Israel Datacenter Trends and Strategies 2011 Gideon Lopez IDC Israel Michelle Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Agenda Changing datacenter landscape Changing technology landscape Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Lower Cost of Computing Per Unit of Work New Business Cycle for IT Convergence and Clouds Reign for the Next 10 Years Virtualization Mainframe/minicomputer Integrated architecture Transactional applications and Database Unix/RISC Modular architecture ERP, Analytics and Datamarts Integrated architecture Converged Infrastructure & Private Clouds Integrated architecture Web Business Value x86 Modular architecture Collaborative Application Development Public Clouds Microservers? Compute/Memory Boards? Modular architecture File/Print and Networking 1985 1990 1995 2000 2005 2010 2015 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Changing Realities in the Datacenter 3.0% Servers 6.7% Servers 11.9% Servers VM Density 9.8 VM Density 19.8 VM Density 13.6 Israel Server Installed Base (‘000) Thousands of Servers Virtualization Management Gap Source: IDC Israel, 2012

New Economic Model for the Datacenter Shifts to Automation Tools are a Requirement Customer Spending $M Spending in Israel on Servers, Power and Cooling, and Management/Administration (US$M) Source: IDC Israel, 2012

New Economic Model for the Datacenter Management Costs Shift to Virtualized Servers Customer Spending $M Spending in Israel on Servers, Power and Cooling, and Management/Administration (US$M) Source: IDC Israel, 2012

Impacts from Server Virtualization For Large VM environments or Private Cloud Adopters: Policy based automation tools a table stakes Converged set of infrastructure High memory footprints a solution for driving VM densities Refocus on Storage Efficiencies Data De-duplication Thin Provisioning Mobility/Virtualization Attitudes and Budgets will have to change Budget for more SW for automation tools across servers Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Virtualization Maturity Experience and Sophistication Payoff Pilot Consolidation Assured Computing Private Cloud Staff Skills Little or no expertise Hands on expertise; some formal training Formal training; certification desirable Certification required Technology & Tools Simple static partitions Simple Mobility: Manual & Off-hours Matched application pairs Portable Applications: Automated Failover CMDB Implemented Policy based automation; Service management; Lifecycle Mgmt; Self Service Delivery Financial Impact No substantial financial impact Measurable Hard Cost Savings: Consolidation Power/Real Estate Justified TCO savings: Business Continuity Variable costs recognized or charge back models established IT Process & Policies Skunk Works Ad hoc Partially Integrated; Partially Standardized Fully Integrated Fully Standardized Line of Business Hidden Revealed Transparent Engaged in Governance Process Application Usage Test Development Production: Non-critical Production: Business Critical Production: Service Profiles & Catalogs % of Customers 15% 55% 25% 5% Average VM Density 4 6 10 35 Experience 9-12 months 9 months - 2 years 1.5 - 3 years 3-5 years % Virtualized Servers <10% 50% 80% Phase Impact Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Top 10 Datacenter Efficiency Strategies 1. Right Size Supply to Demand 2. Drive Ongoing Improvements Virtualization Site Rationalization and Consolidation Operational Best Practices Automation Tools and Software Datacenter Redesign Application Rationalization Modular Datacenter Construction Lifecycle Management and Planning Rack-based Power and Cooling Retrofit Architectural and Technology Refresh Continuous Improvement Less interest in long term strategies; more emphasis on making incremental changes that drive new organizational behaviors and processes Understand how all these changes fit together for greatest payback Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Evolving Datacenter Construction: Modularity is the New Industry Standard Containerized Hybrid Brick and Mortar Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Datacenter Build-out & Provisioning Classes of Applications Matter The days of the monolithic datacenter are numbered Standard High Availability Database Network Datacenter Central Nervous System Power Water High-Density Blade Standard Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Israel Installed Server KWh by Datacenter Type, 2007-2013 Includes Power Consumed and Cooling Required Major Datacenter efficiency moves done in enterprise (inc. government & SP) Millions Source: IDC Israel, 2012

Datacenter Infrastructure (DCIM) Management Moving beyond Excel and Visio Discovery Protocol based discovery of Servers, Storage, Networking devices; Tie systems to applications and lines of business Inventory & Visualization Inventory of systems and Mapping of the datacenter facility and device locations to the rack level Monitoring Server utilization, CPU Memory Disk, Power draw Reporting Exception Reporting, Workflow Orders and Change Management Optimize & Predict Cycle systems on and off, move virtual machines, MAC orders, find orphaned systems, Tech refresh, Interdependencies and potential downtime, decommission Trend analysis and Capacity Planning, What ifs simulation Measure and Monitor Datacenter KPI’s Space Power Cooling Security Environmentals Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

DCIM Almost DCIM . . . But Not Quite Facilities CFD IT Other Facilities, CFD, IT and Other Sectors DCIM CFD Other Facilities IT Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Power and Cooling Trends: DCIM’s Role in the Datacenter Katie’s to cover Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Datacenter Infrastructure Management Forecast 2010-2015 Worldwide Packaged Software and Services DCIM Revenue Forecast ($M) CAGR 2010-2015 = 25.5% DCIM is a rapidly evolving market with a CAGR of over 25% The majority of revenue is from software with services representing 46% of revenues in 2010, decreasing to 30% by 2015 Cloud computing, increased deployment model competition, and availability concerns are drivers of DCIM in enterprise and service provider environments. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Essential Guidance Server virtualization is outpacing management & automation This often creates more drain than gain. Investing in virtualization management is not a luxury There is no one solution for datacenter design Business oriented analysis of different application groups – what needs to stay where and why Flexibility in design will allow more rapid adaptation of datacenter to business needs It’s all about management Datacenter Infrastructure Management is not another software solution, but the focal point through which IT infrastructure is aligned with business IT is but one element in these solutions and we are still some distance from fully integrated DCIM Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Thank You Gideon Lopez IDC Israel Country Manager glopez@idc.com 054-3171066