ROI_Calculator by xiagong0815

VIEWS: 3 PAGES: 19

									                                                                                  VMware Business Case: Instructions




                                                VMware TCO and ROI Model (VI3)


Background:
  This model compares the cost of a server refresh with the cost of implementing VMware software to consolidate servers.
  It is not intended to be a complete model that completely describes all costs for a specific customer scenario, but rather an outline
  to help understand the cost implications of imlementing VMware software.
  It looks at only the hard costs, i.e. the costs of hardware, software, network and storage infrastructure, services, and training.
  It does not attempt to compare the operational costs of the two scenarios.

Instructions:
How to use the model:
  1. Answer the required questions on the "Questionnaire" tab. Explanations can be found to the right of the questions.
  2. If desired, review/update the default values for the "Optional Questions" on the "Questionnaire" tab.
  3. View the summary of the resulting model on the "TCO Model Summary" tab.
  4. If desired, the details of the model can be viewed on the "TCO Model" tab. Modifications to the model structure need to be done here.

Assumptions Built into Model:
  - Assumes that all physical servers enumerated in the questionnaire can and will be virtualized.
  - Assumes that all workloads in current environment require only 1 CPU of processing power.
  - Assumes that all ESX Server physical servers are the same type and model.
  - Assumes that no servers are reused or repurposed for ESX Server hosts.
                                                   VMware Business Case: Questionnaire




                                                              VMware TCO and ROI Model

                                          Questionnaire

                                      Required Questions
Answers to these questions are required to create an ROI model

                                                                                                          Number           Cost Each
  How many servers are you considering virtualizing?                                                                             1,800
                                                                                                                                 1,400
                                                                                                                   100           1,000


                                                                                                         Type              Cost Each
  What type of server will be used for ESX Server (choose one from drop-down list)?                 8-Socket                     1,500
                                                                                                                            Annual
                                                                                                                           Hardware
                                                                                                         Cost Each          Support
  How much will the server used for VirtualCenter cost?                                                          500                300

                                                                                                          License        Annual Support
  How much does a P2V license and support cost?                                                                 6,000             1,500

  Which version of VMware Infrastructure do you plan to purchase? Select from drop down list.       Enterprise

  What support license do you plan to purchase? Select from drop down list.                         Platinum

  Do you plan to purchase a multi-year support contract?                                            No

  Which of these do you plan to purchase in addition?

  VMware Virtual Center Management Server?                                                          No

  Vmware Vmotion?                                                                                   No

  Vmware HA?                                                                                        No

  Vmware DRS?                                                                                       No

  Vmware Consolidated Backup?                                                                       No


                            Optional Questions to Refine Model
Reasonable defaults have been entered for these questions, but they can be modified to fit the scenario being analyzed

General:
  What is the lifetime of your servers?                                                                              3 years
  How many virtual machines / CPU do you expect to run? (sockets)                                                    5
  By how much do you expect your consolidation ratio to increase due to High Availability and/ or
  DRS?                                                                                                             1.2
One-Time Implementation Costs: VMware related services
  How much do you expect to spend on services related to implementing virtualization?
                                                                                 Assessment?                   1,000
                                                                                     Planning?                 1,000
                                                                                      Building?                1,000
                                                                                   Managing?                   1,000
                                                                                      Training?                6,000

Datacenter Charges:
  Network
  What is the annual datacenter charge for each 100MB network port for a server system?             $         180
  What is the annual datacenter charge for each 1GB network port for a server system?               $         180
  How many network ports are required for each server?                                              Without VMware       With VMware
    100MB connections                                                                                            2                     2
    1GB connections                                                                                              0                     2

  Storage Infrastructure
  What is the cost / GB of SAN storage?                                                             $              25
                                               VMware Business Case: Questionnaire


How much SAN storage is required per server on average (GB)?                                 30
                                                                                 Without VMware   With VMware
What % of servers are SAN-attached?                                                        50%            100%
How many SAN connections are required for each server?                                        2               2

What is the annual datacenter charge for each SAN port for a server system?      $       1,200

Power and Cooling
What is your electricity cost / kWh?                                             $        0.08

What is the average annual power consumption (kWh) of the servers you buy?              11,800 8-Socket Server
                                                                                         9,100 4-Socket Server
                                                                                         5,000 2-Socket Server

How much heat (in BTU / hr) do your servers generate?                                    3,600 8-Socket Server
                                                                                         2,700 4-Socket Server
                                                                                         1,950 2-Socket Server

What is the cost of cooling ($ / MBTU)?                                          $          50
                                     VMware Business Case: Questionnaire




      Annual
     Hardware
      Support
              500 8-Socket Servers
              500 4-Socket Servers
              500 2-Socket Servers
      Annual
     Hardware
      Support
              300




BC
                                          VMware Business Case: Questionnaire




BC




Windows Server 2003 standard/enterprise
                                                                      VMware Business Case: Questionnaire




                   Comments / Notes:




8-Socket Servers   Enter number of servers that are being considered for virtualizing, the purchase cost of each, and the $ paid for hardware support contracts (if any) for each.
4-Socket Servers
2-Socket Servers




                   Select type of server on which ESX Server will be installed and enter the price of the server and of annual hardware support/maintenance contracts. Note that VMware so




                   Price of the server (typically 2-CPU or smaller) that will run the VirtualCenter Server.


                   Starter-Includes ESX Server 3 (NAS and local storage only on servers with up to 4 physical processors, 8GB physical memory), VirtualCenter Agent
                   Standard-Includes ESX Server 3, VirtualCenter Agent, Virtual SMP, VMFS
                   Enterprise-Includes ESX Server 3, VirtualCenter Agent, Virtual SMP, VMFS, Vmotion, HA, DRS, Consolidated Backup

                   Platinum-24 Hour Phone Support, 7 days a week + Free Upgrades
                   Gold-Phone Support, 6am to 6pm PT, Mon. thru Fri

                   Feel free to change default value of 2 years.




                   The numbers in the cells below are conservative defaults taken from published information and from conversations with customers. They can be changed to better fit the



                   How long is a server kept in use before being retired for new hardware.
                   This number depends heavily upon application profile. A reasonable rule of thumb is to expect to run 5-8 virtual machines per single-core CPU with ESX Server. For dual



                   For example, consulting services to implement VMware software environment.




                   Chargeback incurred for each network connection. Includes cost of network switches, cabling, configuration, etc.




                   This is a conservative default for the acquisition cost of SAN storage. Actual cost will depend upon the type of SAN storage purchased.
                                                                      VMware Business Case: Questionnaire


                   This number will depend upon the type of workloads being virtualized. This number should be an average across all types of workloads being considered for virtualization




                   Chargeback for each connection to the SAN network. Includes cost of SAN switches, cables, configuration, etc.




                   These default values are samples taken from vendors' websites. Can be customized for your particular server.



                   These are default values for typical servers, but can be modified to fit the servers you plan to buy.


003 standard/enterprise
                                                                       VMware Business Case: Questionnaire




contracts (if any) for each.




enance contracts. Note that VMware software is priced per socket rather than per core, so if target systems are dual-core choose the number of sockets, not cores, for this question and modi




rtualCenter Agent




s. They can be changed to better fit the costs of your specific environment.




gle-core CPU with ESX Server. For dual-core CPU's, a conservative assumption is that each dual-core CPU can run 1.5 times the number of virtual machines a single-core CPU can run.
                                            VMware Business Case: Questionnaire


oads being considered for virtualization.
                                                                      VMware Business Case: Questionnaire




kets, not cores, for this question and modify the virtual machines / CPU entry in the optional questions below.




machines a single-core CPU can run.
                                                              VMware Business Case: TCO Model Summary



3-Year Total Cost of Ownership Summary
                                                            3-Year Total
                                       Without VMware       With VMware          Savings
One-Time Implementation Costs
  Services                                              -             4,000                (4,000)
  Training                                              -             6,000                (6,000)
  Total                                                 -            10,000               (10,000)

Hardware and Software Costs
  Server Hardware                              100,000                3,500                96,500
  Hardware Support                             150,000                2,700               147,300
  VMware Software                                                    91,000               (91,000)
  Total                                        250,000               97,200               152,800

Datacenter Costs
  Facilities Costs                             406,230              18,161                388,069
  Network and Storage Infrastructure           505,500              94,800                410,700
  Total                                        911,730             112,961                798,769

Total Cost of Ownership                       1,161,730            220,161                941,569

ROI Summary

Comparison with Like-for-Like Replacement
  Investment in VMware Implementation          107,200
  3-Year Savings                               941,569




                                 Total Cost Comparison

    $1,200,000
                                                                       Datacenter Costs
    $1,000,000
                                                                       Implementation Costs
      $800,000
                                                                       VMware Software
      $600,000
                                                                       Hardware Costs
      $400,000

      $200,000

             $-
                        Without VMware              With VMware




                                                                                 Page 11 of 19
VMware Business Case: TCO Model Summary




              Page 12 of 19
                                                    VMware Business Case: TCO Model Summary




                        Year 1                                                 Year 2                                               Year 3
Without VMware       With VMware    Savings         Without VMware            With VMware         Savings         Without VMware   With VMware

                 -          4,000         (4,000)                    -                        -              -                 -                 -
                 -          6,000         (6,000)                    -                        -              -                 -                 -
                 -         10,000        (10,000)                    -                        -              -                 -                 -


        100,000             3,500         96,500                    -                         -              -                 -                -
         50,000               900         49,100               50,000                       900         49,100            50,000              900
                           65,000        (65,000)                                        13,000        (13,000)                            13,000
        150,000            69,400         80,600               50,000                    13,900         36,100            50,000           13,900


        135,410             6,054       129,356               135,410                     6,054        129,356           135,410            6,054
        193,500            81,600       111,900               156,000                     6,600        149,400           156,000            6,600
        328,910            87,654       241,256               291,410                    12,654        278,756           291,410           12,654

        478,910           167,054       311,856               341,410                    26,554        314,856           341,410           26,554




                                                                         Page 13 of 19
Costs




        VMware Business Case: TCO Model Summary




                      Page 14 of 19
                       VMware Business Case: TCO Model Summary




Year 3
         Savings

                   -
                   -
                   -


                  -
             49,100
            (13,000)
             36,100


            129,356
            149,400
            278,756

            314,856




                                     Page 15 of 19
                                                                 VMware Business Case: TCO Model




                                                                            VMware ROI Calculator

   Color-Coding Key:
   Cells in yellow require inputs. They are filled in from required questions of questionnaire.
   Green cells have reasonable defaults but can be modified for your specific scenario. Most are filled in from the optional questions of questionnaire.
   White cells are calculated from inputs; changing them changes the model.

                                                                      Consolidation Scenario
   These are the minimum set of inputs you need to provide to create a working model.

Server Environment
                                                                                                Annual
   Servers Before Virtualization          Cell NamesNumber              Cost per Server       Maintenance
       8-Socket                                       0                           1,800                500
       4-Socket                                       0                           1,400                500
       2-Socket                                      100                          1,000                500

   Consolidation Ratio                                    6                                                                 Consolidation ratio inceases in enterprise version due to High

                                                                                                Annual
   Servers After Virtualization:                        Number          Cost per Server       Maintenance
       8-Socket                                           2                       1,500                300
       4-Socket                                           0                            -                  -
       2-Socket                                           0                            -                  -
       2-Socket (VirtualCenter Server)                    1                         500                300

         Number of total processors                       16
                                                                                             Annual Support
VMware Software                                         Number           License Cost        & Subscription
   VI3 Starter                                            0                       1,000                250
   VI3 Standard                                           0                       3,750                938
   VI3 Enterprise                                         8                       5,750              1,438
   VMware VirtualCenter Management Server                                         5,000              1,250
   Vmotion                                                                        1,400                350
   HA                                                                             2,000                500
   DRS                                                                            2,000                500
   Consolidated Backup                                                              500                125
   P2V                                                    1                       6,000              1,500
Networking and SAN Connectivity Needs
   Port Requirements                                                  Before Consolidation                               After Consolidation
     Number of Ports Per Server                    LAN 10/100              LAN 1000                 SAN        LAN 10/100      LAN 1000         SAN
        8-Socket                                       2                       0                     2             2              2               2
        4-Socket                                       2                       0                     2             2              2               2
        2-Socket                                       2                       0                     2             2              2               2
        2-CPU (VirtualCenter server)                                                                               2              0               0
        Annual Cost / Port                               180                  180                1,200            180            180            1,200

   SAN Storage                              Without VMware               With VMware
     % of Servers Attached to SAN                     50%                        100%
     SAN Storage Required (average GB / server)        30
     Cost of SAN Storage ($ / GB)                      25

                                           ServerLife
   Server Useful Life / Depreciation (years)              3

Facilities
                                                    Power                  Thermals
   Facilities Cost Parameters                     (KWh / year)             (BTU / hr)
     8-Socket                                           12,000               3,600
     4-Socket                                           10,000               2,700
     2-Socket                                             5,000              1,950

      Electricity Cost (per kWh)                               0.10
      Cooling Cost ($ / MBTU)                                    50




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                                                             VMware Business Case: TCO Model




                                                                         Details of Cost Analysis
   Details of the model and its calculations follow. Default values are provided in green cells, but you may need to modify them to fit your customer scenario.
   Note that some of the default values in the green cells are 0, ignoring those elements. These may be changed to include those components.

                                                                                                                  Without VMware                  With VMware
One-Time Implementation Costs                                                                                  Initial     Recurring           Initial   Recurring

VMware Services                                       Cost
  PSO Engagement                                         4,000                                                                                    4,000
VMware Services Total                                                                                                                             4,000                -

Training                                              Cost
    VMware Training                                      6,000                                                                                    6,000
Training Total                                                                                                                                    6,000                -

Total One-Time Costs                                                                                                                             10,000                -

Hardware and Software Costs
                                                                         Number of Servers
Server Hardware                                                    Without VMware With VMware
   8-CPU                                                                  0              2                             0                           3000
   4-CPU                                                                  0              0                             0                              0
   2-CPU                                                                100              0                        100000                              0
   2-CPU (VC Server)                                                                     1                                                          500
Server Hardware Total                                                                                             100000                 0         3500                0

Hardware Support Contracts                                                                                                          50000                            900
                                                                      Support &          Number of
VMware Software                                   License Cost       Subscription        Licenses
  VI3 Starter                                             1,000                250           0                                                        0                0
  VI3 Standard                                            3,750                938           0                                                        0                0
  VI3 Enterprise                                          5,750              1,438           8                                                    46000            11500
  VMware VirtualCenter Management Server                  5,000              1,250           0                                                        0                0
  Vmotion                                                 1,400                350           0                                                        0                0
  HA                                                      2,000                500           0                                                        0                0
  DRS                                                     2,000                500           0                                                        0                0
  Consolidated Backup                                       500                125           0                                                        0                0
  P2V                                                     6,000              1,500           1                                                     6000             1500
VMware Software Total                                                                                                                             52000            13000

Total Hardware & Software Costs                                                                                 100,000            50,000        55,500           13,900

Datacenter Costs

Facilities
   Datacenter Power                                                                                                                50,000                          2,900
   Datacenter Cooling                                                                                                              85,410                          3,154
Facilities Total                                                                                                                  135,410                          6,054

Network and Storage Infrastructure                                       GB of SAN Storage
                                                 Cost per GB       Without VMware With VMware
   SAN Storage Purchases                                    25               1,500         3,000                  37,500                         75,000

                                                                   Without VMware       With VMware
   LAN Switch Port Charges (10/100 mbps)                                200                   6                                    36,000                          1,080
   LAN Switch Port Charges (1000 mbps)                                    0                   4                                         -                            720
   SAN Switch Port Charges                                              100                   4                                   120,000                          4,800
Network and Storage Infrastructure Total                                                                          37,500          156,000        75,000            6,600

Total Datacenter Costs                                                                                            75,000          291,410      150,000            12,654


                                                                                                                 Without VMware                  With VMware
First-Year Total Cost of Ownership                                                                              175,000        341,410         205,500      26,554
3-Year Total Cost of Ownership                                                                                       1,199,230                      285,161




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                                                                VMware Business Case: TCO Model




                                                                             Comments / Notes
                                                   Version: 3.15.06




Consolidation ratio inceases in enterprise version due to High Availablity




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                     VMware Business Case: TCO Model




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