Data Center and System Optimization

OADP for IT Optimization
Stage II: Data Center and Systems
Optimization

IT Optimization (ITO): Stage II
Assumes Stage I prerequisites are complete

ITO
Stage I: Portfolio Rationalization
Architecture
A hit t
Vision

Stage II: Data Center &
System Optimization
Strategic Business &
ment
ITO Alignm

Stage III: Shared
Services/
Cloud Computing
Cl d C ti

Copyright ©2009 Oracle Corporation. All rights reserved. 2

Stage II: Prerequites and Inputs

• Prerequisites
• ITO Architecture Vision Completed
• Portfolio Rationalization completed
• At least for the Application or Technology capabilities within scope.
• This means Standard applications and technologies and interfaces have been
selected.
selected
• This also means an integration platform in place and MDM required for handling
information source/sinks needed for system migration/elimination
• Inputs
• Catalog of Business Capabilities including (for each capability)
Capabilities,
• Value to the Business Strategy/Goals (Hi or Low)
• QoS requirements (Availability and performance)
• Scalability requirements (xx growth within yy years)
• M t i of Business Capabilities / O
Matrix f B i C biliti Organizational units (O
i ti l it (Operational M d l)
ti l Model)
• Matrix of Business Capabilities / Supporting Application software
• Matrix of Applications / Supporting Technology capabilities/Assets
• Catalog of Standardized Portfolio(Interfaces and Assets)


Architecture Vision


Data Center and Systems Optimization
• Principles:
• Abstraction, Clustering, IT as a Service
Consolidation, Automation
• Implications:
• Flexibility Scalability
Flexibility,
• Increased Utilization
Optimized IT
• Cost Reduction and Efficiency Integration Layer

Service Group A Service Group B Service Group C Shared Services
Application Grid Application Grid Application Grid /Cloud
/Cl d
Data Grid Data Grid Data Grid
Computing
Security Layer

Transitional
Virtualized and
Pt. to Pt. Integrations
Consolidated
SFAProduct
SFA-Product
product ERP SCM
ERP-
productMES- DB
product Dev
DB-
Stage
Inv
LMS MGMT
B2B
B2B-
Platform and
Traditional SFA Stage
SFA-
Test
Product ERP-
Prod
Stage
MES- MES-
Stage Prod
B2B- Stage
Dev
Services
SFAProduct product ERP SCM productMES- DB LMSInv
DB-
Product ERP- product Dev Stage
MGMT
1
Client
Stage
FBT PAY G
NTS Security Security Security Security
TRDS
Customs NTS A/c

RRE
IPS
Penalty

Refunds
Data…….

RBA
Def
Rationalized
Integrate d A/C
1

Excise Payments

IT
CCD Compliance
Staff
CR EC I ADD AW A ELS
Staff
Business Phone
DDDR TASS
PKI CDCC
CWMS GC I Bus. Intel

IVR WOC
Ref aterial
m

Portfolio
BOA
Remote TAX
Client BANK Staff Staff AG ENTS Call Centres
B EP

Architectural
Complexity

Copyright ©2009 Oracle Corporation. All rights reserved.

Data Center and System Optimization
Guiding Principles
•Resource pools key to flexibility and Quality of Service(QoS)
Pooled •Required across multiple layers
•Drastically improved HW utilization. Flexibility and productivity
utilization
Resources
R •Desktop virtualization improves IT productivity and reduces risk

•Amortizes IT costs across larger part of the business
Consolidation • Both requires and subsidizes higher quality people process and
technology
people,

Enterprise
p •Reduces complexity and risk
•Improves, standardizes and simplifies regulatory compliance
Improves
Security •Requires higher quality people, process and technology

Enterprise •Drives down costs, improves QoS and IT productivity
•Enforces consistency and accountablity
Management • Tailored to business needs, avoid overkill


Clustering Across Tiers
User Desktops

Portals & Web Servers g y
• Business Demands Agility
– Deliver new resources quickly
Application Servers – Adjust as requirements change
Middleware
Middl • 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


Consolidation At All Levels

Data Centers Software

Servers Storage


Enterprise Security Components
Infrastructure Security
•Hardware Accelerated Encryption
•Secure Key Management and Storage
•Strong Workload Isolation
•Secure Service Delivery Platforms

Database Security
•Encryption and Masking
•Privileged User Controls
•Multi-Factor Authorization
•Activity Monitoring and Audit
•Secure Configuration

Identity Management
Information •User and Role Management
Infrastructure •Entitlements Management
•Risk-Based Access Control
Databases •Virtual Directories

Applications
Information Rights
Content Management
•Centralized document access control
•Digital shredding
•Document Activity Monitoring and Audit


Management of Clustered Resources
Integrated across stack

• Abstracts system management into one
virtualized console
• Virtualize system images for rapid
deployment
• Management of virtualized servers
• Deploy standard virtual machine images
quickly and easily
• Expedited provisioning and patching
• Manage Quality of Service from end-user
perspective
• Automated diagnostics and tuning
g g
• Real-time and predictive monitoring
• Comprehensive testing and validation


Aligning Automation with Standardized
Processes – ITIL • Service Catalog Management
• Service Level Management
• Event Management
• Supplier Management
• Incident Management
• Capacity Management
• Request F lfillment
Req est Fulfillment
• Availability Management
• Problem Management
• IT Service Continuity
• Access Management Management
• Information Security
Management

• Transition Planning
and Support
• Change Management
• Service Asset and
• Service Strategy Configuration
• Service Portfolio • Release and Deployment
Management • Service Validation and
• Financial Management Testing
• Demand Management • Evaluation
• Knowledge Management
* Oracle Enterprise Manager Capabilities


IT Processes Maturity
Move Up the Maturity Model
2% of
companies
10% of
companies
45% of
companies
42% of
companies
2% of
companies


Deliverables
Architecture Vision

Future State
IT Maturity Guiding Scope and entry
Business
B i
Assessment Principles points
Architecture
• Drives the • By layers and • Guides the future • Scoping and
requirements organization stages sequence of next
• Provides the • Identifies the stages of IT
g
justification.. Or major gaps Optimization
not


Current State


Common Problems with Data Centers…
Basis of Assessment

Monolithic Applications
Bus
Varying quality of service
Peer-to-peer integration
Hardwired business processes Data Sales ERP Custom
Warehouse Application
pp Application Application
Application specific data
Multiple software technologies

Dedicated Infrastructure
Multiple hardware technologies Enterprise Mainframe
Server Cluster Big Server
Configured for peak loads Server
Limited scalability
Availability < 99.x%
A il bilit 99 %
Many administration tools NAS/SAN Database DAS File
Huge Energy Consumption


Capture Baseline
Current Capabilities

Application / •Type, Scale, Utilization
•Development, Test, Production
p , ,
Technology
T h l •QoS (Performance +Availability)

• Skill levels, Certifications
People • Si of organization
Size f i ti

• Effectiveness (Measured QoS vs Required)
( q )
Processes • Business Alignment

Operational • Yearly license Support Costs
• IT operations costs (FTE)
Costs


Maturity Models
Use as appropriate to assess Current State

• Clustering/Grid – see following slides
g g
• Enterprise Security – see following slides
• Enterprise Management – see following slides
• SOA (optional)


Stages of Grid Maturity
Level 5
Level 4
L l
Level 3
Utility
Level 2 Strategic
Enterprise
Level 1
Tactical
T ti l

Learning

Cost effective
Repeatable Real time
scaling and
Strategic Rollout of a Shared Automated configuration of
HA for new Infrastructure
Goals projects (TCO
standard Virtual IT services
platform Infrastructure
focus)
Release
Combined use of
C bi d f products and
RAC and services
Roll out RAC Enterprise Mgr immediately
Tactical Clusters for Maximize server to define policies
Plans 1 Application per utilization and that are self
RAC Cluster Applications that
have specific specify SLAs that managing Value based
business pains can be managed charging

New & existing RAC for Mixed Grid for Dynamic Grid for Utility
Examples New Applications applications Workloads Workload Mgt Computing


Security Maturity Model
Process & Technology

Cost, Effort, Risk
high
g
1 Reactive

2 Tactical
 Ad hoc data
and user
management
3 Strategic
 Centralized
view of
4 Enterprise
E t i
 Manual,
identity;  User lifecycle
labor-
intensive single management
 Secure
information
5 Transparent
audit source of  Standardized sharing
truth data  Sustainable,
 Inefficiencies  Real-time transparent
, overhead,  Critical data protection auditing, security
redundancy protections framework
alerting, and practices
enforced corrections

Agility
low high
hi h

Ad hoc Standardization Sustainable Security as Services Enable
Attestation a Service Transformation

Business Drivers: Efficiency, Cost Savings, Architecture Rationalization


Enterprise Management Best Practices
Move Up the Maturity Model
2% of
companies
10% of
companies
45% of
companies
42% of
companies
2% of
companies


Future State


Guidance and Reference Models
CLUSTERING(GRID)


Grid – Part of a Larger Trend

Service Oriented
Architecture
Grid
Infrastructure
ERP
CRM

Worldwide SCM
Custom
Web

Virtualized
Applications
Virtualized
Vi t li d
Infrastructure
Virtualized
Information

Enterprise Grid Capabilities
Service Oriented
• Resource Pooling Applications
• Resource Sharing
• Workload Mgmt
g
• Provisioning
• Central Monitoring Middleware
• Automated Mgmt Clusters

Database
Clusters

Virtualized
Storage


Drivers for Grid

• Continuous business change
g
• 24x7 global operations
• Data explosion & Compliance
• Keep more data online for longer
• Provide access for BI, collaboration, regulatory reporting
• Increased user populations
• Intra-enterprise collaborative working
• Collaboration with partners & suppliers
• O li ( b b
Online (web-based) customer/consumer servcies
d) t / i
• Unpredictable workloads


Customer Adoption of Grid

• 63% say moving to Real-time Infrastructure (Grid) an
imperative
• Drivers
• Increased agility (32%)
• Increased QoS (30%)
• Reduced costs (17%) Source: Gartner 2006

•Grid Computing delivers:
•Easy sharing and re-use of resources across entire grid
•Predictable and dependable QoS across entire stack for all
applications and data
•Increased utilization, reduced excess capacity, reduced
administrative burden


What Grid Delivers

Traditional Grid
Dedicated Resources  Pooled Resources
Various HW Brands  Replicated Standard
Numerous SW Configs  Standard SW Configs
Slow to Provision
Sl P i i  Provision S
Shared Pool
Failover Added Selectively  High Availability Built-in
L t of Unused Capacity  C
Lots f U dC it Capacity can b Re-assigned
it be R i d

Many Points of Mgmt  Centrally Managed


Grid/Virtualization Benefits
Tangible Intangible
• Increased efficient use of • Workloads can be
ed
Quantifie existing resources reallocated easily to avoid
• Delay new HW purchases downtime
d ti
• Lower server HW and • IT assets can be
support costs reallocated as needed
• Virtual deployment time without physically moving
reduces labor cost. them.
• Fewer locations enables
• Delay Data Center
faster reaction to problems
ified

expansion
• Fewer physical assets
Non Quanti

• Chargeback can be based
enables more-mature
on percentage of assets
availability management
used
• Disaster recovery can be
simplified.
simplified
N


CONSOLIDATION


Consolidation: Combining Workloads
Improve System Utilization
p y


Server Refresh and Consolidation
Change Deployment Topology

• Keep different workloads separate
• Mix like workloads

App 1 App 2 App 3

Database Database Database
Data centric
Data-centric

Applications Applications Applications Application-centric

Edge/Web Edge/Web Edge/Web Web-centric

App 1 App 2 App 3


Server Requirements for Consolidation

• Scalable and high capacity servers
• Provide compute capacity for many applications
• Scalable operating system
• Scaling for capacity
• High RAS
• Downtime not an option
• “Virtualization” technologies
g
• To “stack” many applications
• Legacy application support
•UUpgradeable
d bl


Benefits of Server Consolidation

• Improved server utilization
• Lower acquisition costs
• Reduced service costs
• Reduced power and coo g costs
educed po e a d cooling
• Improved capacity and response time
• Newer and faster processors, interconnects, and I/O
• Smaller foot print
• Reduced data center infrastructure costs
• Increased flexibility
• Faster time to deployment of new applications


Next Generation of Clustering and Consolidation
Pre-integrated at the Factory
g y
Example: Exadata Database Machine
Flexible Capacity
• Grid architecture for scale-out of database and storage servers
• Smart Scan for offloading query processing to the storage layer
• Smart Flash Cache storage for real-time random I/O
• Data compression tuned for OLTP, Warehousing and Archival data
• I fi ib d networking t support massive data transfers
Infiniband t ki to t i d t t f

Resource Sharing
• ASM (Automatic Storage Management) shares Exadata storage across
all databases
• RAC (Real Application Clusters) shares large DBs across many nodes
• IORM (I/O Resource Management) allocates I/O bandwidth based on
database or application priorities
• Instance Caging shares CPU for multiple databases within a node

All the Power of the Oracle Database
• Real Application Clusters, Backup/Recovery, Replication, Security,
Partitioning, Large Objects, Enterprise Manager…


Pre-integrated at the Factory
Example: Exalogic Elastic Cloud

Extreme Java Mission Critical Integrated
I t t d
Performance Cloud System
Improved Operational Cost
p Time to Deploy
up to Reduced Reduced

15-
15-35% 95%
10X
© 2010 Oracle Corporation - Confidential

Oracle’s Elastic Cloud Foundation
Application Grid, OS, Enterprise Manager and hardware
pp , , p g

WebLogic Server Coherence
Ent
terprise M

JRockit and HotSpot

Exalogic Elastic Cloud Software
Manager

Oracle Enterprise Linux or Solaris

Exalogic Elastic Cloud Hardware
EL X2-2

© 2010 Oracle Corporation - Confidential

How Does Your IT Impact Your Datacenter?

• Costs, Demand and Capacity are Colliding...
• Innovation in technology & businesses demands for compute capacity
• Power and cooling costs surging insufficient capacity
surging,
• Limits to existing floor space and new real estate

Watts per 800
 Demand Square Foot  Power
 Users  Costs
 Services  Space
 Access  Heat

120
40

2003 2005 Next
Generation
Data Center


Space, Power, Cooling and Connectivity
At least one of these factors limits datacenters

Power Space
p

Cooli
ng
Connectivity Cooling


Consolidation Benefits
Tangible Intangible
• Increase resource • Fewer physical locations
utilization enables delay of enables reaction to problems
new HW purchases • Fewer physical assets
uantified

• Lower server HW and enables more-mature
support costs availability management;
• Eliminate licensing/support • Disaster recovery can be
Qu

fees for redundant
f f d d t simplified
i lifi d
capabilities
• Fewer physical sites
reduces fixed costs
antified

used
Non Qua


Customer Benefits from Consolidation
Improving Data Center Efficiency

• Major European Manufacturer
• Achieves 50%-60% server utilization with SPARC mid-range
servers
• Major European Telco
• A hi
Achieves 55% 60% server utilization with SPARC mid-range
55%-60% tili ti ith id
servers
• US Financial Company
• Consolidate up to 100 Oracle instances on SPARC mid-range
servers
• Benefits:
• Less floor space
• Lower maintenance
• Reduced power
p


<Insert Picture Here>

United States Air Force.

• 13:1 consolidation ratio • Reclaimed nearly 50% of datacenter floor
• Server deployment time reduced by
p y y space with eco-responsible servers
90% with Oracle VM SPARC • Better service levels
• Cut datacenter power consumption • Lower cost
by more than 25%


ENTERPRISE SECURITY


Enterprise Security
Service-Oriented
Service Oriented Security
Identity Management
Identity Directory
Role M
R l Management
t Authentication
A th ti ti Authorization
A th i ti Federation
F d ti
Administration Services

Web Services Web Services Web Services

Oracle Apps 3rd P t /C t
Party/Custom A
Apps Cloud S
Cl d Service Providers
i P id
• Enable IDM functionality - FW • Rapid application security,
• Discrete, easily consumable improved IT agility
services • Security woven - applications

©
201

Database Security
Multi-Tenant Data Management
Option 1 Option 2 Option 3

Shared (Virtualized) Shared Database Shared Schema
Hardware

RISK

• P i il
Privileged database user
dd t b
• Lost backups containing sensitive data or
PII
• Application exploits and by-pass
• Regulatory infractions

© 2010 Oracle Corporation – Proprietary and Confidential

Database Security Defense-In-Depth
Encryption and Masking
• Network Encryption
• Secure Backup
• Data Masking

Access Control
• Multi-Factor Access
Control
• Label Security
Monitoring
g
• Audit
Encryption and Masking • Configuration Management
• Total Recall
Access C t l
A Control
Monitoring User/Role Management
User/Role Management • Identity Management


The Oracle-Sun Red Stack
Integrated Security Policies and Controls
g y
V Third Party ISV
Oracle Applications
I Applications Applications
R
T Platform as a Service
U Cloud Management
Shared Services
A
Oracle Enterprise Manager
L Integration:
g Process Mgmt:
g Security:
y User Interaction:
I SOA Suite BPM Suite Identity Mgmt WebCenter Configuration Mgmt
Z
Application Grid: WebLogic Server, Coherence, Tuxedo, JRockit Policies
Connect to Controls Management
A Lifecycle
T
Database Grid: Oracle Database RAC ASM Partitioning,
Database, RAC, ASM, Partitioning
I IMDB Cache, Active Data Guard, Database Security Application Performance
Management
O
N Infrastructure as a Service Application Quality
Management
Oracle Solaris
Operating Systems: Oracle Enterprise LinuxLinux
Oracle Enterprise
Oracle VM for SPARC (LDom)
Solaris Containers Connect
Oracle VM for x86 Policies to ControlsCenter
Ops

Servers Physical and Virtual
Systems Management
Storage
g


ENTERPRISE MANAGEMENT


Impact of Ineffective IT Management
Business IT Disconnect
Business–IT
Business Demand Traditional IT Response

The application
How satisfied
was up 90% of
are my users?
time.

We had 200
How many orders
database
did we complete?
transactions.

My order is Our servers are
stuck, up. We will look
what’s going on? into it.


Business Driven Solution
Business-Driven
Business Demand New IT Response
Application Management

User
How satisfied 99% of users
Experience
are my users? were satisfied.
Management

Business
How many orders We completed
Transaction
did we complete? 250 orders.
Management

There is an issue
Th i i
Business
My order is stuck, with a supplier’s
Service
what’s going on? app. It has been
Management
escalated.


Business-Driven IT Management

Integrated
Business-Driven Integrated
Systems
Application Application-to-Disk
Management
Management Management
and Support

• Map business • Eliminate • Proactively identify
metrics to IT events management silos and fix problems
• Manage IT from • Create agile IT for • Maximize business
business perspective dynamic business productivity


Comprehensive Management
Application Performance Management Lifecycle Management

User Experience
p Dynamic Resource Management
y g

Java, SOA, Transactions Patching

Diagnostics, Tuning Provisioning

Compliance Dashboards Functional/Load Testing

Application Configuration Mgmt Real Application Testing

Collection, Tracking, History Data Masking

Configuration Management Application Quality Management


ITIL Best Practices
1. Make the model work for you. ITIL is a framework of good
practices. Use what helps, don’t use what doesn’t.
2. Defining
2 D fi i services and processes h two main goals that
i d has i l h
shouldn’t be forgotten:
1. Understand how the business or government entity delivers value and
generates revenue or income. Prioritize the most critical services and
income
measure for continuous improvement.
2. Define, standardize and measure how IT serves the business and delivers
value.
3. Think as much as possible in terms of the service consumed
by the ultimate end customer. It focuses attention on reaching
overall business goals.
4. Many IT organizations think of themselves as offering services.
To avoid confusion, IT should communicate what they do in
terms of ITIL processes.


ITIL Best Practices – cont.
5. Have an IT and business owner for each business service.
6. It is tempting to consider assets, systems and applications that
internal users consume as services. Th
i l i These might b
i h be
considered technical services if the use is truly internal only
(such as HR). However, most employees exist to serve the
end customer somehow and the ultimate service is the one the
customer consumes, even if its delivered by an employee.
7. When using RACI, use actual employee names with one or
two backups if needed Titles organizations or groups won’t
needed. Titles, won t
drive the accountability and ownership needed.
8. Never list more than one name for “approve” when using
RACI.
RACI


Management and Process Automation Benefits
Tangible Intangible
• Automation enables lower • Improved consistency of
ed IT infrastructure labor administration performance
support costs • Disaster recovery can be
Quantifie

simplified

• Improved service level
tified

performance
• Simplified systems
Non Quant

management administration
N


Summary of Deliverables
Future State (Sample)
Reference Principles Future State Gaps
Models Architecture
Clustering Oracle TRM Pooled Resources Application Gap Diagrams and
DB Grid Architecture Virtualization /Technology Matrix Matrix
(Grid) App Grid Architecture Business driven QoS DB Grid Diagrams
Max High Avail Arch App Grid Diagrams
Sun Virtualization

Consolidation Exadata Arch and Group by usage type Exadata Diagrams Gap Diagrams and
best practices Enhanced Resiliancy Workload mappings Matrix

Enterprise Enterprise Security Defense in Depth IDM Diagrams Gap Diagrams and
Architecture
A hit t Separation of Duties
S ti f D ti DB S
Security Diagrams
it Di Matrix
M ti
Security
Enterprise OEM Architecture Measured KPI’s OEM diagrams Gap Diagrams and
ITIL Automation ITIL process flows Matrix
Management Standard Processes


Strategic Roadmap


Strategic Roadmap Flow Inputs from various
Sources & Phases
Inputs from Capability • Stakeholder Input
FSA Phase Gaps • Arch Vision
• Business Case
• Arch Principles
p
• EA Governance Models
• EA Repository

Analyze & Prioritize
Strategic
Roadmap
Transition Transition
Phase State State

Roadmap
Implementation Plan
PROJECTS Phase I Phase II
& WBS (2010) (2011)
…
Solutions & Initiatives PROJECT A
(Work Packages of Capabilities &
PROJECT B
Architecture Building Blocks)
PROJECT C


Gaps Priority Matrix (Template)
Secondary
Primary Targets (O
Overall Initiative )
ll I iti ti
Targets

( Phase 1 )
4 6 1. ( Recommendation )
ghest

2. ( Recommendation )
1 12 7
Hig

3.
3 ( Recommendation )
9
2
11 ( Phase 2 )
5 6. ( Recommendation )
High
Savings

10 8 8. ( Recommendation )

3 ( Phase 3 )
Med

1 Yr 2 Yrs 3+ Yrs

Avg. Time to Value


Create an Architecture Roadmap

• Build Architecture Roadmap based on
• Ri k t l
Risk tolerance of customer
f t
• Ability to invest
• Maturity level/skill level of staff
• Don’t skip maturity levels
Don t
• Parallel and Interdependent Threads
• Platform Clustering/Virtualization
• Consolidation (Middleware, Databases, Servers, Storage, Data Centers)
• Enterprise Security
• Enterprise Management
• Technology
• PProcesses
• Facilities


ITO Architecture Roadmap (Sample)
Current Optimized Dev/Test Initial Production Mission Critical
State
(CS)
Business Reduced HW and Support costs • Reduced HW and SW costs for • Reduced costs , improved QoS
Value for Dev/Test non-critical production systems and improved IT productivity for all
Faster provisioning for Dev/Test • Improved IT productivity workloads on new architecture
• Improved risk and compliance

Clustering Cluster Dev/Test • Failover enabled DB and App Grids • Highly Available and Scalable App
Servers/Storage • Asynch Backup site and DB grids support Mission
Simple DB and App Grids critical systems
• Hot pluggable scalability
• Active/Active on Backup sites

Virtualization Virtualized Dev/Test Servers • Production systems virtualized • Mature virtualization management,
/Storage • HA enabled server virtualization monitoring and exception handling

Consolidation • Consolidate Dev/Test Consolidate small hetero workloads All workloads consolidated on pools
workload on virtualized HW onto HW pools of servers
New applications on App+DB Grids

Enterprise • Centralized /virtual repository • Security Reporting • Mature auditing
Security • Centralized Authentication/ • Initial Auditing • Mature SOD
Roles • Additional levels of Data Security
y • Highly sensitive data p
g y protected both
• Provisioning for Dev/Test by defense in depth and SOD
• Initial Data Security • Mature compliance reporting
• Initial reporting

Enterprise • Initial management • Mature exception handling • Proactive capacity planning
Management
g capabilities • Mature change management • Very mature end user based
• Initial ITIL processes • Initial capacity planning availability and perf measures
• Moderate Change management • Mature ITIL processes
• Relevant ITIL processes begun


Getting to Grid – A Process, not a Project
Driven by Business Need
y
Resources

• Applications
• Software • Monitoring
• OS platform • Operations
• HW/Storage • Infrastructure • Infrastructure • Policies
• Mgmt Tools • Data • Workloads • SLA management

Standardize Virtualize Consolidate Automate

Benefits

•F
Fewer vendors
d • Increased flexibility • L
Lower cost of Ops • Real-time response
t fO
• Reduced complexity • Easier Mgmt • Reduced TCO • Reduced errors
• Faster Provisioning • Higher QoS


Grid Roadmap
Level 5
Level 4
L l
Level 3
Utility
Level 2 Strategic
Enterprise
Level 1
Tactical
T ti l

Learning

Cost effective
Repeatable Real time
scaling and
Strategic Rollout of a Shared Automated configuration of
HA for new Infrastructure
Goals projects (TCO
standard Virtual IT services
platform Infrastructure
focus)
Release
Combined use of
C bi d f products and
RAC and services
Roll out RAC Enterprise Mgr immediately
Tactical Clusters for Maximize server to define policies
Plans 1 Application per utilization and that are self
RAC Cluster Applications that
have specific specify SLAs that managing Value based
business pains can be managed charging

New & existing RAC for Mixed Grid for Dynamic Grid for Utility
Examples New Applications applications Workloads Workload Mgt Computing


Security Roadmap(Sample)
Cost, Effort, Risk
high Transition
As Is  Standardize
provisioning
/ workflow
 Manual audit process Transition
 Hard-coded, Link to
 Phase I
application-
li ti single  Application
specific source of Portfolio
authorization  Single
truth source of Management Phase II
s (PeopleSoft) truth /  Implement
 Multiple  Abstract identities standardized  Support
sources of identities data-centric
data centric ongoing
“truth” /  Defined roles
into protections transformatio
identities centralized,  Automated n / business
 Slow, manual virtual attestation process re-
access identity  Centralized engineering
control repository entitlements Agility
low high
hi h
 Standardize
Reactive Tactical
roles and Strate Enterpris Transpar
entitlements
gic
efficient access control e ent
sustainable attestation
standardized development practices
t d di d d l t ti


Enterprise Management
Stages of the Roadmap
2% of
companies
10% of
companies
45% of
companies
42% of
companies
2% of
companies


EA Governance


EA Governance
IT Optimization Aspects

Foundation laid • EA Committee already Established
• LOB leaders+ IT leaders bought in
by • Processes aligned with PMO processes
Rationalization • Buy in (or resistance) based on prior stage
•AAssess if issues f
i from prior stage, and if any adjustments
i t d dj t t
Stage in process needed

• Operations has more central role, they own the key
Focus on processes
different • Dev/Test is largely of customer of IT services
• LOB approval of migration to new architecture
processes and • Establish key checkpoints/metrics to align expectaions of
various IT and LOB units
emphasis • Regular reviews with EA Steering


Governance Environment

Source: TOGAF


Industry Frameworks for IT Governance
Internal Control - Integrated Framework
• Control Environment
Corporate • Risk Assessment
Governance • Information and Communications
• Control Activities
• Monitoring

Business Business Business
EA Governance IT Function
Function Function Function

IT Governance COBIT

Best Practice
Frameworks / ISO 9001:2000 ISO 17799 ITIL PMI/Prince2
Standards (QA) (Security)

IT Governance is a key part of Corporate Governance, and the way to ensure
IT activities are aligned, managed and measured to ensure business success


ITIL: IT Infrastructure Library
The “de facto industry best practice for IT Service Management
de-facto practice”

• Non-proprietary and based upon
proven practitioner experiences
• Supports ISO 20000 – Formal,
international standard for IT
Service Management certification,
based upon ITIL best practices
• Gives a detailed description of
important IT practices, with
comprehensive checklists tasks
checklists, tasks,
procedures and responsibilities.
• Operational & Tactical, not
Strategic
g

ITIL Knowledge O
Overview: http://www.itil.org/en/vomkennen/itil/index.php
// / / / /


ITIL: IT Infrastructure Library
ITIL is a comprehensive and consistent set of industry “best
practices” for IT Service Management organized in an
integrated, process-based framework in order to add VALUE to
customers

• ITIL is the “de-facto industry best • ITIL contains 7 Core volumes:
practice” for IT Service Management
• The Business Perspective
• Non-proprietary and based upon
proven practitioner experiences • Planning to Implement Service
Management
• Supports ISO 20000 – Formal,
international standard for IT Service • Information & Communications
Management certification, based Technology (ICT) Infrastructure
upon ITIL best practices Management
• Gives a detailed description of • Applications Management
important IT practices, with
comprehensive checklists, tasks, • Security Management
p ocedu es and espo s b t es
procedures a d responsibilities. • Service Support
• Operational & Tactical, not Strategic • Service Delivery

ITIL Knowledge Overview: http://www.itil.org/en/vomkennen/itil/index.php
g g


Responsible, Accountable, Consulted, Informed Matrix
Purpose The RACI matrix is used define roles and responsibilities. In general,
you match up roles and responsibilities with processes.

How to Use • The RACI matrix is a useful tool when rolling out a new change
the Artifact
th A tif t management program, or just uncovering the processes that
t j t i th th t
make your organization function and identifying the participation
in those processes
• The RACI matrix uses the following notation:
• Responsible (R): owns the project/problem
• Accountable (A): to whom “R” is accountable who must sign
off (approve) on the work before it is effective.
• Consulted (C): has information and/or capability necessary
to complete the work.
• Informed (I): must be notified of the results but need not be
consulted.
Audience • Executive Stakeholders
• Line of Business Executives
• IT Executives
• IT Leads


EA Governance RACI Matrix
Example
Architecture Implementation Governance
Steering PMO EA Board Project
Committee Teams
Provide Communication & Awareness
and of standards & assets
I C A&R C
Conduct Coherence & Compliance
Reviews
I C A&R I
Provide cross-project
Communication and Guidance
I A R I
Escalation Resolution
A&R C C I
Allowance for Deviation and
Dispensation
I A R I
Define Degree of EA team
engagement
I R A C
Identify Resource Capability &
Capacity
I A&R C C
Update Architecture Repository &
Capture change requests
C t h t
I C A R
R Responsible
A Accountable
C Consulted
I Informed
72

Business Case


The Need for Cost Reduction
> Discover Current State Constraints
IT Management CIO / CTO

•Have to cut costs from budget, but •Providing value for IT budget $$
where? •75% of IT costs are not supporting
75% f t t ti
•Want to consolidate servers to save new business
money •Must reduce costs but improve
•Must automate processes
p efficiencies at the same time
•Can’t expand my data center

•Legacy Apps don’t support changing business processes
•Compliance exposure and focus on core revenue applications
•Best value from IT investment
•Enabling new business processes

Line of Business/CXO


The Need for Operational Efficiency
> Discover Current State Constraints
IT Management CIO / CTO

•More data for longer = higher storage •Providing value for IT budget $$
costs •Business growth > IT Budget growth
B i th B d t th
•Implementing virtualization = higher •Globalization driving 24x7 computing
utilization, lower costs model
•Raising p
g productivity of IT staff
y •Running out of power in the data
center

•Legacy Apps don’t support changing business processes
•Creating information-based competitive advantage
g g
•Compliance exposure
•Enabling new business processes

Line of Business/CXO


Business Value Discovery Matrix
Developed during Roadmap OADP Phase
p g p
Financial Impact for Data
Secondary Center and Systems
Primary Targets Targets Optimization
Simplification
4 6 1. Vendors
Highest

2. Redundant Functionality
1 12 15 7 3. Standardization (e.g. OS)
4. Info. Lifecycle Mgmt

13 9
2 Consolidation
14 11 5. Databases
5 17 6. Applications
7. Data
High
avings

10 8 16 8.
9.
Servers
Test / Dev Environment
10. Backup
Sa

3
Virtualization
11. Middle Tier
12. Data Tier
13. Application Appliances
Med

14.
14 Servers
15. Databases

Automation
16. Management
1 Yr 2 Yrs 3+ Yrs 17. Backup Processes

Avg. Time to Value


Grid/Virtualization Benefits
Tangible Intangible
• Increased efficient use of • Workloads can be
existing resources reallocated easily to avoid
• Delay new HW purchases downtime
Quantified
• Lower server HW and • IT assets can be
support costs reallocated as needed
• Virtual deployment time without physically moving
reduces labor cost. them.
• Fewer locations enables
• Delay Data Center
faster reaction to problems
expansion
i
Non • Fewer physical assets
Quantified enables more-mature
availability management
used
• Disaster recovery can be
simplified.


Consolidation Benefits
Tangible Intangible
• Increase resource utilization • Fewer physical locations
enables delay of new HW enables reaction to problems
purchases • Fewer physical assets
Quantified
• Lower server HW and enables more-mature
support costs availability management;
• Eli i t li
Eliminate licensing/support
i / t • Di
Disaster recovery can b
t be
fees for redundant capabilities simplified
• Fewer physical sites reduces
fixed costs
Non • Chargeback can be based
Quantified on percentage of assets used


Management and Process Automation Benefits
Tangible Intangible
• Automation enables lower • Improved consistency of
IT infrastructure labor administration performance
support costs • Disaster recovery can be
Quantified
simplified

• Improved service level
performance
Non • Simplified systems
Quantified management administration


Enterprise Security Benefits
Tangible Intangible
• Lower FTE to manage • Reduced Complexity
security systems reduces security and non-
• Reduced time to provision compliance risks
Quantified
new users, systems

• Reduced risk of external
or internal sec rit breach
security
Non • Reduced risk of non-
Quantified compliance


Risk Analysis / Risk Mitigation Overview
Risk Analysis: is the planning process
where you identify the types, probability
and severity of the risks that might
happen on a project
Risk Mitigation: is the plan for what to do
about the risks identified by Risk
Analysis. This can include a
combination of plans for:
• Risk avoidance: minimize the potential
for those risks to materialize
• Mitigation: of the consequences:
g q
minimize the severity of risks if they do
occur
• Risk acceptance: be ready to deal with
risks when they occur
• Risk transfer: let someone else bear
the risk for you, someone who can
handle it better


Risk Mitigation Template
Assess and Recommend Risk Management
g
Probability Potential
of Business Recommended
Risk Category Risk Description Occurrence Impact Risk Mitigation Actions
Operational Service Disruption Low High Ensure proper planning for application
migration – schedule off hours

Slow Performance of new Low High Ensure that target application goes
applications through full load/performance testing prior
to implementation
Financial Loss of revenue due to new Med High Ensure Proper training on new application
application complexity to all end-users

Increased SW maintenance costs High Low Ensure that retired application support
contracts are not renewed

Compliance / Security for new application Low Med Ensure that security performs a full audit
Legal of new system prior to implementation

PII data being migrated to new High Low Ensure that new system meets PII
system
t compliance requirements
li i t

Strategic Loss of business functionally Med Med Ensure that end to end process testing is
completed prior to implementation


Key Points to Remember
“Best Practices” for Business Case Development
p

The Business Case
• Should be collaboratively developed during each stage of the
architecture definition:
hit t d fi iti
 This will enable a progressive “soft close”
 Ensures that the architecture definition hits the mark and on track
• Is more than number crunching using an ROI model:
 It is driven by the Value Proposition
 It is a combination of financial as well as non-financial benefits
non financial
• Must relate to the customer decision culture:
 The appropriate amount of rigor and formality will vary depending
on the customers
 “Just Enough, Just In Time”


Stage II: Outputs

1. Assessment of Current Operational Costs and Business
Effectiveness
2. Updated Principles
3. Selected Reference Models
4. Future State Architecture diagrams/models
5. Catalog of Gaps
6.
6 Gap Priority Analysis
7. Strategic Roadmap Diagram
8. Implementation Plan
9.
9 EA G Governance Plan
10. Business Case


Next Steps


IT Optimization (ITO): Stage III

ITO
Stage I: Portfolio Rationalization
Architecture
A hit t
Vision

Stage II: Data Center &
System Optimization
Strategic Business &
ment
ITO Alignm

Stage III: Shared
Services/
Cloud Computing
Cl d C ti


Data Center and System Optimization

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