Let me start by setting the context with a quote from Sir Tim Berners-Lee, renowned as the inventor of the worldwide web. Writing in the UK Times he said “Data is the new raw material for the 21st century”. As will become clear from the rest of what I have to say, the importance of data, and particularly Big Data, is something that organisations are just beginning to realise the significance of.
Let’s look at some insights from the research. I will go through the details of how we got this data shortly, but for now I want to hit you with the big question that comes from looking at a comparison of the Cycle 2 data, which has just come in, with that from Cycle 1, which was gathered in early 2011.We asked organisations whether they were using in-house only data centre facilities or whether they used some outside facilities also. (Left hand two pairs). We see that the number using only in-house data centre facilities has dropped, and the number using external data centre facilities has risen.We asked organisations whether they saw a need for new data centre facilities. And we see that those declaring *no* need for the foreseeable future has dropped, whilst those who see a need within 2 years has risen.This gives us a clear picture of organisations who have had to go outside their own data centre for extra capacity in the short term, whilst seeing the need to build up their own capacity in the longer term. Given the huge explosion in data volumes, we therefore ask – has this explosion, so-called Big Data, caught business by surprise? Across the board, all kinds of organisations are planning and changing their behaviours to adapt to the ‘Big Data’ boom.(Figures in the slides:Number of in-house-only data centres down from 60% to 44% since Cycle I (May 2011)Use of some external data centres up from 40% to 56%Number of people not needing new facilities in the foreseeable future has dropped from 17% to 8%Needed in the next two years – now 38% (was 27% in Cycle I))
The first one is about data and the fact that it is increasingly being seen as an issue for the busines, for the board, not just for the IT function.Here we have a chart of responses to the question – what is the main reason for new data centre investmentsAs you can see, the main reason was and is the need to consolidate. But the interesting question is – what comes next?ClickIn Cycle 1, the second most important reason for data centre investment was “supporting business growth”. But now this has dived down the priority list, to be replaced by Click“Limitations of Existing Facilities”. Take these two data points along with the increase in overall Index, which says that progress is being made. So business are investing in data centre facilities – a board-level decision – despite a slow climate and in recognition that current facilities are becoming limited. This is real evidence that the board are now taking data seriously.
The third story is about Sustainability.We’ve already seen, and we see again here, that the Sustainability Index has gone from being bottom to joint top. This says that, overall, Sustainability is now a key issue. And there are data points which further underline thisIn the area ofSustainability planning – now 52% have a statement and a plan – it was 44%, so growth has been by 20%; and those having no plan has dropped by half.But there’s still room for improvement. Although more data centre managers than in Cycle 1 now see their energy bill, still 46% don’t (36% don’t see it and a further 10% reckon that nopbody sees it), which is shocking, given the amount of energy that data centres use (Back of the cigarette packet calculation – 3 billion Euros a year!)And this is where Oracle’s capabilities start to come to the fore – properly engineered solutions can radically reduce energy and physical footprint, for example, and significantly aid sustainability efforts.
And here’s the final story from the Index research – consolidation and virtualisation.Left hand two pairs of bars: The number of organisations doing “nothing” on consolidation has halved. And virtualisation is on the increase as a consolidation tool. So this is...Click...a good thing.Middle two pairs of bars show that organisations with low levels of virtualisation of their IT estate are dropping – in the case of very low (<10%) levels, this figure has halved. So this is also a...Click...good thing.But still (right hand bars) the level of server utilisation has not progressed much. A calculation from Cycle 1 shows that European businesses could save one billion euros from their energy bill by getting their server utilisation levels up from 30% to 50% - this seems a no-brainer, and yet it is not happening. So....Click...progress needs to be made here.There are some clear, quick-win opportunities here – organisations must be more vigilant in looking for themThe number of respondents doing “nothing” on consolidation has almost halved – from 23.2% to 12.8%The amount using virtualisation to consolidate has gone up from 18.6% to 26.3% - but still slow progressStrong growth and clear sophistication around the use of virtualisation:49% down to 38% with <30% of the IT estate virtualised25% down to 13% with < 10% of IT estate virtualisedSlow progress on server utilizationJust 27% have over 50% utilisation – up from 24%
Given the wide range of Index figures in Cycle 2 (4.6 to 6.5), it’s interesting to take a brief look at some individual country results.The most progress, proportionately, has been made by the Middle East, something like a 20% improvement in Index score. It was bottom and now ranks middle of the table, and the improvement has been pretty much across the board. One very interesting thing stands out – the most important reason for data centre investment, uniquely in this Cycle, is “supporting business growth”, so the Middle East doesn’t appear to be affected by the doldrums that everyone else is doubtless experiencing.Nordics have made good improvements in many areas, so their overall index score went up by nearly 10%, as opposed to the average of about 7%On the other hand, several countries made only small improvements, and may have taken their eye off the ball when it comes to driving the further modernisation of their data centresFrance, alone among the countries showed virtually no change in the need they see for future data centre investment. Everyone else saw more need for data centre investment than they did in Cycle 1. So either France has been looking ahead, or is in for a surprise?Russia and Ireland have a long way to go to catch up with the other countries
So what does Oracle think?It is encouraging to note progress even in such a tough business climate as Europe faces today – but it is also worrying that organisations seem not to have be acting swiftly enough to cope with the challenges of Big Data.Technology to be more efficient is well-understood – organisations need to take it up moreAn interesting thought is that in the era of engineered, pre-integrated systems, organisations need to examine the way that they procure, test and implement IT. Separate methods for hardware and software may no longer be the most efffective wayAnd Oracle is there to help, of course
Now, it’s all very well for Oracle to preach – we are, after all, a Tech vendor, so we would say that, wouldn’t we? But if you look at Oracle’s own track record in using technology, you can see we are making recommendations to our customers based upon our own experience
But it’s not just us. This slide and the following two are all about our customers’ success, too.
So, that’s the outline story from Cycle 2 of the Oracle Next Generation Datacentre Index* Big Data – are we ready for the challenge?The boardroom is paying much attention to IT as a key business enabler The countries making most progress in Sustainability made best progress in the overall Index, showing that Sustainability is now a key part of what businesses need to focus on in their data centresConsolidation and Virtualisation are key technologies which can increase effectiveness and help business make the most out of possible savings through efficienciesIt’s good to see progress – but businesses can do more. We hope to be able to do a further Index in this area at some stage to continue to monitor how organisations are marshalling their data centre resourcesAnd, of course, we believe that Oracle is best placed to advise, guide and provide technology to help businesses on their way to a more efficient, effective and sophisticated data centre strategy.
Oracle Next Generation Data Centre Index
<Insert Picture Here>Oracle Next Generation Datacentre Index,Cycle II – Results and Key Findings11th January 2012
―Data is the new raw material for the 21st century.‖Sir Tim Berners-LeeDirector of the World Wide Web Consortium and Director Designate of the Open DataInstitute CUSTOMER LOGO
Has the ‘Big Data’ boom caught businesses off guard? Use of Data Centers – Cycle 1 to Cycle 2 Comparison60504030 Cycle 1 (%) Cycle 2 (%)20100 In-house-only data Using some external No need for new data Need new data centre centres data centres centre within 2 years 4
Oracle Next Generation Data Centre (NGD) IndexBackground• Large numbers of senior IT personnel questioned – Over 950 in 10 regions – UK, Ireland, France, Germany/Switzerland, Italy, Iberia, Benelux, Nordics, Middle East, Russia – Large (>$100M revenue) or very large (>$1Bn) organisations• Answers can be converted into numbers 0 – 10 – Basic topic – Data Centres and how organisations set up and use them – Sub-topics – Flexibility, Supportability, Sustainability• Overall average gives the Index number – Also have Index numbers by country and industry – Also have Index numbers for each sub-topic• This is Cycle II – Cycle I was launched May 2011 – Much insight available from comparison of the snapshots 5
Top Line Index Results• All Oracle NGD Index numbers have increased since Cycle I in May 2011 – Overall progress is being made in sophistication of data centre strategies • Cycle I (5.22) to Cycle II (5.58) • Cycle II Range is 6.51 (Nordics) to 4.62 (Russia) – Every sub-index, every country, every industry figure has risen, even in the short time since Cycle I• Research highlights what is happening in key technology topics – Sustainability, Virtualization, Consolidation, Server Utilization, IT Planning, Upgrade Management, IT/Business alignment 6
Cycle I to Cycle II comparisons • Nordics now head the table, having taken over from Germany/Switzerland • Middle East has made great overall progress, other rankings remain the same • Ireland and Russia, both new to Cycle II, are lagging the rest • Flexibility was key in Cycle I, Sustainability more so in Cycle II • Financial Services has made least progress (Lower Flexibility in Cycle II) Nordics Telco Overall DCH Benelux Utilities UK Other Flexibility Overall Financial Services France Cycle II Cycle II Cycle 2 Cycle I Healthcare Cycle IMiddle East Cycle 1Sustainability Iberia Media Italy Public Sector Ireland Supportability Russia Retail 4 4.5 5 5.5 6 6.5 7 4 4.5 5 5.5 6 6.5 7 7.5 4 4.5 5 5.5 6 7
The Big Data Boom – Industry Perspective• Telcos seeing a sudden need to increase use of data centre technology. – Global connected devices to rise from 9 billion to 24 billion by 2020 (Machina Research) • M2M devices to grow from 2Bn today to 12 Bn in 2020 • Handsets – 2Bn to 9Bn • Data – 4 Exabytes to 42 Exabytes (60/40 between PC and Handsets) – Drivers: • Consumer data use on mobile devices • On-demand home entertainment • Hosted apps for small business and Infrastructure-as-a-Service (IaaS) • 4G will boost this trend• Utilities has made significant progress – Smart Grid and Smart Metering set to have a huge impact – The worldwide growth in smart meter unit shipments will be 13 percent from 2010 to 2015, with a total of 460.9 million smart meters shipped through the forecast period (IDC Energy Insight) – 26% CAGR in Europe, led by UK (109%), France and Spain (Frost & Sullivan) 8
The Big Data Boom – The Oracle Perspective• Despite talk about the data boom for many years, businesses have still been caught unawares by the sheer scale. For example: – 135 Exabytes of data (2005) will become 2720 Exabytes in 2012, and 7910 by 2015 (EMC/IDC) – The growth of data is outpacing storage capacity 2 to 1 – By 2014, global ecommerce spending is projected to increase more than 90 percent (84% Europe, 184% Russia) – Euromonitor International – Quarter of a billion apps downloaded on Christmas Day (Flurry) – 6.8 million iOS/Android devices activated on Christmas Day (up 140% from 2010) – Increase from 3Bn to 15bn devices connecting to the Internet by 2015 (IDC)• Businesses still trying to understand how to turn all this data into a valuable asset – Only now working towards changes in the datacentre to enable them to compete under the strain of Big Data.• Organisations need to be able to acquire, organise, analyse and act upon huge data volumes 9
Cycle II Insights II – Data in the Boardroom • Overall progress (5.21 – 5.58) in a slow business climate supports the idea that IT is fast becoming a boardroom issue Main reason for new data centre investment350300250200 Cycle 1 (#)150 Cycle 2 (#)10050 0 Need for Support Age of existing Move to new Limitations of Replace facilities Consolidation Business Growth facilities architecture existing facilities on rolling basis 10
Cycle II Insights III – Sustainability now on the agenda Oracle NGD Index and sub-indices • Organisations with no formal sustainability plan have halved (13% to 6%)Overall Index • Over half now have a sustainability statement in place and a formal plan to support it Flexibility Cycle 2 • There is room for improvement Cycle 1 – More data centre managers now see their energySustainability bill than in Cycle I, but nearly a half of them still don’tSupportability – Nordics and Middle East have made the best progress 4.8 5 5.2 5.4 5.6 5.8 • The Oracle perspective – properly engineered solutions can significantly aid improved sustainability performance 11
Cycle II Insights IV – Consolidation, Virtualization andBusiness 50 40 30 Cycle 1 (%) 20 Cycle 2 (%) 10 0 Doing "nothing" Using < 30% Virtualized < 10% virtualized Over 50% on consolidation virtualization to Utilization consolidate• The Oracle Perspective – Some progress has been made, but there are still clear, quick-win opportunities for technology innovation to support business performance 12
Oracle NGD Index Cycle II – Country Insights• The Middle East has made (proportionately) most progress – Good improvement from Cycle I in all areas, particularly Virtualization, Consolidation and Sustainability – Supporting business growth still a main reason for investment• Nordics have made progress in many areas – Systems Management, Virtualization, Sustainability, Server utilization• Some evidence of stagnation (e.g. DCH, Benelux, Iberia) – Only small increase in overall Index score – Small progress made in some, but not all, areas• France had already seen the need for new data centres• New arrivals, Russia and Ireland, have much room for improvement 13
The Oracle View• Encouraged to see overall progress even in the short time since Cycle I – Business climate means technology’s possible contribution is even greater – But business needs to move fast to gain benefit from Big Data• Organizations should be taking better advantage of technology to improve use of current IT and position for the future – Good to see that sustainability now more recognised as an important issue – Virtualization, consolidation are prime areas for priority consideration• Also, organizations should be considering how to adapt themselves – Approaches to procurement, engineering, testing• Oracle’s strategy is to help organizations address these issues – Be best-of-breed at every layer of the stack – from applications to disk – Bring these elements together into a vertically integrated system such as our Exa offerings – Build up our industry-specific capabilities – Deliver these any way the customer wants – on premise, on demand, etc. 14
Oracle’s Credentials• Between 2006 and 2010, Oracle more than doubled its employee numbers but still managed to reduce its datacentres from more than 40 to two – This has led to a US$1 billion bottom line saving• This was achieved against a backdrop of acquiring multiple companies• Oracle has taken advantage of its own technology to increase server utilisation from seven percent to 70 percent 15
Oracle IT: Oracle Development Self-Service Private Cloud Implementation Overview:Scope/Scale - Over 2600 physical servers with over 6000 Virtual Servers used by over 3500 developersActivations – Processing over 70 jobs per day, this translates into over 45,000 jobs processed supporting production and test requirements. Utilization – Rates on these servers averages 80% 7 days a week and can reach 90% during peak times. Results/Benefits: Increase in development productivity Self-Service system for creation of development environments Cleaner code lines as environments are created quickly for more thorough testing/validation. Physical Server/Environmental Reduction by 75% Server/Apps Deployment reduced by 80% 16
Examples of Customer Success • British Board of Film Classification Digitizes 200,000 VHS Videos and 60,000 DVDs for Future Preservation (UK) (Oracle StorageTek) • Immonet GmbH Uses New Data Warehouse to Consolidate Real Estate Data, capable of handling a 350% increase in data (Oracle Exadata) • TIMWE Ensures Competitive Edge with Real-Time Analysis of Thousands of Daily Transactions (Portugal) (Oracle Exadata) • Tušmobil Captures More Than 8% Market Share In Less Than Two Years with Unique Mobile Packages (Slovenia) (SPARC Servers) • Brabant Water N.V. Gains Business Continuity to Support Critical Water Service Invoicing System (The Netherlands) (SPARC Solaris) 17
Virtualize Applications with SPARC T4 Servers "We have tested the new SPARC T4-4 system against our current Siebel infrastructure on the SPARC M5000 and the performance of the T4 system was very positive. The moving of the applications from the current infrastructure to the new T4-4 was flawless with no need for a porting plan or specific tuning. Using virtualization with Solaris Zones in the T4-4 system against a non virtualized Solaris environment in M5000—this was most impressive. Performance has doubled from our current servers. We think the SPARC T4-4 is the ideal platform for virtualizing and consolidating Siebel and other applications, from the web server down to the database server tier.‖ Umberto Angelucci, CTO, SKY Italia ―Our beta testing of Oracle’s SPARC T4 server demonstrated impressive performance and an architecture that reduced complexity and operating costs. This excellent performance on our mixed throughput needs, combined with the SPARC T4’s attractive software licensing terms, led to our decision to use the SPARC T4 system for our next generation archiving system.‖ Mr. Hans-Juergen Wolf, Archive Manager ―Because we develop content management systems for many German federal and local governments, it is critical that Materna base its solutions on the most scalable and high performance technology. We are beta testing Oracle’s SPARC T4-1B blades with our "Government Site Builder" application and seeing throughput and single thread performance improvements of 5-7 times in comparison to the previous generation SPARC blades.‖ Dr. Georg Kösters, Head of Business Process Management - Business Division Applications, MATERNA GmbH 18 18
SPARC T4 Servers and SuperCluster ―As a leading global financial institution, ING needs servers that provide the highest levels of reliability and performance to support our mission-critical business applications. Our testing of the ING application stack on Oracles SPARC T4 servers running Oracle Solaris proves Oracle’s Sun servers deliver quality, predictability and complete backwards compatibility while greatly enhancing system performance.” Frank Schots, Senior UNIX Systems Engineer ―SAS® Business Analytics enables faster, more accurate data-driven decisions. Whether it is risk analysis, fraud detection or complex optimization mathematics, implementing SAS BusinessAnalytics on SPARC T4 solves critical business issues in transformational ways. SPARC has long been a proven platform for SAS applications; T4 delivers SPARC performance at its best.‖ Paul Kent, SAS Vice President of Platform Research and Development. ―We chose to test Oracle SPARC SuperCluster for performance improvement of our current datawarehouse system and consolidation of sparse Oracle databases through implementation of RAC features. Our heaviest operation is datawarehouse loading and with SPARC SuperCluster we are expecting a huge improvement.‖ Aldo Chiaradia, CIO Benetton Group S.p.A. 19 19
Summary• Organizations must ready themselves to acquire, organise, analyse and act upon huge data volumes• Data, ―the new raw material of the 21 st century‖ is becoming a focus area for the boardroom• Sustainability is back on the agenda – the countries making most progress here also have best Index performance• Consolidation and Virtualization are still important ways for IT to support the business• Progress is being made – but there is still room for improvement• Oracle has a unique track record and capabilities to help organizations worldwide 20