Mark Sunday, SVP & CIOmedia.govtech.net/.../2011/...MarkSundayOracle.pdf · CLOUD SERVICES Supporting over 5.5M users over 3.7K environments with On Demand • Oracle technology stacked

Mark Sunday, SVP & CIO

Oracle

2011: CIO Perspective

Scale

• US$27 billion revenue in FY10

• 370,000 customers in 145 countries

• 106,000 employees

Innovation & Investment

• 29,000 developers & engineers

• 16,000 customer support specialists

• 20,000 consulting experts

• 1 million students supported

• 870 independent Oracle user groups, with 355,000 members

4 Major It Functions

• Traditional, Development, Cloud Services & Oracle University

Oracle Corporation

Copyright ©2011, Oracle. All rights reserved.

– Applications– Middleware– Database– Operating System– Virtual Machine– Servers– Storage

Challenges of Today‟s IT Systems

Oracle‟s Strategy

• Deliver Complete, Open, Integrated Business Solutions to customers for their industry

• Provide flexibility and choice by integrating Oracle Software on an Open Standards Based Architecture

• Transform the data center integrated Systems and Hardware that provide breakthrough performance and unprecedented lower cost of ownership

• Enable customers to deploy Cloud Computingstrategies through a full-range of innovative technologies


Oracle‟s Strategy

• Innovation delivered faster

• Better performance, reliability, security

• Shorter deployment times

• Easier to manage and upgrade

• Lower cost of ownership

• Reduced change management risk

• One-stop support

Complete, Open, Integrated


ORACLE UNIVERSITY

Supporting 352K students resulting in 41K

classes annually in 24 languages

• Operation, administration & management of computing resources supporting delivery of curriculum & classroom content

• Administration & management of computing architecture & standards

• Business continuity operation & planning

CLOUD SERVICES

Supporting over 5.5M users over 3.7K

environments with On Demand

• Oracle technology stacked combine with Oracle‟s enterprise cloud delivery

• Flexible deployment model & integration for all cloud and on premise software & systems

• Complete services, from transition and planning through run & maintain

Information Technology – 4 Major Functions

TRADITIONAL DEVELOPMENT

Supporting 106K+ internal users & 1.2M+

external users in 145 countries

Supporting 29K developers building over 3K

products globally

• Global voice & network infrastructure

• Global data center operations

• Oracle employee support

• Computing device management & support

• Information Technology Risk & Compliance

• Operation, administration & management of Production business systems

• Operation of Development-managed compute spaces

• Management & support of specialized development computing devices


Oracle IT Philosophy

Simplify

Standardize

Centralize

Automate

2

3

4

1

Best WayOld Way

One WayMany Ways

Few LocationsMany Locations

AutomatedManual


Oracle‟s TransformationSimplify, Standardize, Centralize & Automate

Organization

Shared Services

Processes

Infrastructure

Data Center

Data

Applications

Self Service


Shared Services – Evolution & Advantages

Multiple … Locations

Multiple …Organizations

Cost Reduction

Increased Productivity

Increased Efficiencies

Improved Control & Risk

Shared Services

Rationalize Systems

Move to one System

Move to one Database

Define Processes

Common Policies

Common Processes

One Location

Consolidate within Region

Consolidate within Country

One Organization per Process

Separate from Business Units

Grow the Business While Controlling Costs | Increase Customer

Satisfaction by Improving Service Levels | Increase Levels of Control

Source: Deloitte Research “The Future of Shared Services” 2003

Multiple …Systems

Multiple …Processes

Case

Study

Oracle Financial Shared Service CentersSupports all 4 Divisions, 62 Countries, 19 Languages

AMERICAS SSC‟s

Rocklin, CA

San Jose, CR

11 Countries

INDIA SSC (GFIC*)

Bangalore, IN

19 Countries

Global Functions

EMEA SSC‟s

Dublin, IE

Bucharest, RO

47 Countries

• Cust/Install Base Data

• Version Update Orders

• Tactical FP&A

• Order Entry

• AR / Cash Apps

• Expense Admin

• AP Invoices

• Purchasing

• Fixed Assets

• Sales Comp Admin

• Collections

• Tactical Controllers

• Financial Control

& Reporting

• Revenue

Recognition

• Contracts

• Credit & Collections

• Expense Admin

• Sales Comp

• License Mgmt

Services

*Global Financial Information Center

SERVICE LEVEL AGREEMENTS

Defines Relationship - Between Shared Service Center & Local Country | Commitments by Both Parties

Ensures Quality Service - Benchmarks & KPIs | Activity-Based Costing & Balance Scorecard | Customer Satisfaction Surveys

Shared Services - Challenges


• Clear definition of local /central split – minimize hand-offs

• Change management is required for the loss of the “personal touch” locally

• Location should be considered for both cost-savings and attrition over the long-term

• Management of cultural differences and virtual teams

• Special attention is required if the process is being reengineered during the migration to shared services

ROIOracle‟s Shared Services Summary


Total F&A cost declined 30%

Total heads declined 25%

Cost per head declined

Payback was ~2.5 years

Reduction in finance cost as % revenue

o Strong Internal Controls & Easier Compliance

o Consistent Data

o Improved Quality & Higher Service Levels

o Labor & Transaction CostEfficiencies

o Globalization & Standardization of Processes

o Greater Agility to Respond to Change & Integrate New Businesses

o Less Change Management for New Systems or Processes

Case

Study

*Number of end-user processes and workflows that have been self-service enabled

Oracle Internal Self-ServiceMake Everything Self-Service


Level of Self-Service Across Functions at Oracle

* • Automate All Low Value, High Volume Interactions With:

EmployeesCustomersSuppliers

• Model: Amazon‟s Customer Experience

The Transformation PayoffThe Ability to Drive Profitable, Sustainable Growth

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1994 1995 1996 1997 1998 1999 2000 2001 2002

Operating Margin % (Non-GAAP)

Oracle‟s Business

Transformation


Efficiency at the Cost of Agility?

Tailored Offerings

Operational Excellence

Customer Intimacy

Lower Costs


Efficiency at the Cost of Agility?

Tailored Offerings

Operational Excellence

Customer Intimacy

Lower Costs

Simplification, Standardization, Centralization and Automation

are the ENABLERS to both Efficiency & Agility


Adding Customer Value From 70+ Acquisitions

Enterprise Content Management

Performance Management

Identity & Access Management

Middleware Platform and Management

Business Intelligence

Data Integration

Operating Systems Systems Management Virtual Machines

(Pending)


Source: McKinsey Quarterly, January 2011

Oracle IT – Driving Even More Substantial Synergies


Global Processes | Shared Services | Global Single Instance | Self Service

Oracle‟s M&A Integration Process Drives

Performance Improvements

Figures based on Non-GAAP results. GAAP to Non-GAAP reconciliations are available at www.oracle.com/investor. Figures for acquired companies are non-GAAP results for 12 month period preceding acquisition.

Actual Margin

FY04 FY10

39%

13%

8%

18% 19%

2%

46%

Non-GAAP Operating Margin


http://www.oracle.com/investor

The Transformation PayoffThe Ability to Drive Profitable, Sustainable Growth

Operating Margin % (Non-GAAP)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1994 1996 1998 2000 2002 2004 2006 2008 2010

Oracle‟s Business

Transformation

70+ M&A‟s During This Timeframe


CIO Challenges

quality

Doing Things Right

Doing the

Right Things

Source: Gartner. Leading in Times of Transition. The 2010 CIO Agenda

COST


Where We Started

Pockets of Excellence | Many Doors | Reactive


IT Service Management

for change

Source: Gartner. Leading in Times of Transition. The 2010 CIO AgendaCopyright ©2011, Oracle. All rights reserved.

Highly Leveraged | Consistent Delivery | Scalable

Where We Are


Commitment to Transform

Hernando Cortez


IT Transformation Journey

2009 Focus - ITSM Implementation


ITSM Process Framework

(22 processes)

Service Catalog

Service Level Metrics

Governance Processes

Business Relationship

Managers for Each

Customer

Systems Roadmap

Established

Continual Service

Improvement Framework

Established

foundation establishedITSM

IT Transformation Journey

Case

Study

Reengineering & Globalizing Processes

Standardizing & Consolidating:

Applications | Organizations | Facilities | Infrastructure

Run Oracle on Sun


Operations Focused on Four Primary Links in the

Supply Chain


1) Throw Out the Inventory

• Build to Stock (old)

– Assemble to Order (new)

2) Make Deep Cuts

• Strategic changes to Sun‟s existing distribution system and network of sales channel partners

3) Modernize the Technology

• Business process changes

• Update and expand the underlying applications

4) Continuously Improve

• Listening to alternative ideas and concerns

Oracle as a Software CompanyApplication Portfolio

Case

Study

Sales & Marketing

Finance

Service

BI / Enterprise Performance Mgmt

Projects

Project Portfolio Mgmt

Customer Mgmt

Marketing

Partner Mgmt

Sales

Master Data Mgmt

Risk Evaluation & Remediation

Controls & Policy Compliance

Collaboration

Email

Web Conferencing

Instant Messaging

Workspaces

Governance, Risk & ComplianceCustomer Service (My Oracle Support)

Configuration Mgmt

Knowledge & Communities

Health Checks & Diagnostics

Service Request Lifecyle

Enterprise Resource Planning

Financials

Project Accounting

HR & Payroll

Advanced Pricing

Order Mgmt / Quoting

Procurement

eCommerce

Contracts

Before Sun*In ProcessCopyright ©2011, Oracle. All rights reserved.


Procurement Manufacturing

Finance & HR

Financials

Project Accounting

HR & Payroll

Contracts Advanced Pricing

Discrete Manufacturing

Quality

CTO / Configurator

eCommerce

Goods & Services

Indirect

Direct


Case

Study

Sales & Marketing

Finance

Service


Projects


Customer Mgmt

Marketing

Partner Mgmt

Sales

Master Data Mgmt



Collaboration

Email

Web Conferencing

Instant Messaging

Workspaces

Governance, Risk & ComplianceCustomer Service (My Oracle Support)

Configuration Mgmt




Value Chain Planning Value Chain Execution

On Demand Planning

Supply Planning

Service Parts Planning

Supply Chain Management

WMS & Logistics

Global Trade Mgmt

Field Service Execution

Product Lifecyle Mgmt

Product Collaboration

CAD Integration

Product Cost Mgmt

Product Master Data Mgmt



CAD Integration

Product Cost Mgmt



On Demand Planning

Supply Planning



WMS & Logistics

Global Trade Mgmt


Sales & Marketing

Finance

Service


Supply Chain

Sales & Marketing

Finance

Service


Supply Chain



Finance & HR

Financials

Project Accounting

HR & Payroll



Quality

CTO / Configurator

eCommerce

Goods & Services

Indirect

Direct


Projects


Customer Mgmt

Marketing

Partner Mgmt

Sales

Master Data Mgmt

Collaboration

Email

Web Conferencing

Instant Messaging

Workspaces



Finance & HR

Financials

Project Accounting

HR & Payroll



Quality

CTO / Configurator

eCommerce

Goods & Services

Indirect

Direct




CAD Integration

Product Cost Mgmt



On Demand Planning

Supply Planning



WMS & Logistics

Global Trade Mgmt


Customer Service (My Oracle Support)

Configuration Mgmt




Sales & Marketing

Finance

Service


Supply Chain



Governance, Risk & Compliance

Before Sun With Sun*In Process

Oracle with SunApplication Portfolio


0

10

20

30

40

50

60

70

80

90

100

Case

Study

Consolidate & Standardize PayoffN

etw

ork

Co

st

Cap

acit

y


$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

Q1

FY06

Q2

FY06

Q3

FY06

Q4

FY06

Q1

FY07

Q2

FY07

Q3

FY07

Q4

FY07

Q1

FY08

Q2

FY08

Q3

FY08

Q4

FY08

Q1

FY09

Q2

FY09

Q3

FY09

Q4

FY09

Q1

FY10

Q2

FY10

Q3

FY10

Q4

FY10

Q1

FY11

Q2

FY11

Q3

FY11

Q4

FY11

Q1

FY12

Q2

FY12

Network Cost Network Cost per Oracle HC Linear (Network Cost per Oracle HC)

FY06 FY07 FY08 FY09 FY10 FY11

WAN Capacity

Data Center Update - Utah Compute Facility (UCF)

Oracle‟s Newest Green Data Center

• Phase 1:

– Consolidates 68K sq. ft. of compute space

– Accommodates development servers from Austin & Colorado Springs

• Minimizes Power Consumption:

– Outside air used for cooling

– Recycling heat from servers & storage

4 Phase Supercell Design


Oracle on Sun

ZFS Storage Appliance - The standard method of storage for Oracle's IT needs

SPARC / Solaris 10 - Successfully migrated our core ERP single instance to the M9000s

Sun Ray - Deployed worldwide, proving that security & manageability can be improved

Open Office - Providing a mix-deployment in order to reduce the need to purchase expensive licenses

Exadata - Deployed for key applications proving the performance of Exadata

X86 / Solaris / Linux - Running Oracle University, On Demand, & other businesses to show that x86/Linux is Enterprise ready

StorageTek Tape - Leveraging Oracle storage technology to show that applications can be better performing

Analysis of 550 level three & four processes determines whether & how each process could be enabled

Information Over ProcessProcess Automation


Finance & HR

Product / Service

Innovation

Production & Supply

Chain

Customer Service

Marketing & Sales

46%54%

28%18%

13%

The Future of Corporate IT

IT E

na

ble

men

t O

pp

ort

un

itie

s

Process Automation

Information Over ProcessCustomer Interface


Finance & HR

Product / Service

Innovation

Production & Supply

Chain

Customer Service

Marketing & Sales

46%54%

28%18%

13%

3%

4%

34%

13%

3%IT E

na

ble

men

t O

pp

ort

un

itie

s



Process Automation

Customer Interface

Case

Study

My Oracle Support

MyDesktop Software Advice & Recommendations

Configuration Management

Web 2.0 Capabilities

Oracle Expert Community

Community Knowledge

PersonalizedDashboard

Service Request Mgmt

PriorityHandling

Knowledge Base


Peer Community

60K+ Members


Personalized

Proactive

Collaborative

Integrated

Information Over ProcessBusiness Intelligence


Finance & HR

Product / Service

Innovation

Production & Supply

Chain

Customer Service

Marketing & Sales

46%54%

28%18%

13%

3%

4%

34%

13%

3%

11%

14%

16%

30%

13%

IT E

na

ble

men

t O

pp

ort

un

itie

s



Process Automation

Customer Interface


Case

Study

Business Intelligence at Oracle Today

Marketing Sales Support Partners FinanceOrdering & Contacts

• Event Intelligence

• Marketing Contribution Analysis

• Segmentation

• Campaign Intelligence

• Data Quality Monitoring

• Pipeline Intelligence

• Forecasting

• Account Analysis

• White Space Analysis

• Up-Sell /Cross-Sell Opportunities

• Executive Dashboards

• Operational Dashboards

• Contract Renewal Management

• Install Base Intelligence

• PartnerOrdering Analysis

• Partner Enrollment

• Partner Analytics

• Revenue

• T&E Analysis

• Expense Actual vs. Budget

• Expense by Manager

• Headcount

• Ordering Analysis

• Ordering Queue Monitoring

• Quote to Order Flow & Analysis

• License Contract Intelligence


http://www.google.com/imgres?imgurl=http://blogs.cisco.com/upload/images/search_-_man_and_laptop.jpg&imgrefurl=http://blogs.cisco.com/ciscotalk/marketing&usg=__t6FBKedLeEjPWphzaWxK5yCdYl0=&h=282&w=425&sz=97&hl=en&start=108&zoom=1&um=1&itbs=1&tbnid=LlgjcVSyuG_g9M:&tbnh=84&tbnw=126&prev=/images?q=istockphoto+Marketing&start=105&um=1&hl=en&sa=N&rls=com.microsoft:*&ndsp=21&tbs=isch:1

Information Over ProcessCollaboration


Process Automation

Customer Interface

Collaboration


Finance & HR

Product / Service

Innovation

Production & Supply

Chain

Customer Service

Marketing & Sales

46%54%

28%18%

13%

3%

4%

34%

13%

3%

11%

14%

16%

30%

13%

14%

12%

13%

20%

44%

IT E

na

ble

men

t O

pp

ort

un

itie

s



Graceful CollaborationPersistent and Purposeful


Enables Rapid & In-Context

Collaborative Decision Making

Voice Calls | Text Chat | Presence | Polling | Tagging |

Multi-Media | Email Alerts | Follow-ups | Notifications |

Archival | Enterprise Security | iPhone App |

Integration with Oracle Content Management, Applications, Email, Support Systems, & More…

Joni Mitchell - Both Sides Now

Live,1970

I've looked at clouds from both sides now,

From up and down, and still somehow

It's cloud illusions I recall.

I really don't know clouds at all.

Cloud Computing


Cloud Computing


• On-demand Self-Service

• Resource Pooling

• Rapid Elasticity

• Measured Service

• Broad Network Access

Essential Characteristics

• Infrastructure as a Service

• Platform as a Service

• Software as a Service

Deployment Modes

“Cloud computing is a model for enabling convenient, on demand

network access to a shared pool of configurable computing

resources that can be rapidly provisioned and released with

minimal management effort or service provider interaction.”

National Institute of Standards & Technology Definition

Private Cloud Momentum

Source: CIO Insights Q2 2010 http://internet.ziffdavisenterprise.com/CIOI_Downloads/CIOI_2010_Q2_CloudRsrch.pdf

“Cloud computing projects are still at an early stage at most companies, if they are happening at all. However, the overwhelming majority of IT executives have at least begun evaluating the benefits of cloud technology, with much of their focus on private clouds.”


Case

Study

Oracle‟s Software Development Cloud - “Devops” Nearly Ten Years Development / Use

Current Metrics

Avg. new VM reservations

per day: ~50

Avg. self-service reboots

per day: ~25

Avg. self-service reimages

per day: ~100

*That is not limited to a single: OS imaging technology, hypervisor, or cloud API

• Internal hardware resource management application leveraging existing development automation as a „private cloud API‟

• A platform allows us to move more users & hardware resources into a self-service „cloud‟*

• A self-service reimaging & rebootportal for users

Oracle UniversitySelf Service – Broad Network Access – Resource Pooling


• 2,300 environments automatically

provisioned weekly

• 1/10th the hardware

• CPU utilization increased from 7%

to 73%

• Revenue per server increased 10X*

• Servers to administrator ratio

increased 10X

234 physical servers | 2,300 Virtual Machines | 5,243 templates/modules

Case

Study

*Result of initial OU implementation to the grid/cloud

Oracle Private Cloud

iProcurement

GIT Service Catalog

Customer Chooses:– Tier– Quota– VM Size

Custom API Layer

Provision

Provisioning is completed in minutes after approval is received in iProcurement

Sun 74xx

Sun x4170

10:1 VM Ratio

Oracle VM Server Pool

VM VM VM

ZFS Storage Application

Sun Servers


Estimated Capital Outlay Per EnvironmentOracle Private Cloud

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Bare Metal Tier 1: Self Support/Self Service

Tier 4: Global IT Supported

Expected Demand: ~10% ~40%

Assumptions:• An environment is composed of presentation layer, middle tier and database• Personnel based operating & support costs are equivalent and therefore excluded from the model

Tier 1 – Appropriate for:

• Sandbox Environments

Tier 4 – Appropriate for:

• Customer Engagements

• Billable Revenue Engagements

• Consulting Dev Projects

Case

Study


Increased Efficiencies for StakeholdersOracle Private Cloud

Current OPC

S&P Request Process………..…… 1-2 weeks ……...….

Bare Metal Provisioning……..……. 1-2 weeks ……..…..

Procurement Process…………..…. 1-2 months ……..…. 2- 5 days*

Total Implementation Time 1 ½ - 3 months 2- 5 days

*Majority of this time is the review/approval cycle

Current OPC

Provisioning Cycle for VMs 3- 4 hours 1- 2 hours*

*Through use of EVC

Case

Study


Cloud Service AdoptionSecurity Continues to be the #1 Concern

It could actually be a benefit…..

Source: www.networkcomputing.com / IDC Survey: Risk In The Cloud, June 16, 2010

“So if you flip that apprehension on its head, there may be benefits in leveraging a cloud offering with the [security] focus and core competence that a cloud provider brings to the table.”

-Michael Pearl, PricewaterhouseCoopers


Choice of Deployment


Public Cloud Private Cloud

On Premise Hybrid

Deployment Options

Developing a More „Dynamic Workplace‟


9 freedom from choice7 don‟t tell me about the rock, just the nuggets of gold1 every organization has the IT capability they deserve5 Just because you CANdoesn‟t mean you SHOULD10 don‟t align with the business, be the business

you can recover from a poor decision, there is no recovery from indecision

2 organizations have cultures, people don‟t 68 we don‟t integrate, we eliminate

as the CIO of

3 if something doesn‟t break, its too heavy4 If the dog doesn‟t hunt, don‟t feed it

1. every organization has the IT capability they deserve

5. just because you CAN doesn‟t mean you SHOULD

4. If the dog doesn‟t hunt, don‟t feed it

3. if something doesn‟t break, its too heavy

2. you can recover from a poor decision, there is no recovery from indecision

9. freedom from choice

8. we don‟t integrate, we eliminate

7. don‟t tell me about the rock, just the nuggets of gold

6. organizations have cultures, people don‟t

10. don‟t align with the business, be the business

as the CIO of

www.oracle.com/cio

– Top CIO business & technology priorities focused content in one place on O.com

– Executive events coverage from invitation-only CIO Summits, event listings

– cio2cio video interviews with customer CIOs on CIO strategies and technologies

– Videos & webcasts from Oracle CIO Mark Sunday

– CIO reference case studies from your peers

– Resources: white papers, analyst reports, more..

Oracle CIO CENTRAL

The preceding is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into

any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions. The

development, release, and timing of any features

or functionality described for Oracle's products

remains at the sole discretion of Oracle.


Documents

Mark Sunday, SVP & CIOmedia.govtech.net/.../2011/...MarkSundayOracle.pdf · CLOUD SERVICES Supporting over 5.5M users over 3.7K environments with On Demand • Oracle technology stacked