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TRANSFORMING YOUR
BUSINESS THROUGH
CLOUD COMPUTING
An AMD Case Study
Mike Wolfe, Senior Vice President and CIO
August, 2012
MY ROLES AT AMD


  Build and Operate a Global Structure

 Innovate: Transform IT and
 Business Processes


 Be voice of the Customer

 Protect Intellectual Property
 and Business Continuity



Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 2
OUR INDUSTRY IS UNDERGOING RAPID CHANGE




Consumerization

Cloud

Convergence

Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 3
WE ARE ENTERING ANOTHER INFLECTION POINT IN THE MARKET…


                                                                   Traditional players are      New entrants and
                                                                         struggling          ecosystems are winning

     Units Sold Annually                                        Market Cap ($B)              Market Cap ($B)
1T




1B




1M




1K



               Age of                                                  From laptops and          …to ubiquitous
             Convergence                                                smartphones…                devices


Source: EtForecast, 2011; USGS Report 2006, 2008, Steinmueller, 1995



 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
  4
WE ARE WELL ON OUR WAY TO UBIQUITOUS COMPUTING …
AND MORE COMPLEX IT MANAGEMENT AND SECURITY REQUIREMENTS




                                                                                                                         2.9 devices per
                                                                                                                             person




       Globally, 88% of executives report employees are using their
        personal computing technologies for business purposes

  Sources: http://www.turtleweb.com/turtleweb70.nsf/pages/marketinfo
  Avande® January 2012; http://www.avanade.com/blog/index.php/2012/01/dispelling-common-myths-of-consumerization-of-it




Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 5
SECURITY IS ESSENTIAL FOR TWO OF THE
FASTEST GROWING SEGMENTS



      Security in Mobile Platforms
          – Protecting user data
          – Securing corporate data
          – Providing support for identity security



      Security in Cloud Computing
          – Providing a secure platform
          – Enabling trusted applications
          – Meeting compliance requirements with govt. regulations and
            industry security practices (HIPPA,SOX,PCIDSS,FISMA)




 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
  6
WHY SHOULD YOU CARE ABOUT PRIVATE CLOUD?
               By 2014 >50% of data center workloads are predicted
                          to be processed in the Cloud!




              Source: Independent Analyst Shipment Data, Cisco Analysis

      http://lcolumbus.files.wordpress.com/2012/01/cisco-workload-distribution.jpg

Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 7
WHAT ARE THE MAIN DRIVERS OF CLOUD COMPUTING?




                                                                                 “If speedy IT services are
                                                                             important, businesses should be
                                                                                   shifting from traditional
                                                                              computing into virtualization in
                                                                               order to build a private cloud”
                                                                              Ellen Messner, Network World


 http://www.zdnet.com/blog/btl/the-future-of-cloud-computing-9-trends-for-2012/80511
 http://www.networkworld.com/news/2011/061511-gartner-private-clouds.html


 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
  8
AMD R&D IN THE CLOUD: OBJECTIVES FOR
“COMPUTE ANYWHERE”


  Build a private cloud
   framework for AMD R&D
   projects
  Centralize our data centers
  Provide our users with
   appropriate connectivity
   tools



    Be more agile and break free of the limitations
         of site-based servers and storage
Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 9
AMD’S CLOUD RESULTS




               Performance                                                                                           Economic Benefits
                                                                                              ROI
       •Supports 3,000                                                                                               •Standardization across
                                                                           •123,000 AMD
       engineers                                                                                                     platforms
                                                                           Opteron™ cores
       •40 million tasks                                                                                             •Consistent platforms
                                                                           •Approaching 90
       executed per month                                                                                            results in $6M cost
                                                                           percent utilization
       •Agility; testing time on                                                                                     savings
       AMD C series APU                                                                                              •Lower data storage
       products went from 2                                                                                          costs
       months to 5 days



Source: AMD Internal estimates and AMD case study http://sites.amd.com/us/Documents/Cloud_Computing_case_study.pdf



Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
10
AMD VIRTUALIZATION CLUSTERS




 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 11
THE COMPUTING PLATFORM IS THE FOUNDATION THAT ENABLES
THE VALUE AND PROMISE OF IT



                                                                      Performance: Meet the changing
                                                                      needs of the most demanding
                                                                      computing environments.

                                                                      Dependability: Achieve predictable
                                                                      and consistent throughput to deliver
                                                                      reliable system access and
                                                                      performance

                                                                      Value: Increase performance while
                                                                      maximizing efficiency and Total Cost
                                                                      of Ownership

                                                                      Manageability: Administer multiple
                                                                      platforms across diverse
                                                                      departments, sites, and geographies

                                                                      Security: The Foundation that
 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 12
AMD SECURE COMPUTING PLATFORM:
SILICON, SYSTEM, AND SOFTWARE LAYER SECURITY



Virtualization of processor and I/O

Cryptography, including AES instructions,
bcrypt, and secure hash algorithm support


Engagements with IHVs, ISVs, and
standards organizations


Accelerators & Co-Processors

 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 13
VIRTUALIZATION TRENDS


      Virtualization hitting 50% penetration. Competition and new, small
      customers driving down prices. The market is growing, but not like it
      used to, and vendor behavior will change significantly because of it.
      And don’t forget the impact on server vendors – the next few years
      will prove to be a challenge until virtualization slows down. Tom
      Bittman, Gartner1



                                                            Virtualization and the server consolidation that it
                                                            delivers will be the top priority for chief
                                                            information officers in 2012, according to a survey
                                                            by the research firm IDC, David McNally, IDC2




1. http://blogs.gartner.com/thomas_bittman/2012/03/21/top-five-server-virtualization-trends-2012/
2. http://www.informationweek.com/storage/virtualization/virtualization-tops-cio-priorities-in-20/232400150


 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
 14
WHAT IS AMD DOING WITH VIRTUALIZATION?


   Virtual Desktop Infrastructure                                           Virtualized Server Infrastructure
  Moving critical IP from desktops to
   secured servers in data center                                            Consolidating infrastructure to
                                                                              achieve higher utilization rates
  Accelerating deployment of
   desktop resources                                                         Lowering power and cooling costs

  Lowering total cost of desktop                                            Dell and HP servers running AMD
   ownership                                                                  Opteron™ 6000 Series and 4000
                                                                              Series Processors
  Implementing Wyse thin clients
   running AMD APU technology




  http://sites.amd.com/us/Documents/Cloud_Computing_case_study.pdf


Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
15
WHAT IS AMD DOING WITH VIRTUALIZATION?

 Over 1,600 virtual desktops deployed,
  fairly evenly split between Windows
  and non-Windows

 Over 75% of servers are virtualized,
  averaging approximately 10 virtual
  servers per physical server (back
  office)

 Investigating VM Snapshots to
  improve simulation throughput
  (engineering compute)

 Ramping up workstations for SoC
  design – especially for offshore
  development centers




  Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
  16
RICH BRUNNER
                     CHIEF PLATFORM
                          ARCHITECT




Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
17
Q&A




Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
18
All statements in this report attributable to Gartner represent AMD interpretation of data, research opinion or
  viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed
  by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this
  [presentation/report]). The opinions expressed in Gartner publications are not representations of fact, and are
  subject to change without notice.




Trademark Attribution

AMD, the AMD Arrow logo, AMD Opteron and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the
United States and/or other jurisdictions. Other names used in this presentation are for identification purposes only and may
be trademarks of their respective owners.

©2012 Advanced Micro Devices, Inc. All rights reserved.




  Transforming Your Business through Cloud Computing | August, 2012 | DRAFT
  19

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Transform Your Business with Cloud Computing

  • 1. TRANSFORMING YOUR BUSINESS THROUGH CLOUD COMPUTING An AMD Case Study Mike Wolfe, Senior Vice President and CIO August, 2012
  • 2. MY ROLES AT AMD Build and Operate a Global Structure Innovate: Transform IT and Business Processes Be voice of the Customer Protect Intellectual Property and Business Continuity Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 2
  • 3. OUR INDUSTRY IS UNDERGOING RAPID CHANGE Consumerization Cloud Convergence Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 3
  • 4. WE ARE ENTERING ANOTHER INFLECTION POINT IN THE MARKET… Traditional players are New entrants and struggling ecosystems are winning Units Sold Annually Market Cap ($B) Market Cap ($B) 1T 1B 1M 1K Age of From laptops and …to ubiquitous Convergence smartphones… devices Source: EtForecast, 2011; USGS Report 2006, 2008, Steinmueller, 1995 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 4
  • 5. WE ARE WELL ON OUR WAY TO UBIQUITOUS COMPUTING … AND MORE COMPLEX IT MANAGEMENT AND SECURITY REQUIREMENTS 2.9 devices per person Globally, 88% of executives report employees are using their personal computing technologies for business purposes Sources: http://www.turtleweb.com/turtleweb70.nsf/pages/marketinfo Avande® January 2012; http://www.avanade.com/blog/index.php/2012/01/dispelling-common-myths-of-consumerization-of-it Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 5
  • 6. SECURITY IS ESSENTIAL FOR TWO OF THE FASTEST GROWING SEGMENTS  Security in Mobile Platforms – Protecting user data – Securing corporate data – Providing support for identity security  Security in Cloud Computing – Providing a secure platform – Enabling trusted applications – Meeting compliance requirements with govt. regulations and industry security practices (HIPPA,SOX,PCIDSS,FISMA) Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 6
  • 7. WHY SHOULD YOU CARE ABOUT PRIVATE CLOUD? By 2014 >50% of data center workloads are predicted to be processed in the Cloud! Source: Independent Analyst Shipment Data, Cisco Analysis http://lcolumbus.files.wordpress.com/2012/01/cisco-workload-distribution.jpg Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 7
  • 8. WHAT ARE THE MAIN DRIVERS OF CLOUD COMPUTING? “If speedy IT services are important, businesses should be shifting from traditional computing into virtualization in order to build a private cloud” Ellen Messner, Network World http://www.zdnet.com/blog/btl/the-future-of-cloud-computing-9-trends-for-2012/80511 http://www.networkworld.com/news/2011/061511-gartner-private-clouds.html Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 8
  • 9. AMD R&D IN THE CLOUD: OBJECTIVES FOR “COMPUTE ANYWHERE”  Build a private cloud framework for AMD R&D projects  Centralize our data centers  Provide our users with appropriate connectivity tools Be more agile and break free of the limitations of site-based servers and storage Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 9
  • 10. AMD’S CLOUD RESULTS Performance Economic Benefits ROI •Supports 3,000 •Standardization across •123,000 AMD engineers platforms Opteron™ cores •40 million tasks •Consistent platforms •Approaching 90 executed per month results in $6M cost percent utilization •Agility; testing time on savings AMD C series APU •Lower data storage products went from 2 costs months to 5 days Source: AMD Internal estimates and AMD case study http://sites.amd.com/us/Documents/Cloud_Computing_case_study.pdf Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 10
  • 11. AMD VIRTUALIZATION CLUSTERS Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 11
  • 12. THE COMPUTING PLATFORM IS THE FOUNDATION THAT ENABLES THE VALUE AND PROMISE OF IT Performance: Meet the changing needs of the most demanding computing environments. Dependability: Achieve predictable and consistent throughput to deliver reliable system access and performance Value: Increase performance while maximizing efficiency and Total Cost of Ownership Manageability: Administer multiple platforms across diverse departments, sites, and geographies Security: The Foundation that Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 12
  • 13. AMD SECURE COMPUTING PLATFORM: SILICON, SYSTEM, AND SOFTWARE LAYER SECURITY Virtualization of processor and I/O Cryptography, including AES instructions, bcrypt, and secure hash algorithm support Engagements with IHVs, ISVs, and standards organizations Accelerators & Co-Processors Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 13
  • 14. VIRTUALIZATION TRENDS Virtualization hitting 50% penetration. Competition and new, small customers driving down prices. The market is growing, but not like it used to, and vendor behavior will change significantly because of it. And don’t forget the impact on server vendors – the next few years will prove to be a challenge until virtualization slows down. Tom Bittman, Gartner1 Virtualization and the server consolidation that it delivers will be the top priority for chief information officers in 2012, according to a survey by the research firm IDC, David McNally, IDC2 1. http://blogs.gartner.com/thomas_bittman/2012/03/21/top-five-server-virtualization-trends-2012/ 2. http://www.informationweek.com/storage/virtualization/virtualization-tops-cio-priorities-in-20/232400150 Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 14
  • 15. WHAT IS AMD DOING WITH VIRTUALIZATION? Virtual Desktop Infrastructure Virtualized Server Infrastructure  Moving critical IP from desktops to secured servers in data center  Consolidating infrastructure to achieve higher utilization rates  Accelerating deployment of desktop resources  Lowering power and cooling costs  Lowering total cost of desktop  Dell and HP servers running AMD ownership Opteron™ 6000 Series and 4000 Series Processors  Implementing Wyse thin clients running AMD APU technology http://sites.amd.com/us/Documents/Cloud_Computing_case_study.pdf Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 15
  • 16. WHAT IS AMD DOING WITH VIRTUALIZATION?  Over 1,600 virtual desktops deployed, fairly evenly split between Windows and non-Windows  Over 75% of servers are virtualized, averaging approximately 10 virtual servers per physical server (back office)  Investigating VM Snapshots to improve simulation throughput (engineering compute)  Ramping up workstations for SoC design – especially for offshore development centers Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 16
  • 17. RICH BRUNNER CHIEF PLATFORM ARCHITECT Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 17
  • 18. Q&A Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 18
  • 19. All statements in this report attributable to Gartner represent AMD interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this [presentation/report]). The opinions expressed in Gartner publications are not representations of fact, and are subject to change without notice. Trademark Attribution AMD, the AMD Arrow logo, AMD Opteron and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and/or other jurisdictions. Other names used in this presentation are for identification purposes only and may be trademarks of their respective owners. ©2012 Advanced Micro Devices, Inc. All rights reserved. Transforming Your Business through Cloud Computing | August, 2012 | DRAFT 19

Editor's Notes

  1. How does AMD view the Industry? We see it as undergoing rapid change, right now… Tablets = new market, new usages Explosive growth of data Ecosystems drive increased competitiveness Disruptive Cloud enabling new business models Windows 8 opens PC platform to ARM processors
  2. How does AMD view the Industry? We see it as undergoing rapid change, right now… Tablets = new market, new usages Explosive growth of data Ecosystems drive increased competitiveness Disruptive Cloud enabling new business models Windows 8 opens PC platform to ARM processors
  3. We are getting very close to a new era of ubiquitous access to computing in the world. While there are still large gaps in underdeveloped portions of the world that need to be addressed, the trend lines are clearly headed in the right direction as computers become increasingly ubiquitous. Today, emerging markets are catching up, and over the next several years we anticipate the so called digital divide will be all but erased for most of the world. And we also expect people in the developing world will continue to increase the number of computing devices that they use, at home, at work, and at play. All of these devices make access to computing easier than every before. But they also present a challenge in terms of management and security, particularly for large enterprises and other organizations. Should enterprises allow employees to connect their own devices to their networks? Certain efficiencies can be achieved, but this practice also introduces vulnerabilities. But many employees will still use their personal devices for business communications even if companies refuse to allow them to connect to the corporate network. As a CIO, building a efficient and secure BYOD – Bring Your Own Device – policy is a tremendous challenge, and one that will only increase as the number of computing devices per person continues to increase.
  4. Security in Mobile Platforms Protecting user data across multiple devices and platforms Securing corporate data in IT Consumerization scenarios Accelerating industry standards encryption/decryption algorithms Providing support for identity security and management features Security in Cloud Computing Providing a secure platform to protect data in a multi-tenant environment Enabling trusted applications for safe and secure ecommerce and other services Enhancing performance while optimizing security, virtualization, and manageability Meeting compliance requirements with govt. regulations and industry security practices (HIPPA,SOX,PCIDSS,FISMA)
  5. The 2012 Future of Cloud Computing Survey results (released on June 20, 2012 at the cloud leadership dinner) reveal several important changes in respondents’ perceptions and plans regarding cloud implementation. http://northbridge.com/2012-cloud-computing-survey 2012 Survey Results by North Bridge - North Bridge invests in exceptional people whose ideas have the potential to disrupt the way we live and work. Our Seed, Venture and Growth Equity strategies help transform those ideas into companies and those companies into market leaders.
  6. Cloud is the framework at AMD that we have chosen to support all of our R&D projects Back in 2009, AMD began an initiative called “Compute Anywhere” Our objectives were to: Centralize our datacenters Provide our users with appropriate connectivity tools Become more agile and break free of the limitations of the servers and storage from AMD’s various work sites
  7. AMD runs a cloud today supporting 3000 engineers worldwide with 40 million tasks a month executed It’s also an agile cloud. In one instance last year when we were working on our “Bobcat” core design, the team needed to speed up the design process based on the changing market needs. AMD IT was able to dynamically allocate capacity and designate 42,000 cores. As a result of this, the team was able to achieve 2 months of testing in five days Scalability of our cloud really has to be attributed to the underlying technology. Opteron brings some really unique advantages to IT. I mentioned earlier that a good target utilization rate through the use of virtualization was about 60 percent To-date, AMD has been able to achieve an astounding 90 percent utilization rate – in terms of available servers and cores This is across 124,00 cores at work and counting Our strategic approach to the AMD Cloud has included a strong focus on standardization across platforms resulting in reduced investment costs for equipment upgrades, and basing the cloud entirely on AMD technology.  Lower data storage costs; because data is now available everywhere, redundant local copies of data sets are no longer required. AMD is able to leverage available engineers, regardless of location, to engage on any project as needed, using consolidated data sets. Consolidation also allows AMD to leverage existing, high-end design software that once sat idle in distributed sites. Specifically, our servers based on AMD Opteron ™ chips  offer a unique capability to swap out processors and achieve in-place upgrades, allowing us  to double our capacity without buying a single new server. Over $6 million in savings were realized with just an in-place upgrade from dual to quad-core chips, demonstrating a direct ROI that comes with the right IT investment. As you can tell, we get maximum use of our cloud but there are always times when servers will be idle; it’s a given any more with Cloud Computing. This is one of the reasons I’m very excited about the new AMD Opteron processor as it will significantly lower the idle power over what we have today as well as adding more server cores into our Cloud
  8. 09/12/12 19:43 All of us have witnessed the amazing productivity gains IT delivers. Greater efficiency, improved quality and quantity of information and analysis, enhanced communications, ubiquitous access - virtually every major industry in the world has been transformed by IT, from financial services, to health care, manufacturing, agriculture – the list goes on. AMD’s technology is a fundamental component in the computing platform. Our products help define and drive the performance, dependability, security, manageability, and ultimately the value, that our customers and end-users derive from IT. Performance: performance is essential, and it needs to be matched to the intended workloads. AMD-powered clouds lead the industry in compute power per processor, providing superior throughput, performance, and scalability. Dependability: This is obvious. Users want predictable and consistent throughput to deliver reliable services. Manageability: AMD’s open standards approach to manageability features enables interoperability, as well as the ability to manage across multiple platforms, locations, and geographies while maintain control over costs, efficiency, and performance. Value: Going beyond a good return on investment by providing increased performance and with Total Cost of Ownership (TCO), which includes acquisition cost, but also cost to own, operate, maintain, upgrade, and ultimately End-of-Life (EOL). Security: Secure computing begins at the foundation of computing – the processor. AMD technology includes strong security features that help protect system integrity and sensitive data. AMD technology also helps to optimize the performance of security features and applications at the system level and beyond. As in an system, the whole is only as good as it’s weakest link, and security is the key to protecting the weakest links in a system.
  9. AMD’s secure computing platform is designed to address the essential aspects of the computing eco-system, from silicon, to system, to software (OS, applications, networking, etc.). Virtualization is key, particularly in terms of creating a silicon-based firewall between attackers and physical storage. Also protecting I/O operations by protecting memory and enabling secure access of peripheral devices. AMD’s support for cryptography continues to increase. Our products support the AES instruction set and allows fast and secure date encryption and decryption. We also support Bcypts and the Secure Hash Algorithm. Partnerships with IHV, ISV, and Standards bodies is another essential element to ensure that we are incorporating the right security features into our products, as well as optimizing or enhancing security features up the stack. We are also investing considerable time and effort in working with standards bodies and governments around the world to make sure we are keeping up with the latest types of attacks and vulnerabilities, as well as helping to develop secure solutions that address these vulnerabilities. (Secure BIOS is one example). Accelerators and Co-Processors. We’ll have more to say about this public tomorrow. Suffice it to say that our security strategy includes on-board security features like the ones I have described, as well as external accelerators and co-processors that can enhance security features and performance.
  10. Virtualization is considered the on ramp to private cloud Gartner analysts emphasized that building a private cloud is more than just adding virtual machines to physical servers, which is already happening with dizzying speed in the enterprise. Gartner estimates about 45% of x86-based servers carry virtual-machine-based workloads today, with that number expected to jump to 58% next year and 77% by 2015. http://www.informationweek.com/news/storage/virtualization/232400150 http://www.gartner.com/id=2063415 http://blogs.gartner.com/thomas_bittman/2012/03/21/top-five-server-virtualization-trends-2012/