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LEADING AN IT TRANSFORMATIONBelfast, May 2015
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Ian FitzgeraldDirector Cloud Platform Services, EMC IT
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Why Transform to ITaaS?
THE BUSINESS’ VIEW OF IT
• Too SLOW
• Too EXPENSIVE
• Too RESTRICTIVE
• To BE AVOIDED!
THE CFO’S VIEW OF IT
• An expense to cut
• Run rate budgeting
• Regulated monopoly
• “keep the lights on”
Complex & fragile legacy
Losing control
100% reactive
THE CIO’S PREDICAMENT
ARE WE RELEVANT?
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IT At the speed of business
MEASURE SUCCESS IN
YEARS
TRADITIONALIT TEAM
MEASURE SUCCESS IN
WEEKS
ENTREPRENURIALBUSINESS UNITS
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EMC IT: THEN AND NOW
* Infrastructure OPEX savings were $212M, $146M of which were reinvested in new application capabilities, $66M was returned to the CFO
2004 2015EMC Revenue $8.23B $24.5BEMC Employees 24,000 65,000%Compute Infrastructure 2,000 physical 12,000 VMs
1,000 ESX
6,000 VDI150 ESX
Storage Infrastructure 1 PB 22 PB raw8 PB protection
IT Environments 5 data centers 7 data centers2 vCA sites
95%VIRTUALIZED
Days To Provision App Environment 90+ ~1% IT Budget Spent On “Lights On” 80% 58%% IT Budget Consumption-Funded 30% 89%
$157M CAPEXAVOIDANCE
$212M INFRA. OPEX SAVINGS
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EMC IT’s Cloud Vision
Traditional Apps SaaS “Next-Gen” Cloud Apps
PrivateCloud
PublicCloud
Integration and Federation
Virtualization
Information
Security
Virtual Clients
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OUR JOURNEY IN THREE STAGES
Cloud Infrastructure
1“ruthless standardization”
be cost-competitive
$157M CAPEX
AVOIDANCE
$212M INFRA.
OPEX SAVINGS
FLAT INFRA.
LABOR COSTS
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OUR JOURNEY IN THREE STAGES
Cloud Infrastructure
1“ruthless standardization”
be cost-competitive
ITaaS Operating Model
2“cultural revolution”
be agile and deliver value
89% IT OPEX CONSUMPTION-
FUNDED
PROVISIONING TIME REDUCED FROM90 DAYS TO 1 DAY
MAINTENANCE SPENDREDUCED FROM
80% TO 58%
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OUR JOURNEY IN THREE STAGES
Cloud Infrastructure
1“ruthless standardization”
be cost-competitive
ITaaS Operating Model
2“cultural revolution”
be agile and deliver value
App.Transformation3
“move up the value stack”
deliver competitive advantage
STRATEGICRELEVANCE
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Filters For Deciding Which Workloads Go Where
Private Cloud? Or Public Cloud?
Economics favor public cloud for these workloads
Economics favor private cloud
Economic Suitability Functional Suitability
Suitable public cloud
exists for these workloads
Suitable public cloud offer
does not exist
Risk concerns suggest public cloud for these
workloads
Risk dictates private cloud
Risk Suitability
Economics dictate legacy architecture
CRM
Supply Chain
ERP
Application Development
Analytics
Collaboration Portal
Outcomes• Defined enterprise cloud strategy• Workloads placed in optimal
cloud• Business case and roadmap• Cloud reference architecture
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Cloud Infrastructure Journey
50%
15%
Virtualize Mission Critical Applications
% V
IRTU
ALIZ
ED
90%
70%
2004-08 2009-11 2012+
IT-Owned Applications
35%
Big Bets Multi-tenancy Networked Storage Server Virtualization x86 Chip set Linux & Windows De-duplicated Disk Backup
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Business Case For Infrastructure Supporting New App ProjectsStep 1: “Stop The Bleeding”
50%
15%
Business AgilityVirtualize Mission
Critical Applications
% V
IRTU
ALIZ
ED
90%
70%
2004-08 2009-11 2012+
IT-Owned Applications
35%
• Created virtualized, tiered multi-tenant hosting platform – Vblock
• Instituted “virtual first” policy
• Created Solution Architecture governance “on-ramp” to the multi-tenant platform
• Guaranteed RPO, RTO, Performance and Availability service levels
• Provisioned free-of-charge (initially)
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Business Case To Expedite Legacy Infrastructure Clean-upStep 2: “Heal The Patient”
50%
15%
Business AgilityVirtualize Mission
Critical ApplicationsIT-Owned Applications
90%
2004-08 2009-11 2012+
35%
75%
% V
IRTU
ALIZ
ED
• “Swept the Floor”, moving all apps to new hosting platform
• Leveraged disk based de-duplication for all backup
• Implemented centralized management and monitoring
• Began metering consumption by app environment and “showing back”
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EMC IT INFRASTRUCTURE EVOLUTION
• Same delivery
• Higher customer sat
• Higher utilization rates
Well Run Hybrid Cloud
All infrastructure is virtualized and delivered as a
service. Policy driven automation will manage
configuration and provisioning, consumable by APIs.
Benefits
• Services based
– Standard Offerings
– Pay per use
2012
Cloud2014+
• Service catalogue Self & Auto IT
• Service & utility focused organization
• Cost transparency
AutomationEHC
• Software Defines Storage
• Virtual Networking & Security
• Full charge back• Integrated Network team• Formal Automation team
ITaaS
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Socialize With Internal Customers And Gain Executive Buy-In
Standardize For Efficiency And Simplify For Savings
Define New Measures And Baseline Performance
Embrace A Virtual-first Policy—And Don’t Turn Back
Invest In Skills And Education
Lessons Learned
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Benefits Along The Journey
2004-08 2009-10 2011-2013+
IT PRODUCTIONInfrastructure Focus
BUSINESS PRODUCTIONApplications Focus
IT-AS-A-SERVICEBusiness Focus
40%
30%
15%
Business AgilityVirtualize Mission
Critical Applications
Development, Test, And IT-Owned Applications
% V
IRTU
ALIZ
ED 93%
10%
WE ARE HERE
70%
$11M
$6MData Center Equipment Savings
55%Of OS ImagesVirtualized
60%Of Mission CriticalApps Virtualized
30MPounds of CO2 Reduced
OpEx Savings$12M
$74MData Center Equipment Savings
170%Storage Admin Productivity Up
34%Increase in Energy Efficiency
60MPounds of CO2 Reduced
Power and Space Savings
Savings & Transparency
Time To Market
TCE
IT Transformation
$$
t
C
Automation
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A NEW IT BUSINESS MODEL
Service Oriented
Market Driven
“P & L” Focused
Broker & Builder
ENABLING TECHNOLOGY
Private, Hybrid, Public Clouds
End-To-End Automation
Financial Transparency
Self-Service Capabilities
DNA, SKILLS, ROLES & ORGANIZATIONAL
ALIGNMENT
“Front Office” Capabilities
Service Accountabilities
Technology Breadth
Transforming IT With IT-As-A-Service
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IT-As-A-Service = Agility
Optimizing IT Production
For Business Consumption
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ITaaS Operating Model Attributes
BROKEREDAS WELL AS BUILT
STANDARDIZED
SERVICES
SELF-PROVISIONED
CONSUMPTION
FUNDEDAUTOMATEDD E P LOY M E N T
TRANSPARENTPRICING & SERVICE LEVELS
BUILT-INSECURITY & GRC
ENTREPRENEURIALCULTURE
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THINGS YOU
STOP
THINGS THAT
CHANGE
NEWACTIVITY
What’s Different in ITaaS ?
Manual Service Requests
Manual Provisioning
Writing and Updating Scripts
System Integration and Configuration
Bolting Security On
Service Catalog
Self-Provisioning
Programmatic Redeployment of Assets
Centralized Monitoring
Comprehensive Capacity Planning
Virtualize Everything
Workload Analysis
Policy Engineering
Platform Engineering
Service Integrator
Service Broker
Manage Service Line P&L
Market Research
Consultative Selling
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2004-08 2009-11 2012-13
Infrastructure Focus Application Focus Operations Focus
Percentage of IT Spend On New Capabilities versus Keeping the Lights On
Approximate Time To Provision Application Environments
42%
40%
20%21%
23%
25%
20%
~1Day
7Days
40Days
60Days
80Days
90Days
30Days
Cost & Agility Trends
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2004-08 2009-10 2011-2014+
Productivity Benefits Of Our Journey
Series1 O/S Images TB Storage
Infrastructure Labor Expense
• 12PB Storage Growth• 8000 O/S Image Growth• ~Flat Headcount Expense
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VALUE-BASED DECISIONS
Drives Value-Based Discussions With Business Units
Supports Cost Reduction By Aligning Support Tiers To Business Value
Enables Application Rationalization & Right-Sizing Of Existing Tools
Reduces Risks And Run-time Costs For Shadow IT
AUTOMATION AND STANDARDIZATION
Provides Productivity Gains By Implementing Service Management
Increases Efficiency By Offering Standardized Applications
Eliminates Waste In IT Infrastructure Spending
Unleashes A More Agile IT Delivery Model
Financial Transparency Benefits
LESSONS LEARNED
Analyze Cost Vs. Price
Benchmark To External Providers
Don’t Underestimate Company Culture
Challenge Status Quo When Evaluating Real-Time Cost
Reassess Legacy Cost Levers
Evolve The DNA Of IT
Build Consensus
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IT Funding Moving From Flat Tax To Metered ChargebackOLD WAY
All Units Charged Flat Tax, Little Transparency
Separate IT Silos For Each UnitInflexible, Inefficient IT
NEW WAYAll Units Charged Pay-As-You-Go, Transparency
Pooled IT ResourcesDynamic, Agile, Efficient
PRIVATE CLOUD
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Preparing Our People
Creating Incentives To Be Multi-Skilled New Job Families & Tracks
Cloud Certifications
Fostering CollaborationBridge The Silos
Facilitate OJT
Talking Openly About Cloud
It’s A Sea-Change For IT
Opens Up Huge Opportunities
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An Organizational Evolution Is UnderwayImperativeBusiness And Financial Management
IT Service Management
New Focus AreaCloud Service Operations Management
Platform-As-A-Service
User Interface-As-A-Service
Enterprise Applications-As-A-Service
Infrastructure-As-A-Service
New Roles EmergingCloud Architect, Cloud Admin Cloud Capacity PlannerIT Automation EngineerData Scientist Virtual Infrastructure Management
Virtual Infrastructure Architecture
Traditional Roles Are Still Essential
StorageBackup & Recovery
SecuritySystems
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Organizational Model - Contemporary IT
ON-DEMAND SERVICES
BUSINESS DEMAND
DIGITIZATION & AUTOMATION
CLOUDPLATFORMS
SECURITY BIG DATAS E R V I C E S
3rd PLATFORM
A P P D E V
E N T E R P R I S E
A P P S SAAS
CLIENT EXPERIENCE
CONSUMERSERVICES
SERVICE PORTFOLIO MANAGEMENT
CONSULTATION. IDEATION. INNOVATION.
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EMC’s IT Transformation Summary
IT INVESTMENTSVS. L IGHTS ONFROM 20% TO
42%IN 4 YEARS
OV E RA L L I TCHARGEBACKFROM 54% TO 89%
Note: Based on EMC IT Internal Estimates
O S I M A G E SVIRTUALIZED
93% ~1D A Y T O PROVISION
76%IN 4 YEARS
E N T E R P R I S EVS. FUNCTIONALP R O J E C T SFROM 40% TO
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Reflecting on Our Experiences
• Technology is important, but only as a means to the end.
• Real transformation is a test of leadership and change management acumen.
• Financial incentives change behavior.
• Demonstrating agility and empowering clients changes the IT brand.
• It helps a lot to have experienced assistance.
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EMC IT PROVEN
For more information about EMC IT Proven:www.emc.com/emcitproven
Implementing Your Cloud Strategy Through Best
Practice Methodologies
Thank YouEmail: [email protected]
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