Develop an infrastructure cost optimization strategy

Jonathan Marsh Vice President Business Development

Chris Haddad

Vice President Technology Evangelism

Develop an infrastructure cost optimization strategy

• Uncertainty, Volatility, and Opportunity

• Cost Optimization and Innovation Strategy

• How WSO2 Carbon and WSO2 Stratos is a strategic fit

Uncertainty, Volatility, and Opportunity • Uncertainty: Economic slowdown and market sentiment

“Singapore warned Monday that its economy will likely suffer a sharp slowdown next year as export demand from developed countries wanes... “

Source: Associates Press published: 20 November 2011

“the world economy is teetering on the brink of another major downturn.”

Source: U.N. World Economic Situation and Prospects 2012 published: 5 December, 2011

“Flash China Manufacturing Output Index at 46.7 (51.4 in October). 32-month low.”

Source: HSBC Purchasing Manager’s Index published: 23 November 2011

Uncertainty, Volatility, and Opportunity • Uncertainty: Shifting demographics and new works patterns

– Demographic shifts

• Aging global population

• Supply greater than demand due to global competition

• Less loyal, less predictable consumers

– Work pattern shift towards

• Service-based economy – organizations become more dependent upon intellectual power

• Outsourcing non-core operations

Uncertainty, Volatility, and Opportunity • Volatility: Increasing supply chain complexity and change

• Rapid supply change adjustments

• Short product cycles, many parts

• Multiple competing suppliers

• Just in time sourcing

Uncertainty, Volatility, and Opportunity • Volatility: Price hedging and hot money flows

– Highly variable input prices and asset bubbles

– Currency foreign exchange fluctuations

– Rapidly changing buyer demand

Uncertainty, Volatility, and Opportunity IT Opportunity to reduce risk

• Improve capital efficiency

– Economic slowdown and lower market sentiment

– Price hedging and hot money flows

• Innovation to raise agility

– Shifting demographics and new work patterns

– Increasing supply chain complexity and change

Cost Optimization and Innovation Strategy

To improve capital efficiency and raise agility

1. Choose leaner technologies

2. Re-discover and optimize IT best practices

3. Leverage new business models

Choose leaner technologies

• What is “Lean Software”? – Designed to do just enough

• No muda: waste code or unnecessary functionality

• Only focus on real requirements – not feature checklists

– Agile iterative development starting from Minimum Viable Product • Decide as late as possible, Code as fast as possible

– Modular so that unnecessary code isn’t even loaded – Eliminate duplicate or conflicting code (unfortunately

a typical result of M&A)

• Agility depends on good architecture

Choose leaner technologies

• Lower resource use – Minimize infrastructure growth and footprint

• Easier and simpler to use throughout lifecycle – Lower development and operation team spend

– configuration-based models, use open standard programming models

• Future-proof and lower technical debt – Lower startup and maintenance cost

– Add components as required

– Easy to integrate (internally and externally)

Cost Optimization and Innovation Strategy

To improve capital efficiency and raise agility

1. Choose leaner technologies

2. Re-discover and optimize IT best practices

3. Leverage New Business Models

Re-discover and optimize IT best practices

• Integrated business rules

• Analytics, monitoring, internal “billing”

• Data Volumes

– NoSQL, MapReduce

– Complex Event Processing

• Service orientation

• Identity & security management

© WSO2 2011

Cost Optimization and Innovation Strategy

To improve capital efficiency and raise agility

1. Choose leaner technologies

2. Re-discover and optimize IT best practices

3. Leverage new business models

Leverage New Business Models – on premise

• Ensure costs are proportional to actual production benefits received

• Eliminate license terms and fees which could lead to: – Shelf-ware

– Evaluation delays

– Project commencement delays

• Protect against single-vendor lock-in

• Compliment your team with expert support services

This is what WSO2 means by “open source”

© WSO2 2011

WSO2 Value Proposition • Address obstacles to enterprise middleware

project speed, success, ROI Simplify…

• technology acquisition • installation • development • adapting platform to specific needs • obtaining expertise • integration & interoperability • adding new capabilities • addressing unforeseen needs • deployment to achieve desired

QoS

Obtain… • freedom from lock-in and license

risks • low resource demands • high performance and utilization

rates • world-class production support

system and SLA • high ROI with cost structure

aligned with actual production value obtained

• confidence in technology evolution and innovation roadmap

How we achieve that value

• Industry-leading Innovation • Modern, from scratch, design, implementation • Complete, consistent platform • OSGi componentization model • Lean, high-performance code • Cloud nativity

• Open source edge • Apache open-source licensing – only! • Business model aligns with production support (e.g. successful

production deployment.) • World-class support services tailored to customer/project needs. • Accelerated development through open, transparent model and

leveraging open source community.

WSO2 SOA Platform

WSO2’s Open Source Edge Unique Support Model: “We build it. We support it. We manage it. We improve it.”

● No Support Engineers

● No Project Managers

● No Multi-Year Roadmap

● WSO2 Support Offerings: QuickStart, Development Support & Production Support

● Open Development Methodology: Customer-driven, agile, open and effective product engineering & development

● High levels of customer involvement in product development & evolution

● Open public mailing lists – architecture@wso2.com

Leverage New Business Models – in the cloud

• Balance on-premise => IaaS => PaaS => SaaS

– Efficiencies increase as you go up this chain

– Control decreases as you go up this chain

• Less customization possible

• More risk of lock-in

• Choose appropriate mode for IaaS, PaaS

– Public, private, hybrid, cloud-bursting

© WSO2 2011

Enterprise IT in 2015+

Cloud Native • Distributed/Dynamically Wired (works properly in the cloud)

• Supports deploying in a dynamically sized cluster • Finds services across applications even when they move

• Elastic (Uses the cloud efficiently) • Scales up and down as needed • Works with the underlying IaaS

• Multi-tenant (Only costs when you use it) • Virtual isolated instances with near zero incremental cost • Implies you have a proper identity model

• Self-service (in the hands of users) • De-centralized creation and management of tenants • Automated Governance across tenants

• Granularly Billed and Metered (pay for just what you use) • Allocate costs to exactly who uses them

• Incrementally Deployed and Tested (seamless live upgrades) • Supports continuous update, side-by-side operation, in-place testing and

incremental production

Leverage New Business Models

Ecosystem Platform

One Enterprise Platform wherever you need it:

WSO2 Carbon On Premise: • In Production at Fortune

1000 companies • Handling 1bn

transactions/day • The only modular open

source middleware stack • Everything you need to

build Enterprise Applications

• From Core Logic to Mobile Apps

WSO2 Stratos In Private Cloud: • A single managed platform • Elastic, Self-Service, Multi-

tenant • Accelerates your private

cloud beyond virtual machines to provide real Enterprise Cloud Services

• Use only what you need

WSO2 StratosLive As a Service in the Public Cloud: • We manage, run and

maintain your application platform

• Complete Pay as you Use • ESB-as-a-Service • Governance-as-a-Service • Identity-as-a-Service • With appropriate SLAs and

simple monthly billing

• A single code continuum • Completely modular based on OSGi • Complete Enterprise SOA Architecture:

• AppServer, ESB, Governance, Portal, BPMS, BAM, Identity and more • Supported 24x7 with phone, web and full SLAs

Resources

• Try Carbon – http://wso2.com/products/carbon/

• Try Stratos right now: – https://stratoslive.wso2.com/

• Read about Stratos: – http://wso2.com/cloud/stratos/

– Source Download available

• Contact us: – bizdev@wso2.com