1 AaS 1.1 Knowing your Cost Shawn Arcus – Enterprise Data Center Manager Robert Rice – Vice President, Infrastructure & IT OPs

2 Data Center World – Certified Vendor Neutral Each presenter is required to certify that their presentation will be vendor-neutral. As an attendee you have a right to enforce this policy of having no sales pitch within a session by alerting the speaker if you feel the session is not being presented in a vendor neutral fashion. If the issue continues to be a problem, please alert Data Center World staff after the session is complete.

3 Session 2 - Knowing your Cost Prior to potentially changing any service model, it is wise to know your current internal cost, and which portions of that cost may be modified if the service model changes, including fluctuating and hidden costs.

4 Session Outline 1.Intro 2.Where We Were 3.Where We're Going 4.True Costs of Infrastructure 5.Our Lessons 6.Q&A

5 Organization Overview St. Joseph Health (SJH) is an integrated Catholic health care delivery system sponsored by the St. Joseph Health Ministry. It is organized into three regions: Northern California Southern California West Texas/Eastern New Mexico SJH maintains a "continuum of care," matched to the diverse needs of the urban centers, smaller cities and rural communities who depend on us every day. SJH Core Statistics Facilities: 16 (California, Texas & New Mexico) Employees: 24,279 Total net revenue: $5 billion Total licensed beds: 4,149 Total discharges: 142,093 Total outpatient visits: 4,015,540 ED visits: 513,805 (non-admitted patients) Home Health visits: 264,753

6 Where We Were: Physical Topology

7 Virtual Datacenter Centralized automated management model Local or Central resource pool for VM creation (based on software need) Leverage existing infrastructure Network virtualization to expand security management Minimal impact implementation (install local capacity, migrate VM’s local, migrate VM’s central) Where We Are Going: Software Defined Hybrid Datacenter

8 Legacy Environment SaaSPrivate CloudRegional CloudPublic Cloud Description Needed for vendor specific requirements or incompatible with virtualization Continually shrinking footprint Cloud hosted application services Centralized management Hosted in SJH LVDC Centralized management Hosted regionally Cloud hosted by vendors Used for non-production systems Quick spin-up/spin-down Hosting Location Las Vegas Datacenter Regional Datacenter Vendor hosted Las Vegas Datacenter Regional Datacenter Ministry Vendor Cloud Hosted Performance Profile Non-standard vendor requirements High performance Dependent on use and scale of solution Low, Mid, High performance Low, Mid-tier performance Disaster Recovery Test/Dev/QA Non-Production Availability Model Requires custom design Highly available % SLA managed Built-in HA DR replication to offsite or Cloud (FY’17) Built-in HA DR replication to LVDC or Cloud (FY’17) Built-in HA Built-in DR Automation Manual staff support Manual staff management Limited automation Solution managed by vendor Integration with SJH systems Automated provisioning Automated management Automated provisioning Automated management Automated provisioning Automated management Scalability Manual scalability Capital investment On-demand scalability negotiated into SLA’s and contract Compute/storage on-demand scalability Increased capacity requires capital investment Limited compute/storage on- demand scalability Increased capacity requires capital investment On-demand scalability FY’16 In-Progress FY’17 Current Current/As Needed Technology Stack

9 18 Standard Server Builds High Density Regional 62.8 % 30.4 % 6.8% Standardization Footprint Power Cooling Cabling Maintenance

10 True Costs of Infrastructure The buying decision must take the Total Cost of Ownership (TCO) in to account—not just the initial purchasing budget—so that the best purchase choice for the organization can be made. Consider all OpEx costs before making a purchasing decision. Financial modeling of the TCO for various solutions under consideration should be utilized. Lower OpEx costs may more than make up for higher CapEx costs over the equipment production lifecycle. Purchasing decisions in the Data Center world must utilize the basic concept of total cost of ownership (TCO) – the sum of initial capital expenditures (CapEx) added to ongoing operational expenditures (OpEx). TCO is a critical metric when designing infrastructure and selecting equipment.

11 True Costs of Infrastructure Storage Array Storage Media Storage Controller(s) Management Server(s) Redundancy? Networking Gear Power Distribution Remote/KVM Equipment Cabling Shipping Setup / Installation CapEx Costs Physical Infrastructure Space / Power / Cooling Remote Hands Software / Upgrades Warranty Storage / System Admins Staff Management Connectivity / Bandwidth Automation Monitoring Security / Regulatory OpEx Costs

12 Locally/Remotely Hosted Environment Centrally Hosted Environment ApplicationApp Required ConfigurationsSecurity ConfigurationsMiddleware (IIS/SQL)Operating SystemVirtual ServerStorageHypervisor Administrative Controls Physical Hardware Automation (Puppet/GitHub) Physical Network Virtual Network App VM’sApplicationApp Required ConfigurationsSecurity ConfigurationsMiddleware (IIS/SQL)Operating SystemVirtual ServerStorageHypervisorApp VM’s Physical Hardware Physical Systems/Apps Physical Network User Endpoint User VDI Physical Systems/AppsUser Endpoint Our Lessons: A New Framework Is Needed

13 Manage local virtualization Install local hyper-converged (HC) platform VPN over existing or Implement direct circuit Network virtualization expands management footprint Migrate local systems/VMs into HC platform Zero-touch remote management Automated BC/DR VM’s implemented in virtual datacenter Local HC or LVDC Private Cloud Snapshot VM’s to local excess capacity Periodic snapshot replication to LVDC VBlock Other local HC Cloud provider Multi-tenant hosting Capacity in Private Cloud or Regional Segmented separately for multi-tenant Menu-based provisioning Remote support SLA’s for performance, recovery, etc. Horizontal Scalability Adding sites/location Adding capacity at local site Adding capacity in LVDC Simply increasing resource pool for storage/compute Management of systems is identical, and does not increase overhead Our Lessons: Understand Our Success Use Cases

14 Preparation Design Implement Preparation Design Implement Formalize Strategy Executive & Peer Review Tech Design Approach & Roadmap Implement Configure/Test Implement Pilot Implement Production DirectorNotes 1. Application Operations Complete In-Progress N/A 2. Infrastructure Operations In-ProgressTBDN/A 3. Enterprise Architecture Framework Complete In-Progress 4. Application Performance Management Complete 5. Continuous Delivery Lifecycle FY’17 6. Support Model / Service Delivery Complete In-Progress 7. Key Performance/Risk Metrics & SLA’s In-ProgressTBD Quote/ Order Kick-Off / Delivery Tech Design Approach & Roadmap Implement Configure/Test Implement Pilot Implement Production DirectorNotes 1. Private Cloud (VBlock) Complete 2. Hyper-Converged Platform Complete 3. Automation (VRealize) Complete In-Progress 4. Configuration Management (Puppet) Complete In-Progress 5. Code Management (GitHub) Complete In-Progress 6. Supporting Infrastructure (AD, Network, etc) Complete In-Progress 7. IT Policies & Standards CompleteTBD Governance & Strategy Technical & Vendor Responsible Our Lessons: Mapping The Milestones

15 Questions?

16 Thank You Speaker information & contact: Shawn Arcus – Enterprise Data Center Manager Robert Rice – Vice President, Infrastructure & IT Ops