GSF 2012 Session 2-2 Brian Clay - Driving Down the Cost of Modernization and Consolidation

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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 Brian P Clay Senior Business Architect Data Center Solutions Group

Transcript of GSF 2012 Session 2-2 Brian Clay - Driving Down the Cost of Modernization and Consolidation

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Brian P ClaySenior Business Architect

Data Center Solutions Group

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• Why are we Here…An Evolutionary Pattern

• Why are we Evolving…The Need for Change

• A Framework for Transformation

• A Call to Action

• Question & Answer

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Evolutionary Pattern

Bespoke Consolidation Utility

Electricity FactorySteam Engines

Electrical Grid

LocalPower Plants

Manufacturing CraftProduction

Flexible Production

PlatformProduction

IT EnterpriseData Centers

ITService Grid

CloudService Providers

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� Realization of Moore’s LawExponential gains in the capabilities of data center infrastructure

Deflationary cost (per unit) each refresh cycle

� General Acceptance of New FrameworksInfrastructure virtualization

Application-driven service oriented architectures

� Outside InfluencesOpenness of the IT economy has accelerated the need for ITaaS

Global macro-economic constraints cultivate uncertainty

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Source: NIST Working Definition; http://www.csrc.ni st.gov/groups/SNS/cloud-computing/index.html

Measured Service

Rapid Elasticity

On-DemandSelf Service

BroadNetwork Access

Resource Pooling

Infrastructure as a

Service (Iaas)

Platform asa Service

(Paas)

Software asa Service

(Saas)

Community

HybridPublicPrivate

Essential Characteristics

Service Models

Deployment Models

HybridCloud

Public Cloud

Inter –Cloud

Consolidation &

Virtualization

Present

Private CloudAutomati

on

The consumption models for ITaaS will require a hybrid approach to service delivery.

In addition to Private (on-premise) and Public (off-premise, service provider) clouds, Inter-cloud will will bring federation amongst clouds

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� Security, Compliance, and Regulatory RisksMany risks are perceived as opposed to real; technology is not the barrier

Cloud computing can help mitigate existing information security issues (ex. VDI & data access)

� Disruptive to Operational & Organizational ModelsProperly aligned organizational structure & process are key to cloud computing

Interoperability with existing processes and tools can be a significant challenge

� Service Management FrameworkCritical dependencies on service architecture, service levels, and service dependencies

New economic models are required to capitalize on the commoditization of IT

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Source: Federal Gov’t IT Spend for 2010 ~$78B

Infrastructure Spend50%-75%

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1 Assumes 50% infrastructure spend and corresponding 50% increase in utilization

Utilization Target (75%)

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30%Strategy &Innovation

70% Infrastructure Operations“Keeping the Lights On”

Source: Gartner – IT Infrastructure and the Shift to “Real-Time”

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� QualityThe ‘guarantee’ of resource performance & availability

� EfficiencyThe ‘capability’ to respond to IT service requests/events

� RiskAdherence to internal and/or external policies/regulations

� CostThe resultant impact of quality, efficiency and risk choices

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①①①① Service FrameworkDefine the capabilities of service offerings & service tiers

②②②② Technical FrameworkDefine target state architectural & engineering options

③③③③ Business FrameworkDemonstrate the value of transformation to Agency

stakeholders

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� More than a NumberSLAs are a representation of the capabilities of the underlying architecture.

� Perpetuating the InefficienciesToday’s method of expressing SLAs is a culprit in driving the culture of inefficiency

� Aligned with the Mission, Not the ApplicationSLAs should be assigned based on the importance of the process/mission; applications will be aligned with the process component (essential vs non-essential) they support.

� Provides Cross-Functional ImpactAgnostic, macro requirements which can be leveraged across IT, risk management, and procurement

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Metric Tier-3/4 Tier-2 Tier-1 Core

Service Level Agreement Best Effort 99.90% 99.99% 99.999%

Required RedundancyN+1

Cold Standby

N+2Active-Passive

2 * (N+1)Active-Active

Service Recovery Objective

Amount of Data Loss (RPO in hrs)

< 2 Weeks < 8 < 1 Zero

Service Downtime (RTO in hrs) Best Effort < 8 < 1 Zero

Guaranteed Service Performance

Best Effort = > 50% = > 75% 100%

Lost Time per Year

Business Hours – 24 x 7 8.76 Hours 52.56 Minutes 5.25 Minutes

Business Hours – 12 x 6 3.75 Hours 22.45 Minutes 2.25 Minutes

Business Hours – 8 x 5 2.08 Hours 12.47 Minutes 1.25 Minutes

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Metric Tier-3/4(Bronze)

Tier-2(Silver)

Tier-1(Gold)

Core(Platinum)

Quality

Availability/Fault Tolerance Cost Effective Local FailureSectional

(Non-Catastrophic)

Sectional(Catastrophic)

Committed Performance = > 25%Best Effort

= > 50% 100% 100%

Efficiency

Event Management Manual Manual Semi-Automated

Automated

Instrumentation Low Medium High Highest

Risk

Assurance No No Yes Yes

Lifecycle Management None N-2 N-1 N or N-1

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� Agile Technology Requires Agile FrameworksToday’s ‘monolithic’ or ‘platform’ approach will be a bottleneck to benefit realization

� A New Taxonomy for TechnologyA ‘utility’ model requires an evolution in how we measure and value technology

� Focus on the Micro, Not Just the MacroThe measurement and valuation of technology should occur at an ‘atomic’ level; additionally the measurement and valuation should integrate with the economic framework.

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ERPERP

Physical & Logical Assets

Units of Inventory

Configurations & Patterns (Architectures)

Service Offerings (Solutions)

Compute, Network, SAN, StorageL4-L7, Security, WAN, Human Capital

CPU, RAM, I/O, Tier-GB, IOPS,Txns per Second, Contexts

Web, App, DatabseN-Tier, Data Warehouse

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Compute

Fabric

Fabric Services

Storage

Compute

Fabric

Fabric Services

Storage

3,505 Units of CPU

5,995 Units of RAM

1,250 Units of Low Bandwidth

512 Units of High Bandwidth

100,000 Units of SLB

10,000 Units of SSL

1,000 Units of Tier-1

7,500 Units of Tier-2

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Web

CPU: 2 & RAM: 4

Low Bandwidth: 1

SLB: 2 & SSL: 1

Tier-2 Storage: 2.5

Middleware

CPU: 4 & RAM: 8

Low Bandwidth: 2

SLB: 2 & SSL: 0

Tier-2 Storage: 5.0

Database

CPU: 16 & RAM: 128

Low Bandwidth: 4

SLB: 0 & SSL: 0

Tier-1 Storage: 4.5

Configurations

Aggregate Inventory

CPU: 56 & RAM: 304

Low Bandwidth: 20

SLB: 16 & SSL: 4

Tier-1 Storage: 30Platinum n-Tier

Patterns

Web x 4

Middleware x 4

Database x2

Tier-1 Storage: 9

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� A Lack of UnderstandingThe fundamental/foundational issues are not often clear to the respective Agencies

� Perpetuating the InefficienciesThe Agency is typically the culprit in driving the culture of inefficiency

� Changing the DiscussionThe key is articulating the issues & inefficiencies in a taxonomy relevant to the Agency

� Advocating InvestmentDemonstrate to the Agency why an investment in IT is advantageous over competing alternatives

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Scale

Workload Efficiency

Fiscal Viability

Business Agility

Capital Efficiency

Carrying Cost

Unit CostEnvironmental & Facilities

Cost-to-Innovate

Time-to-Value

Operational Efficiency

Service Efficiency

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Before AfterImproveme

nt

Bronze 187.20 Hrs 74.88 Hrs 60%

Silver 37.44 Hrs 3.74 Hrs 90%

Gold 18.72 Hrs 22.46 Min 98%

Platinum

22.46 Min 11.23 Min 50%

Annual Unplanned Downtime

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Metric Baseline 12 Months 24 Months

Capital Efficiency 0.84 1.00 1.10

Carrying Cost 40% 25% 15%

Cost per Transaction | SAAS $1.50 $1.05 $0.50

Cost Avoidance (NPV) N/A $7.5M $18.9M

Time-to-Market 240 Hours 40 Hours 8 Hours

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� Embrace CommoditizationCommoditization removes some of the perceived barriers to radical transformation

� Change Takes Time…It’s Not a Big BangSmall increments of change can realize big benefits, which brings momentum to the transformation

� Align SLAs to the Process, Not the ApplicationRemoves the emotion from everyone wanting the highest SLA

� Don’t Live and Die by the TCOFocusing only on TCO over-emphasizes the cost component, as opposed to the valueof transformation

� Don’t Lose Sight of the MissionEngage in a dialog that’s relevant to the Agency stakeholders.

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Thank you.