Dell Computers


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  • The recent economic times have placed great stress on companies and, in turn, on their IT departments. Additionally, companies have been trapped in the situation where they spend the vast majority of their tight IT budgets on maintaining their IT environment instead of using those dollars to fund innovation IT projects that create value for the overall business.

    Dell’s Efficient Enterprise Strategy will enable customers to challenge the status quo. Dell wants to partner with you to free up critical IT dollars that can then be applied to innovation and competitive advantage. So, the Efficient Enterprise is about finding that capacity and taking advantage of it. In short, we want businesses to be able to move past the survive to thrive.
  • The economic times has cause every company to place a premium of efficiency. IT is being asked to driving efficiency company wide and it itself must become more efficient. How IT is managed from a financial standpoint has changed: avoid capex, move to variable opex, focus on TCO, mitigate risk because of economic uncertainty. These financial principles for managing IT are likely here to stay for a while, even after the current economic crisis passes.

    The US workforce is also going through a transformation. Web 2.0 and social media technologies have changed how companies interact with their workforce, customers, and partners. The US workforce is more mobile and distributed, be it working from the road or working from home. The consumerization of IT has changed the way employees view their IT resources at work. Customer are used to choice, customization, and the performance of consumer systems and expect to have similar experience at work. The younger portion of the workforce is now comprised of the Millennials who entered the workforce at the turn of the century. They are used to always being connected—always online and having regular access to social media. They want to leverage the power of social media in the workplace. They also don’t want to be constrained in how and where they use technology.

    Within the data center, there has been a drive to consolidate both facilities and servers. Virtualization has been a great enabling technology to do that. It has also provided greater flexibility, scalability, automation and resiliency throughout the enterprise. It is the fundamental building block towards enabling IT delivering its services internally using a private cloud model.

    Finally, every company is trying to figure out how to leverage cloud services as it offers the promise to deliver the economic requirements that customers are now seeking: pay-as-you go, IT-on-demand, variable opex. Cloud infrastructures and services also will allow IT departments to be more responsive to the speed of today’s business needs. Customer are desperately seeking guidance on how to best apply cloud to their IT infrastructure.
  • Companies need to cut costs and they look to their IT departments to deliver those savings for the overall company while still enabling greater automation and productivity across the company. IT now has to re-prioritize its spend, given budgets are flat to declining.

    It can either cut its costs and re-spend that money on driving the productivity gains for the overall company or extend project deadlines. IT organizations need a solution to challenge the status quo of devoting a significant amount of their budget to maintenance as that approach can’t be sustained. Further, the impact IT can have on the innovation within an organization can’t be overlooked—IT can help a company not just survive and maintain the status quo but truly thrive.
  • The first steps towards greater IT efficiency is to challenge how IT budgets are spent today. Today, the market spends about $1.2T world wide on IT infrastructure. Of that $1.2B, around 80% of it is spend on maintenance: IT services (including internal labor) and software such as multiple systems management tools and middleware that stitches various systems together.

    Dell believes that companies should target reducing the percentage of spend on maintenance from 80% to 50% and reinvest that 30% in innovation and strategic spending.
  • When you drill into the 80% spend on maintenance and use the data center as an example, around 23% is spent on hardware. Moore’s law has been a wonderful thing and has driven down the cost of hardware significantly over the years. Dell has traditionally participated in this space and will continue to drive value with newer, more powerful hardware than is also greener and easier to operate and maintain.

    However, to drive down the spend on maintenance, customer need to address the largest components that are primarily driven by labor costs. Dell believes there is a great opportunity to drive greater labor efficiency through process improvements and out-tasking so that that labor can be used more productively towards innovative projects.
  • These are simply observed trends…not Dell opinions or points of view. They affect how customers view and evaluate solutions.
  • Healthcare customer in Phoenix, AZ: 10,000sf of data center at capacity – no room for more racks or power circuits. After a technology assessment determined that a corner of the data center could be upgraded to a small but powerful virtual environment supporting back office applications, the result was a phased upgrade plan that allowed the entire data center to leap frog from one legacy ecosystem to a new optimized infrastructure resulting in a 6-fold increase in computing horsepower and storage capacity while occupying only ½ of the original 10,000 sf.
  • The technology that’s inside the data center is an important driver of the infrastructure solution that’s outside the data center

    Proper data center planning and infrastructure design must begin with an assessment of the technology architecture
  • If you plan for the future, there is great opportunity for efficiency.
    Need to accelerate virtualization
    Re-architect into converged infrastructure of sever, network, storage
  • Phase 1: Economic savings - Technical detail
    Continual cost improvements & improve server utilization (in groups)
    Streamlined migration from existing infrastructure
    Improving predictability & reliability (in groups)
    Enabling mobility (in groups)
    Improving Data Center Utilization, Mobility levels (viewed as one collective resource)

    Phase 2: Quality of Service – technical detail
    Rapid, single-stroke deployment of infrastructure
    Infrastructure pooled into dynamic resources
    Hassle free infrastructure upgrades (implies fully stateless Infrastructure)
    Simplified infrastructure remediation
    Just-in-time capacity planning

    Phase 3: Strategic Agility – technical detail
    One-click deployment of IT services (multiple apps cooperating as one)
    Self-Service Provisioning
    Consumption Based Billing
    Sourcing to 3rd party entities, but still managed as a single resource

    When we look at this in terms of an operational model we can see how this might be deployed in various phases. Clearly there’s no hard dividing line between the phases and in fact some customers may want to mix and match capabilities to be tuned to their own needs. And it’s also clear that some of the functions, particularly in the last phase may never be employed. Nevertheless we perceive that most shops will generally progress in a certain way.

    The first phase is largely empowered by the adoption of virtualization. Utilization rates increase, some HA and DR problems are solved, but largely virtualization is deployed in pockets. During this phase, IT admins make a decision to move more strategically with virtualization. They see pockets of virtualization in their organization. What was once an optimization of IT infrastructure becomes seen as sub-optimal optimization against the whole. Why not bring the pockets together to form a single shared infrastructure? This is a fundamental shift of philosophy and operating model. With today’s technology admins are forming standardized infrastructures to move workloads / virtual machines around. A lot gets locked down.

    Now enter the next phase (phase 2). Based on what we talked about before, key technology improvements can make a shared infrastructure more fluid, faster. In this environment, the measure of VM’s deployed is not how long it took to get one stood up, but how many VMs are installed in a given month? Is it 100, 200, 300? How quickly does it take to update and refresh the plumbing? capacity planning, which was once a periodic event is part of the daily routine. The infrastructure discussion becomes more about retiring older systems, freeing up data center capacity, not just in a one time basis, but in a continual way. The service model is tied back to how virtual machines are moved around.

    In the last phase (phase 3), there is a fundamental shift to operating model. IT services are coming on line routinely. No more extensive white board sessions with unbreakable topology maps. Developers get what they want from a self service portal and IT admins don’t worry. The appropriate approval processes are automated, VMs are destroyed or retired per an upfront arrangement, and every commitment comes with a bill. The economics of what’s affordable to a business unit meets up (demand) with the IT supply in real time. And as admins become acutely aware of their capacity and the demands placed on it, attention is turned to alternative, out sourced capacity to arbitrage peak demands. This is not the same outsourcing contract we saw before. This is where providers have capacity available for expected or unexpected short term usage.
  • Main point: Increasing the virtualization ratio faster will yield higher overall savings.
    Dell did this and now sits at over 48:1
  • Dell only offers what it has performed successfully for its own data centers.
  • Let’s take a closer look at the steps we took to return 30% to strategic spending. When we started our path to enterprise efficiency, we were spending in the upwards of 80% of our IT budget on just maintaining our infrastructure—keeping the lights on.

    The first step we took was to standardize—we moved 97% of our servers to x86-based Dell servers—that alone provided us with a huge leap forward on our path to efficiency. This is a trends that Dell has driven across the market, with x86 servers now comprising more than 90% of the server units shipped today. Only 60% of the revenue is from x86 servers so there still is an opportunity to drive standardization.

    Moving to a common images for your entire company is another example of standardization and has benefits when you move to automation.

    Next, we looked to simplify. Clearly, virtualization was a key step—in fact, with virtualization alone, we eliminated 6,000 servers and virtualized 7,000 with the goal of reaching 10,000 servers by the end of 2010. The result is a savings of well over $100 million over the course of two years—but beyond that, we made a concerted effort to reduce the amount of software apps we were running.

    Simplifying the number of applications is also a good example. Several years ago, Dell had over 10,000 applications, both IT and non-IT. By the end of 2009, Dell will have ~3500 applications with the goal of going lower. From a systems management standpoint, Dell has gone from 804 different systems management tools to 300.

    Now that you standardized and simplfied, customer can now truly automate their environment. Because of image standardization, Dell is extremely efficient in managing and updating it ~130K systems world wide. Cloud computing for many of us will be the future of automation. Saas, IaaS, PaaS and other as a service offerings are going to fundamentally change delivery models. That said, for us it was part cloud but part of it also was automating a lot of our imaging tasks. By doing so, we were able to image and deploy servers in hours. Literally hours as opposed to days or even weeks.
  • PUE/DCiE measure efficiency of power and cooling systems to support the IT equipment loads – they do not measure how much data processing is actually taking place within the IT equipment energy footprint.
  • Energy intensity does not deal with total site power, but only with how much data processing is actually taking place within the IT equipment.

    A lot of data processing (modern virtual infrastructure) consuming a small amount of energy = low energy intensity = good 

    A little bit of data processing (older legacy standalone servers) consuming a large amount of energy = high energy intensity = bad 
  • Top graph shows effect of virtualization adoption on energy intensity (lower is better)
    Bottom graph shows benefit of replacing older equipment sooner – after 3 years vs. 5 years
  • Dell Computers

    1. 1. SOLUTIONS FOR THE EFFICIENTENTERPRISE Hesham Halis Global Practice Executive Dell IT Consulting
    2. 2. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE Only the efficientthrive. Efficiencyis being redefined by the current economy. PREMIUM ON EFFICIENCY + Economic uncertainty + Increasing demands on IT + Focus on TCO + Expansion in Emerging Economies WORKFORCE TRANSFORMATION + Web 2.0 + Mobility + Consumerization + Millennials + “Desktop” follows the user vs. the device CONSOLIDATION AND VIRTUALIZATION + Do more with less + Scale flexibly + Extended refresh cycles + Increase staff productivity CLOUD COMPUTING + Managed & Modular Services + IT-on-demand + Applications on-demand 2
    3. 3. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE The Status Quo Is Not Sustainable Demands on IT continue to expand Budgets are flat to down Strategic investments limited to running the business 3
    4. 4. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE Strategic spending to improve the company Maintaining legacy IT environment The firststep in greater IT efficiencyis challengingthe cost of running your IT today. 80% of $1.2 trillion is spent annually just to keep the lights on. TODAY’S IT REALITY 20% 80% 4 Strategic spending to improve the company Maintaining legacy IT environment TOMORROW’S IT POSSIBILITIES 50% 50%
    5. 5. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE And labor remains the key driver of IT cost. DATACENTER COSTS Deploy 10% Operate 25% Support 10% Facilities 7% Network 11% SW 9% HW 23% 50% LABOR Innovate processes Out-task to improve labor efficiency Upgrading to newer/ greener hardware will reduce operating and labor requirements Plan 5% 20% 80% 5
    6. 6. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE Data Center Trends • Exponential growth ~60% year over year1 • Organizations can’t afford to deliver all data at highest service levels Data Growth • Virtualization enabled shared and combined infrastructure • Great opportunity to streamline change control and automate provisioning Converging Infrastructure • Public Cloud Providers • Heightened Expectations • Cost pressure End User Options (1) IDC Digital Universe 2008 6
    7. 7. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 7 Data CenterOptimization Compute Storage Network Infrastructure Backup & Replication Compute Storage Network Infrastructure Backup & Replication •6xComputing &Storage •1/2xSpace & Infrastructure
    8. 8. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 8 FacilitiesEfficiency Inside Out Approach Location Decision Building Selection / Design Raised Floor Layout Density/Airflow/Cooling Critical Building Systems Cable Plant Design Facilities Strategy Facilities Monitoring IT Service Levels Storage Tiers Server Virtualization Network Architecture Operations Management Application Architecture “Inside” “Out” DR Strategy DELL CONFIDENTIAL 8
    9. 9. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE • 600,000 BOPS • 16 racks, 240 servers • 400 TB Data Storage • 640 sq ft • 120 kW, 7.5 kW/rack • 40% utilization 9 DataCenterTransformation NewCapacityPlanningImplications • 600,000 BOPS • 160 racks, 1500 servers • 300 TB Data Storage • 6,400 sq ft • 550 kW, 3.5 kW/rack • 20% utilization • 600,000 BOPS • 2 racks, 40 svrs • 500 TB Data Stg • 80 sq ft • 42 kW, 21 kW/rack • 60% + utilization Source: - comparison cases: PE 2950, M710 Don’t plan for what you have today, … 3 YEARS aggressively consolidate … and design for the future 1 YEAR
    10. 10. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE • Put capex under control: lower server count • Impact data center operating costs e.g. power & cooling, space • Improve speed and predictability of deployments • Establish basic recovery routines • Centralize storage for better back up • Service orientation to infrastructure balancing cost and SLA’s • Tight alignment with business goals • Rapidly responding to new initiatives • Evolved IT governance model • Seeking value over time more than optimizing cost • Anticipate the needs of the business • IT governance in real time to business governance • IT becomes part of the business strategy & differentiates • Managed risk is proactive & routine Phase 1: Economic Savings Phase 2: Quality of Service Phase 3: Strategic Agility Realizing the promise of virtualization requires a stepwise approach 10
    11. 11. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 11 Server Virtualization AccelerateTCO Savings Total Cost of 1000 Workloads $0.8 M $1.7 M $2.5 M 2010 2011 2012 2013 $10 M 200 Virtual 8:1 Virt Ratio 300 Virtual 10: Virt Ratio 400 Virtual 12:1 Virt Ratio 500 Virtual 14:1 Virt Ratio 200 Virtual 8:1 Virt Ratio 400 Virtual 16:1 Virt Ratio 600 Virtual 32:1 Virt Ratio 800 Virtual 48:1 Virt Ratio Average Pace Accelerated Pace Additional Savings with Acceleration: $5 M over 3 years Total Savings $2.5 M $7.5 M
    12. 12. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE We know we can do this for you because Dell has done it for itself already. 1212
    13. 13. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE AUTOMATE + Image and deploy servers in hours, not days or weeks + Reimaged client systems “self service” in about an hour + Managed 130,000 servers and clients from one console 13 Dell has achieved30% strategic spending and is on track to achieve to50/50 mix by 2010. 20% 80% STANDARDIZE + Moved 97% of systems to x86 + Used only two primary server images (.Net/Windows and Oracle/Linux) + Single global client image START SIMPLIFY + Reduced application footprint by 25% per year over three years + Replaced multiple regional systems with single global instances + Aggressively deployed virtualization in production environment + “Virtual first” for all new applications 50% 50% EXITING CY2010 Strategic spending to improve the company Maintaining legacy IT environment TODAY’S IT REALITY
    14. 14. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 14 MeasuringEfficiencyandData Center Productivity PROBLEM: As established by the Green Grid, PUE and DCiE only measure the efficiency with which a facility supports IT equipment loads. It does not determine the effectiveness or efficiency of the IT equipment in performing data processing workloads. • PUE and DCiE were necessary first steps to promote more efficient facility designs. •Truly leveraging available technology will drive energy consumption down by orders of magnitude. • Although PUE and DCiE are standardized measures, the nuances of facility type, and shared infrastructure resources means comparisons between facilities is less meaningful. • PUE and DCiE are aggregate measures of an entire facility, and can’t provide insight into what IT components are contributing most to inefficiency. PUE: Total Site Power Total IT Power DCiE: Total IT Power Total Site Power
    15. 15. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 15 Energy Intensity is a better measure of datacenter productivity Why Energy Intensity? • Energy Intensity provides a more intuitive feel for how data centers consume resources. • The math behind Energy Intensity provides an easier mechanism for understanding for how different areas within the data center contribute to the overall energy footprint of the facility. • Energy Intensity enables meaningful comparisons to be made between separate facilities. Energy Intensity whitepaper is available on request. DCeP: Workload Unit Energy Unit Energy Intensity: Energy Unit Workload Unit
    16. 16. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 16 Energy Intensity Appliedto Compute
    17. 17. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 17 • Short term focus often cripples business objectives and bottom line. • Data Center infrastructure has been designed, engineered and commissioned by vendors and or general contractors not specializing in mission critical facilities • Technical skills of facility staff do not always apply effectively for 7x24 mission critical data center building environment • Lack of change management process / system • Unsuccessful relation between the facilities group and the data center IT staff Lesson Learned Data Center Facility Optimization Most Data centers failures are due to:
    18. 18. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 18 • Data Center standards and best practices: TIA-942, ASHRAE • Maximum reliability and availability • Scalable, Modular design / construction: o Reduce UPS and cooling over-sizing (reduce initial cost and space) o Allow future upgrade with no IT disruption o Allow for agility and flexibility • Accommodating future growth and capacity • Reducing human error- Simplified Design and maintenance • Local and remote metering. Centralized monitoring and management • Energy efficiency and “green” design • Reducing total cost of ownership Lesson Learned Data Center Facility Optimization Design Criteria:
    19. 19. CONFIDENTIAL SOLUTIONS FOR THE EFFICIENT ENTERPRISE 19 Conclusions: •Sustainableenterprisesmust embracea “cloudcomputing”view ofIT •The pathtoefficiency is tostandardize,simplifyandautomate •Technologytransformationmustprecedefacilitytransformation •Transformationreducesopexandincreasesfunding forinnovation •Measuresofefficiency mustaccountforworkloadproductivity •Energyintensitymustbeaprimarydriver in architectingsolutions •Avoid design pitfallsbyusing skilled partnerswho knowthe business