1. Copyright © 2005 VMware, Inc. All rights reserved. Optimizing Blade Deployment with Virtual Infrastructure Eric Horschman Group Product Marketing Manager VMware, Inc. March 2005

2. 2 Copyright © 2005 VMware, Inc. All rights reserved. Agenda Virtual Infrastructure Overview Server Consolidation With Blades Deploying Blades with Virtual Infrastructure Customer Examples Summary and Q&A

3. Copyright © 2005 VMware, Inc. All rights reserved. Virtual Infrastructure Overview

4. 4 Copyright © 2005 VMware, Inc. All rights reserved. Infrastructure is what links resources to your business Virtual Infrastructure is a dynamic mapping of your resources to your business It is extremely flexible and simplifies management, so the organization can get resources on demand Decreased costs, increased efficiencies and responsiveness OS App OS App OS App OS App OS App Network EthernetFibre Channel Interconnect OS App OS App StorageCompute What is Virtual Infrastructure?

5. 5 Copyright © 2005 VMware, Inc. All rights reserved. Virtualization takes an application and its operating system and wraps them into a transportable virtual machine Virtual Machine The Foundation of Virtual Infrastructure Physical Machine Breaks hardware dependencies Multiple applications on a single system

6. 6 Copyright © 2005 VMware, Inc. All rights reserved. Hardware Application Operating System Virtual MachinePhysical Machine Virtualization takes an application and its operating system and wraps them into a transportable virtual machine Breaks hardware dependencies Multiple applications on a single system The Foundation of Virtual Infrastructure

7. 7 Copyright © 2005 VMware, Inc. All rights reserved. System without VMware Software System with VMware Software VMware software insulates the BIOS / Operating System / Applications from the physical hardware, so many systems can share hardware, or be moved to different hardware with no service interruption. Virtual Infrastructure Enables Server Consolidation

8. 8 Copyright © 2005 VMware, Inc. All rights reserved. Benefits: Partitioning, Isolation, and Encapsulation Run multiple operating systems on one physical machine Fully utilize server resources Shared data is cluster-ready for failover and redundancy Partitioning Fault and security isolation at the hardware level Control CPU, memory, disk and network resources per VM Guarantee service levels Isolation Entire state of the VM is encapsulated: memory, disk images, I/O state VM state can be saved to a file – checkpointing, aka “Suspend / Resume” Re-use or transfer whole VMs with a file copy Encapsulation

9. 9 Copyright © 2005 VMware, Inc. All rights reserved. VMware GSX Server - Hosted Architecture  Extend existing Host OS to support virtual machines in addition to applications Installs and runs like an application  Use Host OS services to implement virtual I/O devices Highly portable, easy to configure resources

10. 10 Copyright © 2005 VMware, Inc. All rights reserved. VMware ESX Server - Bare-Metal Architecture Runs directly on hardware Manages resource allocations Strong fault and security isolation Shared data cluster-ready Virtual SMP for large virtual machines and high performance

11. 11 Copyright © 2005 VMware, Inc. All rights reserved. Virtual Infrastructure Management VMware VirtualCenter Centralized management interface VM provisioning with templates Performance monitoring Secure access control SDK for automation VMotion™ Technology Dynamically move VMs No downtime or service interruption Zero-downtime hardware maintenance

12. 12 Copyright © 2005 VMware, Inc. All rights reserved. Instant Provisioning 1)Start Deployment Wizard 2)Choose Server Template 3)Select Server location 4)Click Next, Next, Done Takes under 10 minutes Speed of a file copy Hardware-independent Template based Fully leverages the SAN Automatic & standardized VirtualCenter Provisioning Process

13. 13 Copyright © 2005 VMware, Inc. All rights reserved. ESX Server 1ESX Server 2ESX Server 3 Continuous Workload Consolidation Dynamically manage workloads across blades, in response to an unexpected increase in SAP utilization Apache SAPExch Server Citrix DNS/DHCPOracle SQL Server

14. 14 Copyright © 2005 VMware, Inc. All rights reserved. ESX Server 1ESX Server 2ESX Server 3 Apache SAP Exch Server Citrix DNS/DHCPOracle SQL Server Dynamically manage workloads across blades, in response to an unexpected increase in SAP utilization Continuous Workload Consolidation

15. Copyright © 2005 VMware, Inc. All rights reserved. Server Consolidation With Blades Blades & VMware “The Perfect Match”

16. 16 Copyright © 2005 VMware, Inc. All rights reserved. Why Use Blades? Blade Servers Reduce Overall TCO Improve management of IT assets IT assets will be cheaper to acquire Density reduces operational costs Blades Provide a Flexible Computing Platform Dynamically provision IT resources Platform for server consolidation Market Acceptance IDC Research predicts blade server market share will grow to 23% of units shipped for x86–based servers in 2005 2-CPU is fastest-growing segment for VMware (~70% of all licenses sold)

17. 17 Copyright © 2005 VMware, Inc. All rights reserved. Blades Have Limitations Blade server cost efficiency declines sharply if its density potential is underutilized Local storage availability on blades is limited Blades offer few expansion slots Additional blade peripherals may reduce density Cost of deploying each additional blade chassis is a step function

18. Copyright © 2005 VMware, Inc. All rights reserved. Deploying Blades With Virtual Infrastructure

19. 19 Copyright © 2005 VMware, Inc. All rights reserved. VMware on Blades Blade servers without Virtual Infrastructure Blade servers with Virtual Infrastructure

20. 20 Copyright © 2005 VMware, Inc. All rights reserved. Virtualization for Scale Out vs. Scale Up Virtualization on scale-out Blade server fits best Virtualization on scale-up High-end server fits best Types or workloads File/ print, web servers Databases, ERP, CRM infrastructure Attached storage and Little attached storage Lots of attached storage I/O density low I/O density high I/O density Deployment Growth Dynamic Incremental Static size growth Factors restricting Floor space Number of physical units growth under management Availability tolerance N+1 design avoids Resiliency built into under management single point of failure single server

21. 21 Copyright © 2005 VMware, Inc. All rights reserved. Virtual Infrastructure + Blades Equals… A 100-300% increase in utilization Zero-downtime hardware maintenance Operational flexibility Instant provisioning and system management Rapid rollback and recovery Blade partitioning Central monitoring and reporting N+1 high availability at lower cost

22. 22 Copyright © 2005 VMware, Inc. All rights reserved. A Quick Comparison * * Assume blade ghosting/cloning is employed Platform1U Rack-Mount Servers Blade ServersBlade Server with Virtual Infrastructure Utilization5-15% 60-80% Operational CostsXX-25%X-85% Maintenance Downtime Requires 1-3 hour maintenance window Change management Requires 1-3 hour maintenance window Change management Zero downtime with VMotion Provisioning Time 3-10 days hardware procurement 1-4 hours provisioning new server 3-10 days hardware procurement 1 hour provisioning new server * Minutes using templates in VirtualCenter Moving applications to a new server 4-6 hours for migration Service interrupted for duration of maintenance window Change management 4-6 hours for migration Service interrupted for duration of maintenance window Change management 2-5 minutes using VMotion (no service interruption) 10 - 30 minutes w/out VMotion

23. 23 Copyright © 2005 VMware, Inc. All rights reserved. Comparing TCO with VMware on Blades Low-Specification Blade Server High-Specification Blade Server with Virtual Infrastructure Cost Savings # of Workloads3000 - # of Blades3000600(80%) # of Blade Chassis *37575(80%) # of Racks6313(79%) Estimated H/W costs$12M$6.5M(46%) VMware license costsN/A$1.8M0% 3-year cost of floor-space, cooling, power $8.5M$1.7M(80%) 3-year H/W, S/W maintenance costs $29.3M$16.7M**(43%) Total 3-year Costs$49.9M$24.9M(51%) * Assumes 8 blades per chassis ** Estimated VMware support/subscription costs over three years

24. Copyright © 2005 VMware, Inc. All rights reserved. Customer Examples

25. 25 Copyright © 2005 VMware, Inc. All rights reserved. Customer: Cellcom The Challenge Cellcom, the largest cellular company in Israel, needed a scalable IT infrastructure to keep up with business growth while lowering their TCO. The Virtualization Solution VMware ESX Server, VMware VirtualCenter and VMware VMotion on blade servers optimizes performance and cuts costs. 13:1 server consolidation Mainframe levels of reliability and data security at lower cost Blade server utilization increased from 5-15% to 35-50% Reduced hardware costs Better project quality with more rigorous testing on different operating systems “The VMotion technology lets us migrate a server from one hardware platform to another without any service interruption, allowing us to schedule maintenance of the hardware without notifying users or taking down the systems residing on the server.” David Barak System NT Expert Cellcom

26. 26 Copyright © 2005 VMware, Inc. All rights reserved. 30:1Qualcomm 20:1AIG Technology 15:1Applied Innovation 10:1National Gypsum 10:1Antares IT 10:17-Eleven 8:1State of Montana VMware Customer Consolidation Ratios Conseco Finance8:1

27. 27 Copyright © 2005 VMware, Inc. All rights reserved. Summary Blades are ideal for deploying virtual infrastructure. Virtual infrastructure increases blade utilization and scalability Virtualization allows partitioning of blades with mainframe-class resource management Virtualization on blades enables Server consolidation Faster server provisioning Low-cost business continuity solutions Software dev/test automation High density + high operational efficiency VMware Virtual Infrastructure Node bundles (ESX Server + Virtual SMP + VMotion + Virtual Center Agent) available with special blade pricing (43% off)

28. Copyright © 2005 VMware, Inc. All rights reserved. Thank you! Questions?