Crutchfield

Audio Retailer Makes Sound Decision with Virtualization, Saves $245,000 in Hardware

Crutchfield sells consumer electronics through its mail-order catalog and its e-commerce Web site. The IT staff turned to virtualization to cut data center costs, improve IT staff productivity, and promote business agility. However, its VMware solution couldn’t virtualize 64-bit operating systems, limiting server consolidation and the deployment of new software to development staff. Crutchfield opted not to spend approximately U.S.$44,000 to upgrade its VMware solution, instead deploying a cost-effective solution to achieve its goals—the Windows Server® 2008 Datacenter operating system and the Hyper-V™ virtualization technology. Today, IT has cut data center heat output by 50 percent and reduced physical servers by 30 percent. The IT staff also deployed Microsoft® System Center data center solutions to manage physical and virtual servers, boosting IT staff productivity by 40 percent.

Situation

It was in 1974 that Bill Crutchfield encountered a stumbling block while upgrading his Porsche 356 coupe. He wanted to install a new stereo, but he couldn’t find a local retailer or mail-order company to provide one. So he decided to launch a mail-order car-stereo business. When initial sales were slow, Crutchfield conducted a customer survey and discovered that customers wanted detailed installation guidance in the catalog. Crutchfield responded by cataloging and diagramming more than 10,400 vehicles to provide in-depth information for do-it-yourself stereo installation. He also added two call centers to increase phone-in support services. Since then, emphasizing complete information and exceptional customer service has been a defining factor in the company’s success. 

Since deploying Hyper-V, IT has shown a new level of agility and responsiveness. Thanks to our Microsoft virtualization solution, we are meeting the needs of the business while minimizing costs. Craig VanHuss Systems Administrator, Enterprise Systems Group, Crutchfield

Over the years, Crutchfield has expanded its Charlottesville, Virginia, facility into its current 1.5 million cubic-foot headquarters with a satellite facility in Norton, Virginia. Today, it operates retail storefronts in Charlottesville and Harrisonburg, Virginia. Its catalog is mailed to approximately 6 million households.

Along with exceptional customer service, Crutchfield can attribute its success to an astute appreciation of the role of technology in today’s retail environment. In fact, it was one of the first electronics retailers to recognize the potential of the Internet, launching an e-commerce site ahead of its competitors to carve out a secure niche as the only Internet retailer for a number of electronics vendors. And to support its business, Crutchfield has invested significant IT development resources into creating a cadre of in-house applications.

“We pride ourselves in building between 80 and 90 percent of the applications we use to run the business,” says Jeff Bingaman, Director of IT at Crutchfield. “These include our e-commerce Web site, our distribution center, and our accounting systems.”

Rising Data Center Costs

Most of these applications are housed in a data center at the company’s Charlottesville headquarters. The company also has a small data center in its call center in Norton. However, as Crutchfield acquired more servers to bring new business tools online, it incurred extra heating and cooling costs at both these locations. This prompted the IT department to begin looking at ways to trim IT costs and streamline data center operations to boost productivity and overall profitability. 

So in 2007, the IT department deployed a virtualization solution to consolidate hardware. The virtualized environment consisted of a VMware ESX 3.0.2 and Virtual Center solution running on a single server that hosted 21 virtual machines, and a Microsoft® Virtual Server 2005 R2 implementation that hosted 48 virtual machines.

This first foray into virtualization enabled Crutchfield to slow the server sprawl in its data center and gave the IT department firsthand experience of the potential of the technology to reduce IT infrastructure costs by consolidating multiple workloads onto fewer physical servers. However, by the early months of 2008, the company’s heating, ventilation, and air-conditioning (HVAC) costs were again reaching unacceptable levels.

“Our data center had a heat output of 150,000 BTUs per hour and this had exceeded the cooling capabilities of our HVAC unit,” recalls Roger Johnson, Team Leader, Enterprise Systems Group, Crutchfield.

“We could either make a fairly large investment for a new HVAC unit or move more quickly into expanding our virtualization solution. We were inclined to continue the work we had started to reduce the total physical hardware in our data center to the point where we wouldn’t have to increase the cooling capacity in that room for a number of years,” says Craig VanHuss, Systems Administrator, Enterprise Systems Group, Crutchfield.

Development Productivity Issues

Also, the IT department wanted to expand its virtualization solution to include the test and development environment and improve productivity for the 30 development staff members. The development of in-house applications is an extremely important function within IT at Crutchfield. However, development staff members were frustrated by less than optimal performance of systems running on older hardware, which reduced productivity and impeded accurate testing.

Barriers to Virtualization

Because the existing virtualization solution at Crutchfield did not support 64-bit guest operating systems, the IT staff couldn’t move forward with virtualizing mission-critical, highly transactional systems. Many of these applications were running on aging hardware with limited ability to support their high memory and processor demands. The company wanted to virtualize such applications within a high-availability failover cluster to boost business continuity and disaster recovery, as well as to save money on buying expensive new hardware. For the test and development environment, saving money on hardware would reduce the price of upgrading to Microsoft Visual Studio® Team System 2008 Team Foundation Server, which Crutchfield wanted to deploy so its development staff could work more efficiently. Similarly, the company wanted to upgrade its scheduling application used by managers at the call center. However, this application ran on an aging terminal server running Windows Server® 2003 Terminal Services. Upgrading the application would have necessitated purchasing another expensive server.

“We had so many reasons for building out our virtualization solution, but with our current platform we couldn’t make any headway,” says Bingaman. “We began looking at the virtualization options available to expand on the work we had done.” 

About this time, Microsoft released the Hyper-V™ virtualization technology that is a feature in the Windows Server 2008 operating system. Crutchfield decided that IT staff needed to evaluate the pros and cons of extending its VMware solution or deploying a brand-new virtualization solution from Microsoft.

Solution

It didn’t take long for Crutchfield IT staff to choose a Microsoft virtualization solution over investing in the latest version of VMware ESX. The company already had a large infrastructure based on Microsoft software, and its IT staff was familiar with Windows®-based technologies. However, for Crutchfield, it was a simple cost/benefit analysis that resonated the most.

We had so many reasons for building out our virtualization solution, but with our current platform we couldn’t make any headway. Jeff Bingaman Director of IT, Crutchfield

“We were looking at approximately $44,000 to upgrade our VMware ESX, whereas Hyper-V is a feature included in Windows Server 2008 and had all the virtualization capabilities we required,” says VanHuss. “And the savings got even more dramatic when we compared the licensing policies of VMware and Windows Server 2008 Datacenter. VMware would have cost us approximately $800 for a standard client access license [CAL] per virtual machine. With Hyper-V as part of the Windows Server 2008 Datacenter CAL, we can have unlimited guests without additional cost. The choice was a no-brainer.”

As part of its virtualization solution, Crutchfield also acquired the license for the Microsoft System Center Server Management Suite Enterprise. This includes Microsoft System Center Virtual Machine Manager 2008, Microsoft System Center Operations Manager 2007, Microsoft System Center Configuration Manager 2007, and Microsoft System Center Data Protection Manager 2007.

The IT team at Crutchfield was so excited by the potential of Hyper-V that it immediately deployed its host failover cluster in September 2008. It used two Dell PowerEdge R900 quad-processor, quad-core servers with 128 gigabytes (GB) of RAM each. The cluster is supported by an EMC CLARiiON CX-320c storage area network that uses the iSCSI standard. The IT team took advantage of the clustering capabilities in Windows Server 2008 to streamline cluster configuration in an active-passive mode. “The cluster validation tool and streamlined setup were great assets that ensured we configured everything correctly so that it would be supported by Microsoft if we were to have any issues,” says VanHuss.

Then the IT team configured two Microsoft Hyper-V Server 2008 standalone servers hosting Hyper-V in the test and development environment. (See Figure 1.)

Figure 1 – Instead of upgrading its VMware virtualization solution, Crutchfield chose Microsoft Hyper-V Server to virtualize its 64-bit applications and boost productivity in its test and development environment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Next, the IT team deployed another standalone Windows Server 2008 Datacenter server running Hyper-V in the remote call center. Finally, at the company’s two retail outlets, it installed Hyper-V on two servers running Windows Server 2008 Enterprise. 

The team migrated all 48 virtual machines hosted in its Virtual Server 2005 R2 environment to Hyper-V by copying the virtual hard disks and rebuilding the configuration for each virtual machine. This was accomplished before the release to manufacturing date for System Center Virtual Machine Manager 2008. However, this product was available for the team when it was ready to migrate the virtual machines from its VMware environment and to begin its physical to virtual (P2V) conversions.

“Using Virtual Machine Manager 2008 to migrate guests from VMware to Hyper-V and for P2V conversions, we got the job done 60 percent faster than if we had done it manually,” says VanHuss.

By April 2009, Crutchfield has completely retired its VMware solution, migrating 10 VMware virtual machines to Hyper-V and decommissioning the rest. In addition to migrating the 48 virtual machines from the Virtual Server environment, Crutchfield virtualized another 25 physical servers in the Hyper-V environment, including 6 virtual machines at the call center and a virtual instance of System Center Configuration Manager 2007 at each of the retail stores. The team also replaced the aging terminal server running Windows Server 2003 Terminal Services. It deployed Terminal Services RemoteApp™, a feature in Windows Server 2008 Terminal Services that enables remote applications to behave largely like local applications, on its Hyper-V failover cluster.

“For P2V conversions, we targeted those systems running on the oldest, least efficient hardware to reduce our heating costs as much as possible,” says VanHuss.  “We also took advantage of being able to virtualize six applications running on 64-bit operating systems. This has been particularly beneficial for our test and development environment. These applications include highly transactional systems that run on Microsoft SQL Server® 2005 and SQL Server 2008, such as Visual Studio Team System 2008 Team Foundation Server, and two servers that host SQL Server 2008, which our Web development staff use to test enhancements to our Web site. Also for our developers, we built a Windows Communication Foundation cluster that runs on a 64-bit operating system. We took advantage of the new virtual switch capabilities in Hyper-V that makes it easy to configure virtual machines to run with Windows Network Load Balancing.”

Benefits

Today, the IT department at Crutchfield is using its virtualization solution from Microsoft to save money and support the business. The IT department is building a more efficient infrastructure that’s reducing data center and licensing costs, boosting productivity in the test and development environment, improving IT manageability, and driving business agility.

Reducing Costs

For Crutchfield, the main driver behind virtualization was to reduce IT costs. Today, the company has made significant headway in building a leaner, greener data center, reducing infrastructure costs through hardware consolidation, and saving on software licensing.   

We were looking at approximately $44,000 to upgrade our VMware ESX, whereas Hyper-V is a feature included in Windows Server 2008 and had all the virtualization capabilities we required. Craig VanHuss Systems Administrator, Enterprise Systems Group, Crutchfield

It was a foregone conclusion among IT staff that they would rather not pay approximately U.S.$70,000 for a new HVAC unit to handle the increased BTU production in the data center. However, instead of having to pay $44,000 to upgrade its VMware solution to retire aging hardware, Crutchfield realized all those savings by choosing a Microsoft virtualization solution. “With Hyper-V, we reduced our heating footprint down to 70,000 BTUs per hour, which is almost 50 percent,” says VanHuss. “We have retired almost 30 percent of our physical servers and we have plans to convert eight additional physical servers to virtual in the coming months.”

Since deploying Hyper-V, Crutchfield has performed 25 P2V conversions. Taking into consideration that an average server costs $7,000, this has saved the company approximately $175,000 in hardware costs alone.

In addition to hardware costs, the company is also enjoying licensing savings by not choosing a VMware solution. “If you just take our Hyper-V failover cluster running on Windows Server 2008 Datacenter, we are looking at significant licensing savings over the VMware option,” says VanHuss. “We migrated 10 virtual machines from our legacy VMware solution, which wouldn’t have required relicensing. But we added 22 new virtual machines, which would have cost a total of $17,600 in CALs."

“By choosing Windows Server 2008 Datacenter and Hyper-V virtualization, we are able to host unlimited guests on a single server with no additional licensing cost,” adds Johnson. 

Boosting Test and Development Productivity

Testing and development are key IT functions at Crutchfield. Using Hyper-V, development staff can more efficiently create and test a wide variety of applications and scenarios with both 32-bit and 64-bit operating systems that approximate the operation of physical servers and clients.

Crutchfield is using Hyper-V to move forward with its goal to upgrade to the latest versions of key developer collaboration and productivity software, such as Visual Studio Team System 2008 Team Foundation Server. By consolidating these systems as virtual machines running on better hardware, Crutchfield can boost developer productivity and save on hardware costs.

“The biggest benefit of virtualizing our test and development environment was the ability to move off older hardware,” says VanHuss. “We were able to bring our test and development environment into a state where performance is similar to that of our production systems. The more efficient our development staff can be at launching updates or new applications, the quicker the business will experience the benefits of their development efforts.”

Crutchfield developers are also looking forward to taking advantage of the self-service portal available in System Center Virtual Machine Manager 2008. They will be able to set up and tear down virtual machines from a template library, instead of requiring administrator intervention.

Improving IT Manageability

Since deploying Terminal Services RemoteApp on its Hyper-V failover cluster, the Enterprise Systems Group in IT is 90 percent more efficient in managing the scheduling application that used to be deployed on managers’ computers at the call center.

“Now we can make an application available to a group of 12 managers without having to touch their machines, and we have a standardized footprint across the call center so it’s easier to replace the application if there’s an issue on the client side, or if a manager needs to work at a different location,” says VanHuss. “This solution also gives managers the ability to work on their scheduling from home, so they can be more productive.”

The IT staff is also saving time by using Microsoft System Center data center solutions to manage both physical and virtual environments. “Instead of going through multiple interfaces or physical machines, we can manage our test and development and contact center virtualized environments using one set of integrated tools,” says VanHuss. “I’d say for those environments we are getting approximately 40 percent management productivity gains.”

Currently, the IT staff is using Hyper-V Manager to manage the virtual guests hosted in the failover cluster. However, when Windows Server 2008 R2 and System Center Virtual Machine Manager 2008 R2 are released, VanHuss expects even greater productivity benefits from features such as live migration and cluster shared volumes. “The new release will enable us to manage multiple virtual machines in our local area network, and when we combine that with other System Center products, we will really get the full benefits of integrated management,” says VanHuss.

And, toward the end of 2009, Crutchfield is planning to test Microsoft Application Virtualization (App-V) version 4.5. IT staff are looking forward to reducing test cycles and achieving transparent application updates without requiring reboots. 

Driving Business Agility

For Crutchfield, the most enduring benefit of its Hyper-V virtualization solution may be the way this scalable technology enables the company to make good on so many of its plans—without worrying about incurring high IT costs. Wherever the IT department hits roadblocks with its previous virtualization solution, Crutchfield now has free rein to virtualize whatever IT wants, including high-transaction systems such as the SQL Server distributors, or line-of-business applications such as the invoice system and the marketing mail server. The company’s network team is even contemplating hosting a Linux-based application in the Hyper-V environment.

“Since deploying Hyper-V, IT has shown a new level of agility and responsiveness,” concludes VanHuss. “Thanks to our Microsoft virtualization solution, we are meeting the needs of the business while minimizing costs.”     

Microsoft Virtualization
Microsoft virtualization is an end-to-end strategy that can profoundly affect nearly every aspect of the IT infrastructure management lifecycle. It can drive greater efficiencies, flexibility, and cost effectiveness throughout your organization. From accelerating application deployments; to ensuring systems, applications, and data are always available; to taking the hassle out of rebuilding and shutting down servers and desktops for testing and development; to reducing risk, slashing costs, and improving the agility of your entire environment—virtualization has the power to transform your infrastructure, from the data center to the desktop.

For more information about Microsoft virtualization solutions, go to:
www.microsoft.com/virtualization

For More Information

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For more information about Crutchfield products and services, call (434) 817-1000 or visit the Web site at:
www.crutchfield.com