Microsoft Private Cloud
Financial Assessment Report
Prepared for:
Corvosa International
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Revision History
Date
Revision
Name
Description
06/11/2013
1.0
Michael Burke
Initial document
Contributors
Name
Role
Contact
Michael Burke
Primary Author
mburke@vdx.com
Proprietary Notice
Copyright © 2013, VDX, Inc., All rights reserved.
The information in this document is confidential to Corvosa International (“the Company”). It may not be reproduced in whole,
or in part, nor may any of the information contained therein be disclosed without the prior consent of the directors of the
Company. A recipient may not solicit, directly or indirectly (whether through an agent or otherwise) the participation of
another institution or person without the prior approval of the directors of the Company.
No representation, warranty or undertaking, expressed or implied is or will be made or given and no responsibility or liability is
or will be accepted by the Company or by any of its directors, employees or advisors in relation to the accuracy or completeness
of this document or any other written or oral information made available in connection with the Company.
This document contains confidential proprietary information and trade secrets of the Company. Any form of reproduction,
dissemination, copying, disclosure, modification, distribution and or publication of this material is strictly prohibited. The
information contained in this document is subject to change without notice.
Updated: 2/8/2016
CONFIDENTIAL
Page 2
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Table of Contents
1.
Executive Overview ............................................................................................................................... 5
2.
Environment Overview ......................................................................................................................... 6
3.
4.
5.
2.1
VMware vCloud Licensing ............................................................................................................. 6
2.2
VMware vSphere vs. Microsoft Private Cloud .............................................................................. 7
2.3
VMware vCloud vs. Microsoft Private Cloud Comparison ............................................................ 8
Cost Analyses ........................................................................................................................................ 9
3.1
Licensing Hyper-V and System Center .......................................................................................... 9
3.2
Total Spend, VMware and Microsoft, Year 1 .............................................................................. 10
3.3
VMware vs. Hyper-V Costs, Three Year Growth ......................................................................... 12
Services and Training Costs ................................................................................................................. 14
4.1
Hyper-V Jumpstart Training ........................................................................................................ 14
4.2
Microsoft Private Cloud Plan and Design.................................................................................... 14
4.3
Microsoft Private Cloud Implementation ................................................................................... 14
Conclusion ........................................................................................................................................... 16
5.1
6.
Appendix A: Hyper-V to VMware Capabilties ..................................................................................... 17
6.1
7.
Ongoing Maintenance Spend...................................................................................................... 16
What Gartner Says About Hyper-V ............................................................................................. 18
References .......................................................................................................................................... 20
Table of References
Tables
Table 2-1, Corvosa International VMware vCloud Licensing ........................................................................ 6
Table 2-2, Per CPU Investment, VMware vCloud 5....................................................................................... 6
Table 2-3, Corvosa International Infrastructure ........................................................................................... 6
Table 2-4, VMware vCloud vs. Microsoft Private Cloud capabilities ............................................................ 8
Table 3-1, Per CPU cost, Hyper-V with System Center 2012 ...................................................................... 10
Table 3-2, VMware vs. Hyper-V Costs, Initial Investment 1st Year.............................................................. 10
Table 3-3, VMware vs. Hyper-V Costs, Three Year Growth ........................................................................ 12
Table 3-4, VMware vs. Microsoft Maintenance Costs Only, 3 Year Growth .............................................. 13
Updated: 2/8/2016
CONFIDENTIAL
Page 3
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Figures
Figure 1-1, Total spend over 3 years ............................................................................................................. 5
Figure 2-1, VMware vSphere vs. Hyper-V 2012 capabilities ......................................................................... 7
Figure 3-1, VMware vs. Microsoft Costs, Total Spend 1st Year ................................................................... 10
Figure 3-2, VMware vs. Hyper-V Costs, Three Year Growth ....................................................................... 12
Figure 3-3, VMware vs. Microsoft Maintenance Costs Only, 3 Year Growth ............................................. 13
Figure 5-1, VMware vs. Hyper-V Maintenance Costs Only, 3 Year Growth................................................ 16
Figure 6-1, Gartner’s Magic Quadrant places Microsoft in the same category as VMware....................... 19
Updated: 2/8/2016
CONFIDENTIAL
Page 4
Corvosa International
Microsoft Private Cloud Financial Assessment Report
1. Executive Overview
This document represents the Microsoft Private Cloud/Hyper-V cost analysis based on the existing
licensing details of the VMware vCloud environment in place at Corvosa International today. Microsoft
Hyper-V represents a significant value in the enterprise, having the ability to perform almost all
mainstream virtualization duties employed by organizations leveraging VMware vSphere.
Virtualization has provided a benefit to IT through server consolidation and now organizations are trying
to determine the next steps in the virtualization journey. Microsoft believes that next step is
developing a Private Cloud to drive more efficiency and automation within the IT organization. Through
Hyper-V and System Center 2012, Microsoft offers the flexibility of deploying a Private Cloud on your
existing infrastructure.
Through the analysis in the following pages, Corvosa International will see that Microsoft’s Private Cloud
solution represents a significant cost reduction over VMware vCloud, both now and as Corvosa
International continues to grow the environment and expand virtualization capacity. Some highlights
include:



Microsoft Private Cloud represents just 54% of the initial costs of VMware
VMware represents a 185% increase in cost over the same capacity Microsoft Private Cloud
infrastructure
Hyper-V costs for initial investment and three years of SA are 79% of just the VMware
maintenance costs alone
Figure 1-1, Total spend over 3 years
Updated: 2/8/2016
CONFIDENTIAL
Page 5
Corvosa International
Microsoft Private Cloud Financial Assessment Report
2. Environment Overview
Corvosa International has several clusters the perform infrastructure virtualization. Currently, the
environment consists of multiple clusters across several datacenters in Leverkusen, Germany,
Pittsburgh, PA, and Singapore. The total capacity across all systems encompasses approximately 365
hosts running VMware ESX using primarily VMware vSphere Enterprise Plus licensing, with some vCloud
Advanced Edition licensing.
2.1 VMware vCloud Licensing
Corvosa International owns the following licensing for VMware vCloud for the virtual infrastructure
platform:
Product
Total Purchased
VMware vSphere Enterprise Plus with VCOPS
1460 CPUs
VMware vCenter Management Server
11 Servers
VMware vCloud Advanced
20 CPUs
Table 2-1, Corvosa International VMware vCloud Licensing
VMware licensing costs below are estimated based on an industry-common discount of 45% off list
price; actual Corvosa International costs were not available.
License Level
Per CPU Cost
Annual SnS per CPU
VMware vSphere Enterprise Plus with VCOPS
$2,334.75
$583.69
VMware vCenter Management Server
$2,199.45
$549.86
VMware vCloud Advanced
$4,122.25
$1,030.56
Table 2-2, Per CPU Investment, VMware vCloud 5
Corvosa International has a total of 1460 CPUs across all datacenters; the specifications are detailed in
Table 2-3.
Licenses
Type
Hosts
CPU Sockets
Sockets/Host
Total Cores
Memory (GB)
Pittsburgh
Singapore
Leverkusen
Totals:
vCloud
vSphere 5 Enterprise Plus with VCOPS
vSphere 5 Enterprise Plus with VCOPS
vSphere 5 Enterprise Plus with VCOPS
115
28
222
365
20
460
112
888
1,460
80
4
4
4
4,600
1,120
8,880
14,600
800
29,440
7,168
56,832
93,440
5,120
vCloud Suite Advanced
4
Table 2-3, Corvosa International Infrastructure
Updated: 2/8/2016
CONFIDENTIAL
Page 6
Corvosa International
Microsoft Private Cloud Financial Assessment Report
2.2 VMware vSphere vs. Microsoft Private Cloud
The following diagram shows the differences in the Microsoft solution vs. VMware vSphere 5.1.
Windows Server 2012 Hyper-V represents significant advances over VMware vSphere in capacity and
capability. Many features that are standard in Hyper-V require additional software purchases from
VMware, such as Site Recovery Manager (SRM), advanced monitoring, etc.
Figure 2-1, VMware vSphere vs. Hyper-V 2012 capabilities
Updated: 2/8/2016
CONFIDENTIAL
Page 7
Corvosa International
Microsoft Private Cloud Financial Assessment Report
2.3 VMware vCloud vs. Microsoft Private Cloud Comparison
The following table shows the capability comparison of the VMware vCloud solution vs. the Microsoft
Private Cloud solution. Corvosa International currently licenses the VMware vSphere Enterprise Plus
and VMware vCloud Advanced licensing. Microsoft Hyper-V and System Center 2012 offer all of the
capabilities of the VMware vCloud Enterprise suite.
vCloud Suite
Standard
Cloud Management
vCloud Automation Center
 Provisioning and management of IT services in
vSphere environments
vFabric Application Director
 Automated configuration and deployment of
multi-tier cloud applications
vCenter Operations Management Suite
 Application Monitoring – OS, middleware,
databases
 Storage Adapters for EMC Symmetrix and
Netapp
 VM Configuration Compliance – OS-level
change, patch and configuration
 Host Configuration Compliance –host change
and configuration
 Performance & Capacity Optimization –
analytics, dashboards and alerting
 Application Awareness – discovery dependency
mapping
 Chargeback – metered utilization reporting and
accountability
Cloud Infrastructure
vCenter Site Recovery Manager
 Automated disaster recovery planning, testing,
and execution
vCloud Networking and Security
 Advanced continuous availability, firewall and
network
 Software defined networking, security, and
ecosystem integration
vCloud Director & vCloud Connector Advanced
Edition
 Virtualized datacenters with multi-tenancy and
public cloud extensibility
vSphere
 Virtualized infrastructure with policy-based
automation
vCloud Suite
Advanced
vCloud Suite
Enterprise
Hyper-V &
System Center























1















Table 2-4, VMware vCloud vs. Microsoft Private Cloud capabilities
1
Requires some custom workflows in System Center 2012 Orchestrator, depending on necessary actions
Updated: 2/8/2016
CONFIDENTIAL
Page 8
Corvosa International
Microsoft Private Cloud Financial Assessment Report
3. Cost Analyses
The following analyses present different comparisons of cost for VMware vs. Microsoft in the Corvosa
International organization using the actual environmental factors, coupled with actual costs for Hyper-V
and System Center licensing. Corvosa International actual VMware vCloud licensing costs were not
available at the time this analysis was performed, so retail prices were used for the comparisons. The
VMware costs used are listed in Table 2-2.
3.1 Licensing Hyper-V and System Center
All Windows Server 2012 editions all include the Hyper-V role. When licensing Hyper-V, Microsoft
includes virtualization rights with each Windows Server Edition; each edition includes a number of
virtual machine Server licenses in each OS license purchased. The additions and the guest virtualization
rights are as follows:
Windows Edition
Standard Edition (2-CPU)
Datacenter Edition (2-CPU)
OS Licenses Included
1 host, plus 2 guests
1 host, plus unlimited guests
Because Windows Server licenses are required for the guests, the first Windows guest licensed on a
Hyper-V host includes the cost of the host OS license. The virtualization licensing rights are applicable to
both VMware and Hyper-V implementations, so clients with a licensed Windows Server deployment on
Windows is, by nature, already licensed for Hyper-V.
The System Center 2012 Management is available in both Standard and Datacenter editions, and the
guest licensing rights mirror the Windows Edition virtualization rights above; System Center 2012
Standard provides 2 guest VM management licenses and System Center 2012 Datacenter provides
unlimited guest VM management licenses. System Center 2012 includes the following components:








System Center 2012 Virtual Machine Manager
System Center 2012 Operations Manager
System Center 2012 Data Protection Manager
System Center 2012 Configuration Manager
System Center 2012 Service Manager
System Center 2012 Orchestrator
System Center 2012 App Controller (self-service portal)
System Center End Point Protection
In addition to the above, all SQL Server licensing needed to support all System Center 2012 components
is included, so no additional SQL Server licensing is required.
Because of the virtualization rights associated with Windows Server and System Center 2012, the costs
for Hyper-V below are based on System Center 2012 Datacenter licensing.
Updated: 2/8/2016
CONFIDENTIAL
Page 9
Corvosa International
Microsoft Private Cloud Financial Assessment Report
License Level
Per CPU Cost
Annual SA per CPU
$1803.502
$245.823
$0
$0
System Center 2012 Datacenter
Hyper-V per Host Cost4
Table 3-1, Per CPU cost, Hyper-V with System Center 2012
3.2 Total Spend, VMware and Microsoft, Year 1
This cost comparison looks at the comparable initial infrastructure licensing costs for VMware vs.
Microsoft. Costs include the initial vCloud licensing costs in place today for the 1460-sockets of VMware
vSphere and the 80 sockets of vCloud Advanced, including 1 year of Service and Support (SnS),
compared to the costs of Hyper-V/System Center 2012 for the same 1540-sockets; the first two years of
Software Assurance (SA) is included in the licensing.
These cost factors do not take into account the fact that Corvosa International has already purchased
the VMware licensing; this comparison views the cost factors of the initial platform, as if neither were
yet in place.
Vendor
Infrastructure Costs
SnS/SA
Total
Notes
VMware
$3,762,708.95
$940,677.24
$4,703,386.19
Initial cost for VMware, plus 1st year SnS
Hyper-V
$2,797,228.50
$0.00
$2,797,228.50
Initial cost for Hyper-V, 1st 2 years SA included
Table 3-2, VMware vs. Hyper-V Costs, Initial Investment 1st Year
Figure 3-1, VMware vs. Microsoft Costs, Total Spend 1st Year
2
Includes the first year of Software Assurance (SA)
3
Cost based on Open Licensing, level A pricing
4
Hyper-V is part of the Windows Operating System and is included in the cost of the first Windows Server 2012 VM licensed on the host.
Updated: 2/8/2016
CONFIDENTIAL
Page 10
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Key Points:


The Microsoft solution represents just 59% of the initial costs of VMware vCloud
VMware represents a 168% increase in cost over the same capacity Microsoft Private Cloud
Updated: 2/8/2016
CONFIDENTIAL
Page 11
Corvosa International
Microsoft Private Cloud Financial Assessment Report
3.3 VMware vs. Hyper-V Costs, Three Year Growth
This comparison shows the costs of maintaining the VMware infrastructure for 3 years, with a 10%
increase in capacity per year. Each year, the associated infrastructure costs are added, as well as the
cumulative maintenance for the existing VMware hosts and the newly added systems. This is contrasted
to the costs of implementing a new Microsoft Private Cloud environment of the same initial capacity,
and then maintaining that environment with the same 3 year growth pattern. This analysis represents
the most realistic cost comparison, with the existing VMware environment’s initial investment
considered, and shows and continued savings as the environment grows on Hyper-V.
For the comparison, the VMware environment remains at 1540 CPUs for the first year, and adds 154
CPUs per year for two years. The Hyper-V environment includes the cost for first year purchase of 1540
CPUs of System Center 2012, and then adds 154 CPUs per year for two years.
Year 1
Vendor
Infra.
Year 1
SnS/SA
Year 3
Total
Infra.
SnS/SA
Infra.
SnS/SA
Infra.
SnS/SA
Total
VMware
$0
$940,677
$376,270
$1,034,744
$752,542
$1,128,813
$1,128,813
$3,104,235
$4,233,048
Hyper-V
$2,797,229
$0
$279,723
$38,127
$559,446
$457,520
$3,636,397
$495,647
$4,132,044
Table 3-3, VMware vs. Hyper-V Costs, Three Year Growth
Figure 3-2, VMware vs. Hyper-V Costs, Three Year Growth
The following graph details the costs associated with only the ongoing maintenance spend for VMware
vs. Microsoft, basing this information on implementing the same-size 1540-CPU Hyper-V Private Cloud
environment.
Updated: 2/8/2016
CONFIDENTIAL
Page 12
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Vendor
Year 1
Year 2
Year 3
Total
VMware
$940,677
$1,034,745
$1,128,813
$3,104,235
Hyper-V
$0
$38,127
$457,520
$495,647
Table 3-4, VMware vs. Microsoft Maintenance Costs Only, 3 Year Growth
Figure 3-3, VMware vs. Microsoft Maintenance Costs Only, 3 Year Growth
Key Points:


Hyper-V costs for initial investment and maintaining that environment with 10% growth per year
is 98% of the costs of maintaining and growing the existing VMware environment for three
years.
The costs for growing and maintaining the VMware environment for three years represents a
686% cost increase over maintaining the same size Microsoft environment and growth for three
years.
Updated: 2/8/2016
CONFIDENTIAL
Page 13
Corvosa International
Microsoft Private Cloud Financial Assessment Report
4. Services and Training Costs
While the cost of the VMware licensing is one factor, additional cost factors related to bringing new
technology like Hyper-V and System Center into Corvosa International has cost factors associated. The
cost to bring internal IT personnel up to speed on new technology and to design and implement the
environment must be considered as well. As part of the cost analysis, the following professional
services5 are included in the final justification summary.
4.1 Hyper-V Jumpstart Training
This training program is custom designed to rapidly bring technical expertise up to speed on Hyper-V
and key System Center technologies, including Virtual Machine Manager, Operations Manager and
Orchestrator. This training is conducted on Corvosa International premises and will allow the Corvosa
International team to quickly correlate key concepts and knowledge to their understanding of VMware
vSphere. The training is conducted by individuals that have a deep understanding of both VMware and
Hyper-V to bring real world expertise and objectivity to the subject matter.
Duration
5 Days
Corvosa International Personnel Commitment
100%
4.2 Microsoft Private Cloud Plan and Design
This service provides a multi-phase approach to quickly designing the Microsoft Private Cloud
environment to align with the requirements and design considerations of the existing VMware vCloud
platform. As knowledge transfer takes place in the Jumpstart Training, requirements are discovered and
design criteria is aligned to produce the Microsoft Private Cloud blueprint and migration plan.
Duration
30 Days
Corvosa International Personnel Commitment
40%
4.3 Microsoft Private Cloud Implementation
The Microsoft Private Cloud implementation phase will install and configure the Hyper-V and System
Center 2012 environment consisting of a several 16-node clusters. Implementation will include Hyper-V
clusters and hosts matching Corvosa International environment and capacity in this analysis, and
implementing System Center 2012 Virtual Machine Manager to manage the environment. Additional
System Center products implemented at Corvosa International would also be integrated into this
environment for full System Center 2012 management functionality.
5
Professional services costs and scope is subject to a formal statement or work; costs for professional services are for budgeting purposes only.
It does not include staff augmentation to migrate existing workloads from VMware to Hyper-V.
Updated: 2/8/2016
CONFIDENTIAL
Page 14
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Duration
30 Days
Corvosa International Personnel Commitment
25%
Estimated Services Cost
Updated: 2/8/2016
$188,600
CONFIDENTIAL
Page 15
Corvosa International
Microsoft Private Cloud Financial Assessment Report
5. Conclusion
Hyper-V and System Center 2012 represent a significant savings over maintaining the existing VMware
environment. Corvosa International has made an existing investment in both the VMware vCloud
platform and VMware vSphere, as shown below:
VMware vSphere Licensing spend to date:
$4,703,386
5.1 Ongoing Maintenance Spend
Maintenance and support represents the ongoing costs for both VMware and Microsoft. The Microsoft
Hyper-V/System Center solution represents a 6x reduction in ongoing maintenance costs, saving
Corvosa International over $2,600,000 over 3 years with an estimated 10% growth each year.
Figure 5-1, VMware vs. Hyper-V Maintenance Costs Only, 3 Year Growth
Based on these findings, Corvosa International should consider deploying Hyper-V and System Center to
offset or augment VMware vSphere in the environment today.
Updated: 2/8/2016
CONFIDENTIAL
Page 16
Corvosa International
Microsoft Private Cloud Financial Assessment Report
6. Appendix A: Hyper-V to VMware Capabilties
VMware has had significantly more time in the marketplace and the feature set is indeed rich. However,
Hyper-V has accelerated their feature set over the past few years to the point where core required
features is practically in lock step. Microsoft has had the benefit of having a feature roadmap paved by
VMware, but the acceleration of features to market has clearly caught up in a relatively short amount of
time. Core features of virtualized infrastructure in general include the following:








Ability to recover workloads automatically from a failed host
Seamless movement of VMs from one host to another
Ability to guarantee and prioritize resources to workloads
Support for full snapshot capabilities, including multiple, disjointed snapshots
Support for 802.1Q VLAN tagging, including multiple VLANs per virtual switch
Ability to centrally manage hosts and host clusters from a single console
Ability to perform maintenance to hypervisor hosts with no downtime to virtual machine
workloads
Ability to oversubscribe resources in a hypervisor host
These features are fully realized in both VMware vSphere and Hyper-V and represent the most common
required functionality of organizations that are consolidating on virtual infrastructure. Other features
from VMware, while interesting, do not represent a significant impact on the viability of Hyper-V to an
organization.
Feature
VMware vSphere
Enterprise Plus
Hyper-V with
System Center
64
64
2 TB
4 TB
(Disk, CPU, Memory, NIC)
(Disk only)
Support for multiple CPUs per VM
Usable RAM per hypervisor host
Ability to recover workloads automatically from a
failed host
Thin Provisioning of VM disks
Seamless movement of VMs from one host to
another with no downtime
Hot Add Virtual Devices to VMs
Network virtualization with VLAN isolation
Storage Migration
Automatic load balancing of VMs in cluster
Ability to guarantee and prioritize resources to
workloads
Updated: 2/8/2016
CONFIDENTIAL
Page 17
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Feature
VMware vSphere
Enterprise Plus
Hyper-V with
System Center
(vStorage API only)
(Data Protection Manager)
Support for VM snapshots, including multiple,
disjointed snapshots
Support for 802.1Q VLAN tagging, including multiple
VLANs per virtual switch
Ability to centrally manage hosts and host clusters
from a single console
Ability to perform maintenance to hypervisor hosts
with no downtime to virtual machine workloads
Ability to oversubscribe resources in a hypervisor
host
Host Automatic Power Management
Centrally managed virtual switches
Host Profiles (configuration baseline, audit and
remediation)
Support for SAN Multipath
Integrated host and VM backup
Centralized Patching of VMs and Templates
6.1 What Gartner Says About Hyper-V
In June of 2011, Gartner updated its “Magic Quadrant” of virtualization platforms to include both Citrix
and Microsoft in the category of “Virtualization Leaders”, recognizing the growth of Hyper-V over the
past year. Gartner’s Magic Quadrant evaluates vendors on their products and services, overall viability,
sales and marketing execution and other areas. While VMware ranked the highest, Microsoft scored
high enough to rank them as leaders in the industry.
Updated: 2/8/2016
CONFIDENTIAL
Page 18
Corvosa International
Microsoft Private Cloud Financial Assessment Report
Figure 6-1, Gartner’s Magic Quadrant places Microsoft in the same category as VMware
Gartner stated in the press release: “At the hypervisor and basic administration level, Microsoft has
closed most of its technology gaps with market leader VMware (which tends to have an advantage with
higher-level management and automation tools)”. Further details on the Gartner “Magic Quadrant” can
be found at their web site:
http://www.gartner.com/technology/reprints.do?id=1-1GJA88J&ct=130628&st=sb
Updated: 2/8/2016
CONFIDENTIAL
Page 19
Corvosa International
Microsoft Private Cloud Financial Assessment Report
7. References
The following documents or outside content is relevant to this document:
Gartner Magic Quadrant Report (2013)
http://www.gartner.com/technology/reprints.do?id=1-1GJA88J&ct=130628&st=sb
Updated: 2/8/2016
CONFIDENTIAL
Page 20