Accelerate server virtualization to lay the foundation for cloud

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1 IBM Global Technology Services Thought Leadership White Paper January 2012 Accelerate server virtualization to lay the foundation for cloud Analytics combine with standard, repeatable processes for quicker transformation and improved ROI

2 2 Accelerate server virtualization to lay the foundation for cloud Contents 2 Introduction 2 Virtualization as a first step on the path to cloud computing 6 Moving to cloud computing 7 Why IBM? Introduction In The Essential CIO: The 2011 IBM Global Chief Information Officer Study, 60 percent of the more than 3,000 CIOs interviewed said they want to implement cloud computing over the next five years as a way to grow their organizations, achieve competitive advantage and meet current IT challenges. 1 In preparation for the move to cloud, companies are initiating server consolidation and virtualization projects. To ease the server consolidation and virtualization process, IBM has developed services-based analytical tools that model workloads and outcomes to determine the best way to virtualize infrastructures. These tools can also help organizations justify the investment in consolidation and virtualization; and leverage standards and repeatable processes to accelerate virtualization. Many organizations will need this type of help. A recent IDC study found that more than 20 percent of the IT managers surveyed acknowledged lacking the in-house skills required to build a private cloud. IDC believes that External data center service providers can help IT with an objective viewpoint, advanced analytics (to see what the real issues are versus perceived issues), and years of experience in multiple, diverse data center environments. 2 This white paper will discuss the role that analytics and defined, repeatable processes can play in improving the virtualization and consolidation process. It will also list practical steps that organizations can take to virtualize their IT infrastructures even the complex workloads that many companies have avoided virtualizing and migrate to cloud computing. These steps employ advanced analytical and migration tools developed by IBM Research and deployed in client engagements worldwide. Virtualization as a first step on the path to cloud computing The benefits of cloud computing are many: it can help accommodate end user expectations for technology, overcome the problem of data center obsolescence and reduce IT costs overall. To lay a sound foundation for cloud computing, organizations must first consolidate and virtualize their server environments. IBM has found that the cost savings, efficiencies and business advantages gleaned from server optimization can benefit even those organizations not yet ready to consider cloud computing. In and of itself, server consolidation and virtualization can help organizations extend the lives of their existing data centers, increase IT capacity and cut operational expenses. Big data promises and challenges The world s data is increasing by 2.5 quintillion bytes daily, 80 percent of it unstructured. The information contained in Big Data has the potential to considerably enhance customer and partner relationships, but extracting meaning and true business insight from mountains of raw data is a difficult process especially when, as often occurs, data is stored in a series of disconnected silos. To accommodate Big Data and integrate it across infrastructures, organizations are continually growing their installed storage. Consolidation, virtualization, cloud computing and cloud archiving can help free organizations from the need to constantly increase their storage capacity.

3 IBM Global Technology Services 3 The question then arises: How do organizations virtualize, consolidate and optimize their IT resources? The process typically entails clearly defining server optimization and consolidation goals; creating a roadmap for reaching those goals; analyzing and rationalizing application portfolios; discovering and modeling workloads to identify which ones are appropriate for virtualization; determining the best ways to virtualize appropriate workloads; and building a business case to justify the investment. Implementing a virtualization plan consists of assessment, design, planning, piloting, testing and full-scale deployment of those workloads with migration of applications and data to new virtualized infrastructures. This is a complicated process. But from experience gleaned through thousands of client engagements, IBM now believes that most server optimization efforts can be broken down into three distinct steps: Modeling workloads in terms of their alignment with overall business goals can help IT professionals correctly size their virtualization projects and identify potential problems before they occur. The modeling effort begins with discovery of server inventory, configurations, applications, and utilization rates to determine which workloads are the best candidates for consolidation and virtualization. IBM Fit for Virtualization analytics examine characteristics of each workload to identify good candidates for virtualization. These analytics sort workloads into six categories (see Figure 1) based on virtualization complexity. Included in each category is a set of IBM-defined prescriptive actions required to move applications to the virtualized environment. Workload characteristics Discover and model workloads and outcomes to determine the best way to virtualize the infrastructure Justify the investment and validate ROI Leverage standards and repeatable processes to define the optimization process, its methods and goals 1 2 Standalone characteristics Potential for migration of machines via bulk-move capability Basic workloads Potential for bulk-move capability Complexity increases if multiple applications are comingled across server ecosystems Discover and model workloads and outcomes In order to achieve full server consolidation and optimization including virtualization of the most challenging workloads it is critical to understand the current server environment: hardware, software, utilization, dependencies, configuration requirements and business constraints. Only after achieving a thorough understanding of the existing server environment can organizations develop a truly effective strategy for consolidation and optimization. IBM has developed services-based analytical tools including Fit for Virtualization analytics and Fit for Purpose analytics to help in this work Complex workloads Due to size, security and risk Managing connections to upstream and downstream applications is a must Middleware remediation and upgrade Multiple applications and servers comprise the workload and all must move together to reduce test requirements; lack of adherence to standards and versions elongates migration Application remediation and upgrade Requires application upgrade, with dependence on independent software vendor s investment in code running on that platform enterprise; resource planning applications typically require upgrades and vendor mandated tools and migration methodology Operating system remediation and upgrade Often requires remediation to resolve operating system-specific calls Third-party product usage and availability on target operating system requires operating system upgrade Figure 1: Fit for Virtualization analytics profile workloads into six scenarios.

4 4 Accelerate server virtualization to lay the foundation for cloud Typically, organizations find it fairly easy to virtualize 20 or 30 percent of their environments the easiest applications and workloads. However, that leaves up to 80 percent of the server environment running in its traditional physical state. The most significant opportunity for improved ROI lies in virtualizing those more complex workloads that require the most work to migrate and that may need remediation and upgrades to operate properly in a virtualized environment. (Virtualization of these complex applications is also necessary to lay the groundwork for cloud computing.) Workload attributes Fit-for-purpose analytics Workload placement IBM AIX on power VMware Windows on X86 Windows on X86 ISV Support Performance Scalability SW licenses It is a challenging process, but by deploying Fit for Virtualization analytics and virtualization methodologies, IBM has been able to help clients reduce transformation time and cost by 30 to 50 percent or more, with a 6 to18 month return on investment. In addition and just as important virtualizing these complex workloads has helped optimize server efficiency and resiliency, better aligning the server environment with organizational needs and strategies. A second analytical tool, called Fit for Purpose, has been designed to identify the best-fit platform for each workload. Fit for Purpose analytics assess business requirements against more than 30 workload attributes, then recommend the best platform for each. (See Figure 2.) This process helps organizations build an effective server strategy and placement plan. Often, server consolidation and virtualization activities are taking place within an existing data center. However, the intelligent use of analytics can also help when server optimization, consolidation and virtualization are taking place as part of a data center relocation project. Server, application and dependency maps, such as those developed by IBM, use analytics to help identify all assets that need to be moved. Information gleaned from these maps aids in moving dependent applications together; in bringing them online together; and in migrating data online nearly instantaneously to meet application availability requirements. All of this helps mitigate risk in the inherently risky data center relocation process. Energy consumption Overall score Five - year TCO US $13M US $31M US $38M Five - year savings US $25M US $7 US $0 Recommend Invest Divest Divest Figure 2: This is an example of workload placement recommendations using Fit for Purpose analytics. (ISV=Independent Software Vendor.) Individual client results will vary. Optimization reduces server count by 90 percent A large enterprise client worked with IBM to simplify its server environment, which initially consisted of thousands of servers and more than a dozen platforms. The client hoped to achieve a more standardized, flexible and cost-effective server environment. Using the analytics of IBM Server Virtualization Services, IBM analyzed the client s environment, assessing its business requirements against more than 30 workload characteristics. IBM assigned a placement score to each workload, then recommended strategic actions, including divestitures. As a result, the client was able to have plans to reduce its server count by 90 percent, the number of platforms in use by 60 percent and operational costs by 45 percent.

5 IBM Global Technology Services 5 Justify the investment Building a business case that quantifies expenditures and validates return on investment is critical for justifying funding and getting the corporate buy-in needed to initiate server consolidation and virtualization projects. There are many ways to build this case. As seen in the sample analysis depicted in Figure 3, financial analysis tools developed by IBM can provide companies with a reliable expectation of concrete returns from their transformation initiatives. expenditures and returns are provided. The business case is continually refined throughout the consolidation and optimization process to provide the most up-to-date metrics possible. Leverage standards and repeatable processes In IBM s experience, too many organizations fail to clearly define their processes, methods and goals for server consolidation and optimization. The importance of this process cannot be overstated if these initiatives are to prove successful on their own and lay a sound groundwork for an eventual move to cloud computing. Physical numbers of servers Cumulative operating cost (USD) Current 800 Proposed Change % System management $19,546,800 $11,282,551-42% Hardware maintenance $9,175,169 $4,962,655-46% Facility $4,400,000 $1,900,000-57% Power & Cooling $4,185,643 $2,071,893-51% Total operating costs $37,307,612 $20,207,099-46% One time cost (USD) Cost (US M$) Cumulative cost savings over 5 years As discussed earlier, IBM Fit for Virtualization analytics profile workloads into six categories. For each category, IBM has a defined, prescriptive methodology for virtualization. These methodologies deploy repeatable processes and automation tools developed by IBM Research to aid in virtualization. Hardware purchase/ $0 $605,448 upgrade Transformation $0 $504,010 Total one time costs $1,109,458 One time cost + 5 Year cumulative costs (USD) $37,307,612 $21,326,557-43% Five-year savings (USD) Payback period $5,981,055 5 months One time cost These tools provide organizations with the information needed to assist in decision making. For example, these tools can be used to model multiple investment scenarios to find the best approach for the client s specific financial, business and technical requirements. Five-year projections of capital and operational Facility System management Power and cooling Hardware maintenance Figure 3: IBM Anchor financial analysis tools model investment scenarios to find the optimum server consolidation and virtualization approach to meet the client s financial, business and technical requirements. Simplifying for savings When a large client wanted to simplify its complex, heterogeneous server environment, IBM was able to help. IBM modeled the client s server utilization, using best-of-breed tools and analytics to identify application dependencies, develop a detailed workload placement plan and model projected infrastructure demands. Additional analytics helped IBM model business, utilization and technical constraints. Information gleaned from this modeling effort was then loaded into IBM s Anchor financial analysis tool to chart total cost of ownership and return on investment. The Anchor analysis helped build the business case needed to justify the investment in server consolidation and optimization. Following IBM s suggestions, the client was able to improve server utilization rates and reduce server count by 80 percent.

6 6 Accelerate server virtualization to lay the foundation for cloud The first optimization process, the IBM Virtualization Fast Path, can help organizations virtualize many standalone workloads quickly, in bulk, using rapid migration methodologies. This option is most suitable for organizations needing a quick and cost-effective way to tackle standalone workloads. It entails harvesting and analyzing information from the organization s current environment; performing a Fit for Virtualization analysis; scoping the cost of each element deemed fit for virtualization; determining which workloads will, when virtualized, deliver the highest ROI; and executing a physical-to-virtual transformation for the technologies best suited to it. The second IBM optimization process, developed for more complex workloads, relies heavily on virtualization to effect a deeper transformation of server environments. This option is tailored to organizations that view server consolidation and optimization as an initial step on the road toward cloud computing. Taking advantage of this option, project leads first work with IBM to frame a virtualized solution for their server environments discovering, modeling and assessing technologies to meet IT requirements, budgets and business goals. IBM teams collaborate with the organization s IT division to discover and segment hardware, software and workloads; define IT and business requirements; model and analyze infrastructure demand scenarios; and create a business case to justify investment through comparisons of projected total cost of ownership and return on investment. As part of this optimization process, a flexible, virtualized infrastructure is designed to meet current needs and projected future needs. IBM defines a new architecture; deploys a standards-based design methodology to develop and document a detailed server design; and develops plans for server construction and wave migration to meet organizational requirements and minimize disruptions. Finally, a virtualization solution is implemented. Specialized teams will pilot, test and deploy the virtualized server infrastructure and then migrate applications and data in accordance with the client s application availability requirements. Moving to cloud computing IBM believes that cloud technologies can enable technological advances that will help businesses better compete in a constantly evolving global marketplace. Thus far in this paper, we ve discussed server consolidation and virtualization. These are the first steps to cloud computing. Next, we will examine the cloud migration process itself. By classifying and understanding how specific workload complexity impacts migration, and by using a consistent factorybased approach (one with defined processes and automation), organizations can drive a more efficient migration to private, public and hybrid clouds. To help clients achieve maximum value from their cloud strategies, IBM offers a four-step approach. (See Figure 4.) This approach is built on IBM technologies that automate the transition to cloud computing. Client s environment Step 1: Inventory verification Wave strategy Determine workload by migration complexity Step 2: Transformation planning Rapid migration Re-platform Reinstallation Step 3: Transformation design TCO + analysis Analytics + tools + innovation Step 4: Implementation/ test Factory lines (repeatable model) Figure 4: IBM offers a four-step approach for migrating to a cloud environment. Private Cloud Client data center IBM data center IBM SmartCloud The approach begins with verification and analysis of the client s application portfolio to determine the most effective and expedient waves of transformation. In the second step, a high-level plan is developed to determine migration strategy, migration methods, target requirements and migration approach. Different migration methods are used depending on the degree and complexity of the workloads to be moved to the cloud.

7 IBM Global Technology Services 7 (Opportunities for migration are identified before the completion of detailed wave consolidation plans and schedules, and Fit for Virtualization analytics and other unique IBM tools are used throughout the process.) Rapid migration is used for the easiest workloads. It migrates operating systems, middleware, codes, applications and data to the cloud environment as a group, allowing for small adjustments as needed. Re-platform is used for workloads of midlevel migration complexity. It migrates port applications from the source operating system to supported operating systems in the cloud environment. This usually requires higher-level code adjustment (for example, UNIX to Linux). Workloads of the highest complexity are reinstalled. IBM conducts major version upgrades for operating systems (for example, Windows 2000 to Windows 2008) while migrating for compliance with the cloud environment. When practical, migration services for cloud drives the implementation of each wave as early as possible, and in tandem with other waves, in order to maximize the delivery schedule and benefits. Server consolidation and optimization: IBM s own story At IBM s strategic outsourcing data center in Lexington, Kentucky, IBM hosts the operations of 20 clients. Examining the server environment at this data center, IBM found that 60 percent of the 1,500 UNIX servers installed were running at 5 percent utilization or less leaving IBM with 20 times more servers than needed and the expense of operating them all. IBM implemented a virtualization program to rectify the situation and lower operational costs. Through this initiative, IBM was able to virtualize 70 percent of the workloads at this data center, increasing server utilization rates to 30 to 50 percent of capacity. IBM then conducted an energyefficiency assessment to optimize the cooling environment and reduce overall energy consumption driving energy consumption down an additional 10 percent. As a result of this initiative, IBM was able to defer US$50 million in capital costs. In the third step, IBM designs and constructs the transformation to a cloud environment. IBM provisions a target test environment and then standardizes, virtualizes and modernizes workloads using analytics, tools and automation. In the fourth and final step, IBM finalizes cloud migration with remediation and testing, migrating workloads to cloud images. Why IBM? Virtualization and cloud computing can be complicated processes. Many organizations realize that to make virtualization and cloud on-boarding as efficient as possible, they need to work with an outside technology partner. IBM offers the advanced analytical tools, deep experience and skills necessary to help organizations achieve the most effective and efficient server virtualization possible, while concurrently laying the foundation for cloud on-boarding. IBM leverages patented analytics to more quickly and easily virtualize even the most complex workloads helping clients achieve up to 70 percent virtualization while obtaining ROI in 6 to 18 months. For those clients wishing to move to a cloud environment, we deploy a unique cloud adoption framework and patented workload analysis tool to examine existing environments and determine the right virtualization and cloud computing model to meet the client s specific business needs. These capabilities allow us to combine virtualization, standardization and cloud migration into one event for those workloads that are cloud candidates. In addition, IBM can provide the right hardware and software to help clients fully leverage cloud computing whether the organization needs to migrate to an existing infrastructure or first build an infrastructure and then migrate. Our deep expertise also brings value to our clients. The experience of the IBM virtualization and cloud-computing team helps reduce the system risk involved in the cloud-migration process.

8 Finally, virtualization and cloud computing can help the client organization lay the foundation for the development of a smarter data center. As envisioned by IBM, a smarter data center is one in which analytics are deployed to extend the life of existing infrastructure assets, doubling IT capacity and cutting operational expenses in half. These data centers are rationalized to improve operational efficiencies, reducing server count by 60 to 80 percent. They are flexible enough to quickly respond to change. Their integrated management will help free critical resources for transformational projects. Just as virtualization is a step on the path to cloud computing, cloud computing is a step on the path to a smarter data center. Working with IBM, clients achieve the advantage of a standardized, flexible, scalable and repeatable approach to virtualization and cloud migration. This approach can help IT managers and CIOs design, develop and implement an optimized server environment while reducing IT costs, improving server and storage utilization rates and achieving significant return on investment while preparing for the type of smarter data center that will meet many of the challenges facing IT today. For more information To learn more about how IBM can help your organization consolidate and optimize its servers, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/services/server-optimization For IBM insights and perspectives on the issues that matter most to IT managers and chief information officers, visit: ibm.com/c-suite Additionally, IBM Global Financing can help you acquire the IT solutions that your business needs in the most cost-effective and strategic way possible. We ll partner with credit-qualified clients to customize an IT financing solution to suit your business goals, enable effective cash management, and improve your total cost of ownership. IBM Global Financing is your smartest choice to fund critical IT investments and propel your business forward. For more information, visit: ibm.com/financing Copyright IBM Corporation 2012 IBM Corporation New Orchard Road Armonk, NY Produced in the United States of America January 2012 IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/legal/copytrade.shtml UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. Other company, product or service names may be trademarks or service marks of others. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. 1 The Essential CIO: Insights from the Global Chief Information Officer Study, IBM Global Business Services, May IDC White Paper, sponsored by IBM, The Value of Smarter Datacenter Services, doc #228261, May Please Recycle SSW03008-USEN-00

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