The 2012 EMC Corporation IT Performance Report

2012 EMC Corporation IT Performance Report


Out of the Data center and Into the Light

EMC IT supports more than 60,000 Rather than modestly recalibrating or living
with a more traditional approach to IT, over the
last eight years, EMC’s IT organization has re-
users; across 400 offices; in more than 80 envisioned and transformed how we do business.
• We tore down the silos
countries; spanning four data centers; with • Aggressively tiered and consolidated our infrastructure

9,000 OS images and 92% of all servers • Virtualized our servers and applications

• Embraced cloud computing to unleash unparalleled performance and

virtualized; hosting 500 applications and utilization throughout our data centers

• Deployed one of the largest SAP solutions in the industry, replacing and
modernizing EMC’s business architecture
13 petabytes (PB) of data. • Saved and avoided spending more than $157M (in Capex) that we
could reinvest and introduced financial transparency

• We introduced a more user-friendly IT storefront and service catalog
• And, we shared our experiences and best practices with literally thou-
sands of EMC customers and partners

Yet, our transformation has only just begun. IT is no longer relegated to
the basement, back offices, or even the data center. We are leveraging
the cloud foundation we built to broker services with a rich user experi-
ence, while driving agility and time-to-value for the business and its go-
to-market opportunities.

This is a great time to hand over the reins to industry-veteran • evelop and integrate scale-out applications across private, public,
D
Vic Bhagat, our new Chief Information Officer. In 2013, Vic and and SaaS applications, as well as pursue new business application
the EMC IT team will: paradigms built on predictive analytics.

• xploit the elasticity and flexibility of the cloud to seamlessly provision,
E • Grow our existing internal and external social enterprise, while improving
manage, and monitor our pools of information and applications across our social listening, text analytics, and Big Data capabilities to better
our private and public clouds. understand employee/customer/partner sentiment and to pursue
actionable social models.
• biquitously orchestrate the rapid provisioning of infrastructure and
U
deployment of applications—from development to test to production. While it is nowhere near comprehensive, this report sheds some light
on our transformation to date. Throughout the year, we will continue to
• mbrace a joint IT and business delivery model to drive agility and
E
provide you with more information on our strategy and lessons learned
rapidly collaborate on proof-of-concepts.
along the way via our EMC® IT Proven™ program. We encourage you to
• nleash the potential of Big Data to evolve to a predictive enterprise in
U visit and let us know what you think.
which the business and IT make realtime or even preemptive business
Sanjay Mirchandani
decisions.
EMC’s Executive Vice President and Outgoing Chief Information Officer
• xtend our mobile infrastructure and application development initiatives
E
to deliver a better, more secure and pervasive mobile environment and
user experience.


Flying Through The Clouds

$157 MILLION $66 MILLION 92%
IN CAPITAL EXPENSE AVOIDANCE IN OPERATIONAL EXPENSE SAVINGS VIRTUALIZED

In 2004, long before “cloud” became a rates for storage and servers and dramatically improved efficiency and
power consumption to truly optimize our data centers. Once we tackled
ubiquitous rallying cry for IT organizations,
this, we focused on improving quality of service and time-to-value for
EMC IT began its journey to the cloud—though our business units and employees by extending virtualization to existing
it would be disingenuous to imply we knew it at business-owned, mission-critical applications, including ERP, email,
that time. What began as “doing more with less” CRM, and decision support/business intelligence.

and squeezing additional life out of our current Rather than building complex, custom solutions for every need
resources became an opportunity to question throughout the company, EMC IT began automating, simplifying, and
packaging competitive IT services with transparent prices and service
the way IT was built, managed, and consumed
levels. Now, services can be more readily and dynamically consumed
thanks to virtualization, cloud computing, and based on need, use, and budget and easily ordered through our service
IT as a Service (ITaaS). catalog. This cloud delivery model enables EMC’s IT organization to
embrace a broader spectrum of choice, with its strategic technology and
Initially, our goal was to reduce IT costs associated with the infrastructure
application platforms, and to proactively consult with our business units
by consolidating and virtualizing the IT infrastructure, including servers,
to support their objectives.
storage, networks, and desktops. This resulted in higher utilization
For more information, read the ESG Lab Audit: “EMC IT: Leading the Transformation.”

EMC’s IT organization decreased total IT spend
as percent of revenue by 18% and infrastructure
spend as percent of revenue by 28%.

2012 EMC CORPORATION IT PERFORMANCE REPORT

Open for Business: IT As A Service

As an IT shop—we’re not used to bringing IT
products to market prematurely—we like to
work on them and make sure they are nearly
done before sharing them. However, in thinking
like a startup, we need to get services to market
sooner; to capture user feedback on service
capabilities; and to evolve and fine-tune the
services. This is a dynamic new approach for IT.
Behind the scenes, we built the necessary cloud infrastructure and
are automating, simplifying, and introducing services that meet
employees’ price and service-level requirements. Last year, we
introduced a few services and began wrestling with how we bring these
services to market for our fellow employees. In October, we opened
infinIT—our new self-service, online storefront for employees to order
IT services with transparent prices and service levels, including:

• Virtual Servers
• Computers and Accessories
• Desktop Video
• Virtual Desktops
• Web Conferencing
• Xpress Database

After several weeks of testing the portal and the services and
capabilities it offers, the portal was formally launched to the broader
EMC enterprise in January 2013.
For more information, read, “An IT as a Service Handbook: 10 Key Steps on the Journey to
ITaaS.”


self-funding your it transformation

Within this new IT as a Service operational Although it is only one component of ITaaS, financial transparency is a
crucial step for organizations to elevate the importance of planning and
paradigm, IT leaves behind the inflexible and labor-
delivering services with efficiency and a balance between demand and
intensive provisioning models of the past to deliver supply. It also provides an opportunity for IT, finance, and the business
value to the business through on-demand, self- to have fact-based conversations to improve delivery, consumption, and
service access to IT assets that advance business more predictive growth for planning purposes.
initiatives with speed and agility. EMC IT implemented chargeback in 2012 and is currently at 89 percent
chargeback en route to 100 percent.
Financial transparency forces IT organizations to rethink how they
deliver value to the business by getting them to consider how to bundle, For more information, read our, “IT as a Service: Guiding Principles for Achieving Financial
benchmark, market, price, and deliver their services in a way that better Transparency” white paper.

meets the end-users’ needs. When IT has to compete with outside service
providers, its mindset shifts to driving efficiency, increasing business
agility, and exceeding service levels.

On the user side, financial transparency gives business units new insight
into service costs and uses that information to help them optimize the
efficiency and effectiveness of their IT spend. This requires the CIO and
his or her team to build a set of financially transparent processes that
capture the true usage and costs to “show back” or “chargeback” each
business unit for the IT services consumed. In turn, the business units
have IT consumption clarity to ensure their IT spending is aligned with
their business goals.


propelling EMC’s Line-of-Business Systems

Over the last decade, EMC has acquired more
than 50 companies and added hundreds of
products and services since deploying the
previous ERP system in 2001. Not only was the
system rapidly approaching capacity, but it was
also so extensively customized that it could no
Core PROPEL Principles
longer be upgraded. Consequently, any issues
that arose with the system could impact the • dopted industry best practices, solutions, and
A
company’s ability to process and fulfill orders or processes rather than application customization

to recognize revenue. • everaged a highly-configurable and “vanilla”
L
out-of–the-box ERP solution to more efficiently
In 2010, EMC IT began investing heavily and working alongside its
scale for the future
business partners to replace our decade-old ERP system with SAP’s next-
generation line-of-business systems. Code-named PROPEL, this project • uilt an SOA-based “Application Integration
B
was launched on-time and within budget on a 100 percent virtualized Cloud (AIC)” interface for EMC’s 50+ legacy
platform in July 2012. It involved deploying more than 20 SAP modules, applications, as well as a “B to B” hub for third-
including core ERP, SRM, PDM, and BI solutions; retiring 65 legacy party suppliers, partners, and SAP
applications; and converting more than 300 million records containing
quality history and customer data.

Additionally, through our Application Integration Cloud, we consolidated
450+ complex, point-to-point interfaces with detailed algorithms and
logic into 120 reusable components. By leveraging this lightweight
integration architecture, we are now able to rapidly integrate the legacy
systems of acquisitions and quickly connect to new suppliers and
contract manufacturers sending “realtime” signals to ensure better
inventory management and customer fulfillment.


EMC’s State-of-the-Art Cloud Data Center

While reducing operational costs and complexity, EMC’s Durham Cloud Data Center was designed as a Tier III data
center with N+1 redundancy and redundant pathways for 99.982
increasing IT agility, and preparing for its
percent availability. In addition, since breaking ground in 2010, EMC’s
dynamic future in the cloud, EMC IT also took Facilities organization embraced a number of efficiency, modularity,
the opportunity to build a new, state-of-the-art, and sustainability decisions to reduce the environmental impact of
100 percent virtual cloud data center in Durham, the facility including a rooftop water collection system; free air cooling
for much of the year; cold aisle containment; and flywheel technology
North Carolina.
that eliminates the need for batteries in uninterruptible power supply
Located in the Company’s seventh global EMC Center of Excellence (UPS) systems. Today, the facility is on track for meeting a stringent 1.3
(COE), EMC’s Durham Cloud Data Center furthers our journey toward power usage effectiveness (PUE) objective, and recently obtained LEED
pervasive cloud computing and virtualization and provides the (Leadership in Energy and Environmental Design) Gold certification.
scalable foundation for delivering IT as a Service (ITaaS) to EMC’s For more information, read our, “EMC Durham Cloud Data Center Powering EMC IT’s Cloud
more than 60,000 internal users worldwide. Not only does it run Vision” white paper.
EMC’s mission-critical applications, but it also serves as a true
showcase for the strategy and value proposition of EMC, VCE, and
VMware solutions in mission-critical environments.

To maximize return on its multi-year, multimillion-dollar investment,
EMC IT rationalized, consolidated, and virtualized applications and
infrastructure to provide the flexibility, capacity, and energy to meet its
requirements over the next 20 years. For instance, all applications will
run on a single version of the VMware vSphere data center operating
system within an x86 enterprise hosting architecture. Approximately
350 applications and six petabytes of data were migrated in a series of
database grid-centered moves in 2012.


Cultivating the 4V’s of Big Data

Volume
Variety
Velocity
Value

Big Data is revolutionizing not only how companies service leverages data from multiple sources on top of a Greenplum®
Unified Analytics Platform and provides easy-to-use query tools and
do business, but also how IT and security
consulting services to harness business value through analytics. It also
organizations do business. supports intelligent business decisions and accelerates time-to-market,
IT is the custodian of business information and has to be a big enabler in and enables our users to spend less time managing the technology and
providing the tools and techniques for the business to gain insights into more time accessing the information.
this information. Ultimately, as an IT and security organization, our goal In addition, on the core IT side, we can now capture, ingest, and analyze
is to have insight into potential performance, failure, capacity, access logs and other metrics from our network, server, storage, virtual, and
issues, and even advance warning, so we can take appropriate measures application environments. With the appropriate tools, our employees
to minimize downtime and mitigate security threats. and data scientists are able to visualize data, look for data insights and
As part of our IT as a Service initiative, EMC IT has created a Business pattern-matching opportunities; and run more helpful, realtime reports
Analytics as a Service offering to enable our employees to unlock for the business. We can also compare findings to our prior experience
the value of their information by reliably, securely, and seamlessly and determine the most effective recourse.
accessing and analyzing their data for patterns and profiles. Supported, From a security perspective, we use the technology to monitor behavior
maintained, and secured by EMC IT, this Big Data business analytics and look for patterns related to user authentication; malware beaconing;
and other threats that may or may not have signatures. By increasing the
number of sensors in our environment and running the data through our
Big Data platform, we can analyze and detect patterns faster and be more
adaptive to the shifting threat landscape. This enables us to not only
protect the integrity of the enterprise environment, but also to be smart
about enabling better user access through analytics.

While our efforts to date have demonstrated the power of Big Data,
it is only the beginning of our journey to leverage the benefits of Big
Data analytics. With the expertise of data scientists, we will unlock the
predictive value of our data to hone our business strategy for the future.
For more information, read our, “EMC Accelerates Journey to Big Data with Business Analytics
as a Service” white paper.


Getting Out In Front Of The Attackers

One-size-fits-all security is long gone. events in real time. This technology in combination with process
improvement and a broader array of public and commercial threat
Employees are untethered, mobile, and social, and applications are in information allows us to process and analyze the exploding volumes of
the cloud, so we must continuously stretch to enable an ever agile and IT log and security event data. This ability to perform analytics across a
growing business. At the same time we must continue to defend against vast data set enables us to be more adaptive by tracking normal usage
a broad range of attackers wishing to gain access to our sensitive data or patterns and gain more insight into emerging security issues by being
disrupt our operations. We need to be more agile and enabling while still able to quickly run and analyze data. This is essential as we move into
defending EMC. So, where did we start? the world where prevention is a failed strategy and rapid detection and
response becomes critical.
If you want to be agile and have the flexibility to move things throughout
the cloud while minimizing risk, you need to understand what is Finally, because our employees are the new perimeter with the explosion
important in your environment; who owns it and where it resides; of the consumer cloud, mobility, and choice computing, we laid a
and what controls it should have. To accomplish this, EMC’s Global foundation that will enable more seamless passage between wired,
Security Organization (GSO) performed a comprehensive enterprise wireless, and mobile computing. That foundation includes mobile device
risk assessment and partnered with the business to develop a solid management and network access control technologies, in combination
Governance, Risk, and Compliance (GRC) framework leveraging the RSA® with mobile enablement of our new application deployments to deliver
eGRC suite. After all, security decisions are not black and white, so we a better, more secure and pervasive mobile user experience to our
needed the businesses’ input on our approach and policies, as well as enterprise applications. We also continue to foster EMC FirstLine, our
their trust and support, to be successful. cyber security awareness program, to continue to raise awareness of risk,
available controls, and changes in the threat environment. This program
We also dramatically enhanced our visibility through our state-of-the-art
will increasingly focus on continuous dialog and education to provide
incident response and monitoring technologies at our Critical Incident
actionable and timely information to our human perimeter, the first and
Response Center (CIRC). To accomplish this, we combined powerful
best line-of-defense.
security event and incident management and network security solutions
(RSA enVision® and NetWitness® respectively) to collect and correlate


Cloud Applications, Pervasive
Mobility and Social Enterprise

As IT professionals, we always balance user
productivity, social media, mobile devices,
and internal and external cloud applications
with potential risk and corporate compliance
requirements to protect our employees,
customers, and shareholders.
We made tremendous strides in 2012. We introduced Apple Mac
computers and began supporting iOS and Android devices. Recognizing
our employees are always on the go, we built mobile apps that are
available from our EMC AppStore to help them access their files, look up
a colleague, or even find a conference room from their mobile device.
And, we introduced chat capabilities for our IT help desk and community
support on our EMC|ONE social media platform to more conveniently help
our employees address any issues that arise.

In 2013, we are focused on furthering cloud applications, pervasive
mobility, and the social enterprise. Leveraging our elastic infrastructure
and Application Integration Cloud, we are in the process of developing
scale-out applications and integrated realtime applications across
private cloud, public cloud, and SaaS applications. We are also
embracing pervasive mobility by extending our mobile infrastructure
and application development initiatives to deliver a better, more secure
mobile user experience across all enterprise applications. In addition,
we will grow our existing internal (EMC|ONE) and external (ECN and EDN)
communities, and leverage social listening, text analytics, and Big Data
for employee/customer/partner sentiment and to pursue actionable
Stay up to date on our progress by visiting our EMC IT blog. social models—social CRM and BPM.


EMC’s First and Best Customer

EMC IT is fortunate to have the best technologies
in the world at its fingertips. Recognizing that
EMC customers share similar challenges to our
own and would benefit from our practitioner’s
insight, EMC IT created the IT Proven program to
test, chronicle, and share our experiences and
best practices with customers.
Through EMC IT Proven, the IT organization deploys and tests products
under development within the company’s internal IT environment and
provides the engineering organization with feedback to release even
better products for our customers. The TestIT program allows our product
developers to observe before general availability, how EMC’s pre-
generally-available products would run in a live data center. In addition,
our IT organization is able to touch, feel, and provide our engineering
organization with feedback before the product is generally available.

The ShowIT program helps EMC and our customers accelerate the
benefits from EMC solutions within their IT environments by sharing real-
life use cases and best practices. The program provides our customers
with additional proficiency with today’s most innovative applications
and data center technologies, so that they can effectively address their
most critical IT priorities.

In 2012, EMC IT had more than 3,000 IT Proven conversations with
customers around the world; led hundreds of data center tours; and
published numerous white papers and best practices as resources for
our customers.
For more information, vist the EMC IT Proven site at www.emc.com/emcitproven.

INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH EMC PRODUCTS.
For updates on EMC IT’s progress throughout NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL
PROPERTY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN EMC’S TERMS
the year, please visit: AND CONDITIONS OF SALE FOR SUCH PRODUCTS, EMC ASSUMES NO LIABILITY WHATSOEVER
AND EMC DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE OF
EMC PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR
www.emc.com/emcitproven PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR OTHER
INTELLECTUAL PROPERTY RIGHT.
itblog.emc.com
This document contains “forward-looking statements” as defined under the Federal
Securities Laws. Actual results could differ materially from those projected in the forward-
looking statements as a result of certain risk factors, including but not limited to: (i) adverse
changes in general economic or market conditions; (ii) delays or reductions in information
technology spending; (iii) our ability to protect our proprietary technology; (iv) risks associated
with managing the growth of our business, including risks associated with acquisitions
and investments and the challenges and costs of integration, restructuring and achieving
anticipated synergies; (v) fluctuations in VMware, Inc.’s operating results and risks associated
with trading of VMware stock; (vi) competitive factors, including but not limited to pricing
pressures and new product introductions; (vii) the relative and varying rates of product price
and component cost declines and the volume and mixture of product and services revenues;
(viii) component and product quality and availability; (ix) the transition to new products, the
uncertainty of customer acceptance of new product offerings and rapid technological and
market change; (x) insufficient, excess or obsolete inventory; (xi) war or acts of terrorism; (xii)
the ability to attract and retain highly qualified employees; (xiii) fluctuating currency exchange
rates; (xiv) the impact of any expense reduction initiatives; and (xv) other one-time events and
other important factors disclosed previously and from time to time in EMC’s filings with the U.S.
Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-
looking statements after the date of this release.
The results discussed in this document were based on EMC’s own approach, data center
environment and other IT factors. Any change to any of those factors may cause the results
to vary. You should consult other information and performance tests to assist you in fully
evaluating your contemplated purchases, including the performance of that product when
combined with other products.

EMC2, EMC, the EMC logo, RSA, Greenplum, Vblock, enVision, NetWitness, and IT Proven are registered trademarks or trademarks of EMC Corporation in the United States and other countries. All other trademarks used herein are the property of their respective owners.
© Copyright 2013 EMC Corporation. All rights reserved. Published in the USA. 03/13 IT Annual Report 176920

The 2012 EMC Corporation IT Performance Report

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