The Next Generation of IT

The Next Generation of IT
Mike Sharun
Country Manager EMC Canada

May 19, 2011

© Copyright 2010 EMC Corporation. All rights reserved. 0

• What is wrong with IT?
Agenda • VCE – A Game Changer,
• EMC’s Journey to the Next Generation of IT


Rigid
Complex
Expensive

IT Infrastructure Is At Breaking Point
• Too Complex
• Too Inefficient
27%
Invest • Too Inflexible
73%
Maintain • Too Costly


Data Volumes Are Exploding
IDC’s Digital Universe

Growing
By A
Factor Of 44
2009:
0.8 ZB

2020 : 35.2 Zettabytes


Major Culprits

Budget - CapEx Complex Designs
Speed to Deliver and Operational and
Expenses Implementations

Baseline /
Need for Efficiency Multiple Vendors
Benchmark
and Support and Contracts
Metrics Unknown

© Copyright 2010 EMC Corporation. All rights reserved.
5 5

Secure. Reliable.


Easy. Dynamic. Cheap.


Access From Any Device


Cloud Computing
The Best Of Both Worlds.


Cloud promises to solve the principal IT issues endemic in most
organizations today
Elements of the IT value chain

Infrastructure is Data is trapped in Application platforms End user access is
underutilized and application or are fragmented and insecure, inflexible,
managed in silos infrastructure silos incompatible and expensive

11 Service provision
1 3 4 5 6 8 9 10
Data 2 App. dev. Apps. 7 Last mile
IT infra. IT infra. Content Online End-user
Core fabric center platform, and web connect-
HW SW and data markets devices
facilities tools services ivity

12 System integration

These issues result in
▪ Poor business agility due to lock-in and difficulties in innovation
▪ Operational inefficiencies due to silos and need for integration services
($1T industry)
▪ Unaffordable economics due to high asset and labor expense


Total 2015 cloud spend forecasted to be ~20% of infrastructure and
application spend
Overall IT spend on applications and infrastructure hw/sw
$ Billions, 2015
~735

Applications 182

IT infra SW 154
590

IT infra HW 366
~145 ~81

IaaS/PaaS 33 ~64
Total Non-cloud Total cloud Private cloud Public cloud
2010 spend $533B $522B $11B $- $11B
SOURCE: McKinsey TMT Value Migration database (compilation of Gartner and IDC); BoA Merrill Lynch 2010


Private cloud forecast to be worth ~$80 Billion by 2015
Cloud IT spend on applications and infrastructure hw/sw
$ Billions, 2015
~145 ~81
21
Applications 51
31

IT infrastructure SW 31 29
~64

IT infrastructure HW 29 31

IaaS/PaaS 33 33

Total cloud spend Private cloud spend* Public cloud spend*
* Assumes PaaS and IaaS are public cloud spend and application spend is split 60:40 between public (SaaS) and private Cloud

SOURCE: McKinsey analysis; BoA Merrill Lynch 2010


IT leaders are coalescing around 3 different Cloud approaches


The Story: Capturing the Promise of Agility


What is wrong with IT?
Agenda VCE – A Game Changer,
EMC’s Journey to the Next Generation of IT


VCE Mission Statement

Accelerate adoption of converged
infrastructure and cloud-based
computing models that dramatically
reduce the cost of IT while improving
time to market for our customers.


VCE – the Best of the Best

• Undisputed leader in • Undisputed leader in
networking storage
• Leading innovator in blade • Leading innovator in information
technology management & security
Converged
Infrastructure
& Cloud Deployment

• Undisputed leader in • Undisputed leader in
platforms virtualization
• Leading innovator in core • Leading innovator in cloud
architecture application enablement


What does VCE Do?
A Vblock helps customers transform their IT infrastructure
from traditional silos to a virtualized, shared environment with
best of breed technology.
 Deploy data resources quickly, easily, predictably, and cost-
effectively
 Optimize performance
 Reduce / eliminate delay, cost, and risk of manual system
provisioning and maintenance
 End-to-end accountability
 Simplified management


GAME CHANGING!
Leverage the integrated power of four industry leading
technology companies through one relationship:

• Maximize customer ability to leverage future industry innovation
• Accelerate and scale business growth and/or new initiatives Accelerate Your
• Management in a single pane of glass Virtualization and
Private Cloud
• Faster application development and deployment
Initiatives
• Improve service quality and workload density
• Eliminate most planning and configuration burdens
• Predictable costs and risks with standardized, pre-built and validated
infrastructure
• Improve time-to-value with repeatable, proven methodologies and
best practices
• Ongoing optimized ROI and performance


A New Way to Deliver IT

VblockTM Infrastructure Platforms
 Management: Unified Infrastructure Manager
(UIM) framework
 Virtualization: VMware
 Compute: Cisco UCS
 Network: Cisco Nexus and MDS switching
 Storage: EMC Symmetrix VMAX or VNX

VblockTM Platform Solutions and Services
 Accelerate time to value of business applications
 Seamless Support Pre-Engineered,
Pre-Integrated and Validated


Converged Infrastructure:
A New Kind of Platform

Agility Simplicity
 Rapid deployment  Pre-integrated and validated solutions
 Just in time scaling  Single platform and point of accountability
Efficiency  Full lifecycle management
 Solution deployment and data characterization
 x86 based high performance computing
 Interlocked roadmaps
 Improved utilization of shared resources
 Deployment of virtualized infrastructure
 Interoperability Testing
 Patching, Hardware & Software Upgrades

With a converged infrastructure platform…. IT doesn’t have to manage more and
more devices and instead can provide more value-oriented functions such as
business analytics, data mining, and better customer support.” -- Vernon Turner, IDC


This is not a Vblock


Complexity versus simplicity
V+C+E Vblock


Simplifying the Data Center Experience
Traditional Data Center Experience VCE Data Center Experience
90-120 Days From Order to Production ~30 Days From Order to Production

Program & Provision
Receive Components

Staging Rack & Cable


Solutions Differentiation

Messaging ERP Virtual Desktop
ON a Vblock Platform

Predictable Application
design envelope
Collaboration
Development


Vblock Solutions

Horizontal Application Solutions Application Development Solutions
• Virtual Desktop • Cloud Application Lifecycle Management
• ERP (e.g. SAP) (e.g. SpringSource)
• Collaboration (e.g. UC) • Cloud Application Platforms
• Messaging (e.g. Exchange)
• Analytics (e.g. Greenplum)
Converged
Infrastructure &
Service Oriented
Architecture

Vertical Application Solutions
Infrastructure as Service Solutions
• Service Providers
• Service Management
• Financial Services
• Chargeback
• Energy
• Security
• Public Sector and Federal
• Capacity Planning
• Healthcare


SEAMLESS SUPPORT EXPERIENCE
 Single experience for onsite
and remote support
 Unified inter-company
collaboration tool  Cross-company,
cross-product-trained
 Joint problem support experts
re-creation labs
 Cooperative Engineering Groups

 Common metrics and alignment
 Shared problem resolution and escalation processes
 Documented processes via best practice Support
Implementation Plan


VCE Value Proposition
Complete System Integrated product roadmaps inclusive of all major
Integration components, upgrades, interoperability and patch
management
Best of Breed Products Market leading performance elements in every category

Single point of configuration validation, ordering,
Seamless Support delivery, support and warranty

Partner Enablement Unprecedented global product/solutions resources, training,
configuration and delivery support

Market evolution and partner support through VCE thought
Market Catalyst leadership, competency centers, best practice replication,
mentored installs, and technical assistance

Optimized Solutions Solutions for the Vblock converged infrastructure including
application ports and targeted use cases


Customer Benefits

• Lower sustainable TCO
• Dramatically lower support costs
• Improved service quality
• Predictable cost and performance models
• Faster application development
& deployment


Benefits for both sides...


• What is wrong with IT?
Agenda • VCE – A Game Changer
• EMC’s Journey to the Next Generation of IT


EMC IT at a Glance
50,000 “internal” users
User Profiles
400,000+ customers and partners

2 enterprise data centers
3 regional data centers
IT Environment
8 PB storage
5,500 OS images
Business Applications ≈ 500 applications and tools

Global Support 80+ countries and 20 languages


What Really Matters?

Revenue Efficiency
If IT can’t deliver services that enable revenue growth and
improved business efficiency, what good are we?


EMC IT Infrastructure OpEx Budget/Savings
1.25% $120,000,000
$112,579,682
1.20%
1.21%
$100,000,000
1.15%
1.14%
1.10%
$80,000,000
1.07% $73,552,594
1.05%
1.03%
1.00% 0.99% $60,000,000

$47,506,587
0.95%

0.92% $40,000,000
0.90%

$23,715,822
0.85%
$20,000,000

0.80% $7,567,399
$0
0.75% $0
2005 2006 2007 2008 2009 2010

Cumulative Savings Infra Opex as % of Sales


Our Journey to the Private Cloud
IT Production Business Production IT-as-a-Service
Lower costs Improved quality of service Improve agility
% Virtualized 85%
We 95%
VDC 70% are
Optimization here
Standardization 50%
Virtualization
30% Governance
Cloud enablement
15% Service management

Platinum Gold


IT Production Phase
Dedicated Consolidated
Benefits Realized
Custom Built $12M Power And SpaceLower CapEx
Dedicated Virtualized
Savings

A $74M Data Center Equipment Savings
Servers Servers A
Monolithic Tiered
B 170% Gain Storage Admin Productivity
Applications SAN B

C
34% Increase In Energy Efficiency
Point
Management
Partial Integrated
Management C

60M Pounds Of CO Reduced 2


Business Production Phase
Consolidated Shared
Benefits Realized*
Lower CapEx Dynamic Shared Capacity
$11M Opex Savings
Virtualized Tiered Virtual
Data Center Equipment
A Servers Servers
$6M SavingsA

Tiered Storage
B 65% of OSB Virtualized
SAN Optimization Images

of Mission-Critical Apps
C 71% incl. Virtual Components
Partial Integrated Integrated
Management Management C
& Security
30M Pounds of CO Reduced 2
Source: Estimated benefits, ESG IT Audit, May 2010


Large Mission Critical Applications on Vblock
• 8TB production database – 8.8 billion rows
• 61,000 IOPS
• 520 million transactions per day
• 91,000 concurrent jobs
• Runs all EMC’s customer facing operations

• 70 Dell 2950 servers • 70 VMs running on 7 Dell R900s
App • 112 CPU cores
• 140 CPU cores
Tier • 1120 gb memory • 600 gb memory (8.57 gb reserved/VM)
• Average utilization 5% • Average utilization 20% (10:1 ratio)
• 2 Sun E25K, • 6 Cisco UCS B440 blades
• 224 Sparc IV CPU cores • 192 Nehalem EX CPU cores
• 224gb memory • 792gb memory
• Solaris 10 • RedHat Enterprise Linux 5.5
DB • 2 node RAC • 6 node RAC, bare metal provisioned
Tier • Symmetrix DMX3 • Symmetrix Vmax
• 146gb fiber channel disk drives • 300gb flash, 450gb FC, 1TB SATA
• RAID 1/0 protection • RAID 1/0 protection
• SRDF-S replication • SRDF Cascade replication
•Average CPU utilization 75% • Average CPU utilization 5%


Oracle on Vblock – Performance Benefits
Partner External System Transaction Times Internal Customer Service Transaction Times
(sec) (sec)
35 25
30
20
25
15
20
Before Before
15 10
After After
10
5
5
0
0
Configurator Config Save Create Opportunity Approve Quote
Application Login Configurator Config Save My Quotes
Launch
Launch


Benefits of De-Duplication
Protecting More Efficiently 85% Increase in
12000 Protected Data
10000
8000
49% Decrease in
6000
Backup Capacity
4000 Required
2000
0
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10

Data Protected Data Stored

• Decreased Backup costs • Increased Restore Speed
by 70% and Reliability
And we are not done yet!

How IT is now Different
Built Differently

IT
•Pooled Architecture
•Defined service Catalog
•Partition or move workloads
is Run Differently
• Low or “0” touch models for Management and Problem
Resolution
Consumed Differently
• On-Demand
• Immediate
Governed Differently
• Quality of Service
• New Rules
• New Roles


What are the Implications on IT Roles?
Before After
Designing custom dedicated Architecture Designing a consolidated multi-
infrastructure and Design tenant cloud infrastructure

Building Automation
Provisioning Build and Capacity planning
Configuring Operate Performance management
Monitoring and break-fix IT process engineering

Product and Developing, marketing, selling,
Responding to service
Service delivering, and supporting service
requests and tickets offerings
Management


An Organizational Evolution is Underway
Imperative: IT Service Management
Business and financial management

New focus area: Enterprise
Infrastructure Platform as Desktop as
Cloud service operations management Applications
as a Service a Service a Service
as a Service

New roles emerging: Virtual Infrastructure Architecture
Cloud Architect, Cloud Admin
Cloud Capacity Planner
Virtual Infrastructure Management
IT Automation Engineer

Backup Data
Traditional roles are still essential Systems Storage and Center Security
Recovery Networks


Key Learnings
Executive support is vital
Cloud is a State not a SKU

Move IT strategy from Defense to Offense

It takes longer to
There are NO U-turns change people’s mindsets
than the Technology
IT Organizations will Evolve
Can’t stop at 30%
virtualization


www.EMC.com/emcit

EMC IT Journey to the Private Cloud:
A Practitioner's Guide
http://www.emc.com/collateral/software/white-papers/h7298-it-journey-private-cloud-wp.pdf


The Next Generation of IT

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The Next Generation of IT