utility computing for shared services
TRANSCRIPT
Utility Computing for Shared Services
Massachusetts Digital Government SummitSeptember 23rd, 2004 – Boston, MA
Perry BosterArchitectSun Microsystems Federal, Inc.
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Presentation Outline● Customer Reality● What are Shared Services ?● What is Utility Computing ?● Technology Enablers● Implications● Success Factors● Take Aways● Call to Action● Q &A
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Server Utilization
Servers/Admin
Terabytes/DBA
NetworkPorts/Admin
Projects Deployed/
Quarter
Availability
6-15%
99.9%
15-30
50-100Few
60+%500+ 100TB 500+ 100 %Many
1TB
Customer Reality
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What are Shared Services ?
● Reduce and optimize costs associated with an agencies non-core activities
● Improve operational efficiencies and productivity● Provide expanded/better services to internal
departments or customers● Measure and better understand back office costs,
efficiencies and business unit necessities as a pre-curser to outsourcing
Shared Services often involves some form of centralization, and most importantly involves applying marketplace and business principles to the management and provisioning of services.
www.sharedservicesnetwork.com
The Primary Objective of Shared Services is to:
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What is “Utility” Computing ?a) Pay-for-use Pricing Business Modelb) Data Center Virtualization and
Provisioningc) Solves Resource Utilization Problemd) Outsourcinge) Web Services Deliveryf) Automation All o
f the A
bove
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Utility Solution – Your Perspective
Consumer Provider
Pricing
Security
ResourceUtilization
ServiceAssurance
SLATechnologyRefresh
vs
SystemAdminsApplication
Sizing
ServiceProcurement
InfrastructureProcurement
EquipmentMaintenance
Consultants
ContractorManagement
Availability
Capacity Planning
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Utility Model
CapacityCapacity
ProcurementProcurement
OperationOperation
Pay-As-You-GoPay-As-You-GoLeaseLeaseBuyBuy
FixedFixed TCOD/CODTCOD/COD Grid/Grid/DynamicDynamic
SelfSelf ManagedManaged OutsourcedOutsourced
ScalingScaling EnterpriseEnterpriseServersServers
WorkgroupWorkgroupServersServers
Blade/EdgeBlade/EdgeServersServers
Matrix of Decision Points ?
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Policy and Policy and AutomationAutomation
ProvisioningProvisioning
VirtualizationVirtualization
IPIPNetworksNetworks
StorageStorageNetworksNetworks
ServerServerNetworksNetworks
Foundation Foundation ResourcesResources
Tele
met
ryTe
lem
etry
● Virtualize platform, automate provisioning, and optimize through policies
● Unify heterogeneous resources into “pools” (processors, storage, network). Make data centers work like “systems”
● Policy-driven services rightsize automatically
● Metering and Monitoring
Key Technical Enablers for UC
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Management ComplexityToo Many Different Things to Manage
AppDBStorage
Web Network
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Shared Service
SharedService
Shared Service
2
1
Infrastructure VirtualizationResource Pools
Storage Servers Network
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Application Provisioning
Applications
Server Pool
Network Pool
Storage Pool
Shared Services
Controlled by Policy andAutomation
Utility C
omputing G
ridW
eb
App
Ser
ver
Mes
sagi
ng
Dire
ctor
y
Shared Service 2
Shared Service 3
Shared Service 1
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Metering and Monitoring TechnologyCustomer Web Portal
SSLSSLFirewallProxy
Reporting Server
MeteredSystems
Telemetry
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Utility Pricing:● Base fee + variable usage charge
– CPUs, I/O, GBs, etc.– Some combination or aggregation of the above
● Transaction based- $X per service transaction
● Fixed fee or subscription● # of users per month● One size does NOT fit all
“What Will It Cost or How will I Charge?”
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What Are the Implications?● Changes to your business processes
– Are there regulatory requirements that apply to UC ?
– Agencies own data, but not technology processing it
– Secure data in a shared infrastructure– Management of outsourcing/utility
relationship– Change in the way you conduct internal
business and departmental charge-back– Ownership/maintenance of IT, technology
decisions shifts to service provider
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What Are the Implications?● Changes to your financial model
– Shift in how you buy IT● From buying parts to buying service?● From capital outlay to base fee plus usage?● From multi-year to annual or monthly contracts?
– Infrastructure and capital assets shift to service providers
– Chargeback model(s)● How are costs measured and allocated? How is
service pricing handled?● Automated metering and billing will become
increasingly more important
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What Are the Implications?● Changes to your organization dynamics
– Who “owns” IT? Technology decisions shift to the Service Provider as:
● IT buying and maintenance shifts to service provider(s)● IT staff become strategic decision makers (services,
SLAs, etc.)● IT becomes manager(s) of outsourcing/utility
relationship(s)– Business partners– IT staffing and personnel– General organizational maturity/willingness to
embrace change
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Critical Success Factors● People
– Project manager independence and support– Willingness/ability to embrace change– Set/manage expectations
● Executive sponsorship– The right sponsorship on both sides (customer and
partner) is CRITICAL to a successful UC deployment
– CXO is preferred/VP of LOB is required● Politics
– Server and application ownership– “You can have my server when you pry it from my cold,
dead hands!”● Firm mandate to do so
Take Aways● UC provides technologies for shared service providers,
but is more of a business model for consumers of shared services
● Intelligently matches IT resources to business demand on a pay-for-use basis
● Helps solve the resource utilization problem● Shift in business paradigm from buying IT to buying a
level of service● UC is NOT a get well plan for a poorly run operation● One size does NOT fit all● More questions than answers ? Good, you're thinking !
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Call to Action● GET EDUCATED! Engage your partner(s) to help
answer your questions:– Business/financial/organizational/technical– Educate all players in your value chain
(employees, suppliers, customers, competitors, etc.)● Start planning and readying your organization
– Optimize infrastructure (consolidation and migration) and costs; implement best practices, embrace open system standards
– GET READY FOR CHANGE! Embrace it/leverage it● PROVE IT!
– Do a workshop - Make potential vendors offer proof points that fit your model, or work with them to validate a model for your organization
– Pick a pilot and try it out
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Backup Slides● Additional information follows
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Risks in a UC World● Data Backup● Data Security● Partner Competency● Defining SLA● Getting value from charge back
