© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Transforming theSAP DatacenterDurgadutt NedungadiDirector, Marketing & Alliances

2 11 June 2008

1-Techtarget 2008, 2- IDC 2007, 3- Data Center Institute, 2007

• By 2010, more than half of all data centers will have torelocate to new facilities 3

• More than 40% of data centers will be replaced within thenext 10 years 2

• Over the next 5 years power failures and limits on poweravailability will halt data center operations at more than90% of all companies 3

• Disaster recovery is the number one IT project for 20081

• Within the next 5 years, 1 out of every 4 data centers willexperience a business disruption 3

• With virtualization, server management costs are increasing4 times faster than new server spending 2

Datacenters today - In the eye of thestorm!

3 11 June 2008

HP’s vision for the Next GenerationData Center

• Greening of data centers• Delivered as standard IT

services to the business• Infrastructure and

applications optimized andshared across businesses

• 24x7, lights-out, modular• Managed through

automated IT processes• Built-in business continuity

and availability• Flexible sourcing

Art of the possible: transforming datacenter for better business outcomes

HP Data Center Transformation

Grow business

Energy and spaceefficient Always on Global and virtual Service oriented

and automated

Data center desired state

Reduce costs Mitigate risk

Business outcomes

Management & Operations

Applications & Information

IT Infrastructure

Facilities

Strategy Design Operation Transition Continual improvement

5 11 June 2008

Data center transformation servicesactivities & deliverables

ContinualimprovementOperationTransitionDesignStrategy

• Deployment• Test & acceptance

planning• Transition to

outsourcing• Application,

infrastructuremigration

• Education

• Server, storage,network,applicationoperation

• Ongoingoutsourcing

• Critical facilitiesoperations

• Support

• Continualeducation

• Outsourcinginnovation

• Servicemanagement

• Improvementassessments

• Discovery andassessments

• Business casedevelopment

• Facilities, ITinfrastructure,applicationsstrategy

• Critical facilitiesdesign

• IT infrastructuredesign

• Continuity, securitydesign

• Servicemanagementdesign

• Transformationimplementation

• Deployment, test,acceptance plans

• Project, usertrainings

• Facilities and IToperationalmanuals

• Support plans,contracts, SLAs

• Day-to-dayoperations

• Trainings• Process technology

and facilitiesimprovementrecommendations

• Data centerclassification andsrategy masterplan

• Consolidationstrategy

• Feasibility study

• Facilities designand blueprint

• IT architecture anddesign

• DC operating &governance andcompliance model

• Implementation andtransition plan

6 11 June 2008

Scope of Data Center TransformationDomains

IT Infrastructure• Server, storage, network

consolidation• Virtualization• Application infrastructure• Unified communications

Management & Operations• Service Management• Governance• Infrastructure, facilities,

application management• Security and business continuity

Facilities• Strategy and design• Consolidation and relocation• Cabling and racking• Power and cooling

Applications & Information•Application discovery andprofiling•Application and databasemigration•Application rationalization andmodernization

YourData Center

Services

7 11 June 2008

Management &Operations

Data center transformation domains

IT InfrastructureFacilities

Applications andInformation

Facilities

Governance

Environmental and business demandsare converging

67% ofenterprises areimplementingenvironmental programs.

80% of enterpriseRFQs evaluate suppliers’environmental aspects.

30%of infrastructurepurchasingdecisions is based onenvironmental factors.

EnergyconstraintsareconstrainingIT growth &flexibility

Manycompanies areprojected tospend more onenergy than onhardware overa three-yearlifecycle.

50% of enterprisedatacenter to reviewtheir power & coolingresources within 3 years

Energy optimization and controlThe most complete power and cooling portfolio to increase theperformance of your data center

Optimize the infrastructure for sustainablecomputing

• Dynamic Smart Cooling• Data Center Solution Building Program• Power Efficient Distribution Rack/UPS and PDU’s• Modular Cooling Systems

Optimize the infrastructure for sustainablecomputing

• Dynamic Smart Cooling• Data Center Solution Building Program• Power Efficient Distribution Rack/UPS and PDU’s• Modular Cooling Systems

Virtualize and actively manage for energyeffectiveness

• Energy aware provisioning• Insight Power Manager• Data Center Manager

Virtualize and actively manage for energyeffectiveness

• Energy aware provisioning• Insight Power Manager• Data Center Manager

Use every watt efficiently from chip to chiller• Energy-optimized Systems• Optional Green Power Supplies• BladeSystem & Thermal Logic• Engineered with Energy efficient components

Use every watt efficiently from chip to chiller• Energy-optimized Systems• Optional Green Power Supplies• BladeSystem & Thermal Logic• Engineered with Energy efficient components

Energy savingsolutions fromChip to Chillerand beyond

Up to 40%power savings

Dyn

amic

man

agem

ent

Faci

litie

sin

frastr

uctu

re

Com

pone

nts

10 11 June 2008

Data center transformation domains

IT InfrastructureFacilities

Applications andInformation

Management &Operations

YourData Center

Services

11 11 June 2008

Moving to a service-centricmodel through consolidation

Techno-centric

IT as Cost Center IT as Valued Partner

Service-centric

IT organizations are transforming to an internal service provider modeldelivering shared services—in a consumer/supplier partnership withtheir lines of business

HP’s IT Shared Service Solutions enable your transformation to a Shared Services model

ITSS transformation planning services Shared utilitiesHP has proprietary methodology and supportingtools, developed over years of working withclients worldwide:• Shared Services Reference Model• Gap Analysis Tool• Project Library• FTE modeling Tool

Pre-integrated shared, virtualized, automatedenvironments delivered as a shared service• Core infrastructure shared services• Application infrastructure shared services• Application shared servicesComposable and rapidly tailored to specific needs

Data center infrastructure struggling

12 11 June 2008

PowerAn increasing

portion of OpEx

AgilityWeeks to months

per task

SpaceEscalating costs

UtilizationAverage 10%

utilizationper system

Consolidation &Virtualization

Directlyaddressing these

issues

But where is the real virtualizationopportunity?

Automated management• Data Center Automation for physical & virtual environments

• Software to continuously control and optimize servers• Software to deploy and manage virtual clients

Heterogeneous hypervisor layer

Infrastructure• Wire-once virtualized infrastructure…client, server, storage

• Virtual network fabric…add, change on-the-fly

Realizing the benefits of virtualization

HP’sadvantage

Serverinfrastructure Heterogeneous infrastructure

Operatingsystems

Automated, unified managementInfrastructure • Virtual stacks • Processes

Virtual layerHeterogeneous virtual stacks

Mandates infrastructure & management layer independence

15 11 June 2008

Data center transformation domains

IT InfrastructureFacilities

Applications andInformation

Management &Operations

YourData Center

Services

16 11 June 2008

Applicationsstill fail to deliver business outcomes

AgilityGAP

Apps are still:• Monolithic• Legacy• Not well integrated

ProcessGAP

Processes are still:• Manual• Inefficient• Siloed

InfrastructureGAP

Infrastructure is still:• Monolithic• Under-utilized• Too complex

*The Standish Group** SearchDataCenter Purchasing Intentions Survey 2007

• Web Servers, accounting, HR,BI/DW are top 4 business appsrunning in data centers

• Application migration is a major riskin transformation projectsif not planned properly

• Full benefit of transformationis possible with applicationrationalization and modernization

• More than 50% of IT projectsare completed late, over budgetor lacking intended features.*

• Almost 20% are cancelledbefore completion*

17 11 June 2008

• Application profiling/dependency mapping• Availability requirements for business applications

during migration• Application portfolio rationalization during migration• Application strategy to move, modernize or

retire application

Application migration and rationalizationduring data center transformation

18 11 June 200818 11 June 2008

HP Solutions for applicationmodernization

Planning

Development

QualityAssurance

Staging/Deployment

IT Operations

ApplicationSupport

ApplicationOperations

Change/Retire

Helping you with key application Initiatives across the lifecycle

ApplicationLifecycle Optimization

Packaged Applications(SAP)

ApplicationDevelopment &

Integration

ApplicationModernization

SOA Transformation

Re-engineer

Replace

Retain

Rehost

Retire

Different paths to ApplicationModernization

19 11 June 2008

Data center transformation domains

IT InfrastructureFacilities

Applications andInformation

Management &Operations

YourData Center

Services

20 11 June 200820 11 June 2008

Comprehensive HP building blocks fordata center service management …

OperationsManagement

Change &ConfigurationManagement

Quality, Security& PerformanceManagement

IdentityManagement

IT ServiceManagement

BusinessAvailability

Management

NetworkManagement

Project &Portfolio

ManagementThe

Service

… throughout the service and project life-cycle

Is there any realexample ofsuccessfulimplementation?

22 11 June 2008

Zone B

Zone CZone A

Site 1Site 2

Austin

Houston

Site 3Site 4

Atlanta

Site 5

Site 6

• Consolidating 85 data centers into 6 global ones:– ~60% reduction in annual energy use through thermal

mapping, virtualization, technology refresh anddensification, enough electricity to power all homes inPalo Alto for more than a year

– 80% more processing power with 30% fewer servers– Reduced the data storage costs while doubling

the capacity

• 3 Geographical zones in U.S. chosen for:– Proximity to fiber optic backbones/multiple power grids– 200000 square ft “white space” used, a 10%

reduction

• Within each zone:– 2 sites within 10-25 mile radius of each other– Each site Tier III– Each site designed for 3 levels of availability and

continuity service

HP’s own data center transformation;Six global facilities

23 11 June 2008

HP global data center transformation:business outcomes by end of 2008

MoreLess =

• 30% fewer servers, ~60%reduction in annual energy use

• Decreased storage cost• 50% lower networking cost• 60% retirement of legacy apps• Fewer sites, 10% less

floor space

• Less HP IT cost

• 80% more processing power

• Double the storage (replicated)• Triple the bandwidth• Global applications• Faster application rollout with

availability and continuityintegrated with data center

• More capability

spend$

to save$

spend$

to grow$$$$

•Management costs•Operations costs•Maintenance costs•License fees•Support costs•Eliminateredundancy

•Infrastructure costs•Mitigate risks•Real-estate &energycosts

•Invest in IT-enabledbusiness innovation

•Invest to supportbusiness growth

•Invest in newbusiness services,faster with fewerresources

•Grow the business•Faster TTM for newproducts & services

•Realize M&Abenefits faster andmore effectively

•Better customerinformation

•Improved decisionmaking

Data centertransformation

ServiceManagement

Applications &SOA transformation

Mastering the new equation

25 11 June 2008

Data centertransformation business outcomes

• Up to 30% savings from IT consolidation, apps rationalization• Up to 40% energy savings from modern facilities• Up to 25% real estate, location savings• Lower IT maintenance costs, staff requirements

• Centralize and standardize IT and data center processes• Establish compliance with industry best practices• Protect company revenue, brand & reputation from outage

or disaster

• Increase data center capacity• Provide global reach to data centers• Serve extended enterprise• Support new business initiatives faster

Reduce costs and increase control through industry-leadingend-to-end data center consolidation solutions from HP

Reducecost

Mitigaterisk

Growbusiness

Technology for better business outcomes

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