GSF 2012 Session 2-2 Brian Clay - Driving Down the Cost of Modernization and Consolidation
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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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
• 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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
Evolutionary Pattern
Bespoke Consolidation Utility
Electricity FactorySteam Engines
Electrical Grid
LocalPower Plants
Manufacturing CraftProduction
Flexible Production
PlatformProduction
IT EnterpriseData Centers
ITService Grid
CloudService Providers
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
� 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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
� 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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
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.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
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
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
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.