This webcast is the second in a monthly series on why I/O is strategic for the data center. Bob Laliberte, senior analyst from ESG, will present the importance of I/O to virtualized environments. As they continue to mature and become more flexible and dynamic, I/O becomes critical to a successful deployment.

1. Why I/O Is Strategic
for Virtualization
Presented by: Emulex and ESG
1

2. Webcast Housekeeping
1. All attendees will be on mute during the presentation
2. Please submit your questions via the text/chat feature
3. We will do all Q&A at the end of the presentation
2

3. Why I/O Is Strategic
Shaun Walsh
SVP of Marketing and
Corporate Development
3

4. Why I/O is Strategic?
Building a Virtual Panel of Experts!
4

5. Topics for the Virtual Panel
Server Cloud Big Network
Virtualization Computing Data Convergence
5

6. TM
Enterprise Strategy Group | Getting to the bigger truth.
Why I/O Is Strategic
An ESG Perspective
©2012 Enterprise Strategy Group

7. Discussion Points
• Why you should care about I/O
 High level IT priorities
 What’s going on in the data center
• Impact of virtualization on I/O
• Summary
© 2012 Enterprise Strategy Group 7

8. 2012 IT Spending Survey Overview
• Online survey of IT professionals familiar with their
organization’s IT spending in 2011 and plans for 2012
• 614 completed surveys
• Midmarket (100-999 employees) and enterprise-class
(1,000+ employees) organizations
• Geographic scope: North America, Western Europe (UK,
France, Germany) and APAC (Japan, Australia)
© 2012 Enterprise Strategy Group 8 Confidential – [Company] Strategic Programs

9. Most Important IT Priorities
Improve data backup and recovery 30%
Increased use of server virtualization 30%
Major application deployments or upgrades 29%
Manage data growth 27%
Information security initiatives 27%
Business continuity/disaster recovery programs 25%
Data center consolidation 24%
Desktop virtualization 23%
Mobile workforce enablement 22%
Deploying a "private cloud" infrastructure 22%
0% 5% 10% 15% 20% 25% 30% 35%
© 2012 Enterprise Strategy Group 9

10. Most Important Considerations in Justifying IT Investments
37% 2009 (N=492)
42% 2010 (N=515)
Business process improvement
39%
2011 (N=611)
42% 2012 (N=614)
31%
33%
Return on investment/
37%
speed of payback
39%
62%
54%
Reduction in operational 43%
expenditure
38%
0% 10% 20% 30% 40% 50% 60% 70%
© 2012 Enterprise Strategy Group 10

11. Transformation is Underway
• Business needs to react more quickly
• IT needs to become more agile
• Virtualization technologies enable transformation
• I/O under pressure
© 2012 Enterprise Strategy Group 11

12. Data Center Networking Trends Overview
• 280 IT professionals responsible for
evaluating, purchasing, and managing data center
networking technologies for their organization
 Included network architects, IT directors, data center managers
 Respondent organizations were required to be current users of server
virtualization technology (production and/or test and development)
• Enterprise organizations (i.e., 1,000 employees or
more)
• North America only
• Multiple verticals including
manufacturing, financial, government, health care, and
communications
© 2012 Enterprise Strategy Group 12

13. Data Center Consolidation Projects
No, 37%
Yes, 63%
© 2012 Enterprise Strategy Group 13

14. Consolidating into Multi-tenant Data Centers
No, plans or
interest, 7%
No, plans but
interested in
doing so, 13%
Yes, 48%
No, but we plan
to within the
next 24
months, 32%
© 2012 Enterprise Strategy Group 14

15. Server Virtualization, # of Virtual Machines
Total virtual machines deployed today Total virtual machines deployed 24 months from now
25%
20%
20% 19%
17%
16%
15%
15% 14%
13% 13% 13%
12%
11%
10%
10%
6%
5% 5%
5% 4%
3%
2% 2%
1%
0%
< 25 25-49 50-100 101-250 251-500 501-1000 1001-2500 2501-5000 >5000 Don’t know
© 2012 Enterprise Strategy Group 15

16. Server Virtualization, VM Density
Average number of VMs per physical server today
Average number of VMs per physical server 24 months from now
50%
45%
45%
40%
35%
35%
30%
30%
25%
24% 23%
21%
20%
15%
10% 8%
6% 5%
5% 3%
0%
Don’t Know
<5 5-10 11-25 >25
Faster & more powerful Intel platforms (Romley) will drive greater density levels
© 2012 Enterprise Strategy Group 16

17. Why is this Important?
Legacy
.5 Gbps 1 GbE,
1,2,4,8 GbFC
1 app/server
Virtualized
Environments
10+ Gbps 10, 40 GbE,
16 GbFC
25 apps/server
© 2012 Enterprise Strategy Group 17

18. I/O is Becoming Strategic
• Production and mission critical environments
• Mixed workloads
 QoS
• Multi-tenant environments
 Partition traffic
• Need for more I/O
 10, 40, 100 GbE
 16, 32 GbFC
© 2012 Enterprise Strategy Group 18

19. Server-to-Network I/O Interface Standards
Don't know, 2%
Our current
standard server-
to-network I/O
interface is Our current
10GbE, 20% standard server-
to-network I/O
interface is
1GbE, 31%
Our current
standard server-
to-network I/O
interface is
1GbE, but we are
actively moving
to 10GbE, 47%
© 2012 Enterprise Strategy Group 19

20. Primary Drivers for Adoption of 10 GbE I/O Interface
Server virtualization increases throughput
requirements (i.e., multiple virtual machines per…
43%
Current or anticipated data center traffic 42%
Costs have decreased to an acceptable level 41%
Data center consolidation is driving massive data
center scale
36%
Current or future implementation of a private cloud in
our data center
35%
We are making this transition due to the fact that
10GbE server-to-network I/O interfaces come…
34%
Network convergence of communications and storage
(i.e., iSCSI, FCoE, etc.)
31%
Greater use of server clustering or more direct server-
to-server (or direct memory) communications…
29%
New types of applications (i.e., analytical
applications, scientific applications, etc.)
27%
Vendors are more actively selling the technology 20%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
© 2012 Enterprise Strategy Group 20

21. Converged Data Center Networks
Don't know, 2%
No, and we have
no plans or
interest, 6%
Yes, we have
No, but we are already done
interested in doing this, 41%
this, 18%
No, but we plan to
do this within the
next 24
months, 34%
© 2012 Enterprise Strategy Group 21

22. Drivers for Converged Data Center Networks
Reduce operating costs and overhead 57%
We believe that a converged data center network
46%
infrastructure will simplify our network architecture
Reduce capital costs by converging all traffic on common
44%
hardware
We believe converged networking technology is mature
38%
enough to make this change
Our networking vendor is helping us make this decision
by providing converged networking equipment and 28%
guidance
0% 10% 20% 30% 40% 50% 60%
© 2012 Enterprise Strategy Group 22

23. Familiarity with New Data Center Networking Technologies
Very familiar Somewhat familiar Unfamiliar
Fibre Channel over Ethernet (FCoE) 49% 42% 9%
Flat network 42% 48% 10%
Data center bridging (DCB), aka CEE and DCE 36% 46% 18%
Edge virtual bridging, aka, universal multi-channel (UMC) 35% 44% 21%
Virtual Ethernet Port Aggregator (VEPA) 35% 45% 20%
OpenFlow 34% 43% 24%
Single root IO virtualization (SR-IOV) 31% 45% 24%
Shortest Path Bridging (SPB) 31% 49% 21%
Transparent Interconnect of Lots of Links (TRILL) 30% 44% 25%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
© 2012 Enterprise Strategy Group 23

24. Impact to I/O - Convergence
VMs Protocols Physical I/O Blender Storage Networks Storage
Server
NFS
CIFS Dual Port
10 GbE
Adapter
iSCSI
FCoE
© 2012 Enterprise Strategy Group 24

25. Impact to I/O – Virtual NIC
Physical Logical
2.5 Gb
2.5 Gb
2.5 Gb
Dual Port
10 GbE 2.5 Gb
Adapter
2.5 Gb
2.5 Gb
2.5 Gb
2.5 Gb
© 2012 Enterprise Strategy Group 25

26. Impact to I/O – SR-IOV
Logical Physical
Virtual
Machines
Dual Port
10 GbE
Adapter
Up to 56 logical
adapters
© 2012 Enterprise Strategy Group 26

27. Impact to I/O - NVGRE
Virtual Virtual Data Center
Machines Fabrics or Cloud
Environments
Dual Port
10 GbE
Adapter
© 2012 Enterprise Strategy Group 27

28. Impact to I/O - VXLANs
Cloud scale exceeds VLAN capabilities…
…VXLAN scales up to 16 million virtual LANs
© 2012 Enterprise Strategy Group 28

29. Summary
• IT infrastructures rapidly evolving
• Server virtualization plays a critical role
• Need to understand impact to & importance of I/O
• Architect I/O with advanced technology
• Enable high performance and cloud scale
environments
© 2012 Enterprise Strategy Group 29

30. For more information, please contact
Thank You Bob Laliberte, Senior Analyst
508.381.5169 | bob.laliberte@esg-global.com
Getting to the bigger truth. TM
© 2012 Enterprise Strategy Group