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IT As Value Chain: a Model for Data Center Transformation

White Paper: data Center Transformation

IT As Value Chain: a Model for Data Center Transformation

Contents

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

A brief history . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

A glimpse of the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Business demands: seven suitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

The advent of a new IT model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

The Symantec Data Center Transformation Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Using the Data Center Transformation Model to optimize your IT supply chain . . . . . . . . . . . . . 19

Key benefits and outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Summary and call to action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

About Symantec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27


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Executive summary

Today, more than ever, business is dependent on information technology (IT). The effectiveness of

IT has a direct consequence on the health of business. There are many examples of IT inefficiency

having an adverse effect on business results:

• Systemdiversityandtechnologychurndriveshigherinfrastructuretotalcostofownership

(TCo) and decreases asset utilization.

• Sub-optimaloperationalandmanagementprocessescausechallengeswithqualityofservice,

flexibility, and agility.

• Lackofarchitecturalrigorforapplicationsandinfrastructuredrivessiloeddevelopment,

increases complexity, and impedes opportunity for timely and accurate information integration.

not all of these issues are wholly attributable to IT itself; after all, IT does not operate in

avacuum.BusinessestodaymaketremendousdemandsonIT—intermsofsystemsflexibility,

scalability,andresponsiveness—andyetoftenfailtocreateacollaborativeenvironmentfor

mutual success:

• Budgetandprocurementpoliciesdrivetacticalbehaviorandprohibiteffectivedemand

management and capacity aggregation.

• Lackofjointbusiness/ITcapacityplanningresultsinspontaneouspressureondatacenter

space, power, and cooling.

• Time-to-marketpressureresultsinapplicationsprawl,increaseslifecyclecosts,andhampers

serviceability.

These internal forces and the consequent tension are amplified through the imperative to

address challenges such as:

• Informationaccuracy,access,andsecurity

• Compliancewithregulationsandinitiatives

• Environmentalawarenessand“eco-friendly”corporatebehavior

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our focus is the enterprise data center, and we present a holistic model, the symantec™ data Center Transformation model, based on the concept of an IT supply chain.

Thismulti-dimensionalportfolioofever-changingandinterdependentchallengescannot

bemeaningfullyaddressedthroughone-dimensionalproblem-solvinginitiatives.Rather,the

challenges need to be considered in the context of a more holistic model that facilitates ready

identification, examination, and understanding of these interdependencies.

In this white paper we examine the underlying causes of IT complexity and its impact on the

multi-facetedrelationshipbetweenITandthebusiness.Ourfocusistheenterprisedatacenter,

and we present a holistic model, the symantec™ data Center Transformation model, based on the

concept of an IT supply chain.

Itisourassertionthatapplyingthismodelallowsthecomplexnetworkofchallengesto

beeffectivelyaddressedthroughasystematicapproachtore-configuringtheend-to-endIT

supply chain, resulting in sustainable improvements in data center architecture, engineering and

orchestration.

In turn, these improvements drive and support fundamental change bringing greater

alignment and cohesion across the business and IT, facilitating adoption of IT advances and new

procurement models, with consequent increase in agility and value.

A brief history

The last 40 years have seen a significant evolution in commercial adoption of IT. IT is now much

more accessible and is no longer the exclusive province of large corporations. This evolution has

changedhowbusinessthinksabout,andwhatitexpectsfrom,itsinvestmentsinIT.

ITwasinitiallyusedfordiscretetaskautomationusingsoftwaredevelopedin-houseandrun

onlarge,expensive,andhighlycomplexmainframecomputers.ITwaseffectivelya“blackart,”

controlled by those few pioneers who understood how to configure, operate, and support the

systems.

Acquisition, development, and operational responsibility was vested with the IT department,

whichwasstructuredinto“development”and“operations”functions—functionsthatfrequently

exhibited feudal tendencies towards each other.

A decade or so later saw the availability of standard methods for storing and accessing

data:relationaldatabasesoftware.Thissoftware,combinedwithlower-costhardwarethatwas

powerfulenoughtohandledepartmentaldataprocessing,gaverisetoemergenceofclient/server

computingandcommercialoff-the-shelfsoftware.


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Figure 1: Evolution of systems architectures

Client/servercomputingandcommercialsoftwareapplicationsbroughtaboutatectonic

shift in the control of IT. Instead of having to wait for the IT department to develop the required

application software, the business was able to purchase it from a third party, together with

external services for customization and training.

Overa10-yearperiod,thisbifurcationincontrolofITacquisitionledmostlargecorporations

tocreatemany“islandsofIT,”eachwithitsowndatabaseandhardware.Theoveralllackof

control and inability of IT to enforce standards gave rise to a proliferation of hardware devices,

as each commercial application came with a stated preference (at minimum) regarding choice of

hardware and database system.

Mainframe

Web-based multi-tier

Interlinked multi-tier

Client/Server

1960s 1980s 1990s FuturePresent

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Bythelate1980sandearly1990s,corporationshadtothinkbeyondthesimpletask

automation enabled by those early transaction processing systems, in order to address four

pressing strategic imperatives:

• Theglobalizationofmanufacturingandmarkets

• Theneedforincreasedefficiencyandproductquality

• Thedemandforshorterbusinesscycles(conceptðdesignðmanufacturingðdelivery)

• Pending“Y2K”issueswithexisting(legacy)systems

Theanswertothesechallengeswastothinkintermsofautomatingtheprocessesthat

were executed to perform routine business operations. Automation and management of these

processeswasachievedthroughbusinessprocessreengineering(BPR)—acomplexandcostly

undertakingthatrequiredtheadoptionandcustomizationofenterpriseresourceplanning(ERP)

software running on the most powerful computer systems available.

This BPR exercise demanded the interconnection of the disparate systems that had been

cultivated throughout the various departments in the business. Interconnection was necessary

to permit effective sharing and processing of the corporate data, as demanded for process

automation.

Connectingacrossthesedissimilarsystemsinareliableandefficientmanner(knownas

enterpriseapplicationintegration,orEAI)wasamajorsystemsandsoftwareengineeringeffort,

itself requiring the purchase of yet more hardware and specialist software.

By the turn of the millennium, business was utterly dependent on IT for its survival; however,

IT was now wrestling with extreme complexity brought about by excessive diversity in both

hardwareandsoftware.Thisdiversitywasaconsequenceofweakcorporategovernance,poor

budgetandprocurementpolicies,aggressivemergersandacquisitions,andlackofrigorwithinIT

itself.


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Thelevelofdependencymeantthatpoorperformanceorlackofsystemavailabilityno

longeraffectedjustonedepartment,butunderminedtheoperationofthebusinessandput

itsreputationatrisk.Yetthechallengeofcomplexitymeantthatthemostefficientresolution

forsuchissuesappearedtobetoaddmorehardwaretoresolvecapacityand/orperformance

problems—butthat,too,hadalonger-termimpact.

Theburstingofthedot-combubbleearlyinthenewmillenniumledtoahardeningof

businessattitudetowardsthecostofIT.BusinessstartedtodemandthatIT“domorewithless,”

andbudgetswerecut.ITbecameseennotasabusinessenabler,butasaninhibitor—inefficient,

slowtorespond,withineffectivecontrols,anddeliveringpoor-qualityorinconsistentresultsatan

unacceptably high cost.

This180-degreeturninattitudetoITwasaccompaniedbyashiftinexpectationofthe

contributionofthechiefinformationofficer.TheCIOwasnolongerexpectedtobea“master

technician,”butratherasavvybusinessleaderwhowascomfortableandskilledinpeople

management;thelanguageandmodelsofcorporatefinance;andissuesofrisk,regulation,and

compliance—aswellashavingasolidunderstandingofbusinessoperationsandtheprevailing

marketplace.

many organizations suffered as a consequence of the above, and many IT leaders struggled

to adapt to the changing expectation of their role, which led to higher IT costs; increased IT

complexity,risk,andcost;andleadershipchurn.

A glimpse of the future

Based on performance over the past 40 years, business has every right to be concerned about

the state of IT. In many organizations, IT is essential for driving increased business expansion and

reducedoperatingcostsbydeliveringandsupportingcorebusinessservices—intoday’sworldof

e-commerce,ifITbreaks,businessstops.

Commoditization of IT hardware and the convergence of digital processing, content, and

communications are driving demand for IT to previously unimaginable levels. This explosive

growthinthedemandto“getconnected”isclearlyevidentinfigure2.

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1960 1970

Systems-centric

PC-centric

Network-centric

Customer-centric

What next? — stages of IT industry expansionSource: David Moschella, Waves of Power

1980

3,000

1,000

100

10

1

Proprietarysystems

De factohardware

and softwarestandards

De jureInternet

standards

Information,content, andtransactionstandards

1990 2000 2010 2020

Note: Logarithmic scale, expressed in millions of users

Figure 2: Stages of IT industry expansion

Converged mobile devices offer the ability to create and send a digital recording of almost

anyexperience—butthatcontent-richrecordingdemandssignificantprocessing,communication,

and storage resources. This is exacerbated by new countries and communities racing to get online

andacceleratingtheadoptionof—andthedemandfor—newchannelsofdigitalinformation

capture,storage,andretrievalinavarietyofformats,“anytime,anywhere.”

Handlingthesenew“richdatasources”andsupportingthesheervolumeanddiversityof

end-userdevicesplacescurrentITarchitecturesandinfrastructure—whichweredesignedfor

efficientprocessingofstructured“transactional”data—undergreatstress.

But these IT challenges are perhaps secondary to the larger debate over the role of IT in

society. factors such as environmental concerns, increasing corporate regulation, issues with data

security,privacy,andaccesstogetherrequireafundamentalshiftinhowwethinkabout,acquire,

use, and retire IT facilities.


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SignificantdevelopmentsaretakingplacethatchallengethetraditionalviewofIT.For

thepastfourdecades,gainingcommercialadvantagefromIThasbeenacapital-intensive

process. Building data centers; buying hardware; developing software; and employing people to

manage,operate,andmaintainthesystems—alloftheserequiresignificantandongoingcapital

investment.

Intoday’sglobaleconomy,ongoingallocationofcapitalforITisbeingquestioned.IT

departmentsareunderintensivepressureto“domorewithless”andtofreeupcapitaltodrive

much-neededbusinessinnovation.

It is clear that the asset ownership model of IT is under threat. The emergence of IT utilities,

suchassoftware-as-a-service,storageand“compute-on-demand”grids,andco-locatedmanaged

data centers requiresnewthinkingaboutIT—newthinking,newarchitectures,andnewbusiness

models.Andthatisjustthebeginning.

Ofcoursetherewillbetheskeptics,justastherewereduringtheIndustrialRevolution—

theLuddites—butthemarchofprogressisinexorable.Theadventofcommercialelectricity

generationanddistributionattheturnofthe20thcenturybroughtaboutfundamentalchange

inmanufacturingandheavyindustry,ledtothedemiseofin-companypowergenerationand

associated expertise, and ultimately changed our way of life.

ITutilitiesnowofferthepromiseforcompaniesandconsumersaliketobenefitfromIT

without requiring upfront capital expenditure. Will this lead to the demise of the IT department? In

the short term, perhaps not. But adoption of IT utilities will be driven by fiscal prudence and will

create the need for hybrid IT business models.

It is difficult to envision how this fundamental change could occur without a significant

corresponding change in the role and responsibility of the IT department.

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Business demands: seven suitors

DecreaseEfficiency

Increase

Complexity Agility Cost Rigor Facilities Results

Figure 3: Key business demands

ITtodayfacessevenkey,oftenconflictingdemandsfrombusiness.Asillustratedinfigure3,each

businessdemandarisesfromoneormorecorresponding“rootcauses”:

Business demand #1: dramatically increase the efficiency of IT operations and usage of

infrastructure resources

Root cause: Efficiency . The business motivation to invest in IT is to drive increasing levels of

business efficiency and opportunity. However, in many organizations, IT itself is not efficient. The

principlesoftaskandworkflowautomation—thetargetapplicationofITasfarasthebusiness

isconcerned—arewoefullylackinginmanyITdepartments.Tothosebusinesses,ITseemsto

be operating in the age of steam rather than in the information age, with poor levels of asset

utilizationcompoundedbymanualworkingpractice.


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Business demand #2: Dramatically decrease the impact of IT complexity

Root cause: Complexity . IT complexity has grown exponentially with the number and diversity of

connecteddevicesandassociatedsoftware.Thiscomplexityhascreated“technologycholesterol”

thatnarrowsthearteriesofbusinessprocessing—andrequiresmajor“openheartsurgery”to

eradicate. Although in the short term it will not be possible to eliminate unwanted IT diversity, a

realisticgoalistoestablishtheappropriatecontroloverthesecomplexenvironments—akinto

“organizedchaos”asopposedto“chaos.”

Business demand #3: Dramatically increase the agility and flexibility of IT systems and

operations

Root cause: Agility .Inglobalmarkets,“timeismoney,”andbusinessisconstantlystrivingto

reducecycletimes—thetimerequiredtobringanewproductorservicetomarketand/orthe

speed and ease with which customers can interact with the business. This is turn reduces the time

availableforITtodeliveranappropriatesolution—achallengeITisoftenunabletomeetdueto

skill,organization,technology,andarchitectureissues.

Business demand #4: Dramatically decrease IT capital expenses and operating expenses to

fuel innovation

Root cause: Cost control .The“hardwareischeap”mindsetassociatedwithclient/server

andnetworkedcomputinghasanastystinginthetail.Thelifecycleofsuchtechnologiesis

depressingly short (often less than three years), and fiscal policies often consider simply the cost

of procurement rather than the true lifecycle costs. Analyst studies have shown that the burden of

lifecyclecosts—includingmaintenance,upgrades,administration,support,andretirement—may

be as much as twice the cost of procurement and initial deployment. This, combined with issues

suchasresourcewastage,resultsinhigher-than-acceptablelevelsofITcost,whichinturn

stymies business and IT innovation.

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Business demand #5: Dramatically increase the level of rigor for IT planning, architecture,

operations, and management

Root cause: Rigor . In the late 1980s and 1990s, business went through a transformation

thatdroveastep-changeinoperationalefficiency.Thattransformationwasbusinessprocess

reengineering(BPR)—enabledbyadvancedITsystemsandsoftware.Businessnowlooksinto

theoperatingfabricofITandseesgrossinefficienciesattributabletoalackofmanagementand

operationalrigor.Adhocactivities,multiplehand-offsperunitofwork,inconsistentexecutionof

documentedprocess,andlackofstandardsenforcementallcontributetoalackofrigor.

Business demand #6: Dramatically decrease IT asset requirements

Root cause: Assets .Surprisingly,manyorganizationslackaccuraterecordsoftheirITassets—not

justinfrastructureandsoftware,butevencomputerroomsanddatacenters!Themantraof

“greenIT”isdrivingattentiononrationalizingITspace,andorganizationsareconsideringhow

besttoaddressthechallengeofspiralingreal-estateandpowercosts,thelimitedavailability

of new data center facilities, and the threat of impending legislation and power consumption

restrictions.

Business demand #7: Dramatically increase the results delivered/enabled by IT

Root cause: Results . In many organizations there is a wide disparity between the IT view of how

effective IT is in delivering results and the business view. IT points to the increasing scale of

business enablement activities and the availability of core systems. The business, on the other

hand,considerssystemsavailabilityasa“keepthelightson”metricwithlow“value-add”and

looksinsteadatITenablementforbusinessinnovation.Whatisapparentinmanyorganizationsis

thatthereisalackofalignmentbetweenthebusinessandITregardingtherequirementfor—and

whatisexpectedfrom—IT.


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of course, considering each of the above business demands in isolation fails to provide an

overallcontextforthechangethatisrequired,andmasksthenuancesarisingfromtheinter-

relationships. for example, consider virtualization, a technique that is often adopted to increase

levelsofserverutilizationbyallowingunusedprocessingpowertobe“shared.”

Virtualization could be seen as an effective way to boost efficiency and improve

responsiveness,butthatperspectivedoesnottakeintoaccounttheincreasedcomplexityand

cost associated with implementing and administering a virtualized infrastructure, which adversely

affectstheattainmentofthecomplexityandcostobjectives.

Clearly needed is a new model for IT that facilitates sustainable improvement against

thisnetworkofinter-relateddemands.Individualinitiativesseemdestinedtofail.Ratherthan

simplyprovidingcontextforisolatedprojects,themodelmustguidelong-term,systematic

transformationofIT.Themodelmustbesimpletograsp,butrobustenoughto“passmuster.”

It must be one that both the business and IT can agree upon.

The advent of a new IT model

Aspreviouslystated,inthe1980sand1990s—especiallyinthelatterhalfofthatperiod—a

businessrevolutiontookplace.Thatrevolutionbecameknownasbusinessprocessreengineering

(BPR).

successful businesses saw the IT enablement of business processes (as distinct from simple

taskautomation)asbothanopportunityandarisk.Consequently,itstartedtothinkdifferently

about the relationships between IT and the business.

Figure4illustratesthatthinking.Businessstrategy(verticallyontheleftsideofthefigure)

formsthebedrockforbusinessexecution(acrossthetop).Inthetopleftcornerisanareaof

darkgraycolor,representingthe“businessoperatingmodel”;successfulcompaniesadoptand

formalize such models for translating business strategy into aligned and focused execution.

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Figure 4: Outer framework for the Data Center Transformation Model

Correspondingly, IT strategy runs horizontally across the bottom, providing the basis for

IT execution (vertically, on the right). In the bottom right corner is an area of strong blue color

denotingthe“ITbusinessmodel.”Thisisanareaofincreasingconcernandinspectionformany

organizations, as they realize the wide variety of options now available for acquiring IT capability.

Interestingly,thisframeworkalsoillustratestwomainareasofconcern,denotedbythe

lackofcolor.Inthebottomlefthandcorner,manycompanieshave—andcontinuetostruggle

with—theissueofcoherencebetweenbusinessandITstrategy.Thischallengeisnotanewone.It

isoftenreferredtoasthe“business/ITalignmentgap.”

much has been said and written about this alignment gap. It has been a concern of business

andITexecutivesformorethan20yearsandhasbeenthesubjectofmuchacademicresearch

and debate.

In the top right corner is another area of concern and tension in many organizations. This

relates to the effectiveness of IT systems to support efficient business execution. Here we

frequently encounter issues such as quality of service, time to deliver, and cost of IT. This is a

front-lineissuethataffectstheefficiencyofbusinessexecution—andcanhaveasignificant

bearing on business results.

Business strategy

IT execution

Business execution

IT strategy


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Successfulcompanieshavedevelopedframeworkssimilartothistofacilitatealignment

betweenbusinessandIT.Suchframeworkshavebeenusedtoreducethefrictionandincrease

theintensityofcollaborationbetweenthebusinessandIT.Notedexamplesincludeglobal“brand

name”corporationsDell,INGDirect,DowChemical,ToyotaMotors,MetLife,UPS,andDelta,

among others.

ThisframeworkfortheSymantecDataCenterTransformationModelexposestheprimary

purpose of IT. Today, IT is the vehicle that enables business strategy to be translated into

execution. This positioning of IT introduces the notion that IT forms a supply chain to effect

business enablement.

Business strategy

IT execution

Business execution

IT strategy

The IT supply chain

Figure 5: Position of the IT supply chain

This concept of IT as a supply chain provides a powerful metaphor for examining core entities

andtheirrelationships.Figure5clearlyillustratesthesignificanceofthisthinking:theefficiency

of the IT supply chain has a direct impact on business execution and results.

many businesses today are convinced that IT is simply not efficient in enabling required

businessexecution.WeoftenencounterC-levelexecutiveswhoexpressconcernssuchasthese:

• ITcostsaretoohigh(intermsofbothcapitalandoperatingexpenses).

• ITsystemsaretoocomplexandappeardifficulttomanageduetolackofprocessrigor.

The efficiency of the IT supply chain has a direct impact on business execution and results.

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• ITisnotgoodatmakingchanges,oftenproducingunintendedresultsthathaveanegative

impact on the business.

• ITtakes“toolong”tocompleteitstasks(e.g.,installingnewsystemsorbuildingnew

applications).

• BothoperationalanddevelopmentalITworkareinconsistentinquality,andeventasksthatare

apparentlysimplearesubjecttomultiplehand-offs.

These challenges may seem hauntingly familiar to business executives. Why? Because they

paralleltheissuesthatbusinessfacedinthe‘80sand‘90s—issuesthatwereaddressedthrough

the transformation process we now identify as business process reengineering (BPR).

Paradoxically,IT—the“enablingforce”forthisbusinessrevolution—wasitselfnevermadea

targetdomainforBPR—andso,today,itstillexhibitsthoseall-to-familiarcharacteristics.

ThisthinkingprovidesthecontextfortheSymantecDataCenterTransformationModel—an

adaptation of an approach that has been proven to deliver sustainable business benefit, but now

focused on IT itself.

The Symantec Data Center Transformation Model

Likeallsupplychains,theSymantecDataCenterTransformationModelisderivedfroman

attempt to understand the process of how requirements (or demand) are met or satisfied (supply).

In a supply chain diagram, demand and supply are shown as directional flows between the core

entities of the supply chain.

In the symantec data Center Transformation model, IT supply chain demand comes from

therequirementstosupportbusinessexecution—requirementswethinkofasrequestsfor

“applications”and/orservices.Infigure6,thisdemandisindicatedbyvertical,downward-facing

blue arrows.

Ofcourse,applicationsandservicesdonotexistinavacuum—theyarelogicalelements

thatrelyonsupportinginfrastructure:servers,storagesystems,networks,andassociated

infrastructuresoftware.Infigure6,thisdependencyisindicatedbyadownward-facingcurved

blue arrow that connects applications with infrastructure.

However, infrastructure components are physical. They must be housed somewhere, need

powertooperate,andaresensitivetotemperatureandhumidity—andthereforerequirea

sophisticated,climate-controlledenvironment.Thisdependencyisindicatedbyadownward-

facing curved blue arrow connecting infrastructure with facilities.

Paradoxically,IT—the“enablingforce”forthisbusinessrevolution—wasitself never made a target domainforBPR—andso,today, it still exhibits those all-to-familiarcharacteristics.


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Figure 6: Key IT supply chain entities

now the purpose of the IT supply chain is clearly evident. IT is responsible for providing

the appropriate data center facilities to support the current and future infrastructure needed to

support the applications that enable business execution. These dependencies are indicated by the

blue“supply”arrowsthatmirrorthecorrespondinggray“demand”arrows.

Importantly, although figure 6 introduces the core IT supply chain entities (applications,

infrastructure, and facilities), it also exposes their relationships and dependencies in a way that

bridgestraditionalITorganizationalstructuresandpromotescross-functionalplanningand

collaboration.

Valuable insights can be gained by viewing the efficient operation of the IT supply chain as

ametaphor—andusingthatmetaphortoreexamineIToperationswithinthedatacenter.

Viewing IT itself as a supply chain invites a further extension: that of comparing IT

orchestrationwithacceptedsupplychain“bestpractice.”Today,thekeycharacteristicsof

manufacturingbestpracticearetermed“leanmanufacturing”—or“Kaizen,”whichisJapanese

for“changeforthebetter.”Kaizencallsonmanufacturerstooptimizethesupplychain,notonly

attheindividualcomponentandactivitylevel,butalsoholisticallyacrosstheentireend-to-end

process.

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Business strategy

IT execution

Business execution

IT strategy

Facilities

Applications

Demand Supply

Infrastructure

IT service assurance

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ItisindeedprofitabletoprojectthatthinkingontoourDataCenterTransformationModel.

Clearly there is little point in improving application performance by tuning execution to require

lessresourceperunitofwork,ifinfrastructureresourcesareregularlyover-provisionedonthe

groundsthat“hardwareischeap.”

Conversely, there is little point in spending effort to improve infrastructure resource

utilizationiftheeffectsofpoorlyarchitectedapplicationsorinefficientrun-timecodeareignored.

Core to the notion of efficient manufacturing is achieving the balance between supply and

demandwhileminimizingthestockholding,movement,andtimerequiredtoproducethefinished

goods or service with the desired quality.

IntheSymantecDataCenterTransformationModel,theend-to-endoptimizationofthe

IT supply chain best practice is achieved through IT service assurance. IT service assurance

represents“bestpractice”intermsofITmanagementandoperations—withtheobjectiveof

optimizingefficiencyandeffectivenessacrosstheentireend-to-endsupplychainwhileachieving

the desired quality of service.

Within the boundaries of IT service assurance are additional elements paralleling techniques

thathaveprovenintegraltothesuccessfulconductionofbusinessprocessre-engineering

programs—techniquessuchasdemandmanagementandcapacityplanning,qualitymanagement,

and IT service management (maturation of IT processes).

Manufacturing(asdistinctfromsupplychain)bestpracticefocusesafirm’senergieson

activities that are core to its brand or the uniqueness of its products, and locates partners

(suppliers)toundertakeallotheractivities.

In the symantec data Center Transformation model, IT strategy is also concerned with the

impactontheITsupplychainofsourcingdecisionsthatseektoinvolveexternalagents(third

partiesand/orfacilities)intheprovisionofcoresupplychainentities(applications,infrastructure,

andfacilities)and/orassociatedservices.

In summary, the symantec data Center Transformation model provides a compelling and

comprehensiveframeworkfordetermininghowbesttoconfigureandorchestrateITtooptimize

business enablement and results sustainably.


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Using the Data Center Transformation Model to optimize your IT supply chain

Thelitmustestforanymodelorframeworkisthedegreetowhichitfacilitatesreal-world

problem-solving.TheSymantecDataCenterTransformationModelguidesexaminationofIT

challenges through the core IT supply chain entities:

• Applications

– Quality of service, service management

– Application lifecycle management (sourcing, provisioning, production, retiring)

– Application portfolio management (dependencies, rationalization, renewal)

– Application architecture (enterprise application integration, soA)

• Infrastructure

– Asset management, utilization levels

– standardization, consolidation, shared infrastructure

– Administrative and operational overhead, configuration and change management

–Endofservicelife,leveragingnext-generationtechnology.

• Facilities

–Data-centerstrategy,space,powerandcooling

–Data-centerlocations,consolidation/relocation

–Environmentalissues,carbonfootprint,going“green”

– IT management and operations best practice.

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Takingtheend-to-endITsupplychain(ratherthanjusttheindividualsupply-chainentities)

into account can also prove insightful:

• Service assurance

– Business continuity, disaster recovery, high availability

–ITrisk,security,compliance

– demand management and capacity planning

– Cost and value of IT, IT budgeting and financial management.

such examination within each element may then be extended by using the model to guide

furtherconsideration—forexample,tolook“upanddown”thesupplychain.Assessmentofthe

effect of coupling across and between different supply chain entities can prove extremely valuable

when planning a strategic program to deliver sustainable improvement in the fabric or the

orchestration of IT.

• Coupling

– Impact of application portfolio and application architecture on infrastructure

– Impact of application sourcing on infrastructure, and infrastructure sourcing on facilities

– Impact on infrastructure rationalization (e.g., virtualization) on business strategy

–Balancingdemandandsupplyacrossthesupplychain,andimprovingend-to-endsupply

chain efficiency

–Leveragingthird-partyprovidersforapplications,infrastructure,andfacilities

Otherapproachesthatmayberelevanttotheinterconnectionbetweentheentities—or

impacttheouterareasoftheframework—arenotexplicitlymentionedabove.Forexample,

the role of enterprise architecture is essential when considering the interconnection between

applications and infrastructure. similarly, the impact of, for example, an infrastructure

virtualization initiative extends far beyond considerations of the choice of technology.


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Figure 7: Extended impact areas

The data Center Transformation model facilitates awareness of these extended

considerationsbyfollowingthesupply-chainarrowsandthe“crosshairs”(showninorangeinthe

diagramabove)andaskingthequestion“whatisthelikelyimpactoftheproposedactionon….”

Takevirtualization,forexample—apopularinitiativetoday,slatedtoincreaseserver

utilization and facilitate consolidation. Virtualization would be considered to be an infrastructure

play.ButtheITsupplychainshowsalinkagebetweeninfrastructureandapplications.

Thatlinkagesuggestsevaluationoftheeffectofvirtualizationontheapplicationestate:

• Howmanyoftheapplicationswouldbesuitablecandidatesforrunninginavirtualized

environment?

• Howready(fromatechnicalandsupportperspective)arethoseapplicationsformigrationtoa

virtualized environment?

• Istheassociatedapplicationeco-systemcompletelymappedandunderstood(i.e.,whateffect

would migrating those applications have on others that might be dependent on them)?

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Business strategy

IT execution

Business execution

IT strategy

Facilities

Applications

Demand Supply

Infrastructure

IT service assurance

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Similarly,theDataCenterTransformationModelshowsalinkagebetweenInfrastructure

andFacilities,andthislinkageinformsadifferentperspective:

• Aresufficientdatacenterfacilitiesavailabletocreateavirtualizedenvironmentforservers?

• Ifconsolidatingtoavoidserversprawl,whatistheimpactofintroducingnew(andtypically

more powerful) servers on power and cooling?

• Howwouldsuchachangeimpactdisasterrecoveryarchitecturesandplans?

Theseandotherassociatedconsiderationsareclearlyevidentfromthinkingintermsof

theITsupplychain—andyet,fromexperience,inmanyvirtualizationprojectstheyseemsadly

lacking.

As noted above, the model vitally facilitates awareness of the potential extended impact of

suchaprojectandinvitesfurtherconsideration.Byplacingcrosshairsonthemodel,wegaina

visualclueastothetypesofquestionsthatshouldbeasked.Forexample:

• Impact on business execution

–Whatistheriskassociatedwithmigratingapplications,andisthebusinessfullyawareand

acceptingofthatrisk?

– What are the business benefits of migrating the applications to a virtualized environment?

– How do the lines of business feel about relinquishing control over their assets? (After all,

in many organizations, these assets were purchased on capital budgets owned by the

business.)

• Impact on business strategy

–IsthebusinesswillingtomakenecessarychangestoenableITtoeffectivelyaggregate

demand and so deliver on the expected benefits of a shared service environment?

– What changes in business strategy and IT governance are required to perpetuate the

virtualized environment?

– How will new budgetary procedures be introduced to wrest capital authority for IT spending

fromthelinesofbusiness—andwhatistheriskofmakingsuchachange?


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• Impact on IT execution

– What changes in IT strategy are required to perpetuate or sustain the virtualized

environment?

– Are the appropriate processes in place for demand management and collaborative capacity

planning?

– Have other alternatives (to virtualization) been evaluated, and why has virtualization been

chosen as the strategic direction?

The power of the symantec data Center Transformation model can clearly be seen from

figure 7. The model prompts extended dialog within IT and between IT and the business, fostering

greatercommunicationandcollaborationforkeychangesinthefabricofIT.

Key benefits and outcomes

The symantec data Center Transformation model exposes the significance of considering

theimpactacrosstheentireITsupplychainofmakingachangeinoneofthecoreentities—

applications, infrastructure, and facilities.

As this white paper has explained and illustrated, such changes are not confined to the core

entityinwhichtheyoccur—theimpactislikelytobefeltonadjacententitiesandareassituated

ontheouterframeworkofthemodel.

Adopting a more holistic approach is considered essential to successfully driving the type

oflong-term,sustainableimprovementthatisbeingdemandedbybusiness,anditenablesITto

address the seven business demands described earlier in this document.

When applied with diligence and rigor, the data Center Transformation model has been

showntofacilitatesignificantprogressagainstanumberofkeycharacteristicsofITsupply-chain

optimization and maturity, as shown in figure 8.

When applied with diligence and rigor, the data Center Transformation model has been shown to facilitate significant progress against a numberofkeycharacteristicsofITsupply-chainoptimization and maturity.

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25


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Figure 8: Transformation outcomes

Take,forexample,poorutilizationlevelsandhighpowerdemand.Thesecharacteristicsare

commonplaceformanyorganizationstoday.Environmentalpressureto“gogreen”isincreasing,

asisthelikelihoodofregulationorlegislationtoexertformalcontrolsoverthedatacenter’s

power efficiency.

The model aids in understanding the causal effects of excessive power consumption. Rather

than focus solely on the energy efficiency of infrastructure components, the model invites us to

explorethedemandoninfrastructure—whichisdrivenbyapplications.

InassessmentsperformedbySymantec,wehaveencounteredinfrastructurethatislive—

poweredon,andthereforeconsumingelectricityandgeneratingheatload—andyetissupporting

anapplicationthatisnolongerinuse.Insuchsituations,thelackofrigorousapplicationportfolio

management,ratherthanthecharacteristicsofthedeviceitself,isthemajorcontributingfactor

to excessive power consumption.

Takingabroadviewofassetutilizationfacilitatesthedevelopmentofoptimizationpolicies

thatarenotlimitedtoa“ripandreplace”approachtoexistinghardware—andthatcontributetoa

longer-termsustainabilityprogram.

Project-basedITacquisitionisanothercommonissueinmanyorganizationswherethelines

ofbusinesshavecapitalbudgetauthority.Thisisamajorcontributoryfactortoinfrastructure

sprawland“feudal”thinkingaboutITinfrastructureassets(“That’smyserver…”).

Pre-transformation Post-transformation

Non-standard, isolated systems

Disparate tools and methods

Poor utilization levels, high power demand

Weak asset / configuration control

Manual ad-hoc processes, “firefighting”

Informal SLAs

Project-based IT acquisition

Infrastructure-centric organization

Weak governance and alignment

High TCO, low perceived value

Latency in meeting business demand

Standards-based, certified environments

Common set of tools and methods

Optimized utilization and power consumption

Robust asset and configuration management

Workflow, automated processes, “managed”

Business SLAs and standard reports

Full demand management and capacity planning

Service-centric, value-based

Strong governance, good alignment

Good financial control, lowered TCO

Effective IT � business partnership


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The model invites us to consider the relationship between infrastructure and both business

andITstrategybyposingthequestion:“Whatwouldbetheimpactofcreatingashared

infrastructure?”

InarecentSymantecproject,aglobalnot-for-profitorganizationwasabletotransformavery

“siloed”ITenvironmentintoanintegratedsuiteofITutilityservices.Thisentailedreengineering

the IT acquisition and budget processes (as well as the IT infrastructure) to facilitate the

introductionofsharedservicesdeliveredagainstaconsumption-basedtariff.

Usingtheprinciplesdescribedinthiswhitepaper,theITorganizationwasable,forthefirst

time, to aggregate demand for infrastructure assets through the provisioning of utility services,

with a consequent increase in asset efficiency (utilization) and improvement in IT value, visibility,

and awareness.

Themodelwasalsopivotaltoaprojectforamajormediaorganizationthatsuccessfully

relocatedanentiredatacenterduring“businessasusual,”withoutanyunplanneddowntime.

ThinkingintermsofanITsupplychainextendedtheprojectteams’awarenessofthe

impactoffacilitiesoninfrastructure—and,throughthat,totheapplications.Asaresultofthis

awareness,eachcriticalapplicationwasprofiledtodetermineitsunique“eco-system,”whichwas

analyzedintermsofriskandreadinesstomigrate.

Adoptinganapplication-centricapproachtothemigrationassuredtheteamofthenecessary

awarenessof—andbuy-infrom—thelinesofbusiness,eachofwhichwasrepresentedonthe

projectboard.

note that in each of the above examples, the effect of adopting the data Center

Transformation model was to significantly increase communication, both within IT and between IT

and the business.

Adirectconsequenceofthiseffectwasheightenedawarenessofthecomplexitiesandinter-

relationships at play. This resulted in a more substantive and open dialog than might otherwise

have occurred. The consequent outcomes indicated improvements across a number of the

characteristics represented in figure 8.

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Summary and call to action

The symantec data Center Transformation model is adapted from business process reengineering

andsupply-chainprinciplesthathaveprovedsuccessfulincreatingmodernbusiness

architectures capable of supporting global execution. It provides valuable context and guidance

forevaluatingandthinkingholisticallyabouthowtoachievesustainableimprovementinthe

effectiveness of IT.

The data Center Transformation model has been created and validated from an informed

perspectiveoftheextremecomplexitiesoftoday’scapital-intensiveITenvironments,anditis

bothpragmaticandtechnology-agnostic.Yetatthesametime,itcanassistindirectingthinking

about the exploitation of future advances in technology and developments in the supply and

procurement of technology and associated services.

despite the ambiguity that arises from the diversity of modern IT systems and strategies, it

is clear to the author that the future role of the IT department within an enterprise will be very

different from that which is traditionally expected and accepted.

RatherthancontinuingtoletITfunctionasa“custodianoftechnology,”theevolutionofIT

willrequireadaptiveanddifferentiatedthinkingcoupledwithboldandconsistentexecutionin

ordertoleveragenewITacquisitionmethodsanddriveastep-changeinITcost/value.

Successfullyundertakingsuchactivitieswillrequireintensecollaboration,bothwithinand

acrosstheITorganizationandwiththestakeholdersitserves.Suchcollaborationwillonlybe

possiblethroughcollectiveanddirectedthinking—andtheSymantecDataCenterTransformation

Modelprovidesavaluableframeworkforsuchthinking.

for information about how symantec is helping enterprises address the challenges of data

center transformation, and the solutions that are available, please visit www.symantec.com.

for further information or a discussion about the data Center Transformation model or the

views expressed in this white paper, please contact the author by email:

[email protected]

for specific country offices and

contact numbers, please visit

our Web site. for product

informationintheU.S.,call

toll-free1(800)7456054.

symantec Corporation

World Headquarters

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www.symantec.com

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WHITE P APER: d A T A CE n TER TRA nsfo R m A TI on IT As