vTax VMware and Microsoft Hyper-V Value Proposition

Author by Nathan Lasnoski

If you were going to purchase two basically identical cars, each from different manufacturers, but one was 1/3 the price, why wouldn't you buy it?  Further, if you already had a car, but the cost for service continued to increase and you could purchase a new car for less than your maintenance cost, would you continue to operate the existing car?  I'd think not.  If there were major product differentiations, I'd say you could make an argument, but assuming a similar set of functionality you'd be hard pressed not to select the less expensive option.   What if the cheaper car had more functionality in many areas?  Such as AWD, air conditioning, or a fancy sound system?  How would you then justify paying more for less capability.   What if the cheaper car also provided a model for managing the next wave of transportation?  For example, what if it also allowed you to easily park at the "sonic train" station to use the global transportation infrastructure?    This is the exact scenario we are in with Hyper-V and VMware.  Microsoft Hyper-V has commoditized server virtualization, has innovated in areas that VMware can't touch, and even allows you to manage the old VMware infrastructure.  Sound familiar?  Microsoft did the same thing to Novell, Lotus, hosting providers, etc.    How did VMware respond to this new business reality?  Raise their prices.  Instead of innovating, VMware decided that the best move was to move toward a "consumption based licensing model".   The problem is that consumption in this case is on hardware you already own and have provisioned.  The result was that VMware customer revolted.  Here are a few examples from VMware's own forums:    http://communities.vmware.com/thread/320877?start=1305&tstart=0   After finding out that the customers didn't appreciate the changes, they modified their licensing scenario, but not enough that it won't continue to significantly impact the wave of VMware to Hyper-V conversions.  Jeff Woolsey describes this well in his latest blog post on the subject: http://blogs.technet.com/b/virtualization/archive/2011/08/15/beware-the-vmware-memory-tax-part-2.aspx   So, what do I get if I move to Hyper-V?  
  • You will show cost savings year to year.  You'll pay roughly 1/2 to 1/4th the cost you do today.
  • You get a clear licensing model that you've likely already paid for
  • You will gain increased management of your end-to-end systems through the System Center suite
  • You will gain protection of your virtual machines and applications through products like DPM
  • You will gain private to public cloud management capabilities
  What is the comparison  (from Jeff Woolsey's post)?  
  VSphere 5.0 Standard VSphere 5.0 Enterprise VSphere 5.0 Enterprise Plus MS Core Infrastructure Windows Server 2008 R2 SP1 Datacenter Edition, System Center Datacenter Edition & Forefront
Cost Per CPU $995 $2875 $3495 $4584
Guest Instance Cost per CPU (3 year cost including SA) $4182 $4182 $4182 Included Above
VMware SnS Per CPU (3 Years) $746 $2,156 $2,621 --
Memory “Entitlement” (vTax) 32 GB 64 GB 96 GB No Memory Tax. Hyper-V supports up to 1 TB of physical memory per server and up to 64 GB per VM today.
10 Physical Servers (2 Sockets) with 128 GB RAM 10 x 4 licenses $153,290 10 x 2 licenses $184,270 10 x 2 licenses $205,970 2 licenses $91,680
10 Physical Servers (2 Sockets) with 192 GB RAM 10 x 6 licenses $188,120 10 x 3 licenses $234,580 10 x 2 licenses $205,970 2 licenses $91,680
10 Physical Servers (2 Sockets) with 256 GB RAM 10 x 8 licenses $222,940 10 x 4 licenses $284,890 10 x 3 licenses $267,130 2 licenses $91,680
10 Physical Servers (2 Sockets) with 384 GB RAM 10 x 12 licenses $292,590 10 x 6 licenses $385,510 10 x 4 licenses $328,290 2 licenses $91,680
10 Physical Servers (4 Sockets) with 512 GB RAM 10 x 16 licenses $445,880 10 x 8 licenses $569,780 10 x 6 licenses $534,260 4 licenses $183,360
10 Physical Servers (4 Sockets) with 768 GB RAM 10 x 24 licenses $585,180 10 x 12 licenses $771,030 10 x 8 licenses $656,580 4 licenses $183,360
10 Physical Servers (4 Sockets) with 1024 GB RAM 10 x 32 licenses $724,480 10 x 16 licenses $972,280 10 x 8 licenses $840,070 4 licenses $183,360
  Note that the System Center stack offers a full end-to-end system suiteIt includes virtual management, application deployment, backup, monitoring, and software deployment.  I have found many clients have converted to Hyper-V solely for the value of end-to-end management and the cost benefit was simply a factor that made the value proposition more clear.    Here are some other System Center blog posts that should be helpful: http://www.concurrency.com/blog/back-me-up-im-going-in-hyper-v-and-backup/ http://www.concurrency.com/blog/microsoft-cloud-solutions/ http://www.concurrency.com/blog/dpm-2012-features-and-hyper-v/ http://www.concurrency.com/blog/vmm-2012-beta-private-cloud-management/   For more information on Hyper-V, check this out: http://www.concurrency.com/blog/why-choose-microsoft-virtualization/   Don't forget the awesome Windows 8 features coming down the road: http://www.concurrency.com/blog/windows-8-hyper-v-replica-and-processors-at-world-wide-partner-conference/   So how do I convert?  Can I use my existing hardware?  
  • Yes.  You can use your existing hardware.  Hyper-V projects can shift the existing hardware away from VMware and into a Hyper-V cluster.
  • You can convert your existing virtual machines to Hyper-V VMs using SCVMM V2V conversion tool.
  • You can convert your existing physical machines to Hyper-V VMs using SCVMM's P2V conversion tool.
  If you are building a new virtual infrastructure, check out Hyper-V.  If you currently are running VMware, let's chat, and I think you'll find that Hyper-V is worth a look.   Here are some good case studies to check out as well:   Target: http://www.microsoft.com/casestudies/Microsoft-Services-and-Support/Target-Corporation/Large-Retailer-Relies-on-a-Virtual-Solution-to-Deliver-Optimal-Shopping-Experience/4000009407   SAP:  http://www.microsoft.com/casestudies/Windows-Server-R-Datacenter/SAP/SAP-Eases-Deployment-Time-Cost-by-Percent-Endorses-Hyper-V-Without-Reservation-/4000010713   Happy virtualizing!   Nathan Lasnoski      

Nathan Lasnoski

Chief Technology Officer