Microsoft Corporation
Windows Server 2012
Rapid Deployment
Program
TCO Study Whitepaper
Published Date: June 2012
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Contents
Executive Summary ........................................................................................................................................................ 1
Administration Labor Cost Savings .......................................................................................................................... 2
Hardware and Infrastructure Cost Savings from Virtualization ..................................................................... 4
Server Cost Savings ................................................................................................................................................... 4
Storage and Network Cost Savings ..................................................................................................................... 5
Software Cost Savings ................................................................................................................................................... 7
Business Benefits ............................................................................................................................................................. 8
System Availability ..................................................................................................................................................... 8
User Productivity...................................................................................................................................................... 10
Conclusion ...................................................................................................................................................................... 11
Appendix ......................................................................................................................................................................... 12
About This Study ..................................................................................................................................................... 12
More Information .................................................................................................................................................... 13
References .................................................................................................................................................................. 13
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Executive Summary
“We were blown away by all the
different features that Windows
In today’s economic climate, business and technology
decision makers find themselves facing a double-edged
sword. IT teams are being stretched to respond to business
needs as quickly as possible. Also, there is now a much
Server 2012 has to offer.”
–Global Infrastructure Manager at a
large Services Company in the U.S.
greater pressure in justifying an organization’s technology spending. Microsoft’s® latest server
operating system, Windows Server 2012, helps address these central business and IT challenges
with a scalable, manageable, and cost-effective server platform.
More than 50 early adopter organizations (“early adopters”) that participated in a Rapid
Deployment Program (“RDP”) for Windows Server 2012 were asked to share their experiences
using the product. Participants from several different industries and geographies came to
Windows Server 2012 looking to find IT improvements in a variety of scenarios, which mapped
to the following key Windows Server 2012 pillars:
Beyond
Virtualization
Power of Many
Servers, the
Simplicity of One
Modern Work Style,
Enabled
Every App, Any
Cloud
Participants focused on Windows Server 2012’s Hyper-V
enhancements and private cloud capabilities.
Participants evaluated Windows Server 2012’s continuously
available and efficiently manageable server, storage, and
network capabilities.
Participants tested Windows Server 2012’s direct access
capabilities for their mobile and distributed workforce.
Participants focused on Windows Server 2012’s open
application and Web platform scalability features.
Through new product features and enhancements in Windows Server 2012, early adopters
expect to realize one-time and ongoing cost savings across these key areas:
Administration
Labor Cost Savings
 Approximately U.S.$220,000 in labor cost savings per year for
the IT department
Hardware and
Infrastructure Cost
Savings from
Virtualization
 Average 80% improvement in workload density
 Average 44% reduction in server hardware and associated
annual utility and real estate costs
 20% - 40% reduction in storage space
 Availability: Average 52% reduction in planned downtime;
average 23% reduction in unplanned downtime
 Time-to-Market: Approximately 41% reduction in workload
deployment time
 Productivity: Approximately 15 hours per employee per year
recovered in end-user productive time
Business
Benefits
1
Administration Labor Cost Savings
By reducing the number of physical servers and discrete add-on tools, IT departments can save
on server management and administrative overhead costs. 91% of Windows Server 2012 early
adopters said that they expect time saved in server administration activity; and 88% expect
savings in network administration hours. Overall, the surveyed early adopters identified total
server and network administration labor savings of approximately 3.2 hours per IT employee per
year, on average. Considering a fully burdened IT staff salary of approximately $37i per hour for
an average IT department size of 1,830 employees across all the surveyed participants, these
savings amount to a total of approximately U.S.$220,000 per year for the department.
91% of early adopters expect reduction in
annual server administration labor effort
88% of early adopters expect reduction in
U.S.$220,000
cost savings per year for
the IT department
annual network administration labor effort
For server and network administrators of these companies, the biggest identified benefits are
the ability to access integrated tools from one central location and the support for advanced
automation of common management tasks. Server Manager, which comes built into Windows
Server 2012, provides centralized and remote management capabilities allowing administrators
to control and monitor servers without logging in to individual consoles. Windows®
PowerShell™ provides automation of most management tasks via software-based policy
controls. When combined Microsoft System Center, administrators also benefit from a
sophisticated and integrated end-to-end management and monitoring platform. A Global
Infrastructure Manager of a U.S. based services company explains, “Centralized management
capability of Server Manager is very important for us. We don’t want to use servers as individual
desktops. The ability to manage all servers from a single pane of glass is a huge benefit for us.”
The centralized administration console further allows admins to simplify management tasks and
unify server and storage management into a singular interface. IT staff can provision servers,
storage, virtual desktops and hard drives, and remote
applications from a desktop without requiring
physical access or remote connections to each
individual server.
With new Microsoft Hyper-V® enhancements such as
NIC Teaming, Failover Cluster Manager, Extensible
Switch, Live Migration, and Storage Migration,
customers will be able to make more efficient use of
“Centralized management capability
of Server Manager is very important
for us. We don’t want to use servers as
individual desktops. The ability to
manage all servers from a single pane
of glass is a huge benefit for us.”
– Global Infrastructure Manager at a
large Services Company in the U.S.
2
“I would expect to save approximately 30% of time
managing the hypervisor platform. In reality we’ll
be able to do more with the same allocation of
time – be more proactive, perform more advanced
diagnostics and analysis for tuning, performance,
and capacity management activities.”
– Windows Server 2012 Deployment Team Member at
a Hosting Company based in the United Kingdom.
their time that is currently allocated for
admin activities. Says a Windows Server
2012 deployment team member from a
United Kingdom based hosting
company, “I would expect to save
approximately 30% of time managing
the hypervisor platform. In reality we’ll
be able to do more with the same
allocation of time – be more proactive,
perform more advanced diagnostics and analysis for tuning, performance, and capacity
management activities.”
Over 70% of Windows Server 2012 early adopters were large enterprises and hosting companies
with users or customers distributed across a multi-server and multi-site IT infrastructure.
Common challenges for these companies included lack of standard network management
processes and reliance on internally developed solutions and tools, such as spreadsheets for
tracking IP addresses and managing access policies. Manual processes and lack of accountability
led to hundreds of hours lost annually in data validation, ensuring that the information is up to
date, and in fixing errors related to duplicate or inaccurate information. For one such early
adopter, a major automotive company in Europe, the dealer and financial applications are
provisioned for different countries and customers. Currently, lack of automated processes leads
to extra effort in troubleshooting and managing their Web farms. However, the company
expects to reduce its admin labor costs by 20% once fully automated with Windows Server 2012
and Internet Information Services 8 (IIS8).
These early adopters expect to recover much of the administrative time lost in network, identity,
and access management tasks by using new Windows Server 2012 capabilities, such as IP
Address Management (IPAM), IIS8, and enhancements in Microsoft Active Directory® Domain
Services (AD DS) functionality. Windows
Server 2012 IPAM allows these
customers to easily provision, track
usage, view utilization statistics and
trends, and create reports related to
their day to day network management
activities. “We use an in-house solution
for tracking IP address usage. It is a
manual process, which assumes that all
administrators follow the rules. The
process is error prone and it can take
“We have applications that run for different
countries and customers and thus have a lot of Web
farms to troubleshoot and manage. Currently, all
certificates are managed centrally, but it is a
manual process which causes a lot of work. Our
goal is to get fully automated with Windows Server
2012 and IIS8. Automation of tasks will lead to
estimated 20% reduction in costs.”
– Windows Server 2012 Deployment Team Member at a
large Automotive Company in Europe.
3
“We use an in-house solution for tracking IP address usage. It
is a manual process, which assumes that all administrators
follow the rules. The process is error prone and it can take
considerable amount of time before updates are entered into
the tracking application. We expect that IPAM will replace our
current solution and save us at least half of the time that we
currently spend for managing IP addresses.”
– Windows Server 2012 Deployment Team Member at a large
Telecommunications Company in Europe.
considerable amount of time
before updates are entered
into the tracking application.
We expect that IPAM will
replace our current solution
and save us at least half of the
time that we currently spend
for managing IP addresses,”
says a Windows Server 2012
deployment team member at
a large European telecommunications company.
Hardware and Infrastructure Cost Savings
from Virtualization
Server Cost Savings
In keeping up with the advances in server
virtualization technology, many of the Windows
100% of early adopters
Server 2012 early adopters had already begun
expect improvement in
their journey towards complete virtualization of
virtualization density and
their IT workloads. All of the surveyed companies
private cloud tenant density
were either standardized on VMware or using
Hyper-V on older versions of Windows Server®. Depending on the workload and performance
needs, these customers were achieving a virtualization density of an average 27 virtual machines
(VMs) per host (based on a range from 8 to 90).
“With Windows Server 2012 we expect to achieve
a density of 32:1 [VM to Physical Core] for a 2 x
8 core CPU blade. Currently we can only expect
17 VMs per blade with Windows 2008 R2.”
– Windows Server 2012 Deployment Team Member
at a Hosting Company in theUnited Kingdom.
Windows Server 2012 Hyper-V provides
an enterprise level hypervisor that enables
organizations to consolidate and host
multiple, mixed workloads and a larger
number of VMs on their physical servers.
Windows Server 2012 Hyper-V provides
enhanced support for large workloads
with up to 64 virtual processors and 1TB of memory, allowing organizations to run powerful and
highly dense VM environments using fewer servers and operating system licenses. A Windows
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Server 2012 deployment team member from a United Kingdom based hosting company
explains, “With Windows Server 2012 we expect to achieve a density of 32:1 [VM to Physical
Core] for a 2 x 8 core CPU blade. Currently we can only expect 17 VMs per blade with Windows
2008 R2.” 100% of the companies evaluating the Hyper-V virtualization scenarios expected to
improve their workload density and hence their server footprint and related utility costs.
On average, these early adopters expected to raise their host virtualization density to
approximately 48 VMs per host – an increase of approximately 80% from their hypervisor
technology currently in use (based on a range from 20 to 125). Windows Server 2012 early
adopters viewed the ability to consolidate their VM workloads and the above Hyper-V
enhancements as an essential requirement that allowed them to control and cut their server and
IT costs. With virtualization, these companies expected a 44% reduction in their existing server
hardware – contributing to one-time savings on their future hardware needs, annual
maintenance cost savings, and hardware associated annual utility and real estate cost savings.
80% improvement in
workload density (VMs per host)
44% reduction in server
hardware and associated annual
utility and real estate costs
Storage and Network Cost Savings
The amount of data in enterprises is growing at a tremendous rate making storage efficiency a
critical requirement for IT departments. Windows Server 2012 brings cost efficiencies with new
storage capabilities such as Storage Spaces, Thin Provisioning, and Data De-duplication. These
features greatly increase disk space availability by ensuring that data is stored and accessed
efficiently, only storage needed at a given point in time is provisioned for use, and unused
storage is reclaimed. 86% of the early adopters evaluating storage management capabilities of
Windows Server 2012 expect to see a reduction in storage space utilization. Internet hosting
providers evaluating these scenarios expect a significant recovery – ranging 20% to 40% – in
their current storage space needs.
“Considering our future requirements, we
estimate [U.S.] $75,000 savings for server
shared SAS solution and 5TB Fibre Channel
SAN through use of commodity hardware.”
– Windows Administrator at a Leading U.S.
based University.
Windows Server 2012 also features
enhancements such as Failover Clustering,
Server Message Block version 3 (SMB3) , and
Remote Desktop Services (RDS) that allow
organizations to leverage their existing
commodity storage infrastructure and stem
demand for new and high-end SAN or block5
based storage hardware. With SMB
Direct, companies also expected cost
savings from using Network Interface
Cards (NIC) that support the Remote
Direct Memory Access (RDMA)
“We’re not scratching the surface of what
BranchCache can do. We will migrate from NetApp to
Windows Server 2012 and take it to the next level.”
– Windows Server 2012 Deployment Team Member from
a Public Education Institution in Canada.
protocol to achieve class performance
similar to fibre channel, which usually comes at a 10% or more cost premium. A Windows
Administrator from a U.S. based university says, “Considering our future requirements, we
estimate [U.S.] $75,000 savings for server shared SAS solution and 5TB Fibre Channel SAN
through use of commodity hardware.”
86% of early adopters expect improvement
20% - 40%
in storage space utilization
reduction in storage
100% of early adopters expect reduction in
space (data includes
network bandwidth utilization with BranchCache
hosting providers only)
With the continued consumerization of IT, organizations are increasingly asked to provide their
employees an “always-on” access to the corporate data and business applications from virtually
anywhere and on any device. 75% of the organizations that evaluated branch infrastructure
enhancements currently lacked any data caching capabilities. Each of these organizations
expected to see significant improvements in the Wide Area Network (WAN) traffic utilization
and also reduce their bandwidth costs via Windows Server 2012’s BranchCache® capabilities,
which allow them to cache the network content and make it available at their branch locations,
thus reducing WAN use. A Windows Server 2012 deployment team member of a Canadian
educational institution explains, “We’re not scratching the surface of what BranchCache can do.
We will migrate from NetApp to Windows Server 2012 and take it to the next level.”
Using Windows Server 2012’s DirectAccess features, remote users can now securely access
internal resources without connecting to a Virtual Private Network (VPN), thus allowing
organizations to save on VPN infrastructure costs. Although most of the organizations that
evaluated DirectAccess scenario did not see their VPN infrastructure eliminated immediately,
they did, however, expect to reduce
“As we transition more and more mobile workstation
their dependency on VPN
users to DirectAccess, we anticipate use of our
infrastructure over time by relying on
traditional VPN infrastructure by more than 3,500
DirectAccess instead. For example, a
Windows clients to decrease significantly.”
– Windows Server 2012 Deployment Team Member from a
Healthcare Organization in the US.
leading healthcare company in the
U.S. currently supports a large
number of disparate mobile
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workstations over VPN. With Windows Server 2012, the company has plans to transition its
mobile workstation users to DirectAccess instead of VPN, and thus significantly reduce reliance
on their traditional VPN infrastructure.
Software Cost Savings
Windows Server 2012 provides organizations
the key, built-in capabilities that are needed to
deploy and support multi-site and multi-tenant
private clouds, maintain continuous availability,
easily move virtual machines and virtual hard
disks (VHD) between remote sites, and manage
“With XenServer, the technical skills of our IT
team were not exposed and we had to rely a lot
on partners. Hyper-V is something we have a
better understanding of.”
– IT Manager at a leading retailer in Australia.
other core infrastructure services required to
run their IT environment. Currently, participants were either outsourcing their network and
storage management tasks or relying on third party software solutions. Says an IT Manager from
an Australian retailer, “With XenServer, the technical skills of our IT team were not exposed and
we had to rely a lot on partners. Hyper-V is something we have a better understanding of.” The
medium sized company with approximately 500 employees also expects a one-time cost
savings of more than U.S.$60,000 in third-party software products such as XenServer
and StorageCraft for VM replication. Similarly, a European hosting company expects to
realize U.S.$2,500 savings for each of its 500 servers by eliminating third party
replication software. Like these companies, several other early adopter companies that
were surveyed relied on disparate software solutions, which included:

XenServer, VMware vCenter, and manual procedures for VM provisioning;

CiscoWorks LAN Management Solution, SolarWinds, Secure CRT, and Hitachi network
management tools for managing the Ethernet switching infrastructure;

Symantec NetBackup, HP Data Protector, IBM Tivoli, and EMC Networker for storage and
backup management;

Microsoft SharePoint®, Microsoft Excel®, and legacy in-house applications for IP address
space management; and

Other third party tools for monitoring, policy, and patch management of the
virtualization environment.
These organizations expect significant cost savings from virtualization, which reduces the
number of servers and thus cuts down the number of licenses required to support the
hypervisor platform. For example, a global financial services company expects to save more than
U.S.$2.5 million by eliminating third party hypervisor platform licensing. Another Turkish IT
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services company is currently virtualized on a mix of server OS that includes both Linux and
Windows Server products. The customer expects to increase their virtualization density by as
much as 33% after migrating to Windows Server 2012 and achieve significant OS license cost
savings through increased density and licensing options.
“We are looking at Hyper-V as a
replacement for our VMware and NetApp
applications. This represents millions of
dollars in cost savings for us going
forward for all our companies.”
– Global Infrastructure Manager at a Large
Services Company in the U.S.
With Windows Server 2012 and System Center
software, organizations can leverage their current
network infrastructure without introducing new
routing and switching, data recovery,
management, and administration add-ons. Builtin NIC teaming capabilities of the OS works with
all network adapters and does not require any
additional third-party teaming solutions. The
Hyper-V Extensible Switch (vSwitch), a layer-2 virtual network switch, allows organizations to
emulate full capabilities of third-party hardware-based networking solutions. Windows Server
2012 also includes built-in support for IPAM, which allows discovering, monitoring, auditing, and
managing IP address space used in a network from one central location.
By eliminating the use of these add-on products, organizations expect to save significantly in
software licensing and maintenance costs. A Global Infrastructure Manager at a U.S. based
services company explains, “We are looking at Hyper-V as a replacement for our VMware and
NetApp applications. This represents millions of dollars in cost savings for us going forward for
all our companies.”
Business Benefits
In addition to the IT cost savings discussed above, Windows Server 2012 also provides certain
indirect benefits leading to more revenue generating opportunities for businesses.
System Availability
Besides serving as a foundation for virtualization solutions, such as Virtual Desktop
Infrastructure (VDI) and private cloud, Windows Server 2012 introduces continuous availability
solutions for server and storage at no added cost. More than 60% of the early adopters said that
they expected to reduce their planned and unplanned downtime after migrating to Windows
Server 2012.
With Windows Server 2012, availability is accommodated during planned downtime or
maintenance windows. Hyper-V Live Migration and Storage Migration allow organizations to
8
“We have zero planned downtime in VM and
VHD migration. A lot of in house
development was needed to create this
situation. I expect this in house development
is not needed with Hyper-V as Live Migration
is always in the Microsoft solution.”
– Windows Server 2012 Deployment Team
Member at a major Bank in Europe
move multiple running VMs and VHDs
between physical hosts or storage locations
with no downtime. With Online Corruption
Isolation and Repair, check and repair
activities on storage disks can be done while
the volume remains online, ensuring that the
services are continuously available to the
users. Cluster Aware Updating integrates with
existing Windows Update Agent and
Windows Server Update Services, and maintains availability during planned update activities.
Windows Server 2012 early adopters evaluating these features expected to reduce their annual
67% of early adopters expect reduction in annual planned system downtime
52% reduction in annual planned system downtime expected
planned system downtime by an average of 52%.
For a few others, although the companies did not directly benefit from downtime improvements,
they did, however, expect to reduce development and maintenance time required in managing
uptime using their existing solutions. A Windows Server 2012 deployment team member at a
global financial institution explains, “We have zero planned downtime in VM and VHD migration.
A lot of in house development was needed to create this situation. I expect this in house
development is not needed with Hyper-V as Live Migration is always in the Microsoft solution.”
Windows Server 2012 early adopter organizations also expect to lower their unplanned
downtime during failures via built-in continuous availability, replication, and disaster recovery
features such as NIC teaming, Failover Clustering, Hyper-V Replica, and new file share protocol
enhancements. File server availability is now improved via transparent failover capabilities that
make node outages transparent to dependent services. Thus, a workload running on an activeactive cluster remains available even when the particular cluster node running that service fails.
Companies evaluating these features expected to reduce their annual planned system downtime
by an average of 23%.
62% of early adopters expect reduction in annual unplanned system downtime
23% reduction in annual unplanned system downtime expected
9
“VM deployment currently requires a lot
of manual steps and about 30-45
minutes to provision each time. Using
Windows Server 2012 and System Center,
over the next few months we expect to
create automated processes to deploy
and move workloads around.”
– IT Manager at a leading Retailer in
Australia.
Also, by cloud optimizing their IT infrastructure,
organizations can now respond to new business
needs at a fraction of time it took them before.
Windows Server 2012 early adopters expect to
reduce their workload deployment time, thus
making their applications available quicker by an
average of 41%. This allows them to start taking
advantage of the revenue generating
opportunities enabled via these workloads sooner
than they could before.
67% of early adopters expect reduction in workload deployment time
41% reduction in workload deployment time expected
User Productivity
Windows Server 2012 enhancements are not only visible to the IT admins, but are also extended
to end-users in the form of productivity improvements. Windows Server 2012 supports the
modern, distributed workforce by giving users the full Windows experience and access to data
and applications from anywhere and on any device they choose. The few companies evaluating
remote access scenarios had almost 20% of their total employees mobile or remote. These
companies expect to benefit from Windows Server 2012’s ease of access features such as singlesign-on to VMs and Remote Apps, DirectAccess instead of connecting to VPN, and cached data
access at branch networks, which allow the remote and mobile users to authenticate, open, and
start working on their data much faster and reduce the unproductive time lost due to waiting.
91% of early adopters expect improvement in end-user productive hours
15 hours per employee per year recovered in end-user productive time
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With Remote Desktop Services, users can also disconnect and then reconnect to the RemoteApp
programs and VMs all at once, saving time to restore the work environment. User
personalization settings are saved across sessions. Backed by these enhancements, Windows
Server 2012 early adopters expect to see the end-user productivity improve by an average 15
hours per employee per year.
Conclusion
Windows Server 2012 allows organizations to consolidate their existing IT infrastructure and
optimize it for the future cloud services. The operating system allows for complete virtualization,
dynamic and faster provisioning of workloads that support business needs, and centralized
management of tasks. These capabilities bring about cost savings across administration and
management activities, hardware purchases and maintenance, energy and cooling requirements,
and software licenses. Moreover, improvements in system availability and end-user experience
allow businesses to make optimum use of their resources, serve their customers more efficiently,
and create faster and more revenue generating opportunities.
The phase one of this TCO study included early adopter organizations that were still evaluating
Windows Server 2012 features and aims to capture the percent of these companies experiencing
benefits from this new server operating system. Feedback from these early adopters shows that
Windows Server 2012 will indeed reduce costs and deliver business benefits that help these
organizations generate additional revenue. Phase two of the study aims to confirm and capture
the exact numbers and dollar amounts for the benefits identified in this TCO study.
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Appendix
About This Study
In early 2012, 51 participants from Windows Server 2012 Rapid Deployment Program were
surveyed, with a few augmented with phone interviews, to share their experiences and
expectations about the cost savings and indirect benefits from managing their assigned
workloads or scenarios on a day-to-day basis.
Interviewees represented companies across North America, EMEA, and Asia Pacific. These
companies, operating in different industry segments, ranged in size from less than 20 to more
than 150,000 employees. See Figure 1 below for an overview of all participating companies by
location and size.
30
25
Small (<250)
20
Medium (<500)
15
Large (<1000)
10
5
Enterprise (1000+)
0
Americas
APAC
EMEA
Figure 1: Distribution of Windows Server 2012 RDP participants by company size and region
Overall, all respondent companies were asked to evaluate a mix of scenarios that span different
Windows Server 2012 features. The different scenarios are as follows:


Beyond Virtualization:
o
Hyper-V Density and Scale
o
Cloud Optimized IT
o
Multi-site Private Cloud
Power of Many Servers, the Simplicity of One:
o
Efficiencies in Server and Storage Management
o
Flexible and Highly Available Storage Services
o
Address and Network Management
12
o


Identity and Access Management
The Modern Work Style:
o
The Branch Infrastructure
o
The Remote User
o
The Virtual Desktop
Every App – Any Cloud:
o
Internet Information Services (IIS) 8
More Information
For more information on Windows Server 2012, follow these links:

Windows Server 2012 Website

Windows Server 2012 Datasheet

Windows Server 2012 Detailed Product Overview Whitepaper
References
System Administrator - Server Salary (U.S. Average). PayScale.com. Web. 20 May 2012.
<http://www.payscale.com/research/US/Job=System_Administrator,_Server/Salary>.
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