The Evolution of Virtualization

1. The Evolution of Virtualization

2. The Evolution of Virtualization Virtualizeddata center On-premises dynamic data center—private cloud Traditionaldata center Off-premises dynamic data center—public cloud • Capacity on demand • Global reach • Well-known, stable, and secure • Utilization <15% • Utilization increases to >50% • Management costs decrease • Management costs decrease significantly • IT as a Service • Chargeback

3. Microsoft’s Virtualization Strategy • Microsoft integrated virtualization vision: • Integrated architecture • Common management system • Comprehensive licensing • Microsoft competitive feature set: • Multi-vendor hypervisor management • Guest monitoring • Simplified, integrated management • Extensive automation to further reduce costs of management • Long-term commitment to virtualization and management: • Windows Server 2008 R2 with Live Migration • Windows Server 2008 R2 SP1 with Dynamic Memory • System Center Virtual Machine Manager 2012 • New versions of System Center family of products

4. How Is Virtualization Being Used? ImplementVirtualization • LeverageVirtualization Use Virtualization Rapid provisioning High availability Business continuity Server consolidation Energy and space reduction Business value Dynamic data centers and desktops Accelerated responsiveness “Why is virtualization such a big deal? A lot of people understand, and they think it's about saving money, it's about saving power, it's about green IT, it's about space, and that's certainly true. But in our perspective, it's much, much bigger than that, and people are just now beginning to understand that. We think that there's a major transformation taking place in IT. This major transformation that's been taking place for years is starting to accelerate, and we believe that virtualization is a major enabler and catalyst of that transition that's taking place.” - Tom Bittman, Gartner VP and Chief of Research of Infrastructure and Operations, at Microsoft’s Virtualization Launch Event

5. Versatile and reliable platform for all of your infrastructure and application requirements Labor/Productivity Software Hardware & Facilities Reduce hardware, facilities, power through virtualization Reduce power consumption Reduce network bandwidth Automate deployments Automate administration Remote management Work remotely Broad capabilities, reduce suppliers Unlimited virtualization rights with data center edition Align return with investment Solid Foundation for Enterprise Workloads Security Business Continuity & Compliance Data protection Network access Best practices analysis Performance, redundant systems, & sites Dynamic infrastructure Robust audit infrastructure

6. Hyper-V Server 2008 R2 SP1Key features • Live migration • New processor support • Improved performance • Lower power costs • Enhanced scalability • Greater VM density • Lower TCO • Networking enhancements • Improve performance • 10 Gb/E ready • Dynamic VM capabilities • Enhancements to server core • Ease management • Lower TCO • Dynamic Memory andRemote FX

7. Dynamic Memory • Benefits • More efficiently utilizes physical memory • Enables accurate guest memory sizing • Enables higher consolidation ratios • A production feature • Overview • Memory is pooled and dynamically distributed across VMs • Memory is dynamically allocated/removed based on workload—no service interruption • Guest enlightened: guests and Microsoft Hyper-V work together

8. Rapid Provisioning—Business Agility Conventional Method Virtual Method Requestor submits online or email server request—or does it themselves via Self-Service Portal IT locates a host with available CPU and memory Virtual machine template is chosen and loaded on the host Configuration is verified Guest becomes available No supply chain costs Elapsed time? Hours! • Requestor submits purchase request • Waits for purchase approval • If approved: • Server ordered • IT needs to plan and allocate physical space and power • Server arrives (Time? Days?) • Physical installation • OS loading, patching, and so on • System ready • Supply chain costs incurred • Elapsed time? Weeks?

9. Hyper-V Licensing in the Data Center … … • Licensed per server • 1–4 processors • 32 GB RAM • 1 physical OS (POSE) • 1 virtualized OS (VOSE) • Workload: Physical servers and single-instance VM • Licensed per processor • 2 processor socket minimum • 1–64 processors • 2 TB RAM • 1 physical OS (POSE) • UNLIMITED virtualized OS (VOSE) • Workload: Highly virtualized server • Licensed per server • 1–8 processors • 2 TB RAM • 1 physical OS (POSE) • 4 virtualized OS (VOSE) • Workload: Lightly virtualized server

10. Windows Server OS Comparison Standard—1 VM Enterprise—4 VMs Datacenter—Unlimited VMs All costs represent 8/10 EZVL annual pricing EA Level A at signing

11. Hyper-V Server 2008 R2 SP1 ApplicationWorkload Performance • Microsoft commission ESG Labs to test the performance and scalability of Hyper-V server virtualization technology • Microsoft SharePoint 2010, Microsoft SQL Server 2008 R2 and Exchange 2010 workloads were tested with Windows 2008 R2 SP1 to confirm Hyper-V R2 SP1 can be used to virtualize tier-1 applications • The successful outcome demonstrated a lower total lower cost of ownership, increased scalability, and maintained performance

12. SharePoint 2010 Application Workload Performance Summary of Results • Adding web server VMs increased the number of 1% concurrent SharePoint users from 252,600 to 460,800. • Average page response times improved as web servers were added. • Average page response times were faster than the Microsoft-recommended guideline of 1–2 seconds.

13. SQL Server 2008 R2 Workload Performance Summary of Results • Hyper-V R2 SP1 on a single physical server was used to deploy virtualized SQL Server 2008 R2 databases for 20,000 through 80,000 OLTP customers. • Aggregate performance scaled up to 3,526 SQL Server batch requests per second during the four-VM test. • Average transaction response times remained low (under 150 milliseconds) as VMs were added.

14. Exchange 2010 Workload Performance Summary of Results • A single server virtualized with Hyper-V R2 SP1 scaled to meet the I/O)performance requirements of 20,000 Exchange 2010 mailboxes. Exchange database read response times remained well below Microsoft-recommended maximum of 20 milliseconds as VMs were added. • Exchange 2010 Tested Solutions that were fully virtualized with Hyper-V R2 SP1 met the scalability and performance requirements of 9,000 through 32,000 highly available Exchange 2010 mailboxes.

15. Hyper-V Case StudiesAvailable on Microsoft.com “ Hyper-V technology helps us run many virtual servers on a single cluster with performance nearly equal to a ‘native’ operating system. The result is a powerhouse of performance, manageability, and scalability. “ Dale ChristianChief Information Officer Avanade Hyper-V is an enabling technology that allows us to move toward a properly managed and standardized environment without increasing our costs. “ “ Marcel BerkhoutManager of Technical Services in the Americas Ingersoll Rand

16. Data Center Management Integrated, Comprehensive, Automated

17. Data Center Management Is An Expensive, Disconnected Set of Processes • Tool 1 • Tool 2 • Monitoring Operator • ApplicationConfiguration Administrator Dinner Now Web Order01 Order Tracker DN App. • Tool 3 • Tool 4 • Tool 5 • Windows Server/Virtualization Administrator • Storage Administrator • Network Administrator Dynamic Management

18. Data Centers: Servers, Management, PowerRapid growth in management spending and virtual machines WW Spending on Servers, Power and Cooling, and Management/Administration Millions Installed Servers Customer Spending ($B) Virtualization Management Gap Source: IDC Doc # DR2010_T2_MB

19. Drive IT Automation Across the Lifecycle to Deliver Quality IT Services Data Protection and Recovery Design, Configure, and Deploy IT Service Management Monitor and Manage Service End-to-End Virtualize, Deploy, and Manage IT Process Automation

20. System Center 2012 andData Center Management Productive Infrastructure Predictable Applications Your Cloud Deliver flexible and cost-effective infrastructure with what you already know and own Predictable application service levels delivered by leading monitoring experiences and deep application insight Private and public cloud computing on your terms managed with a common toolset • Heterogeneous support • Process automation • Self-service infrastructure • Comprehensive application manageability • Service-centric approach • Deep application monitoring and diagnosis • Flexibility with delegation and control • Common console across clouds • Physical, virtual, and cloud management

21. Requirements, Challenges, and Opportunities for Data Center Management Deliver Reliable Services Operational Efficiency Improved Business Responsiveness IT service availability and performance-driving investments Application-focused virtualization/ management becoming increasingly important Mixed environments add complexity Virtualization still seen as key driver to reducing operational costs Need to efficiently manage virtualized environments Compliance costs continue to rise with increased regulatory pressures Cloud computing increasing expectations of IT in terms of agility and costs Unpredictable business demand for data center services Need for elastic and flexible IT capabilities to meet business demands Optimize service delivery Enable cloud computing Centralize management, invest in automation

22. Microsoft’s Key Messages • Built-In Virtualization—Foundation for Cloud • Virtualization built into the operating system with Windows Server 2008 R2 Hyper-V virtualization technology • Virtualization in the management platform with the System Center suite of solutions • Only solution with clear path for infrastructure and management into the cloud, with Windows Azure and System Center • Unified, In-Guest Management • Virtualized data centers and cloud infrastructures need comprehensive, physical, and virtual management • Comprehensive automation to reduce cost and increase efficiency • Only Microsoft System Center suite delivers: • Unique heterogeneous management (Hyper-V, Linux, VMware) • Host and unique in-guest management of applications and services • Integrated physical and virtual OS management • Single infrastructure, single license • Coexistence with (no need to rip and replace) other hypervisors

23. Virtualization SummaryWhy enterprises are excited about Microsoft virtualization End-to-end management with System Center It’s the platform you know Data center to desktop Best total cost of ownership (TCO)/return on investment (ROI) Key feature of platform Fraction of the cost Full range of products and solutions Physical and virtual andcross-hypervisor Significant savings Large partner ecosystem Interoperability Tools you know Lower ongoing costs Proven value Manage and secure all Windows Development to production Cost comparisons can be found at http://www.microsoft.com/virtualization/en/us/cost-compare-calculator.aspxandhttp://www.vmware.com/vmwarestore/

24. Microsoft’s Approach Virtualizeddata center On-premises dynamic data center—private cloud Traditionaldata center Off-premises dynamic data center—public cloud • Capacity on demand • Global reach • Well-known, stable, and secure • Utilization <15% • Utilization increases to >50% • Management costs decrease • Management costs decrease significantly • IT as a Service • Chargeback

25. System Center Cloud and Data Center Management Product/Capability Roadmap and Description

26. System Center Data Center andCloud Management Components Operations Manager Virtual Machine Manager System Center Codename “Concero” Advisor GA Q1 CY12 GA Q1 CY12 GA Q1 CY12 RTW cadence, SA benefit • Provision flexible and cost effective IaaS • Provision bare metal to fabric in a few clicks: pool and allocate data center resources (storage/network/compute cluster) • Bare-metal server deployment • Flexible delegation and role-based access control • Service centric approach • Service modeling templates • Image-based management • Server App-Virtualization (SAV) • Multi-hypervisor support • Unified management for Hyper-V, VMware vSphere 4.1, and Citrix XenServer virtualized environments • Optimize service delivery • Dynamic optimization based on workload demands • Expanded Windows PowerShell support • OVF support • SMI-S storage support • Deep application monitoring and diagnostics; “dev-ops” • End-to-end transaction monitoring • Monitor .NET apps (AVIcode) • Monitor Java application servers • Java applications management pack framework for third parties • Network Monitoring • Network topology discovery • Network troubleshooting • Easy to create, use, and share SLA dashboards and reports • Full integration of AVIcode capabilities into Operations Manager (with System Center 2012, AVIcode will no longer exist standalone) • Common application self-service console across clouds • Span multiple VMM servers • Register and consume capacity from multiple Windows Azure subscriptions • Enable multiple users authenticated using enterprise AD to access single Windows Azure subscription • Application deployment and configuration • Deploy and manage services and VMs on private clouds created with VMM 2012 and Windows Azure • Copy service templates (and resources) from one VMM server to another • Copy Windows Azure configuration, package files, and VHDs between Windows Azure subscriptions • Proactively avoid problems with server deployments through ongoing assessment and configuration alerting from a cloud service • Resolve issues faster by providing support staff current and historical views into workload configurations • Reduce downtime and improve performance of servers through proactive scanning for known configuration issues and best practices

27. System Center Data Center andCloud Management Components Service Manager Data Protection Manager Orchestrator Configuration Manager GA Q1 CY12 GA Q1 CY12 GA Q1 CY12 GA Q1 CY12 • Centralized management console • Monitoring, troubleshooting, and remediation from single pane of glass • Remotely manage DPM infrastructure • Role-based access • Extensibility and data deduplication • Full application protection • Restore as files • Integration with key deduplication vendors • Enhanced best-of-breed protection for Hyper-V, Exchange, SharePoint, and SQL Server • Item-level recovery for Hyper-V and SharePoint • Near continuous host-level backup • Service catalog • Customizable request process • Role-based access • IT service management • Release management • Service request fulfillment • Reporting and dashboards • Centralized data warehouse • Easy to use authoring • Integrated management (enabled by CMDB) • Orchestrator run book connector • VMM service template connector • Deeper integration and extensibility • Integration pack refresh • Additional data center workflows (richer integration with System Center components—such as for Service Manager Service Catalog) • Support for ODATA web services standards • Expanded PowerShell support • Enhanced community support • Enhanced user experience with Microsoft Silverlight console • Traditional/physical server provisioning • Server and in-guest provisioning • Desired Configuration Management (DCM) • In-guest DCM • Drive compliance by managing configuration drift • Inventory