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Case Study - HPs Own Data Centre Transformation
- 1. HP DUTCHWORLD 2008 OUTSMART THE FUTURE! Case Study: HP’s own Data HP’s Centre Transformation Project Pieter van Kampen EMEA Architecture Profession Lead Technology for better business outcomes © 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
- 2. The HP IT mission • Provide good information to enable better business decisions • Significantly reduce the cost of IT while delivering more to the business • Lower risk to the enterprise with better control of the infrastructure • Be a showcase for enterprise customers 2 11 December 2008
- 3. HP top 5 IT initiatives Data Portfolio Centers Management Enterprise IT Data Workforce Warehouse Effectiveness World-Class IT 3 11 December 2008
- 4. HP understands: we’re in the new world of business technology IT as a line of business just a cost center IT execs with executive just IT budgets accountability Business initiatives just IT projects NOT just service level Business requirements agreements Optimized infrastructure IT silos Business services just IT services
- 5. HP IT 2005: Large scale and scattered 100+ HP IT sites >1,240+ IT 4+% of in 53 6,000 active IT revenue countries applications projects <50% of resources 750+ time data 30% IT dedicated to marts managed ~19,000 IT innovation by IT professionals 85+ data including centers in contingent 29 workforce Under- countries managed network 5 11 December 2008
- 6. IT cost categories People (Direct) (7%) Facilities Infrastructure (40%) • Facility & security staff • Capacity planners • Building & land (real estate) • Installation & configuration • Utility bills (60% of cost) • On-site maintenance • Power & cooling equipment Direct DC labor - Contingents & Perms • Physical security • $40M capital/yr (maint & capacity) REWS allocations People (In-Direct) (51%) •Operations bridge Application & Infrastructure (11%) •Account mgmt • Compute equipment •Enterprise Architecture & PMO •Application Design • Storage equipment •Application Development • Communications equipment •Application support • 30-60% is dev/test •Other deep tech support •3rd party providers Maintenance contracts & Depreciation In-Direct labor - Contingents & Perms Demand on contents (equipment & apps) drives spending in all other areas 6 11 December 2008
- 7. Critical Success Factor: High Level Sponsorship •C Level •Business & IT
- 8. “This is not the IT strategy. It is HP’s strategy.” Mark Hurd HP Chairman & CEO
- 10. Enterprise Architecture Efforts HP Combined Model Unification Diversification Both Photo Storage Digital Media Halo Marketing Collateral Internet Print New & Emerging Business Unit Unique Core Processes Room & Sharing Distribution Management Design & Management Processes Management Common Context Mandatory Processes cture rchite Customer Segments rise A Vertical Markets Enterp Enterprise Information Data MDM Master Management Routes to Market ess Data Subject Areas Busin Business Plans Procurement EDW Reference Data Inventory Analytical Data Customers Sales Engagement Models Customer Support Supply Chain Highways 10.0 Manage 11.0 Manage 12.0 Manage 7.0 Plan & 8.0 Manage 9.0 Manage • Customers • Warranty & Repairs services support • Inventory at Location performanceaccounting resources • Purchase Orders human • Business Charters • In-Transit Inventory • Installed Base • Customer Support Product Business Areas • Supplier Planned Deliveries • Financial Plans • Spare Parts • Customer Product Usage Contracts • Receipts • Product Lifecycle Plans • Supplier Agreements ERP Transactions • Customer Support Product Design Models • Sales Plans / Quota Events • Supplier Performance Marketing manage finances & • Capacity Plans • Returns to Supplier Sales & physical assets • Markets • Order Forecasts • Material Requirements Plans Equipment • Customer Purchase Distribution • Channels Finances Regions Agreements • Product Pricing Models • General Ledger • Production Plans • Manufacturing lines & • Marketing Programs & • Payables ter Data • Shipment Plans machinery • Quotes Promotions • Receivables information EDW & Mas • Sales Orders resources • Contingency Plans • Spare Parts Descriptions • Assets • Vehicles • Computers 1.0 CreateSales Order Backlog • & • 2.0 Market 3.0 Sell manageShipments & products/ 4.0 order Perform 5.0 Manage supply 6.0 Manage Business Model Product Generation • Product Requirements • Office equipment & products products• Invoices services services management chain & support Reference Data customers Variable Core Processes • Telephone equipment servicesCarrier Shipment Status • operations • Countries TAAP Process • Experiments • Prototypes • Routes & Legs • Currencies • Returns from Customer • Languages Manufacturing • Reseller Inventory 14 9 August 2007 Facilities Products & Services • Manufacturing Processes • Reseller Sales • Plants & Buildings • Work Orders • Reseller Commitments • Products • Geographic Locations TAAP Retiring Applications through FY08 • Product Specifications • Product Categories/Groups • Work Order Receipts •Identify Planetary Applications • Material Movements • Manufacturing Events Tax & Licensing • Regulatory Documents Organizations Human Resources • Employees Materials •Collect New Dimension attributes to • Lots & Batches • Transaction Tax • Suppliers • Job Classifications • Capacity • Employee Records understand application overlaps Solu • Channel Partners • Material Unit of Measure • Capability • Compensation • Competitors • Material Items • Staffing •Begin rationalization process across • Factory Schedules tion • Carriers • Training • Bills of Material • Production Metrics • HP Organization • Quality Tests organizations L2 • Material Documents Stac Post FY08 Retirements Updated 4/20/00 by G. Robinson ks Go-Forward Applications Proposed Solution Stack Model Planetary End-State Apps Planetary •Complete investigations Solution Stacks – What, How, Where Target Standards •Recommend End-State Planetary Applications •Communicate DCC TAAP Viewpoint = Target Planetary Apps Vision 4 How should you determine What belongs within the Solution Stack ? a Solution Stack? What: Solution Stack has: − Application Capability − Approved/Preferred Technologies How: − Enterprise Services (Assets) − Implementation Pattern − Code Examples Where: − Corporate Guidelines, Standards − Hosting Infrastructure 11 HP Confidential
- 11. HP data center transformation strategy • Enable IT to be more nimble and provide better information • Provide more dependable, simplified operations • Enable faster delivery of new technologies, services, and information • Accommodate growth • Provide for improved business continuity • Significantly reduce IT costs 11 11 December 2008
- 12. HP data center transformation includes… • Technology refresh • Standardized technology environment • Retirement of legacy applications • Next-generation data center build out − State-of-the-art infrastructure for today and tomorrow − Automated monitoring and control • HP Dynamic Smart Cooling • Real business continuity/disaster recovery 12 11 December 2008
- 13. HP data center locations • Consolidating >85 global data centers to six in three U.S. geographical zones (Austin, Houston, Atlanta) chosen for: Zone A Zone C − Proximity to major fiber optic Site 1 backbones Site 5 Site 2 − Access to multiple power grids Site 6 Atlanta − Costs Austin • Total white space 400,000 sq. ft. • Within each zone: Houston − 2 sites within 10-25 mile radius of Zone B each other Site 3 − Each site designed for high Site 4 availability, disaster recovery and business continuity 13 11 December 2008
- 14. Data centers – detail locations Global data centers 829 Miles Austin Houston Atlanta 150 717 Miles Miles Austin - Site 1 Houston - Site 3 Atlanta - Site 5 - Completed 11/06 - Completed 06/06 - Completed 01/07 - 125KSF - 1700 server addition - 50KSF raised floor 2600 Pinemeadow Austin - Site 2 Houston - Site 4 Atlanta - Site 6 - Completed 06/07 - Completed 05/07 - Completed 07/07 - Greenfield 50KSF - Greenfield 100KSF - Greenfield 50KSF 14 11 December 2008 KSF = 1,000 square feet
- 15. Data center business continuity and disaster recovery strategy Zone A Application Zone B Next generation data centers Next generation data centers Site – 1 Site – 2 Site – 3 Site – 4 Active Active Active Active Active Active Tier 1 Active Active Dark Active Active Dark Dark Dark Active Active Active Active Tier 2 Dark Dark Dark Dark Active Active Active Active Tier 3 Dark Dark Active Dark Active Dark Business Disaster Business Availability continuity Reliability recovery Expandability continuity Agility 15 11 December 2008
- 16. Building the data center of the future Today’s Data Center Next Generation Data Center Traditional Data Center Silo’d, Dedicated Infrastructure Shared, Automated, Virtual, Monolithic Computing Delivered as a Service App1 App2 App3 Integrated, modular apps (SOA) App Server Server Server Shared, virtualized server pool Server/ Storage Shared storage Shared storage Centralized, Rigid Practices Technology Integration Business Integration • Proprietary focus • Islands of technologies Service- • Service-centric IT : infrastructure, (OS/architecture dependent) apps and IT delivered as a service • Data center is the sum of all • Data center service catalog • Partial consolidation, dedicated projects • BU & Application groups provide server and/or application stacks requirements – not solution • Single vendor, hard-coded hard- • Internet enabled • Global with ruthless standardization solution stack • Multi-OS, multi-architecture & Multi- multi- • Policy based automation, dynamic multi-vendor environments multi- resource (re)allocation • Siloed technology and skills • Cost/complexity improved • Modular, virtualized, power and space efficient hardware Built for intra-net use primarily via infrastructure • intra- • Availability and Continuity consolidation and technology integrated with the data center • ‘Static’ Static’ production deployment standardization
- 17. HP network 2008 architecture overview Regional HP Sites Regional sites Inter DC Global MPLS backbone Austin beltway Houston Atlanta Data center MPLS Any site to any site ports DWDM – HP Fiber (RAIL) routing VoIP and toll bypass 17 11 December 2008
- 18. HP software broadly deployed • Global NGDCs − HP Business Availability Center • Monitors UX, Windows & Linux systems; >23,500 nodes; transactions for 1,600 new applications − HP Asset Center • Globally tracks physical & financial views of all client, server, storage & network devices − HP Configuration Management • Configuration management for PC & server software • HP Development Environment − HP Quality Center − Portfolio Management (PPM) • Neoview 18 11 December 2008
- 19. Data center transformation – HP environmental benefits • 2x available power per square foot from average 60W to 120W+ • 60% reduction in annual energy consumption • 65% reduction in energy costs • CO2 emissions reduction equal to 900 km2 of forest-storing carbon for 1 year 19 11 December 2008
- 20. HP data center transformation Simplified infrastructure delivers more Less = More • 30% fewer • 80% more servers processing power • Decreased • Double the storage storage cost (all data replicated) • 50% lower • Triple the networking cost bandwidth • Faster application • Fewer sites rollout 20 11 December 2008
- 21. HP IT mission: Streamlined and focused 21 11 December 2008
- 22. So how can this apply to you?
- 23. What is the Strategic Journey? Operating Model Future Co- ordinated Unified Many companies are currently diversified benefiting from High synergies between Divisions who are free to pursue their strategies, whilst not having fully standardised or integrated business processes across business units. Integrated Replicated Low Diversified Low Standardized High Is Infrastructure transformation staying within a diversified operating model or part of changing it? Adapted from J. Ross, P. Weill, D. Robertson, Enterprise Architecture as Strategy: 11 December Creating a Foundation for Business Execution, HBS Press, 2006. Used with 23 2008 permission.
- 24. Type 1 # Transformation Run a best in class IT Infrastructure Operating Model Diversified Diversified business processes are not • Shift the glass ceiling by standardised or integrated seduction & nudging Process Defined Enterprise wide standards for process definition Application Services Shared and standardised application services and effective lifecycle management Virtualized Services Virtualized shared SOA compliant infrastructure, service process fully defined documented with continuous monitoring Shift the Infrastructure Glass Ceiling 11 December 24 2008
- 25. Type 2# Transformation Change the way business is run Operating Model Remove the glass ceiling Transformed • Top to bottom business & IT Business processes are standardised alignment or integrated + Seduction & nudging • All of Type 1# Process Managed Enterprise-wide governance, single repository, management of variance, global owners Applications Simplified Global applications rolling out reducing duplication, global teams, lifecycle management, transparent shared understanding of landscape Adaptive Shared Services Adaptive pooled automated infrastructure shared services, quality based end to end service management, real time supply and demand 11 December 25 2008
- 26. Choosing the Transformation Type Type #1 IT Transformation: Standardized Type #2 Business Transformation: & Optimized Lean & Mean, Aligned Operating Model Diversified Operating Model Diversified business processes are not Transformed standardised or integrated Business processes are standardised or integrated Process Defined Process Managed Enterprise wide standards for process Enterprise-wide governance, single definition repository, management of variance, global owners Application Services Applications Simplified Shared and standardised application Global applications rolling out services and effective lifecycle reducing duplication, global teams, management lifecycle management, transparent shared understanding of landscape Virtualized Services Virtualized shared SOA compliant AdaptiveShared Services infrastructure, service process fully Adaptive pooled automated defined documented with infrastructure shared services, quality continuous monitoring. IT based end to end service management, real time supply and demand 11 December 26 2008