Next Generation Data Centre costs = Stagflation 9 How is the CIO, the CTO and the VP Infrastructure doing? Presentation_ID © 2013 Cisco and/or its affiliates. All rights reserved

© 2013 Cisco and/or its affiliates. All rights reserved. Presentation_ID Cisco Public

This image cannot currently be displayed.Next Generation Data Centre Architecture – Foundation For Delivering IT-as-a-Service Mark McKenzie, Director Data Center & Virtualisation Practice Cisco APJC Advanced Services

2


Hypothesis We in the midst of a fundamental disruptive innovative shift in the way IT

services are consumed This is a fundamental business model shift for internal and external

service providers The shift requires a next generation Data Centre capable of supporting

self service access, rapid elasticity, resource pooling, broad network access, and consumption lifecycle management The shift is not optional, the only question is will you seize the

opportunity and drive a transformational change program, or risk being marginalised by superior service providers

3

Carpe Diem!


Agenda

The challenge facing IT Executives today Emerging Technology Trends Offer the Solution – ITaaS ITaaS Requires a Next Generation Data Centre A Programmatic Approach to get to ITaaS Case Studies Summary and Q&A

4


Agenda

The challenge facing IT Executives today Emerging Technology Trends Offer the Solution – ITaaS ITaaS Requires a Next Generation Data Centre A Programmatic Approach to get to ITaaS Case Studies Summary and Q&A

5

Why do organisations need their Data Centres?


It’s all about the App!!!

The Data Centre is there to host the Applications…

…which are required to run the business

7

What is the business environment like for most companies today?


We live in challenging times!!!

Slowing/stalled/declining growth + Rising costs = Stagflation

9

How is the CIO, the CTO and the VP Infrastructure doing?


Struggling to be relevant!!!

• Demand > Capacity by 1.5 to 2 times • Poor customer satisfaction • Budget cut ~10% every year • Increasing security risks • Tech savvy employees demanding better service • Ever increasing volumes of data • Be more green! • Etc.

11


CEO Biz Unit Leads

CIO/CTO Ops & Platform Owners

Line of sight to the $$s

• Customer Value • Shareholder

returns • Business Agility • Collaboration • Top line Growth • Bottom Line

improvements • Corporate

Governance • Industrial Security • Employee

Retention

• Customer

Relationship Management

• Revenue opportunities

• Market share • Time to market • Brand Equity • Market Disruptions • Trade Secrets • Market Reach and

Expansion • Mergers &

Acquisitions • Cost controls • Talent

Management

• Business

Relevance and outsourcing

• Demand Management

• Tech Trends • Cost Controls • IT Talent

Management • Tech Refresh • Time to market for

IT services • Cost per

transaction • IT Asset

Management • Governance • IT Operations

• SLA’s • New

Implementations • Capacity Change,

Release, Problem and incident Management

• Talent acquisition and retention

• Optimization • Training • Labs

IT Execs want Alignment to the business


Agenda

The challenge facing IT Executives today Emerging Technology Trends Offer the Solution- ITaaS ITaaS Requires a Next Generation Data Centre A Programmatic Approach to get to ITaaS Case Studies Summary and Q&A

13

The good news…technology has many of the answers…


Innovative enablers of Automated IT Services • Converged Infrastructure • Virtualisation • Automation/Orchestration • Private Cloud, Public Cloud, Hybrid Cloud • IaaS, PaaS, SaaS • Software Defined Networking • Service Catalog/Self-Service Portal • VXI/VDI • BYOD • Big Data • Etc.

15


Adoption of these emerging technologies is gathering pace, for example: The Cloud Market

16

2012–2013 IaaS Grows $760M

2012–2013 SaaS Grows $14B

Source: Forrester Research


Why Automated IT Services?

17


The Data Centre must transform to embrace these innovative emerging technologies in order to provide a foundation for a service oriented consumption based approach to IT, thus affording IT Execs a platform on which to align IT services with business objectives.

SDN

Big Data Analytics

Application Lifecycle Management Mobile Apps

BYOD Cloud

Consumerisation of IT Internet of Things

Cyber-security Enterprise Architecture

Cloud Brokering

Social Computing

Mobility

Data Centre

Business Processes

Application Development Framework

VXI/VDI

How should IT Execs adopt these innovative emerging technologies in the Data Centre?


Traditional Practices

Breakdown Emerges

Acceptable New

Feature

Breakdown Engrained

Accepted Standard

Business Practices (Strategy, Process, People, Technology)

Business Integration (Strategy, Process, People, Technology)

Innovation

Cisco’s Innovation LifespiralSM


© Clayton Christensen – The Innovator’s Dilemma


Minor

Factor Attributes

Time • Cycle time reduction • Time to market • Longevity • Etc.

Money • Revenue production • Expense production • Expense reduction

Quality • Usability • Customer Satisfaction • Durability • Performance • Etc.

Governance • Safety • Security • Compliance • Approvals • Etc.

Routine Major Fundamental / Business Model

One-to-many Factors apply and Attributes can

go up or down

Innovation LifespiralSM – Innovation Impact

Sustaining Disruptive



Breakdown Emerges

Breakdown Engrained

Innovation

Accepted Standard

Acceptable New

Feature



Breakdowns often “designed” into

innovation Typically we live with breakdowns for a long time

Adopt innovation here = great opportunity

Adopt innovation here = opportunity

and risk Adopt innovation here = great risk

Sometimes we continue to live with breakdowns

despite innovations

Innovation LifespiralSM - Observations



Breakdown Emerges

Breakdown Engrained

Innovation

Accepted Standard

Acceptable New

Feature



Innovation LifespiralSM – Some everyday examples…

So…is the current Data Centre ready to embrace the emerging technologies which will enable IT and IT Execs to remain relevant?


Complex Slow

Fast Simple

Brittle

Expensive

Flexible Cost Effective



Legacy DC

Mgmt Server

Next Gen Unified DC No!

Can the Legacy DC support ITaaS?

The Data Centre must go through a transformation


Service Portal of Standard Offerings

Self-Service Ordering

Service Catalog with SLAs + Pricing

Source: Amazon Web Services

Lifecycle Management + Pay-Per-Use

The Catalyst for Transformation… The Need to Make IT as Easy as AWS


Agenda


28

Cisco Confidential © 2010 Cisco and/or its affiliates. All rights reserved. 29

Legacy DC Management Slow, Complex, Brittle, Expensive

Future DC Management Fast, Simple, Flexible, Cost-Effective

Legacy IT IT-as-a-Service

Broad Network Access

Resource Pooling

Rapid Elasticity Measured Service

On-Demand Self Service

Network

Compute

Storage


Data Centre Networking Unified Fabric

Unified Computing

Hybrid Clouds Private Clouds

Consolidation Virtualization Automation Utility Market

Applications

Servers

Network

Storage

Application Silos

Zones of Virtualization

ITaaS (also called Internal Cloud)

External Cloud Services

The Transformation Journey Transition to a Service-Enabling DC Infrastructure


4

User Portal

8 Process and Governance

7 Security and Compliance

10 Applications

9 (Software) Platform

2 Virtualization and Abstraction

Compute Storage Network

1 Facilities and Infrastructure

Space, Power, Cooling 3

Automation and

Orchestration

Service

Catalog and

Managem

ent

5

Service

Financial M

anagement

6

Existing System Integrations

DC Domain

1 Facilities and Infrastructure

2 Virtualization and Abstraction

3 Automation and Orchestration

4 User Portal

5 Service Catalog and Management

6 Service Financial Management

7 Security and Compliance

8 Process and Governance

9 Platform

10 Applications

Next Generation Data Centre ArchitectureCisco Domain TenSM


Faci

litie

s /

Infr

astr

uctu

re

Virt

ualiz

atio

n

OS

/ M

iddl

ewar

e /

DB

Appl

icat

ions

Man

agem

ent /

Au

tom

atio

n /

Orc

hest

ratio

n /

DC

Inte

rfac

e

Use

r Int

erfa

ce

Serv

ice

Man

agem

ent /

Se

rvic

e C

atal

og

Fina

nce

/ C

harg

ebac

k

Proc

ess

/ G

over

nanc

e /

Ope

ratio

ns

Secu

rity

/ C

ompl

ianc

e

5 Public Cloud

4 Private Cloud

3 Automated

2 Virtualized

1 Consolidated

0 Legacy

DC Capability Assessment Matrix


Faci

litie

s /

Infr

astr

uctu

re

Virt

ualiz

atio

n

OS

/ M

iddl

ewar

e /

DB

Appl

icat

ions

Man

agem

ent /

Au

tom

atio

n /

Orc

hest

ratio

n /

DC

Inte

rfac

e

Use

r Int

erfa

ce

Serv

ice

Man

agem

ent /

Se

rvic

e C

atal

og

Fina

nce

/ C

harg

ebac

k

Proc

ess

/ G

over

nanc

e /

Ope

ratio

ns

Secu

rity

/ C

ompl

ianc

e

5 Public Cloud

4 Private Cloud

3 Automated

2 Virtualized

1 Consolidated

0 Legacy

Capability Matrix – Current State


Faci

litie

s /

Infr

astr

uctu

re

Virt

ualiz

atio

n

OS

/ M

iddl

ewar

e /

DB

Appl

icat

ions

Man

agem

ent /

Au

tom

atio

n /

Orc

hest

ratio

n /

DC

Inte

rfac

e

Use

r Int

erfa

ce

Serv

ice

Man

agem

ent /

Se

rvic

e C

atal

og

Fina

nce

/ C

harg

ebac

k

Proc

ess

/ G

over

nanc

e /

Ope

ratio

ns

Secu

rity

/ C

ompl

ianc

e

5 Public Cloud

4 Private Cloud

3 Automated

2 Virtualized

1 Consolidated

0 Legacy

Capability Matrix – Desired State


Faci

litie

s /

Infr

astr

uctu

re

Virt

ualiz

atio

n

OS

/ M

iddl

ewar

e /

DB

Appl

icat

ions

Man

agem

ent /

Au

tom

atio

n /

Orc

hest

ratio

n /

DC

Inte

rfac

e

Use

r Int

erfa

ce

Serv

ice

Man

agem

ent /

Se

rvic

e C

atal

og

Fina

nce

/ C

harg

ebac

k

Proc

ess

/ G

over

nanc

e /

Ope

ratio

ns

Secu

rity

/ C

ompl

ianc

e

5 Public Cloud

4 Private Cloud

3 Automated

2 Virtualized

1 Consolidated

0 Legacy

Capability Matrix – Gap AnalysisLargest Gaps / Effort Required


Agenda


36


Next Generation Unified Data Centre Architecture serves as a

foundation for ITaaS…

How IT Executives want their services to be seen

and consumed…

How Business Executives want the their teams to see things…

Prod

ucts

&

Serv

ices

Happy Customers

$$$

Business Processes

Craw

l W

alk

Run

ITaa

S Tr

ansf

orm

atio

n O

ppor

tuni

ty

The end goal… Business - IT Alignment


1 ITaaS/DC Transformation Strategy & Planning

2 Migration Project: Platform & Application Automation: Cloud, ITAS

3 Security Implementation Service Assurance/DCOM Implementation

4

IaaS PaaS Desktop-as-a-Service (VXI/VDI Project) Collaboration-as-a-Service Network-as-a-Service Storage-as-a-Service BYOD-as-a-Service Etc.

Cisco Util-ITSM

An ITaaS/DC Transformation Program (Phases)


Industry Trends &

Desired State

Gap Analysis & Strategy

Recommendations

Business Architecture Assessment

Readiness Assessment

DC Architecture (Current State, Future State, Domain 10)

Security Assessment & Planning

Ops Plan DCOM ITSM

OSS/BSS

Solution Design

Service Portfolio

Service Demand

Management

Services Development

Retail Business

Architecture

PMO (Program Project

Structure)

Implementation Plans

(WBS/OBS)

Implementation Planning

Risk & Issue Management

Plan

Go To Market Plan

Prioritised Rollout

Roadmap

GTM/ Financials

Financial Impact Assessment

(ROI, Full GL)

Phase 1 ITaaS/DC Transformation Strategy & Planning


Business Integration

Valu

e Re

aliza

tion

Other Opportunities

Define Content (Standards)

- (SO) Describe - (SR) Orderable - (SI) Manage

Publish Content

- Catalog Structure - Marketing

Manage Content - Foundation - Design Process/Tools - Governance Processes

Request Management (Demand)

- Entitlements - Policy Management

Request Management (Fulfillment)

- Workflow Orchestration - Basic Integrations

Manage Service Lifecycle

- Service Item Management - Standards Design & Mgmt.

Monitor Demand & Service Level Perf.

- Shadow SLA/OLA Tracking - Capacity Management

Request Management

- Automation & Integration - Process Improvements - Operation Efficiencies


- Subscription Mgmt - Workload Management

Forecast Demand & Perf. Options

- Quotes & What If Analysis - Support Budgeting - Quota Management - Agreement Creation

SLA and Quality of Service Mgmt

-Management Visibility -SLA Reporting -Vendor Performance Mgmt

Account Management

-Management Visibility -Entitlement by Agreement -Chargeback/Utility Tracking

Workplace Services



Publish Content











Request Management








Account Management


Enterprise IT (IT to Business) - SaaS



Publish Content











Request Management








Account Management


IT (Infrastructure to App Dev) PaaS



Publish Content











Request Management








Account Management


Data Centre Services (Infrastructure to Infrastructure) - IaaS



Publish Content


Catalog Content - Community - Design Process/Tools - Governance Processes - Catalog Program Management - Catalog Infrastructure









Request Management








Account Management


Standardize

Operationalize

Optimize

Capitalize

ITaaS Maturity


Agenda


41


Cisco Intelligent Automation for Cloud

Service Catalog Show/chargeback

VMware ESX/ESXi Network Virtualization

OVF OVF*

OVF Image Repository

PaaS Integration (API) Workload Mobility

Logical Segmentation Control, Security and Fault Isolation

Cisco Nexus

Cisco UCS x86

Virtualization Automation Self-service Multi-tenancy Elasticity Unified Infrastructure

Service Unit Cost

VM 2x4 – Silver $

Bare-metal 8x64 $$$

Cisco IT Elastic Infrastructure Service (CITEIS)

CITEIS – Cisco’s ITaaS Journey


1. Secure Multi-tenancy 2. Scalability & Sizing 3. High-Availability 4. Service Orchestration 5. Service Assurance

Unified Data Centre Networking

Integrated Compute Stacks

Compute NAS SAN

VM

DC

V

MD

C

VM

DC

Data Centre

Access

Services

Aggregation/Access

Core

Cloud Intelligent Network

Virtualized Multi-Service Data Centre (VMDC)Cisco Validated Design


On-Demand, Self-Service Provisioning of IT Resources

Easiest to Use, Delivers Faster Time to Value

Optimized for Cisco Architectures, Complements Existing IT Systems and Management Tools

Policy-Based, Model-Driven Approach Reduces TCO

Automation

Intelligence

Flexibility

Policy-Based Network

Infrastructure Resource Management

Policy-Based Compute

Network

Compute

Storage

Service Profiles (CPU, Storage, Memory) Physical-Virtual, Multi-Hypervisor

Network Containers Dynamic Network Provisioning

On-Demand Provisioning

Service Catalog

Service Governance

Integration and Automation

Lifecycle Management

Pay-per-Use

Self-Service Portal and Orchestration

Cisco Intelligent Automation for Cloud IT-as-a-Service Requires a New Management Approach

Cisco Confidential © 2010 Cisco and/or its affiliates. All rights reserved. 45


Automation + Unified Data Centre

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Com

pute

TCO

($

/Qtr

/OS

inst

ance

)

Delivery Time

Virtualization

6–8 Weeks

(Custom) 2–3 Weeks

(Manual)

2–9 Days E2E 15 Min VM

15 Minutes (Self-Service)

Legacy (Rackmount): All Physical

Legacy: Medium Virtualization: 54% Current State Legacy/UCS: 46/54% Virtualization: 75%

Target State Private Cloud: 100% Virtualization: 80%

Virtualized

Today Unified

-37% -27%

-27%

Cisco Solutions also provide Economic Benefits in our own Cisco Private Cloud


LATAM Cloud In-Production

AS Revenue $K

Expected Product Revenue $M

Customer Challenge

• LATAM cloud market potential for Cloud of 5.8B by 2015 • Desired launch of both SaaS and IaaS services for Enterprise & SMB markets • No room for failure, as 6 months wasted with Cisco competitors • Need for Single vendor to Build & Operate (1 yr)

Solution • Cisco AS lead Cloud Build in 4 hub countries & 1 yr of Operate • Automation Solution for SaaS Cloud Services Broker (CSB) with Parallels &

IaaS services using VMDC • Automated Network Container designs for SMB market

Impact • 6 SaaS services (e.g. Hostopia, Mozy, Hosted Exchange) are already in production with over 2000 new customers

• IaaS solution launched • Planned Cloud launch in 18 LATAM countries with multiple OpCos


Global Financial launches multi-service cloud

AS Revenue $K

Expected Product Revenue $M

Customer Challenge

• Establish a multi-service, easy-to-manage internal cloud to eliminate the need for costly third-party hosting services

• Increase efficiencies of Developer Operations (DevOps) and reduce time for creating dev/test environments

• Improve scalability and accelerate Site Operations deployment to better meet customer demands and improve service time-to-market

Solution • Delivered powerful and integrated Vblock environment using Cisco UCS servers and networking, EMC storage, and VMware virtualization

• Implemented Cisco Intelligent Automation for Cloud to simplify provisioning and deployment in Community Cloud and in DevOps

Impact • Eliminated need for third-party hosting services • Accelerated time to provision new systems and services from weeks to hours • Achieved greater elasticity in systems to quickly adjust to changing spikes in service

demands • Improved application time to market by enabling DevOps to self direct development of

dev/test environments • Improve data centre performance and boosted developer productivity


Agenda


49


Situation: • Consumers are now driving the

demand for ubiquitous, flexible, elastic services – anytime, anyplace on anything

• The market is now demanding Pay as you go terms with SLAs

• Services are now being consumed in a self-service model

• Massive abstraction technologies are now readily available

Complication: • Consumers now have access to

services via external suppliers e.g. AWS

• Legacy Enterprise IT depts are not setup to deliver services in this ‘retail’ mode

• To deliver services in a retail mode the changes to the IT organization and DC are pervasive

Implication: • The IT organization need to build

itself around a entirely new business model - includes Skills, Structure, Funding, Governance and Technology

• Cost benchmarks are now driven externally

• Threat of irrelevance due to a lack of agility (when compared externally)

Position: • ITaaS is now an imperative for

Enterprise IT organizations to remain relevant

• New capabilities for Online Retail to Business and Service Brokering need to be built

• This will require pervasive changes to all aspects of the business that will be engaged in delivering these services

• This is a multi-year program

Action: • Enterprise IT needs to embark on

a ITaaS Journey • Create a CIO sponsored change

Program to manage this new build • Develop a User centric mindset to

build a secure, highly optimized, operationally excellent environment to offer IT services

Benefits: • Cost optimization – better

utilization, lower cost of transaction, fewer mistakes

• Remain relevant to the business and drive innovation

• Agility – reduction in cycle times, reduced time-to-market

• Improved governance and compliance

• End-consumer aware

In Summary…

Q & A


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Documents

Next Generation Data Centre costs = Stagflation 9 How is the CIO, the CTO and the VP Infrastructure doing? Presentation_ID © 2013 Cisco and/or its affiliates. All rights reserved