The IT landscape has changed significantly due to three major trends: 1) Moore's law has led to increased computing power and data storage capacity but managing complexity and power efficiency is now more important. 2) Server virtualization has improved utilization and flexibility but most organizations have not virtualized mission critical applications. 3) Cloud computing is seen not just as a technology but as capabilities around agility, efficiency, and cost that are aligned to business needs.

1. The IT landscape has changed.
Have you?
Dr Kevin McIsaac
kmcisaac@ibrs.com.au
www.ibrs.com.au

2. The Mega Trends
 The three iron laws of IT that drive
infrastructure
 Cloud Computing as seen from above
 Integrated Systems: why the infrastructure
of the future looks a lot like the
infrastructure of the past!

3. Moore‟s Law
 Massive growth in computation, dramatic decline in
unit cost
 Problem is no longer CPU power or processing costs
 Issues are power efficiency, utilisation and I/O performance
 Number of cores doubles every 18 months
 10 core x64 CPUs today
 200+ cores/blade enclosure
 Tri-gate transistors, better power and performance
 Fortunately DBMS, App Server & Web Servers and
Hypervisors already scale to 100‟s of cores!

4. Server Virtualisation
ANZ Production Apps
30
 Exploits Moore's law 20
%
 Drives server consolidation
 Improves utilization & power
10
efficiently 0
 Leverage for HA, DR and CO
 Then move to policy and automation
 Mainstream but 60% have not
virtualised mission critical apps
 Licencing
 vSphere 5.0 changes
 Application licencing
 Oracle OVM

5. Database consolidation
 Another way to exploit Moore‟s law
 VMs vs. Instance vs. Schema
 O/S & DB version
 Patching and upgrading
 Workload compatibility
 Capacity management

6. Shugart‟s Law
 Cost per bit halves every 18 months
 About 37% pa or 10% per quarter
 Delaying 1 quarter can save you 10%
 Constrains storage capital costs
 On a 4 year H/W lifecycle a flat budget
supports 60%pa data growth
 Has enabled massive storage growth but…
 Management complexity
 Performance issues
 3TB SATA this year
 How do you exploit large, slow, cheap drives
 Performance becomes is an issue
 Oracle ASM

7. Disruption of Storage
 Evolution of storage arrays
 Commodity hardware, i.e., x64 servers
 SATA for capacity mixed with Flash Cache for perf
 Deduplication & Snapshots for storage optimisation
 Clustered architecture & virtual appliances
 Examples
 HP Left Hand & VMware vSA
 Oracle zFS fileservers
 Oracle Exadata Storage for DB
 IBM XIV
 Disrupts current vendors/market
 Like M/F vs. UNIX/RISC vs. Wintel/Lintel
 Look beyond traditional modular storage

8. Storage Virtualisation
 Network based storage virtualisation has limited
adoption
 Additional cost is a major barrier (4K-6K/TB?)
 Need to be very, very large to justify cost/benefit
 Vendors: IBM (SVC), HP, EMC v-Plex
 EMC new to this market the market with v-Plex
 Use cases
 Mostly used for data migration (SVC)
 Cloud providers with unpredictable workloads.

9. Gilder's Law
 Optical fiber bandwidth
doubles every 12 months
 Is driving IT centralisation
 Branch offices are next
 What impact will the NBN
have on your WAN
strategy?
 What every you believe
about networking now will
be wrong in 7 years

10. Converged Networking
 Core FCoE & CEE standards ratified  Barriers
 Major vendors have products  Existing large scale investment in Fibre
 Dominant storage protocol in long-run Channel
 Demand driven by workload density  Cuts across server, storage and
networks silos, potentially changes the
 Moore‟s Law and Virtualisation
roles and relationships of these teams.
 Benefits  Use an incremental adoption strategy,
 Lower capital costs from lower port,
 High density servers use a converged
switch and cabling requirements
network at the server edge.
 Greater I/O flexibility from dynamic
 Integrate into the existing FC &
sharing of a higher bandwidth,
Ethernet infrastructures
common transport layer
 Displace FC switches over time
 Capacity can be optimised and used
more effectively

11. Cloud Computing
• Different ways of thinking about the cloud
• How do clients view “The cloud”?
• What does the business want

12. Cloud as Technology
• Virtual machines
• Clusters
• Multi-tenancy
• Internet
• Web Protocols
Its time to stop thinking about the Cloud as a
technology

13. Cloud as Services
 What is the cloud?
• IaaS
• PaaS
• SaaS
• Public/private
Think about the Cloud as an aspiration to create a
“better IT environment”

14. Cloud as Capabilities
Self-Service
Commodity Cost
pricing Transparency
Location &
Capacity on
Device
Demand
Independence
Utility Pricing
Think about Cloud as new capabilities that are
aligned to the business‟ needs

15. The Cloud as a Journey
 Levels of capability
• Where are you now?
• Where do you need to be?
• Strategy for getting there?
Think of the Cloud as a journey to these new capabilities.
Where do I start and where do I stop?

16. What are clients thinking
• The cloud is not clearly defined in
user‟s minds
• Each vendor defines it around
their own product sets
• It means very different things to
different people
• IaaS, SaaS, Public, Private etc
• Many business and IT people are
uncomfortable with
• Security, governance, compliance
& cost
• Often this is perception, rather
than reality
Potential for significant misunderstandings
between users, vendors and partners

17. What does the business want?
• They are interested in the benefits of the cloud not
the technology, i.e.,
• A more agile, more efficient IT infrastructure
• Increased robustness, i.e., HA, DR, Continuous
Operations
• Transforming IT from a CapEx intensive fixed asset to a
OpEx based utility
• Self-service, transparent pricing
Talk about Service Capabilities and Benefits,
not Technology Features and Functions

18. The IT landscape has changed.
Have you?
Dr Kevin McIsaac
kmcisaac@ibrs.com.au
www.ibrs.com.au

19. The empire, long divided, must unite;
long united, must divide. Thus it has
ever been.
-- Three Kingdoms

20. Layered Components
 Started in „80s with Open Systems
 Layers defined by standards
 Pros: Vendor competition drives
 Lower component cost
 Innovation at each layer
 Drawbacks: IT becomes an SI!
 Defines specs,
 Integrates components,
 Maintains integration across
disparate product lifecycles
System integration costs and times now
outweigh the benefits of competition

21. Integrated Systems
 Still use open standards and
commodity components
 A “Systems Architecture”, not
just “Factory Integration”
 Who can do this?
 IBM, HP, Dell & Oracle
 Who is at risk
 Cisco, EMC, NetApp
 All the niche component players
Get out of the SI business and buy end-to-end designs
from a single trusted systems vendor

22. Survey Results
Business Size
5.9%
10,000+
Technical 27% 1 - 999
, 37.3% 35%
IT
Exec/Mgr
, 56.8% 3,000 -
9,999
1,000 -
22% 2,999
16%
154 responses from a diverse range of organisations

23. Perception of Benefits
Fastest time to solution
Lowest overall risk
Lowest total cost
Fastest time to solution 16% 29% 55%
Lowest overall risk 15% 39% 46%
Lowest total cost 33% 30% 37%
About half saw clear advantage in „time to solution‟ and
„lower risk‟ but concerns about TCO remain

24. Barriers to moving to an
Integrated Systems model
Low Medium High
Application compatibility 12% 38% 50%
Existing infrastructure 10% 53% 36%
Re-engineering IT processes 17% 47% 36%
Existing technical skills 21% 49% 30%
Vendor Lock-in 21% 54% 26%
Hardware cost 38% 37% 25%
Changing IT roles 41% 42% 17%
Existing IT org structure and the investment in IT skills
and infrastructure will be the major adoption barriers

25. Two approaches to adoption
Mandate Seeding
 Smaller organisations  Larger organisations
 CIO mandates the use of  CIO seeds a “hot house”
Integrated Systems to develop new capability
 Triggered by refresh of  Leaves “Old IT” alone
main Infrastructure  Steer specific new project
 Staff skills less of an issue to the hot house
The key question becomes “when and how”.
Because …

26. Database
Other Departmental Business Critical Mission Critical
83
32
65
81
68
7
24
16 7
41
13
22 20
12
14 21 6
4 11 9
Oracle Enterprise Microsoft SQL Server IBM DB2 Oracle MySQL Sybase
Edition

27. Components
Cisco Dell EMC HP IBM MS Netapp Oracle Red Hat VMware
Middleware 5% 2% 2% 4% 20% 23% 0% 32% 5% 6%
Database 0% 0% 1% 2% 9% 35% 0% 52% 0% 1%
O/S 0% 0% 1% 4% 11% 42% 0% 16% 20% 7%
Hypervisor 0% 1% 2% 1% 6% 14% 0% 13% 2% 62%
Server 4% 17% 1% 29% 22% 7% 0% 16% 1% 3%
Storage 0% 5% 37% 14% 17% 2% 15% 8% 0% 2%
Network 80% 1% 1% 8% 4% 2% 1% 4% 0% 0%
• Strength in DB and Middleware
• MS is leader in O/S , Oracle have caught up with Red Hat
• VMware clearly leads Hypervisor category but oracle has 13%!

28. Questions
1. Transition from one model to the other is always the most difficult as it
is a 'sunk cost' While Integrated system may be better overall, the
huge existing investment means transition costs are a major barrier.
2. What is the current take up/trend of the major Australian FI's around
Oracle's Integrated System model
3. With an integrated model won't we loss some of the functionality
offered by the Best-of-Breed solutions?
4. How would you rate the ease of upgrading each of the different stacks
as the technologies on each stack improve over time?
5. Integration with other vendor technologies and ability to use historical
infrastructure
6. How involved do you get when choosing an integrated solution. How
much control do you give away ? Main concern is poor Oracle support

29. Questions
1. What type of resources are needed to support the Integrated
systems model
2. Should Customers be more concerned about vendor lock in when
following an integrated systems model? If not, why not?
3. By removing the Design and Integration layers of the model, how
can we ensure the technologies align with business requirements? Is
there an expectation that the business will follow the technology?
4. What plans does Oracle have to eliminate complexity of licensing and
provide financial incentive to leverage an integrated stack ? Why the
Oracle licencing model is so complex? Why is Oracle so expensive?
5. Is going Oracle to support small business or target Corporate clients
only?

30. The IT landscape has changed.
Have you?
Dr Kevin McIsaac
kmcisaac@ibrs.com.au
www.ibrs.com.au