powering your it - oracle | integrated cloud … · powering your it transform for ... core it no...

Powering your IT Transform for Success in the next Decade

Carla Arend Program Director, European Infrastructure & Cloud Research

[email protected]

Oracle - Madrid – 19th November 2015

2

3rd Platform is 29% of IT spending

but 89% of spending growth.

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015 2016 2017 2018

3rd platform: 9.5% CAGR

2nd platform:–2.4% CAGR

Total CAGR 2013-18: 0.7%

WE ICT spending ($bn)

Most critical phase yet in the 3rd platform era – The Innovation Stage

3

Digital Transformation is Multi Faceted and Accelerated

Leadership Transformation

Omni-Experience Transformation

Information Transformation

Operating Model Transformation

WorkSource Transformation

Digital Transformation is a CEO Priority

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 4

‘We’re also taking

advantage of the

immense business

opportunities

offered by

digitalization’

Joe Kaeser,

CEO Siemens

‘The possibilities of

the digital

revolution must be

put to good use’

Tom Enders,

CEO Airbus

‘Everything we do

in this networked

world has to be

open’

Volkmar Denner,

CEO Bosch

‘We felt we have to

go digital in a

much more

proactive way’

Paul Bulcke

CEO Nestlé

Innovation is driving Digital Transformation

5

[CATEGORY

NAME] [PERC…

No 41%

Yes 48%

No 52%

Yes 68%

No 32%

“Digital Transformation is now

a major business priority for the

next 12 months”

“A new group has been created

focused on innovation”

“The business has

become more involved in

IT strategy”

Thrivers Versus Survivors

6

The Global 2000 Largest Companies

2/3rd

Survivors

In reactive mode risking company survival

1/3rd

Thrivers

Digital transformation at the center of their corporate strategy

Managed

Business Innovation

Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform

Opportunistic

2nd Platform IT

Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption

Ad Hoc

Core IT

No effort between business and IT to coordinate or incorporate 3rd Platform technology

Repeatable

3rd Platform IT

Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption

Optimized

Business Transformation

Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.

Opportunistic

2nd Platform IT


Managed

Business Innovation


Source: IDC, Enterprise IT Transformation Maturity Model, 2014

Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



Transforming to a Business Innovation IT Organization IDC’s Enterprise IT Transformation Maturity Model

7

Managed

Business Innovation


Opportunistic

2nd Platform IT


Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



31%

2nd Platform IT

6%

Core IT

Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May 2014. n=243

Are you at the right end of the IT Maturity ladder?

8

Managed

Business Innovation


Opportunistic

2nd Platform IT


Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



31%

2nd Platform IT

44%

3rd Platform IT

6%

Core IT



9

Managed

Business Innovation


Opportunistic

2nd Platform IT


Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



75% of Organizations are Operating at a 2nd Platform IT or 3rd Platform IT Transformational Stage

31%

2nd Platform IT

44%

3rd Platform IT

6%

Core IT

15%

Business Innovation

4%




10

Digital Transformation drives IT demand

11

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

5.000.000

Compute Cores shipped

Servers shipped

4 per. Mov. Avg. (Compute Cores shipped)

4 per. Mov. Avg. (Servers shipped)

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

5.000.000

Total Terabytes shipped

All data Western Europe; Sources: IDC EMEA Quarterly ESS and Server Trackers, 2Q15

(September 2015)

Goal of Operating a Data Center

12

Datacenter

Staff

Software(Business App, OS,

BSM, System

Mgmt)

External

Contracts(outsourcers,

clouds, suppliers)

Facility(energy, building,

etc.)Hardware(servers,

storage,

networking)

Delivering

IT services

to users,

partners and

customer

2015 Datacenter Challenges

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Datacenter Consolidation / Increasing Density

Controlling power & cooling costs

Disaster recovery / high availability capabilities

Datacenter automation

Data migration

IT staff productivity, headcount and skills

Technology refresh (server and storage upgrades)

Cost/constrained capital budgets

Making effective use of cloud

Security and Compliance

Source: 2015 IDC European Software Survey, N=776 13

People & Process

Technology

DataCenter Disruption Drivers

14

Workloads

http://images.google.com/url?source=imgres&ct=tbn&q=http://www.txgrp.com/images/data center.jpg&usg=AFQjCNG6RqRZhe1_eJbIjE5x9zFNso_I9w

Technology Disruption

15

Converged/Integrated Systems

All Flash Arrays

Hybrid Flash Arrays

Containerisation

Software-defined Datacenter

Hyperconverged

Cloud

OpenStack

16

0% 20% 40% 60% 80% 100% 120%

Server Market

External Storage Market

Total Infrastructure Market

Enterprise Networking Market

Hybrid Flash Arrays

ODM Direct Storage Systems

Integrated Infrastructure & Platforms

All Flash Arrays

Hyperconverged Infrastructure

New Industries & Technologies Drive

Market Growth 2015 Forecasted Growth in WW Spending

Cloud-Related Spending in EMEA, 2015

Cloud services deployment models

Dedicated/single-tenant delivery platform Shared/multitenant delivery platform

Managed

private

cloud

Dedicated

Private

cloud

Virtual

private

cloud

Public

cloud

Hosted private cloud

Customer site Service provider site

Shared, standard service

Solution-packaged

Self-service

Elastic scaling

Use-based pricing

Accessible via the Internet

Standard UI technologies

Published service interface/API

Characteristics and definitions of cloud services:

Characteristics and definitions of cloud services:

Public Cloud

$7.5 B

Private Cloud Services $2.4 B

IaaS

$1.9 B

PaaS

$11.6 B

SaaS

Source: IDC European Cloud Strategies CIS

DataCentres are transforming into Clouds -

2015 Cloud Adoption

0% 10% 20% 30% 40% 50% 60%

Public IaaS

Public PaaS

Public SaaS

On-Premise Private Cloud

Hosted Private Cloud

Spain WE

18

Source: European CloudView Survey, n=933

Datacentres are transforming into Clouds -

Future Plans

0% 5% 10% 15% 20% 25% 30% 35%

Hosted Private Cloud

Public IaaS

On-Premise Private Cloud

Public PaaS

Public SaaS

Spain WE

19

Workload Disruption

20

IoT Big Data & Analytics

Big data pushes limits on Storage and Infrastructure

21

Big Data Market Size, Western Europe

• Market size will reach $3.6bn in 2015 and $6.8bn by 2016

• Around half of this spending is on infrastructure

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2011 2012 2013 2014 2015 2016 2017 2018

Storage Server Networking Software Services

$M

Infrastructure Implications

• Memory-optimized servers

• Merging relational and noSQL

• Real-time operational intelligence

• Analytics at Edge locations

• Hybrid cloud scenarios

People & Process Disruption: DevOps pushes

operational capabilites

22

From the big eating the small, to the fast beating the slow

23 Source: European Integrated System Survey, total =400 (103, 137, 160)

Q. On average how long (in days) does it take to

develop and deploy a new application?

36

38

40

42

44

46

48

50

10 to 99 empl. 100 to 499 500+

• Decreasing Time To

Value (TTV) will be a

key strategic

imperative for IT

leaders

• Handling change is

still problematic,

leading to slow

evolution and patchy

quality

• Market disruptions

and associated

opportunities risk

being missed

Can you change things to nurture innovation?

24

Source: European Integrated System Survey (December 2013), total =400

17%

19%

14%

39%

11%

Provisioning, patching, config management

New service request and approval mgmt

Vendor and internal meetings

Monitoring, troubleshooting, remediation

Innovation and new projects

Q: What proportion of time is spent

focusing on the following areas?

24


Keep the existing IT organization vital with continuous infusion of new skills, techniques, and culture

• Run an agile, rapid development process when business requirements dictate

• 3rd Platform technology adoption

• Legacy system and process replacement

Integrate systems from unstable to stable, and from experimental to operational. Operational It Management

IDC’s 3D Technology Leadership Framework Create A Virtuous Cycle of IT Value Creation

The Old Way of Buying Infrastructure…

Orchestrate Consolidate Virtualize Automate

Rack and blades

Bring Resources to Datacenter

Reduce physical servers

Speed up deployment Next Generation Approach

~25% EU

organizations

Storage and Networking

~50%

Rack and blades


Virtualization Layer

Rack and blades



I/O convergence

System Management

Build and Integrate Cloud Capacity

~15%

Storage, server, network aware of each other

Build or Rent Application Specific

Systems

Rack and blades



I/O convergence

Service Management

~10%

27

Integrated Systems do the integration legwork to speed time to value

Inte

gra

tion

IDC’s Approach to Integrated Infrastructure and Platforms

Integrated Platforms

Common pool of IT assets • Middleware, Database, Dev. Tools

• HW & SW assets tuned for service

• BA, OLTP, DW, BI, Collaborative

Integrated Infrastructure

Common pool of IT assets

Compute

External SAN Storage

Network

Infrastructure Management System SW

Servers

Network

Storage

Middleware

28

Hyper-Converged Infrastructure

Common pool of IT assets

Compute

Server SAN Storage

Network

Infrastructure Management

Integrated Systems are two distinct markets

VCE 28%

HP 20%

Cisco/NetApp

16%

EMC 12%

IBM 7%

Others 6%

Hitachi 6%

Dell 5%

Integrated Infrastructure

29

Oracle 47%

Others 32%

HP 10%

IBM 7%

Hitachi 4%

Integrated Platforms

Integrated Systems vs. Hyper-Converged

Converged Systems Integrated Systems

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps

Middleware-centric Database-centric

Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Hyperconvergence


Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps


Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Storage Volumes Virt.

Storage Function Virt.

Networking Virt.

With mixed Flash/HDD

storage

30

Integrated Systems Core storage and compute

functionality in a single,

highly virtualized, solution

All compute and storage

functions delivered through

the same server-based

resources

Typically in clusters and

scale-out

Q. What do you see as the top two major

benefits of Integrated Systems? Please select

top two

Integrated Systems: Agility, TCO, Utilization and Automation


Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Middleware

Apps


Compute Nodes

Storage

Internal Fabric

Operating System

Virtualization SW

Systems Management

Compute Nodes

Storage

Internal Fabric

Operating System

Systems Management

Database

Integrated Systems

31

Source: European Storage Survey, 2015; N = 498

0% 5% 10% 15% 20% 25% 30%

Improved agility / faster resource availability

Lower Total Cost of Ownership

Improved Utilization IT resources

Fewer management Tools

Improved IT staff Efficiency

Lower Maintenance Costs

Improved Disaster Recovery

Lower Power/Cooling Costs

Use Cases for Integrated Systems

32

Datacenter Transformation

IT Owned /CIO Driven/ potentially MSP run

Operational efficiency Predictable expansion Less over-provisioning

Inadequate preparation and rationalization

Application Specific

IT Owned /App Owner Driven/often MSP run

DB, EPIC…., VDI

Faster deployment Predictable performance

Mismatch in software licensing/pricing

New Service Creation

IT Evangelist/BU Leader/ Cloud Provider

Mobile or Analytic services (Precision Medicine)

Fast Geo expansion Rapid service expansion Monetize data assets

IT resistance Lack of flexibility

“If you don’t like the feeling of change,

You are going to like the feeling of irrelevance even less.”

Darrin Nelson, Sirius Computer Solutions


Automate to achieve

SLAs and Scale

Assess your Agility

and Maturity to

determine next steps

Success Factors

34

1 3

Build the right

infrastructure for

Innovation

2


Carla Arend

Program Director Infrastructure & Cloud

IDC EMEA

[email protected]

@carla_arend

mailto:[email protected]

powering your it - oracle | integrated cloud … · powering your it transform for ... core it no...

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