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How to build a subsidized virtualization service

How to build a subsidized virtualization service. Dave Zavatson dhzavatson@ucdavis.edu. Virtualization Overview. Benefits are well known – Savings in Space Power Deployment time, management overhead, …. Virtualization as a service deployed June 2009 June 2010 we had grown to 156 guests

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How to build a subsidized virtualization service

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  1. How to build a subsidized virtualization service

    Dave Zavatson dhzavatson@ucdavis.edu
  2. Virtualization Overview Benefits are well known – Savings in Space Power Deployment time, management overhead, …. Virtualization as a service deployed June 2009 June 2010 we had grown to 156 guests Subsidy approved for $150,000 June 2010
  3. Develop a Pricing Model Identify all associated costs Housing Staff Security Training Hardware/licenses Project expected utilization Determine service headroom How long does it take to order additional equipment? What triggers new order? Secure startup funds Unused equipment reserves
  4. UCD Pricing Pricing by memory allocation $28.50/GB/month 2GB server $690 / year Dedicated CPU available Pricing break-even based on 57% utilization As we get more servers, surge margin will be smaller percentage of total memory and expected utilization will go up Review costs and charges frequently Pass on lower hardware costs to customers
  5. Pricing 1 hour setup time per server $77.50 / hr Only charged in unusual circumstances Disk space (annual) SATA $3.15 / GB FC $6.82 / GB 10% of disk space is reserved for snapshots
  6. Architecture Dell M1000 blade chassis B710 intel blades with 144GB RAM EMC CX4-240 with FC and SATA drives OS drive must be FC Vsphere Enterprise Target service was higher end, high availability Entry level or tiered service was discussed and dismissed
  7. Compare to Departmental Server Dell Optiplex 2GB $1,300 Amortize over 3 years: $433 yearly cost Department owns the equipment and can run it past its useful lifecycle. Costs don’t make service worthwhile (Remember 2GB virt server is $690 / year)
  8. What departments overlook Equipment lifecycle management Deployment time High availability Backups – recovery time Labor, security, housing Networking
  9. What departments don’t care about Space Space is free We already have space I can keep it under my desk Power Power is free Power is centrally managed and paid for Buildings have metering, but are shared with many departments
  10. TANSTAAFL Power cost for a server 250W $0.085 / kWHr 1.5 PUE Lbs CO2 per KWHr 0.725 Each server uses 3,300 kWHr costing $280 and emitting 1.0 tonnes of CO2 annually
  11. Those were conservative More liberal numbers 300 W $0.12 / kWHr 1.7 PUE Lbs CO2 per KWHr 0.725 4,500 kWHr costing $540 and emitting 1.5 tonnes of CO2 annually
  12. Determine Costs and Savings Power Costs Might take multiple calls to facilities folks to get the right person Determine PUE Impossible to do without metering, studies, or consultants Used SDSC study as a reference
  13. CO2 Reductions PGE has kWHr to CO2 conversion on web Standard conversions are available at http://www.climateregistry.org/resources/docs/protocols/grp/GRP_3.1_January2009.pdf page 95 UC has a mandated CO2 reduction goal. Virtualization contributes greatly to that goal.
  14. Calculate space savings UCD is short on server room space 30 to 1 virtualization ratio means 180 servers in 10U – four racks saved Real Estate Services can provide market rate Each rack uses 30-40 sqft
  15. Subsidy Justification (based on 108 guests) Avoided power usage 338,355 kWHr Power cost savings $29,000 ($5,752 per host) CO2 savings 111 metric tons 60-80 sqft space saved (2 racks)
  16. Get Support Who pays the utility bill? Facilities endorsement Environmental Stewardship Energy Savings, CO2 reduction are campus goals UCD has AVC of environmental stewardship Helped with language for proposal Client Feedback
  17. Server Room Governance Server Room long range planning committee Server Room Space Evaluation Committee Provost mandate to review all server room retrofits
  18. Subsidy $150,000 over three years Working on implementation details – goal is to keep costs the same for clients over 3 years Need to project utilization over next 3 years Will either charge percentages to client and subsidy account or just lower costs overall
  19. Subsidy Plan is to apply subsidy to overall rate Problem is that higher memory systems don’t save as much power Yearly evaluation of program Need to project yearly growth to apply subsidy evenly and keep rates the same each year
  20. Backups SAN snapshots included for free Host based backups available via netbackup License costs high Other products considered Vranger Veeam Other products cheaper, but required two backup interfaces Advantage are file-based, LAN free backups
  21. Other Services NAS EMC NS40G Highly available Fully integrates with AD Snapshots integrated with explorer Disaster Recovery Will host images for future use Alternate site at UCDMC Foundry Serveriron Load Balancer
  22. Accounting Service is 100% cost recovery Charge internal and external clients Built billing database using mysql, snmp Daily snapshot of disk usage and available systems Electronic billing of clients
  23. Other Efforts Server room build out approval process Server room space inventory – 46,000 sqft Passing power costs onto departments Stanford model Server buy back program Six year old 80 node cluster donated to UCD
  24. Lessons learned People don’t care about green when they have to foot the bill for it Use fast disk for OS FC gives us ~4 x performance over SATA Don’t let people undersize their systems Cheap clients cause swapping and disk IO
  25. Resources SAICF http://saicf.ucdavis.edu SRSEC http://srsec.ucdavis.edu Virtualization Service http://virtualization.ucdavis.edu Resources http://virtualization.ucdavis.edu/documents.cfm Dave Zavatson dhzavatson@ucdavis.edu 530-752-7758
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