1. Cloud Computing inside R&D at Eli Lilly and Company
Dave Powers – LRL R&D IT
Andrew Kaczorek – LRL R&D IT
Chris Chalfant – LRL R&D IT
04 March 2010

2. Who is Eli Lilly and Company?
A heritage more than 130 years strong: company founded on May 10, 1876
Headquarters located in Indianapolis, Indiana, U.S.A.
Approximately 39,140 employees worldwide
Approximately 7,486 employees engaged in research and development
Clinical research conducted in more than 50 countries
Research and development facilities located in 8 countries
Manufacturing plants located in 13 countries
Products marketed in 143 countries

3. Agenda More expensive per unit Low performance Limited scalability
FUD and hype factors are off the charts

4. Benefits for the Enterprise
On-demand and elastic
Provision time in minutes versus weeks
Utilization rates at or near 100%
Rent versus own
Transparency of cost
Ecosystem of innovation

5. Current Time (minutes)
This is Disruptive
Scenario
Current Time (minutes)
Cloud Time (minutes)
New Server
72,000
(7.5 weeks) 5
New Collaboration
81,000
(8 weeks)
64-node Linux cluster
130,000
(12 weeks)

6. Clayton M. Christensen

7. Lilly IT: Key Business Challenges
Fixed costs
At the same time, moving to a FIPNET model:
collaboration
data sharing
software code/development sharing
computing resource consumption increasing
network access to data from anywhere at any time
security
Dependence on robust, reliable, scalable, flexible, secure infrastructure
Computing resource consumption increasing
Sense of urgency to change how we work

8. Lilly IT: Key Business Challenges
Lilly stands to lose $10 billion in annual revenues between now and the end of almost half its 2009 sales - as patents on three key drugs expire.
The top six U.S. drug makers all face such "patent cliffs," but Lilly's is one of the steepest.

9. Lilly environment 2 FTEs support and manage
1300 cores / 700GB RAM / 50TB storage
IBM blades/ IBRIX / EMC SAN
15 primary apps running (HTC)
15-20 primary power users
94% = Average daily utilization in Q3/2009

10. Let’s run the numbers: Q3/2009
Assumptions: Amazon ec2 (small instances)+ CycleComputing service
Owner Compute Hours Cost (Jan 1, 2009) Cost(Dec. 1, 2009)
Project1 1,594,606 $239,191 $199,326
Project2 574,884 $86,232 $73,861
Project3 124,332 $18,650 $15,542
Project4 64,376 $9,656 $8,047
Project5 19,144 $2,872 $2,393
Project6 18,862 $2,829 $2,358
Project7 16,284 $2,442 $2,036
Project8 15,664 $2,350 $1,958
Project9 13,330 $2,000 $1,666
Project10 11,568 $1,735 $1,446
Project11 7,526 $1,129 $941
Project12 6,356 $953 $795
Project13 5,816 $872 $727
Project14 4,876 $731 $610
Q3/2009 TOTAL 2,477,624 $371,642 $309,703

11. Let’s run the numbers: Q3/2009
Assumptions: Amazon ec2 (medium instances)+ CycleComputing service
Owner Compute Hours Cost (Jan 1, 2009) Cost(Dec. 1, 2009)
Project1 1,594,606 $398,652 $335,000
Project2 574,884 $143,721 $120,700
Project3 124,332 $31,100 $26,100
Project4 64,376 $16,100 $13,500
Project5 19,144 $4,800 $4,000
Project6 18,862 $4,700 $3,960
Project7 16,284 $4,000 $3,420
Project8 15,664 $3, 900 $3,290
Project9 13,330 $3,300 $2,800
Project10 11,568 $2,900 $2,430
Project11 7,526 $1,900 $1,600
Project12 6,356 $1,600 $1,335
Project13 5,816 $1,500 $1,220
Project14 4,876 $1,200 $1,020
Q3/2009 TOTAL 2,477,624 $ 619,406 $520,300

12. Cost Comparison Q3/2009
Q3/2009
Compute Hours Cost (Jan 1, 2009) Cost(Dec. 1, 2009)
Small Instances 2,477,624 $ 371, $ 309,703
Medium Instances 2,477, $ 619, $ 520,300
In-house* ,477, $ 400, $ 400,000
Assumes internal costs (approximation, not fully baked)

13. Cost Comparison Q1/2010 Compute Hours Cost (Jan 1, 2010) Q1/2010
Small Instances , $ 186,000
Medium Instances , $ 312,000
In-house* , $ 400,000
Assumes internal costs (approximation, not fully baked)

14. Paying for the white space!
Full capacity
January 2010 Utilization

15. Paying for the white space!
PAID for THIS
Only used THIS

16. Scale testing with real workloads
Gene Sequence Analysis (~800 core-hours)
Gene Mapping and Alignment (~800 core-hours)
Proteomics / Biomarker Analysis (~900 core-hours)

17. Clayton M. Christensen

18. Acknowledgements MaryJo Zaborowski – Executive VP of LRL IT
Bob Oppelt – Sr. Director
Ken Harman – Manager
Chris Reed – Security