The New Generation of IT Optimization and Consolidation Platforms

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As presented by Tim Davis at Oracle Technology Network Architect Day in Toronto, April 21, 2011.

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The New Generation of IT Optimization and Consolidation Platforms

  1. 1. Oracle EnterpriseOracle Enterprise Architecture Architecture <Insert Picture Here> The New Generation of IT Optimization and Consolidation Platforms: Results-Driven Enterprise Architecture Timothy Davis Director, Oracle Enterprise Architecture Oracle Corporation
  2. 2. Agenda• Results-Driven Enterprise Architecture• EA Case Studies in IT Optimization – Portfolio Rationalization – Data Center Consolidation – Shared Services / Cloud•Q&A
  3. 3. Oracle and Enterprise ArchitectureResults-Driven EA, “A Practical Approach”• Intrinsic Business Alignment – Deliver a financial and operational business case – Develop IT roadmap to match business expectations – Design-in governance and management visibility• Value Add to IT – Shares proven EA artifacts and EA services – Focused on holistic implementation, not just products
  4. 4. Oracle Enterprise ArchitectureFramework & Process Pull Out Sample Artifacts Oracle Architecture Development Framework Oracle Enterprise Architecture Framework
  5. 5. Oracle’s Approach to Enterprise Architecture Building a Sustainable ArchitectureArchitecture • EA must be driven by business strategy and objectives • Business leaders own the EA Vision • Establish enduring architecture principles • Assess capabilities and architecture maturityCurrent State • Focus on capability gaps and the future stateCapabilities • Iterate; define just enough models, just in time • Be practical and resourceful Future State • Reuse best practices and reference models Architecture • Apply architecture principles; standardize and simplify • EA is a journey; segment, iterate and collaborate Strategic • Focus on speed-of-delivery and maximizing business value Roadmap • Manage risk Enterprise • Steer efforts via practical, implementable guidanceArchitecture • Monitor & measure lifecycle performance/business resultsGovernance • Implement continuous process improvements Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only. 5
  6. 6. Oracle Global Transformation Rapid Acquisitions for a Best-in-Class Portfolio (pending) Middleware Platform Business Intelligence Identity & Access Performance Enterprise Content and Management Management Management Management Data Integration (pending) Operating Systems Systems Management Virtual MachinesCorporation –over 70 acquisitions since 2004 … and counting Proprietary and Confidential 6
  7. 7. Oracle’s own Transformation Globalized Operational Excellence Key Business Drivers Better Information, Improve Lower Costs Increase Speed Governance Customer Service• Fewer data centers • Global information • Streamline change • Improved quality visibility management and service• Self service processes • Global consistency • Fast integration of • One customer of process, policy new acquisitions experience• Labor & transaction & data cost efficiencies • Strong internal• Shared service controls centers • Easier compliance• Off-shoring 7
  8. 8. Oracle IT Consolidation EA Roadmap “AS - IS” State “TO - BE” State 40 Data Centers 1 Global IT & Governance Model Business 2 Data Centers + 1600 StaffArchitecture 2300+ Staff Few standard business Standardized core business processes processes Data 63 Financial databases 1 Financial single global instanceArchitecture 60 IT Support databases 1 IT Support single global instance 40 Education registration 1 Education registration Technical: systems systemApplication & Services 1 IT Support application 27 IT Support applicationsArchitecture <100 applications – standardized >1000 applications on E-Business Suite Technical: 97 Email servers on 1 cluster of 2 Email serversInfrastructure 120 databases and 4 databases Architecture 501 Education servers 296 Education servers 32 IT Support servers, 600 2 IT Support servers, 30 test test servers servers
  9. 9. Oracle’s Strategic Roadmap 1998 1998 - 2003 2006 - 2008 2008 - 2011 Current State Operational BI for All Excellence Global CRM Business Bus/IT Strategy Provide LOB and IT Simplification, Unify customer-facing Implement Global BI. Move Country autonomy. Standardization & processes and customer from BI tools to pre- Architecture packaged BI solutions for Allow for customizations Consolidation data by implementing sales, mktg, & financial as demanded by BU’s. One Global IT Global CRM (GCM). analytics accessing one Corp Consolidate Data WH. Centers & Bus Proc. Bus Operating Replicated / Unified / Unified / Unified / Model / EA Business Silos Maturity Standardized Optimized Core Dynamic Strategy Technology Business Maximize ROI at an $1B Cost Reduction Global Campaign to Better marketing, sales, and LOB/Country level. Opportunity to Quote financial decision making Objectives Foundation for Growth ERP Standardization customer-facing process Fix RevRec issues One Customer View Foundation for BI Application Architecture Customize & optimize Standardize on EBS Standardize on Siebel Create BI solutions using local apps for BU needs CRM 8.0. Implement OBI EE/Hyperion with Siebel Architecture Strategy Implement Global GCM. Integrate BP for CRM, EBS Suite, and ODI. Single Instance via Implement Global BI using a Apps Rationalization Opportunity (Siebel phased approach. CRM) to Quote (EBS) Information Architecture Maintain data for BU Implement Global Info Provide one source of Provide a Global Corporate needs. Rollup data to System via Info truth Customer DW that WH with data feeds from EBS Architecture Strategy GSI, CRM GSI, and other corporate level as Rationalization and DW integrates data from sources. required. centralization multiple sources Technology Architecture Optimize platform for Move to shared Optimize platform in Optimize platform in Austin individual applications & services model. Austin Data Center on Data Center on Linux and Architecture Strategy RAC. Secure data.Corporation – Proprietary and Confidential data access via tuning Standardize H/W & Linux. 9 configurations S/W. Operationalize. 9
  10. 10. Architecture Center of ExcellenceDelivers Consistent EA Execution Program Management Strategic Management Direction Reporting • Across Projects Architecture COE • Across Technology Architecture Strategic • Across Teams & Expertise Needs Project Teams
  11. 11. Oracle Has Been Guiding EA Oracle EA Solution Engagements Enterprise Architecture Methods Business Architecture• Refine EA role & responsibility • Refine capability models and metrics• Organize overall accountability • Connect business model to EA vision• Bridge business & IT strategy • Guide industry best practices Information Architecture Applications Architecture• Re-engineer core business processes • Rationalize portfolio & roadmaps• Master data management • Guide services, EDA & BPM strategy• Improve analytics & information quality • Applications evolution roadmap Governance Architecture Technical Architecture• Establish processes & metrics • Server consolidation (RAC-Exadata)• Oversee governance operations • Enterprise security (DB-Identity) • IT-as-a-Service (DB-aaS, PaaS, IaaS)
  12. 12. WHAT IS“IT OPTIMIZATION?”
  13. 13. Roadmap to Strategic Advantage Driven by Business Strategy and Operating Model IT Optimization Business Modularity Optimized Core Standardized Rapidly Technology innovate and Standardize propagate for core strategic Business processes and impact Silos Build an information effective and efficient IT platform for executionSource: Copyright MIT Sloan Center for Information Systems Research. Enterprise Architecture As Strategy, Jeanne W. Ross
  14. 14. Phases of IT Optimization IT Silos IT as a Standardized Optimized Business Rationalized Virtual and Consolidated Shared Services / Goals: IT Portfolio Infrastructure and Services Cloud Computing Client 1 Point to Point Integrations Integration Layer FBT PAY G NTS TRDS Customs NTS A/c Portal Portal Portal Service Group A Service Group B Data……. B2B B2B Penalty PaaS IaaS RRE IPS Integrated A/C Refunds RBA Def CRM CRM CRM CRM Application Grid Application Grid 1 Excise Payments ERP ERP ERP ERP CCD Compliance Staff CR ECI ADD AWA ELS Staff Data Grid Data Grid Business DDDR Phone TASS Product Product IVR PKI CDCC CWMS GCI WOC Bus. Intel Ref aterial m Customer Customer SaaS BOA B EP Client BANK Staff Remote Staff TAX AGENTS Call Centres Security Security Security Security Security Layer• Peak load sized • Standardized • Pools of resources • IT as a “Service” interfaces/systems• Difficult to scale • Consolidated • Rapid provisioning • Lower costs for license• Difficult to change • Better productivity • Lower costs and support• Expensive to • Higher QoS • Faster project • Better leverage manage turnaround of IT resources/skills • Improved IT agility• Complex and risky • Greater focus • Reduced IT project • Improved security time/costs/risks on business and management
  15. 15. “Architecture” Guiding Principles Data Center Shared Rationalization and System Services/Cloud Optimization Computing IT as a Resource Pools “Business” Customer Goal Consolidation Driven Standardization Enterprise Agility Security Enterprise Elasticity Management Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only.
  16. 16. IT Optimization: EA Process Relying on a Proven Methodology Phase I: Aligned Portfolio RationalizationArchitecture Vision Phase II: Data Center and System Optimization Strategic Business and IT Alignment Phase III: Shared Services/ Cloud Computing
  17. 17. IT Optimization: EA Process Relying on a Proven Methodology Phase I: Aligned Portfolio RationalizationArchitecture Vision Phase II: Data Center and System Optimization Strategic Business and IT Alignment Phase III: Shared Services/ Cloud Computing
  18. 18. Case Study: Financial ServicesPortfolio RationalizationScope: Re-engineering the Core Information Architecture Business Goals • Reduce closing cycle down from 35-50 days • Complete re-engineering of processes • Ensure data reliability & governance • Provide basis for agility and innovation Challenges • Hardcoded accounting rules • Complex, heterogeneous portfolio • No centralized data quality strategy • Never rationalized portfolio
  19. 19. Kick Start EA Principles Principle Description Information Information needs to be managed and as an Asset treated the same way as physical asset. Value and Risk A classification of an information asset’s Classification value and risk should be the foundation on which its management and governance is based. Single Version Data should only be collected once of Truth electronically within a single interface, and shared across systems. Minimum Quality Quality requirement needs to be set for information assets. Information has All business data needs to have an Authoritative authoritative source. Sources Information Information needs to be secure Security throughout its lifecycle. Information Information is accessible for users to Accessibility perform their functions. Data Every data item has one person or role Stewardship as ultimate custodian. Metadata Driven Information architecture needs to be metadata driven. Measurement Quality of data will be measured. for Quality
  20. 20. Leverage Proven Architectures
  21. 21. Effective GovernanceExample: Institutionalize Accountability and Governance
  22. 22. IT Optimization: EA Process Relying on a Proven Methodology Phase I: Aligned Portfolio RationalizationArchitecture Vision Phase II: Data Center and System Optimization Strategic Business and IT Alignment Phase III: Shared Services/ Cloud Computing
  23. 23. Data Center and System Optimization“Architecture” Guiding Principles • Maximize clustering and virtualization Resource Pools • Increase hardware utilization • Standardize IT management processes Consolidate • Reduce diversity across IT: capital expenses, skills Enterprise • Reduce diversity, complexity, and risk • Simplify regulatory compliance Security Enterprise • Increase automation for QoS and IT productivity • Enable consistency and accountability Management
  24. 24. Resource Pools Across Tiers User Desktops Portals & Web Servers • Business Demands Agility – Deliver new resources quickly Application Servers – Adjust as requirements change Middleware • Multiple Resources Must Be Aligned to Meet Service Levels Database / Info Mgmt – Performance and Availability Hardware / Platform • An Engineering Commitment Disk / Storage – Optimal flexibility and value Security Management
  25. 25. Helping Customer EAs Model Solutions
  26. 26. Case Study: Financial ServicesData Center OptimizationScope: Computing Platform Overhaul Business Goals • IT unresponsive to business competitive needs • Streamline business process automation • Integrated analytics • More leveraged IT spend EXECUTIVE INSTRUCTIONS: SAVE US MONEY NOW ! Challenges • Ongoing M&A and independent budgets • Dictated by business what to buy • Project driven culture, high redundancy • Reduce IT storage and platform costs • Coordination of large IT
  27. 27. Operational Recommendations Evolve to a Comprehensive IT-as-a-Service Model Infrastructure Infrastructure as a Service Simplification • Reduce storage requirements Analytics • Maximize server utilization Consolidation Analytics as a Service • Rationalize analytics • Standardize enginesOracle Apps Applications as a Serviceas a Service • Rationalize portfolio • Standardize CRM and ERP Security as a Service Security and Identity • Standardize Identity Management • Standardize Data Security
  28. 28. Data Center Transformation Changing the Operational Model Current State Future State 1,158 1,981 Exalogic 49Servers Middleware Private Infrastructure Cloud Exalogic Simplified Database WebLogic Servers Servers* Servers and Open Source *Target 50% of Current Oracle Environment Exadata 86 Database Private 2,662 Terabytes Cloud ExadataStorage Servers 703 Enterprise Storage Terabytes Storage (25% Annualized Growth Rate) Infrastructure Component Current Target Future Reduction Database Servers 2,270 1,158 86 93% Middleware Servers (WebLogic and Open Source) 2,251 1,981 49 97% Storage (Terabytes) 2,662 2,662 703 74%
  29. 29. “The Art of the Current State”
  30. 30. Financial RecommendationMore than Traditional Analysis, added an EA Focus
  31. 31. IT Optimization: EA Process Relying on a Proven Methodology Phase I: Aligned Portfolio RationalizationArchitecture Vision Phase II: Data Center and System Optimization Strategic Business and IT Alignment Phase III: Shared Services/ Cloud Computing
  32. 32. Case Study: State Government Shared Services and Cloud Computing Scope: Creation of a New Business Model Future State Choices Business Goals • Reduce IT costs  Outsource IT • Chargeback model for IT services • Standardize shared services offerings • Thorough deployment of ITIL Challenges • Agency autonomy and independence • Budget constrained IT staffing • Over populated data centers IT OPTIMIZATION • Many legacy, redundant services Rationalize Optimize IT-as-a- • Lack of standards and methodology BusinessSource: MIT Sloan Center for Information Systems Research
  33. 33. State Cloud Service Provider Business Model • Customer Acquisition, • Agencies Onboarding & • Cloud Consumer • Customer • Agencies Provisioning Model Relationship Mgmt (Federal, State, • Vendors and/or Local) • Value-added Services • IT Abstraction • Communities • System Integrators • Operational Support • K-12 (Change, Release, & • Shared Services • Tech Support / • Auditors Service Desk • Citizens Configuration Mgmt) • Value-added Svcs DEMAND • Services Portfolio Mgmt • EnablementSUPPLY • Predictable Cost • Business Continuity programs • Elastic Computing • Metering & Chargeback • (ITSM ) Best Practices • IT Governance • IT Ops Staff • Private Cloud • Security & Privacy • Service Desk • Remote access • Availability and • Mktg, Sales, Finance Continuity • Partner extranet • Cloud Data Center(s) • Partners (SI, ISV) Value-driven cost structure Revenue through Cost Recovery model per OMB A-87 per OMB A-87
  34. 34. Oracle Architecture Development Process Architecture VisionOracle ArchitectureDevelopment Process
  35. 35. Oracle Architecture Development Process Future State Load Balancer App Svr App Svr App App App Svr App Svr App Svr Oracle Virtual Assembly Builder COTS COTS App App App App Svr App Svr App Svr OVM OVM OVM OVM User App App App FMW-as-a-Service DB DB DB Service Chargeback DB DB DB DB Request COTS COTS COTS OVM OVM Provisioning OVM OVM OVM Database-as-a-Service Infrastructure-as-a-Service Exadata Oracle Enterprise Manager and Ops Center Billing and Revenue ManagementOracle ArchitectureDevelopment Process IT Service Management
  36. 36. Oracle Architecture Development Process Business Case: Enabling A Simple Service Catalog Standardized Per Use ServiceBlock Size Core Memory Storage Workloads FunctionSmall 3 4G 1TB OLTP DevMedium 6 8G 2TB ERP, HRMS Dev, Test, ProdLarge 12 16G 4TB Data Prod Warehouse Additional Per Use Services Oracle Architecture Upgrade Storage I/O Storage Development Process Option 1 XX-YY GB 2 TB Option 2 YY-ZZ GB 4 TB Option 3 ZZ-AA GB 8 TB
  37. 37. Oracle Architecture Development Process Business Case: Compelling Ongoing Economics Offered Internal Chargeback Option 11g on DB 1 Business DBs onCost Component TCO % Cloud as Usual Blades MachineDatabase License 10% $10 $9 $8 Storage 22% $22 $22 $7Network (HW+Pipe) 13% $13 $13 $3 Environmental 10% $10 $6 $1 Oracle Architecture Staffing 40% $40 $30 $20 Development Process Overhead 5% $5 $5 $5 Total Cost 100% $100 $84 $44 vs. Attract New Customers with the Best Prices! 1 Terremark Investor Relations Presentation
  38. 38. IT Optimization: EA Process Relying on a Proven Methodology Phase I: Aligned Portfolio RationalizationArchitecture Vision Phase II: Data Center and System Optimization Strategic Business and IT Alignment Phase III: Shared Services/ Cloud Computing
  39. 39. How Oracle Can Help Leverage Oracle’s Portfolio of EA Assets People Process Portfolio Certified Architects, Practical Approach, Best Practices,Experienced Advisors Proven Methodology Proven EA Artifacts
  40. 40. Next StepsCome Talk to Us • Meet our Enterprise Architects • Use our EA & Architecture Artifacts – Library of EA Resources – All things Oracle & EA, www.oracle.com/EA • Learn about Oracle EA Services – Description of EA Services – Articles about Oracle’s EA Experiences
  41. 41. Q&A

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