanced scalability, management and performance
Recommended VMware Product: •Essentials Plus or Advanced Acceleration Kit NAS, iSCSI or
SAN Storage
Seamless Storage Integration
ESX
OSAPP
OSAPP
OSAPP
ESX
OSAPP
OSAPP
OSAPP
NFS or
VMFS
Virtual machine data can be stored on local disks
Storage can be shared between multiple virtual machines
Local Storage
Shared Storage (NAS, iSCSI or SAN)
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Which Package is Right for Your Customer?
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Selecting the Right Package
VmwareAdvanced
Acceleration Kit
Microsoft Hyper-V
Microsoft Hyper-V
• Wants to virtualize more than 3 physical servers
• Or will want to in the future
Customer NeedsRecommended Product
VMwareEnterprise Plus Acceleration Kit
• Will not want to virtualize than 3 physical servers
• And won’t in the future
• Is interested value added features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion
or
• Is NOT interested features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion
or
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Handling Objections
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What Puts VMware Ahead of Microsoft?
2.Most Trusted, Reliable, Robust VMware is the proven market leader in its 4th generation product.
3.Easiest to deploy application uptime and data protection FT, Data Recovery with de-duplication, HA & VMotion
4.Most Cost Effective Lowest cost per application – the real way to measure cost
Low entry price with Essentials packages for small IT environments
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All My Eggs in One Basket?
• “It seems risky loading up so many apps on one server. What if the server fails or one of the apps?”
• Response
– Failure to an application on one virtual machine does not affect other virtual machines on the same physical server
– VMware High Availability and Data Recovery protect your application workloads and data in the event of unplanned downtime.
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I’m Already Using Open Source, Why Buy?
1. Business continuity functionality
– Fault Tolerance
– High Availability
– Data Recovery
3. Centralized management of virtual machines
– Save significant administration time
– Update and patch all servers simultaneously
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Plan for 2011
Business Performance$ ??? K plan for 2011
Direct Staffing
Projects
$$ ??? K $$ ??? K
RajatAkash
+Prosoft Team
VMwareMicrosoft
??? consultants @ 100/hr
??? Projects @ ??K
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Thank you!
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