Virtualization Adoption & The Next Generation of Virtualization

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1 Virtualization Adoption & The Next Generation of Virtualization Stelios Charalambakis Research Analyst IT Markets Greece, Cyprus & Malta Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

2 Sprawling Infrastructure: Operational Costs Rise Dramatically WW Spending on Servers, Power and Cooling, and Management/Administration Customer Spending ($M) # Installed Servers $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 Power & Cooling Mgmt & Administration New Server Spending 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 $0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 0 Feb-10 2

3 Virtualization Gets Real Server virtualization is now considered a mainstream technology among IT buyers Cost saving from server consolidation Rapid provisioning of new servers IT professionals are very bullish on future use Most believe virtualization reduced physical server IB by 20% Feb-10 3

4 The Different Stages of Virtualization Adoption Value Strategic Business Benefits: Agile, Flexible, Always-on Automation Service oriented Policies based Variable costs OpEx Savings Mobility Planned downtime Network resiliency OpEx Savings Unplanned downtime HA/DR/back-up Workload balancing CapEx Savings Encapsulation Partition Consolidate servers Resource sharing Dynamic Consolidation Time Feb-10 4

5 Virtualization by the Numbers Understanding the Motivations and Impacts 70% of virtualization driven by IT Infrastructure team 50% of the workload described as production 70% of virtualization deployed on new server HW fewer servers acquired on average annually 25% lower costs on average (HW, P&C, R.E., etc.) 70% are very satisfied with virtualization Feb-10 5

6 Key Findings Virtualization becoming default x 86 server build Server virtualization is quickly becoming the default build for new applications and server upgrades Use of standalone physical servers outside special application areas (high-end OLTP, data intensive analytics) requires special approval. Majority customers in this research have over one year of experience with virtualization in x86; very little internal resistance remains. Customers are looking to extend the value across multiple levels of their IT organizations: File Servers/SharePoint Storage consolidation Disaster recovery Mean # of x86 Servers Virtualized Q. Thinking about the total number of x86 based servers installed, approximately how many are virtualized, or running virtualization software, and how many are NOT virtualized? 10.6 All (n=240) < 200 (n=65) (n=103) No. of employees (n=72) Notes: See notes for questions Feb-10 6

7 Key Findings Companies are becoming comfortable with scalability As companies become more comfortable with virtualization and deploy higher performance servers, they are willing to increase the number of virtual machines running on single systems. Percentage Running >5 VM/Server Q: Thinking about your virtualized x86 servers, what is the typical number of partitions or virtual machines installed PER physical server? In the current economic difficulties, the first response of many companies will be to increase workloads on existing servers. (%) % 28% 23% 29% These moves are already exposing limits in existing data and storage network infrastructure % 26% 28% 26% These efforts will raise exposure to and awareness of application recovery vulnerabilities. 0 All (n=240) < 200 (n=65) 6-9 VMs 10+ VMs 200 to 999 (n=103) # of employees (n=72) Notes: See notes for questions Feb-10 7

8 Server Virtualization Rate Q. Thinking about the total number of x86 based servers installed, approximately how many are virtualized, or running virtualization software, and how many are NOT virtualized? U.K. Germany France Total Virtualized Servers Not Virtualized Servers UK N=240 Germany France Total Percentage of virtualized servers 35% 48% 31% 36% Mean average no. of partition /servers Source:/Notes: Feb-10 8

9 Western Europe Virtualized x86 Server Shipments Vs. Virtualization Rate Forecast , , , % 19.6% 20.7% 21.4% 22.0% 22.6% Units 300, , , , (%) 100,000 50, Virtualized Shipments Virtualization Rate % 0 Western Europe Server Virtualization Forecast and Analysis, (IDC #GE06R9,May 2009) Feb-10 9

10 Western Europe Virtual Machines Vs. Physical Servers Forecast ,000,000 2,500,000 2,000,000 (Units) 1,500,000 1,000, , Virtual machines (VMs) shipped Physical machines shipped (virtualized and not) Western Europe Server Virtualization Forecast and Analysis, (IDC #GE06R9,May 2009) Feb-10 10

11 Server Virtualization Impact: WW Server Virtualization Shipment Forecast, ,500,000 15,000,000 12,500,000 10,000,000 7,500, M VMs 16.6M VMs 8.0 Cross Over 1/5 th x 5,000,000 2,500, Physical Hosts Stand Alone Servers Virtual Machines 5% Shipments VM Densities Nearly Triple 20% Shipments Feb-10 11

12 Evolving Enterprise Data Centers: Migrating To The Virtualized Data Center Extend Where Possible, Optimize New Extend operational lifetimes Virtualization, de-duplication, convergence Single rack approach for new deployments , analytics, virtual desktops Deal with the content and archive problems SharePoint, tiering, file-based storage Convergence In the Data Center SAN/network optimization (10 Gbe and FCoE) Greater integration of network, systems, and storage Predictable performance across server/storage pools Feb-10 12

13 Key Findings Server virtualization is increasingly being tied into existing and emerging DR plans for production applications. Organizations with a significant number of virtualized servers are more able to leverage server virtualization for improved application availability and DR due to prior storage replication investments, but smaller environments still face significant barriers. Being able to leverage preexisting data replication assets (HW, SW, and network) can much more easily justify DR programs based on virtual servers. High WAN costs, as well as cost of remote storage hardware, makes DR prohibitive for many smaller organizations. Feb-10 13

14 Changing Enterprise Data Profile: Development of Role-base Storage (EB) Consumption of Enterprise Disk Capacity by Type Structured data 87% Replicated data CAGR 76.1% 47.3% 22.7% 18.7% Copy-centric Business Continuity (VTL, De-duplication) Business Analytics (Data Warehouse) Active Archive Long-term records Compliance ediscovery Content-centric Clustered NAS Video Cloud Unstructured data Content Depots & Cloud Feb-10 14

15 Key Findings Storage Options for Virtual Servers Remain Diverse Fibre channel (FC) is the most widely used storage platform, accounting for 41% of sites Weighted to larger companies Direct attach storage (DAS) is also extensively deployed in a wide range of companies More extensive use in sites with longer history of deploying virtualized servers iscsi is the second most used network attach 45% 40% 35% 30% 25% 20% 15% 10% 20% 10% 41% 17% 12% 5% 0% Int. DAS (n=48) Ext. DAS (n=25) FC (n=99) iscsi (n=40) NAS (n=28) Primary Storage Used Notes: See notes for questions Feb-10 15

16 What s Next? Building the Efficient Virtualized Data Center Workload Centric Lower Cost Improved Availability Better Response to the Business Fewer Data Center Sites Reduced real estate and WAN costs Staff efficiencies Operational Best Practices Improved Data Center Design Modularity, predictability, repeatability Energy efficiency Improved Availability and DR Virtualization Improved utilization Workload and data mobility Lower cost HA & DR Feb-10 16

17 Where we re going The long road to Virtualization Integrated cloud management Holistic monitoring/diagnosis Cross hypervisor management Utility billing/chargeback Automation and Orchestration Self Service Portals Storage Virtualization Client Hypervisor Tier 1 Applications Unplanned downtime External cloud federation Platform as a Service Virtualization aware applications Integrated physical/virtual management Policy based management Network/IO Virtualization Application Virtualization VDI Resource Optimization Business Continuity Virtualization 2.x Virtualization 3.0 The fully virtualized datacenter Spans internal and external cloud Adaptive, intelligent infrastructure Service oriented (IT as a service) Near term Emerging Future Operational Savings Feb-10 17

18 Virtual Management: Direction and Trends Trial Limited Use (Dev. & Test) Production Use Enterprise Standard None Image management VM isolation CPU management Bare metal restore Configuration mgmt. Resource mgmt. Image mgmt. Reporting Single console view Patch mgmt. Heterogeneity Mgmt. integration Change mgmt. Compliance reporting Cluster management Reporting Provisioning Performance mgmt. Application mgmt. Management expectations and requirements grow as production implementations and business risk increases Feb-10 18

19 Conclusions Virtualization is a great vehicle to improve efficiencies. Provides CapEx and OpEx savings. Helps simplify the IT environment. Increases responsiveness to the business unit. Virtualization supports a variety of use cases. Meet business continuity requirements. Establish new capacity planning models. Rethink cost allocation models. Virtualization is a key catalysts for competitive business advantages. Treat virtualization as an architectural decision. Virtualization success will be measured by the successful management of virtual machines. Virtualization should be used to continue the drive for IT services linked to business processes. Virtualization is the foundational technology for the datacenter of the future. Feb-10 19

20 Questions Contact: Stelios Charalambakis Tel: Mob: IDC Greece 2-4 Mesogeion Av Athens Greece Fax: Feb-10 20

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