Data Centre Virtualization & Green IT in Greece
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1 Data Centre Virtualization & Green IT in Greece Stelios Charalambakis Research Analyst IT Markets, IDC Greece, Cyprus & Malta Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2 Agenda Some Greek IT Market Sizing Top 10 Server Infrastructure Predictions Defining Virtualization Virtualization Predictions and Real Facts The Advantages and Pit-Falls of Virtualization Green IT and Environmental Consequences Some Conclusions Nov-08 2
3 Greek ICT Market Forecast ( m) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Telecom Services Hardware IT Services Software Telecoms very well developed IT relatively immature Hardware is the strongest IT category Software is small, but has the strongest growth outlook Nov-08 3
4 Greece IT Market is approaching maturity Nov-08 4
5 European Server Infrastructure Market 2008 Top 10 Predictions Server Technology Predictions 1. x86 servers will gradually increase their market dominance against enterprise systems and make inroads in all vertical industries. 2. Virtualization will become a more mature technology with an increased focus on management tools. 3. Virtualization will move from a technology discussion to a broader business value discussion and will come to be known as "virtualization across the enterprise." 4. Blades will continue their double-digit growth on the EMEA server market in Vendors will intensify their focus on the midmarket and release solutions tailored to the needs of this segment. 6. Green computing will become a key differentiator in vendors' marketing strategies. 7. Windows Server 2008's long march to completion will finally reach the finish line during the first quarter of 2008, but mainstream adoption will drag well into Automation will play an important role as IT organizations control costs, improve service delivery, meet compliance regulations, and manage virtual resources. Go-to-Market Predictions 9. The number of partnerships between vendors will increase. 10. Server revenue from the channel will grow. Nov-08 5
6 Some Current Data Centre Challenges Data Centre devices are typically under-utilized Servers 25% Storage 40% Network I/O 40% PCs 5% Operational spending is overtaking capital spending due to higher energy costs, salaries, consumerables, etc.. High management overheads due to skills shortages, a lack of systems management tools, etc Many applications are hard-wired to their underlying systems creating widespread duplication and server sprawl Introducing new applications is difficult you have to find a service window, separate development from production, etc.. Nov-08 6
7 A Common Definition for Virtualization Virtualization is the disassociation of a data process from its underlying physical environment... is sometimes making a big thing look like a number of smaller things, for instance: Where a single machine is partitioned into two or more physical or logical devices Where from a management perspective a single machine appears to be multiple devices, with each capable of being addressed independently So, a computer will appear to be multiple computers, a storage system a number of storage devices, etc... is sometimes making a number of smaller things look like a single big thing, for instance: Creating a single system image or device from a number of separate parts, as in a) a number of Web services looking like a coherent corporate application suite, b) a data library sitting atop a number of separate storage systems, or Nov-08 7
8 A Definition of Server Virtualization Where a physical server is divided into two or more physical or logical servers. The outcome is that a single server appears to be multiple servers, capable of running multiple operating system instances and/or applications with some degree of isolation on dedicated hardware resources. Host OS OS/390 Windows Linux, or Unix Kernel VMBus Guest OSs Applications Applications Applications Kernel Kernel Kernel VMBus VMBus VMBus Hypervisor Server Hardware Nov-08 8
9 Technology Review Where is Virtualization Being Used? Large SMP Mainframe Partitioning Size of System Virtual Machines HA Clustering 1P Blade Grid HPC HPC Clustering Composite Application Monolithic Application Workload Large Database Nov-08 9
10 Virtualization and System Management Software Predictions Virtualization will be used to increase server utilization; the "virtualization effect" will see a slowing in overall unit growth rates but ASVs will increase as systems are shipped more richly configured. Impact: A significant number of large enterprises already use virtualization, impacting around a quarter of the installed base. In this segment upwards of 50% of servers are expected to be virtualized over the coming year. Virtualization will drive sales of new and more richly configured server systems. Impact: Systems need richer specifications to achieve the projected ROI benefits of virtualization from a consolidation and utilization standpoint. More virtualization and system management software products will be introduced to coordinate and pool together hardware resources, with the objective of making IT resources as flexible and changeable as possible. Impact: Will accelerate server consolidation trends in the mid term. Nov-08 10
11 Server Virtualization Adoption No 67% Yes 33% n = 502 Q.: Is your company currently using server virtualization products such as VMWare or other? Nov-08 11
12 Purchasing Virtualization Software by Company Size, Q.: Do you typically purchase your virtualization software separately from the server hardware, or do you buy them together as a solution? 100% 90% 80% 70% 48% 49% 40% 43% 27% 39% 37% 60% 50% 40% 30% 20% 52% 51% 60% 57% 73% 61% 63% 10% 0% SMB Solution Separately Medium Business Large Business 2008 ALL Medium Business Large Business 2007 ALL 2007 n = n = 226 Nov-08 12
13 Virtual Server Technologies Virtual Technologies in Use, 2008 Q.: What technologies are you using to partition these servers? 60% 55% 50% 40% 30% 20% 14% 13% 13% 10% 0% VMware Server ESX VMware (Tech. unknown/other) VMware Server GSX MS Virtual Servers Xen 3% 2% Sun Containers Other 12% n = 301 Note: Multiple responses allowed, total may exceed 100% Nov-08 13
14 Supplier Satisfaction Plans for Supplier and Prompt for Change, 2008 Q.: Do you intend to change your virtualization solution over the coming year? 0% 10% 20% 30% 40% n = 301 n = 301 3% 3% 1% 1% 2% 8% 8% 8% 7% 9% 10% 20% 35% Unsatisfactory vendor performance Overall product is better Don't want to change Management decision to change Improved vendor performance Improved product mngt/maintenance Improved product features No 82% Don't know 2% Improved product availability Yes 16% Q.: What would prompt you to change? Improved product ability Unsatisfied with product Cost savings Other Don't know Nov-08 14
15 Managing Virtualization Changes to Physical Risk, 2008 Q.: Has virtualization increase risk in your physical infrastructure? Yes 12% Q.: If so, what techniques are you using to manage this risk? Plans to tackle the increased risks include: Backup solutions Clustering Disaster recovery Remote control programming Remote deployment platform Service level agreements from the vendor Q.: Are you planning to change physical infrastructure to adapt to use of virtualization? No 88% Yes 45% No 55% n = 301 n = 33 Nov-08 15
16 Server Characteristics Server Reuse and Life Cycle, 2008 Q.: When virtualizing a server do you usually: Both 11% Deploy virtual machines on existing servers 45% Q.: What is the average life of your virtual machines? <1 year 1 2 years 3% 10% Purchase new servers & partition those 44% n = 298 Same 69% Replace earlier than usual 11% Keep for longer 20% Q.: How is virtualization impacting the life of your physical servers? n = years 3 4 years Longer than 4 years 0% 10 % 20 % 24% 39% 24% 30 % 40 % n = 301 Nov-08 16
17 Virtualization Drivers All Companies, 2008 Q.: What are the top three reasons that your organization virtualized these XXOS servers? Costs/Savings 89.4% Respond to Changes 15.6% Cost savings / Reduced costs 25.2% Flexibility 10.0% Ulitisation / Optimise resources 15.9% Load balancing / Business requirements 2.0% Reduce floor space / Space savings 15.3% Time / Time to market 1.7% Reduce power consumption 14.3% Rapid changes 1.0% Hardware costs / Server costs 12.3% Speed 0.7% Staff savings / Labour savings / Better use of staff time 2.3% Improve time to market 0.3% More efficient environment / Efficiency 1.7% Cost effective 1.0% Availability 27.2% SW licensing 0.7% Backup / DR 15.6% Lower operational costs 0.3% Improved availability / For high availability 6.3% ROI 0.3% Reliability 2.3% Recovery 1.7% Management/Maintenance 30.6% Improve dependability 1.0% Ease of deployment / Rapid provisioning / Time to market 7.6% Reduce liability 0.3% Simplify management / Maintenance 7.0% Simplicity / Ease 5.6% Consolidation 16.9% Better Maintenance / Support 5.6% Reduce the number of server footprints 8.6% Reduce maintenance / Management / Administration 4.0% Consolidation / Server consolidation 4.7% Ease of use 0.3% To consolidate multiple applications/workloads 2.0% Convenience 0.3% Standardisation / Consistency 1.7% Features/Functionality 18.9% Isolation/Test-Dev 7.0% Security 12.3% Test / Development environment 5.6% Performance 2.7% Test it / Play with it 0.7% Functionality 2.0% Support multiple OS 0.7% Scalability 2.0% New technology 5.6% Other 12.6% None 3.0% n = 301 Nov-08 17
18 Top Cost Saving Reasons in Detail by Company Size, 2008 Cost/savings Cost savings/reduced costs Ulitization/optimize resources Reduce floor space/space savings Reduce power consumption Hardware costs/server costs Staff/labor savings 2% 3% 3% 0% 9% 16% 16% 9% 15% 18% 17% 8% 14% 13% 14% 17% 12% 11% 14% 16% 25% 29% 24% 29% 77% 86% 89% 95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small/medium business Medium business Large business All Nov-08 18
19 Top Management Drivers in Detail by Company Size, 2008 Time to market 4% 8% 9% 9% Simplify mgmt/maintenance 5% 7% 9% 11% Better maintenance/support 1% 6% 6% 7% Simplicity/ease 3% 6% 6% 9% Reduce maintenance/mgnt/admin. 3% 4% 4% 4% Convenience 0% 0% 0% 1% Ease of use 0% 0% 0% 1% 0% 2% 4% 6% 8% 10% 12% Small/medium business Medium business Large business All Nov-08 19
20 Decision Making for Virtualization Q.: Rate the following criteria for their importance in your decision to virtualize your XXOS servers: Improve server utilization 5.6 Reduce server deployment time Server consolidation Improve test or production environment Improve availability Reduce ongoing server costs Simplify management Response to changing workload demand Reduce upfront server costs Response to business change Consolidate number ofaapps Improve support of legacy apps Reduce SW licensing costs Staff savings Average ratings 2008 n = n = 146 Nov-08 20
21 Hurdles to Virtualization Deployment and Expansion, 2008 Q.: What were the major hurdles you faced in implementing virtual servers in your organization? Q.: What are the top 3 major hurdles you face in expanding use of virtual servers at your organization? None Lack of in-house technical expertise Difficult to implement Costs Lack of support from software vendors for virtual environment Immature Technology/Not proven/too new Perceived as risky Scepticism among internal staff Internal management issues/business unit/stakeholders' resistance Budget constraints Today Future Inadequate backup tools Software licensing costs Educating line of business on benefits Lack of management tools/poor management tools Inadequate systems management tools Creating a business case/difficult to demonstrate measurable ROI or reduced TCO Other 0% 10% 20% 30% 40% n = 301 Nov-08 21
22 Non-Virtualized IT Users Q.: Are you familiar with the concept of server virtualization? Q.: Do you plan to implement any server virtualization programs in the next 12 to 24 months? No 19% No 46% Yes 54% Yes 81% n = 176 n = 176 Nov-08 22
23 Reasons for Not Virtualizing Servers Q.: What is the primary reason server virtualization has not been introduced at your site? Don't see a need 47% Lack of in-house expertise Internal management issues Difficult to manage/maintain n = 171 Too expensive Too difficult to implement Budget constraints Not worth investment Business unit resistance Other 11% 9% 8% 7% 5% 2% 1% 1% 9% 0% 10% 20% 30% 40% 50% Nov-08 23
24 The Potential Advantages and Pit-Falls of Virtualization Advantages Helps to simplify the underlying infrastructure complexity Shortening development and deployment cycles Better ties with business processes and competitive advantage Reducing energy bills and improving Green credentials Pit-Falls Additional software costs A Virtual server sprawl Difficulty in managing virtual and physical resources Higher energy costs if you don t scrap the old gear Sharing and friendship problems from departments expecting dedicated resources Nov-08 24
25 Key Findings on Virtualization Virtualization Adoption is Rapid 35% of servers purchased in 2007 were virtualized and with an expectation that 52% of those bought in 2008 will be virtualized. 54% of those not currently running virtualization expect to do so in 2008 or Virtualization Use is Getting More Complex and Widespread Growth is in use for backup and availability as well as virtualization for strategic benefit. Skills and Licensing Hold Virtualization Back Availability of skills and application vendor licensing are the factors causing most problems for virtualization users. 23% of virtualization users report that their application vendors' licensing is still not meeting their needs and 33% of large businesses report that it limits use of virtualization. Nov-08 25
26 Cost & Investments cross-over Nov-08 26
27 Governments turning to Energy efficiency Nov-08 27
28 Datacenter Thermodynamics Predictions Power wastage in the datacenter has a significant impact on overall "power capacity." Green IT will be a major theme though business elements and constraints will drive the agenda rather than environmental concerns. Impact: Power wastage comes from both unutilized servers and overprovisioning of cooling; this is being addressed by virtualization to increase utilization and the following of datacenter best practice together with dynamic cooling solutions. In doing so facilities managers will free up power capacity. Today the lack of power capacity and over-provisioning of cooling capabilities act as an inhibitor, but looking forward best practice and virtualization require little investment. Dynamic cooling solutions require more planning and higher investment. Server footprints will continue to shrink (i.e., increased penetration of blades), placing pressure on power and cooling capacity of datacenter facilities. Impact: While penetration of blades is low at present it is expected to rapidly increase through the forecast period, which, if current trends continue, will see power and cooling capacity exceeded. Nov-08 28
29 Datacenter Thermodynamics Predictions Existing power infrastructure continues to lag datacenter requirements. Vendor strategies focus on increasing ROI associated with power investment at all levels. Impact: Power capacity acts as the glass ceiling denoting how many systems can be housed within the datacenter. Datacenter power and cooling infrastructure exceed capacity as a result of increasing server density. Impact: High cost of upgrading power and cooling infrastructure will impact other areas of IT budget. This will be felt strongest in SMB sector where to date the issue is not widely recognized. Corporate and Social Responsibility Purchasing process will be impacted by environmental concerns. Impact: Green computing is a "nice to have" which can be used for marketing purposes. There remains a perceived cost in being "green" and therefore the impact will not be felt until legislation is put in place forcing the issue. Nov-08 29
30 Some Conclusions Greece is a small (but strongly growing) market, telecoms and hardware are dominant components Virtualization can help simplify complex systems and infrastructure The disassociation of a data process from its underlying physical environment It can be helpful to think about the role it plays in the industry s submarkets (including the services, storage, server and software) If implemented well virtualization has a number of important business and technical benefits Majority of companies understand the importance of environmental factors but only few apply green criteria for purchasing-decisions Nov-08 30
31 Recommendations CIOs Should use virtualization to drive change in their infrastructure from silos of IT to the long promised "cloud" of resources. Virtualization Providers Need to differentiate through partnerships and advanced technologies. Cost saving is important but given the lack of measurement of costs it may prove a mixed argument. IT Services Providers Should note the relatively short length of virtualization projects and either fit to this or expand their engagement to a complete look at their customers' infrastructure. Nov-08 31
32 Thank you! Stelios Charalambakis Research Analyst IT Markets IDC Greece Nov-08 32
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