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Living in a virtual world

FASTtalk July 2008

It seems like everyone is talking about virtualisation. Those with a history in the IBM mainframe world will suggest they’ve seen it all before, and indeed there are parallels when it comes to creating effective licensing structures.

But like ITIL, which we explored last quarter, virtualisation has the potential to transform the way many organisations utilise software resources. IT decision makers agree: according to the Information Age 2008 Annual Effective IT Survey over 85 per cent of those that have adopted virtualisation technology in the last 12 months are convinced of its effectiveness.

  • What are the real issues behind virtualisation?
  • What are the different types of virtualisation?
  • How should it be introduced, managed and monitored?
  • What are the potential pitfalls? And how and when will an effective licensing structure evolve?

These were the questions raised at the recent FASTtalk Roundtable discussion.

A new industry paradigm

It is easy to suggest that it is the green issue that has swept virtualisation onto the ‘must tackle it’ agenda of every organisation. Certainly the green agenda – and the potential to save power within the data centre – has been a catalyst. But there are other reasons: an increasing demand for fast deployment and resilience, compliance, security, growing infrastructure complexity, mushrooming energy prices, and limits on power availability.

A measure of virtualisation’s importance is that it is now on the Finance Director’s radar screen and also featured in the Dilbert cartoon strip, a clear signal that an issue has hit home. There are a number of ways to virtualise: Server (hardware) Virtualisation, Virtual Desktop Infrastructure (VDI), and Application Virtualisation.

Whichever kind of virtualisation is being considered, one of the foremost thinkers on virtualisation, Ian Osborne from Intellect believes its take-up is the result of a perfect storm. "I have been involved with this technology and Grid Computing for three years. Virtualisation is undoubtedly collapsing the amount of hardware installed and it has changed the landscape for the IT Director. It’s not fundamentally different from the old IBM 370 mainframe, but there is no doubt that it is changing the industry. Virtualisation has disrupted the accepted link between software and hardware kit, and what that means is we now need to find new ways of software licensing. I know the software industry has been looking at this and is debating how a licensing process might work. In some ways, the industry is moving ahead with virtualisation at one level and struggling at another.”

Getting to grips with virtualisation

 

Tips for virtualisation success

At the end of the roundtable, the participants came up with the following advice for users and vendors trying to get to grips with virtualisation:

  • Virtualisation or not, it’s still necessary to stick to good IT management principles
  • Both vendors and users will have to make some concessions on licensing
  • Getting towards a concept of ‘value’ would be useful
  • Think of the better deployment benefits in terms of support staff that virtualisation offers
  • Avoid the Finance Director’s ‘there’s a truckload of savings here’ thinking

 

Martyn Hobbs, asset management specialist at Symantec says his company finds itself in an interesting position on virtualisation. “If we look at ourselves as the fourth largest software company, we are concerned about people legitimately using our software, and we now find ourselves in a poacher turned gamekeeper situation, seeing things as a software provider, understanding the issues of The Federation Against Software Theft (The Federation) and seeing it from our customers’ view as well.”

Mark Cresswell, CEO of Scalable Software says that when it comes to finding the right model of licensing for virtualisation, there is no need to reinvent the wheel. “It took IBM 20 years to figure out what was the right licensing model for the 370, and ultimately it was based on usage. IBM couldn’t have come up with that in isolation; it came from some bloody battles with customers.

I’d say we should probably adopt that model again because ultimately it’s the same buyers. It’s all been done before, and I sense a certain inevitability about it. There is a lot of scope for abuse on both sides of the fence with virtualisation. ‘Only 300 using it? But you’ve got 3000 that could.’ You’ve got to be able to monitor usage to make it work.”

Lee Schofield, director of alliances at Trustmarque agrees, but warns that licensing models will need to cater for the subtleties of usage. “It has to be fair for the customer. If you are using a server from a third party, and just using 15 minutes in a monthly pay scheme, you could pay the same as someone using it every hour, every day under the same scheme. And if you’re a service provider, selling the service on to the customer, it is going to get very
complicated.”

One of the problems in take-up has been the lack of a co-ordinated response to virtualisation from the vendors. Gavin Hobbs, supplier manager of FAST customer Royal and Sun Alliance has been investigating how it can adopt virtualisation, and found itself getting a less than encouraging response. “We can see some cost savings in less ‘tin’ and a smaller footprint from virtualisation. So 18 months ago we had a conversation with a large database company, but they told us they didn’t want to know about virtualisation.”

Phil Heap, of FAST accepts that users need clarity from vendors, but warns that they must take actions to help themselves as well. “In many ways, the position is the same as we have now, but with another layer on top. People will just have to keep track of what they’ve got even more effectively than they do now, because these things are so movable and flexible. You’ve got to dig into it, understand it and see if you can benefit from it. Yes, the licence link with hardware has gone and there is no doubt that we will need to consult with suppliers and get an effective plan in place.”

Understanding the benefits

Analysts Dennis Szubert from Quocirca and David Norfolk from Bloor Research both see serious benefits from virtualisation, including more effective management and disaster recovery, and even a greater role for user groups, remembering the effectiveness of the old IBM Mainframe User Group, and more recently, the Oracle User Group.

"Virtualisation is like a tide out there coursing through the industry, though I’d agree that licensing isn’t one of the benefits,” says Szubert. “By investing in this technology, firstly in a development and test base before moving into production, you can get a lot of benefits. It is still very early days though: less than 10 per cent of servers are virtualised and it’s less than 1 per cent for desktops. The benefits? You get space and hardware savings, and you need less power, and less cooling. For example, John Lewis has saved itself having to build a new data centre by virtualising.
There is a management benefit too. Instead of taking a day to duplicate a server, you can do it in 10 minutes. It becomes so easy to create another server. In fact, it can become too easy. There are benefits in disaster recovery too. The first people going through virtualisation will be the industries that need a lot of control on security e.g. financial services and where there is a lot of government regulation.”

Norfolk concurs. “My feeling is that virtualisation is the obvious way to go. I do think there is a role for user groups when it comes to licensing,” adds Norfolk. “My impression is that Oracle listens to the Oracle User Group and it appears to be a very even relationship.”

Avoiding the flashing lights

Although many organisations are now looking into ways of using virtualisation, there is a risk that organisations are already adopting it for the wrong reasons – for example, the Finance Director seeing virtualisation as a way to ‘save a truckload of money’ – or are falling into bad practices, with a breakdown in security a considerable risk. “There is a problem if you’re going to approach this with an ‘I’m only going to save licence fees attitude.’ Only government departments should be thinking in that way,” says Osborne.

Norfolk agrees that some organisations may already be treating virtualisation too lightly. “I think that people who think that virtualisation is going to be financially easy are going to get a real shock when they find they’re spending the same millions of dollars and being billed twice over.”

Symantec’s Martyn Hobbs has already seen the drawbacks of virtualisation first-hand with some customers. “Is it a more secure environment? No. I recently spoke to a developer at one customer and he suggested Software Asset Management was holding them back. I asked him if it was right for a developer to create 20 machines in a virtual environment. One of the issues that we have to focus on with virtualisation is the management side. Process, procedure and policy are critical. We mustn’t get distracted by the flashing lights of the virtual environment,” says Hobbs. “As usual, it comes down to a people issue. There is that famous quote, ‘If you can’t change the people, change the people’. You have to get developers to use a standard image. It’s very much like adopting ITIL to manage people, processes and technology. Managing people is risky and you may upset them. Buying technology is much more attractive and it doesn’t talk back to you.”

Gavin Hobbs from Royal and Sun Alliance insists that his organisation is certainly not considering virtualisation as a means of reducing licence fees. And he hopes vendors do not see virtualisation as a means to increase them. “We’re not looking to save money or claw licensing fees back from Microsoft or Oracle. But equally we’re trying to make sure the vendors don’t drive their own increase around virtualisation through opportunistic practices. We don’t want to set up a cottage industry around it.”

There will be key benefits when it comes to running applications. Adrian Walmsley from the British Computer Society says one of the clear benefits in using virtualisation under VMWare is the flexibility in using older applications. “I’ve got XP under VMWare Fusion on a MacBook and it’s running extremely reliably. I’ve got applications still on Windows 98, and you can run them virtually under VMWare. If you have old applications, but don’t want to run old hardware, just stick them on an image. There are always going to be some old applications around. Everybody buys into virtualisation, and the only thing that’s holding it up is the licensing. The challenge has always been that you can’t go and audit it.”

The Federation’s Chief Executive John Lovelock agrees, and insists that work is taking place to move on licensing for virtualisation. “What we’re attempting to do through The Federation is draw in our 100 software publishing Members. We want to work with them and Intellect to better understand what’s going on. Vendors and users shouldn’t be enemies and we need to bring them together. Vendors will probably have to make some concessions. That is the way forward.” Bloor Research’s David Norfolk agrees, but insists that it shouldn’t be a one-way street. “Users will have to make some concessions too. That means adopting usage and best practice to make it workable.”

Looking ahead to a virtualised world

Despite the success of VMWare and IT Directors’ awareness of virtualisation, it is still early days in terms of a picture of where widespread virtualisation will lead us. Trustmarque’s Lee Schofield believes that, like conversation at the roundtable, a discussion around virtualisation can be a wide-ranging one. “We started off talking about servers, then desktops, and onto applications. I believe application virtualisation is the really exciting part and is probably what will cause all the vendors the biggest headache.”

Osborne though has some sympathy for the vendors. “Microsoft has certainly been trying to innovate in this space and at the same time is trying to ensure it doesn’t hamper itself. Users too will have to be careful. I heard of one organisation that after virtualising, now has twice as many servers as it did originally because staff have been bypassing corporate policies and procedures. It still comes down to good IT management.”


The participants of the FASTtalk Roundtable included Ian Osborne from Intellect, Phil Heap from FAST Limited, The Federation Against Software Theft, Federation Members Scalable Software, Trustmarque and Symantec, the British Computer Society, industry analysts and FAST Corporate Member Royal and Sun Alliance..
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