The Total Economic Impact Of Deploying OnCommand Management Software As Part Of A NetApp Private Cloud Solution

Transcription

1 A Frrester Ttal Ecnmic Impact Study Prepared Fr NetApp The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin A Ttal Ecnmic Impact Analysis Prject Directr: Bb Crmier, Vice President and Principal Cnsultant September 2011

2 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin TABLE OF CONTENTS Executive Summary... 2 Disclsures... 4 TEI Framewrk And Methdlgy... 4 Understanding The Private Clud Cncept... 5 Analysis... 6 Interview Highlights... 6 Cmpsite Organizatin Descriptin... 8 Csts Benefits And Savings Risk Flexibility Financial Summary Study Cnclusins Appendix A: Cmpsite Organizatin Descriptin Appendix B: Abut NetApp OnCmmand Management Sftware Appendix C: Ttal Ecnmic Impact Overview Appendix D: Glssary Appendix E: Abut The Prject Directr , Frrester Research, Inc. All rights reserved. Unauthrized reprductin is strictly prhibited. Infrmatin is based n best available resurces. Opinins reflect judgment at the time and are subject t change. Frrester, Techngraphics, Frrester Wave, RleView, TechRadar, and Ttal Ecnmic Impact are trademarks f Frrester Research, Inc. All ther trademarks are the prperty f their respective cmpanies. Fr additinal infrmatin, g t Abut Frrester Cnsulting Frrester Cnsulting prvides independent and bjective research-based cnsulting t help leaders succeed in their rganizatins. Ranging in scpe frm a shrt strategy sessin t custm prjects, Frrester s Cnsulting services cnnect yu directly with research analysts wh apply expert insight t yur specific business challenges. Fr mre infrmatin, visit Page 1

3 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Executive Summary In April 2011, NetApp cmmissined Frrester Cnsulting t examine the ttal ecnmic impact f deplying NetApp OnCmmand management sftware as part f a NetApp private clud slutin. The purpse f this study is t prvide readers with a framewrk t evaluate the ptential financial impact n their businesses if they invest in NetApp private clud slutins. This study highlights the csts and benefits f deplying NetApp OnCmmand management sftware as part f a private clud slutin acrss the enterprise f a cmpsite Organizatin (see Appendix A fr a descriptin f the cmpsite Organizatin). The findings in this study are in large part based n in-depth interviews cnducted by Frrester with seven custmers that currently use the NetApp slutin. The cmpsite Organizatin described in this study is based n the characteristics f the interviewed custmers. This study examines the estimated ROI fr the Organizatin and presents the aggregate findings derived frm the interview and analysis prcess as well as ur independent research. The study fund that fr ur cmpsite Organizatin, deplying OnCmmand management sftware as part f a NetApp private clud slutin prvided quantifiable benefits and savings in the fllwing areas (see Appendix B fr NetApp slutin descriptin): OnCmmand unified manager Labr savings frm using a single dashbard t mnitr alerts and take crrective actin. Labr savings frm capacity planning effrts. Savings assciated with retiring third-party backup sftware license and server. OnCmmand plug-ins Cst avidance f third-party backup and recvery sftware license and maintenance. FlexClne Labr savings frm the efficient replicatin f strage bjects t multiple lcatins. SnapManager Reduced dwntime impact t end users f Exchange envirnments. IT labr savings frm streamlined cmmn backup tasks. SnapDrive Eliminates the need t pre-purchase additinal strage. OnCmmand Insight Balance Eliminates the need t purchase additinal servers thrugh the ptimizatin f virtual machine densities. Reduces trubleshting time. Page 2

4 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Data ONTAP deduplicatin and thin prvisining Strage efficiencies that reduced strage csts (cst avidance). Fr the three-year perid f the financial analysis, the cmpsite Organizatin experienced the csts, benefits, and net benefits and ROI shwn in Table 1. Table 1 Three-Year Summary Financial Results The Organizatin Summary financial results Unadjusted (best-case) Risk-adjusted ROI 235% 151% Payback perid Within 9 mnths Within 12 mnths Ttal csts (PV) ($284,209) ($284,209) Ttal cst savings and benefits (PV) $952,767 $714,575 Ttal (NPV) $668,558 $430,366 Surce: Frrester Research, Inc. The three-year risk-adjusted ttal net present value (NPV) f $430,366 represents the net cst savings and benefits attributed t deplying NetApp OnCmmand management sftware as part f a private clud slutin, when cmpared with creating a private clud and nt using these slutins (see details belw in the Csts, Benefits, Flexibility, and Risks sectins). In additin, the risk-adjusted ROI was a very favrable 151%. The risk-adjustments made fr the cmpsite Organizatin is based n data and characteristics btained during the custmer interview prcess. Frrester risk-adjusts these values t take int accunt the ptential uncertainty that exists in estimating the csts and benefits f a technlgy investment. The risk-adjusted value is meant t prvide a cnservative estimate, incrprating any ptential risk factrs that may later affect the riginal cst and benefit estimates. Fr this study, Frrester applied a 25% risk adjustment i.e., a reductin f 25% t all benefits t reflect the risks. Fr a mre in-depth explanatin f risk and the risk adjustments used in this study, please see the Risk sectin. Organizatins that are likely t achieve similar results have the fllwing characteristics: Midsize t large enterprise-size rganizatins willing t standardize, virtualize, and create private cluds in their large cmputing envirnments. Are in the prcess f transfrming a data center with a gal f reducing csts. Page 3

5 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Newer rganizatins that dn t yet have an existing infrastructure and can mve easily tward a private clud envirnment. Are active in mergers and acquisitins and wish t mve the acquired cmpanies int a private clud envirnment. An IT staff with the requisite skills t manage virtual and clud-based server and strage envirnments, including knwledge f VMware's ESX server and virtualizatin platfrm as well as NetApp s Data ONTAP perating system and OnCmmand management sftware. The bjective f this study is nt t illustrate savings that ther enterprises can btain by deplying the NetApp slutin but rather t identify savings that the interviewed custmers experienced. These results can be used as a guide fr ther enterprises t determine the apprpriate benefits fr their particular envirnment. Disclsures The reader shuld be aware f the fllwing: The study is cmmissined by NetApp and delivered by the Frrester Cnsulting grup. Frrester makes n assumptins as t the ptential return n investment that ther custmers will receive. Frrester strngly advises readers t use their wn estimates within the framewrk prvided in this study t determine the apprpriateness f an investment in NetApp OnCmmand management sftware. NetApp reviewed and prvided feedback t Frrester, but Frrester maintained editrial cntrl ver the study and its findings and did nt accept changes t the study that cntradicted Frrester s findings r bscured the meaning f the study. Frrester des nt endrse NetApp r its strage slutins. The study is nt a direct r implied market r cmpetitive cmparisn. TEI Framewrk And Methdlgy Intrductin Based n the infrmatin gathered frm the interviews with a number f cmpanies, Frrester has cnstructed a Ttal Ecnmic Impact framewrk fr thse prspective rganizatins that wish t deply a private clud slutin based n NetApp strage and their OnCmmand management sftware. The bjective f the framewrk is t identify the csts, benefits, flexibility, and risk factrs that affect the investment decisin. Apprach And Methdlgy Frrester tk a multistep apprach t evaluate the business case fr these NetApp slutins (see Figure 1). Specifically, we: Page 4

6 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Interviewed NetApp marketing persnnel as well as Frrester analysts t gather data relative t NetApp private clud slutins including OnCmmand management sftware, and the marketplace in general. Interviewed seven custmers that have develped a private clud based n NetApp s slutins t btain data with respect t csts, benefits, and risks. Designed a cmpsite Organizatin based n characteristics f the interviewed custmers (see Appendix A). Cnstructed a financial mdel representative f the interviews using the TEI methdlgy. The financial mdel is ppulated with the cst and benefit data btained frm the interviews as applied t the cmpsite Organizatin. Figure 1 TEI Apprach Perfrm due diligence Cnduct custmers interviews Frmulate cmpsite Organizatin Cnstruct financial mdel using TEI framewrk Write case study Surce: Frrester Research, Inc. Frrester emplyed fur fundamental elements f TEI in mdeling the deplyment f OnCmmand management sftware as part f a NetApp private clud slutin: 1. Csts. 2. Benefits. 3. Flexibility. 4. Risk. Please see Appendix C fr additinal infrmatin n the TEI methdlgy. Understanding The Private Clud Cncept Building a private clud has t start with a basic understanding f hw a clud differs frm a traditinal virtualized envirnment. Frrester defines clud cmputing as: A standardized IT capability (services, sftware, r infrastructure) delivered in a pay-per-use, self-service way. In mst cases, a private clud is a shared IT infrastructure set up in a crprate data center and dedicated t just that cmpany. Let s break dwn the clud cmputing definitin t better understand its implicatins t IT peratins: Page 5

7 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Standardized capability. The value f a clud cmes in the flexibility it brings t the business hw rapidly and predictably applicatins can be deplyed t this infrastructure. That value cmes frm prvisining and managing the envirnment in a cnsistent manner every time. It s dne successfully by standardizing what is deplyed which means priritizing user ptins and by autmating as many prcesses as pssible. It s nt custmized r cnfigured uniquely fr each client, each time that raises cmplexity, slws dwn prcesses, and is much harder t make repeatable. There may be ptins fr cnsumers t chse sme lightweight custmizatins they can apply atp the service, but the capability delivered is repeated, religiusly. Pay-per-use. A secnd cre tenet is that the clud is a shared envirnment where custmers pay fr the resurces they use nly when they use them. Efficiencies cme frm hw much sharing takes place and hw high ne can drive the utilizatin f clud resurces as ften as pssible. A big reasn why cluds invke payper-use csting is t keep the clud efficient by incenting resurce efficiency frm the custmer themselves. Althugh many enterprises wn t implement this mdel the same way public cluds d, they shuld accunt fr and either shw back r chargeback clud cnsumptin t maximize the verall clud investment. Self-service. Fr clud services, self-service desn t mean a web page where yu request the service. Self-service is abut prviding self-service access thrugh a prtal t request services that have been defined in a service catalg. Thus, it prvides autmatin that requires minimal IT interactin s that the IT team can fcus n mre strategic business needs rather than rutine tasks. Frrester s research shws that mst IT rganizatins fcus n the server parts f their private clud instead f ptimizing each cmpnent t achieve maximum cst benefits. The strage architecture is cmmnly verlked, which leaves lts f efficiencies ut f reach. Ideally, clud strage shuld handle bth latency-sensitive and latencyinsensitive applicatins at the lwest pssible cst while taking advantage f thin prvisining, deduplicatin, life-cycle management, autmated tiering, and live migratin. Cst efficiency f strage cmes frm reducing bth the amunt f capacity cnsumed and the acquisitin and management cst per unit f capacity; this translates int direct reductins in expenditures n strage and maintenance csts as well as additinal savings n pwer, cling, and flr space. Efficient strage imprves service quality while reducing the cst t internal custmers. Analysis Interview Highlights Frrester derived its cnclusins in large part frm infrmatin received in a series f in-depth interviews with executives and persnnel at seven custmers currently using NetApp OnCmmand management sftware as part f a NetApp private clud slutin. The fllwing is a brief descriptin f each f the interviewed custmers; all were prmised annymity: An internatinal specialty insurance and benefit management cmpany headquartered in the United States. It has been using NetApp OnCmmand management sftware as part f a private clud fr mre than 12 mnths. This includes OnCmmand unified manager, SnapManager, and NetApp Virtual Strage Cnsle. Page 6

8 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin A glbal prvider f netwrking and technlgy slutins headquartered in the United States. It has been using NetApp OnCmmand management sftware as part f a private clud fr mre than 12 mnths, including SnapManager and OnCmmand Insight. A US cperative bank with mre than $50 billin serving the financial needs f the agriculture, pwer, and water industries. It has been using NetApp OnCmmand management sftware as part f a private clud fr between six and 14 mnths including OnCmmand unified manager, SnapManager fr Exchange, SnapDrive, and OnCmmand Insight. A midsize central-us university ffering 35 undergraduate and graduate degree prgrams and graduating 1,500 students per year. It has been using NetApp OnCmmand sftware as part f a private clud fr almst tw years including OnCmmand unified manager and the backup and recvery feature f NetApp Virtual Strage Cnsle. A large Eurpean-based prvider f enterprise applicatin slutins servicing mre than 100,000 custmers wrldwide. It has been using NetApp OnCmmand sftware as part f a private clud fr tw years including OnCmmand unified manager, NetApp Virtual Strage Cnsle, and SnapDrive. A Califrnia-based nnprfit healthcare rganizatin with mre than 900 physicians serving mre than 600,000 patients. It has been using NetApp OnCmmand as part f a private clud slutin fr tw years including OnCmmand unified manager, SnapDrive fr Windws, OnCmmand Insight, SnapManager, and NetApp Virtual Strage Cnsle. A US-based business technlgy services prvider drawing n a mix f 13,000 nshre, ffshre, and nearshre prfessinals serving custmers in 20 cuntries. It has been using NetApp OnCmmand management sftware fr a private clud fr up t fur years including OnCmmand unified manager, SnapManager fr SQL and NetApp OnCmmand Pr plug-in fr Micrsft System Center Operatins Manager. Cmmn Challenges Of Interviewed Custmers The interviewed custmers had several cmmn strage management challenges attributed t rapid grwth in strage within their respective rganizatins, which cntributed t an unmanageable strage envirnment. These challenges are part f what is ften verlked when rganizatins transitin frm highly virtualized t private clud envirnments. The interviewed custmers shared sme f the fllwing cmmn issues and challenges befre implementing NetApp private clud slutins: Difficulties managing a highly virtualized envirnment. Lack f visibility int bth physical and virtual infrastructure. Multiple management interfaces fr strage infrastructure. Management f strage grwth was nt scalable. Grwth f strage supprt resurces culd nt keep up with the rapid grwth in strage in terms f budget availability and ability t hire t meet the need. Page 7

9 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Grwth f strage capacity within the existing envirnment created mre cmplex, harder t manage strage with management divisins by applicatin, divisin, r gegraphy. Lw utilizatin f file strage infrastructure was assciated with higher than needed hardware, sftware, and administratin csts. Backups and file recvery were time-cnsuming. Larger scale backup envirnments required many media servers, significant staff time, and cmplex prcesses fr cnsistent management. Each individual applicatin r file server required additinal tape hardware, management server and sftware, netwrk and staff resurces t cnfigure effective backups. Fr mst rganizatins, backup windws are shrinking because f demand fr 24x7 availability but the ability t cmplete backups within the shrt windws is diminishing. Strage accessibility and availability were nt meeting business needs. Befre virtualizatin manual prcesses fr strage prvisining n physical machines led t lng delays and reduced cperatin between applicatin teams and strage teams because f dissatisfactin. Strage slutins were rarely right-sized, instead either t big r t small, causing cst verruns r pr perfrmance and availability. Cmpsite Organizatin Descriptin The Organizatin is an enterprise with 10,000 emplyees wrldwide, tw majr data centers, 10 remte facilities, and a mix f strage platfrms frm multiple vendrs. The IT department manages bth infrastructure and applicatins, with sme f the infrastructure physically lcated at a third-party hsting facility. The Organizatin has virtualized mre than 50% f the IT applicatins and has begun t deply a private clud n tp f a shared infrastructure that will be expanded as legacy infrastructure is retired. The private clud huses a mix f tier ne Micrsft applicatins as well as sme develpment and test wrklads, and it prvides services t apprximately 1,500 users. Envirnment, Gals, and Objectives The infrastructure fr the private clud is based n a reference architecture that specifies the server, netwrk, strage, and virtualizatin cmpnents and can be cnfigured fr smaller r larger wrklads by scaling any element f the architecture. The reference architecture can be deplyed with a chice f hypervisrs and a variety f wrklads, including Micrsft Exchange, SQL Server, SharePint, virtual desktps, SAP, and Oracle. The Organizatin recently implemented a virtual and clud first strategy in which all new applicatin wrklads will be deplyed n virtual machines and in a private clud envirnment unless there is an verriding reasn fr using physical servers. Over the past tw years, the Organizatin has seen data grwth rates in the 30%-plus range, which has increased bth primary strage requirements and the data prtectin infrastructure. The Organizatin is seeking t ptimize the perfrmance and capacity f its virtual and physical data center infrastructure while transitining wrklads t a private clud. The Organizatin s IT leadership wants the ability t transfrm itself int a service delivery business with Page 8

10 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin efficient mnitring and management f cmplex shared virtual infrastructures with high service expectatins while als achieving the fllwing gals and bjectives: Enable and leverage clud architecture t deliver business services mre quickly and be mre respnsive t custmer needs. Imprve efficiency and utilizatin in a dynamic data center envirnment laying the fundatin fr a virtualized, cst-efficient, and service-riented envirnment that scales and grws with the business. Cnslidate and virtualize its servers and strage in a unified apprach t bst utilizatin, efficiency, and effectiveness, particularly acrss its large, gegraphically dispersed facilities. Imprve business agility with a standardized apprach t strage architecture, reducing the expense and cmplexity f maintaining multiple strage systems fr different departments r dmains. Autmate regular administrative and management practices such as prvisining, backup, and replicatin management t manage mre capacity with fewer resurces. Drive dwn strage, pwer, cling, and data center expansin csts, and build a predictable future cst mdel. Add and autmatically deliver strage capacity n demand fr new and expanded business applicatins. Maintain data security and quality f existing services and leverage an end-t-end secure multitenancy slutin fr virtual envirnments t securely share, reuse, and dynamically allcate resurces at prmised service levels. Eliminate slutin deplyment risks by leveraging the strage vendr s expertise in develping a private clud. Framewrk Assumptins Table 2 prvides the mdel assumptins that Frrester used in this analysis. Table 2 General Assumptins General assumptins Value Discunt rate used t cmpute NPV 10% Length f analysis Annual fully laded cst f a strage administratr Hurly fully laded cst f a strage administratr Three years $110,000 $53.00 Surce: Frrester Research, Inc. Page 9

11 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin The discunt rate used in the present value (PV) and net present value (NPV) calculatins is 10%, and the time hrizn used fr the financial mdeling is three years. Organizatins typically use discunt rates between 8% and 16% based n their current envirnment. Readers are urged t cnsult with their respective cmpany s finance department t determine the mst apprpriate discunt rate t use in their wn envirnment. Csts Csts are an imprtant part f the TEI mdel. Csts, r IT impact, are calculated as a change in csts primarily fr IT as a result f the intrductin f the technlgy t the Organizatin. Therefre, deplying NetApp OnCmmand as part f a NetApp private clud slutin requires an upfrnt investment that affects IT budgets negatively because f the purchase f the slutin; it als affects the Organizatin psitively, in terms f the ptential cst savings and efficiencies created (see the Benefits And Savings sectin belw). The impact f cst is accrued in tw general areas described belw: NetApp slutin csts (see belw fr prduct details) and the Organizatin s internal preparatin, planning, and training csts, which altgether ttal $284,209. The Organizatin s csts fr the NetApp slutin: $237,209. The Organizatin will invest a ttal f $237,209 fr the fllwing NetApp slutins including sftware licenses and three years f sftware maintenance: OnCmmand (n charge license) OnCmmand unified manager (frmerly ffered separately as Operatins Manager, Prtectin Manager, and Prvisining Manager). OnCmmand hst sftware including OnCmmand plug-ins fr VMware and Micrsft. FlexClne SnapManager Applicatin Integratin Suite Frmerly ffered separately as SnapManagers fr: Exchange, SQL Server, SharePint, Oracle r SAP, and SnapManagers fr VMware r Micrsft, SnapDrive, and SMBR. OnCmmand Insight Balance (frmerly Akrri BalancePint). Three years sftware maintenance FlexClne, SnapManager Applicatin Integratin, OnCmmand Insight Balance. NetApp pricing is based n nrmal and average discunts ff NetApp s list price as f September Frrester assumes that the Organizatin had a pre-private clud envirnment that included varius NetApp prducts bught previusly and are therefre nt included in this analysis. See Appendix A fr a list f NetApp cmpnents in the Organizatin s preexisting shared IT infrastructure (pre-private clud investments). The Organizatin s csts fr internal preparatin, planning, and training: $47,000 described as fllws: As part f implementing the NetApp slutin, the Organizatin first perfrmed a current baseline assessment f its pre-private clud management practices assciated with its existing NetApp virtualized strage envirnment. Page 10

12 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin This readiness assessment lked at csts, benefits, and risks and was fllwed by a vendr selectin prcess and a detailed implementatin plan. This implementatin plan addressed current state f the virtualizatin, data center and netwrk envirnments. Based n the experience with the seven interviewed custmers, ur Organizatin required three individuals (strage, netwrk and system engineers) t perfrm the readiness assessment, vendr selectin and detailed implementatin plan. They each spent ne day a week fr 6 mnths (78 equivalent days) equating t 30% f a full-time equivalent (FTEs) r $33,000. In additin, tw IT staff travelled t attend a weeklng Data ONTAP curse which cst $4,500 per attendee plus $2,500 in travel csts fr a ttal training cst f $14,000. Ttal csts fr internal preparatin and training was $47,000. Ttal Csts The ttal csts f deplying NetApp OnCmmand management sftware as part f a private clud slutin at the Organizatin are listed in Table 3. Table 3 The Organizatin: Ttal Csts Assciated With OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Csts Initial Year 1 Year 2 Year 3 Ttal PV NetApp slutin sftware and maintenance NetApp sftware maintenance three years (paid in advance) Csts fr internal preparatin, planning, and training (179,303) ($179,303) ($179,303) (57,906) ($57,906) ($57,906) (47,000) ($47,000) ($47,000) Ttal ($284,209) ($284,209) ($284,209) Surce: Frrester Research, Inc. Benefits And Savings In additin t the csts assciated with the NetApp slutin, there were psitive cst savings and benefits that resulted frm the implementatin f the NetApp private clud slutins including OnCmmand management sftware. Each benefit listed belw will vary depending n an rganizatin s unique envirnment, and readers are urged t apply their wn estimates t quantify the impact f the NetApp slutins. Readers shuld als keep in mind that n ne interviewed custmer had achieved all f the benefits listed belw, and mst NetApp custmers are realizing a subset (abut half) f the pssible benefits. Page 11

13 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin The study fund that fr ur cmpsite Organizatin, the NetApp private clud slutins including OnCmmand management sftware prvided quantifiable benefits and savings in the fllwing areas (quantificatin begins after this list): OnCmmand unified manager Labr savings frm using a single dashbard t mnitr alerts and take crrective actin. Labr savings frm capacity planning effrts. Savings assciated with retiring third-party backup sftware license and server. OnCmmand plug-ins Cst avidance f third-party backup and recvery sftware license and maintenance. FlexClne Labr savings frm the efficient replicatin f strage bjects t multiple lcatins. SnapManager Reduced dwntime impact t end users f Exchange envirnments. IT labr savings frm streamlined cmmn backup tasks. SnapDrive Eliminates the need t pre-purchase additinal strage. OnCmmand Insight Balance Eliminates the need t purchase additinal servers thrugh the ptimizatin f virtual machine densities. Reduces trubleshting time. Data ONTAP deduplicatin and thin prvisining Strage efficiencies that reduced strage csts (cst avidance). Benefits Of NetApp OnCmmand Unified Manager OnCmmand unified manager benefits: Interviewed custmers using OnCmmand unified manager reprted that frm a central cnsle, it delivers cmprehensive mnitring and management fr NetApp strage with alerts, reprts, perfrmance, and cnfiguratin tls. Specific benefits mentined include: Simplify management: centralize and autmate strage management wrkflws. Maximize availability: detect ptential prblems and take crrective actin t prevent dwntime. Reduce TCO: ptimize resurce utilizatin and increase the efficiency f the strage management. Page 12

14 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Enable business plicy cmpliance: standardize enterprisewide NetApp cnfiguratin management. The prductin f cmprehensive reprts f utilizatin and trend infrmatin t supprt capacity planning, space usage, and backup allcatin. See hw physical resurces are affected by data utilizatin and deduplicatin. Mnitr system perfrmance and health t reslve ptential prblems befre they ccur. Deply, prvisin, and manage a cmplete enterprise strage netwrk frm a central lcatin. Quantified benefits frm the use f OnCmmand unified manager (frmerly Operatins Manager, Prvisining Manager and Prtectin Manager) by the Organizatin include: Labr savings using a single dashbard t mnitr alerts and take crrective actin $66,000 ($22,000 annually) equating t 20% f an FTE in time savings versus the prir manual effrt f mnitring alerts. Ttal savings is $66,000 ver three years. Labr savings t supprt capacity planning effrts $108,900 ($36,300 annually) equating t 33% f an FTE saved versus previus manual effrts t frecast strage needs. Ttal savings is $108,900 ver three years. OnCmmand unified manager benefits: Custmers using OnCmmand unified manager were autmating data prtectin peratins with plicy-based management, glbal mnitring, and reprting. Specific features called ut by the interviewed custmers include: OnCmmand unified manager simplifies cmmn data prtectin tasks and autmates management acrss Snapsht, SnapMirrr, SnapManager, SnapVault, and Open Systems SnapVault peratins. It autmates strage prvisining and prvides glbal plicy-based management, mnitring, and alerting. OnCmmand unified manager makes it easier t define, apply, and update data prtectin plicies acrss the enterprise. It minimizes effrt, cuts administrative verhead, and guarantees that best practices as well as service-level agreements are met glbally. A dashbard shws cmprehensive data prtectin infrmatin, including unprtected data, alerts, and utilizatin, at a glance. Quantified benefits frm the use f OnCmmand unified manager by the Organizatin include: The use f OnCmmand unified manager replaced a third-party backup license and server $120,000 ($40,000 annually). The Organizatin was able t retire third-party backup sftware at an annual net savings f $30,000 ($90,000 ver three years); plus it did nt have t replace the server running the third-party sftware saving anther $10,000 annually ($30,000 ver three years) saving csts assciated with hardware, perating system license, and warranty. Ttal savings is $120,000 ver three years. Several interviewed rganizatins indicated that the use f OnCmmand unified manager facilitated deduplicatin and thin prvisining and the resulting strage hardware savings. These benefits are cnslidated in the Strage Efficiency - Deduplicatin and Thin Prvisining sectin belw. Page 13

15 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Benefits Of NetApp FlexClne With OnCmmand Unified Manager NetApp FlexClnes and OnCmmand unified manager benefits: The custmer using OnCmmand unified manager prvisining features emphasized its ability t speed prvisining wrkflws and bst capacity utilizatin with plicybased autmatin t prvisin NetApp SAN and NAS infrastructure frm a single cnsle. This custmer has experienced the fllwing benefits: OnCmmand unified manager can speed the creatin f new NetApp strage resurces and help imprve capacity management f existing strage resurces. Strage administratrs utilize OnCmmand unified manager's plicy-based autmatin t create repeatable, autmated prvisining prcesses t imprve the availability f data and enable prvisined strage t cmply with plicies. These prcesses are faster than manually prvisining strage, easier t maintain than scripts, and help minimize the risk f data lss due t mis-cnfigured strage. These prcesses can leverage built-in capabilities such as FlexClnes, data prtectin plicies and strage efficiency features such as thin prvisining and deduplicatin. OnCmmand unified manager applies user-defined plicies t cnsistently select the apprpriate resurces fr each prvisining activity. The use f a centralized management cnsle allws administratrs t mnitr the status f their prvisined strage resurces. OnCmmand unified manager can help imprve business agility and capacity utilizatin, shrink prvisining time, and imprve administratr prductivity. Quantified benefits frm the use f NetApp FlexClnes and OnCmmand unified manager by the Organizatin include: Labr savings using NetApp FlexClne $330,000 ($110,000 annually). Befre implementing OnCmmand unified manager, custmer recrds were replicated t fur different envirnments vernight which tk 8 hurs with ne secnd-shift SQL database administratr (DBA) starting the prcess befre she went hme; and a first-shift SQL DBA checking the results in the mrning. Using NetApp FlexClnes, it nw takes a ttal f 15 minutes; saving the SQL DBAs a cmbined 8 hurs per weeknight equating t 100% f an FTE. With NetApp s FlexClne feature, any strage bject (file, LUN, r vlume) can be clned and made available fr access. With FlexClne, cmmn strage blcks between the clne and the riginal data set cnsume n additinal physical strage space. Ttal savings is $330,000 ver three years. Benefits Of NetApp SnapManager SnapManager benefits: Interviewed custmers were using SnapManager fr the fllwing: Micrsft SQL Server, Micrsft Exchange, Oracle, r the backup and recvery feature f Virtual Strage Cnsle (frmerly SnapManager fr Virtual Infrastructure). Custmers described the fllwing benefits assciated with SnapManager: Execute fast backups withut taking databases ffline. Page 14

16 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Add strage capacity and expand vlumes with minimal impact t the availability f the NetApp strage system. Increase prductivity by autmating cmmn tasks t let administratrs spend less time n data and strage management. Use NetApp Snapsht technlgy t stre mre than 250 cpies f data t get fast, granular recvery. Restre frm a wide range f ptins such as full cntent, individual, strage grup, individual database, and virtual disk recvery. Quantified benefits frm the use f SnapManager fr Exchange by the Organizatin include: Reduced dwntime impact t end users f Exchange $129,600 ($43,200 annually). SnapManager fr Exchange minimizes disruptins thrugh faster backups and restres f the rganizatin s Exchange envirnment. Replicatin f snapshts t a secndary system can be achieved withut manual interventin, further reducing the dwntime impact t end users. Fr ur Organizatin, we estimate a 20% reductin in Exchange dwntime as a result f imprved manageability f the Exchange envirnment. Assuming rughly 10% f the 10,000 users are affected, the ttal annual savings frm reduced dwntime equates t $43,200. Ttal savings is $129,600 ver three years. IT labr savings frm streamlined cmmn backup tasks $45,000 ($15,000 annually). Interviewed custmers IT administratrs reprted benefits frm using SnapManager fr Exchange thrugh better manageability f snapsht replicatin and mre efficient backup and restre windws. The verall impact is t streamline management by autmating cmmn tasks t let administratrs spend less time n maintenance. Fr ur Organizatin, we estimate the imprvement in the time t recver frm 24 t 2 hurs, reducing the burden n IT administratrs and prviding a ttal annual savings f $15,000. Ttal savings is $45,000 ver three years. Benefits Of NetApp SnapDrive SnapDrive benefits: One interviewed custmer wh was using SnapDrive indicated that it simplifies and autmates strage and data management. Specific benefits include: Autmate strage-prvisining tasks and simplify the prcess f taking errr-free, hst-cnsistent data Snapsht cpies. Add mre strage as necessary and eliminate the need t pre-allcate strage resurces based n frecasted demand. Autmate OS-cnsistent backups f applicatin data. Quantified benefits frm the use f SnapDrive by the Organizatin include: Eliminate the need t pre-purchase additinal strage (pre-allcate strage resurces) $90,000 ($30,000 annually). The use f SnapDrive allws the Organizatin t phase in strage via clud-based prvisining and eliminates the need t purchase apprximately 6 TB s (high-capacity SATA drives) per year at $5,000 per TB ($30,000 per year), saving the Organizatin $90,000 ver three years. Page 15

17 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Benefits Of NetApp OnCmmand Insight Balance OnCmmand Insight Balance. Streamlines IT s ability t transfrm itself int a service delivery business with efficient mnitring and management f cmplex shared virtual infrastructures with high service expectatins. Specific benefits include: OnCmmand Insight Balance (frmerly Akrri BalancePint) ptimizes and bsts the quality and efficiency f strage envirnments thrugh near-real-time visibility, multivendr and multiprtcl supprt, and end-tend service-level views f the strage service path. Reduce perating and capital expenditures by imprving capacity management and peratinal efficiencies and ptimizing usage f NetApp efficiency technlgies. Optimize virtual infrastructure envirnments and reduce the risk f ver-prvisined strage, enable VMs t perfrm with the highest pssible availability and perfrmance. View trending and reprts fr capacity planning and capacity management f virtualized and clud envirnments. OnCmmand Insight Balance benefits: Tw interviewed custmers wh are using OnCmmand Insight Balance indicated that it prvides directin t ptimize the perfrmance and capacity f virtual and physical data center infrastructure. Specific reprted benefits include: Reduces the csts and risks f deplying and managing a shared virtual IT infrastructure. Prvides visibility acrss hetergeneus VMs, physical servers, and strage. Balances perfrmance and utilizatin t ptimize capacity and reduce capex. Reduce trubleshting time by 50%. Optimize VM densities with reprts that identify physical bxes that have capacity fr mre VMs. Imprve server and strage utilizatin. Manage service levels. Quantified benefits frm the use f OnCmmand Insight Balance by the Organizatin include: Eliminate the need t purchase additinal servers thrugh the ptimizatin f VM densities $90,000 ($30,000 annually). OnCmmand Insight Balance will identify underutilized server envirnments and allw fr mre aggressive lading f VMs n physical bxes. The Organizatin anticipates reducing its physical machine purchases by ne server per year (attributable t OnCmmand Insight Balance, saving the csts assciated with hardware, installatin, perating system license, and maintenance, which were reprted t average $30,000 annually). Ttal savings is $90,000 ver three years. Reduce trubleshting time by 8 hurs per week $66,000 ($22,000 annually). OnCmmand Insight Balance can help the Organizatin identity perfrmance issues within the virtualized envirnment by cllecting raw data Page 16

18 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin frm individual elements, i.e., pinpinting latency causes, infrastructure respnse times, perfrmance index, and disk utilizatin and applies analytics and actinable advice. The interviewed custmers reprted savings averaging 8 hurs per week, r 20% f an FTE, r $22,000 annually. Ttal savings is $66,000 ver three years. Benefits Of IT Integratin NetApp OnCmmand plug-ins fr VMware and Micrsft NetApp Virtual Strage Cnsle (VSC), an OnCmmand plug-in fr VMware. Tw interviewed custmers are using NetApp VSC which is designed t simplify strage management and reduce csts in bth SAN- and NAS-based VMware infrastructures. NetApp VSC peratins include discvery, health mnitring, capacity management, prvisining, clning, backup, and recvery. Specific reprted benefits include: NetApp VSC prvides strage discvery, health mnitring, capacity management, and strage cnfiguratin accrding t best practices. VSC backup and recvery (frmerly NetApp SnapManager fr Virtual Infrastructure) autmates data prtectin prcesses by enabling VMware administratrs t centrally manage backup and recvery f data stres and VMs withut affecting guest perfrmance, and t rapidly recver frm backups at any level f granularity-data stre, VM, Virtual Machine Disk (VMDK) frmat, r guest file. A quantified benefit frm the use f NetApp VSC by the Organizatin is: Cst avidance f third-party backup and recvery sftware license and maintenance $39,200 ($28,000 license plus $5,600 in annual maintenance fr years 2 and 3). The Organizatin avided third-party license cst by using VSC backup and recvery which autmates data prtectin prcesses by enabling VMware administratrs t centrally manage backup and recvery f datastres and VMs. Ttal savings is $39,200 ver three years. NetApp OnCmmand plug-in fr Micrsft. The NetApp plug-in fr System Center Operatins Manager is designed t mnitr NetApp strage systems using existing management tls and skills. The interviewed custmer reprted using the fllwing features and functinality, but was nt able t quantify any benefits. Islate prblems quickly using Micrsft Operatins Manager s alert and health explrer views, analyze trends, and create reprts with the Reprting Management Pack and autmate and simplify disaster recvery with the MetrCluster Management Pack. Mnitr strage availability and capacity as they pertain t virtual machines running n a Micrsft Hyper-V hst. Create new virtual machines in minutes using rapid prvisining and clning cmdlets and enable rapid prvisining f space-efficient VMs. Strage Efficiency Deduplicatin And Thin Prvisining The Organizatin was able t take advantage f deduplicatin and thin prvisining befre creating a private clud envirnment, and we did nt quantify thse benefits in this study. Hwever, the Organizatin was able t gain added strage efficiency benefits in a pst-private clud envirnment as described belw. Page 17

19 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Deduplicatin and thin prvisining $62,500 ($20,833 savings annually).the interviewed rganizatins reprted using cmbinatins f these tw NetApp technlgies, described belw, that reduced their strage csts in cnjunctin with their private cluds. Fr ur cmpsite Organizatin, we assumed that ne-half f the ttal savings will ccur fllwing the transitin frm virtualizatin t a private clud. The interviewed custmers using these technlgies reprted significant strage efficiencies that can be quantified based n data cllected by the NetApp phne hme supprt service called AutSupprt. The deduplicatin feature is described belw: Data deduplicatin. NetApp prvides the benefit f sharing identical data amng multiple virtual machines that reside n disk strage thrugh its data deduplicatin technlgy, resulting in the cntents f virtual machines being reduced t a single cpy per data stre. Analysis f a NetApp prvided reprt fr 29 strage systems using NetApp s deduplicatin acrss all strage prtcls supprted by VMware (NFS, FC, and iscsi) indicated strage efficiencies f 20% fr the rganizatins interviewed. The interviewed custmers reprted additinal savings in private clud primary strage hardware using NetApp thin prvisining feature. Althugh it was difficult fr these custmers t segregate and quantify the savings between deduplicatin and thin prvisining. The thin prvisining feature is described belw: Thin prvisining. The seven interviewed custmers each described a traditinal (pre-virtualizatin, pre-private clud) envirnment where server administratrs wuld verprvisin strage t avid running ut and t avid the dwntime related t expanding the prvisined strage. NetApp s thin prvisining feature prvides strage n demand by treating strage as a shared resurce that is cnsumed nly when individual virtual machines require it. This sharing increases the ttal utilizatin rate f strage by eliminating the unused but prvisined areas f strage that are assciated with traditinal strage. Thin prvisining and data deduplicatin are mutually inclusive features designed t reduce the need fr mre strage by increasing the utilizatin rates f existing strage. Thin prvisining allws ne t nly cnsume n demand, with deduplicatin remving any redundancy subsequently added t the array. Bth deduplicatin and thin prvisining can be enabled r disabled n a data bject basis and can be defined as part f a strage service catalg using the OnCmmand sftware t autmate the prvisining prcess. Our Organizatin was able t avid purchasing anther 12.5 TB f strage hardware (disk shelves and drives) ver three years at an average cst f $5,000 per terabyte r $62,500 ver three years. Ttal Quantified Benefits The ttal quantified benefits f deplying NetApp private clud slutins including OnCmmand at the Organizatin are listed in Table 4. Page 18

20 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Table 4 The Organizatin: Ttal Benefits Assciated With OnCmmand Management Sftware As Part Of A NetApp Private Clud (Nn-Risk-Adjusted) Ttal Quantified Benefits Year 1 Year 2 Year 3 Ttal PV OnCmmand unified manager labr savings frm using a single dashbard t mnitr alerts, take crrective actin 22,000 22,000 22,000 $ 66,000 $54,711 OnCmmand unified manager labr savings using Operatins Manager t supprt capacity planning effrts 36,300 36,300 36,300 $108,900 $90,273 OnCmmand unified manager savings assciated with retiring backup sftware license and server 40,000 40,000 40,000 $120,000 $99,474 Labr savings frm using NetApp FlexClne t replicate data fr fur envirnments vernight 110, , ,000 $330,000 $273,554 SnapManager fr Exchange reduced dwntime impact t Exchange users 43,200 43,200 43,200 $129,600 $107,432 SnapManager fr Exchange IT labr savings frm streamlined cmmn backup tasks 15,000 15,000 15,000 $45,000 $37,303 SnapDrive eliminate the need t pre-purchase additinal strage 30,000 30,000 30,000 $90,000 $74,606 OnCmmand Insight Balance eliminate the need t buy additinal servers thrugh the ptimizatin f virtual machine densities 30,000 30,000 30,000 $90,000 $74,606 OnCmmand Insight Balance reduce trubleshting by 8 hurs per week 22,000 22,000 22,000 $66,000 $54,711 NetApp VSC cst avidance f thirdparty backup and recvery sftware license and maintenance 28,000 5,600 5,600 $39,200 $34,290 Deduplicatin and thin prvisining 20,833 20,833 20,834 $62,500 $51,809 Ttal nn-risk-adjusted benefits $397,333 $374,933 $374,934 $1,147,200 $952,767 Surce: Frrester Research, Inc. Page 19

21 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Risk Risk-adjusted and nn-risk-adjusted ROI are bth discussed in this study. The Organizatin s individual csts and benefits are quted in nn-risk-adjusted (best case) terms and befre risk adjustments are made. The assessment f risk prvides a range f pssible utcmes based n the risks assciated with IT prjects in general and specific risks relative t private clud strage prjects. In ur research, we discvered that implementing private cluds was a relatively lwrisk endeavr if rganizatins tk the time t plan the implementatin and train the apprpriate IT staff. Risk factrs are used in TEI t widen the pssible utcmes f the csts and benefits (and resulting savings) assciated with a prject. Because the future cannt be accurately predicted, there is risk inherent in any technlgy-related prject. TEI captures risk in the frm f risks-t-benefits and risks-t-csts. Measurement f risk is a way f incrprating the levels f cnfidence and uncertainty regarding the cst and benefit estimates f a given investment. Higher cnfidence that the csts and benefit estimates will be met implies that the level f risk is lwer, and the variatin between the risk-adjusted and nn risk-adjusted utcmes is minimized. The fllwing general risks were cnsidered in this study: Lack f rganizatinal discipline in creating prcesses and prcedures t best take advantage f the benefits. Lack f apprpriate training fr IT persnnel wh will be respnsible fr ptimizing the full benefit ptential frm the slutin. Failure t reduce, transfer, r redeply IT supprt headcunt made redundant by labr efficiencies. The ptential that the benefits will nt be measured and quantified in the future, and as a result, n TEI benefit wuld be captured and acknwledged. Internal inertia, cnflicting pririties, and turnver, which reduces the rganizatin s ability t achieve the benefits. The fllwing risk assciated with NetApp private clud slutins was cnsidered in this study: There is risk in readers assuming that their rganizatin can match the benefits f the Organizatin depicted in this study. The seven interviewed custmers were nt yet fully utilizing the NetApp slutin, as reflected by their smewhat limited use f all the prducts within OnCmmand. On average, the seven interviewed custmers were using abut half f the prducts and features which were quantified in this study. Each intends, hwever, t take advantage f additinal functinality (and benefits) in the future. The inability f an rganizatin t find, train, and retain administratrs f the NetApp OnCmmand management sftware, the Data ONTAP perating system, and ther related prducts. Fr this study, Frrester applied a 25% risk adjustment (reductin f 25%) t all benefits t reflect the risks listed abve. We have nt risk-adjusted csts as a majrity were fixed qutes frm NetApp. Page 20

22 Frrester Cnsulting The Ttal Ecnmic Impact Of Deplying OnCmmand Management Sftware As Part Of A NetApp Private Clud Slutin Table 5 The Organizatin: Ttal Risk-Adjusted Benefits Assciated Deplying OnCmmand As Part Of A NetApp Private Clud Slutin (Risk-Adjusted By 25%) Ttal Quantified Benefits Year 1 Year 2 Year 3 Ttal PV Ttal risk adjusted benefits 298, , ,201 $860,400 $714,575 Surce: Frrester Research, Inc. Table 5 represents the ttal f Table 4 (ttal nn-risk-adjusted benefits) less 25% risk adjustment as described abve. If a risk-adjusted ROI still demnstrates a cmpelling business case, it raises cnfidence that the investment is likely t succeed because the risks that threaten the prject have been taken int cnsideratin and quantified. The risk-adjusted numbers shuld be taken as realistic expectatins because they represent the expected value cnsidering risk. Assuming nrmal success at mitigating risk, the risk-adjusted numbers shuld mre clsely reflect the expected utcme f the investment. Flexibility Flexibility, as defined by TEI, represents investing in capacity r agility nw that can be later turned int business benefits fr sme future additinal investment. The value f flexibility is clearly unique t each rganizatin, and the willingness t measure its value varies frm rganizatin t rganizatin. Fr the purpse f this analysis, we have assumed that the Organizatin sees the value in being able t reduce future backup strage acquisitin cst r achieve lnger intervals between strage capacity upgrades using deduplicatin. The value f the ptin (when calculated) is based n the Black-Schles ptin pricing frmula. (Fr additinal infrmatin regarding the flexibility calculatin, please see Appendix C.) The seven interviewed custmers were nt yet fully utilizing NetApp private clud slutins including OnCmmand management sftware, as reflected by the smewhat limited use f all the prducts within OnCmmand. Fr example, n average, the seven interviewed custmers were using nly half f the prducts and features which were quantified in this study. Granted, nt all prducts and features lend themselves t every envirnment; hwever, there are significant future flexibility ptins fr each custmer t braden its use f the remaining prducts within this NetApp slutin. Custmers need t take advantage f the apprpriate flexibility ptins t ptimize their private clud envirnments. Each custmer indicated that it wuld leverage mre f the OnCmmand prducts and functinality t derive even greater benefits in the future. These ptins, nce exercised in the frm f additinal licensing f prducts and taking advantage f NetApp frmal training curses, wuld create future quantified benefits. Frrester will nt be quantifying flexibility ptins in this study, as we have already quantified selected benefits fr each NetApp prduct. Page 21