2011 VMware Inc.

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VMware ROI TCO Calculator:
Overview & Sample Analysis
2
Table of Contents
Calculator Overview
Sample analysis:
Server ROI/TCO analysis
Additional Resources
3
Savings with vCloud Suite Enterprise
CapEx OpEx Business Agility
Server HW Storage HW Networking
HW
Infrastructure
Admin
Productivity
Power &
Cooling
Rack Space
& Office
Space
Planned
Downtime
Unplanned
Downtime
Business
Downtime
CloudService
Provisioning
vFabric
Application
Director
$ $
vCloud
Automation
Center
$ $ $ $ $ $ $
vCloud
Director
$ $ $ $ $ $ $
Disaster
Recovery
Site
Recovery
Manager
1
$ $ $
Operations
Management,
Security &
Compliance
vCloud
Networking
& Security
$ $ $ $ $ $ $
vCenter
Operations
$ $ $ $ $ $ $
Server
Virtualization
vSphere &
vCenter
Server
$ $ $ $ $ $ $ $ $
Savings
Products
Capabilities &
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2
3
1
Excluding secondary site physical to virtual virtualization savings
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Methodology
There are two main outputs for this calculator:
Return on Investment
Equals Savings / Investment
where investment represents the sum of incremental investment
in transition from physical to virtual (new servers, shared storage,
VMware licenses, services and training, etc.)
Total Cost of Ownership
Inclusive of IT Administration and downtime costs
Total Cost
Before
minus
Total Cost
After
equals
Savings
5
Design & Scope
Design
We are striking a balance between simplicity and credibility
Cash basis: no depreciation, amortization, time value discounting
Default time horizon: 5 year analysis (customizable for 1-10 years)
Scope
ROI TCO Calculator is not meant to generate a definitive bill of goods
Our goal is to provide a credible understanding of cost and benefits
Users may need to engage additional resources (sales / finance) for transactions that
require more custom models
Too complex, and the
analysis becomes difficult
to explain and repeat
Too Simple and
customers will not find
outputs credible
Simplicity
Credibility
6
Return on Investment (ROI)
% return on investment required to transition to virtualized
infrastructure
1
Total Investment
CapEx
OpEx
Downtime
Total Savings
New Servers, Storage,
Network Switches
VMware License & Support
Services & Training
reference slide 3 for more detail
7
Total Cost of Ownership (TCO)
Costs associated with operation of datacenter
CapEx
Servers
Storage
Network Switches
OpEx
Power & Cooling
IT Administration Labor
Rack Space
Other
Planned Downtime
Unplanned Downtime
Business Downtime
8
Workflow: Server Virtualization
My Analysis
(create or open prior
analysis)
Start / Login
Server
Virtualization
1) Server
Configuration
2) Server
Consolidation
3) Product
Selection
4) Beyond Server
Consolidation
5) ROI
Define configurations of
physical servers, count of
workloads, and consolidation
ratio
Modules for 5 basic datacenter
elements: Server HW, Power &
Cooling, Storage, Networking,
Rack Space
Select/change edition of
vSphere/vCenter Server, and
define level of SnS, discounts,
input historical or ELA data
Based on edition of vSphere
selected, calculator provides
additional modules to review
benefits of advanced features
Summary of vSphere & vCenter
Server Investment, Savings,
ROI and estimated Payback
Period
Operations
Management
Network Security
Disaster
Recovery
Cloud Service
Provisioning

End / Analysis
Summary
(charts, tables, export)
Choose to configure and/or
include optional server
management products. The model
incorporates prior inputs to
determine ROI/TCO.
Server
Management
Select Package
1) vCloud Suite
2) vSphere w/OM
3) vSphere
9
Workflow: Desktop Virtualization
My Analysis
(create or open prior
analysis)
Start / Login
Desktop
Virtualization
1) Desktop
Configuration
2) Desktop
Virtualization
3) Product
Selection
4) Premier Edition
Advanced
Features
5) ROI
Define configurations of
physical servers, count of
workloads, and consolidation
ratio
Modules for 5 basic datacenter
elements: Server HW, Power &
Cooling, Storage, Networking,
Rack Space
Select edition of vSphere /
vCenter Server, and define
level of SnS, discounts, input
historical or ELA data
Based on edition of vSphere
selected, calculator provides
additional modules to review
benefits of advanced features
Summary of vSphere & vCenter
Server Investment, Savings,
ROI and estimated Payback
Period over 3 years and 5 years
End / Analysis
Summary
(charts, tables, export)
*Please Note:
Desktop Virtualization must be
selected during New Analysis
Creation
Users will not be able to add
Desktop Virtualization to an
existing Server Virtualization only
analysis later
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Module Elements
Example: Server Virtualization > Power & Cooling
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2
3
4
6
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Summary table, with key metrics,
updates as users make changes and
completes each module
Key assumptions for each module are
distilled and grouped together in
hidden assumptions tabclick to
unhide
Scenario A represents extension of
environment without benefit of
vSphere
Scenario B represents environment as
users transition workloads to
virtualized infrastructure
(A B) is the variance in Costs
calculated in two scenarios, and
represents savings for module
Each module has a text box at the
bottom to provide some context to
module analysis and or assumptions
Links along the bottom direct users to
additional resources
Go to Analysis Summary for
supporting charts and tables, including
Green Savings, and Cost per App
comparison to competing platforms.
Users will also find document export
functions here
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3
1
2
4
5
6
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Table of Contents
Calculator Overview
Sample analysis:
Server ROI/TCO analysis
Additional Resources
12
Server Consolidation
0) Select Region, Currency, Suite/Package, and Edition
Enter name for analysis then select
region and currency
Choose server and/or desktop
Virtualization
For server virtualization, select
package and edition
3
1
2
3
1
2
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Server Virtualization
4
1
2
Select starting year and number of
years to analyze. FYI for an analysis
that includes measuring the
effectiveness of a past virtualization
project you may set the start year prior
to the current year.
Define number of workloads and
configuration of host servers assuming
no virtualization (Year 0)
Define number of workloads and
configuration of host servers assuming
100% virtualized
Max Consolidation Ratio is a key part
of this analysis. Open assumptions
tab and adjust VMs per Core variable
to refine. There is also an option here
to change analysis to one based on
leased servers (avgprice per server
then represents the annual lease cost)
3
3
1
2
4
1) Server Configuration
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Server Virtualization
1
2
Number of workloads defined in
previous module is the starting number
in this module. Refine number of
workloads in Assumptions tab:
Change annual growth rate (linear)
For non-linear growth, locate switch
for manually adjust count of
workloads, change to yes, close
tab, and input values into module
By default, analysis assumes 100%
refresh based on average useful life
and average age assumptions. Define
a staggered refresh if necessary in
Assumptions tab:
Locate switch for manually adjust
count of servers retired, change to
yes, close tab, and input values
into module
By default, analysis assumes 100% of
workloads are migrated to virtualized
infrastructure in Year 1. Adjust %
virtualized to define a different
schedule for migration
3
1
2
2) Server Consolidation > Server Hardware (part 1)
3
15
Server Virtualization
1
2
Manually adjust count of workloads
By default, calculator assumes a
linear workload growth ratefirst
assumption at the top of
assumptions tab
For non-linear growth, locate switch
for manually adjust count of
workloads, change to yes, close
tab, and input values into module
Manually adjust count of host servers?
By default, calculator assumes a
constant consolidation ratio each
year, post-virtualization
To define a changing consolidation
ratio each year, change to yes,
close tab, and input values into
module
Manually adjust host servers retired?
By default and for simplicity,
calculator uses useful life and
average age assumptions to
determine 100% refresh of servers
To define a staggered refresh (eg.
1/3 of starting count of servers,
spread out over three years),
change to yes, close tab, and input
values into module
3
1
2
2) Server Consolidation > Server Hardware (part 2)
3
Caution: enabling all three functions adds
great deal of flexibility to customize analysis,
but calculator may not be able to guarantee
logic in module is correct under all scenarios.
Users will be required to review to ensure
changes lead to desired results.
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Server Virtualization
1
1
In addition to the GBs of data store,
this section also incorporates
additional hardware required for
different protocols of storage:
Fibre-Channel SAN requires server
HBAs and SAN Switches
iSCSI SAN requires server TOE
cards
NAS will not require additional HW
Financial impact of GBs of data store
are calculated toward the bottom of
each scenario
2
1
2
2) Server Consolidation > Server Storage (part 1)
1
17
Server Virtualization
1
Users can define the transition to and
increased shared storage
environment. Many of vSpheres
advanced features such as vMotion
and Distributed Resources Scheduler
are enabled by and require shared
storage. Depending on whether the
environment in this analysis starts with
no shared storage or already has
shared storage, the transition to a
virtualized infrastructure with 100%
shared storage, may require significant
investment in additional hardware (FC
SAN and iSCSI SAN). Two areas for
users to define if there will be shared
storage, and the degree of the
transition
Next, users can select applicable
shared storage protocols, and define
the mix (input box(es) for %s) to the
right
Important for users to specify the
average size of workloads in the
lower-left corner of assumptions tab.
Here too, users can choose to include
storage savings from Thin Provisioning
feature within vSphere (zero out if not
applicable, or leveraging at the storage
array level)
3
1
2
2) Server Consolidation > Server Storage (part 2)
1
2
2
3
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Server Virtualization
1
Cycling through each vSphere edition
in the list box, users will be able to see
which advanced features are included
below. They may also change the
package/edition selected when the
analysis was created.
1
3) Product Selection > vSphere edition selection (part 1)
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Server Virtualization
1
Select the level of Support &
Subscription and define number of
years
Define any applicable discounts
(standard discounts available for
government agencies and academic
institutions) for license and SnS
For Enterprise License Agreements
(ELAs), enable checkboxes above to
input contract amounts into input
boxes below.
For a $200,000 three year ELA,
enable checkboxes above Years 1
to 3, and input $200,000 into Year 1
Based on growth of workloads
defined in Server HW section,
calculator will then estimate
additional licenses and SnS required
for Years 4 and 5
To exclude calculator estimates for
Years 4 and 5, enable checkboxes
for those years--the default value for
input boxes once enabled is zero
1
3) Product Selection > vSphere edition selection (part 2)
1
2
2
3
2
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Server Virtualization
1
Unhide assumptions tab to
select/deselect and or adjust cost of
services and training through Planning
and Design
For annual services such as P2V
Acceleration and Health Checks, users
will be able to adjust cost per server to
derive total cost for each year with
input boxes in main module
If PSO credits are applicable, enabling
input boxes at the bottom of main
module will over-ride itemized costs
calculated above
1
3) Product Selection > vSphere edition selection (part 3)
2
2
3
2
3
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions regarding labor savings
from faster provisioning
Labor savings, calculated as the
difference between labor required with
and without vSphere virtualization, is
the first value calculated
Faster provisioning translates into a
reduction in end-user wait time. This
is the value of Business Agility.
Default assumption is that 40% of
reduction in time spent on provisioning
is returned to the business
1
4) Beyond Server Consolidation > Server Provisioning Labor
2
2
3
3
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions regarding downtime
savings from planned server
maintenance events
Planned Downtime savings, calculated
as the difference between downtime
required with and without vSphere
virtualization, is the value calculated
1
4) Beyond Server Consolidation > vMotion
2
2
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions regarding downtime
savings from planned storage array
maintenance events
Planned Downtime savings, calculated
as the difference between downtime
required with and without vSphere
virtualization, is the value calculated
1
4) Beyond Server Consolidation > Storage vMotion
2
2
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions regarding downtime
savings from unplanned events
High Availability does not require
any additional capital expenditures,
and helps to automatically restart
servers due to OS or HW failures
Downtime savings from virtualization
and High Availability are not always
positive due to consolidation ratios
when a virtualized host server fails,
it will bring down multiple workloads
which may not be completely offset
by ability to restart VMs faster
This downtime can be fully mitigated
with Fault Tolerance (FT) for
mission critical workloads, but
requires additional servers to host
live shadow VMs for failover
additional capital expenditures are
calculated when FT is enabled in
assumptions tab
Application downtime mitigated
translates into a reduction in end-user
wait time. This is the value of
Business Agility. Default assumption
is that 40% of reduction in downtime
savings is returned to the business
1
4) Beyond Server Consolidation > High Availability & Fault Tolerance
2
2
3
3
4
4
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions applicability of distributed
power management to further
consolidate inactive workloads and
power down excess servers during
nights and weekends
Incremental Power & Cooling savings
calculated here
1
4) Beyond Server Consolidation > Distributed Power Mgmt
2
2
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Server Virtualization
1
Unhide assumptions tab to adjust
assumptions regarding labor savings
from advanced management features
in vSphere
Labor savings, calculated as the
difference between labor required with
and without vSphere virtualization, is
the first value calculated
Faster administration translates into a
reduction in end-user wait time. This
is the value of Business Agility.
Default assumption is that 40% of
reduction in time spent on
administration is returned to the
business
1
4) Beyond Server Consolidation > Server Admin Labor (part 1)
2
2
3
3
27
Server Virtualization
1
The number of Workloads per FTE
Administrator, regardless of silo
(server, storage, network, application,
etc.), is the measure of administration
productivity here. Most VMware
customers have already virtualized a
portion of their datacenters, and can
readily speak to the difference
productivityinput values here.
For users who are new to
virtualization, we have surveyed
customers and VMwares own IT
Administrators, and have provided a
way to calculate incremental added
productivity from various advanced
management features available in
vSphere Enterprise+. Enter the
Existing unvirtualized metric in
section 1, and adjust values in section
2 to derive metric for New
virtualized.
Faster administration translates into a
reduction in end-user wait time. This
is the value of Business Agility.
Default assumption is that 40% of
reduction in time spent on
administration is returned to the
business
1
4) Beyond Server Consolidation > Server Admin Labor (part 2)
2
2
3
3
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Server Virtualization
1
The final module in Server
Virtualization provides details into the
ROI starting with required Investments
at the top. For VMware Software
License & Support in this example,
$129K of spend is required in Year 1.
Then depending on time horizon,
users can see additional spend
required for Years 2 and beyond, due
to workload growth defined in Server
Hardware module.
Users will find input boxes for Other
Investments not accounted for in the
calculator. Also, should there be any
sales tax considerations, tax rates can
be adjusted here.
Click on this button to bring up menu
of additional server virtualization
management products to add to
analysis.
vCenter Operations
Site Recovery Manager
Network Security
vCloudAutomation Center
App Director
vCloudDirector
1
5) ROI (part 1)
2
2
3
3
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Server Virtualization
1
Towards the bottom half of this
module, users will find detail on
Savings calculated
Users will also find input boxes for
Other Savings not accounted for in the
calculator
Finally, Investment and Savings
enable for the calculation of ROI as
well as Payback Period
1
5) ROI (part 2)
2
2
3
3
30
Server Virtualization
1
Analysis Summary provides additional
charts and tables to collect and
present results of all products
reviewed
Cumulative Investment, Savings &
ROI provides a view into results,
each year, over the analysis horizon
Distribution of Savings: a quick
snapshot of where users can expect
savings
Distribution of Investment: a quick
snapshot of where users will need to
invest
Total Cost of Ownership: compares
CapEx, OpEx, and Other (downtime,
tax, other user-defined costs)
expenses between a fully Physical
datacenter and one with the benefits
of Virtualization
Charts Data provides all back-up data
behind charts
1
Analysis Summary
2
2
31
Table of Contents
Calculator Overview
Sample analysis:
Server ROI/TCO analysis
Additional Resources
32
Additional Resources
ROI TCO Calculator Website: roitco.vmware.com
Frequently Asked Questions: FAQ document
Feedback & Questions: roitco.vmware.com/vmw/account/FeedbackQuestions