Tomorrow’s
workspace
What is the best strategy for upgrading a company ’s
shared infrastructure? How to carry out a short-term
transformation project? How to address the associated
budgetary problems?
3 - INTRODUCTION
4 - CHANGING TECHNOLOGY
8 - MAKING THE IT DEPARTMENT MORE AGILE
10 - MANAGING BUDGET CONSTRAINTS
14 - TOTAL COST OF OWNERSHIP COMPARISON OF PCs WITH HOSTED VIRTUAL
DESKTOPS, 2011 UPDATE
21 - THE ECONOCOM SOLUTIONS
Content
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IT departments supplying services to the company’s users have two main concerns that are often contradictory: on the one hand, economic constraints lead to cost control and reductions, whilst on the other hand, quality of service should be optimised to satisfy users, who are increasingly mobile and demanding with respect to the IT solutions provided. IT departments must therefore look ahead in order to be able to respond to “reasonable” business demands that are often somewhat incompatible with users’ sometimes “unreasonable” expectations, driven by the fast-moving technological
advances they have at their personal disposal: users are often better equipped at home than in the workplace.
The purpose of this document is to:
Examine the current technological context of the market
Outline the changes required for tomorrow’s workspace, via a properly adapted transformation of the shared infrastructure and IT organisation
Analyse the economic and budgetary impacts, with the aim of eliminating the ROI requirements inherent in all transformation projects.
CHANGING TECHNOLOGY
2 . 1 C u r r e n t t r e n d s
Technological solutions for shared infrastructure are constantly evolving. Users are increasing in number and are now the focus of all changes: their working environment is changing; they must now be able to access the IT system freely, any time and anywhere.
The history of the IT market is characterised by an
unmistakable trend in which technological solutions are first effected inside the company, and then outside.
Inside the company, successive centralised and decentralised models have required access to constantly increasing volumes of information and have influenced changes to the workspace. Since the 2000s, this transformation has also been influenced by resource sharing, collaborative systems and the need for mobility.
Outside the company, changes to the workspace have been driven by the emergence of collaborative tools and social networks, more powerful machines, multimedia and the arrival of communication terminals reflecting the convergence of IT and telecoms.
A n e w e x t e r n a l f a c t o r :
c o n s u m e r i s a t i o n .
U s e r s a r e b e t t e r e q u i p p e d a t
h o m e t h a n a t w o r k .
The dividing line between professional and personal is becoming increasingly blurred, to the benefit of users, whose needs are significantly influencing working methods and management. This convergence requires IT departments to:
Reinforce data security and network access Ensure consistently delivered services Offer high availability and coverage levels.
In the last few years, mobility needs and the array of new personal equipment have significantly transformed the
anywhere. Mobiles – and later smartphones – have driven technology changes in recent years, and now equip a vast majority of users (over 90% in Western Europe). This use, extended to tablets, is continuing to evolve and change our working methods.
We are now at a crossroads: to improve performance and competitiveness, companies will have to redesign their shared infrastructures. In addition to the security, connectivity and performance issues, which are already priorities for IT departments, IT is expected to guarantee stability in multiple working environments while at the same time providing the flexibility needed to satisfy users’ personal needs.
2 . 2 W h a t w i l l t h e w o r k s p a c e o f t h e
f u t u r e b e ?
The traditional company workstation has reached its limits as a scalable solution that can meet future expectations and needs. The workstation is heading for a major transformation. First of all there is the issue of flexibility, because users need to access their data wherever and whenever they want. For example, the majority of users consider it is as important to access their working environment as their social networks (e.g. Facebook and Twitter), and from the same device (tablet, smartphone, etc.).
However, this access is costly for companies, who wish to ensure user satisfaction whilst maintaining tight control over the security of their IT system and limiting the impact on their budget. This flexibility creates new challenges in terms of IT systems’ adaptability. In this respect, technologies such as virtualisation can provide a satisfactory response.
The “heavy” workstation with physically installed services will increasingly be replaced with a “lighter” workstation, where users can access data completely independently from the hardware installed or remote services. With reinforced mobility, the workstation of the future will consist of an object or terminal focused on the human/machine interface, equipped with the necessary communication capacity to
enable secure access to all the IT resources. Via a dedicated catalogue, the user can access a range of standard services and applications, available on request according to their profile. This approach is transparent to the end-user, who can thereby improve his everyday working methods and enter the era of collaborative work.
To achieve these objectives, workstation virtualisation technologies, application virtualisation and web solutions already offer companies a viable short-term solution and as such are the first step towards the workstation of the future.
2 . 3 H o w c a n a n I T d e p a r t m e n t b e g i n
t h e t r a n s i t i o n t o t h e w o r k s p a c e o f
t o m o r r o w ?
Transforming the shared infrastructure must be done gradually and consistently, in line with a specific upgrade strategy. The strategy will result in an evolving infrastructure that meets business activity constraints and future user needs. For IT departments whose infrastructure is still under Windows XP1 , short-term integration of Windows 7 is mandatory. This integration must be encompassed in the department’s strategic thinking so that it can be deployed in line with the strategy chosen.
2 . 3 . 1 I n t e g r a t i n g W i n d o w s 7
For companies, the integration of Windows 7 is anopportunity to transform their shared infrastructure in line with a strategy for implementing technology trends for the workplace of the future. This strategy should include technological choices, budgetary solutions, improvements to user services and agile organisational strategies.
The operational and technical risk associated with XP is increasing as April 2014 - the end-of-support date - draws closer. The most significant risks are the gradual phasing out of software support from vendors and the absence of guaranteed hardware interoperability from manufacturers (e.g. obsolete drivers).
Based on a traditional 36-48 month refresh policy, with a refresh in 2011, a straight-line projection indicates that 30-50% of users will be deployed during the high-risk period, and even beyond the end-of-support date for Windows XP.
IT departments need to identity this as an urgent matter and begin to define their refresh plans with the integration of Windows 7. However, migration to Windows 7 with the same parameters is a costly business with ROI that is hard to demonstrate.
1According to analysts, over 80% of European workplaces were running under the Windows XP operating system at end-2010.
Market context: tomorrow’s station
2 . 3 . 2 T w o p r o j e c t s i n o n e
To ensure optimal migration, IT departments should incorporate the project into the strategic upgrade plan of their shared infrastructure. This will make longer-term integration of Windows 7 possible and enable the company to extract maximum potential value from the new functions. In the short or medium term, workstation and application virtualisation are also major projects that IT departments should implement.
In our opinion, workstation virtualisation projects must be combined with migration to Windows 7 in order to ensure an effective, consistent improvement of user services. Combining the two projects should address the following issues for IT departments:
What proportion of the workstations should be refreshed and by what date?
What hardware solutions should be ordered? What licences should be planned, and for which user profiles?
Should the workstations eligible for virtualisation be migrated to Windows 7 first?
How can the expenditure be justified? How can the change be optimised from the users’ point of view?
B e n e f i t s o f u s e r v i r t u a l i s a t i o n
Application virtualisation is a serious bypass solution to facilitate the deployment of Windows 7. It generates user productivity gains by transforming Windows, Java and .NET applications into independent applications that can be run separately from each another. This eliminates any conflicts in terms of registry, operating systems and applications, whilst reducing interrupted access for the end-user.For example, via application virtualisation, incompatible applications such as Internet Explorer 6 (which may be necessary for certain essential business applications) and Internet Explorer 8 (the most recent browser) can be run simultaneously, because each application is implemented independently.
Application virtualisation also means significant cuts in the cost of testing and deploying new applications, because virtual applications do not require any installation – they function as ready-to-run Windows files. Virtual applications can be run directly from a USB key (or any other mobile peripheral storage device) and taken away if needed, thus offering more flexibility, particularly for the growing ranks of mobile workers.
Furthermore, via a configuration management solution, computers running on Windows 7 can be automatically and transparently equipped with virtualised applications, transferred quickly and with minimal impact on the company.
C o m b i n e m i g r a t i o n t o W i n d o w s 7 a n d
w o r k s t a t i o n v i r t u a l i s a t i o n
The four main reasons for combining Windows 7 migration with virtualisation:
Application remediation
After application compatibility tests have been carried out and problems identified on critical and/or costly applications, virtualisation can be used as a bypass. For example, certain techniques allow Windows 7 to be deployed while running applications on an older OS core (XP or 2003 Server). Hardware bypass problems
Some organisations use very specific hardware configurations (industrial PCs, production lines, etc). Upgrading in these environments can be very complex, and the release of new applications, maintained in Windows XP, can prolong their life span.
Licences
Microsoft provides a number of virtualisation options with the Windows 7 licence, depending on the version (Professional, Enterprise, MDOP). Most clients choose the type of licence that best matches their virtualisation requirements.
Fluid deployments
Like any centralised architecture, virtualisation architecture can often be deployed faster than a shared deployment on multiple sites.
V i r t u a l i s a t i o n i s n o t a n
a l t e r n a t i v e t o m i g r a t i o n t o
W i n d o w s 7 . C o m b i n i n g t h e t w o
p r o j e c t s e n a b l e s d e p l o y m e n t
o f a n e f f e c t i v e s h o r t - t e r m
s o lu t i o n t h a t c a n a l s o e v o l v e
o v e r t h e l o n g e r t e r m .
2 . 3 . 3 C a r r y i n g o u t t r a n s f o r m a t i o n s
An IT department initiates the transformation of a company’s shared infrastructure by drawing up an upgrade strategy for the shared infrastructure and setting up a project combining migration to Windows 7 with a virtualisation solution. First of all, this transformation means that the IT department, business units and Management all become involved, as this is a company project that requires:Defining a governance strategy target, its opportunities and risks
Drawing up a service catalogue that meets business needs and is managed by the IT department
Guiding users through the changes as they are implemented.
The transformation project is based on 4 key phases:
T h i n k i n g
Assessment of current situation (inventory of resources, e.g. hardware, software, users)
Study of application and hardware compatibility, impact analysis , designing target solution
Designing chosen architecture (AD, virtualisation, W7 configurations, etc.)
Setting up Proof of Concept model Deployment methodology, overall plan.
P r e p a r a t i o n
Financial simulation and estimation of budgetary impact
Building financial solution (expenditure planning) Financial monitoring process (e.g. Total Cost of Ownership, or TCO, and billing by asset, by service, by organisation)
Centralised infrastructure upgrade (e.g. Active Directory, file servers, virtualised infrastructures, Exchange)
Communication and transformation procedure plan
T r a n s f o r m a t i o n
Imaging, packaging, pilotsCommunication and training of users and support services
Deployment: traditional (large scale, by batch, gradual), automated (local infrastructure) or semi-automated (on-site intervention)
Carrying out the project, transformation procedure (migration phase)
O p e r a t i o n
Support extended via a single entry point for monitoring incidents and requests for changes Cloning, remote deployment and reconstruction Intelligent distribution (software, patches) On-site service within specified time spans Operational service management
Financial monitoring: costs, cross-charging by department and by client (user)
Source: Econocom
For staff twenty years ago, not having a PC meant that the IT department, or more likely the company itself, was not forward-looking.
Nowadays, a company not offering staff the flexibility they require in an increasingly intercommunicative world is dismissed as a “techno-dinosaur” by younger generations. By maintaining individual contact with almost all employees via a shared infrastructure, the IT department can consider the services it provides within the framework of this infrastructure as its showpiece, and a key indicator of its operational performance and quality of service.
3 . 1 A u s e r - o r i e n t e d I T o r g a n i s a t i o n
Two different strategies lead to equally different action plans and performance targets: on the one hand, being the provider that offers users the best quality of service, whatever the cost; on the other hand, offering the lowest costs. An IT department’s goal as service provider is to understand the business activity and individual users’ expectations, whilst taking into account the constraints imposed by the head office or the Finance Department.In order to achieve this, IT has to translate user expectations into specific service levels, thus defining the department’s commitment to a quality level. This quality level implies a broad range of actions in each step from service design to service operations: the guarantee level at initial design, the type of services provided, prioritising in working schedule, etc. On the basis of these strategic targets, the IT department can work out an industrial vision of the services it will provide. Clearly, a unit-by-unit understanding of each business activity process and its requirements is not conducive to a customised service offer for each activity. On the contrary: the aim is to build a service offering that can be tailored to the requirements of all internal and external users, while streamlining the number of components used. The classes of services that are now grouped under SLP (Service Level Package) define the standard guarantees that meet the requirements of different user segments. It is at this stage that the IT department can demonstrate its ability to innovate.
This industrial vision of services is formalised in the service catalogue, which is now extended to the service portfolio notion that includes services under development. This portfolio is managed so as to apply an inventory process, analysing and approving the services that are useful to business activities.
This vision is finalised by identifying the IT processes and assessing their ability to support the key concerns of the business activities. This will enable the IT department to identify the levers to implement its strategy. It is at this point that the department will identify its operational targets, or Operational Level Agreements (or OLAs) and the roles and responsibilities of the users in each of these activities.
3 . 2 C u s t o m i s e d , i n n o v a t i v e
i n d u s t r i a l I T s e r v i c e
3.2.1 Tailored to business activity and user needs The IT department is a factory that designs, creates and provides software and infrastructure that support the business activities’ strategies. The business units rely on the IT department to become more competitive and innovative, to create value for the end-users, increase productivity and cut costs.
These strategies lead the IT department to speed up the improvements to IT services or receive a higher volume of service demands from the business units. The IT department must therefore become more agile and improve its ability to provide high-quality services in order to cope with shorter product lifecycles, increasingly fierce competition, the need to offer customers value, and pressure on prices.
3.2.2 Leverage for industrialisation
What are the resources available to an IT department to industrialise its services? First and foremost, there are the tools, but there are other ways to develop skills and strengths and thereby improve departments’ performance. A good service strategy is based on knowing how to “cultivate” an IT department’s assets in order to increase its ability to create value for users.
Human resources
Human resources are the key to successful industrialisation. A consistent service strategy must coordinate choices and decisions in areas such as organising HR into divisions and departments, the scope of their responsibilities, their sise, skills, versatility, and sourcing, recruiting and assigning internal and external resources.
Tools
IT Service Management (or ITSM) tools support processes via functions of entry, monitoring, warning, notification and reporting functions. These functions are indispensable for monitoring and analysing activities and for coordinating the people involved. Other tools for inventory administration and automation, remote monitoring, updates, etc., give a clear view of the IT service components.
The key elements to be defined in an IT services strategy are how to align these tools with the processes and how people use them.
Standards
Norms and standards are the principles defined in the policies of standardisation, streamlining, security, operability, risk prevention, etc., that ensure the reliability, compliance and operational capability of the different IT service elements. The two major service strategy concerns for providing quality service here are: ensuring that the standards and norms are in line with expectations, and ensuring that they are automatically applied to the new components deployed.
Repository
This is a collection of information on the components and people who contribute to providing services. ITSM tools use this repository to improve process performance by
providing reliable, consolidated, significant information for a specific service situation (e.g. incident diagnosis, analysis of the impact of a change). As they are modelled to address a specific, requested use, the processes used to stay up to date, and the tests and verifications to ensure they are correctly used in processes are all tactical tools to be identified for a service strategy and for effective use of this information repository.
3.2.3 Innovation to anticipate business users’ needs
“It is not the strongest who succeed but rather those who best accept change.” (source: Hirishi Okuda, Chairman of Toyota).
Innovation is no longer seen merely as possibilities offered by technologies, but also as appropriate responses to business expectations. Customer relations should be the source of IT department innovations: its clients and users provide accurate information about their needs, and often provide the solutions to some of their problems. This communication is all the easier because the IT department has acquired a comprehensive understanding of the way the business activity functions and its objectives during the phase of turning its services into business production units. The IT department’s knowledge of these units’ contributions to the company value chain means it can be proactive, while at the same time remaining focused on effectiveness by making better use of the basic components of their catalogue, before developing new ones.
Source: Econocom
Budgetary problems are a stumbling block that IT
departments frequently come up against, and transforming a shared infrastructure is an additional issue in this already complex equation.
To examine solutions that can be implemented, we will use a case study to illustrate the budgetary impacts of a transformation plan.
4 . 1 C a s e s t u d y
Our case is a European service company with 1,600
employees. As part of a strategic transformation plan which began with migration to Windows 7, the company chose to virtualise a subset of its workstations and to also adapt its office equipment to the actual needs of users/clients (office-based, mobile, etc.):
Original equipment: 800 laptops and 800 workstations Target equipment: 800 laptops, 400 mobile thin clients and 400 desktop thin clients.
4.1.1 Benefits expected from a transformation project The benefits for a transformation to the workstation of the future may be technical, organisational or purely financial.
Alternative technology (thin client, virtualisation) extends the useful life of workstations (five to seven years), facilitates deployment and simplifies administration. It also ensures optimisation and sharing of shared systems.
Standardisation ensures compliance and standardises the technical architecture of shared systems. This step generally precedes industrialisation.
Industrialisation comprises implementing processes and tools that simplify, automate and monitor operations and maintenance.
Migration to Windows 7 also enables the elimination of certain third-party software such as VPN Client and encryption and avoids the cost of extended Windows XP support.
Sourcing (leasing and outsourcing) is the main cost reduction lever used by an IT department faced with budgetary restrictions. Service providers can also be requested to provide attractive billing models in response to budgetary constraints: payment “per use”, spreading investments over time, etc.
MANAGING BUDGET CONSTRAINTS
The table above shows the financial impact on the cost centres. The respective impacts are fairly equally spread among the teams and assets, the most significant reductions being in terms of administrative expenditure, workstation acquisition costs and streamlining shared servers.
4.1.2 Budget overview
Overall, the project generated a 17% reduction in targeted expenses, down from €105/month/user (excluding overheads) to €87/month/user.
4.1.3 Technological and operational benefits
Generally speaking, the approach deployed by this company generated a number of technological and operational benefits. The combination of these benefits within the client’s business context determines the savings generated by this transformation project:
Optimised working time for the IT department and service provider’s teams
Up to 60% reduction in test, packaging and user support costs on the virtualised applications Improved TCO through deployment of Virtual Offices A successful, perfectly-controlled transformation. Management of a comprehensive, overall project Reduction of the user impact over time
Simplified administration (applications, workstation reconstruction, configuration, etc.).
4 . 2 F i n a n c i a l m o n i t o r i n g
Financial monitoring of the transformation must include measuring costs and identifying indicators so that the performance of the investment can be assessed. Monitoring is a question of control:
Control over the choice of investment, which includes dealing with the unforeseen events that occur in every project.
Control over operations
The keys to control are knowledge and supervision:
managing and monitoring is above all about planning ahead, anticipating and deciding. Control is also essential.
4.2.1 Controlling changes and justifying investments A transformation project must be assessed by TCO, a proven indicator. The savings resulting from reducing TCO are what justify an investment.
ROI is often the most effective metric for making investment decisions, because the relevance of an investment is
generally measured by the company’s ability to generate profit as soon as possible, while of course taking into account the scale of the expected earnings. ROI can thus be measured in two different ways: over time, or by the investment/profit ratio (which varies from company to company).
The question is not just whether there is a return on
investment, but also whether the expected profit justifies the effort made: it must also be borne in mind that return is not always quantifiable.
The case study mentioned previously is a good illustration of how a company was able to reduce the operating costs of its workstations. Unmeasured savings or profit – related to security and data availability for example – can also be added.
Financial planning / Client study with mix scenarios
It is clear that the savings made are primarily measured over a period of time. Consequently, even if the long-term profitability of a project is unquestionable, the main issue is often how to manage the time factor so as to accelerate the impact.
A leasing solution is often the key to aligning the costs of an operation with the profit to be gained from it.
Instead of having to demonstrate the justification of an investment within a given time frame, adopting a leasing solution means that charges in an operating budget can be spread over time.
Costs and profit can then be measured in a single budget and the time frame reduced to monthly costs.
This type of solution has the advantage of bringing all the costs into the budget, i.e. an operating budget, thereby making it easier to make comparisons, and providing an overall view.
ROI is unquestionably a proven metric, but it does have its limits: the investment must be considered in terms of the company’s objectives, which often go beyond mere cost savings.
How to get beyond ROI?
As mentioned above, control also involves coping with the unforeseen events that occur in a project. This often implies implementing solutions that can limit cost overruns that may compromise the initial financial calculations.
Control usually depends on the quality of the preliminary analysis and audit. However, whatever the quality of the analysis, unforeseen events must be dealt with whilst avoiding the risk of unplanned investments not being approved.
An initial approach is to be as careful as possible in the budget assessment, although this is difficult in the context of an overall budget.
In this context, lease financing is a particularly effective instrument: its flexibility means the rents and contract terms can be adapted to the actual costs incurred. Thus, the concept of ROI is no longer relevant, because the return on investment is immediate.
L e a s i n g i s t h e w a y t o g e t b e y o n d
t h e n o t i o n o f R O I
4.2.2 Optimise recurring spending
As we saw in the case study, cost factors can be divided into two main budget items:
Asset-related costs Production-related costs.
Production investment mainly concerns assets deployed to make the transformation, which includes all deployment costs, including human resources.
In operations, there are two types of costs that can be optimised:
Asset costs: in virtualisation, user workstations deployed in migration are usually less powerful than heavy workstations used in standard mode.
Production costs: operations are significantly simplified in a system whereby the workstation or application is centralised on a main server and can be managed remotely.
A company often chooses to cut costs by sequential reductions of budget items, whereas it is sometimes more relevant to start by looking at cost and budget structure. Then, before making drastic cost cuts, Management should think about the allocation and purpose of costs: the investment logic, the company’s essential needs, etc.
The first question should be: is my budget structure suited to the company’s needs?
Optimise costs
IT department cost cuts include recurring IT-related costs that are in the operating budget.
The usual metric for operating costs is TCO, which measures economic performance over time. Depending on whether the company can measure costs incurred by IT, TCO includes all or part of the components of a company’s cost structure. The metric may be limited to complete costs as used in cost analysis, or may include all the elements defined in the TCO concept developed by Gartner. Whichever approach is used, it is essential that the metric is stable and that its improvements can be measured over time.
Cost optimisation approaches:
Adjusting the useful life of equipment to the new infrastructure configuration: the equipment’s useful life must be reviewed, whilst also bearing in mind user comfort.
Implementing a suitable organisation which focuses on managing the central infrastructure. This must be planned well in advance, as reorganisation may require adapting the IT department’s resources and skills to the company’s new requirements.
Setting up a scalable infrastructure that can change with the company’s future needs.
It is also necessary to combine technology investments and upgrades with the changing of processes and pricing for services, as described below.
Customised pricing should also be adopted, based on production units and technical indicators.
Relations with service providers should be reviewed: rather than continuing the client/service provider relationship, the idea is to shift towards a partnership relationship, implying greater commitment in a rationale of long-term progress and optimisation.
4.2.3 A new approach to billing for operating costs: the ‘subscription’ services catalogue
As a service provider, the IT department should promote its service catalogue. This implies providing services that meet business targets (SLAs, coverage times, etc.,) but also means offering a user-oriented economic model. This is the IT-as-a-Service challenge: only bill a user/client for services he actually uses.
The service catalogue is not only a list of available services: it is also designed to guarantee service levels for the user/ client. The service provider’s pricing is in line with the service offered and is based on the expenditure required to achieve the guaranteed service levels. This enables the IT department to bill its users/clients for a monthly cost per workstation used, combined with service level agreements:
Timeline for providing/collecting a workstation Application availability rate
Response time for the help desk Fix time for critical or minor incidents.
Total Cost of Ownership Comparison of PCs
With Hosted Virtual Desktops, 2011 Update
Federica Troni, Mark A. Margevicius, Michael A. SilverHosted virtual desktops (HVDs) bring the benefits of
centralized architecture with improved operational efficiency. Total cost of ownership (TCO) savings exist, but these alone are not sufficient to justify a migration, as a high level of initial capital investments is required to build the back-end infrastructure.
K e y F i n d i n g s
The TCO of HVDs can range from 2% to 13% lower than comparable desktop deployments.
HVD implementation scenarios that use current image management technologies for light desktop application loads have lower or similar direct costs as those of traditional desktop PCs deployments. New server and image management technologies can reduce direct costs up to 15%, and can lower the overall TCO of HVDs by 9 to 12%, as compared with older-generation HVD deployments.
Dedicated and pooled image implementations will increasingly be replaced by dynamic image implementations.
R e c o m m e n d a t i o n s
Use HVD migrations as opportunities to move to higher levels of management and gain more flexibility at lower or similar direct costs.
Ensure that all HVD business cases include TCO considerations, as well as benefits that are more difficult to quantify, such as the ability to give secure access to applications and data to remote users, the ability to accommodate a broader choice of client devices, and increased security and manageability. Select dynamic image implementations for light loads over pooled image deployment, as the TCO for dynamic images is up to 11% lower.
Choose dynamic images augmented with persistent personalization software instead of dedicated implementation when personalization is required, as the TCO of dynamic images is 9% to 12% lower than that of dedicated image implementations.
A N A LY S I S
An HVD is a full, thick-client user environment, which is run as a virtual machine (VM) on a server and accessed remotely. HVD implementations comprise server virtualization software to host desktop software (as a server workload), brokering/session management software to connect users to their desktop environments, and tools for managing the provisioning and maintenance (e.g., updates and patches) of the virtual desktop software stack. The advantages of this client architecture are that it allows centralized management of applications and data, higher security and speed of provisioning. It is also a viable option to securely deliver applications to remote users and a variety of client devices. The TCO benefits of HVDs, however, have been in doubt in the past, as reductions in IT labor and end-user costs were often offset by the capital costs required to build the required back-end infrastructure.
Since the publication of our first research on the TCO of first-generation HVDs in 2008, the technology has evolved in many respects. In this update, we will account for several technology changes that have resulted in new implementation scenarios and different back-end infrastructure requirements.
T h r e e I m p l e m e n t a t i o n S c e n a r i o s
HVDs can be deployed in different ways to accommodate the requirements of different users and organizations. The various implementation options have different TCO implications. Some of the scenarios described below employ the latest generation of HVD software; others are legacy scenarios that are still deployed by some organizations. Going forward, the dedicated and pooled image scenarios will gradually be replaced by newer, dynamic image scenarios:Implementation of dynamically built images: In this scenario, one copy of the OS is stored in the data center and will serve multiple user images. Images are composed dynamically when users log on, by combining the OS with the appropriate set of applications. This is achieved with different technologies by different HVD software vendors, but leads to similar results. The main advantage of this implementation scenario over the other two is that
it substantially reduces storage requirements and simplifies management of the OS. Different degrees of personalization of the desktop are available for these scenarios today; however, for advanced features, third-party tools are required.Third-party tools may be required to go beyond basic settings and folder/file redirection.
Implementation of pooled images: In this scenario, we simulate a deployment of generic, fully locked-down images, where no deduplication technology is used. No image deduplication technology is used. Users will connect to the first available VM as they log on, and the image is taken back to its pristine state when the user has finished using it. This scenario is less complex, from a management perspective, than the one above, but it is suitable only for niche groups of users. Implementation of dedicated images: In this scenario, users are associated with their own, unique HVD image. No image deduplication technology is used and the user image is exactly as it was on physical PC, but it is now placed in a VM and runs on a server in the data center. Each image includes a full copy of the OS, applications and user’s personal data. Dedicated images represented one of the first HVD deployment methods. The advantage of this option is that it can accommodate users that require full personalization of the desktop. The disadvantage is that it is typically also the most expensive scenario, as it requires a large infrastructure build out; and, unlike other scenarios, it does not help organizations introduce higher levels of manageability for their client-computing deployments.
H e a v y Ve r s u s L i g h t L o a d s
We have calculated the TCO for these implementation scenarios comparing different infrastructure set ups serving different client-computing workloads. Heavy load scenarios represent HVD deployments for demanding or sophisticated users, which will require high numbers of applications and large amounts of data. Light load scenarios, conversely, represent implementations for users requiring fewer applications to do their job and store limited data. The distinction between heavy and light loads impacts the infrastructure requirements, as it affects memory and storage requirements, as well as the user-to-server ratio.
W h a t ’s N e w
Several items have changed from the 2008 update:
Hardware, software and facilities: In this update, we have included a lower thin-client cost. The per-server costs have more than doubled, as compared with the 2008 numbers since we now include dual-CPU, quad-core and dual-CPU, six-core servers with 96GB and 128GB of memory, respectively. This cost is partly compensated for by the higher density of users per
server that is currently achievable. We have lowered the per-user software costs, which are now set at $750, including annual maintenance, but we have included a higher, more-realistic cost for the HVD software. In the first scenario, we present costs for a Windows XP and a Windows 7 HVD deployment; other scenarios are Windows 7-based. We now include electricity costs for thin clients and servers.
IT operations: We have increased salaries by 6%. For managed scenarios, we now include the labor costs for the personnel required to operate management tools. Administration: Under administration, we account for storage allocation, an element that we have revised and increased substantially, per Gartner’s client feedback. We now also account for storage management, a cost item that was not included in our previous analysis.
End-user costs: We have increased end-user salaries by 6%.
Many of the changes we have implemented in this update are the direct consequence of the feedback of Garner clients engaged in pilots and live deployments, and go in the direction of increasing TCO. Indisputable TCO benefits, due to new image management and server technologies, are partly offset by the changes we have implemented in this update.
A s s u m p t i o n s C o m m o n t o A l l
S c e n a r i o s
We build scenarios for a 2,500-user deployment, where the endpoint device is a thin client priced at $350, without considering volume discounts (see Note 1). Thin clients have a life cycle of six years and four years for servers. For the purpose of this research, we assume a mix of 50% data entry users (using one or two applications to do their job) and 50% task-oriented workers (using a small set of applications and operating within a known set of functions). The user mix impacts mostly end-user costs, as these are determined using the average salaries, but also the application mix and the help desk figures. Networking costs are not included in our model, as they vary too widely from organization to organization. Our model organization has only one large central location, and the HVDs are all hosted in one data center. More-dispersed organizations may have significantly different costs for improved network communications. Costs are presented per user, per year.
Each user has a cost allocation for software that includes an office suite, e-mail and calendaring, and business applications. On top of this, we allocate $180 per user for the perpetual license of HVD software, plus $30 per user, per year for maintenance. We assume no Software Assurance, so we have included a Microsoft Virtual Desktop Access (VDA) license at $100 per user, per year.
When appropriate these costs, we present TCO numbers for the following four scenarios, which assume different levels of manageability:
Unmanaged: Users can install applications and change settings; little to no management tools are being used. Moderately managed: There are tools and good processes and policies in place; users can install software and change at least some settings.
Locked and well-managed: There are tools, processes and policies in place; users cannot install software or change critical settings.
In managed scenarios, we include the cost of servers to run the management tools and labor costs for the technicians required to use the tools.
S c e n a r i o 1 : D y n a m i c I m a g e s , L i g h t
L o a d s
In this scenario, we simulate the use of current-generation HVD software that dynamically assembles the image for users. In Columns 2 and 3, we assume that 35-blade dual-CPU quad-core Xeon X5550 servers with 96GB of memory priced at $13,350 each and two chassis that can accommodate 16 blades each, priced at $2,700 each, will be used to
accommodate our model deployment of 2,500 users. No volume discount is taken into consideration. We assume the virtualization of nine users per core, i.e., up to 80 users per server.
In the Columns 4 and 5, we assume the use of 24-blade, dual-CPU six-core Xeon E7540 servers with 128GB memory priced at $15,100 each and two chassis. Again, we assume the virtualization of nine users per core; i.e., up to 108 per server. We allocate 1GB of storage for data per user for Windows XP scenarios, and 1.5GB per user in Windows 7 scenarios (for storage costs, see Note 2). This scenario is a de facto locked-down scenario. Figure 1 illustrates the TCO for this scenario, and compares it to a traditional locked and well-managed desktop deployment (for other desktop TCO scenarios, see Note 3).
In this scenario, the TCO of HVDs is 9% to 10% lower than those of well-managed and locked-down PCs. Direct costs are 4% to 6% lower than those of traditional desktops. Savings are in the area of IT operations administration and end-user
costs. Compared with the pooled image scenario described in Scenario 3, a dynamic image scenario with light loads is 11% to 12% less expensive to run overall, and has 13% to 15% lower direct costs. Capital costs are 7% to 9% lower than those of a pooled image scenario.
S c e n a r i o 2 : D y n a m i c I m a g e s , H e a v y
L o a d s
In this scenario, we again assume the use of current-generation HVD software that dynamically assembles the image for users; this time, however, we are hosting heavy desktop application loads. In Columns 2, 4 and 6, we assume that 45-blade, dual-CPU quad-core Xeon X5550 servers with 96GB memory priced at $13,350 each, fitted in three chassis priced at $2,700 each, will be used to accommodate the 2,500 users. Again, no volume discount is taken into consideration. In Columns 3, 4 and 7, we assume the use of 30-blade, dual-CPU six-core Xeon E7540 servers with 128GB memory priced at $15,100 each and four chassis. Again, we assume the virtualization of seven users per core. We allocate 14.85GB of storage for data per user for a Windows 7 scenario.
In this scenario, we simulate some degrees of desktop personalization, so we add to software costs an amount for persistent personalization software ($25 for a perpetual license) and for an annual maintenance fee ($5). Figure 2 illustrates the TCO for this scenario.
In this scenario, the TCO of HVDs is 15% to 6% lower than that of well-managed and locked-down PCs. Direct costs are lower or comparable to those of the traditional desktop deployment in all scenarios. It should be noted, however, that a HVD scenario that also uses persistent personalization software is more flexible than a well-managed and
locked-down PC, as it allows for some degrees of desktop customization.
For this scenario, we have presented a Windows 7
deployment. For a Windows XP deployment, we would define 13.2GB as the storage allocation for each user. This would reflect in an 11% lower storage cost and a 0.4% decrease in direct costs.
S c e n a r i o 3 : P o o l e d I m a g e s , L i g h t
L o a d s
Figure 3 presents the TCO for a pooled image implementation for light loads. This time, we assume that 35-blade, dual-CPU quad-core Xeon X5550 servers with 96GB memory priced at $13,350 each, fitted in two chassis priced at $2,700 each will be used to accommodate 2,500 users. Again, no volume discount is taken into consideration. We assume the virtualization of nine users per core; i.e., up to 72 users per server. Allocated to each user for a Windows 7 deployment is 15GB of storage.
In this scenario, the TCO for HVDs is comparable to that of a well-managed and locked-down desktop scenario. The direct costs and capital costs for HVDs are, however, 11% and 16% higher, respectively. An equivalent HVD deployment with Windows XP instead of Windows 7 would have 34% lower storage costs and 1% lower overall direct costs.
Figure 3. HVDs Pooled Images, Light Loads
S c e n a r i o 4 : D e d i c a t e d I m a g e s , H e a v y
L o a d s
Figure 4 presents the TCO for a dedicated image
implementation for heavy loads. Specific assumptions for this scenario include 45-blade, dual-CPU quad-core Xeon X5550 servers with 96GB memory priced at $13,350 each and three chassis that can accommodate 16 blades each, priced at $2,700 each. We assume the virtualization of seven users per core; i.e., 56 users per server. Each user will have 45GB of storage for a Windows 7 deployment.
Figure 4. HVDs Dedicated Image Implementation, Heavy Loads
Source: Gartner (December 2010)
Compared with a traditional distributed desktop scenario, the HVD implementation with dedicated images for heavy loads still has direct costs that are 8% to 13% higher. The overall TCO of HVDs is lower in unmanaged and moderately managed scenarios, due to significantly lower end-user costs in all HVD scenarios.
An equivalent HVD deployment with Windows XP instead of Windows 7 would have 11% lower storage costs and 1% lower overall direct costs.
Figure 6. Desktop PCs TCO
Source: Gartner (December 2010)
Figure 5. Costs and Volume Discounts for Storage
Source: Gartner (December 2010)
60TB to 120TB
N o t e 1
Thin-Client Versus Repurposed PCs for HVD Deployments
Several organizations use repurposed PCs for their HVD deployments; by doing, so they lower initial capital investments, However, they suffer higher energy costs and potentially higher IT operations costs, as PCs have a full OS to manage and secure, and more parts that can potentially fail.
N o t e 2
Storage CostsFigure 5 summarizes the costs and volume discounts for storage.
N o t e 3
Desktop PC TCOFigure 6 represents the desktop TCO used for comparison with the HVD TCO scenario. These differ from the figures published in «Research Desktop Total Cost of Ownership: 2011 Update» as they are calculated using the same user mix as the one used in the HVD scenarios in this research; i.e., 50% data entry and 50% task-oriented workers.
Gartner RAS Core Research Note G00209403, Federica Troni, Mark A. Margevicius, Michael A. Silver, 14 December 2010
THE ECONOCOM SOLUTIONS
6 . 1
Ta i l o r e d s o lu t i o n s : t h e
E c o n o c o m s o lu t i o n s
As detailed above, control and budgetary coordination of a transformation project of this scale includes several elements:
The initial investment and management of the transformation
Recurring management of costs and cost optimisation Billing for services.
In the traditional approach, each of these points is addressed separately, calling on specialists in each field.
The following providers are available on the market: Service providers that can manage a transformation project from a technological standpoint but who very rarely include the financial impact of the operation, which is handled by banks or specialised firms. Operational service providers who can manage recurring production tasks but who do not include budgetary solutions that would provide a holistic approach to costs.
A handful of companies that offer cross-charging solutions that enable the IT department to ensure optimal management of its service catalogue. Based on these observations, Econocom Group decided to assemble all these areas of expertise under the umbrella of a single, comprehensive offer.
The integrated offer approach means all the components can be combined into a consistent framework that ensures control of the entire operation, factoring in all the parameters of the equation.
With the transformation under control, Econocom can give the IT department all the tools they need to coordinate, anticipate and ensure the longevity of its system. It is this equation, which is often complex to solve, that Econocom includes in its 7RemoteServices offer.
6 . 2
P o s i t i o n i n g t h e
7 R e m o t e S e r v i c e s o f f e r
With this offer, ECONOCOM offers IT departments end-to-end assistance, laying down the first bricks of the upgrade strategy for the IT department’s shared infrastructure. In the interests of optimisation and effectiveness, this tried-and-tested approach combines workstation virtualisation and migration to Windows 7.
7 R e m o t e S e r v i c e s i s a n
o p p o r t u n i t y t o t r a n s f o r m y o u r
s h a r e d i n f r a s t r u c t u r e
ECONOCOM’s value-add offer consists in assisting its clients in planning and implementing the solution that is best suited to its needs, based on industry-recognised expertise in the following fields:
Technology and operations: engineering and deployment of shared infrastructure, virtualisation solutions, partnerships with Microsoft, Citrix and VMware.
Budgetary: financing and financial management solutions enabling companies to eliminate short-term budgetary and ROI constraints.
Organisational: Low-Touch (0-touch) operational outsourcing and organisation via our remote service centres and ITSM expertise.
6 . 3
E c o n o c o m : W h o a r e w e ?
A b o u t E c o n o c o m
With EUR 1,021 million in revenue in 2010 and 3,700 employees, Econocom Group is a European services company specialised in the management of IT and telecom resources for businesses. The services offerings include consulting, IT products and financing solutions, and managed services (outsourcing and maintenance). Econocom Group (BE0003563716 – ECONB) has been quoted on the Eurolist market of Euronext Brussels since 1986.
For more information: www.econocom.com
