Cloud Computing & Sustainability. Virtualization, Cloud Computing & Green IT Summit. October 26, 2010

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1 Cloud Computing & Sustainability Doug Bourgeois, Vice President, Federal Chief Cloud Executive Virtualization, Cloud Computing & Green IT Summit Proprietary October 26, VMware Inc. All rights reserved

2 Agenda Industry IT Trends Sustainability & IT Journey to the Cloud Challenges 2

3 Make No Mistake 3

4 Strategic Technology Trends 4

5 Cloud is Gaining Acceptance 5

6 Trends: Virtualization and Resource Pooling Traditional Approach Virtual Infrastructure Exchange Operating System OS Virtualization File/Print Operating System OS Virtualization CPU Pool Virtual Infrastructure SAP ERP Operating System OS Virtualization Oracle CRM Operating System OS Virtualization Memory Pool Storage Pool Interconnect Pool 6

7 Trends: Virtualization and Resource Pooling Exchange Operating System SAP ERP Operating System File/Print Operating System Oracle CRM Operating System CPU Pool Memory Pool Storage Pool Interconnect Pool Virtual Infrastructure Increased asset utilization Automated, policy driven management Ease of maintenance Virtual defense in depth security 7

8 Trends: Cloud Computing INPUT projects the federal cloud computing market will likely grow from $420 million in 2010 to $1.5 billion by Web Cloud PC / Client-Server Mainframe Cloud Computing is transforming the delivery of IT services 8

9 Trends: Mobile Technology and User Expectations Immediate Affordable Pervasive Simple Personalized 9

10 Trends: A New Cloud Architectural Stack Emerges Multi-Device User Access New User Provisioning Layer Stitch all this together into a coherent, secure, compliant whole New Application Platform Applications Renters (SaaS) Platform Renters (PaaS) Infrastructure Renters (IaaS) Existing Datacenters Existing Apps Integrated Virtual Infrastructure 10

11 Sustainability and Green IT Sustainability is simply meeting the needs of today without compromising the ability of future generations to meet their needs. 23% Application Investment 5% Infrastructure Investment 30% Application Maintenance 42% Infrastructure Maintenance Where the IT Budget Goes Sustainability Quiz What percentage of server resources sit idle? By what percentage has data center power consumption grown? Power consumption is what percentage of data center costs? How many Federal data centers exist? % 100% 25% 11

12 Sustainability Desired Outcomes the goal of the Data Center Consolidation initiative is the development of a government-wide strategy and accompanying agency data center consolidation plans to optimize the number and cost of Federal data centers, reducing the associated energy costs and physical space allocations. Program Goals Reduce Environmental Impact Reduce Energy Costs Increase Efficiency Enhance Mission Agility 12

13 Cloud Use Case - Data Center Consolidation Strategies Efficiency Strategies Turn off infrequently utilized servers Virtualize then consolidate servers and platforms Move servers/storage to a few data centers Consolidate small centers into larger ones Migrate low risk workloads to standard cloud based services 13

14 Progress Has Been Slow Source: MeriTalk 2010 Federal Data Center Demolition Derby; June 22,

15 How to Increase Adoption? Energy Savings Performance Contracts ESPC Quick Facts More than 485 ESPC projects have been awarded by 19 Federal Agencies in 48 states. Approximately $2.7 billion has been invested with 22.7 trillion Btu reduction annually. Energy cost savings of $8.2 billion with net savings to the Federal government of $1.4 billion. 15

16 Sustainable Data Center Opportunity Green IT Strategies Require ESPC contracts Incentives for LEED certification Optimize climate control systems Utilize power engineering systems Eliminate batteries in backup systems Leverage virtualization and cloud computing 16

17 Cloud Use Cases Telework Knowledge Workers Task Workers Power Users Mobile Users Service Managers Avoid driving 134 billion miles 20% Remove 120 million tons of air pollutants Save $161.5 billion Library Administrators Infrastructure Administrators Software Developers Security & Architects 17

18 Cloud Use Case Homeland Security Mission Agility Cloud Mission Enablement 18

19 The Journey to Cloud Computing Partial Virtualization Infrastructure Virtualization Resiliency Pooling Utilization Internal Private Cloud Tiered vapps Standardize Virtualize Aggregate Automate Abstraction Service Levels Automated Services Self-service Simplicity Agility Manage Governance Capacity Chargeback Compliance Optimize Service Provider Clouds Dynamic Choice Mobility Interoperability 19

20 The Top Challenge is Culture is the issue! Source: MeriTalk 2010 Federal Data Center Demolition Derby; June 22,

21 Additional Challenges Along the Journey Strategy Not all clouds are created equal security, mobility and performance vary considerably Expertise Achieving benefits from the cloud requires an evolution of skills and expertise Change Management Cloud requires transformation of both architecture and organization Public Service Private Automation Cloud leverages automation from both automatic and scripted sources Management Integrating the management of multiple resource pools, environments, and clients within change processes Security and Control Maintaining security and compliance when users have access to the environment Standardization Software products and versions must be standardized, integrated and deployed on standard infrastructure blocks 21

22 Gartner: VMware is the Clear Market Leader VMware stands alone as a leader in this Magic Quadrant VMware is clearly ahead in : Understanding the market Product strategy Business model Technology innovation, Product capabilities Sales execution VMware Strengths : Far-reaching virtualization strategy enabling cloud computing, new application architectures and broader management Technology leadership and innovation High customer satisfaction Large installed base (especially Global 2000), and rapid growth of service providers planning to use VMware (vcloud) 22

23 Experience Matters 23

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