1© Copyright 2010 EMC Corporation. All rights reserved. The Journey to the Cloud - Delivering IT Infrastructure as a Shared Service Neil Shaw – EMCC Solution Principal 11 th November 2010

2© Copyright 2010 EMC Corporation. All rights reserved. Agenda What is cloud computing? Why cloud? What is IT Infrastructure as a Service? Inhibitors / challenges to cloud adoption Building the cloud A success story Wrap-up

3© Copyright 2010 EMC Corporation. All rights reserved. What is Cloud computing? ▪ Public clouds delivered over Internet ▪ Private clouds subsist in enterprise’s own data centers or via dedicated third-party hosting ▪ Hybrid clouds seamlessly connect (“federate”) public and private External or internal? Cloud computing is a paradigm of computing in which dynamically scalable and often virtualized resources are provided as a service Leverages ultra-high-scale distributed computing technologies pioneered by consumer Web firms 1 “Resources” can include ▪ Compute infrastructure (servers, storage, NW capacity) ▪ Development platforms ▪ Finished SW functionality ▪ Business operations 2 ▪ Underlying technologies and operations abstracted from “user” (can incl. AD teams, employees, customers, etc.) ▪ Users typically billed or charged back on simple pay-per-use basis (as variable opex) 3

4© Copyright 2010 EMC Corporation. All rights reserved. There are four levels of Cloud computing Baa S 4 SaaS PaaS Cloud or Provider or In- house I/S Elements ▪ Tier 2 system integrators who do not have own platform offering ▪ Software development organizations ▪ Enterprises requiring payment solutions, e.g., credit card processing from First Data ▪ SMEs and consumers who benefit from vendors scale, e.g., Consumer example: Gmail ▪ Device makers connecting handhelds to the cloud, e.g., Unisys Virtual Office as a Service, Microsoft/CHT collaboration ▪ Broad customer base from enterprises to SMEs to individual consumers Typical customersExample vendors IaaS can be implemented as ▪ Private Cloud: infrastructure owned/operated by Cloud-user ▪ Public Cloud: infrastructure owned/operated by a third-party, e.g., Amazon EC2/S3, Rackspace Cloud ▪ Hybrid Cloud: infrastructure split between Cloud-user, third party ownership End-points (SW & devices) Multi-tenant applications “Rich” integration platform Business APIs “Foundational” integration platform Dynamic fault tolerance Dynamic deployment/scaling Authentication, billing “Basic” integration platform Runtime frameworks / IDE Middleware Multi-tenant database IT infrastructure software Scalable compute Scalable storage Network security Network Virtual Datacenter IT hardware, facilities Business Processes Capabilities Connected end-user devices Virtualization software Network APIs Virtualized OS Grid based infrastructure mgmt IaaS

5© Copyright 2010 EMC Corporation. All rights reserved. Why Cloud? Increase business agility Regain control Reduce cost CxO Operational efficiencies (headcount reduction) Consolidation of toolsets, infrastructure (maintenance) Improve data centre efficiency (power, cooling, infrastructure utilisation) Reduce on-going IT service delivery costs Scale up and out platform Standard modular building blocks Accelerate application deployment Operational management Improve GRC Easier to secure critical information

6© Copyright 2010 EMC Corporation. All rights reserved. What is IT infrastructure as a service? Shared pools of Infrastructure resources vAPPs Business Organisational alignment Governance model Automated processes Security Disaster Recovery Standard infrastructure service offering Self service provisioning Pay per use

7© Copyright 2010 EMC Corporation. All rights reserved. Cloud changes everything Our mission critical services now run in this single block of virtual infrastructure. We’re taking advantage of the highest levels of resilience available...

8© Copyright 2010 EMC Corporation. All rights reserved. Inhibitors / Challenges to Cloud Adoption Organisation –Step change is required in the way clients will operate IT as a service Culture –Move from technical to service focused culture Policy & Process –Service design –Chargeback & Billing –Configuration and Knowledge Mgmt –Governance Risk and Compliance (GRC) Infrastructure & Toolsets –Multi-tenancy –Security –Network –Maturity of orchestration and automation People –Combined network, storage and server technical skills

9© Copyright 2010 EMC Corporation. All rights reserved. Cloud Service Model Standardised Service Portfolio –Create building blocks of storage, protect, network and compute services Pay per Use (PPU) chargeback IT Service Mapping & Alignment Self-service provisioning portal Service Governance Model Shared pools of Infrastructure resources vAPPs Business Organisational alignment Governance model Automated processes Security Disaster Recovery Standard infrastructure service offering Self service provisioning Pay per use Service Model

10© Copyright 2010 EMC Corporation. All rights reserved. Cloud Infrastructure Model Virtualised infrastructure Standardised and integrated hardware Automated disaster recovery Converged networks Infrastructure resource pools aligned to service offerings Trusted platform Shared pools of Infrastructure resources vAPPs Business Organisational alignment Governance model Automated processes Security Disaster Recovery Standard infrastructure service offering Pay per use Infrastructure Model

11© Copyright 2010 EMC Corporation. All rights reserved. Cloud Operational Model Performance Dashboard Orchestrated service lifecycle management Automated provisioning based on templates Realigned organisation Skills transformation Unified resource management Unified management dashboard Revised security policies Shared pools of Infrastructure resources vAPPs Business Organisational alignment Governance model Automated processes Security Disaster Recovery Standard infrastructure service offering Self service provisioning Pay per use Operational Model

12© Copyright 2010 EMC Corporation. All rights reserved. Where do you start? Understand Current State –Validate costs –Understand application portfolio –Infrastructure assessment Define Future State –Define high-level cloud service model Cloud service offerings Architecture Sourcing and operational model –Select applications based on priority, upgrade cycle, suitability and infrastructure age –Create business and benefits case Create Transformational Roadmap

13© Copyright 2010 EMC Corporation. All rights reserved. The Journey to the Cloud A Success Story

14© Copyright 2010 EMC Corporation. All rights reserved. 3-Phase Journey to the Private Cloud % Virtualised 15% 30% 50% 85% 95% EMC: EMC: EMC: Consolidation and Virtualisation Virtualise production applications Accelerating savings IT-as-a-Service Improve Agility IT Production Lower Costs Business Production Improve Quality of Service “EMC’s journey from 2004–09 has resulted in an estimated savings of $104.5M”

15© Copyright 2010 EMC Corporation. All rights reserved. Storage optimization for virtualized environments Establish five-tiered storage infrastructure Implement EMC software to increase tiering efficiencies, (e.g., archiving, acceleration of disk-based backup) Increase space and energy efficiencies and operational effectiveness. Data center efficiency Virtualize new, dedicated application environments Move from many dedicated physical servers to small number of virtual systems Avoid purchase of 640 new servers Phase One Focus: 2004–2008 Replace EOSL hardware enabling decommission of 424 physical servers. Replace with 62 virtualized servers Replace EOSL systems with shared, virtualized servers BENEFITS REALIZED Power and space savings $12M $74M Data center equipment savings Storage managed by each FTE 230 TB 34% Increase in energy efficiency 60M Pounds of CO 2 reduced

16© Copyright 2010 EMC Corporation. All rights reserved. Phase Two Focus: 2009–2010 Server hyper-consolidation tactics All new applications on virtual machines and consolidated shared application platforms Designed to achieve 40:1 consolidation ratios and optimal CPU utilization Project to avoid purchase of 750 servers over 5 years Migrate applications currently running on 1,600 servers to 1,600 VMs running on 40 servers Enable hosting of new applications on demand, providing faster service when users need infrastructure Sweep-the-floor initiative

17© Copyright 2010 EMC Corporation. All rights reserved. Phase Two Focus: 2009–2010 Storage and desktop optimization Storage optimization Continuous improvement in levels of storage consolidation Adoption of FAST and Enterprise Flash drives Continued migration of tape to disk enabling decommission of majority of tape libraries Data deduplication increases efficiency of backup to disk VDI pilot with 600 users worldwide using virtualized desktops Goal of 100% virtualized desktops by 2012 Desktop virtualization BENEFITS REALIZED 30M 290 TB 60% $19M* $18M* OpEx savings Data center equipment savings Increase in remote backup/recovery success Storage managed by each FTE Pounds of CO 2 reduced

18© Copyright 2010 EMC Corporation. All rights reserved. Wrap-Up Cloud is a disruptive model that will fundamentally change the way IT is built, operated and consumed EMC technologies and services can accelerate and de-risk the journey But, a transformational approach is needed to deliver the cloud vision How do you build momentum for change? –Business case for transformation

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