Intel IT Cloud Strategy

Intel Confidential – NDA

Intel IT Cloud

Aravind Doss

@ TDWI

Feb 5th 2011

Copyright © 2011, Intel Corporation. All rights reserved. 2

Legal Notices

This presentation is for informational purposes only. INTEL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products.

For more complete information about performance and benchmark results, visit www.intel.com/benchmarks

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* Other names and brands may be claimed as the property of others.

Copyright © 2011, Intel Corporation. All rights reserved.


Intel IT Background

• Our Infrastructure layout

• Our primary business goals and objectives

Enterprise Cloud Implementation

• An Architecture & Roadmap overview

• Results & Challenges to date

Not Cloud Product marketing foils

Questions as they arise

Next 30 minutes


Intel IT Data Center Overview

1: Intel IT internal data. September 2009.

2: IDC estimates 2009

Mandate: Enable Efficient Growth

Design

Design Computing D Office

General Purpose O Manufacturing

FAB/ATM M Enterprise

E-biz + supply chain E Services

AppUp S 2008 2013

Global IT spending on cloud2

$17B

$44B

2007 2008 2009 2010 2011 2012

Exp

ecte

d S

torag

e

Cap

acit

y (

PB

)

~35% YOY Growth1

(Data Storage)

Design

OE


2010 Intel IT Vital Statistics

6,300 IT employees 62 sites, 25 regions

78,900 Intel employees

150 sites, 61 regions

95 Data Centers >100,000 servers, 410,000 square feet

>105,000 Devices >90K PCs (80%+ mobile), >14,000 Handhelds

Source: Information provided by Intel IT as of May 2010

http://www.infoworld.com/green15


Tactical Drivers

High-Level IT Strategies and Goals Business Benefits

Agility

Efficiency

Security

Availability

• Improve provisioning time from days to hours with on-demand self service

• Automate workflows to enable consistency, agility and elasticity

• Streamline business processes with on-demand self-service portal

• Opportunistic use of federated public cloud services, when applicable

• Accelerate virtualization to create a multiple tenant O/E environment

• Deploy new, retire old servers to improve energy efficiency

• Drive higher utilization via resource pools and consolidation

• Measure services for VM utilization, health and IT capacity management

• Utilize and build on existing security infrastructure and safeguards

• Protect Intel IP, data and differentiated business processes

• Provide secure access to authenticated devices and users

• Deliver high availability and drive increased resiliency for all IT services

• Use a consistent disaster recovery architecture for critical applications

• Adopt advanced technologies for highest availability on mission-critical apps


Tactical Drivers

High-Level IT Strategies and Goals Business Benefits

Agility

Efficiency

Security

Availability

• Improve provisioning time from days to hours with on-demand self service

• Automate workflows to enable consistency, agility and elasticity

• Streamline business processes with on-demand self-service portal

• Opportunistic use of federated public cloud services, when applicable

• Accelerate virtualization to create a multiple tenant O/E environment

• Deploy new, retire old servers to improve energy efficiency

• Drive higher utilization via resource pools and consolidation

• Measure services for VM utilization, health and IT capacity management

• Utilize and build on existing security infrastructure and safeguards

• Protect Intel IP, data and differentiated business processes

• Provide secure access to authenticated devices and users

• Deliver high availability and drive increased resiliency for all IT services

• Use a consistent disaster recovery architecture for critical applications

• Adopt advanced technologies for highest availability on mission-critical apps

Service Level Control

Self-Service enables IT to respond in hours to changes in

business demand

On-Demand automates service

life-cycle, streamlining business processes

Measured Services delivers valuable BI for IT to monitor capacity and business usage


Many Devices (how users access information & services)

Smart Phone

MID Home PC Corporate

PC Auto TV Netbook

Internet Cafe

Strategic Drivers: Compute Continuum

Device Independent Mobility

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Many Devices (how users access information & services)

Business

Smart Phone

MID Home PC Corporate

PC Auto TV Netbook

Internet Cafe

Personal Data & Services

Strategic Drivers: Compute Continuum

Personal

IT Application Layer

Corporate Data & Services

Personal Data & Services

Device Independent Mobility

Client Aware Computing

../../../../../Desktop/astoria-take2.mp4


Intel IT Background






Past 15 minutes


Intel IT Background






Next 15 minutes


Intel’s Definition of the Cloud

Services • An evolution in IT consumption and delivery made available self service via the Internet with a flexible, pay as you go business model

• Requires a highly scalable and efficient Cloud Architecture

Delivery Types Private: Deployed behind firewall for an organization’s internal use

Public: Services via public internet

Hybrid: A composition of two or more clouds (public, private, mixed)

“Private Clouds”

“Public Clouds”

Hybrid Clouds

Architecture • Data resides in shared, dynamically scalable resource pools

• Based on virtualization and/or scalable application environments

Network Storage Compute

Management


Intel IT’s Cloud Strategy & Roadmap

2010-11

Internal: Intel Network

Build/Grow Enterprise Private Cloud

2012> <2009


Hosting Platforms

External: Internet External: Internet External: Internet


Office/Ent

• D, then OES, last M • Application hosting decision

IaaS • Caching

SaaS • Job Search • Benefits/Stocks

IaaS • Caching

SaaS • Job Search • Benefits/Stocks • Sales

IaaS • Caching • Back & Restore • Client Image/VM • Storage • Manageability

SaaS • CRM • Benefits/Stocks • Job Search • Sales • Productivity • Collaboration

Legacy Environments Internal Clients


Evaluate Hybrid Clouds. Federated IaaS


External Clients

External Clients

External Clients

Office/Ent Design Grid Design Grid Design Grid Office/Ent


Our Results, So Far… Doubled our rate of virtualization (% virtualized O/E servers)

• 12% (2009)

• >40% (2010)

• 70% (goal 2011)

Dramatic Agility Improvements (service provisioning time)

• 90 days (2009)

• 14 days (mid 2010)

• 3 hrs (end 2010)

• 6 mins (2011)

2011: Removing Technical Hurdles for Virtualization of DMZ and Tier 1 Applications


Key Challenges

2010 Top items Relative TAM affected

Resolution

Tier 1 application: Need for high availability & clustering

High Qualification with vendors (hardware & software, OS & application, Tier 1 storage) to get a solution to meet our high availability and pushing into “Continuous availability’. 3 node cluster issues,

DMZ security / isolation of different classes (Secret & Confidential) of data

High Network solutions used to segregate the systems. While this is the desired solution (i.e. P2V ratio), this was a good stop gap containment. End solution of using VT-TXT being evaluated as solution.

Mega-VM: High CPU Disk/Network I/O systems

Med I/O intense workloads (ex: DB), especially memory intense application used VT-D to see significant improvements in application latency.


High I/O issue

Memory Intense workload had an big impact on consolidation ratio, until the use of VT-d, allowing better application latency and higher P2V ratios.

Other VT options

• VT-C (VMDQ, VMDc)

• Security (TXT, ASE-NI)


Intel IT Background






Last 30 minutes


Questions?

Acknowledgements

Rajesh Shenoy, Ramana Vithala, Tarun Acharya, Rajeshkumar Ramamurthy

Narendra Vaze


Legal Disclaimer • INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL® PRODUCTS. NO LICENSE,

EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPETY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL’S TERMS AND CONDITIONS OF SALE FOR SUCH PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER, AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE OF INTEL® PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT.

• Intel may make changes to specifications and product descriptions at any time, without notice.

• All products, dates, and figures specified are preliminary based on current expectations, and are subject to

change without notice.

• Intel, processors, chipsets, and desktop boards may contain design defects or errors known as errata, which

may cause the product to deviate from published specifications. Current characterized errata are available on

request.

• Code names featured are used internally within Intel to identify products that are in development and not yet

publicly announced for release. Customers, licensees and other third parties are not authorized by Intel to use

code names in advertising, promotion or marketing of any product or services and any such use of Intel's

internal code names is at the sole risk of the user

• Performance tests and ratings are measured using specific computer systems and/or components and reflect

the approximate performance of Intel products as measured by those tests. Any difference in system hardware

or software design or configuration may affect actual performance.

• Intel, Intel Sponsors of Tomorrow. and Intel Sponsors of Tomorrow. logo, and the Intel logo are trademarks of

Intel Corporation in the United States and other countries.

• *Other names and brands may be claimed as the property of others.

• Copyright ©2011 Intel Corporation.


Risk Factors The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the corporation’s expectations. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Additionally, Intel is in the process of transitioning to its next generation of products on 32nm process technology, and there could be execution issues associated with these changes, including product defects and errata along with lower than anticipated manufacturing yields. Revenue and the gross margin percentage are affected by the timing of new Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; defects or disruptions in the supply of materials or resources; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products. The gross margin percentage could vary significantly from expectations based on changes in revenue levels; product mix and pricing; start-up costs, including costs associated with the new 32nm process technology; variations in inventory valuation, including variations related to the timing of qualifying products for sale; excess or obsolete inventory; manufacturing yields; changes in unit costs; impairments of long-lived assets, including manufacturing, assembly/test and intangible assets; the timing and execution of the manufacturing ramp and associated costs; and capacity utilization. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. The majority of our non-marketable equity investment portfolio balance is concentrated in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to our investment in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other. Intel's results could be impacted by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Intel’s results could be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting our ability to design our products, or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended March 27, 2010.

Rev. 5/7/10

Intel Confidential – NDA

Backup


Physical to Virtual Sizing Strategy

Source Intel IT. January 2010

Intel IT developed tool to estimate financial benefits of Physical to Virtual Refresh: www.intel.com/go/xeonestimator

Intel IT paper on virtualization. http://download.intel.com/it/pdf/Implementing_Expanding_Virtualized_Environment.pdf

One Size Does Not Fit All Applications 2011: Defining X-Large VM Spec

CPU (up to)

Memory (up to)

Disk (up to)

(Includes OS)

Virtual Machine Density

Intel® Xeon® 5500 based servers

Intel® Xeon® 5400 based servers

Small: App, Web Basic Server

1 vCPU 2 GB 100 GB 22:1 14:1

Medium: SQL Database Servers and Java* Applications

2 vCPU 4 GB 200 GB 11:1 7:1

Large: App Stacked, Large App, Super Servers

4 vCPU 8 GB 500 GB 5:1 3:1

Average weighted density ratio 15:1 9:1

http://www.intel.com/go/xeonestimator

http://download.intel.com/it/pdf/Implementing_Expanding_Virtualized_Environment.pdf


Cloud Capability Phasing Over Time Near-term Mid-term Longer-term

Business Transformation

On-demand self-service Measured Services

Automated workflows Capacity Planning Transformation

IT BI solutions for enabling business decisions

Compute, Resiliency

Default to virtualized Automated VM restart

Cross-site Disaster Recovery MCA-Recovery

Lockstep VMs, Near native virtualization

performance

Storage Thin-provisioning,

Data Duplication Elimination Consolidated Backup/Restore

Storage resource pools & QoS Incremental forever Backups

and Recovery

Solid-state data-center Continuous Data Protection

Network 10 GbE

Distributed Virtual Switch Unified Fabric (compute,

storage) 40 GbE

Security Non-production VMs in DMZ Event and Access Monitoring

Secure Live VM migration VM Isolation

Public cloud federation Pervasive encryption

Management Infra. Inventory and Health

Basic BI: Capacity/Perf/health Automated Patch / Provision

Auto end to end Lifecycle Mgmt

Cloud brokerage & federation Private-Public Cloud Live

Migration

Datacenter Energy savings via

virtualization Cross Platform Power

and Data Center Management Near-linear power scaling

PUE Improvements

Clients Client Virtualization,

MB-PC plus Handhelds Expanded small form-factor

support

Client Aware Services: optimized across a range of

clients

Timing Determined by Capability, Readiness & Cost

Intel IT Cloud Strategy

Technology

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