Costco Uses Virtualization to Save Space,

Reduce Costs, and Increase IT Agility

"We love virtualization!
We now ave te a!ility
to set up test and
develop"ent syste"s
#uic$ly, and we can !e
as ni"!le as te
!usiness needs%&
'iz de (icele, (anager o) Server
Tecnologies*Corporate Applications, Costco
Wolesale Corporation
Costco Wholesale Corporation is a major international
wholesale distributor with revenues approaching U.S.$70 billion.
Costco began using virtualization technology in 00! and has
e"panded its investment to include Windows Server# 00$
%nterprise with &yper'() and *icroso+t# System Center (irtual
*achine *anager 00$. With these tools, Costco can control -.
spending, increase -. +le"ibility, and manage its virtualized
server assets more e++iciently.
+usiness ,eeds
Costco Wolesale Corporation, !ased in
Issa#ua, Wasington, operates "e"!er
wareouses were -.%/ "illion !usiness
and individual cardolders can purcase
!rand0na"e "ercandise at prices
su!stantially lower tan tose )ound at
traditional retail and wolesale outlets%
Since opening te )irst Costco wareouse in
.1/2, te cain as grown to acieve
annual revenues o) U%S%345 !illion, wit
.25,555 e"ployees and -21 outlets
trougout te United States, 6apan, 7orea,
Taiwan, (e8ico, Canada, and te United
7ingdo"%
Te co"ple8ity o) te Costco IT
in)rastructure as grown along wit te
!usiness% In addition to te wareouses, te
co"pany "aintains eigt do"estic and
seven international o))ices, and te
co"pany9s worldwide networ$ includes
.2,555 :; ,eoware tin client co"puters
and nearly 1,555 end0user co"puters% Te
corporate data center in Issa#ua is o"e
to .,<55 servers and a series o) AS*=55
"ain)ra"e co"puters%
+y <55>, Costco realized tat it needed to
control te proli)eration o) servers in te
data center% ?ollowing an initial invest"ent
in (icroso)t@ Virtual Server <55-, Costco
consolidated servers and ena!led its
application groups to "ore easily per)or"
testing and validation !e)ore rolling out
new so)tware solutions% AAt )irst,
virtualization was "ostly to reduce te
server )ootprint,& says 'iz de (icele,
(anager o) Server
Tecnologies*Corporate Applications at
Costco Wolesale Corporation% A+ut over
ti"e it as !eco"e "uc "ore a!out
utilizing our assets as )ully as we can%&
Costco as "ade signi)icant e))orts to
develop a virtualization strategy and is
interested in continuing to e8plore oter
options tat will e8pand its invest"ent%
Solution
Costco as a signi)icant invest"ent in
(icroso)t productsB1- percent o) its data
center co"puters run versions o) te
Windows@ operating syste"% So wen te
co"pany eard a!out te Windows
Server@ <55/ operating syste" wit
:yper0VC virtualization tecnology and
(icroso)t Syste" Center Virtual (acine
(anager <55/, it enrolled in te (icroso)t
Customer: Costco Wolesale
Corporation
Web Site: www%costco%co"
Customer Size: .25,555
Country or Region: United States
Industry: RetailBWolesale and
distri!ution
Customer Profile
Costco Wolesale Corporation is an
international wolesale distri!utor !ased
in Issa#ua, Wasington% Costco as
-21 "e"!er wareouses and .25,555
e"ployees%
Software and Services
(icroso)t Server ;roduct ;ort)oliio
Windows Server <55/ Dnterprise
Windows Server <55/ :yper0V
(icroso)t Syste" Center Virtual (acine
(anager <55/
Services
(icroso)t Services
Hardware
:; ;ro'iant E'2/5 F- servers
Guad0Core Intel Heon processors
?or "ore in)or"ation a!out oter
(icroso)t custo"er successes, please
visitI
www%"icroso)t%co"*casestudies

Virtualization Rapid Eeploy"ent ;rogra"
JRE;K as te ne8t step in its virtualization
plan%
+e)ore pysical0to0virtual J;<VK conversions
!egan, Costco IT sta)) used te (icroso)t
Assess"ent and ;lanning J(A;K Tool$it to
evaluate server loads% AIt9s a good tool to
ave to elp gauge wat you can virtualize,&
says 6ason Fri))it, Analyst at Costco
Wolesale Corporation% Using te tool$it,
sta)) "e"!ers discovered tat, in "any
cases, servers were running at only -
percent utilization, "a$ing te" good
candidates )or consolidation%
Costco now runs :yper0V on )ive servers in
te data center on :; ;ro'iant E'2/5 F-
servers wit Guad0Core Intel Heon
processors% Te server cluster as a core
in)rastructure tat "i"ics te production
Costco environ"ent, and te )ive pysical
servers ost -5L>5 virtual "acines tat
run do"ain controllers, (icroso)t D8cange
Server, and in)rastructure applications%
Wit e8pert elp )ro" (icroso)t Services, IT
sta)) "e"!ers integrated :yper0V into teir
internal application develop"ent and #uality
assurance JGAK process to veri)y relia!ility
and sta!ility !e)ore rolling out new syste"s
to internal custo"ers and "e"!er
wareouses% IT sta)) will also use :yper0V
to do anti0virus testing on application
servers witout co"pro"ising te security
or sta!ility o) te pysical syste"s !y
installing so)tware or agents on production
"acines%
Te ease o) doing ;<V conversions wit
Syste" Center Virtual (acine (anager
<55/ resulted in a s"oot evaluation
process% AIt9s !een great,& says Fri))it%
AMnce we were a!le to attac SA, storage
and cluster te :yper0V ost servers, it ran
very well%&
+ene)its
Wit :yper0V and Syste" Center Virtual
(acine (anager <55/, Costco can
consolidate servers, reduce costs,
increase IT )le8i!ility, and "ore easily
"anage virtualized syste"s%
Decreased Server Footrint
+y virtualizing e8isting servers instead o)
purcasing new pysical "acines,
Costco li"ited te proli)eration o) servers
in its data center% Te IT sta)) ai"s to
acieve <5 percent virtualization !y te
end o) August <55/ and =5 to =- percent
virtualization !y te end o) August <551%
Reduced I! Costs
Costco reduced spending on new pysical
servers and e8pects to cut data center
energy e8penses, wic cost te co"pany
34-,555 a "ont% :yper0V virtualization
tecnology is also "uc "ore a))orda!le
tan oter solutions% ATe solution allows
us to deepen our partnersip wit
(icroso)t and leverage our e8isting
tecnology invest"ent ,& says Saron
Wagner, Eirector o) Client*Server
Tecnologies at Costco Wolesale
Corporation%
Tese savings elp Costco re"ain
co"petitive in its industry% ATe !iggest
way we9re set apart )ro" our co"petitors
is tat we spend so "uc less on IT tan
tey do,& says de (icele% AVirtualization
ena!les us to do tis%&
Increased I! Fle"ibility and
Resonsiveness
Costco uses virtualization to strea"line
testing and develop"ent )or corporate
applications% Tis redirects valua!le IT
ti"e to !etter serve internal custo"ers,
and te sta)) appreciates te increased
)le8i!ility% AWe love virtualization!& says de
(icele% AWe now ave te a!ility to set
up test and develop"ent syste"s #uic$ly,
and we can !e as ni"!le as te !usiness
needs%&
#asier $irtualization %anagement
Costco runs its :yper0VL!ased server
cluster at a ratio o) .5 virtual "acines per
pysical ost and opes to increase tat
nu"!er to .-L<5 virtual "acines% Tis
ig0server density is a )eature te
co"pany appreciates% AWe can
acco""odate "ore guests per ost,& says
de (icele% ATat gives us less overead
and is easier to "anage%&
Tis case study is )or in)or"ational purposes only% (ICRMSM?T (A7DS ,M WARRA,TIDS, DH;RDSS MR I(;'IDE, I, T:IS SU((ARN%
Eocu"ent pu!lised Septe"!er <55/