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Business Transformation: The True Case for Virtualizing SAP and Other Tier 1 Applications

Business Transformation: The True Case for Virtualizing SAP and Other Tier 1 Applications Marco Colombo VMware Forum VMware Inc. All rights reserved Why Virtualize? Save Money Save Energy Increase
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Business Transformation: The True Case for Virtualizing SAP and Other Tier 1 Applications Marco Colombo VMware Forum VMware Inc. All rights reserved Why Virtualize? Save Money Save Energy Increase Speed Increase Availability VMware, Inc. Why Virtualize Tier 1 Applications? Enhance Availability Enhance Agility & Flexibility Reduce CAPEX & OPEX Increase Quality of Service VMware, Inc. Proprietary and Confidential Why Virtualize Tier 1 Applications? For each of the benefits your company has achieved by virtualizing Tier 1 business critical applications, please approximate the amount of improvement compared to before virtualization. Improved security Better compliance management 63% 64% Accelerated test and development cycles Improved business continuity and disaster recovery Increased efficiency Reduced software licensing cost Better quality of service Reduced infrastructure cost 60% 60% 59% 58% 58% 57% 52% 54% 56% 58% 60% 62% 64% 66% The Hidden Truth of Virtualizing Business Critical Apps, IDG Research, March 2011 Organizations which have virtualized Tier 1 applications have realized significant business benefits, specifically over 60% in BCDR, security/compliance, and test/dev cycles 4 The Next Frontier: Tier 1 Application Workloads % of Tier 1 Workload Instances That are Virtualized 56% 57% 53% 52% Jan 2010 Jun % 38% 47% 47% 43% 34% 41% 35% Mar % 28% 28% 25% 25% 18% Microsoft Exchange Microsoft Sharepoint Microsoft SQL Oracle Middleware Oracle DB SAP Source: VMware customer survey, Jan 2010, Jun 2011, Mar 2012 Question: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized VMware, Inc. Proprietary and Confidential SAP is the Fastest Growing Workload on VMware % of Workload Instances That are Virtualized With VMware 10% Growth 06/11 and 12% 03/12 Jan 2010 Jun 2011 Mar % 48% 52% 38% 40% 25% 31% 28% 18% MSFT ORCL SAP Source: VMware customer survey, Jan 2010, Jun 2011, Mar 2012 Question: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized. 6 Confidential When To Virtualize Tier 1 Business Critical Applications? Generally Hardware or software refresh Uptime and compliance issues Mergers or rapid business transformation Microsoft Exchange Exchange 2010 upgrade cycle (no in-place upgrade from either 2003 or 2007) Issues with DAG or clustering Microsoft SQL Server SQL version upgrade (e.g. 2005, 2008, 2012) Changing Microsoft licensing from Enterprise to Datacenter Microsoft SharePoint SharePoint version upgrade (e.g to 2010) Migration from other collaboration platforms/applications Oracle Creating cost-effective development and testing environments quickly Underutilized Oracle database servers that need consolidation SAP ERP New SAP install SAP upgrade cycle Migration to 64-bit NetWeaver New SAP modules (e.g. CRM, BW, SCM) Unix-to-Linux Migration Cost-cutting or end of lease Changing database platform (e.g. DB2 to Oracle) Enterprise Java Scalability issues (e.g. parallelism or data latency) Application downtime due to frequent software and system upgrades 7 8 A strategic partnership A Strategic Partnership Virtualizing all IT assets from the desktop through the datacenter to the cloud using a common virtualization platform, to create a dynamic, flexible infrastructure for the business VMware vsphere, vcops, SRM, vcns 9 A Strategic Partnership CC, Co-Innovation Labs, CoE VMware Virtualization Competency Center for SAP in Walldorf Demos and sales presentations Trainings and customer seminars Virtualization assessments and POCs VMware member in SAP Co-Innovation Lab in Palo Alto and Tokyo Development of SAP on VMware solutions Customer demos and presentations VMware is a member of SAPs Enterprise Virtualization Community VMware runs SAPs Center of Excellence infrastructure in Walldorf VMware, Inc. A Strategic Partnership - Aligned Services SAP Consulting Transform existing system landscapes into business process platforms Deliver trusted information and enable adaptable processes Govern and optimize IT operations VMware Professional Services Accelerate time-to-value of a virtual environment Maximize return on investment for VMware products and solutions Raise organizational awareness and increase understanding of a BCA virtualized environment Combined support of two proven technology leaders Certified consultants using proven services methodology End-to-end expertise in SAP virtualization and cloud migration: from infrastructure to applications and data 11 A Strategic Partnership Sapphire 2011 Announcements SAP and VMware are engaging in joint activities to help customers accelerate their virtualization transformation: Reduce TCO: Standardize infrastructure and increase utilization to cut CAPEX Minimize time-to-value: Leverage automation to provide new systems at an instant to increase flexibility VMware, Inc. A Strategic Partnership Sapphire 2012 Announcements 13 Confidential Virtualized SAP Solutions: Fundamentally Better SAP Upgrade & Implementation Faster time-to-service for upgrades and implementations Ease complexity of landscape transitions Minimize risk in implementation and operation Availability & Disaster Recovery Transition to an open and flexible platform Increase agility and ability to quickly scale up and down, as required Operational Costs & Service Levels Improve SAP service levels (uptime and performance) Massively lower unit costs (OPEX, CAPEX) Green IT save energy X 14 Virtualized SAP Solutions: A Strong Market Adoption Does your company already utiliize solutions for virtualizing servers? Which company produces the virtualization solution for your SAP database servers? SAP Test & Development (and other) 7% 43% 100% 90% 80% 70% 63% Productive SAP environment (and other) 53% Fax-/Mailserver (and other) 25% 60% 50% 40% 30% 20% 16% Not in use 13% Pre-productive 2% 10% 0% 7% 8% 1% 2% 3% VMware IBM HP Microsoft Citrix FTS Oracle/SUN Source: RAAD, GER, May/June 2012, SAP customers, n = 300 Source: RAAD, GER, May/June 2012, SAP customers, n = 101, d = 1 15 SAP NetWeaver LVM integrates with vcenter SAP NetWeaver Landscape Virtualization Manager Helps You: Provision systems in hours instead of days by automating manual tasks Customer example: System clone: 5 min Post copy tasks: 30 min System refresh: 45 min React to changing business requirements in minutes instead of hours, using Automatic Capacity Management Customer example: Dialog instance scaling: 3 min Radically simplify landscape management with end-to-end landscape visibility and LVM as the single point of control SAP Solution Manager Management Framework Network IT Infrastructure IT-Infrastructure Servers Virtualization Private or Public Data Center or Cloud SAP and non-sap Applications Storage SAP LVM reduces SAP TCO VMware, Inc. SAP HANA SAP s In-Memory Database Technology HANA DB HANA Studio HANA Appliance HANA Application Cloud 17 SAPA HANA running on VMware vsphere SAP and VMware are bringing a new deployment architecture for SAP HANA to customers. Benefits By deploying SAP HANA on VMware vsphere, customers can use a datacenter platform that can offer agility, cost savings, and easy provisioning Customers will have the ability to provision instances of SAP HANA in virtual machines faster, as well as use advanced datacenter capabilities of VMware vsphere, such as Dynamic Resource Scheduling and vsphere vmotion Enables SAP HANA to operate on a VMware deployment architecture that is commonly found in SAP customer datacenters Validated and certified SAP technology partners are expected to offer virtualized SAP HANA appliances for test and development. HP already announced on 15/Nov 18 SAP HANA: Real Numbers SAP HANA running on vsphere: What s the big deal? 77 minutes 70 retailers 460 billion records 50 terabytes of data Before SAP HANA Runs 355x faster 13 seconds With SAP HANA 0.04 seconds analysis response time on any device anywhere, anytime + = seconds 10% overhead for value of virtualization Automated + managed + portable + lower TCO Please refer to the latest SAP HANA Hardware sizing for the latest certified hardware sizes for maximum storage size o SAP HANA 1.0. Above tests were done in the SAP Lab with customer data-sets SAP AG. All rights reserved. 7 19 SAP & Tier 1 Application Virtualization Customer Success Stories 20 SAP on VMware: Customer Feedback SAP Upgrades & Implementations: SAP Release Upgrade in 36 hours (Hospital Biel) We had only three months to implement, but we made it! (FutureFuel) Provisioning in 30 minutes instead of 8 hours. (Checkpoint Systems) Availability & Disaster Recovery: As high as 99.99% uptime (NuVasive) Recovery of core business systems can be completed in two hours. (ABB Grain) Operational Costs & Improved Service Levels: Lifecycle management of VMs on 600+ VMware ESX hosts (SAP Global IT) 14% reduction of SAP operation cost.(vms AG) 30-40% cost savings (T-Systems) 81% IT infrastructure cost reduction (C. Rob. Hammerstein) 75% CO2 savings = 510 tons per year (Rehau) 21 VMware & SAP: Joint Customer Successes Around the world, top-tier companies have successfully virtualized SAP. 22 Case Study: Future Fuel Chemical Company Business Challenge: Build an easily managed, high-availability infrastructure to support SAP ERP and develop it cost-effectively in just four months using VMware infrastructure. Results: Performance: Mission-critical applications, including SAP ERP, run smoothly with high availability Mitigated Risk: The company s data center is about 90% virtualized Improved Service: New servers are created within minutes, instead of hours or days required for physical servers Lowered TCO: Major savings on hardware and maintenance, including $100K on the labor costs of developing a SAP solutions-based infrastructure The consultants working with us on our SAP implementation never knew we were running everything on VMware because virtualization didn t present any problems. At the end of the project, one consultant asked how I was able to add servers and make memory upgrades so quickly, I confessed: I m not really working harder, just smarter thanks to VMware. - Senior Engineer, FutureFuel Chemical Company 23 Real World Application at BASF IT Services VMware and SAP Virtualization Assessment Service Challenge: Assess whether virtualized disaster recovery site for SAP, while running a traditional physical production environment, would be flexible enough to use during normal operations. Result: Determined that virtualization of SAP for DR environment was not only possible, but would meet the customer s requirements using VMware technologies. It was extremely valuable to our organization that VMware and SAP jointly delivered an aligned concept for both the application and the infrastructure. I am very satisfied with the result and am confident that this concept gives us the chance to implement a DR site which will ensure the safety of our business requests. - Harald Wickenheiser, BASF IT Services 24 SAP s Internal Cloud Runs on VMware We have a very good strategic relationship with VMware and with operational support, that s necessary with challenges often more complex than in traditional settings. Dr. Wolfgang Krips, SVP Global IT, SAP SAP s global infrastructure is 80% virtualized, running 25K VMs Private cloud houses all critical app servers and supports its entire training business and development systems Storage reduction up to 62% on virtualized server environment on regular database volumes TCO of a virtual servers is 50% of physical In 2010 virtualization saved 10M EUR in operating costs and over 75m KWh of power consumption 25 Their Cloud, Their Business: SAP Deploying VMware has enabled us to eliminate the two-month delays that our business clients often experienced before gaining access to a piece of testing hardware, while ensuring we can optimize performance for databases and applications. Tony Marion, IT Director One of largest Oracle E-Business Suites in the world had bloated physical infrastructure with low utilization rates and low agility Consolidated 360 servers down to 70 Virtualized gateway obviates need for 300 additional physical servers, paves way to expanded Web services Virtualized Tier 1 apps: Oracle e-business Suite, Oracle Database, SAS, IBM Lotus Notes, custom statistical applications 26 VMware & SAP Resources SAP info on the VMware web site SAP Community Network Deployment Guides, Best Practices, Whitepapers VMware Business Critical Apps Blog Application Solution Guides Virtualising SAP Knowledge Vault 27 27 Next Steps Talk to your SAP Base team to find out the following: What does your current SAP infrastructure look like? What are your base requirements around workload per SAP application, performance, throughput, availability, disaster recovery and backup? Are there any change planned in the near future, e.g. migration, upgrade or enhancement of the current SAP implementation? Engage with your VMware PSO team or System Integration Partner of choice (VMware BCA certified) for a first Value and Discovery Workshop 28 29
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