The Total Cost of Ownership of Secure and Scalable Networking Infrastructures for the Enterprise
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1 WHITE PAPER The Total Cost of Ownership of Secure and Scalable Networking Infrastructures for the Enterprise Quantifying the Value of Brocade Virtual Networking Solutions with Brocade vrouter and vadc Software-based networking solutions can significantly reduce capital and operational spend necessary to architect next-generation IP networks. The examples in this white paper compare the overall cost benefits associated with Brocade software networking solutions versus traditional hardware-centric solutions.
2 Table of Contents Introduction... 3 Quantifying Cost Reduction and TCO... 3 Networking Software Can Reduce Capital Costs... 4 Networking Software Can Reduce Operational Costs... 4 Provisioning...4 Ongoing Management...5 Resource and Talent Management...5 Deployment Scenarios: A Deeper Dive into the Numbers... 5 Scenario 1a (vrouter Secure Scenario): Per-Server Data Center Deployment... 6 Scenario 1b (vadc L4-7 Scenario): Per-Server Data Center Deployment... 8 Scenario 2a (vrouter): Per-Rack Size Data Center Deployment...10 Scenario 2b (vadc): Per-Rack Size Data Center Deployment...12 Overall TCO Benefits of Virtual Router and Virtual ADC Deployments...14 About Brocade
3 Introduction Two enabling technologies of the new IP Software Defined Networking (SDN) and Network Functions Virtualization (NFV) are changing how enterprises view their networks. SDN enables enterprises to adapt to changing data conditions by introducing increased flexibility and architectural dynamism. In fact, the benefits of SDN are so significant, IDC estimates that the market will grow to more than $8 billion by At the same time, NFV is being adopted by service providers, enabling benefits for enterprises as well. Not only does NFV make applications and associated policies more portable, it can create capital expense benefits as well as impacting scale and pricing. SDN and NFV create the need for a change in strategic and architectural approach as enterprises move to the cloud and virtualized solutions. While SDN and NFV promise significant benefits to enterprises, they also require a rethinking of network architecture and, as a result, a new approach to the economics of networks and network infrastructure. To meet the demands of new cloud services, enterprises must analyze how they can reduce the underlying cost structures of SDN and NFV. This requires a reevaluation of the true cost of proprietary networking solutions, as the ongoing capital and operational expenses associated with deploying proprietary solutions become truly cost-prohibitive when supporting the growing demands of virtualized services. The allure and promise of increased automation, greater flexibility, and programmability, in addition to a modular and open approach, bring with it the potential to achieve a real bottom line impact: cost reduction. Quantifying Cost Reduction and TCO While it is widely accepted that software networking solutions can help free up capital, quantifying how the reduction in hardware impacts the bottom line has been a challenge. This paper accompanies the Brocade Vyatta vrouter and vadc Total Cost of Ownership (TCO) Calculator, a tool that explores the impact of underlying infrastructure decisions on the TCO of the network. It is important to note that the TCO examples provided in the calculator focus on data center virtualization. The tool does not cover all of the variables associated with NFV as defined by ETSI. The following sections lay out the capital and operational efficiencies associated with deploying the Brocade Vyatta vrouter and virtual Application Delivery Controller (vadc) solutions within different scenarios. Specifically, the paper includes comparisons between physical appliance and virtual appliance deployments utilizing a fixed design, or what is called a POD within this paper. A single POD contains 1,000 virtual machines and 20 physical servers deployed across four standard racks within a data center. The tool allows for a scaling up of the design by incrementing the overall number of PODs, which can define a varied density of data center deployments. The output of the tool is a summation of the TCO benefits that the software products from Brocade can deliver to enterprises. The tool is best for enterprises who are looking to cost-effectively add services to meet needs today and tomorrow, while also adopting a more virtualized network strategy. 3
4 Networking Software Can Reduce Capital Costs One of the most obvious benefits of using virtual routing or virtual ADC solutions, as opposed to proprietary hardware-based products, is the reduction in capital outlay required to purchase those purpose-built appliances. Delivering network services via software, on industry-standard servers, can dramatically reduce the upfront investment providers must make to scale their network services to support the ever-increasing demands on their infrastructure. For starters, a typical secure firewall solution for a data center from any of the legacy vendors costs upwards of $9,500 for 1 gigabit per second (Gbps) of capacity. A typical load balancing solution for 1 Gbps of capacity costs upwards of $18,000, while an off-the-shelf server used to support a number of virtual routing instances costs around $2,000. In addition to the hardware itself, providers also need to consider the additional acquisition costs associated with proprietary appliances, including: Software licenses: Required for unlocking features and functionality within the system, such as the number of rules, tunnels, and so on that providers need to use. Annual maintenance: Needed to support the solution over its lifecycle; typically 20 percent of the cost of the hardware. Onsite spares: Used as backup to ensure ongoing availability; typically 1 to 3 percent of the overall purchase volume of the provider. In comparison, virtual routers and virtual ADCs are offered with a multitude of procurement methods: from all-inclusive packaging with annual subscriptions, to payper-use consumption utility -based programs, as well as perpetual-based licensing. The flexibility of software enables a method of network provisioning that is risk-free and moves away from the wasteful overprovisioning common within network deployments. Brocade offers a base usage level, with the ability to license burst capabilities to ensure that quick changes in demands can be easily and cost-effectively supported by the network. As a result, enterprises can align networking spend with revenue streams. Networking Software Can Reduce Operational Costs Beyond the differences in acquisition costs, a number of operational efficiencies make virtual solutions significantly more cost-effective for providers. Provisioning Each hardware appliance takes time and resources to physically install. The installation includes someone being physically present to rack and cable the device to ensure that it is connected appropriately. Then that device needs to be configured, which may require software upgrades if the operating system on the physical device is out of date. These costs are repeated for each and every device that comprises the network. In comparison, delivering services via software can reduce deployment time by up to 80 percent. Brocade virtual network services solutions require only a software load, which can be done from anywhere, with new instances capable of being spun up within minutes. 4
5 Ongoing Management The centralized management associated with many traditional networking devices can be very complex, with many administrators preferring to use the CLI on the boxes to ensure that everything is correct. As a result, when a hardware solution needs to be upgraded, it may require actually touching the device to make the change. In addition, moving resources to maximize utilization or accommodate shifts in demand and business requirements also requires moving those devices. Software solutions, however, can be spun up or down and moved around very easily. Brocade virtual routers are always up to date. Configurations can be highly templated, enabling changes to be pushed out in seconds. Optionally, providers can integrate virtualized network functions into existing orchestration and automation systems to further streamline ongoing management. Resource and Talent Management Talent is one of the most precious resources within any organization. The time spent deploying, managing, and maintaining solutions, or training staff how to best use and leverage complex feature sets, is time that enterprises could spend on revenuegenerating activities. Brocade Vyatta vrouters and vadcs enable faster deployment and orchestration of network services to free up staff resources for other initiatives. Deployment Scenarios: A Deeper Dive into the Numbers Looking more specifically at how the underlying infrastructure can impact the capital and operational expenses of an enterprise deployment, it is helpful to examine the differences between physical and virtual appliances. This section addresses a few different deployment scenarios that look at per physical server and per-rack deployment designs for a POD, based on the capacity demands of the environment. The first task is to define the functionality that is delivered by these solutions. Whether a solution is called a secure router, secure service gateway, network security platform, virtual application delivery controller, or virtual load balancer, providers expect the solution to deliver these features: Network Connectivity: The ability to support a robust routing engine, Network Address Translation (NAT), a variety of Network Interface Cards (NICs), IPv6 functionality, and other network services to meet the varied demands of the environment. Firewall Protection: The ability to enforce access policies and inspect traffic to identify and prevent attacks targeting critical data and resources. Virtual Private Networking (VPN): The ability to provide access to remote users via Secure Socket Layer (SSL) connections or establish secure site-to-site VPN tunnels, with standards-based Internet Protocol security (IPsec), to keep communications private. Traffic Management: The ability to provide a wide variety of Quality of Service (QoS) queuing mechanisms for both inbound and outbound traffic, to ensure that businesscritical applications and services perform optimally. 5
6 Load Balancing: The ability to efficiently load balance traffic among a pool of applications or servers to scale out an application infrastructure. SSL-Offload: The ability to offload the Central Processing Unit (CPU)-intensive operation of encrypt/decrypt functions of an application server for secure connectivity, freeing up CPU cycles to focus on a higher volume of Connections Per Second (CPS) and Transactions Per Second (TPS). Application Security: The ability for web-based application firewalls, Distributed Denial of Service (DDoS) and SYN protection, and Transaction Rate Limiting to protect critical application assets from external and internal network attacks and threats. Enterprises need this general functionality throughout their environment to protect the thousands even tens of thousands of hosts in data centers. Of course, this functionality can be delivered via proprietary hardware appliances or virtual solutions. The focus of the scenario examples in this white paper compare the costs of deploying a physical appliance to the costs of a Brocade Vyatta virtual network solution, focusing on perserver and per-rack deployment scenarios. Scenario 1a (vrouter Secure Scenario): Per-Server Data Center Deployment In a per-server data center deployment, the assumption is that the enterprise is choosing between the following two options: 1. A High Availability (HA) pair of secure 1-Gbps appliances protects 1,000 virtual hosts on 20 physical compute nodes, for an average capital cost of $95,000 per device, with an annual software license fee of $1,000 each (based on fees associated with the number of rules, tunnels, and so on required in this deployment) and an annual maintenance contract of $2,200 each (20 percent of hardware/software license). Each HA pair is installed and associated to a physical server, which in this context can be viewed as a unique application, business unit, or department. Per-Physical Server Host Physical Deployment 4 Racks, 5 Servers Per Rack Plus 10 Physical s in Each Rack Figure 1: Scenario 1a: Per-physical server host physical appliance deployment. 6
7 2. Brocade Vyatta vrouters with 1 Gbps throughput capacity protect 1,000 virtual hosts on 20 physical compute nodes installed in four different racks with a fixed, allinclusive subscription that includes all licensing, support, training certifications, and so on. The assumption is that the enterprise deploys a vrouter in each physical server host and purchases a one-year subscription for each vrouter. Note that enterprises can choose to purchase and renew the vrouter subscription on an annual basis, if they prefer. Per-Physical Server Host Virtual Deployment 4 Racks, 5 Servers Per Rack Plus 10 Virtual s in Each Physical Server Figure 2: Scenario 1a: Per-physical server host virtual deployment. Given that access to the hosts is business-critical, it is important to have an HA deployment. In hardware, this means deploying two devices, with one as primary and the other as backup, ready to take over if there is a disruption or failure. In software, the system redundancy is built into the configuration of the software, so it is not necessary to deploy additional instances to protect the same hosts. However, for the purposes of aligning a more similar, apple-to-apples deployment, the tool and this white paper assumes that HA is leveraged for the vrouter, making the comparison a true one-toone replacement. Table 1: Scenario 1a: Comparison of Administrative Costs Brocade Vyatta vrouter # of Hardware s 40 # of vrouters 40 Cost of Hardware $9,500/ea Cost of Hardware N/A* Software License $1,000/ea Subscription $ [$499 per vcpu (2 vcpu for 1 Gbps)]: 1 year Annual Maintenance $2,100/ea Annual Maintenance Included 1-Year Cost $504,000 1-Year Cost $127,106 5-Year Cost $840,000 5-Year Cost $155,848 *Most vrouters are loaded onto existing servers; however, if needed, assume an average cost of $8,000 per server. 7
8 There are a variety of administrative costs associated with deploying, configuring, upgrading, and maintaining the secure network infrastructure, which need to be factored into the TCO of the solutions. Table 2: Scenario 1a: Additional Administrative Costs Installation (Per /Instance).5 hours/ea.1 hours/ea Software Upgrades.5 hours/ea 0 hours Configuring 1st /Instance 2 hours 1 hours Configuring 2nd 1 hours.08 hours Adds/Changes/Updates* 10 hours/ea.8 hours/ea First Year 119 hours 30.8 hours 5 Years 598 hours 154 hours Total 5-Year Cost** $37,375 $9,625 * Assuming 10 changes, updates, and so on are made for each appliance/instance each year Brocade Vyatta vrouter ** Assuming the administrative costs for each hour spent working on the deployment is $63/hour (based on a fully loaded salary of $120,000/year) Scenario 1b (vadc L4-7 Scenario): Per-Server Data Center Deployment In a per-server data center deployment, the assumption is that the enterprise is choosing between the following two options: 1. A High Availability (HA) pair of L4-L7 1-Gbps appliances manages traffic on 1,000 virtual hosts on 20 physical compute nodes, for an average capital cost of $18,000 per device. There is also an annual software license fee of $12,000 each (based on fees associated with typical enterprise licensing required in this deployment) and an annual maintenance contract of $6,000 each (20 percent of hardware/software license). Each HA pair is installed and associated to a physical server, which can be viewed in this context as a unique application, business unit, or department. Per-Physical Server Host Physical Deployment 4 Racks, 5 Servers Per Rack Plus 10 Physical s in Each Rack Figure 3: Scenario 1b: Per-physical server host physical appliance deployment. 8
9 2. Brocade Vyatta vadcs with a 1-Gbps throughput capacity license manages traffic on 1,000 virtual hosts on 20 physical compute nodes installed in four different racks. This includes a perpetual license and the associated support costs (18 percent annual maintenance fee). The assumption is that the enterprise deploys a vadc in each physical server host and purchases a perpetual license for each. Note that enterprises can choose to purchase subscriptions on an annual basis, if they prefer. Per-Physical Server Host Virtual Deployment 4 Racks, 5 Servers Per Rack Plus 10 Virtual s in Each Physical Server Figure 4: Scenario 1b: Per-physical server host virtual deployment. Given that access to the hosts is business-critical, it is important to have an HA deployment. In hardware, this means deploying two devices, with one as primary and the other as backup, ready to take over if there is a disruption or failure. In software, the system redundancy is built into the configuration of the software, so it is not necessary to deploy additional instances to protect the same hosts. However, for the purposes of aligning a more similar, apple-to-apples deployment, the tool and this white paper assumes that HA is leveraged for the vadc, making the comparison a true one-to-one replacement. Table 3: Scenario 1b: Comparison of Administrative Costs # of Hardware s Brocade Vyatta vadc 40 # of vadcs 40 Cost of Hardware $18,000/ea Cost of Hardware N/A* Software License $12,000/ea Perpetual License $9,000/ea Annual Maintenance $6,000/ea Annual Maintenance $1,620/ea 1-Year Cost $1,440,000 1-Year Cost $504,800 5-Year Cost $2,400,000 5-Year Cost $764,000 *Most vadcs are loaded onto existing servers; however, if needed, assume an average cost of $8,000 per server. There are a variety of administrative costs associated with deploying, configuring, upgrading, and maintaining the secure network infrastructure, which need to be factored into the TCO of the solutions. 9
10 Table 4: Scenario 1b: Additional Administrative Costs Installation (Per /Instance).5 hours/ea.1 hours/ea Software Upgrades.5 hours/ea 0 hours Configuring 1st /Instance 2 hours 1 hours Configuring 2nd 1 hours.08 hours Adds/Changes/Updates* 10 hours/ea.8 hours/ea First Year 119 hours 30.8 hours 5 Years 598 hours 154 hours Total 5-Year Cost** $37,375 $9,625 Brocade Vyatta vadc *Assuming 10 changes, updates, and so on are made for each appliance/instance each year **Assuming the administrative costs for each hour spent working on the deployment is $63/hour (based on a fully loaded salary of $120,000/year) Scenario 2a (vrouter): Per-Rack Size Data Center Deployment In a large data center deployment, the benefits of software solutions are even greater as enterprises take advantage of economies of scale. For this analysis, we assume the enterprise is choosing between the following two options: 1. A High Availability (HA) pair of secure appliances protects a single POD of 1,000 compute nodes on 20 physical compute nodes across 4 standard racks, for an average capital cost of $25,000 per device and an annual software license fee of $1,000 (based on fees associated with the number of rules, tunnels, etc. required in this deployment). There is also an annual maintenance contract of $5,200 each (20 percent of hardware/software license). This scenario assumes an HA pair of secure physical appliance will be deployed per physical rack. Per-Rack Physical Deployment 4 Racks, 5 Servers Per Rack Plus 2 Physical s in Each Rack Figure 5: Scenario 2a: Per-rack physical appliance deployment. 10
11 2. Brocade Vyatta vrouters protects 1,000 nodes, spread across 20 physical servers on four racks, with a fixed, all-inclusive subscription that includes all licensing, support, training certifications, etc. We assume that the enterprise will deploy a pair of vrouters per rack and purchase the one-year subscription for each. Note, enterprises can choose to purchase and renew the vrouter subscription on an annual basis if they prefer. Per-Rack Virtual Deployment 4 Racks, 5 Servers Per Rack Plus 2 Virtual s Per Rack Figure 6: Scenario 2a: Per-rack virtual deployment. Table 5: Scenario 2a: Comparison of Administrative Costs Brocade Vyatta vrouter # of Hardware s 8 # of vrouters 8 Cost of Hardware $25,000/ea Cost of Hardware N/A* Software License $1,000/ea Subscription $1, [($499 per vcpu (3 vcpu for 10 Gbps)]: 1 year Annual Maintenance $5,200/ea Annual Maintenance Included 1-Year Cost $504,000 1-Year Cost $38,132 5-Year Cost $416,000 5-Year Cost $46,754 *Most vrouters are loaded onto existing servers; however, if needed, assume an average cost of $8,000 per server. Table 6: Scenario 2a: Additional Administrative Costs Brocade Vyatta vrouter Installation (per appliance/instance).5 hours/ea.1 hours/ea Software Upgrades.5 hours/ea 0 hours Configuring first appliance/instance 2 hours 1 hours Configuring 2nd appliance 1 hours.01 hours* Adds/Changes/Updates** 10 hours/ea.1 hours/ea First Year 63 hours 11 hours 5 Years 314 hours 51 hours Total 5-Year Cost*** $19,625 $3,238 *Assuming the administrative costs for each hour spent working on the deployment is $63/hour (based on a fully loaded salary of $120,000/year) ** Assuming 10 changes, updates, and so on are made for each appliance/instance each year ***Assuming economies of scale, so the time required to deploy and manage new routers decreases as the quantity increases 11
12 Scenario 2b (vadc): Per-Rack Size Data Center Deployment In a large data center deployment, the benefits of software solutions are even greater as providers take advantage of economies of scale. For this analysis, the assumption is that the enterprise is choosing between the following two options: 1. A High Availability (HA) pair of ADC appliances manages traffic on a single POD of 1,000 compute nodes on 20 physical compute nodes across four standard racks, for an average capital cost of $55,000 per device and an annual software license fee of $20,000 (based on fees associated with enterprise licensing required in this deployment). There is also an annual maintenance contract of $15,000 each (20 percent of hardware/software license). This scenario assumes that an HA pair of ADC physical appliances are deployed per physical rack. Per-Rack Physical Deployment 4 Racks, 5 Servers Per Rack Plus 2 Physical s in Each Rack Figure 7: Scenario 2b: Per-rack physical appliance deployment. 2. Brocade Vyatta vadc manages traffic on 1,000 nodes, spread across 20 physical servers on four racks, with a perpetual license and associated support costs (18 percent annual maintenance fee). The assumption is that the enterprise deploys a pair of vadcs per rack and purchases the perpetual license for each. Note that enterprises can choose to purchase the vadc subscription on an annual basis, if they prefer. Per-Rack Virtual Deployment 4 Racks, 5 Servers Per Rack Plus 2 Virtual s Per Rack Figure 8: Scenario 2b: Per-rack virtual deployment. 12
13 Table 7: Scenario 2b: Comparison of Administrative Costs Brocade Vyatta vadc # of Hardware s 8 # of vadcs 8 Cost of Hardware $25,000/ea Cost of Hardware N/A* Software License $1,000/ea Perpetual License $18,000 /ea Annual Maintenance $5,200/ea Annual Maintenance $3,240 1-Year Cost $504,000 1-Year Cost $201,920 5-Year Cost $764,000 5-Year Cost $305,600 *Most vrouters are loaded onto existing servers; however, if needed, assume an average cost of $8000/per server. Table 8: Scenario 2b: Additional Administrative Costs Installation (Per /Instance).5 hours/ea.1 hours/ea Software Upgrades.5 hours/ea 0 hours Configuring 1st /Instance 2 hours 1 hours Configuring 2nd 1 hours.01 hours* Adds/Changes/Updates** 10 hours/ea.1 hour/ea First Year 63 hours 11 hours 5 Years 314 hours 51 hours Total 5-Year Cost*** $19,625 $3,238 Brocade Vyatta vadc *Assuming the administrative costs for each hour spent working on the deployment is $63/hour (based on a fully loaded salary of $120,000 a year) ** Assuming 10 changes, updates, and so on are made for each appliance/instance each year ***Assuming economies of scale, so the time required to deploy and manage new vadcs goes down as the quantity increases 13
14 Overall TCO Benefits of Virtual Router and Virtual ADC Deployments Software networking solutions can significantly reduce the TCO of an enterprise s infrastructure, freeing up capital and reducing the equipment and operational expenses required to build agile networking underpinnings. The overall capital and operational cost benefits associated with deploying a hardware solution compared to Brocade Vyatta virtual networking services solutions are significant: Table 9: Per-Server and Per-Rack Deployment TCO over Five Years: vrouter Comparison Per-Server Deployment TCO over Five Years: vrouter Comparison Hardware Brocade Vyatta vrouter Brocade Advantage CapEx Costs $840,000 $155,848 81% CapEx Savings OpEx Costs $37,375 $9,625 74% OpEx Savings Total Aggregate Costs $877,495 $165,504 81% Total Cost Savings Per-Rack Deployment TCO over Five Years: vrouter Comparison Hardware Brocade Vyatta vrouter Brocade Advantage CapEx Costs $416,000 $46,754 89% CapEx Savings OpEx Costs $6,615 $ % OpEx Savings Total Aggregate Costs $435,688 $50,002 89% Total Cost Savings Table 10: Per-Server and Per-Rack Deployment TCO over Five Years: vadc Comparison Per-Server Deployment TCO over Five Years: vadc Comparison Hardware Brocade Vyatta vadc Brocade Advantage CapEx Costs $2,400,000 $764,000 68% CapEx Savings OpEx Costs $37,375 $9,625 74% OpEx Savings Total Aggregate Costs $2,437,495 $773,656 68% Total Cost Savings Per-Rack Deployment TCO over Five Years: vadc Comparison Hardware Brocade Vyatta vadc Brocade Advantage CapEx Costs $1,200,000 $305,600 75% CapEx Savings OpEx Costs $19,625 $3,238 84% OpEx Savings Total Aggregate Costs $1,219,688 $308,848 75% Total Cost Savings 14
15 About Brocade Brocade networking solutions help organizations transition smoothly to a world where applications and information reside anywhere. Innovative Ethernet and storage networking solutions for data center, campus, and service provider networks help reduce complexity and cost while enabling virtualization and cloud computing to increase business agility. Learn more at 15
16 Corporate Headquarters San Jose, CA USA T: European Headquarters Geneva, Switzerland T: Asia Pacific Headquarters Singapore T: Brocade Communications Systems, Inc. All Rights Reserved. 05/15 GA-WP ADX, Brocade, Brocade Assurance, the B-wing symbol, DCX, Fabric OS, HyperEdge, ICX, MLX, MyBrocade, OpenScript, The Effortless Network, VCS, VDX, Vplane, and Vyatta are registered trademarks, and Fabric Vision and vadx are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned may be trademarks of others. Notice: This document is for informational purposes only and does not set forth any warranty, expressed or implied, concerning any equipment, equipment feature, or service offered or to be offered by Brocade. Brocade reserves the right to make changes to this document at any time, without notice, and assumes no responsibility for its use. This informational document describes features that may not be currently available. Contact a Brocade sales office for information on feature and product availability. Export of technical data contained in this document may require an export license from the United States government.
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