Business Case for Exalogic and Exadata - ba6.usba6.us/content/dox/oracle/exadata/Oracle-CSum_Exdata_Scharstein.pdfQuantify A Shift to Exadata/Exalogic* Oracle Insight •A methodology

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Business Case for Exalogic and ExadataConsidering which benefits to look for

March | 2011


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• Revenue growth & profitability

– Quality of service

– Scalability

– Availability

• Agility

– Time to market

– Standardisation

– Performance

• Cost Savings

– IT Savings

– Cost per transaction/customer

– Usage based pricing

Three business requirements are typically impacting IT today


The way IT experiences this is massively changing the way

IT is delivered with the requirements from business as the

driver and technology change as the enabler

• Controlling the cost as volumes grow and

availability demand increases

• Providing predictable services as

performance limits are approached

• Controlling operational risk as the

„headroom‟ reduces

• Preventing reputational risk from poor

customer experience or from breaching SLAs

• Avoiding non-compliance issues from ageing

hardware and software

• Resolving service incidents promptly as

infrastructure complexity increases

• Being agile to business needs

Key IT ChallengesDemand Vs. Capacity Forecast

Server upgrade?

More storage?

Faster storage?New architecture?

4

What next?


The requirements for a new platform must be delivering on

all these points …

• Automate all operations of applications and databases

• Respond better to unforeseen customer events

• Deliver a more stable and predictable service

.. meet planned and unplanned business

demands?

• Lowest administration costs per instance for any platform

• Scale with demand

• Decrease data center costs

... reduce the cost per database/application instance to maintain/improve margins

• Provide value adding services to customer

• Increase the number of change windows

• Reduce downtime (planned and un-planned).. be agile to customer needs

• Deliver practically unlimited scalability

• Ensure performance is always delivered

• Handle all types of workload

... deliver business continuity for any growth and

performance scenario


Building the new platform to sustain business

continuity should move you toward the cloud

SERVER1

SERVER7

SERVER2

SERVER3

SERVER4

SERVER6

SERVER5

Private

CloudIaaS PaaS

ITaaS

SaaS

Time

Consolidation Standardization IT as a Service Utility Computing

• Consolidate Servers

• Define SLA, build definitive

services library

• Organization of IT resources

to manage services

• Identify core technology ,

platform standards

• Standardize contracts

• Increase utilization and

virtualize resources

• Standardize technical

architecture, storage, servers,

network

• Services segmented by

customer deliverables –

Hosting, Operations,

Development

• Standardized operating

procedures

• Deploy monitoring tools and

scorecards for operations

• Virtualize technical

architecture, storage,

servers, network, VTL.

• Location agnostic to

leverage space and

available capacity on-line

• Auto-provisioning for

predefined environments

• Enable Service SLA‟s for

all services delivered

• Implement ITIL

• Automate ITIL based DC

processes

• Full elastic computing for

scaling on-demand

• IT as a Service

• Full elasticity with

automated provisioning

and de-provisioning

• Funded by a pay-per-use

utility model


Cloud economy connects CapEx/OpEx with the use and demand

patterns of the business

Source: Oracle Insight Research

Return CostYear 1 Year 2 Year 3 Year 1 Year 2 Year 3

Traditional Data Center Solution Private Cloud Computing Solution

Pay upfront for

hardware, software as

well as for

implementation based

on projected demand

Investments are made

based on utilization and

demand patterns of use,

provisioned in virtualized

infrastructure

One of the advantages of private cloud computing model is that the investment is incurred in

the same period it is utilized. Cloud management implies demand driven computing capacity.

For CFOs, this means that investments track closer to return on assets

© 2010 Oracle Corporation – Oracle and UN-ICC confidential 7


0%

20%

40%

60%

80%

100%

Comparative Hardware Costs

75% Reduction in Hardware Costs

50% Reduction from

Consolidation

25% Reduction from

Improved Performance

0%

20%

40%

60%

80%

100%

Comparative Data Center Costs

60% Reduction in Data Center Costs

40% Reduction from

Consolidation

20% Reduction from


0%

20%

40%

60%

80%

100%

Compartive Labor Costs

70% Reduction in Labor Costs

35% Reduction from

Consolidation

15% Reduction from


20% Reduction from

Greater Manageability

0%

20%

40%

60%

80%

100%

Comparative Software Costs

30% Reduction in Software Costs

15% Reduction from

Consolidation

10% Reduction from


5% Reduction from

Greater Manageability

For IT there are three primary value drivers that will be delivered

from driving towards the cloud Consolidation, Performance and

Manageability


Building an database & application platform as a PaaS on

Exadata and Exalogic delivers on the promise of the cloud?

$

Number of applications

Traditional

silo approach

▼COST

▲QoS

▲SCALABILTY

▲COST

▼QoS

▼SCALABILTY

Server Virtualization (IaaS)

▼COST

▼QoS

▼SCALABILTY

Oracle Database &

Application Platform (PaaS)


Investing In Private Cloud Yields Strong ReturnsUsing A “Model” With ~10,000 Employees And ~$1B In Annual Revenues And $30M IT Budget

$3M-5M freed-up cash from

reduced capital expenditure

$1M-$2M in deferring new

DCs and space requirements

in existing DCs

$1.5M reduction in operations

costs due to automation and

reduction in DC complexity

$1M reduction in energy costs

for increased utilization and

lights-out data center

Implementing private clouds creates annual recurring savings of up to $10M

KEY METRICS EXPECTED IMPROVEMENTS ESTIMATED BENEFITS

Source: Oracle Insight Analysis

Overall Average Best Practice Groups

0% 75%

30%IT Capital Costs

0% 50%

Site Infrastructure

Cost

40%20%

60%

0% 25%

Operating Expense15%10%

0% 75%

50%Energy Costs 70%

10


Based on customer case studies our experience with Exadata

gives a significant saving on deployment and maintenance

Build From Scratch with Components

Reference Configurations

Take delivery of Oracle

Database Machine

Weeks to Months

Pre-implementationSystem sizing

Acquisition ofcomponents

Installation and configuration

Acquisition ofcomponents

Installation and configuration

Testing andValidation

Testing andValidation

Weeks to Months

Oracle Exadata Database Machine

Server Pool pre-configured

Faster deployment

Lower Risk

< 1 Week after Delivery

Testing and Validation

Configuration

With Exadata, Commonwealth Bank of Australia reduced DB deployment time

from 3 months to < 1 week


The Commonwealth Bank is one of

Australia‟s leading providers of

integrated financial services

including retail, business and

institutional banking, funds

management, superannuation,

insurance, investment and broking

services. The Bank is one of the

largest listed companies on the

Australian Stock Exchange.

Use CaseCommonwealth Bank of Australia


• Take Advantage of Complimentary Workload Peaks

• Reduced peak-to-trough variance

• Asset Consolidation

• Reduced variance allows each server to be run hotter

• Server utilisation has increased from <15% to 80+%

• Elasticity

• CPU resource can be taken from anywhere in the grid as needed

• Horizontal workload scale out – without changes to any application!

• Cost Reductions:

• Server reduction – improved green footprint

• Oracle license reduction

• Reduced data centre hosting charges

• Higher Availability - Every App Inherits:

• Load balancing

• Full component-level HA failover

• Standby DR – RTO of 10 mins

• Many apps would not implement these features – too expensive

Use CaseKey Business Benefits

13© 2010 Oracle Corporation – Proprietary and Confidential


44% of CIO surveyed by Forrester indicated that they are

actively looking to build a private cloud in the next

couple of years

© 2010 Oracle Corporation – Proprietary and Confidential


Oracle Insight Is A Program That Help Our Top Customers In

All Stages Of The Technology Investment Lifecycle

Accelerate Technology

Transformation by Aligning

Project & Business Objectives

Align and Measure Technology

Initiatives Against Planned

Objectives

Establish the Business Case

and Roadmap for Technology

Investment

Continuously Unlock More

Value from Technology

Investments


Oracle Insight Will As An Investment Help You To Plan And

Quantify A Shift to Exadata/Exalogic*

Oracle Insight

• A methodology focused on enabling greater customer

business value

• Drives business impact by helping view technology as

enablers of business value

• Helps build a compelling value proposition

• Assists with alignment with your executive team

Industry

Experience

Solution

Knowledge

Value

Analysis

* Availability based on qualification of each potential customer. For more information contact your local sales rep.


Besides quantifying potential benefits of

modernization, we analyze and define the KPI’s to

monitor the modernization

Through our benchmark database we define target- and base levels for

performance and operations and use these as KPI’s for management to monitor

the infrastructure


ITIL v3.0

COBIT

USMBOK

ISO 20000

TOGAF

Oracle Unified Method

SAS 70 Type I and II

Oracle Insight will select the right processes based on the challenges to be

resolved and dig deeper into those processes to uncover these improvements…

DC PLANNINGDC OPERATIONAL

DESIGNDC OPERATIONS

Services Planning

SLA Management Customer Care

Configuration and

Change Management

Performance and

Availability Management

Architectural Planning

Release Management Utilisation Management

Security ManagementProvisioning and Patch

ManagementInformation Lifecycle

Management

Virtual Machine

Server

Storage

Network and Facilities

Key Performance Improvement Opportunities Are

Identified Based On A Comprehensive Framework


Thank You

Accept Nothing Less

Documents

Business Case for Exalogic and Exadata - ba6.usba6.us/content/dox/oracle/exadata/Oracle-CSum_Exdata_Scharstein.pdfQuantify A Shift to Exadata/Exalogic* Oracle Insight •A methodology