The Evolution of the Virtual Environment

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1 Dan Kusnetzky Vice President System Software The Evolution of the Virtual Environment And the Impact on Corporate IT Infrastructure

2 Agenda IDC s view of the virtual environment Market drivers pushing virtual environment adoption Five areas of software virtualization How revenue shifts An overview of the operating environments market How will the virtual environment impact corporate IT infrastructure? Essential guidance

3 Defining the Virtual Environment Creates the appearance of single computing environment Functions are no longer tied to a single host or device Optimizes use of each host Virtual Processing Environment

4 Goal of the Virtual Environment Virtual Processing Environment Levels playing field making Linux more attractive Provide a computing service that: Is always available Appears to be infinitely flexible, scalable, and powerful Survives the loss of any component without the knowledge of the application user Uses the newest technology alongside older technology Inherently vendor-, operating system-, and architectureneutral

5 What Are the Market Drivers Leading to Virtual Environment Adoption? Organizations are seeking to lower overall costs of computing Organizations need agility and responsiveness from IT Resilience and disaster tolerance are becoming high priority Honoring the rule If it s not broken, don t fix it Linux offers leverage in several of these areas

6 The Real Costs of Ownership Cost of Ownership Factors Other Communications 3% 5% 5% 7% Linux can help here Software 8% 10% Client hardware 10% 12% Server hardware 12% 15% Source: IDC, 2002 CA, HP, IBM and others address this Administration, development, support 50% 70%

7 Five Virtualization Technologies

8 #1: Virtual Access Software Any access device, over any network media From any server operating environment No changes to existing application Application A Browser-based clients Internet Linux could be the platform Virtual Access Application B Application C

9 #2: Virtual Processing Software Parallel processing/grid computing Load balancing/qos/slm Data and application availability software Clustering software Browser-based clients Internet Linux could be the platform Virtual Processing Environment

10 #3: Virtual Processing Software Virtual Machine Software Browser-based clients Internet Linux could be the platform Multiple OE instances Virtual Processing Environment

11 #4: Virtual Application Environment Software Platform-neutral application development and deployment Application fail over and load balancing Browser-based clients Linux could be Internet the platform Virtual Processing Environment Database

12 #5: Fully Extended Virtual Environment Application decomposed Environment is never seen to either slow down or fail Highly scalable High performance Load-balanced Web servers Browser-based clients Internet Linux could be the platform Applications or application components Database Storage

13 Operating Environments

14 The Revenue Is Already Shifting Towards Virtualization Vendor Revenues ($ Billions) History Forecast Integration server Application server Web server Virtual user interface Clustering & availability Server OSs Source: IDC, 2003

15 COE New License Shipments Worldwide Paid Client Operating Environment Shipments, (000) 175, , , ,000 75,000 50,000 25,000 0 Linux owns a minute but growing share Linux (paid) Win XP Pro Win 2K Pro Win NT Wks Win XP Home Win Me Win 98 Win 95 Win 3.x/DOS Mac OS Other Client Source: IDC, 2003

16 SOE New License Shipments Worldwide Paid Server Operating Environment Shipments, (000) Linux owns a significant and growing share Linux (paid) Win Win 2K Server Win NT Server Unix (total) NetWare Mainframe (all) Other SOE Source: IDC, 2003

17 Operating Environments Market Worldwide C+S Operating Environments Revenue by Platform, ($M) 25,000 20,000 15,000 10,000 5,000 0 Linux revenues Win32&64 Linux/OOS Unix OS/400 Mainframe Embedded Other SU Other MU Source: IDC, 2003

18 Virtual Environment Software Opportunities Lower Hardware Costs VPS allows use of IA-based systems for large, complex jobs VM software or partitioning software to support consolidated computing Lower Software Costs Consider open source software VAS, VSS to access consolidated computing resources VAE to increase code reuse Lower Staff Costs Re-centralize computing to reduce ops, admin and other support costs Cluster management software to reduce admin costs Centralize storage using VSS to lower admin and backup costs while increasing flexibility and availability VM software to reduce costs due to incompatible software and software distribution costs VAE to lower development costs

19 How will VES impact corporate IT infrastructure? Established application systems will be wrapped to provide increased levels of virtualism New application systems will be built using distributed computing architectures Cost reduction efforts will lead to increasing use of virtual environment software/high volume hardware Management and security software will increasingly be seen as a necessity

20 Essential Guidance Software and System Suppliers Demonstrate real cost savings Support heterogeneous environments Create a truly competitive advantage Make integration of new technology easy Remember the if it s not broken, don t fix it rule! IT Organizations Move carefully Wrap current systems first Consolidate systems and resources Make new applications use some form of VES Standards!

21 Questions?

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