cut power costs with virtualization

Cut Power Costs with Virtualization

Larry Lamers

Member Technical Staff – Office of the CTO

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Agenda

The Data Center Climate Crisis

Prioritizing Power & Cooling Initiatives

The Impact of Server Consolidation

The Future of Power Management

VMware Customer Examples

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Data Centers are Becoming More Dense

Copyright © 2006 VMware, Inc. All rights reserved.

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Copyright © 2006 VMware, Inc. All rights reserved.

Data Center Designs are Inefficient

Power consumed = heat which must be evacuated

Hot/cold aisles are often not set up properly

Airflow redundancy is needed account for hot pockets and humidity

Heat dissipation is more expensive than power

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Power Management is Increasingly a Driver

Why Acquired VMW

N Am EMEA A /P

Server consolidation 64% 64% 53%

Lower datacenter costs 38% 38% 38%

Server refresh cycle 31% 24% 25%

New server for new project 21% 23% 26%

Disaster recovery initiative 21% 16% 16%

Software development / testing 21% 19% 20%

High availability initiative 17% 25% 19%

New software implementation 12% 13% 22%

Storage virtualization initiative 11% 6% 18%

Power mgt initiative 10% 9% 4%

Utility computing initiative 7% 9% 9%

Peer recommendation 5% 2% 5%

Regulatory compliance 3% 4% 2%

Consultant recommendation 1% 4% 3%

N 302 226 177

Source: VMware Survey, October 2007Question: Which three factors best explain why your organization made its last x86 virtualization software acquisition?

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Customer Impact

Energy cost is increasingly consuming budget and hard to ignore

Data centers are out of power but half full

The risk of running out of power / space is real

Lack of power and space impedes adoption of new services

Heat causes servers to fail, resulting in service interruption

Corporate initiatives and regulations around energy are emerging

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Virtualization…

Decouples software from

underlying hardware

Encapsulates Operating

Systems and applications

into “Virtual Machines”

Virtualization: Transformational Change in Computing

A Virtual Machine

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Copyright © 2006 VMware, Inc. All rights reserved.

Consolidation Improves Hardware Utilization

Before VMware After VMware

Virtualization enables consolidation of workloads from underutilized servers onto a single server

to safely achieve higher utilization

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As a Capitalist...

Energy costs are skyrocketing and consuming budgets

$4.5 billion in electricity costs in U.S. in 2006*

Costs to build new data centers are “material”: $1,000 per sq ft.

Carbon offsets: $300 per server

* EPA report to Congress on Data Center Energy Efficiency, July 2007

“Over the next 5 years,

most enterprise data

centers will spend as

much on energy (power

and cooling) as they do

on hardware

infrastructure.”

Source: Gartner,

February 2007

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As an Environmentalist…

Data Centers are huge CO2 factories

1 full rack of blade servers = 20-25 kW = peak demand of 30 homes in California

U.S. data centers = 45 billion kWh, 1.5% of total consumption*

This electricity use has more than doubled since 2000

Every server removed or powered down saves ~12.5 tons of CO2 emissions

Equivalent to taking ~1.5 cars off the road (12,000 miles @ 20 mpg) or planting 55 trees a year

* EPA report to Congress on Data Center Energy Efficiency, July 2007

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Solving the Climate Crisis Depends on Efficiency Gains

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As a Data Center Operator

No more power available…

Want to move your data center?

Limited floor space / capacity

No new services!

Growth is constrained

Heat = server failure = service interruption

Your job?

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Volume Servers are Driving Power Consumption

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Volume Servers are Driving Power Consumption

All servers = 40% of total data center electricity use

Volume servers = 85% of all server electricity use

Up from 70% in 2000

Volume server consumption has grown 17% annually since 2000

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Virtualization

Virtualization is THE Game Changer

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BEFORE VMware AFTER VMware

1,000

Direct attach

3000 cables/ports

200 racks

400 power whips

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Tiered SAN and NAS

300 cables/ports

10 racks

20 power whips

Servers

Storage

Network

Facilities

Server, Storage, and Network Consolidation

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30:1Qualcomm

20:1AIG Technology

15:1Applied Innovation

10:1National Gypsum

10:1Antares IT

10:17-Eleven

8:1State of Montana

Conseco Finance 8:1

VMware Customer Server Consolidation Ratios

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Energy Consumption for Power & Cooling

Nameplate ratings of servers before and after consolidation:

On average servers consume 50-67% of max power capacity

Idle servers consume 30-40% of max power capacity/rating

Copyright © 2006 VMware, Inc. All rights reserved.

Type Qty Power Rating

1 CPU 300 475 W

2 CPU 500 550 W

4 CPU 200 950 W

8 CPU -- 1600 W

Type Qty Power Rating

1 CPU -- 594 W

2 CPU 38 688 W

4 CPU 38 1188 W

8 CPU 4 2000 W

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How Does Utilization Increase Power Consumption?

15% more power

CPU Utilization Increase

22Copyright © 2006 VMware, Inc. All rights reserved.

BEFORE AFTER

= Power: $356,554

= Cooling: $445,693

= Power: $46,513

= Cooling: $58,141

Rule of thumb: ~$700 and 7,000 kWh saved per year per workload virtualized

1 CPU 300 475 W

2 CPU 500 550 W

4 CPU 200 950 W

8 CPU -- 1600 W

1 CPU -- 594 W

2 CPU 38 688 W

4 CPU 38 1188 W

8 CPU 4 2000 W

x 67% x 67%

x $0.10x $0.10

Max Power Capacity Rating

% of Max

Cost / kWh

Cost / Yr

Savings / Year = Savings: $697,593 (86%)

kW / Yr 407 kW/hr x 24 x 365 53 kW/hr x 24 x 365

Power Savings at Utility Company

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Higher Asset Utilization Defers Data Center Expansion

Application Demand

Addressable Capacity

Available Capacity

Time

Capacity

$ 100+ M Investment for Data Center Expansion

Increased Addressable Capacity / Cubic Feet

Stretch Real Estate Utilization / Delay Expansion

Customer Defers $100M investment by 3 years through increased space utilization

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VDI Energy Savings

Consolidate 1,000 desktops to 16 2-way quad-cores, 32GB RAM

8 users per core or 64 per server

Desktops run 12 hours per day and servers run 24 hours

Reduce power consumption by 35%!

Save $22 and 184 kWh per PC per year

$27

227,813

632,813

938

750

Server

Virtual Desktop Infrastructure

$13

106,520

297,000

14

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Thin Client

$40

334,333

929,813

Total

518,400kWh / year

1.44 MPower / Day (watts)

$62Cost / year / user @ $0.12/kWh

150Cooling Power (watts/hour)

120Operating Power (watts/hour)

PCs

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HW HW HW HW HW

HW HW HW HW HW

HW HW

HW HW

HW

HW

HWHW

New Levels of Flexibility / Automation

ESX 2 / VC 1PHYSICAL VMWARE INFRASTRUCTURE 3

RP1

RP2

INDUSTRY FIRSTS:Logical Resource PoolingDistributed Resource Scheduler (DRS)Distributed Power Management (DPM)

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Distributed Power Management (DPM)

Resource Pool

Business Demand

Power Off

Consolidates workloads onto fewer servers when the cluster needs fewer resources

Places unneeded servers in standby mode

Brings servers back online as workload needs increase

Minimizes power consumption while guaranteeing service levels

No disruption or downtime to virtual machines

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DPM Setup and Options

These features are representative of feature areas under development. Feature commitments are subject to change and must not be included in contracts, purchase orders, or sales agreements of any kind. Technical feasibility and market demand will affect final delivery.

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How DPM Works

Recommends/initiates host power off when load is low

Considers X minutes of load history (user defined)

All VM’s on selected host are migrated to other hosts

Host is powered off

Recommends/initiates host power on when load is high

Considers X minutes of load history (user defined)

Wake on LAN packet sent to the selected host, which boots up

DRS load-balancing kicks in and VMs are migrated to this host

These features are representative of feature areas under development. Feature commitments are subject to change and must not be included in contracts, purchase orders, or sales agreements of any kind. Technical feasibility and market demand will affect final delivery.

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Automation Drives Additional Savings & Efficiency

These features are representative of feature areas under development. Feature commitments are subject to change and must not be included in contracts, purchase orders, or sales agreements of any kind. Technical feasibility and market demand will affect final delivery.

Customers get comfortable with DRS automation quickly

Turning off low-end workloads on “nights and weekends”reduces server use by 40%

Additional labor savings from automation

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The Mechanics Bank

Virtualizing 102 of 105 servers

Main data center ESX Servers: 2 quad dual-core and 6 repurposed two-ways

Five year “hard” savings of $1.5M - $1.7M

Total investment of $300,000

Payback of < 10 months

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Mechanics

Electric / HVAC Costs Drill Down

0

50000

100000

150000

200000

250000

300000

350000

Electricity Costs Cooling Costs New PDU

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Energy Efficiency at Wyse

Annual cost: $8K

Annual savings: $70K

=> 20% of total site power bill <=

Annual cost: $78K

(12 cents / KwH)

Fully automated DRS with 7,000+ VMotions in last 6 months

70 VMs on 5 x 2-CPU servers (14:1)

½ rack

2 rack mount UPS

Backup AC on standby only

700W per server = 30 MwH / yr

Cooling = 30 x 1.25 = 38MwH

TOTAL = 68 MwH

Annual Savings: 585 MwH (90%)

60 x 2-CPU servers

4 racks

16 rack mount UPSs

Backup AC running in parallel

550W per server = 290 MwH / yr

Cooling = 290 x 1.25 = 363 MwH

TOTAL = 653 MwH

After VirtualizationBefore Virtualization

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Savings Chart

0

100

200

300

400

500

600

700

Power Cost

Before VI

After VI

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1-800 Radiator

Situation:

Rapid growth: 3 new franchises opened per week

Out of power, A/C maxed out, racks full

“Before we knew it our computer room was almost at maximum power capacity, our computer racks were full, our switches were all used, and our air conditioning was on continuously. Rather than spend thousands on new power systems, racks, and air conditioning, we chose to leverage VMware’s product line to allow our company to keep pace with our growth.”

-- Mike Carvalho, CTO

Results:

Removed 31 physical servers out of production – 40 workloads on 9 ESX hosts

$6,000 PG&E rebate check

25-percent reduction in power and cooling costs

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Energy Efficiency Programs

Validation of server consolidation is recognized as a calculableand impactful energy efficiency measure

Incentive range from about $150 to $300 per server removed

Paid at 8-10 cents per KwH

Max of $4 million per site (PG&E)

Currently available throughout California…

PG&E progam: www.pge.com/hightech

SoCal Edison: http://www.sce.com/RebatesandSavings/LargeBusiness/SPC/

SDG&E/Sempra: http://sdge.com/business/specializedincentives.shtml

Programs are expanding quickly…ask your energy provider!

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Founding member of a global consortium dedicated to developing and promoting energy efficiency for data centers by:

Defining meaningful, user-centric models and metrics

Developing standards, measurement methods, best practices and technologies to improve performance against the defined metrics

Promoting the adoption of energy efficient standards, processes, measurements and technologies

Bringing together industry leaders and end users from critical segments of the data center ecosystem to develop a unified voicearound data center efficiency issues

http://www.thegreengrid.org/

The Green Grid

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Board of Directors and Founding Member CompaniesBoard of Directors and Founding Member Companies……

Who’s in The Green Grid?

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Conclusions – How Customers Win

Server consolidation and increased utilization decrease power consumption: energy savings are natural by products

Virtualization has inherent benefits such as workload mobility that allow for superior power management

Virtualization lets customers reclaim expensive data center floor space and avoid costly data center expansion

Do more with less – virtualization offers improved service levels, responsiveness and availability with a smaller energy footprint

Virtualization is the best initiative to reduce energy

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TCO Calculator

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Start with a Virtualization Assessment

Ideal for companies that require a business justification to usevirtualization for a server consolidation project

Illustrates:• 3-year TCO / ROI• Target workloads to virtualize

Deliverables:• ROI model• Assessment report• Server performance and utilization

• Formal presentation of findings

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Questions?

Thank you!

Contacts:

Product Marketing - rsmoot@vmware.com

Office of CTO – ljlamers@vmware.com