Welcome To Your Virtualized World

1. Welcome To Your Virtualized World What is YOUR Virtual Awareness?

2. What is Virtualization? • An online dating system which allows individuals to meet over the Internet, usually with the objective of developing a relationship. • A term that refers to the abstraction of computer resources, which hides the physical characteristics of computing resources from their users, be they applications, or end users. • I don’t know….. Yet!

3. Have YOU ever used a Virtualization technology? • Yes, I’ve tinkered around with it, but am still new to the technology • Yes, I consider myself a proficient user, and have setup / launched / maintained a Virtual Machine. • No, I am a rookie.

4. Does Your Business/Company Currently Utilize Virtualization Technology? • No, we have not begun to utilize Virtualization Technology across any platform. • No, but I know our IT Leadership is considering it for the platform of the future. • Yes, we have begun to a proof of concept, but no implementation has occurred • Yes, we have Data Centers full of Virtualized Servers/Machines.

5. Does Your Business/Company Have Any Methods In Place To Manage The Process Behind Virtualization? • Yes • No • The Future Hasn’t Been Implemented YET.

6. VIRTUALIZATION BEST PRACTICES Storage Network Applications Hardware Security Service Management Governance

7. WHAT IS VIRTUALIZATION? • Virtualization • Presents hardware resources as virtual resources, i.e.: • Compute (CPU/Memory) • Storage (Disk) • Network Interfaces (NIC) • Allows managed sharing of hardware resources • Presents standard hardware to “Guest” operating systems running inside virtual machines (VMs) • Frees software from physical hardware dependencies

8. GROWTH OF VIRTUALIZATION Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments How many virtualization hosts does your organization have?

9. GROWTH OF VIRTUALIZATION Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments How many virtual machines does your organization have?

10. GROWTH OF VIRTUALIZATION Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments • Percentage of your servers that will be virtualized by the end of 2010?

11. GROWTH OF VIRTUALIZATION • Conventional x86 server sprawl • 36M physical servers by 2011 – a ten fold increase in 15 years* • $140B in excess server capacity – a three year supply* • Operating costs • $8 in maintenance for every $1 spent on new infrastructure* • 20 – 30:1 server-to-admin ratio** • Power and cooling • 50c for every $1 spent on servers*** • $29B in power and cooling industry wide*** *IDC Doc #207044 – U.S. and Worldwide Server Installed Base 2007-2011 **Source: VMware Corporation ***IDC Doc #206035 – Virtualization and Multicore Innovations Disrupt The Worldwide Server Market

12. ADVANTAGES OF VIRTUALIZATION • Less power consumption • Less Physical Servers Means Less Power Consumption & Less Cooling • Less rack space • As Much As 50% Reduction In Hardware • Fewer Hardware Platforms • Instant provisioning • “3 Clicks” Towards A Dedicated Virtual Server • Consolidation and commoditization of server hardware • 50 – 70% reduction in deployment of new servers • Improved resource allocation • Multiple VMs on a single host can reclaim unused CPU cycles

13. VIRTUALIZATION BEST PRACTICES Storage Network Applications Hardware Security Service Management Governance

14. ENTERPRISE GOVERNANCE IN A VIRTUAL WORLD Bill Banks, President 813-855-3710

15. Virtualization Best Practices Storage Network Applications Hardware Security Service Management Governance 15

16. AGENDA • Virtualization from a Business Management Perspective • Management Challenges of Virtualization • Key Components of an IT Management Business Model • Effects of Virtualization on the IT Management Business Model • Approaches to revise Key Components to address the Challenges • Questions and Answers The world we’ve made is a result of the level of thinking we have done thus far, creating problems we cannot solve at the same level of thinking. Albert Einstein 16

17. Virtualization Challenges • Lack of formalized strategy, planning, testing, and deployment disciplines – Trial and error model (Fix it later) • Increasing complexity of the operational production environment – Service delivery interruptions and outages • Lack of visibility and oversight by business management – Risk management and compliance issues • Lack of formalized roles and responsibilities with new virtualization model – Technicians are in control • Immaturity of operations and performance management systems and tools – Up to 18 to 24 months behind the Virtualization vendors’ products • Lack of management measurements and metrics – Meaningful qualitative metrics are not available 17

18. IT Management System Overview Components of an IT Management System (Business Model) 18 Governance Strategy Organizational Structure Business Process, Information and Measurements Systems and Tools

19. Governance Principles • Governance ≈ Answers to What, Why, Where, When, Who, How, and How Much • Enterprise / IT Alignment • Rules of Engagement (Focus, Priorities, and Resources) • Risk and Compliance Management • Ownership and Accountability (Roles and Responsibilities) • Visibility, Transparency, and Oversight • Auditable / Securable / Recoverable Solutions • Measurable operational performance and Business Value 19

20. Framework for IT Success ℠ • Foundation for IT Management Business Model • Background on Process Frameworks • Breaks environments into easily understood & managed parts • Forms parts into structures to meet objectives • Uses structure as a target for planning and decision-making • Information Sources (Industry Best Practices) • ITIL Version 3 • COBIT • PMBoK • CMMI • ISO/IEC 20000 • ISM Process Models/Project Experience • Framework for IT Success Uses • Process Definition (Individual and Group) • Performance Improvement Strategies – Processes, Tools • Planning Tool – Strategic, Tactical and Operational • Aligning IT with the Business – “Running IT as a Business” • Organizational Roles and Responsibilities 20

21. Virtualization Planning and Management Process • Change Management (“Gatekeeper” for Production Environment) • Release Management • Problem Management • Service Level Management • Others via Change Management : Quality Management, Service Continuity, Availability/Capacity, Asset/Configuration 21 • Description: Plans, designs, deploys, and manages the virtualized components of the production environment • Key Relationships: Planning Processes Operational Processes • Risk and Compliance Management • Service Level Management • Event Management • Availability and Capacity Management • Security Planning and Management • Service Continuity Management

22. Virtualization Planning and Management Process 22 • Best Practices: • Technology should not be the driving factor for Virtualization – Virtualization must fulfill a set of business requirements • Develop comprehensive Virtualization Management and Support Strategy and corresponding Plans • Isolate critical or sensitive systems • Develop using cross-functional teams • Manage all VM deployments using Change Management process which inter-relates with many of the processes mentioned above

23. Effect of Virtualization On Operational Model Effects of Virtualization 23 • Currently: • Most Business Process Models (Architectures) are based upon “static” defined processes and physical relationships between Configuration Items / Assets (e.g., ITIL V3) • IT Operations and Performance Management tools automate processes based upon this “static” model • Approach for Virtualization: • If no Business Process Model is defined and documented today, this could be the catalyst • If there is, move the Business Process Model from Physical to Virtual (P2V) • Focus the new model around defining and delivering IT Services, including the qualitative measurements and metrics (e.g., ITIL V3)

24. Change Management Process • Description: Plans, manages, and controls all changes to the production environment • Effects of Virtualization: • Change Management Process • Impact Analysis of Planned and Emergency Changes • Change Back-outs • In support of related processes • Risk and Compliance Management • Availability / Capacity Management • Release Management • Quality Management • Service Continuity Management • Asset / Configuration Management Effects of Virtualization 24

25. Change Management Process Effects of Virtualization 25 • Approach to refine Change Management for Virtualization • Change Manager needs to revise their Change Definition Checklist to include Virtualization • Require virtualization representation on the Change Advisory Board and at Post-Implementation Review meetings • All Process Owners are responsible for revising their respective processes to support a virtualized environment • Thoroughly understand the impacts of Virtualization on their processes • Revise roles and responsibilities, business rules, measurements and metrics • Develop requirements for new and improved operations and performance management tools

26. Effect of Virtualization On Organization Structure • Currently: • Technical and operational expertise (Probably not in agreement of how to support a Virtualized environment) • Management disciplines and governance were developed over time to support a physical environment (Probably not at the level required to support a Virtualized environment) • Approach for Virtualization: • Establish ownership of the Virtualization Planning and Management process – Must work closely with other Process Owners because VPM has significant impact • Establish Virtualization Manager • Understands the whole production environment from a technical perspective • Is responsible for managing Virtualization strategies and plans and resolving all Virtualization issues (Attends Change Advisory Board meetings) • Strong relationship with the strategic Virtualization vendors Effects of Virtualization 26

27. Effect of Virtualization On Measurements and Metrics • Measurements and Metrics - Quantitative (how many?) vs. Qualitative (how well?) • Currently: • Quantitative measurements are justifying Virtualization investments – Dollars saved on servers, facilities, energy, and staff • Validity of current qualitative results could be suspect (e.g., Problems caused by Changes) • Approach for Virtualization: • Determine impact of Virtualization on IT’s Mission, Goals and Objectives, Critical Success Factors, KPI’s, and current measurements/metrics • Revise all processes to deliver redefined quantitative and qualitative measurements (e.g., Service Level Agreements, Business Value, Customer Satisfaction) in support of Virtualization Management and Support Strategy Effects of Virtualization 27

28. Effect of Virtualization On IT Management Systems • Currently: • Most operations and performance management systems (e.g., monitoring tools) are mature in support of a physical model in the quantitative sense, but less mature in qualitative sense • All current systems and tools are immature in support of virtual model in both quantitative and qualitative sense • Major enterprise management tool vendors (HP, CA, IBM) - Trying to catch up with the technology • Virtualization vendors (VMware, Citrix, Microsoft) are focused on improving their technology, not building management support tools • Approach for Virtualization: • Define the new systems requirements during revision of the IT processes • Map to management systems and tools of major enterprise management vendors (HP, CA, IBM), to Virtualization vendors (VMware, Citrix, Microsoft), and to in-house systems and tools • Apply a “muscle management” style until mature operational and performance systems are available Effects of Virtualization 28

29. Addressing the Challenges • Lack of formalized strategy, planning, testing, and deployment disciplines • Process – Define the Virtualization Planning & Management (VPM) process to support your organization • Strategy – As output of VPM process, define the strategy to manage and support a Virtualized environment • Increasing complexity of the operational production environment • Process – Tightly align VPM process with Change Management, which serves as “gatekeeper” to the production environment • Management Systems – Fill the current gaps in operations and performance management tools to support Virtualization – Through defined processes and/or vendor or in-house tools • Lack of visibility and oversight by business management • Governance – Align the Virtualization Strategy with Enterprise and IT Governance principles • Process – Align the VPM process with Enterprise and IT risk management-related processes and report results to Enterprise management Effects of Virtualization 29

30. Addressing the Challenges • Lack of formalized roles and responsibilities with new service delivery model • Organization Structure – Establish ownership and accountability for Virtualization within senior IT management team • Process – Define process roles and responsibilities within the VPM process, including Process Owner and Virtualization (Process) Manager • Immaturity of operations and performance management systems and tools • Process – Align VPM process with other Service Delivery and Support processes • Management Systems - Develop/update process automation requirements and select/implement operations and performance management systems • Lack of management measurements and metrics • Governance – Take a top-down, Balanced Scorecard or Management Dashboard approach to defining management measurements – Mission, Critical Success Factors, Key Performance Indicators • Process / Measurements – Align VPM process with other processes to provide qualitative measurements (Service Level Agreements, Business Value, Customer Satisfaction) Effects of Virtualization 30

31. Key Concepts – Final Thoughts • Virtualization Planning and Management Effects of Virtualization The world we’ve made is a result of the level of thinking we have done thus far, creating problems we cannot solve at the same level of thinking.Albert Einstein • Virtualization requires a significant change to the Service Delivery Business Model – From managing a physical production environment to a virtual or mixed virtual/physical production environment • No formalized business management Best Practices or Silver Bullets available from any research or governance entity – Requires solid strategy, thorough planning, and effective process management disciplines to improve the operational maturity of a virtualized environment 31

32. QUESTIONS and ANSWERS Thank You

33. WHAT IS VIRTUALIZATION? • Virtualization • Presents hardware resources as virtual resources, i.e.: • Compute (CPU/Memory) • Storage (Disk) • Network Interfaces (NIC) • Allows managed sharing of hardware resources • Presents standard hardware to “Guest” operating systems running inside virtual machines (VMs) • Frees software from physical hardware dependencies

34. WHAT IS VIRTUALIZATION? “We’re finding that security is the forgotten stepchild in the virtualization buildout.” - Steven Elliott, IDC “It’s easy to make a VM. People create lots of VMs. VMs increase complexity and connections geometrically.” - Erik Worbel, Director of Product Management, VMware Corp. “Hyper-V will ultimately mean that the power of virtualization will reach the masses and that virtualization is no longer an 'if' but a 'when.'  The 'when' pretty much just became 'now'.” - Mark Bowker, Enterprise Strategy Group

35. GROWTH OF VIRTUALIZATION • How many virtualization hosts does your organization have? Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments

36. GROWTH OF VIRTUALIZATION • How many virtual machines does your organization have? Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments

37. GROWTH OF VIRTUALIZATION • Percentage of your servers that will be virtualized by the end of 2010? Source: April 2008 – InformationWeek Analytics – Managing Virtual Server Environments

38. GROWTH OF VIRTUALIZATION • Conventional x86 server sprawl • 36M physical servers by 2011 – a ten fold increase in 15 years* • $140B in excess server capacity – a three year supply* • Operating costs • $8B in maintenance for every $1 spent on new infrastructure* • 20 – 30:1 server-to-admin ratio** • Power and cooling • 50c for every $1 spent on servers*** • $29B in power and cooling industry wide*** *IDC Doc #207044 – U.S. and Worldwide Server Installed Base 2007-2011 **Source: VMware Corporation ***IDC Doc #206035 – Virtualization and Multicore Innovations Disrupt The Worldwide Server Market

39. GROWTH OF VIRTUALIZATION • Lower operating cost • Fewer hardware platforms • Can be as much as 50% reduction in hardware • Boost CPU utilization • Multiple VMs on a single host can reclaim unused CPU cycles • Faster server provisioning • 50 – 70% reduction in deployment of new servers • “The Microsoft factor” • Microsoft Hyper–V will be an integral, standard component of Microsoft’s 2008 Server

40. ADVANTAGES AND DISADVANTAGES • Advantages • Less power consumption • Less rack space • Agility within the enterprise • Instant provisioning • Consolidation and commoditization of server hardware • More efficient use of staff • Improved resource allocation • High availability (VMotion) • Distributed Resource Scheduling (DRS-Load Balancing) • File encapsulation

41. ADVANTAGES AND DISADVANTAGES • Disadvantages • Server sprawl (VMs) • More robust hardware • Configuration errors • Detrimental effect of hardware failure can be amplified • Complexity of the virtual environment • Requires more detailed planning prior to deployment • Compromise of the ESX host could effect VMs • Possible compromise of the Virtual Console • Greater impact if an attack were successful • Acquisition, management and security of offline storage