Virtualization:
Beyond Server Consolidation
Agenda
VMware, Product & Solutions
Adoption Trends
Road Ahead
VMware By the Numbers
Founded
2006 Revenue
Number of Employees
Number of VMware Infrastructure Customers
Number of Users
Number of Channel Partners
Number of VMware Certified Professionals
1998
$709 M
3,000+
20,000+
4+ million
3,000+
10,000+
What is Virtualization?
Without Virtualization
With Virtualization
VMware provides hardware
virtualization that presents a
complete x86 platform to the virtual
machine
Allows multiple applications to run in
isolation within virtual machines on
the same physical machine
Virtualization provides direct access
to the hardware resources to give
you much greater performance than
software emulation
Three Key Properties of Virtualization
Partitioning
• Run multiple operating systems
on one physical machine
• Fully utilize server resources
• Support high availability by
clustering virtual machines
Isolation
• Isolate faults and security at the
virtual-machine level
• Dynamically control CPU,
memory, disk and network
resources per virtual machine
• Guarantee service levels
Encapsulation
• Encapsulate the entire state
of the virtual machine in hardwareindependent files
• Save the virtual machine state as a
snapshot in time
• Re-use or transfer whole virtual
machines with a simple file copy
The Virtualization Market is Evolving Rapidly
3rd Generation
Virtual Infrastructure
2nd Generation
1st Generation
Server Consolidation
Server Partitioning
1998 - 2001
2002 - 2005
2006 +
Virtual Infrastructure

Hypervisor
•
Partition a single server reliably and securely
into multiple virtual machines
Virtual Infrastructure

Distributed
Virtualization

Hypervisor
•
Aggregate entire farms of systems, storage
and network into a shared IT service
•
Partition a single server reliably and securely
into multiple virtual machines
Virtual Infrastructure

Management &
Automation

Distributed
Virtualization

Hypervisor
•
Automate end-to-end IT processes
•
Aggregate entire farms of systems, storage
and network into a shared IT service
•
Partition a single server reliably and securely
into multiple virtual machines
The Virtual Infrastructure Stack Today

Infrastructure
Optimization
Business
Continuity
Desktop
Management
SW
Lifecycle
Management &
Automation

Distributed
Virtualization

Hypervisor
Resource Mgt
Availability
Mobility
The Virtual Infrastructure Stack Today

VI Management

Virtual
Infrastructure

Hypervisor
Infrastructure
Optimization
66% use
Virtual
Center
Resource Mgt
49% use DRS
Business
Continuity
55% use
VI3 for
BC/DR
Desktop
Evals at
Management
40% of
VMworld
attendees
Availability
> 48% use HA
> 52% use
VCB
SW
Lifecycle
>10K evals
Mobility
56% use
VMotion
> 87% of customers have deployed in production
> 43% of customers are standardizing on VMware Infrastructure
1st and 2nd Generation Drove Consolidation
BEFORE VMware
AFTER VMware
SAVINGS
Servers
HBAs
SAN Switches
1000
500
22
80
160
8
$5,816 M
$290 M
na
Network Switches
Power (kW)
Cooling (kW)
Real Estate (Sq ft)
Total Savings
84
407
509
2053
10
52
64
257
$296 M
$759 M
$949 M
$431 M
$8,541*
(per workload over 3 years)
Example: Utility Company
* Note: Savings include estimated cost of VMware licenses, Support and Subscription
…With Significant CAPEX & OPEX Gains…
Increased server utilization to nearly 80% percent
Production
DEV/TEST
Consolidated servers by a 12:1 ratio
SAN
Reduced datacenter space by a 20:1 ratio
Backup
Server
Virtualized 60% of x86 environment
Infrastructure / workloads doubled but staffing has
not increased in 2.5 years
Production VMs
DR - Site
Storage Reserve
Deployed new servers in hours rather than weeks
Standardizing their infrastructure on VMware
Backup
Server
Virtualization brings significant power and space savings
IT budgets are increasingly
consumed by data center
power and
BEFORE
AFTER
cooling costs
Qty
Power Rating
Type
Qty
Power Rating
PowerType
supplies
are constrained
in some
geographies
1 CPU
300
475 W
1 CPU
--
550 W
CPU
38 interruption
675 W
2 CPU
500
550
W and results2 in
Heat causes
servers
to fail
service
4 CPU
200
950 W
4 CPU
38
1150 W
Data centers
are
full and
new projects 8cannot
start due
to lack of
CPU
4
1900 W
8 CPU
-1600 W
space 200 racks or 4,700 sq ft approx
10 racks or 235 sq ft approx
$289,878 / year in power
$36,718 / year in power
$362,348 / year in cooling
$45,897 / year in cooling
For every 1 server that is removed from the datacenter,
approximately 11.4 tons of CO2 emissions are saved
The Value Proposition Has Broadened
Not just about server virtualization but
about virtualization as an architecture
The Virtual Mainframe
Capacity On-demand
Always on
Policy Based Automation
Aggregate and Virtualize
Mainframe-class infrastructure on commodity hardware
OS and hardware agnostic, Infrastructure-wide
…Delivering The Always On, On Demand Data Center
Automated Resource
Assurance
Dynamic Balancing
Continuous Optimization
+
Increased Availability
Automated
Across Applications
X
+
On Demand Capacity
Non-disruptive Scaling
Flexible, Reconfigurable
DR Before and After VMware Infrastructure (VI)
> Data protected with low RPO by storage replication
> System state is protected like data – low RPO
> System protected with tape – 24 hour RPO
> Recovery is a simple VM boot – low RTO
> Recovery has high RTO due to tape restore
> 100% reliable recovery – system state is tied to
unchanging virtual HW
> Unreliable recovery – system disk is tied to the source HW
DR at Praetorian
Primary Data Center
Virtual Infrastructure
Recovery Site
Replication
Virtual Infrastructure
30 miles
FC SAN
• RPO of 15 minutes and RTO of <4 hours
• Reduced TCO by 50%
• Saw ROI of 600% in 4 months
FC SAN
Agenda
VMware, Product & Solutions
Adoption Trends
Road Ahead
Server Virtualization Forecast: 2005 - 2010
12,000,000
1.4M VMs
7.9M VMs
CAGR = 40.6%
10,000,000
8,000,000
Virtualized
Physical Servers
6,000,000
Logical
Servers
4,000,000
2,000,000
0
2005
2006
2007
2008
2009
Source: IDC, Virtualization and Multicore Innovations Disrupt the WW Server Market, March 2007
2010
The Virtual Infrastructure Stack: What Matters

Management &
Automation
Selection Criteria
VMware
 3rd generation; more than 20,000 production
customers
Maturity
 2/3 of VMware customers run databases and
enterprise applications in virtual machines
Performance

Distributed
Virtualization
 Only virtual infrastructure suite with distributed
virtualization, management & automation
Management &
Automation
 Deployments with thousands of virtual
machines
Scalability

 65% of VMware customers run multiple OS
on the same server
Heterogeneous
OS Suppport
Hypervisor
0%
5%
10%
15%
20%
25%
Percentage of Users, N=151
30%
Widely used in Production Environments
Percentage of customers deploying following
Windows workloads in virtual machines
Infrastructure
Workloads
82%
Application
Servers
Databases
Enterprise
Applications
81%
72%
63%
>20,000 virtual Infrastructure
customers
87% in production
65% running different OS on the
same server
63% plan to virtualize more than
50% of their x86 infrastructure in
3 years
43% standardizing on virtual
infrastructure
Source: Comprehensive survey of VMware customers conducted in September 2006. N=2256 respondents
VMware Category Leadership
VMware Customers Deploying
VI as Standard
8%
0% 4% 1%
Test/
Dev Only
13%
Non - critical
Apps Only
Some
Production
Servers
85% of customers will exclusively
or strongly favor VMware for future
purchases
23%
Customer Commitment to VMware
Default
Server
Policy
26%
59%
Most
Production
Servers
20%
VMware exclusively
VMware favored
31%
Source: Comprehensive survey of VMware customers conducted in September 2006. Sample size 1846 respondent
Copyright © 2004 VMware, Inc. All rights reserved.
Agenda
VMware, Product & Solutions
Adoption Trends
Road Ahead
The Virtualized Data Center - Tomorrow
Massive Compute Supply Mandates Virtualization
High core count
Large memory
High speed converged I/O fabric
Future Hardware Minimizes Virtualization overhead
3rd generation hardware assist
Virtualization-aware ecosystem
X86 Continues Upstream
70 - 80% business compute needs
Compute nodes realized
Acceptance Across the Technology Stack
Applications
Management
Operating System
CPU
I/O Subsystem
Networking
Storage
Virtualization Economy: $B+ Value Creation
Global OEMs
4,000+ Distributors, Resellers, Consulting Partners
100+ Emerging Technology
400+ Virtual Appliance Vendors
Global ISV & Technology
Global System Integrators
Summary
Virtualization is mainstream today and the VMware
Infrastructure transforms the IT landscape
VMware Customers are achieving transformative benefits,
increased by the greater innovation brought by strong
ecosystem partners
VMware is the undisputed market leader, the only safe,
proven choice
Thanks!!!
Matteo Uva
Channel Manager Italy and Greece
June 12th 2007