WHITE P APER Microsoft Windows Server 2003 — Getting Ready for an Assault on the Datacenter
Sponsored by: Microsoft Martin Hingley April 2003 Chris Ingle
IDC OPINION
The introduction of Microsoft’s Windows 2003 operating system is one of the biggest events in the server industry in 2003. Although introduced at a particularly difficult time economically, IDC expects it to help grow server sales. Many of the advantages come not from the new technology features, but in stretching to new types of computer system based on Intel’s Itanium 2 (and soon AMD’s Opteron) processors. Microsoft and its OEM partners will concentrate on trying to take business from established RISC/Unix suppliers. They will also target large-scale consolidation, upgrading and replacing current server offerings, and Web server opportunities with a special cut-down version. In this white paper, IDC describes the current state of datacenters and the concerns of IT directors and chief information officers. We look at how Microsoft participates within the datacenter, we assess the Windows Server 2003 product itself, and discuss how Microsoft's customers should view the product.
METHODOLOGY
This white paper was compiled by IDC analysts who follow customer requirements from hardware and software platforms, and vendor strategies in meeting these requirements.
IN THIS WHITE P APER
IDC provides an overview of Microsoft's Windows Server 2003 release and discusses our expectations for the product and how customers should use this product. This white paper is aimed at IT professionals involved in developing company-wide and datacenter-specific IT strategies.
SITUATION OVERVIEW
S E R V E R D E C I S I O N M A K E R S — C H A N G I N G R E S P O N S I B I L I T I E S A N D C H A L L E N G E S I N 2 0 0 3
There’s always a balance in the personalities involved in making purchasing decisions for hardware, software, and services used in large companies. It’s wrong to over-generalize, but typical approaches in a large company would be: Financial directors (or sometimes managing directors or even CEOs) have the ultimate responsibility for signing off purchases. They are very interested in managing their organization's P&L. They have bigger challenges than deciding what computers to use. However, they have become more engaged in decisions as the overall business climate has worsened. Questioning the return on investment, efficiency, and cost of IT operations is becoming important. Much of
the financial director’s questioning surrounds employment levels — new technology which needs fewer people to run it is currently very attractive. Departmental heads are responsible for managing the company’s employees. Usually their staff represents the majority of computer users in their organizations. Their computer usage often lies outside the control (and sometimes even influence) of the IT manager. At the departmental level, there has been very little questioning of the costs or efficiency of their servers and multiple applications. Departmental computing is often a prime candidate for consolidation. CIOs are responsible for corporate computing, are in charge of IT staff, and often have dedicated datacenters for housing computers. They tend to be conservative by practice as they are charged with making sure their company’s key processes (client transactions, supply chain management, etc.) work. At the heart of their responsibilities tend to be databases, where technical issues — such as 64-bit processing — can make a big difference to performance. They want to make sure they have the right tools in place to deliver appropriate service levels. During the downturn, many have been asked to cut costs and improve efficiency. If CIOs request their IT suppliers to provide "more for less," it tends to be the departmental users who are increasing the demand for their services (the "more") and the financial directors who are restricting their spending (the "less"). Over the years, Microsoft’s attention on users, both in companies and at home, has given it natural allies among departments and financial directors that have not had to deal with the complexity of corporate applications. Its products have not always been whole-heartedly endorsed by CIOs, as they were not originally designed for 24 x 7 a week operation or for the performance requirements of their most important databases. However, Microsoft has been making headway since the introduction of its Windows 2000 Server product. Not only has the resilience of the operating system and its own applications increased, but the introduction of a certification process for third-party applications (run for Microsoft by Veritest) helps CIOs’ ease of mind when building corporate applications and database workloads. In addition, Microsoft has helped put in place technical support help lines with its hardware OEMs to provide a much higher level of support.
T H E S T A T E O F T H E D A T A C E N T E R I N 2 0 0 3
Typically, datacenters in 2003 are overworked and under-funded. IDC’s user research picks up a growing difference between IT budgets and IT spending, and some finance directors have offered bonuses to CIOs and IT managers who manage to spend less than they planned. IDC has discovered a number of recurring themes when interviewing CIOs. In particular: Large companies are focusing on costs as business levels fall and are demanding "more for less" from their suppliers. Merger and acquisition activity makes consolidation an absolute necessity, rather than "nice to have." Wherever possible, users want to make sure products are available from more than one source. Where they have them, users want to make sure that they can leverage their own bespoke software writing skills to modify old — and build new — applications. Computer infrastructures are more stable than before — CIOs are being asked to "round up" and manage disparate departmental applications.
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IT purchasers have the upper hand in this downturn. "Return on investment" (ROI) and "total cost of ownership" (TCO) have become watchwords when dealing with IT suppliers. CIOs are looking for alternatives to satisfy the changing demands put upon by the datacenter by users, management, and business requirements. To reduce integration costs, there are clear moves towards solutions offerings. With Windows 2003, Microsoft plays to this model with the features and functions discussed below.
M I C R O S O F T ’ S P O S I T I O N I N T H E S E R V E R M A R K E T
Microsoft has been very successful in taking an increasing proportion of the server units sold over the last few years (see Figure 1). However, one of the challenges to Microsoft is to become a stronger component of the market in terms of the size of server its products are used on.
FIGURE 1
WORLDWIDE SERVER UNIT SHIPMENTS BY OPERATING SYSTEM, 1996–2002
3,500,000 3,000,000 2,500,000 (Units) 2,000,000 1,500,000 1,000,000 500,000 0 1996 Windows Unix Linux Other Mainframe
Source: IDC, 2003
1997
1998
1999
2000
2001
2002
Currently, around three quarters of the value of the server market is associated with Unix and mainframe operating systems. Although this proportion has declined somewhat over the last few years, we have not seen Microsoft grow quickly onto larger systems. Overall, Microsoft is extremely strong at the lower end of the server market but has yet to make significant inroads into the midrange and high-end of the server market. With the launch of Windows 2003, Microsoft aims to progress further into this space.
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T H E
T H R E E - T I E R
S E R V E R
M O D E L
FIGURE 2
THE THREE-TIER SERVER MODEL AND TYPICAL PLATFORM ASSOCIATIONS
Mainframe RISC/ Unix
T3. Database Servers
Intel/ Windows
T2. Application Servers
T1. Edge Servers Intel/ Linux
Source: IDC, 2003
One way of looking at Microsoft’s latest release is to think about server usage in organizations as being divided into three separate tiers (see Figure 2). In particular: Tier one are edge servers used to provide Web applications such as Web caching. Typical server configurations are single processor machines running Linux and Apache software. Form factors include rack-mounted and blade configurations. An alternative approach is provided by IBM mainframes, where multiple iterations of Linux are provided under its Virtual Machine (VM) environment. Microsoft’s operating systems are much in use at this level, although their traditional "general purpose" approach has made them less appropriate in recent years. Microsoft’s Windows 2003 Web Edition is positioned in tier one. Tier two are application servers used to run the whole gamut of workloads. Typical software includes everything from SAP, Peoplesoft, and Siebel to Microsoft Exchange and Lotus Domino. Typical server configurations are 2- and 4-way Intel machines, as well as RISC/Unix from HP, Sun, IBM, and AS/400s. Microsoft’s machines are very important at this tier two level, especially where departments have adopted the application server. Microsoft’s introduction of its Server Appliance Kit (SAK) for the creation of appliance servers is also a "tier two" activity. Tier three are database servers used typically to run online transaction processing (OLTP) and business intelligence workloads. Typical server configurations include IBM mainframes, RISC/Unix machines from Sun, HP, and IBM. Despite some inroads made by IBM, Unisys with its ES/7000, and others, Microsoft/Intel-based servers are currently missing from this sector. Their development has been held back by the
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memory limitations of the 32-bit width of their CPUs. The addition of 64-bit capabilities to Windows in its latest release makes it possible for Microsoft’s operating systems (complete with its SQL database) to play a more important role in tier three. Outside of the datacenter there is a significant opportunity to consolidate the multiple systems which are being used for departmental workloads, such as local or departmental databases and file/print. Most large organizations and many mediumsized organizations already have plans in place to do this consolidation and we expect this activity to intensify as this is a key area for reducing complexity and cost. Of course this model is best used to describe Intel server infrastructures, as many larger machines have operating environments which effectively let them straddle two or even three of the tiers in one box.
M I C R O S O F T ’ S W I N D O W S F E A T U R E S , F U N C T I O N S , 2 0 0 3 S E R V E R — P O S I T I O N I N G
Microsoft launched six versions of its new server operating system on April 24, 2003. These are based on the Windows 2000 kernel. There are several improvements IDC expects to see over previous Windows releases. Looking to address one of the most serious criticisms of its software, Microsoft has done extensive work to improve the security features of the product. For example, during its recent code review process, Microsoft looked for code that could be used for "buffer overflow" attacks, among other problems. As well as aiming to improve the overall security of the platform, businesses looking to make wireless deployments for large installations should look at the improved wireless security features. There are a number of scenarios in which Windows 2003 can improve the efficiency or capabilities of Microsoft-based environments. In particular: Server consolidation — The support for larger SMPs and CC-NUMA architectures in the 32-bit area will increase the availability of larger server platforms from companies such as Unisys. Physical consolidation (consolidating applications onto fewer or larger systems), data integration (combining data with different formats onto a similar platform), and application integration (consolidating servers supporting different types of workloads onto fewer or larger systems through partitioning or server-based computing) are all consolidation practices which will benefit from new operating system features. Productivity — A number of additional features should increase user productivity and reduce IT departments' workload. For instance, this release has an "undelete" function allowing users to restore files deleted from the network, reducing support calls. Microsoft has improved the integration of its active directory with a number of other applications. It has also improved its SharePoint application to allow users to work on common "white space" documents from remote locations. Users will also benefit from the increased focus on security. Microsoft environments should be less prone to viruses and outside intrusion. Systems management — Microsoft has made many improvements for IT managers in terms of ease of management. Client software can be distributed from a central source more easily. Active directory structures can be reconfigured more easily. Additional support for SANs, clusters, larger SMPs, and CC-NUMA architectures should close the gap between Microsoft-based servers and other types of system Microsoft claims that there were over half a million downloads of the Windows 2003 beta, as well as having tens of thousands of industry partners. Key applications also available at launch will be Visual Studio .NET 2003 for developers and SQL Server 2000 Extended Edition, which is designed to run on 64-bit versions of the operating system.
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Windows Server 2003 Datacenter Edition — This is the update for the Windows 2000 version with the same extension. Available for large SMPs up to 32-way. The maximum memory addressable is 64GB. As with its predecessor, Microsoft offers a certification process for application vendors to ensure interoperability. CC-NUMA architectures are supported. Currently only Unisys’ ES/7000 machines (which are effectively large SMPs) fit the maximum requirements for this version. IDC expects this version to be used on machines that are based in datacenters and used primarily for large-scale server or application consolidation. Windows Server 2003 Datacenter Edition for 64-bit Itanium 2 Systems — This is the long-awaited 64-bit version. It also stretches to 64-way SMPs and 512GB of RAM. Here the CC-NUMA support is relevant to HP Superdome and Bull’s NovaScale families, although only the latter currently extends to 64-way configurations. IDC expects these types of machine to lead the assault on the RISC/Unix market. Windows Server 2003 Enterprise Edition — This provides support for SMPs up to 8-way and clusters of up to 8 nodes. Maximum memory addressable is 32GB in this Xeon-based version. A typical server supported would be the bigger configurations of HP’s Proliant family. IDC expects large application servers to be based on machines running this version. Windows Server 2003 Enterprise Edition for 64-bit Itanium 2 Systems — This operating system offers support for Itanium 2 machines with up to 8-way SMP architectures. The smaller versions of HP, Bull, and other servers are the target platforms. IDC expects smaller database serving and application serving to be the typical use for machines running this version. Windows Server 2003 Standard Edition — This version of the operating system addresses the bulk of the market Microsoft has been successful in to date. It addresses architectures up to 4-way SMP. Typical machines include the majority of Dell’s PowerEdge servers. IDC expects this to be used in small and mediumsized companies and in smaller departments in large organizations. Typical usage will be as edge servers and small application servers. Windows Server 2003 Web Edition — This special edition of the operating system is designed exclusively for Web serving, fitting into Microsoft’s IIS strategy. Machine configurations will include blades and small rack-mounted servers from a number of vendors. IDC expects these products to be positioned against Linux-based Intel servers running Apache software. In addition, Microsoft is intending to launch another version, Windows Small Business Server 2003, in third quarter 2003. IDC also expects Microsoft to release a product supporting AMD’s Opteron CPUs by the end of the year, although it is currently unclear whether the features and functions will match those designed to run on Intel’s Itanium 2 CPUs.
S T R O N G B E N C H M A R K P E R F O R M A N C E
IDC notes that Microsoft has made a strong showing on several key benchmarks. Performance highlights include: Number one and three position in non-clustered TPC-C. The leading system is the HP SuperDome running SQL Server 64-bit. This system recorded 707,102 tpmC and the lowest price/tpmC ($9.13) in the top 10 non-clustered ranking. The third position was taken by the NEC Express5800 with 514,034 tpmC. Windows Server 2003 takes the top four positions in terms of price performance running the TPC-C benchmark.
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Of relevance to customers running NT4, Microsoft’s internal data and data audited by Veritest, among others, shows substantial performance improvements for Windows Server 2003 over NT4, and in some areas over Windows 2000, for example: 19x performance increase on Active Directory address searches from Windows 2000 to Windows Server 2003 running on an 8 processor HP DL760 148% improvement over NT4 on the NetBench file serving benchmark again running an 8 processor HP DL760 140% improvement over Windows 2000 on Terminal Server connections for users running multiple office applications IDC expects that more software vendors will publish application benchmarks through the year.
DATACENTER CHALLENGES FOR MICROSOFT IN 2003
As Microsoft eyes up the datacenter opportunities with its new operating systems, so it will face a number of challenges. In particular: The reticence of CIOs to use Microsoft products for corporate applications due to a perception of inferior resilience in comparison with mainframe and Unix operating systems. Microsoft has beta tested its new products and has developed a number of prescriptive architecture guides (PAGs) and reference architecture guides (RAGs). Microsoft has a number of reference customers running Windows Server 2003 and other Windows Server products, such as SQL Server 64 on Windows 2000. Microsoft’s certification programs, run for it by Veritest, should help to build confidence here. A belief that Microsoft is more concerned with adding features than fixing bugs. In the past, Microsoft operating systems have been less than perfect at launch. Microsoft needs to ensure that enough work has been done to prevent major bugs being discovered shortly after launch. IDC believes that Microsoft has worked extremely hard through code reviews and beta testing to guarantee that its latest release is adequately "bug free." It will have to demonstrate this clearly to IT managers through reference material and product demonstrations. Encouraging and maintaining OEM partner support for the server hardware associated with its higher end products. Vendors with their own RISC/Unix or mainframe offerings have to balance their own products with Microsoft's products. Customers will need to ensure that a vendor's full offering, both Microsoft and alternatives, are presented. Especially with its new 64-bit operating system versions, Microsoft will have to demonstrate a knowledge of pre-existing applications and either partner with their ISVs or produce products of comparable performance. An example of Microsoft actively seeking to fulfill this can be found in the partnership with Siebel. IDC expects that early 64-bit deployments may use 64-bit SQL Server on Windows Server 2003 with a 32-bit application. Providing proof of superior total cost of ownership will be vital and Microsoft has already started this work with a number of customer references. Naturally, customers who feel pressured to upgrade may be critical, and each case will involve different benefits and costs, so invitations from customers to run company-specific evaluations will be the next step.
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Many of the new servers will be implemented for consolidation projects to help CIOs to take control of hitherto departmental workloads. Microsoft will need to offer programs, for example as part of Microsoft's Systems Architecture (MSA), to allow for the migration of these packages to more efficient usage models.
CONCLUSION
Microsoft will aim to make Windows 2003 Server one of the biggest server operating system launches of all time. It is being released in very difficult market conditions. Hardware vendors certainly hope that it will be attractive enough for users to want to upgrade. IDC believes there are five generic opportunities Microsoft will be able to help address with this product. In particular: Replacements of older operating system versions. Those taking upgrade options within their licensing agreement with Microsoft machines bought in the last year or so will naturally look at upgrades, if these do not interfere substantially with currently running applications. For those with older machines, IDC expects a major emphasis on replacing the server around the end of the year before Microsoft starts withdrawing support for the NT 4 operating system. Based on improved features, IDC would certainly recommend that CIOs running NT4 evaluate Windows Server 2003. Consolidation activities. In larger organizations, there are major opportunities to lower the cost of computing by taking disparate developments and hosting them on few, but larger, machines or clusters. Organizationally, this will require more power being given to IT managers in charge of datacenters. Datacenter database and OLTP applications. Now Microsoft operating systems run on 64-bit Itanium 2-based servers, there is a chance for these machines to compete more effectively against RISC/Unix systems. Migration services will be needed here, as well as strong references for the reliability and comparative performance of databases and associated applications running on these machines. Web serving. Microsoft has lost share in edge computing over recent years as users have adopted Linux machines running Apache. The Windows 2003 Web Edition has been specifically designed to be more competitive in this space and it will be interesting to see how it matches up. Processes and practices. Microsoft recognizes that as its products mature and develop in the datacenter, it needs to work with customers to guide how its products are deployed and used. It needs to help its customers improve processes, for example in architecture design and system monitoring. Overall, it appears that Microsoft has more thoroughly tested its new product and put in place beta programs and training than for previous releases. Its products have a certain flavor, as the company competes for applications and infrastructure as well as the operating system itself. If successful, this means that the mix of software and service suppliers will be very different in the next few years. The key test will be in whether the new operating system can meet the requirements for simplicity, ease of administration, and security that CIOs demand of a new product.
E S S E N T I A L G U I D A N C E
If you are a CIO looking to invest in new engines to run server or application consolidation projects, you will want to investigate the new features of Windows 2003. You will want to ask for references from other users who have undertaken similar projects before. You may also want to look at Microsoft’s RAGs and PAGs in order to study the deployment of Microsoft's Systems Architecture (MSA) in real-world instances. Before undertaking such activities, you will need to audit your organization's current application and server usage. You will also need to secure the
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authority from senior management and the buy-in from those who are currently managing departmental servers. If you are an existing user of a small department or company server running an earlier version of Windows or NT, you will want to look at the new features of Windows 2003 to decide when to upgrade. If you have a relatively new machine you may want to swap to the new system. If your machine is more than a couple of years old, you will need to think about upgrading before the end of 2003 when Microsoft will start withdrawing technical support for NT 4. If you are a CIO under pressure from your finance director to cut costs in your datacenter operations (especially concerning database and corporate applications currently running on RISC/Unix platforms), you will want to investigate solutions based on Microsoft’s 64-bit version of Windows 2003. In particular, you will need to have convincing proof that such systems can perform to the same or higher levels than your existing solutions. In some cases, you may wish to investigate prototype solutions on smaller Itanium 2 boxes before the "Madison" CPU arrives later in the year. You may also want to look at AMD’s Opteron CPU when that becomes available. Of course, you will also need to prove to your finance department that moving corporate workloads to Microsoft's operating system will be done in a reasonable time at lower cost.
C O P Y R I G H T
N O T I C E
External Publication of IDC Information and Data — Any IDC information that is to be used in advertising, press releases, or promotional materials requires prior written approval from the appropriate IDC Vice President or Country Manager. A draft of the proposed document should accompany any such request. IDC reserves the right to deny approval of external usage for any reason. For further information regarding this document please contact: Marketing Department Tel: +44 (0) 20 8987 7100 Copyright 2003 IDC. Reproduction without written permission is completely forbidden.
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