K1 - We Are the Scalable Enterprise (Sheskey) · we are the scalable enterprise susan sheskey vice president & cio this presentation summary is for informational purposes only and

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Dell IT:We Are the

Scalable Enterprise

Susan SheskeyVice President & CIO

THIS PRESENTATION SUMMARY IS FOR INFORMATIONAL PURPOSES ONLY AND MAY CONTAIN TYPOGRAPHICAL ERRORS AND TECHNICAL INACCURACIES. STATEMENTS ARE THE OPINIONS OF THE PRESENTER(S) AND DO NOT NECESSARILY REFLECT THE VIEWS OF DELL. THE CONTENT IS PROVIDED AS IS, WITHOUT EXPRESS OR IMPLIED WARRANTIES OF ANY KIND.

© 2006 Dell Inc. All rights reserved.

Trademarks used in this text: Dell and the DELL logo are trademarks of Dell Inc. Other trademarks and trade names may be used in this document to refer to either the entities claiming the marks and names or their products. Dell Inc. disclaims any proprietary interest in trademarks and trade names other than its own.

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. . . We Mean It.The Scalable Enterprisestrategy enables every aspect of our business

Dell’s $56 billion business runs 95% “Dell on Dell” by any metric:

• Processing power• Storage• People• Budget

And we’d do it the same way even if we weren’t Dell.

When We Say Dell is “Built On Dell” . . .

Just Like Other CompaniesYet Entirely Unique!

Dell is in the data centers of 8 out of the top 10Fortune companies in the U.S.

Dell is in the data centers of 8 out of the top 10Fortune companies in the U.S.

Growth: First 20 Years

Large-Scale Services Provider

State of New York

Dell.com exceeds theInternet sales revenue of . . .

. . . combined!Direct choice of the consumer, versus:

Manufacturing / Supply Chain

Ship 100,000+systemsper day

Ship 100,000+systemsper day

#1

#2

#3

#4

#5

Market LeadershipHarris Poll: Best Brands 2006

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Where We Are Today

Contact Center (41)Manufacturing (9) Fulfillment (6)

Revenue of $56.6B last four quarters

#25 on the Fortune 500

Fortune “Most Admired” Top 10 –1999, 2000, 2001, 2003, 2004, 2006 and #1 in 2005

CIO 100 – 2000, 2002, 2003, 2004, 2006

InformationWeek 500 Top 100

Where We Are Today

Revenue of $56.6B last four quarters

#25 on the Fortune 500

Fortune “Most Admired” Top 10 –1999, 2000, 2001, 2003, 2004, 2006 and #1 in 2005

CIO 100 – 2000, 2002, 2003, 2004, 2005

InformationWeek 500 Top 100

Dell IT is in more than 34 countries around the globe.

Americas2,080

Brazil403

EMEA766

India1,078

China151

APJ622

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Managing a Global Environment

Sydney

Melbourne

Singapore

Penang

Bangkok

TaipeiXiamen

Hong Kong

Guangzhou

Chengdu

Kawasaki

Beijing

Seoul

Bogota

SantiagoBuenos Aires

Puerto Alegre

Mexico City

Reno

Austin

TorontoTwin Falls

Nashville

LimerickCherrywood

Bracknell

RomaBilbao

Copenhagen

Stockholm

HelsinkiOslo

Asse Zelik

Vienna

Geneva

Halle

Paris

Montpellier

Amsterdam

Prague

Riyadh

Warsaw

Johannesburg

Tel Aviv

Dubai

Panama City

Brazil SDC

Hyderabad

Shenzhen

BT's MPLS Network

Lisbon

Moscow

Bratislava

Athens

Casablanca

BarcelonaMadrid

MilanRoseburg

Waco

Washington, DC Gov. Rel.

Dalian

Wambishi

MCI's MPLS Network

2 DS3's

OKCDS3 SBC

DS3 TWTC

20 Mb ATM AT&T20 Mb ATM MCI

1 x DS3 (MCI)2 x T1 (MCI, Sprint)

DS3 SprintDS3 MCI

EdmontonDS3 SprintDS3 AT&T

Shanghai

512kb PVC

DS3

4 mb/s2 mb/s4 mb/s

2 mb/s

Hangzhou16 mb/s

4 mb/s

2 mb/s

Nanjing

8 mb/s

3xT1's

2 mb/s

2 mb/s

2 mb/s

2 mb/s

512 kb/s

6 Mb/s

2 mb/s

1.5 mb/s

1.5 mb/s

2 mb/s

1 mb/s

Bangalore Bangalore DHS Sales

Kuala Lumpur

DS3 CT

DS3 JT

DS3 TM

256 kb/s

128kb PVC

DS3 AT&TDS3 MCI

1mb VPN

1Mb VPN

2xOC31 DS3

WestchesterOC3 AT&TOC3 TWTC

2 mb/sVoFR

4 Mb VPNFor EMC

San Salvador

DS3 MCIDS3 GC

Mohali

Singapore SDC

Jakarta

Ottawa

1Mb VPN

8Mb VPN

1Mb

1 mb/s

DS3 BT

Glasgow

Frankfurt

Winston-Salem

OC3 SBCOC3 TWTC

Hardware ~ 100,000+ client systems~ 15,000+ Dell servers

Networks107 Dell global WAN sites39 locations307 WAN links420 metro Dell-managed fiber paths855 wireless access points177 dedicated extranet partner links

Total SAN Storage5.8+ PetabytesSecond-largest storage areanetwork in US, Top 5 globally.*

* Source: Brocade Communications Systems Inc.

IT By the Numbers: We Are the Scalable Enterprise

Data and Networks:– What is the total size of the Dell Data Warehouse?

320 Terabytes on 84 nodes

– How many emails do our servers handle each day?1.8 million outbound40 million inbound (94% of these are spam!)

– How many voice calls do we handle each month?16.5 million inbound toll-free calls3 million outbound calls

– How many potential network intrusion attempts each month?400 million (Our firewalls reject 4,000 suspicious data packets every second!)

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Dell.com:– How many Dell.com page requests last quarter?

2.86 billion

– How many systems are configured each week on Dell.com?~1 million — and 1 million per day in peak holiday season

– How many visits to Dell.com last quarter?410 million

– How many unique visitors to Dell.com last quarter?127 million

– What is the highest number of pages ever requested in one minute?64,584 (on 8/25/04 during a promo – and we handle all that traffic on only 28 Dell PE6650 servers!)


Business Complexity:– How many Contact Centers, Manufacturing, and Distribution sites

do we support?41 contact centers, 15 manufacturing/distribution

– How many changes in the environment do we handle each year?About 15,000

– In how many countries, languages and currencies does Dell do business online?81 countries, 24 languages, and 26 currencies

– And dealing with Compliance, Security, Privacy, Governance, Portfolio . . .

Tremendous complexity. So how do we do it? Scale Out is the key.

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Old Method: Scale UpGrow into your enterprise infrastructure by deploying large, expensive, proprietary systems up front—but as you add capacity later, you are buying three-or four-year-old technology! W

orkl

oad

Time

Dell Method: Scale OutGrow your enterprise infrastructure over time by adding industry-standard building blocks as needed. Always the latest and fastest technology!

Wor

kloa

d

Time

High Utilization per ServerThroughout Lifecycle

Utilization Low,

Increasing Over Time

Scale Up or Scale Out?

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FISCAL QUARTERS

VISI

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FY02-FY03 Growth: 44% FY03-FY04 Growth: 69% FY04-FY05 Growth: 56% FY05-FY06 Growth: 43%

Scale Out: An ExampleHistorical Dell.com Traffic Trends (Global)

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Transforming the EnterpriseA Technology Vision Is the Key!

Constraining your IT spend will only keep you locked in to proprietary technologies

Instead, create a paradigm based on Total Cost of Ownership that leverages standards for cost efficiency…

Then use the savings to reinvest!

Technology is the high tide that will raise the entire ocean of businesses and economies to levels we have yet to imagine!

“Building Your Way Out”Developing a Plan

Technology

Cap

abili

ty

Legacy

Standards

Rotate one project at a time into the standards-based quadrant . . .

StandardsStandardsStandards

LegacyLegacyLegacyLegacy

Standards

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“Building Your Way Out”How We’re Doing It at Dell

Phase 1Phase 1 Americas Sales and MarketingSystems Environment



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Americas Sales and MarketingSystems Environment


And we are doing all this while continuing to:

Drive globalizationAdd features and functionsDeliver the greatest benefit at the lowest cost for Dell

Phase 4Phase 4

The Early Adopters . . .

Dell IT was among the earliestadopters of:

Pervasive 802.11 wireless (2000)Microsoft .NET architecture and Web services (2001)Production use of Linux (2001)Teradata on Dell/Intel (2002)Oracle 10g RAC (2004)Oracle 11i on Dell/Intel (2005)Windows Vista (2006)

So what’s next on the horizon?

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What’s on the Horizon . . .

Grid computing

Virtualization

Data Centerof the Future

Grid Case Study: EMEA Order Management SystemBEFORE: Proprietary Architecture

Volume:Daily orders: 25,000Up to 150k order lines/hour

Architecture:Sun™ E1000064 400MHz CPUsSolaris 8 OSOracle 8i & Oracle 11.0.3EMC Symmetrix Storage

Would not handle planned growthHigh licensing & maintenance costsLimited high-availability and DR Ongoing performance issuesExpensive to scale up

Front-End Order Management: Back-Office Financials:Volume:

5,700 database sessionsDaily Orders: 22,000

Architecture:Sun™ E1000052 400MHz CPUs x 2Solaris 8 OSOracle 9i RAC (2 node)EMC Symmetrix Storage

The Issues:

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Grid Case Study: EMEA Order Management SystemAFTER: Oracle-on-Dell Grid Solution

Results:Daily orders: 50,000(100% increase)Up to 400K order lines/hour (150% increase)

Architecture:Dell PE66506 nodes (24 2.8 GHz CPU)plus 6-node failover w/ SRDFRed Hat Linux 3.0Oracle 10g RACOracle 11i1 TB DMX 2000 storage

Front-End Order Management: Back-Office Financials:Results:

12,000 database sessions (120% increase)Daily orders: 50,000(120% faster)Search time 80% faster

ArchitectureDell PE66506 nodes (24 2.8 GHz CPU)plus 6-node failover w/ SRDFRed Hat Linux 3.0Oracle 10g RAC1 TB DMX 2000 storage

Five-fold improvement in the overall performance of the system

1 hour order turnaround cycle

All invoicing completes in less than 1 hour

Real-time fault tolerance helps ensure business continuity

Automated management greatly reduces human error

Technology can scale out to meet future requirements

Moved from 168 CPUs in 3 Sun servers to 24 Dell PowerEdge 4Moved from 168 CPUs in 3 Sun servers to 24 Dell PowerEdge 4--waysways

12 month estimated ROI = $2.83 million in savings12 month estimated ROI = $2.83 million in savings

Source: Source: Oracle sponsored ROI Study: Oracle sponsored ROI Study: Dell Moves European Sales Operations to Oracle Enterprise Grid oDell Moves European Sales Operations to Oracle Enterprise Grid on Dell n Dell SystemsSystems. Published by Mainstay Partners, Dec 2004. Published by Mainstay Partners, Dec 2004..

Business Results of Migration to Oracle-on-Dell

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Grid computing

Virtualization

Data Centerof the Future

Physical hardware configuration:PE6650 class server4 processors16GB RAM600GB internal disk space SAN space per VM farm: 10TB

VMware – ESX 2.5.x is deployed in Americas and EMEA to create a virtual infrastructure that is standards based, easily rebuilt and provides effective use of physical resources Virtual machines are deployed for Windows OS development only: Web servers, Web and app development (WebLogic, Java, .Net)VMware servers follow the Dell standard server provisioning process into the infrastructure in order to produce secure/standard builds; are the first servers to be patched using SMS2003

Virtualization at Dell

Virtual hardware configuration:2 processors512MB memory16GB hard drive (virtualized on SAN)

1 physical host = 16 virtual hosts

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Automatic load balancing between physical hosts– Balance distribution of VM’s based on

the resources they use most intensively (CPU, disk, memory, network)

High Availability – “Self Healing”– Will automatically re-spawn VM’s that

were present on a failed host onto a different functioning host

Systems lifecycle management– Integrate Virtual Center server

information with the asset management system

Develop standard Linux build– Virtual machine sized to match the

typical Linux development environment

VMware Roadmap: What’s Next?9 – 12 Month View

Fewer resources to support the infrastructure– 16 times less rack space is needed in labs in

datacenters– Reduced power/cooling requirements– Less network equipment – Fewer personnel to support physical servers

Improved service level agreement (SLA)– Shorter server provisioning time (20 minutes!)– Quick Wipe and Load capability (environment reset)

is ideal for development purposes– Simpler decommission process allows for faster re-

provisioning of resources to other projects

Bottom line– Server consolidation with significant savings– Accurate hardware deployment – Faster server deployment

Benefits of Virtualization

3 VMware farms to date20 physical servers per farm10TB of SAN per farm320 virtual servers per farm750 total virtual servers to date

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Grid computing

Virtualization

Data Centerof the FutureData Centerof the Future

What Does the Data Center of the Future Look Like?

Two main characteristics:

Simplified Operations– Automated deployment– Dynamic resource allocation– Self-monitoring– Self-managing– Self-healing

Improved Utilization– Virtualization– Consolidation– Optimization

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The Scalable Enterprise of the Future

StandardizationConsolidation

Automation

Reduced CostReduced RiskManaged Growth

Advantages Drives

The Power of Standards

FlexibilityAdaptabilityVelocity

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FY07 annualized benefits are ~2X IT cost

Development 32% 47% 59% 64% 76%Headcount:

The Benefit to the Business

AnnualizedBenefits

IT Spend as% of Revenue

1.91%1.83%

1.61%

1.47%1.42%

$1.4B

$0.35B

$0.47B

$0.8B

$1.1B

$1.3B

0

200

400

600

800

1,000

1,200

1,400

1,600

FY01 FY02 FY03 FY04 FY05 FY06

I/T S

pend

/ A

nnua

lized

Ben

efits

1.39%

Where Are We Headed?

Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!


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Chief Information Officer




Chief Innovation Officer

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Questions & Answers

Documents

K1 - We Are the Scalable Enterprise (Sheskey) · we are the scalable enterprise susan sheskey vice president & cio this presentation summary is for informational purposes only and