Hyperconvergence and the Pulling Forces in the Datacenter

Giorgio Nebuloni, IDC EMEANutanix .NEXT On Tour 2015

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

Agenda State of the Datacenter Union What’s Forcing Change The New Wave of Convergence Customer Learnings Market Data Essential Guidance

3

State of the Datacenter Union

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 4

Goal of Operating a Datacenter

Datacenter

Staff

Software(Business App, OS, BSM, System Mgmt)

External Contracts(outsourcers, clouds, suppliers)

Facility(energy, building, etc.)

Hardware(servers, storage, networking) Delivering

IT servicesto users

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 5

A Well Known Reality

2009Q

1

2009

Q3

2010Q

1

2010

Q3

2011Q

1

2011

Q3

2012Q

1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q10

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Compute Cores shippedMoving average (Compute Cores shipped)Servers shippedMoving average (Servers shipped)

2009

Q1

2009Q

3

2010

Q1

2010

Q3

2011

Q1

2011

Q3

2012

Q1

2012Q

3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q10

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Total Terabytes shipped

All data Western Europe; Sources: IDC EMEA Quarterly ESS and Server Trackers, 2Q15 (September 2015)

The Virtualization “Given”

6Source: IDC WW Server Virtualization Tracker; IDC Estimates; all data Western Europe

36% of all new servers are virtualized in 2014

~70% excluding bare metal environments

>8 million VMs deployed in 2014

29% in 2012

~50% in 2012

~1.6 million physical servers deployed in 2014

7

What’s Forcing Change

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8

The Alphabet of Change

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 9

Give me a… D

Mobile Users

•50% Growth•3.8 Billion•50% Penetration

Data Center Cores

•2x Growth•77 Billion•10/Person

Data Growth

•4x Growth•24ZBs •760 TBs/Second

2018

Massive Size Driven by

Consumers

+ ∞

Combinations of Technology

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10

Visions, but not Only Visions

Idea Bank / iTaxi Pilot ATM-on-Demand in Warsaw

Programmatic Marketing Company

Impact on IT Operations

Copyright 2014 IDC

Operation Efficiencies

Deeper Customer Relationships

Net-New Revenue Streams

Geo-Dispersed & Always Available

Extract Value from Corporate Data

Faster Time to Deployment

Business Benefits Data Center Impact

Give me an… S

12Source: European Integrated System Survey, total =400 (103, 137, 160)

Q. On average how long (in days) does it take to develop and deploy a new application?

10 to 99 empl. 100 to 499 500+36

38

40

42

44

46

48

50

Average days to de-velop/deploy an applica-tion

Winning Back Time

13Source: European Integrated System Survey, total =400

Q. Considering the following mix of tasks, over a given week, what percentage of total IT admin and operations staff time (across server, networking and storage infrastructure) is spent on the following?

16.9%

18.6%

14.1%

39.2%

11.2%

Provisioning, patching, con-fig management

New service request and approval mgmt

Vendor and internal meet-ings

Monitoring, troubleshooting, remediation

Innovation and new projects

Power & CoolingMgmt & AdministrationNew Server Spending

Give me an… O

14

1995 2000 20052010

2015

OPEX/CAPEX Ratio

0.48 0.771.51

2.83

3.91

$94B$123B

$138B

$206B

$272B

WW Server, P&C and Administration Spending

3x

8x

15

Vs.

16

The New Wave of Convergence

Q. What do you see as the top two major benefits of Integrated Systems? Please select top two

Integrated Systems, convergence 1.0Converged Systems Integrated Systems

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps

Middleware-centric Database-centric

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Integrated Systems

17Source: European Storage Survey, 2015; N = 498

Improved agility / faster resource availability

Lower Total Cost of Ownership

Improved Utilization IT resources

Fewer management Tools

Improved IT staff Efficiency

Lower Maintenance Costs

Improved Disaster Recovery

Lower Power/Cooling Costs

0% 5% 10% 15% 20% 25% 30%

18

Time of Choice for the IT DepartmentChallenges to integrated systems

Lack of visibility into traffic patterns

Cost and doubt of ROI

Single point of failure

Hard to segregate and protect data across multiple users

Resistance from IT domains

IT org not structured to implement change

Concerns about app performance requirements

Concerns about technical maturity

0% 20% 40%

27%

27%

30%

34%

35%

36%

37%

37%

What do you see as the top two challenges in moving to converged or integrated systems? N = 498 ; European Storage Survey, 2015

In the process of evaluating converged or integrated systems, what other alternatives, if any, did you consider to meet your compute, storage and network requirements? : IDC WW Converged and Integrated Systems End-User Survey (N + 308)

Did not consider alternative

Integrated Systems from a differenet vendor

Do nothing - rely on existing resources

Outsourcing

SaaS, PaaS, IaaS

"Traditional" hardware IT purchase

0% 20% 40% 60%

5%

12%

20%

20%

33%

44%

Alternatives Evaluated

Integrated Systems vs. Hyper-ConvergedConverged Systems Integrated Systems

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps

Middleware-centric Database-centric

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Hyperconvergence

Converged Systems Integrated Systems

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps

Middleware-centric Database-centric

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Storage Volumes Virt. Storage Function

Virt.Networking Virt.

With mixed Flash/HDD storage

19

Integrated Systems Core storage and compute

functionality in a single, highly virtualized, solution

All compute and storage functions delivered through the same server-based resources

Typically in clusters and scale-out

20

Customer Learnings

Why Hyperconvergence ?

Q. What were the key motivators to deploy Hyper-converged systems?

Source: IDC European Storage Survey 2015, Europe (410 responses). 1Q15 (only companies using Hyperconverged) 21

Elimination of SAN

Reduction in Technical support staff

Different type of backup

Easier to secure budget

Easier disaster recovery

Ease of set up

Speed of deployment

Scalability

0% 5% 10% 15% 20% 25% 30% 35% 40%

20%

23%

26%

28%

30%

30%

33%

35%35%

33%

30%

22

Hyperconvergence: Improving CAPEX

Network

Storage - SSD

Storage - HDD

Servers

Power

Datacenter Facility

0% 20% 40% 60% 80%

14%

25%

27%

30%

Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015)

67%

51%

« The complexity of doing disaster recovery in a traditional model is harder and it takes more time. But the savings is more about cost, because we're buying expensive SAN solutions. We'd probably have to buy another SAN at the second site. . . We'd be at a million dollars total of additional SAN costs » IT Manager, US company, Services

23 23

IT Staff Savings from Management of Hyperconvergence

Sources: IDC, Quantifying the Business Value of Nutanix Solutions (2015)

Application development

Deployment - staff time

Management

Support

0% 25% 50% 75% 100%

16%

50%

71%

82%

IT Staff Productivity Gains

«We needed two days with Nutanix to deploy. The old way, it would take 1-2 months for a new storage system — we'd have to buy storage separately, then buy the compute separately, and then buy networking gear, and only then could we plug it all together” IT Manager, Government (USA)

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 24

Market Data

25

1% - 10% 11% - 25% 26% - 50% 51% - 75% 76% - 100%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

30%

25%

18%

8%

2%

H-C Systems in 18 months

Hyper-converged and Storage Usage

Q. What percentage of your company's total storage is used for Hyper-converged systems now and in 12/18 month?

1% - 10% 11% - 25% 26% - 50% 51% - 75% 76% - 100%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%40%

21%

8%4%

1%

H-C Systems Now

Source: IDC European Storage Survey 2015, Europe 556 responses. 1Q15

12% 20%

26

Hyperconverged Infrastructure

All Flash Arrays

Integrated Infrastructure & Platforms

ODM Direct Storage Systems

Hybrid Flash Arrays

Enterprise Networking Market

External Storage Market

Server Market

Total Infrastructure Market

-20% 0% 20% 40% 60% 80% 100% 120%

New Industries & Technologies Drive Market Growth

2015 Forecasted Growth in WW Spending

Heavily Influenced by New Brands

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 27

WW Hyperconverged Infrastructure Market

2013 2014 2015 2016$0.0B

$0.5B

$1.0B

$1.5B

$2.0B

+162%

+116%

+94%

Sources: Worldwide Hyperconverged Systems 2015–2019 Forecast (April 2015)

28

Do the Buyer Homework

Measure Goals vs.

Parameters

Key Recommendations for IT Buyers

1 3Contrast and compare with

cloud

2

Any questions?

For questions or feedback,please e-mail or call us

Giorgio Nebuloni

gnebuloni@idc.com +49 (0) 69 90502 112

@gnebuloni