emc slideshow belfast event

1© Copyright 2013 EMC Corporation. All rights reserved.

LEADING AN IT TRANSFORMATIONBelfast, May 2015

1© Copyright 2015 EMC Corporation. All rights reserved.

Ian FitzgeraldDirector Cloud Platform Services, EMC IT

2© Copyright 2014 EMC Corporation. All rights reserved.© Copyright 2014 EMC Corporation. All rights reserved.

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?


IT At the speed of business

MEASURE SUCCESS IN

YEARS

TRADITIONALIT TEAM

MEASURE SUCCESS IN

WEEKS

ENTREPRENURIALBUSINESS UNITS


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


EMC IT’s Cloud Vision

Traditional Apps SaaS “Next-Gen” Cloud Apps

PrivateCloud

PublicCloud

Integration and Federation

Virtualization

Information

Security

Virtual Clients


OUR JOURNEY IN THREE STAGES

Cloud Infrastructure

1“ruthless standardization”

be cost-competitive

$157M CAPEX

AVOIDANCE

$212M INFRA.

OPEX SAVINGS

FLAT INFRA.

LABOR COSTS





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%





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


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

Email

Collaboration Portal

Outcomes• Defined enterprise cloud strategy• Workloads placed in optimal

cloud• Business case and roadmap• Cloud reference architecture


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


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)


Business Case To Expedite Legacy Infrastructure Clean-upStep 2: “Heal The Patient”

50%

15%


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”


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


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


Benefits Along The Journey

2004-08 2009-10 2011-2013+

IT PRODUCTIONInfrastructure Focus

BUSINESS PRODUCTIONApplications Focus

IT-AS-A-SERVICEBusiness Focus

40%

30%

15%


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


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


IT-As-A-Service = Agility

Optimizing IT Production

For Business Consumption


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


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


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


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


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


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


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


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


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.


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


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.


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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