Customer Solution Case Study
/ Manufacturer Saves DKK500,000 on Virtual Servers Compared to Cost of VMware
“Choosing VMware would have cost DKK500,000 more than Hyper-V, because Hyper-V and the System Center management suite were already included in our existing licences.”
Kim Brejndal, IT Manager, GN Netcom
Copenhagen-based headset manufacturer GN Netcom wanted to embrace virtualisation to reduce its IT infrastructure operating costs and improve service to its 800 internal users.The company chose the Hyper-V feature of Windows Server 2008 R2 instead of VMware because it was more cost effective and easier to integrate. Hyper-V cost DKK500,000 (U.S.$92,000) less than VMware and has helped cut the IT department operating budget by 40 per cent since 2007.
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.Document published October 2010
Business Needs
Manufacturer GN Netcom, a division of GN Store Nord of Denmark, develops and markets hands-free telephone headsets and related accessories under the Jabra brand. The headsets sell well to consumer mobile phone users and corporate call centres and offices. Following a company-wide restructuring, the GN Netcom global IT service, with five employees, provides round-the-clock service to 800 users in 20 countries.
The company gave a mandate to Kim Brejndal, IT Manager at GN Netcom, to
reduce operating and maintenance costs over twoyears. Virtualisation of the servers was one of the projects Brejndal considered to cut costs and make IT tasks more efficient. “We also wanted to respond faster to changing requirements in the company—for example, the need for greater server capacity,” he says. “Previously, we would have had to order a physical server, set it up, and prepare it for use. The virtual servers are already there, so all we have to do now is prepare them for use.”
In deciding its choice of a virtualisation solution, the company took into account several factors—the need for easy integration with the rest of the GN Netcom infrastructure, cost-effective licensing arrangements, and the scope for significant savings on the IT operations and maintenance spend.
GN Netcom was already using most of the products that make up the Microsoft System Center suite of server management tools. Brejndal says: “With our System Center Server Management Suite Datacenter licence, we already had access to the products for managing and monitoring a virtual environment.”
Solution
In terms of suppliers, GN Netcom faced a choice between VMware and Microsoft—the Hyper-V feature of Windows Server 2008 R2. Microsoft launched the first version of Hyper-V towards the end of 2008. It was, therefore, a very new product when GN Netcom chose its preferred vendor.
“We developed a strong business case for Hyper-V,” says Brejndal. “The Gartner Group assessment was that while VMware offered short-term advantages, Hyper-V was the best strategic decision for our requirements.” Virtualisation with Hyper-V cost GN Netcom only the consultants’ fees and the labour necessary for implementation—less than DKK150,000 in total.
The potential for simpler infrastructure and easy integration with the existing tools at GN Netcom put Hyper-V to the top of the list.With the server management tools already licensed from Microsoft, GN Netcom was in a position to centralise management of the systems, resulting in smoother trouble shooting, fewer contact points, and better coordination.
“Sharing the Gartner assessment, I believed Microsoft had a major commitment to virtualisation and would soon develop and update Hyper-V,” says Brejndal. “Some of our employees were sceptical about Hyper-V, but today the whole department is happy with the system.”
Benefits
Hyper-V has played a key role in GN Netcom achieving a 40 per cent reduction in IT operating costs since 2007. The most important advantage for the IT department is being able to manage with less hardware and server space. Brejndal says: “Choosing VMware would have cost DKK500,000 more than Hyper-V, because Hyper-V and the System Center management suite were already included in our existing licences.”
- Integration simplifies infrastructure management. Brejndal says: “The easy integration of Hyper-V with our other tools has ensured a much more efficient operation that consumes far fewer resources. Our technicians enjoy working with Microsoft tools, which are all based on the same terms and logic, and appreciate the familiar look and feel of Microsoft user interfaces.”
- Fewer servers occupy less space.Around 162 servers out of 350 are now virtualised, together with a total of 15 virtual hosts.
- Standardised software helps centralise systems management. Brejndal says: “We saw a greatadvantage in having as many tools as possible provided by one supplier, so we can centralise management of our systems. The platform is extremely well integrated with our other tools, helping us save considerably on licensing costs.”
- Technicians respond faster to changing requirements.With virtual servers, the IT department with five technicians is far more responsive to the needs of the business. “If there is a sudden need for greater server capacity we can respond in a matter of hours rather than days,” says Brejndal.
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Document published October 2010