3. DATA CENTER TRANSFORMATION
Delivering the data center needed for your future success
Dedicated infrastructure Shared infrastructure
and applications and services
The DCT opportunity
» Reduce overall IT costs. » Support new initiatives and promote growth.
» Shift spending to business priorities. » Allow for modular data centers.
» Improve business continuity. » Increase environmental sustainability.
4. DATA CENTER TRANSFORMATION
Four Integrated Initiatives
Simplify, standardize, and
reduce the number of data
centers, applications,
servers, storage, and
network resources.
Automate the entire data
center operations
lifecycle.
Protect business with
resilient operations.
Optimize the use of
energy, floor space, and
cooling infrastructure.
7. UNDERSTANDING YOUR CIO
How is he/she being measured? – By business outcomes
Accelerate Lower costs Mitigate risks
business growth
• Maintain customer • Reduce IT cost and • Improve compliance
relationships drive down business • Protect critical assets
• Target new cost • Ensure continuity of
opportunities and • Enhance operational business operations
markets efficiency
• Improve business • Improve return on IT
decision making investments
• Improve workforce
productivity
8. DESIRED BUSINESS OUTCOMES DRIVE
THE CIO AGENDA
HP CIO Agenda framework
Desired Business
Priorities Metrics
Outcomes
Growth Business
Business
Costs Management
IT Strategic &
Operational
Risks Technology
Business: How CIOs help meet key business objectives and measure
their business contribution
Management: How CIOs manage the IT organization and resources
Technology: Which technologies meet these needs
8
9. CIO AGENDA PRIORITIES (2009)
Business Priorities Mgmt Priorities Technology Priorities
1. Improve business 1. Link business and IT 1. Business Intelligence
operations and processes strategies and plans applications
2. Control enterprise wide 2. Reduce the cost of IT 2. Enterprise applications
business costs operations (ERP, SCM, CRM, etc)
3. Improve the effectiveness 3. Deliver projects that 3. Real time infrastructure;
of the enterprise workforce enable business growth servers and storage
4. Attract, retain & develop 4. Improve IT governance technologies
customer relationships 4. Legacy application
5. Improve IT processes
5. Expand the use of and service delivery modernization, upgrade
information / analytics in the quality or replacement
business
6. Improve the business & IT 5. Collaboration
6. Create new products & technologies
services (innovation) relationship
7. Attract, retain and 6. Networking, voice, data
7. Support change initiatives, and mobile technologies
mergers/acquisitions develop IT personnel
8. Consolidate IT (shared 7. Technical infrastructure
8. Expand into new markets,
geographies and services) management and
capabilities automation
9. Enable the use of
9. Support regulation and information in operations, 8. Security technologies
compliance requirements products or services 9. Service oriented
10. Manage environmental 10. Manage IT risk applications and
impacts (Green IT, Carbon architecture
Footprint) 10. Document and workflow
management
11. BUSINESS CASE IN 3 SIMPLE STEPS
Represent everything in financial terms
1. Current State 3. What does it take to 2. Future State
get there
Tie it to the 3 objectives. Does this project help:
» Reduce overall IT costs?
» Shift spending to business priorities?
» Mitigate risk and improve business continuity?
12. MORE ADVANCED TERMS
• Revenues generated
• Solution cost
• Internal costs– including customer
care and marketing expenses
• Return on Investment
• Cash flow and Payback
• Net Present Value
• Internal Rate of Return
14. 1. CURRENT STATE
Complexity continues to grow.
» Inconsistent or poor quality of service
» Slow to respond to business needs
» Escalating costs
» Inefficient and manually intensive
processes
» Isolated applications and data
» Aging facilities and infrastructure
» Too many data centers
» Inefficient use of technology assets
Current data center facilities and infrastructure is a barrier
to business growth, and expensive to maintain and manage
15. 2. FUTURE STATE
Reduced complexity = reduced cost, improved service levels, less
downtime
» Fewer data centers
» HP’s own transformation: 85 -> 3 pairs
» Fewer applications
» HP’s own transformation: 8000 -> 1500
applications
» Fewer infrastructure components
» Virtualize and converge servers,
networking, storage etc
16. 3. GETTING THERE
Lower complexity.
Increase use of
shared infrastructure.
Lower application life cycle
costs.
Lower costs through
reduced space,
energy, and cooling
requirements;
simplified management;
and improved
asset utilization.
Significantly reduce costs.
Mitigate energy and space
costs and issues.
Improved asset utilization.
Improve quality
of service.
17. TYING CONSOLIDATION TO THE 3
GOALS
Improve elasticity and enable innovation.
» Shift
resources to innovation.
» Rapidly deliver new business services.
» Deploy new resources in minutes/hours instead of days/months.
Lower costs.
» Lower energy and maintenance costs.
» Enhance productivity, utilization.
» Achieve 20–50% costs improvements.
Manage risks.
» Reduce complexity.
» Build in continuity and security.
18. GETTING THE BALL ROLLING
Two helpful tools
Experience DCT Workshop CIO Agenda Workshop
Workshop Focus Workshop Focus
» Determine benefits, scope, scale, » Best practice model based on
and critical success factors. annual Gartner CIO survey
» Identify quick wins. » Clarify and align business, IT
» Gain stakeholder buy‐in and management and technological
project traction. priorities
» Half day session
» Build a next‐steps roadmap.