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GSF 2012 Session 2-2 Brian Clay - Driving Down the Cost of Modernization and Consolidation

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IT, Cloud Computing Evolution, Business Frameworks,

IT, Cloud Computing Evolution, Business Frameworks,

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  • 1. Brian P ClaySenior Business ArchitectData Center Solutions Group© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  • 2. • Why are we Here…An Evolutionary Pattern• Why are we Evolving…The Need for Change• A Framework for Transformation• A Call to Action• Question & Answer© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • 3. Bespoke Consolidation Utility Evolutionary Pattern Factory Local Electrical Electricity Steam Engines Power Plants Grid Craft Platform Flexible Manufacturing Production Production Production Enterprise Cloud IT IT Data Centers Service Providers Service Grid© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  • 4. Realization of Moore’s Law Exponential gains in the capabilities of data center infrastructure Deflationary cost (per unit) each refresh cycle General Acceptance of New Frameworks Infrastructure virtualization Application-driven service oriented architectures Outside Influences Openness of the IT economy has accelerated the need for ITaaS Global macro-economic constraints cultivate uncertainty© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
  • 5. Measured Rapid Service ElasticityEssentialCharacteristics On-Demand Broad Resource Network Pooling Self Service Access Infrastructur Platform as Software asService Models e as a a Service a Service Service (Iaas) (Paas) (Saas)Deployment Models Private Public Hybrid Commun itySource: NIST Working Definition; http://www.csrc.nist.gov/groups/SNS/cloud-computing/index.html© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  • 6. The consumption models for ITaaS willrequire a hybrid approach to servicedelivery. Inter – Cloud HybridIn addition to Private (on-premise) and CloudPublic (off-premise, service provider) Publicclouds, Inter-cloud will will bring Cloudfederation amongst clouds Private Automati Cloud on Present Consolidat ion & Virtualizati on
  • 7. Security, Compliance, and Regulatory Risks Many risks are perceived as opposed to real; technology is not the barrier Cloud computing can help mitigate existing information security issues (ex. VDI & data access) Disruptive to Operational & Organizational Models Properly aligned organizational structure & process are key to cloud computing Interoperability with existing processes and tools can be a significant challenge Service Management Framework Critical dependencies on service architecture, service levels, and service dependencies New economic models are required to capitalize on the commoditization of IT© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
  • 8. Infrastructure Spend 50%-75% Source: Federal Gov’t IT Spend for 2010 ~$78B© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • 9. Utilization Target (75%) 1Assumes 50% infrastructure spend and corresponding 50% increase in utilization© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
  • 10. 30% 70% Strategy & Infrastructure Operations Innovation “Keeping the Lights On”Source: Gartner – IT Infrastructure and the Shift to “Real-Time”© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
  • 11. Quality The ‘guarantee’ of resource performance & availability Efficiency The ‘capability’ to respond to IT service requests/events Risk Adherence to internal and/or external policies/regulations Cost The resultant impact of quality, efficiency and risk choices© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
  • 12. ① Service Framework Define the capabilities of service offerings & service tiers② Technical Framework Define target state architectural & engineering options③ Business Framework Demonstrate the value of transformation to Agency stakeholders© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
  • 13. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
  • 14. More than a Number SLAs are a representation of the capabilities of the underlying architecture. Perpetuating the Inefficiencies Today’s method of expressing SLAs is a culprit in driving the culture of inefficiency Aligned with the Mission, Not the Application SLAs should be assigned based on the importance of the process/mission; applications will be aligned with the process component (essential vs non-essential) they support. Provides Cross-Functional Impact Agnostic, macro requirements which can be leveraged across IT, risk management, and procurement© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
  • 15. Metric Tier-3/4 Tier-2 Tier-1 Core Service Level Agreement Best Effort 99.90% 99.99% 99.999% N+2 N+1 2 * (N+1) Required Redundancy Active- Cold Standby Active-Active Passive Service Recovery Objective Amount of Data Loss (RPO in < 2 Weeks <8 <1 Zero hrs) Service Downtime (RTO in hrs) Best Effort <8 <1 Zero Guaranteed Service Best Effort = > 50% = > 75% 100% Performance Lost Time per Year Business Hours – 24 x 7 8.76 Hours 52.56 Minutes 5.25 Minutes Business Hours – 12 x 6 3.75 Hours 22.45 Minutes 2.25 Minutes Business Hours – 8 x 5 2.08 Hours 12.47 Minutes 1.25 Minutes© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
  • 16. Metric Tier-3/4 Tier-2 Tier-1 Core (Bronze) (Silver) (Gold) (Platinum)Quality Sectional SectionalAvailability/Fault Tolerance Cost Effective Local Failure (Non- (Catastrophic) Catastrophic) = > 25%Committed Performance Best Effort = > 50% 100% 100%EfficiencyEvent Management Manual Manual Semi- Automated AutomatedInstrumentation Low Medium High HighestRiskAssurance No No Yes YesLifecycle Management None N-2 N-1 N or N-1© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
  • 17. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
  • 18. Agile Technology Requires Agile Frameworks Today’s ‘monolithic’ or ‘platform’ approach will be a bottleneck to benefit realization A New Taxonomy for Technology A ‘utility’ model requires an evolution in how we measure and value technology Focus on the Micro, Not Just the Macro The measurement and valuation of technology should occur at an ‘atomic’ level; additionally the measurement and valuation should integrate with the economic framework.© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
  • 19. ERP Service Offerings (Solutions) Web, App, Databse N-Tier, Data Warehouse Configurations & Patterns (Architectures) CPU, RAM, I/O, Tier-GB, IOPS, Txns per Second, Contexts Units of Inventory Compute, Network, SAN, Storage L4-L7, Security, WAN, Human Capital Physical & Logical Assets© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
  • 20. 3,505 Units of CPU Compute Compute 5,995 Units of RAM 1,250 Units of Low Bandwidth 512 Units of High Fabric Fabric Bandwidth 100,000 Units of SLB Fabric Services Fabric Services 10,000 Units of SSL 1,000 Units of Tier-1 Storage Storage 7,500 Units of Tier-2© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
  • 21. Web Middleware Database CPU: 2 & RAM: 4 CPU: 4 & RAM: 8 CPU: 16 & RAM: 128 Low Bandwidth: 1 Low Bandwidth: 2 Low Bandwidth: 4 SLB: 2 & SSL: 1 SLB: 2 & SSL: 0 SLB: 0 & SSL: 0 Tier-2 Storage: 2.5 Tier-2 Storage: 5.0 Tier-1 Storage: 4.5 Configurations Aggregate Inventory CPU: 56 & RAM: 304 Web x 4 Low Bandwidth: 20 Middleware x 4 SLB: 16 & SSL: 4 Platinum n-Tier Database x2 Tier-1 Storage: 30 Tier-1 Storage: 9 Patterns© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
  • 22. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
  • 23. A Lack of Understanding The fundamental/foundational issues are not often clear to the respective Agencies Perpetuating the Inefficiencies The Agency is typically the culprit in driving the culture of inefficiency Changing the Discussion The key is articulating the issues & inefficiencies in a taxonomy relevant to the Agency Advocating Investment Demonstrate to the Agency why an investment in IT is advantageous over competing alternatives© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
  • 24. Capital Carrying Service Efficiency Cost Efficiency Fiscal Viability Workload Efficiency Environment Unit Cost al & Facilities Scale Operational Efficiency Business Cost-to- Time-to- Agility Innovate Value© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
  • 25. Annual Unplanned Downtime Improveme Before After nt Bronze 187.20 Hrs 74.88 Hrs 60% Silver 37.44 Hrs 3.74 Hrs 90% Gold 18.72 Hrs 22.46 Min 98% Platinu 22.46 Min 11.23 Min 50% m© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
  • 26. Metric Baseline 12 Months 24 MonthsCapital Efficiency 0.84 1.00 1.10Carrying Cost 40% 25% 15%Cost per Transaction | SAAS $1.50 $1.05 $0.50Cost Avoidance (NPV) N/A $7.5M $18.9MTime-to-Market 240 Hours 40 Hours 8 Hours© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
  • 27. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
  • 28. Embrace Commoditization Commoditization removes some of the perceived barriers to radical transformation Change Takes Time…It’s Not a Big Bang Small increments of change can realize big benefits, which brings momentum to the transformation Align SLAs to the Process, Not the Application Removes the emotion from everyone wanting the highest SLA Don’t Live and Die by the TCO Focusing only on TCO over-emphasizes the cost component, as opposed to the value of transformation Don’t Lose Sight of the Mission Engage in a dialog that’s relevant to the Agency stakeholders.© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28
  • 29. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
  • 30. Thank you.© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 30