The session took place at the beginning of Partner Day. The “regular” conference sessions actually begin tomorrow. Today is spent focusing on partner issues and enablement.

The panel for this session included:

• Mark Chuang Group Manager, Product Marketing, VMware, Inc.
• Kenon Owens Staff Systems Engineer, VMware, Inc.

You have to remember that most of the Partners here are not vendors like ScienceLogic, but big and small shops that are selling IT, networking and now virtualization solutions into end-customer environments. For these guys, understanding what virtualization partner programs and tools are at NetApp, for example, is very useful. And many of these companies are already selling Microsoft software and surrounding services for Microsoft products. So if you’re VMware, what’s the message to these partners in the face of the Microsoft juggernaut?

Microsoft to partners: “You may not like to admit it, but you’re probably already in bed with us.”

VMware to partners: “Our hypervisor technology outperforms Hyper-V and Xen, especially at scale. And anyway, it’s not about the battle at the hypervisor. It’s about the V-services on top of the hypervisor – VMotion, Storage VMotion, DRS, etc.”

Interesting and what we all already know, or think we know. The scale issue is an interesting one – too soon for Hyper-V and who uses Xen? But also interestingly enough, no announcement or even talk about extending VMware management tools to other hypervisors. The point, as the VMware product marketing guy made a point of saying, is that the question they needed to answer used to be “Why Virtualization?” and now it’s “Why VMware?”.

One more tidbit – this survey run by VMware asking their customers:

What are the top 6 apps you are running on VMware today

• IIS
• Apache
• Active Directory
• SQL Server
• Sharepoint
• Exchange

That means, 5 of 6 are Microsoft applications. Certainly it makes it even more challenging for VMware to navigate a path here.

The change since 2004 – would have talked about why virtualize. And now why VMware. (Duh.)

Talking to partners – many of which already have a successful Microsoft business. How VMware enhances your existing Microsoft business.

Top 6 apps running on VMware today (5 of 6 are Microsoft applications)

• IIS
• Apache
• AD
• Sql server
• Sharepoint
• Exchange

Source: VMware survey

Esxi - VMware – true thin hypervisor; maximizes resources utilization (over 100% memory commitment – allows avg of 2:1 memory overcommit) – host system memory is usually the resource bottleneck – plus Advanced Scheduler runs VMs better under load and to a greater capacity (hard to show this part); performance acceleration – using binary translation (32bit), para-virtualization and Hardware Assist (for 64-bit)

(rvi – rapid virtualization indexing)

No parent partition that all hypervisors have to go through

Vs ms/xen

Parent partition – dom 0 => potentially problem at scale; i/o that could be a bottleneck

Hyper-v SPECjbb comparison

= 9 vms on VMware and hyper-v hypervisors

Outperform (CPU) by 50% - general purpose scheduler isn’t able to keep up? “got to be”

(cpu only test)

Also used VMmark – to demonstrate again that VMware is performance tuned and designed to run at scale vs Hyper-V

Size Does Matter:

Vmware ESXi: 32MB

Hyper-v – 2.6 GB

Xen – 1.2 GB

Hyper-V uses Microsoft Server Core – so the last two Patch Tuesdays had to make changes to Server Core (nothing to do with Hyper-V) but service interruption for Hyper-V.

VMware VMsafe – “Provides an unprecedented level of security” “virtual is more secure than Real” (uh oh – clearly didn’t read about the

*****************

VMware TEST:512 mb vms on server w/ 4gb ram –

7 vms - xensource (w/no memory overcommit)

6vms – hyper-v before error (w/no memory overcommit)

14vms - w/memory overcommit and management

Running sql io sim – heavy workloads

TCO – not just license; now ESXi is free – so hardware

809 - ESXi

871 – vi3 foundation ($995)

1168- vi3 enterprise ($5750)

1621 – hyper-v – 2x cost because of hw

Xen – 1618

Memory overcommit (89% in production vs. test/dev)

Survey – 37% of respondents at 2:1 RATIO OR HIGHER; real average is around 1.8: 1

*********************

This guy Mark sounds like a used car salesman:

“Always On, On Demand Data Center”

Hypervisor is very important but what is more important are the v-services on top of this. Manage shared, pooled resources. “Value Above the Hypervisor”

How does all this save “your customers” $$?

VMotion – saves cost on planned maintenance: no more overtime, no more time scheduling maintenance windows (see cost framework below)

10 (# of servers) x 6 (@ of updates) x [ (overtime cost 2hrs x $150/hr) + (scheduling downtime # of apps per server 15 x time spend scheduling per app 0.75 hr x $50/hr)] = $58,500

Same thing with using VMware Storage VMotion

Overtime cost + scheduling downtime + planning move + alternative tool cost - $68,750 (2.5 TeraBytes)

The Value of High Availability

- cost of lost business, lost work

- cost of lost productive time

4 hours of downtime x # of users per vm 10 x number of vms per host 15 x cost of user productive time $50/hr x failures per year in 10-host cluster 2 = $60K

(10 servers, 150 vms)

SAVINGS (using enterprise version)

Update management 149,760

HA 60K

DRS, VMotion Storage VMotion 187,250

808,259 – hw, power cooling, etc.

This week Amazon’s Simple Storage Service (S3) suffered a major outage that affected several websites that rely on the service. This is actually the second major outage for Amazon S3 this year. As a result of these and other reported outages, some companies will come to question whether they should pursue these new cloud-based services in the future. I agree with Nick Carr, whether you’re a startup looking to rely on the cloud almost exclusively for computing power and storage capacity or you’re a brick and mortar company who may want to use SaaS services for CRM or an online backup service, these outages should not scare companies away from cloud-based services. Outages are inevitable; no one, not the most sophisticated internal IT shops on Wall Street, or the largest service providers can offer 100% availability all the time. Amazon threw everything it had to fix the problem and was able to address the outage in several hours. How well would you be able to execute on your disaster recovery plan if you had a major outage?

Instead of avoiding cloud-based services, organizations need to be savvier about security and resiliency of the service provider. In fact, your organization may already be in pursuit of these services. Online backup is becoming a viable alternate to premise-based solutions for PC backup as well as remote office backup. Next will be a number of services related to information management such as online archiving and online records management and more online storage offerings to support low cost storage. Further down the road, there will also be hosted, multi-tenancy Exchange solutions. Get involved in these discussions. Don’t take it for granted that the potential service provider has hardened data centers that meet Tier III or Tier IV classifications (these classifications describe data center site infrastructure and topology, Tier IV is the highest rating), that your data is replicated to another data center, that your data is encrypted in flight and at rest and that the service provider has strong security measures in place so that administrators can support the infrastructure but not access or even see your organization’s information. Organizations should have consistent processes before, during and after the contracts have been signed.

And, when you ask about SLAs regarding resiliency, keep in mind that there will be some downtime for routine maintenance and that some unplanned downtime is inevitable. Consider a service provider that might boast about 99.9% availability (8 hours/year outage for 24x7). What is the difference between the following?

· 8 AM to 4 PM on the last Friday of the quarter

· Biweekly outages of 30 min at 4 AM local time

Timing and duration are more important than total downtime/outage.

Get involved in these discussions but be careful not to come off as the obstacle or as the doomsayer. Quite the opposite, you want to be seen as the enabler. Help the organization understand some of the potential risks but then help the organization define its resiliency requirements, security requirements, and risk tolerance. When the organization knows this, it can more confidently go out and select the right service provider, negotiate the appropriate SLAs and be prepared ahead of time with contingency plans for any potential service outages.

In Tech Spending Hit by Subprime Mess, Jeffery Schwartz says,

“According to Tabb, spending on development is being refocused on projects that can help firms improve their margins and, not surprisingly, do a better job at risk management. As such, investments in capabilities such as algorithmic trading and complex event processing (CEP) are likely to be pivotal in some firms’ efforts to become more competitive and improve their efforts at mitigating risks.”

“But for some banks that have deployed such technologies — the now-defunct Bear Stearns, Lehman Brothers, Citigroup and Merrill Lynch — the question is: How did these companies fail to mitigate the risks that have slammed their businesses if their development teams were developing and deploying sophisticated systems?

“There is definitely an awareness that perhaps the systems that existed in place to assess the value of portfolios or judge risk [are being scrutinized],” said Stevan Vidich, an industry architect in Microsoft’s financial services group. “

He added that there is strong interest in CEP and other risk management methodologies. A growing number of shops have started deploying such solutions based on the .NET Framework, Vidich said, and he believes such investments will continue.

“Clearly, there’s a lot of need to deal with the immense influx of data and being able to analyze data in a timely manner,” Vidich said. “It also drives need for systems like business intelligence, or BI, applied to a near-real-time scenario, which is a very attractive proposition.”

What are these guys on Wall Street smoking? 

This is the precise “over hyping” problem I have warned about repeatedly.   Folks selling rule engines that perform basic calculations over a time window of streaming data have been marketing their wares as “superbrains” that can solve very complicated problems and, at the same time, save Wall Street and The Planet.

Let me be perfectly clear here Wall Street.  Listen very carefully.

There is nothing in any of the so called CEP products in the market place that is going to stop losses related to the subprime meltdown effecting the “now-defunct Bear Stearns, Lehman Brothers, Citigroup and Merrill Lynch,” as Jeffery Schwartz implies.

To imply that the risk management (and corporate governance) required to mitigate the current crisis on Wall Street can be foreseen, solved, or even mitigated, by a rules engine (or any software) is complete and absolute fantasy.   

I think the fever created by the subprime flu is putting folks on Wall Street, or at least the vendors and the analysts pandering to them, in a Capital Market CEP Fantasy Land.

“According to Tabb, spending on development is being refocused on projects that can help firms improve their margins and, not surprisingly, do a better job at risk management. As such, investments in capabilities such as algorithmic trading and complex event processing (CEP) are likely to be pivotal in some firms’ efforts to become more competitive and improve their efforts at mitigating risks.”

“But for some banks that have deployed such technologies — the now-defunct Bear Stearns, Lehman Brothers, Citigroup and Merrill Lynch — the question is: How did these companies fail to mitigate the risks that have slammed their businesses if their development teams were developing and deploying sophisticated systems?

“There is definitely an awareness that perhaps the systems that existed in place to assess the value of portfolios or judge risk [are being scrutinized],” said Stevan Vidich, an industry architect in Microsoft’s financial services group. “

He added that there is strong interest in CEP and other risk management methodologies. A growing number of shops have started deploying such solutions based on the .NET Framework, Vidich said, and he believes such investments will continue.

“Clearly, there’s a lot of need to deal with the immense influx of data and being able to analyze data in a timely manner,” Vidich said. “It also drives need for systems like business intelligence, or BI, applied to a near-real-time scenario, which is a very attractive proposition.”

What are these guys on Wall Street smoking? 

This is the precise “over hyping” problem I have warned about repeatedly.   Folks selling rule engines that perform basic calculations over a time window of streaming data have been marketing their wares as “superbrains” that can solve very complicated problems and, at the same time, save Wall Street and The Planet.

Let me be perfectly clear here Wall Street.  Listen very carefully.

There is nothing in any of the so called CEP products in the market place that is going to stop losses related to the subprime meltdown effecting the “now-defunct Bear Stearns, Lehman Brothers, Citigroup and Merrill Lynch,” as Jeffery Schwartz implies.

To imply that the risk management (and corporate governance) required to mitigate the current crisis on Wall Street can be foreseen, solved, or even mitigated, by a rules engine (or any software) is complete and absolute fantasy.   

I think the fever created by the subprime flu is putting folks on Wall Street, or at least the vendors and the analysts pandering to them, in a Capital Market CEP Fantasy Land.