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How Multi-Core Technology Will Influence Traditional Models of Software Licensing. Margaret Lewis AMD Commercial Solutions Strategists. Virtual Machine. Virtual Machine. Virtual Machine. Software Licensing Technology Pressures.

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How multi core technology will influence traditional models of software licensing l.jpg

How Multi-Core Technology Will Influence Traditional Models of Software Licensing

Margaret Lewis

AMD

Commercial Solutions Strategists


Software licensing technology pressures l.jpg

Virtual Machine of Software Licensing

Virtual Machine

Virtual Machine

Software LicensingTechnology Pressures

  • Technology trends are pushing against the boundaries of traditional software licensing

    • Multi-core processors

    • Virtualization

    • Grid computing


Software licensing user pressures l.jpg
Software Licensing of Software LicensingUser Pressures

  • Users continue balk at significant increases in software costs for emerging technologies

  • Many ISVs are resorting to one-off licensing to address user concerns

  • Industry continues to debate software licensing models


Why multi core technology l.jpg
Why Multi-Core Technology? of Software Licensing

  • More performance without increasing costs

  • More CPU horsepower in smaller footprint

    • Smaller form factor provides more CPU capabilities

    • Industry-standard server provide the capacity of high-end proprietary servers

  • Better leverage existing infrastructure

    • Increased performance with same power requirement as single core

    • More servers per rack


Why multi core processors l.jpg

SPECweb®99_SSL of Software Licensing

4P server with

AMD Opteron™ Model 875

7538

4P server with

Itanium2 1.6 GHz 9MB L2 cache

4986

2P server with

AMD Opteron™ Model 275

4240

4P server with

Xeon 3.33 GHz 8MB L3 cache

3732

Why Multi-Core Processors?

More horsepower for less space and power

  • 2P Dual-Core AMD Opteron™ processor-based server out performs 4P single-core server

  • 4P Dual-Core AMD Opteron™ processor-based server has 2x the performance of a 4P single-core server


Why multi core processors6 l.jpg
Why Multi-Core Processors? of Software Licensing

Increases performance without increasing infrastructure costs

IDC believes that dual-core processing could accelerate workload shifts from mid- and high-end systems to entry- or volume-server-based platforms

Vernon Turner, group vice president and general manager of Enterprise Computing, IDC

http://www.egenera.com/display_pr.php?id=218


Eliminating architectural bottlenecks l.jpg

CPU of Software Licensing

CPU

CPU

CPU

CPU

CPU

8 GB/S

SRQ

SRQ

Crossbar

Crossbar

Mem.Ctrlr

Mem.Ctrlr

HT

HT

8 GB/S

8 GB/S

PCI-E Bridge

PCI-E Bridge

Memory Controller Hub

I/O Hub

PCI-E Bridge

8 GB/S

Eliminating Architectural Bottlenecks

PCI-E Bridge

I/O Hub

PCI-E Bridge

PCI-E Bridge

I/O Hub

USB

PCI

  • AMD64 Technology with

  • Direct Connect Architecture

  • Industry-standard AMD64 technology

  • Direct Connect Architecture helpseliminate bottlenecks of traditional front-side bus architecture

  • HyperTransport™ Technology interconnect for high bandwidth and low latency

  • Legacy x86 Architecture

  • 20-year old front-side bus architecture

  • CPUs, Memory, I/O all share a bus

  • Major bottleneck to performance

  • Faster CPUs or more cores ≠ performance


Why multi core processors amd opteron processor pricing l.jpg
Why Multi-Core Processors? of Software LicensingAMD Opteron™ Processor Pricing


Multi core processors software licensing update l.jpg
Multi-Core Processors of Software LicensingSoftware Licensing Update

“The introduction of dual and multi-core processing is triggering a long overdue debate and forcing software vendors to reassess the way they've traditionally sold enterprise software.”

David Znidarsic, vice president of technology, Macrovision


Multi core processors software licensing update10 l.jpg

Execution Cores of Software Licensing

Core 000

Core 001

Physical Processor

Multi-Core ProcessorsSoftware Licensing Update

Industry has been forced to re-evaluated the definition of a “processor”

  • Silicon package defines the “physical” processor

  • Processor has two or more execution cores

  • Number of cores becoming a feature that drives improved performance and efficiency


Multi core processors software licensing update11 l.jpg
Multi-Core Processors of Software LicensingSoftware Licensing Update

Software Licensing Trends

  • Trend with ISV’s surveyed is to move toward a usage or financial metric as a major licensing method

Key Trends in Software Licensing – survey by Macrovision, Oct 2004


Multi core processors software licensing update12 l.jpg
Multi-Core Processors of Software LicensingSoftware Licensing Update

  • Software most likely to license by processor:

    • IT Infrastructure

    • Database

    • Business Processing

  • Software least likely to license by processor:

    • Operating Systems

    • Application Development

    • Web Infrastructure

    • Collaboration

    • Decision Support

    • Virtual Processing/Grid/Cluster software

Software Licensing in Multi-core, Multithreaded, and Virtual Environments: Executive Interviews, IDC Special Study, Sept. 2005


Multi core processors software licensing update13 l.jpg
Multi-Core Processors of Software LicensingSoftware Licensing Update

Since Sept. 2004, AMD has taken a leadership role in addressing the issues of multi-core processor licensing, recommending ISVs license by processor instead of by core

http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543_12605~90042,00.html


Multi core processors software licensing update14 l.jpg
Multi-Core Processors of Software LicensingSoftware Licensing Update

Licensing by core has the most immediate effect on 4

processor/8 core servers

  • You can maintain software costs by:

    • Negotiating alternate licensing method, such as site or user licensing

    • Buy smaller servers to stay within processor limits of software versions

    • Move to alternate software that offers a processor licensing scheme

  • You should closely evaluate TCO:

    • Smaller numbers of larger server could be more economic even with more expensive licensing if you compare hardware, infrastructure, and management costs

  • You need to bring licensing concerns directly to your software provider!


Virtualization and grid computing l.jpg
Virtualization and Grid Computing of Software Licensing

Companies are estimating that 25% to 50%

of their hardware infrastructure will be

dual core by 2008

  • Primary workloads for multi-core systems will include

    • IT infrastructure

    • Database

    • Virtual processing/clustering/grid

      The adoption of virtualization and grid computing technologies are fueling the next round in the software licensing debate

Software Licensing in Multi-core, Multithreaded, and Virtual Environments: Executive Interviews, IDC Special Study, Sept. 2005


Virtualization making resource consolidation a reality l.jpg

Virtual Machine of Software Licensing

Virtual Machine

Virtual Machine

Application

Application

Application

OS

OS

OS

Virtualization Making Resource Consolidation a Reality!

  • Partitions a server into independent “virtual machines”

  • Enables consolidation of multiple applications onto more powerful and efficient servers

  • Helps to reduces costs associated with:

    • floor and rack space

    • power and cooling

    • software installation

    • administration


Virtualization approaches l.jpg

Virtual Machine of Software Licensing

Virtual Machine

Virtual Machine

Virtual Machine

Virtualization Software

App

App

Container

Container

Host OS with

Hypervisor

Host OS

Resource Manager

Solaris

AMD Opteron™ Processor with

Pacifica Technology

Virtual Machine

Virtual Machine

Host OS + Virtualization Software

Virtualization Approaches

Hardware-Enabled Virtualization

Software Virtualization


Grid computing making resource consolidation a reality l.jpg
Grid Computing of Software LicensingMaking Resource Consolidation a Reality!

  • Cluster of industry-standard 2P and/or 4P servers

  • Creates as single set of shared resources that can be dynamically scaled up or down to meet demands

  • Reduces space, power, hardware, and administration costs while providing an efficient and secure computing infrastructure


Virtualization and grid computing software licensing issues l.jpg

Application of Software Licensing

Virtual Machine

Virtual Machine

Virtual Machine

Virtualization and Grid ComputingSoftware Licensing Issues

Per processor licensing model continues to fall apart

Single application “owns” all available processors, even if it does not use them

One application to one server

A single application only uses some of available processors of a server or cluster

One application to a subset of CPUs


Virtualization and grid computing software licensing issues20 l.jpg
Virtualization and Grid Computing of Software LicensingSoftware Licensing Issues

Common Questions

  • If you run software on less than the full server, will you still have to pay for the full server?

  • If you have more virtual machines than there are processors in the server, will you have to pay for every instance of software?

  • How can software license models adapt to grid environments that can quickly scale up or down depending on demand?


Virtualization and grid computing software licensing issues21 l.jpg
Virtualization and Grid Computing of Software LicensingSoftware Licensing Issues

  • What type of licensing model could work?

  • Usage metric or “pay for performance” approach

    • Number of users

    • Timed use (CPU hours)

    • Number of transactions

    • Number of threads

    • Amount of data transferred

  • Software license that allows for multiple installations

    • One fee covers numerous installations on a server or grid

    • Stepped licensing plan with 100% cost for first copy and percentage discount for any additional copies


Virtualization and grid computing some software licensing examples l.jpg
Virtualization and Grid Computing of Software LicensingSome Software Licensing Examples

  • Oracle and virtualization

    • Hardware partitioning - customers running a Solaris 10 license only the processors or cores that are running the Oracle binaries

    • Software partitioning - customers running virtualization software like VMware must license for all processors cores available on the server

  • Sun and grid computing

    • Sun charges $1 CPU/hour for its grid computer services


Virtualization and grid computing software licensing recommendations l.jpg
Virtualization and Grid Computing of Software LicensingSoftware Licensing Recommendations

  • AMD recommends that ISVs support emerging x86-based virtualization and grid computing technologies by moving to software licensing models based on:

    • Usage metric (pay for performance)

    • License that allows multiple software installations on virtualized server or computer grid


Pending announcement l.jpg
Pending Announcement of Software Licensing


Virtualization and grid computing software licensing recommendations25 l.jpg
Virtualization and Grid Computing of Software LicensingSoftware Licensing Recommendations

  • Bring your licensing concerns directly to your software provider!

  • Move to software that offers alternate licensing scheme

    • ISVs taking leadership position (such as Microsoft and Sun)

    • Open Source Software

  • Negotiate alternate licensing method, such as site or user licensing


Solving today s it challenges l.jpg
Solving Today’s IT Challenges of Software Licensing

  • Multi-core processors

  • Server virtualization

  • Grid computing

  • Accelerate application performance

  • Improve asset utilization

  • Reduce computing complexity

  • Control infrastructure costs

New Data Center Architectures


Closing thoughts l.jpg
Closing Thoughts . . . of Software Licensing

With technologies such as multi-core, virtualization, grid and on-demand, the per CPU model is falling over

William Fellows, principal analyst, The 451 Group


Trademark attribution l.jpg
Trademark Attribution of Software Licensing

AMD, the AMD Arrow Logo, AMD Opteron, AMD Athlon, AMD PowerNow!, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other names used in this presentation are for identification purposes only and may be trademarks of their respective owners.


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