1. Oracle Cloud Computing Strategy
Dhruv Singhal
Sr. Director
Oracle Fusion Middleware Sales Consulting

2. The following is intended to outline our general product direction
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remain at the sole discretion of Oracle.

3. AGENDA What is Cloud Computing Oracle’s Strategy for Cloud Computing
Where we can Work Together
Private Cloud
Public Cloud

4. Complete. Open. Integrated. Best in Class.

5. What Is Cloud Computing5

6. NIST Definition of Cloud Computing
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of:
5 Essential Characteristics
On-demand self-service
Resource pooling
Rapid elasticity
Measured service
Broad network access
3 Service Models
SaaS
PaaS
IaaS
3 Deployment Models
Public Cloud
Private Cloud
Hybrid Cloud
One of the areas of confusion is the definition of Cloud Computing. There are many definitions of Cloud Computing out there. Here is one of them that seems to represent the most commonly held view. It’s from the National Institute of Standards (NIST) and seems to be gaining in popularity, not only in the US, but also the rest of the world as well.
The definition is essentially about “on-demand access to a shared pool of computing resources.”
Breaking it down, cloud computing is composed of:
5 essential characteristics
3 service models
4 deployment models
The 5 essential characteristics are key:
On demand self-service – provisioning, monitoring, management control
Resource pooling – implies sharing and a level of abstraction between consumers and services
Rapid elasticity – the ability to quickly scale up/down as needed
Measured service – metering utilization for either internal chargeback (private cloud) or external billing (public cloud)
Broad network access – typically means access through a browser on any networked device
I’ll cover the 3 service models and 4 deployment models on the next few slides.
Source: NIST Definition of Cloud Computing v15

7. SaaS, PaaS and IaaS
Applications delivered as a service to end-users over the Internet
Software as a Service
App development & deployment platform delivered as a service
Platform as a Service
“Software as a Service” generally refers to applications that are delivered to END-USERS over the Internet. There are hundreds of SaaS providers out there covering a wide variety of applications. Oracle CRM On Demand is an example of a SaaS service. Another example is Salesforce.com
“Platform as a Service” generally refers to an application development and deployment platform delivered as a service to DEVELOPERS, allowing them to quickly build and deploy a SaaS application to end-users. These platform are often built on a grid computing architecture and include database and middleware. They are often specific to a language or API. For example Google AppEngine is Java and Python. EngineYard is Ruby on Rails. Salesforce.com’s Force.com is a proprietary variation of Java.
Finally, “Infrastructure as a Service” generally refers to computing hardware (servers, storage and network) delivered as a service. This typically includes the associated software as well: operating systems, virtualization, clustering, etc. The best known example of this is Amazon Web Services, which offers Elastic Compute Cloud (EC2) for compute servers and Simple Storage Service (S3) for storage.
Server, storage and network hardware and associated software delivered as a service
Infrastructure as a Service

8. Public Clouds and Private Clouds
Used by multiple tenants on a shared basis
Hosted and managed by cloud service provider
Limited variety of offerings
Exclusively used by a single organization
Controlled and managed by in-house IT
Large number of applications I N T E R I N T R A E
SaaS
SaaS
PaaS
PaaS
IaaS
IaaS
Users
Both offer:
High efficiency
High availability
Elastic capacity
Animated slide.
Let’s look closer at the distinction between public and private clouds.
[CLICK] A public cloud is shared by multiple tenants, whereas a private cloud is for the exclusive use of a single organization. A public cloud is hosted and managed by the cloud service provider, and a private cloud is controlled and managed by in-house IT (of course, it’s also possible to outsource this, so there are such things as “hosted private clouds” or “virtual private clouds” but for the sake of simplicity, it’s easier to think of private clouds as in-house. A third observation is that public clouds usually offer a very limited variety of offerings, in order to be efficient, while a private cloud may need to provide a large number applications. Within a large enterprise, there are typically hundreds to thousands of apps.
The NIST model includes “community clouds” which are essentially semi-private clouds for use by a group related organizations, such as all the schools in the University of California system, all the branches of the military, or all the parts suppliers to Ford or GM. And a hybrid cloud is some combination of the other three…typically for a single application. (if an organization has 1 app in a private cloud and a different app in a public cloud, that’s not considered a hybrid cloud).
[CLICK] Each has its own unique advantages, and they have some common advantages as well. Because both public and private clouds are based on virtualization and grid computing, they enjoy high efficiency and utilization rates, elastic capacity for limitless scale-out and pay-as-you-go equipment procurement, and also high availability for maintaining high user service levels and business continuity.
Public clouds are often faster and cheaper to get started, since there’s nothing to install. They offer economies of scale which the provider can pass on to customers. They don’t require IT to manage and administer, update, patch, etc. And they are paid for as Operating Expense, which can be simpler from a budgeting standpoint.
Private clouds offer greater control over security and data privacy, compliance (this can be a big issue since there are some regulatory requirements about where data resides, audit trails, etc. that public clouds cannot meet today), and also quality of service, since private clouds can manage network bandwidth and implement optimizations that public clouds don’t allow. Private clouds also provide easier integration with other systems that are on-premise. They are potentially lower cost over the long term…breakeven is in 2 or 3 years. After that, public clouds become more expensive. And private clouds are paid for as both Capital Expense (with depreciation) and Operating Expense.
Enterprises will make these trade-offs and will likely run a mix of public and private clouds. Even Oracle, which operates one of the biggest private clouds internally, also uses Amazon EC2 for some things, such as marketing demos. One popular use case is Dev & Test…engineering can use public cloud resources to set up development and test machines without waiting for IT to set them up. Another interesting use case is doing disaster recovery offsite in a public cloud.
Public Clouds:
Lower upfront costs
Economies of scale
Simpler to manage
OpEx
Private Cloud:
Lower total costs
Greater control over security, compliance & quality of service
Easier integration
CapEx & OpEx

9. Why Are Enterprises Interested in Cloud? Benefits of Cloud Computing
Speed
Cost
What are the key benefits that enterprises see in Cloud Computing? Here’s are some recent results from a survey by IDC.
Benefits: the top reason to use cloud computing is speed/ease of deployment, and the next 3 are all related to lower costs.
Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," ( October 2, 2008

10. What Are the Challenges Enterprises Face? Challenges of Cloud Computing
Security
QoS
Fit
And what are the key concerns that enterprises see in Cloud Computing? Here’s are results from the same survey by IDC.
Issues: Security is the top issue. The next 2 (Perf & Avail) relate to Quality of Service. The next 2 relate to concerns about how well the cloud application fits the business requirements. There is also concern about long-term costs, lock-in and regulatory compliance.
Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," ( October 2, 2008

11. Oracle Cloud Strategy 11

12. Oracle Cloud Computing Strategy
Our objectives:
Ensure that cloud computing is fully enterprise grade
Support both public and private cloud computing – give customers choice
Public Clouds
Private Cloud
Offer Applications deployed in private shared services environment or via public SaaS
SaaS
SaaS I N
T E R N E T I N T R A E
SaaS
Offer Technology to build private clouds or run in public clouds
IaaS
PaaS
PaaS
PaaS
This slide has animations/builds.
So, what is Oracle’s overall cloud computing strategy? Our objectives are first to ensure that cloud computing is fully enterprise grade, that is, that is high performance, scalability, reliability, availability, security and standards-based for portability and interoperability. All the “ilities”… Secondly, we will support both public and private cloud computing in order to give customers choice.
To accomplish this objectives, we have a 2-pronged strategy:
[CLICK] First, we offer Technology to enable enterprises to build private clouds or run in public clouds
[CLICK] Second, we offer Apps that are deployed in either a private shared services environment or public SaaS
Let’s drill down into each of these…
IaaS
IaaS
Users

13. Oracle Cloud Computing Strategy
Oracle Applications On Demand
Oracle Applications
Public Clouds
Private Cloud
SaaS
SaaS I N
T E R N E T I N T R A E
SaaS
SaaS
Oracle Technology in public clouds
PaaS
PaaS
PaaS
PaaS
IaaS
IaaS
IaaS
IaaS
This slide has animations/builds.
First for Technology:
[CLICK] We offer Technology to enterprises building Private Clouds. We will talk in depth about the “Oracle Private PaaS”
[CLICK] We also offer enterprises the ability to run Oracle Technology in public clouds like Amazon and Rackspace.
Then for Applications:
[CLICK] We offer Oracle Applications running in a shared services private cloud, and
[CLICK] We also offer a number of Applications as public cloud services from our Oracle On Demand business.
We’re now going to talk more about each of these 4 areas. The axes are Public and Private, Tech and Apps. But we will focus more on the Technology side in this presentation and the following presentations.
Users
Oracle Private PaaS

14. Oracle Cloud Platform for PaaS
Application 1
Application 2
Application 3
Database Grid: Oracle Database, RAC, ASM, Partitioning, IMDB Cache, Active Data Guard, Database Security
Application Grid: WebLogic Server, Coherence, Tuxedo, JRockit
Shared Services
Integration: SOA Suite
Security: Identity Mgmt
Process Mgmt: BPM Suite
User Interaction: WebCenter
Platform as a Service
Cloud Management
Application Quality Management
Application Performance Management
Configuration & Compliance
Lifecycle Management
Oracle Enterprise Manager
Now let’s talk about WHAT is a Private PaaS.
A Private PaaS is made up of a number of critical building blocks. Oracle has the most comprehensive set of building blocks in the industry, the most “complete, open and integrated” set of building blocks.
From the bottom up, this includes Oracle VM for server virtualization, Oracle Enterprise Linux our OS, the Oracle Database grid (made up of RAC, ASM, In-Memory Database Cache, and other database options and features). Then on top of that, Oracle offers our application grid, which includes WebLogic Server, Coherence, Tuxedo and JRockit, and on top of that, a number of value-added services: SOA and BPM for integration and process management, identity and access management for security, and WebCenter our portal for user interaction.
We also offer very comprehensive “Cloud Management” capabilities based on Oracle Enterprise Manager. EM has very comprehensive capabilities to manage the full “Cloud Platform” stack including middleware, database, OS and virtualization. For example, Real User Experience Insight (RUEI) enables us to manage top-down from the application end-user’s perspective things like performance, availability and behavior patterns…something that’s useful for SLA/QoS management for private clouds.
Our second Keynote explains Private PaaS in more depth, and we have a separate session to talk more about Cloud Management.
Infrastructure as a Service
Operating Systems: Oracle Enterprise Linux
Virtualization: Oracle VM
Servers
Storage

15. Applying Cloud’s Greatest Value Infrastructure or Platform?
“Conventional” Cloud Wisdom
Rethinking the Value of Cloud
Cloud Implementation
Cloud Implementation
PaaS (FMW, DB)
PaaS (FMW, DB)
Where should you focus your cloud efforts?
IaaS (virtualization)
De-position cloud = virtualization thinking. Consider your cloud implementation- where do you want to focus your efforts- on servers or applications? PaaS adds far more value to business than IaaS.
IaaS (Virtualization)
Applications, not infrastructure, drive your business

16. Oracle SaaS Applications Available Today
CRM
Wide range of applications
Integrated
Enterprise-grade
Oracle offers a portfolio of SaaS applications today which span a wide range of enterprise processes, are fully enterprise-grade thanks the fact they are built on Oracle’s leading infrastructure software, which is complete, open standards-based and pre-integrated (C-O-I).
Currently (October 2009), our 3 SaaS offerings are:
CRM On Demand
Beehive On Demand (enterprise collaboration)
Oracle Argus On Demand (for drug safety / adverse incident reporting)
More to come…
Collaboration
Life Sciences: Drug Safety 16

17. Oracle On Demand Flexible Deployment Options
Multi-Tenant SaaS
Single-Tenant SaaS
Hosted & Managed
Remote Management
On-Premise
Public
Private
Pay-per-use
Licensed
Oracle On Demand is the name of a wide spectrum of service offerings from Oracle that give customers the choice of deploying on-premise in the own data centers or in Oracle’s data centers, managed by Oracle or by the customer, and how maintenance and optimization get done.
At the far right is the traditional software license and on-site deployment model where the customer licenses the software and deploys and manages it themselves in their own data centers. Moving over towards the left, Oracle On Demand offers a remote management service where we can manage the software for you – the software is still deployed in your own data centers. Oracle will also do hosting and management at Oracle’s data centers – in this model, the customer buys a perpetual license and annual maintenance, and pays Oracle a fee to provide hosting/management services.
The two models at the far left of this are both considered SaaS, meaning the customer is paying-per-use of the software. A rental. Or a longer-term lease. One is a single-tenant model where the customer gets a dedicated system, which can be optimized for the customer and for which the customer has a degree of control, such as specifying when maintenance gets done for example. In a multi-tenant model, the customer shares resources with other customers, so the cost is lower, but the vendor must treat the group of customers exactly the same in order to get the cost efficiencies out of this model.
Oracle On Demand offers the 4 deployment options towards the left side of this picture.
OpEx
CapEx & OpEx
Off-premise
On-premise
Managed by vendor
Managed by Customer
Vendor scheduled maintenance
Customer scheduled maintenance 17 17

18. Pre Requisites for Cloud Computing
Virtualisation & Grid Computing
Provisioning
Strong Management Capabilities
Rapid Business Process Configuration
Grid Enabled Data Center

19. Virtualization - Storage, Server, Application
Storage Virtualization
Server Virtualization
Application Virtualization
Automated Storage Mgmt.
Oracle VM
Oracle VM
Compression
Solaris Containers
Assembly Builder
Storage Connect
Dynamic Domains
Built in Multi-Tenancy
Open Storage

20. Provisioning Life Cycle
2. App Set Up
Department App Owner
1. Cloud Set Up
Central IT
Build app using shared components
Set up self-service portal
3. App Use
Dept App
Deploy using self service
Set up shared components
Set up PaaS
App Users
Use app
4. App Admin
Shared Components
Self-Service Interface
App Owner
I would like to use this slide showing the lifecycle of how a private cloud would work within an enterprise. Note the different roles.
1. You have [click] a central IT function that initially sets up the platform, [click] installing the private PaaS, [click] building the self-service Web-based interface perhaps as a portal, and [click] creating some shareable components (may be services, processes or UI components).
2. Next, a departmental app owner [click] can take advantage of the PaaS and shared component to more quickly assemble the app [click] and deploy it through self-service [click]. If their role entitles them to make that request, it is automatically provisioned. If not, it gets routed to their management and/or IT for workflow approval…just like a procurement process.
3. Then you have [click] the users of the department apps, who may also employees within that department, other departments, partners, or customers.
4. Finally, there’s application administration [click]. An app owner goes through self-service to manage the app in the private cloud. The owner can monitor and manage the app, adjust capacity if necessary and tracks usage (metering) and how much they are being charged for use of the cloud resources.
So, this PaaS shows some of the key characteristics of cloud computing: self-service, shared services, dynamic provisioning, elastic scalabilty and metering/chargeback.
Oracle VM
Oracle Enterprise Linux
Oracle Database
Oracle Fusion Middleware
Oracle Enterprise Manager
Manage app
Adjust capacity
Review chargeback

21. Key Enterprise Manager Capabilities for Cloud
‘Out-of-the-Box’ Cloud Solutions
Capacity & Consolidation Planner
Policy-based Workload Management
Self-Service Application
Cloud Setup
Metering & Chargeback
Assembly Packaging
Foundation Capabilities
Lifecycle Management
Configuration and Compliance
Application Performance Management
Application Quality Management
Dynamic Resource Management
Compliance Dashboards
Real User Monitoring
Functional/Load Testing
Patching
Application Configuration Management
SOA, Java, JVM
Real Application Testing
Oracle Enterprise Manager offers capabilities today that can help customers on the left side of the previous slide. It also has capabilities today to help customers who identified themselves on the right hand side of the previous slide. We will cover these areas. We will also cover some very exciting new capabilities that are upcoming. The new capabilities will enable you to deploy out-of-box cloud management solutions.
It is important to note that unless the foundational capabilities are in place, you will not maximize the benefits of cloud computing. So it pays to be honest about your own IT management capabilities and set realistic objectives to ensure your path to the cloud offers the maximum benefit.
Provisioning
Collection, Tracking, History
Diagnostics, Tuning
Data Masking
Key:
Existing Capability
Planned Capability
Major Enhancement 21

22. Data Center Architecture
1 Oracle Exalogic Elastic Cloud
1 Oracle Exadata Database Machine
100s of
Application Server
Machines
100s of
Database Server
Machines

23. Oracle Exadata X2-8 Fastest for Data Warehouse & OLTP
Oracle Database Server Grid
2 8-Socket Intel Servers
128 Cores
2 Terabyte DRAM
Fastest for Data Warehouse & OLTP
Best Data Warehouse & OLTP Cost/Performance
100% Fault Tolerant & Scalable On-Demand
Software Breakthroughs
Exadata Storage Grid
Smart Flash Cache
Hybrid Columnar Compression
Secure Database Machine
Unified Server/Storage Network
40 Gb/sec Infiniband Links
880 Gb/sec Aggregate Throughput
10 Gigabit Ethernet to Data Center
Exadata Storage Server Grid
14 Storage Servers
5TB flash storage
336 TB Disk Storage

24. Oracle Exalogic Elastic Cloud
Fastest Java Performance
Best Java Cost/Performance
100% Fault Tolerant & Scalable On-Demand
Software Breakthroughs
Network Performance with Zero Buffer Copies
Parallel Workload Scheduling
Dynamic Workload Balancing and Transaction Affinity with Database
Built in Application & Network Isolation for Consolidation
Oracle Weblogic Server Grid
30 Compute Servers; 360 Cores
2.8 TB DRAM
960 GB Solid-state Disk
Infiniband Network
40 Gb/sec Inifiband Links
1.2 micro second latency
10 Gigabit Ethernet out
Integrated Storage Appliance
Software Images & Application Files
Patch Centrally
40 TB SAS Disk Storage
Caches

25. Customer: Credit Suisse
Reduce Cost: Standardized Application Platform on WebLogic
Customer Use Case
Single integrated set of components and processes to support application development and operations
Solution
WebLogic Server
Key Product Capabilities Used
Scripted WLS instance creation
Automatic generation of application server configurations
Enterprise Messaging (JMS)
Provides a Self-tuning platform
WebLogic Portal on roadmap
Environment
Custom JEE applications
Underlying Problems
Handcrafted heterogeneous servers were expensive to build, maintain.
Each application server type required unique admin.
App server maintenance a key challenge.
Audit and regulatory compliance at risk.
Developers assisting production support issues
Benefits for Customer
Demonstrated server consolidation ration of 1:7 across 200 applications.
One-time development costs reduced by 30%
Recurring development costs reduced by 35%
Applications more secure, fault tolerant, consistent

26. Customer: HP Solution Customer Use Case Key Product Capabilities Used
Reduce Cost: Consolidate on WebLogic Server
Customer Use Case
Consolidation of application infrastructure to create a shared services platform
Solution
WebLogic Server
Key Product Capabilities Used
Standardization of middleware stack. WebLogic Server versions limited to 9.2 and 10.3
Real Operations Automation
Standards based administrative /operational scripting languag
Recording of WebLogic Server console interactions as a runnable script
Automated patch staging / application
Self-tuning platform
Self tuning application server
Environment
Custom JEE applications
Underlying Problems
Applications deployed and maintained by individual business units
Multiple versions of the middleware stack in use
Existing development platform complex and costly to manage and maintain
Low hardware utilization
Benefits for Customer
Centralized Infrastructure. Centralized Management
Reduced cost of operations – admin resources reduced from 50 to 5. Approximately 200 apps including PeopleSoft HR on 1800 instances of WLS
Much improved QOS

27. Running Oracle in Public Clouds
At Oracle OpenWorld 2008, Oracle announced that we would enable customers to run Oracle products in public clouds. The first was Amazon’s Elastic Compute Cloud (EC2), part of Amazon Web Services (AWS), and our intent is to support other public IaaS cloud providers as well. Specifically, we allow customers to use their existing licenses or purchase new licenses for Oracle Database, Oracle Fusion Middleware and Oracle Enterprise Manager, and run those in either the own data centers or in EC2. Oracle will provide support for our products running in EC2.
You will soon be able to run Oracle Technology in Rackspace as well. They are building a public PaaS offering based on Oracle’s Technology stack including WebLogic Server, Oracle Database RAC, Oracle Enterprise Linux and Oracle VM.
Oracle Database, Fusion Middleware & Enterprise Manager supported on EC2
Amazon Machine Images (AMIs)
Oracle Database Secure Backup to S3
Self-service Public PaaS based on Oracle VM, Oracle Enterprise Linux, Oracle Database RAC and Oracle WebLogic Server

28. Rackspace Self-Service Public PaaS WebLogic Server, Oracle Database, RAC, Oracle Enterprise Linux, Oracle VM
© 2009 Oracle 28 28

29. Where We can Work Together29

30. Private Cloud Consolidate Data Centers
Standardise Database and Application Server
Use Virtualisation to optimise use of H/W resources
Use Grid Computing to ease allocation/de-allocation
Automate Provisioning/De-Provisioning
Self Service Portal for H/W and S/W environments
Charge Back to User Departments/Companies

31. Opportunities for Public Cloud Computing
State Data Centers
Can host applications of multiple government departments on a public/private cloud
Educational Institutes
Peak Load on declaration of Results, Filing of applications
Campus Based solutions
Pan-India applications used by different states
Same application being used by different states can be centrally hosted on a cloud
eg. Public Distribution System (PDS) application
Public clouds hosted by System Integrators/ISVs
Can provide cloud as a service
Can host various applications for customers on a cloud
On Demand Environments for Load Testing, Migration