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IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth Oracle Enterprise Architecture Alan Levine Oracle Enterprise Architect Senior Director Oracle Advanced Technology Services

IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

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As presented by Alan Levine at the Oracle Technology Network Architect Day events in Dallas TX (5/13/10) and Anaheim CA (5/18/10).

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Page 1: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

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IT Optimization: Reduce Data Center Costs and

Set the Foundation for Future Growth

Oracle Enterprise Architecture

Alan Levine

Oracle Enterprise Architect Senior Director

Oracle Advanced Technology Services

Page 2: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 2

The following 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 remain at the sole discretion of Oracle.

Page 3: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 3

Agenda

• Oracle and Enterprise

Architecture

• Creating the Architecture

Vision for IT Optimization

• IT Optimization Strategies and

Reference Architectures

Overcome IT

Complexity and

Achieve Business

Agility

through

Enterprise

Architecture

Page 4: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 4

Enterprise ArchitectureA Means for Alignment and Coherence

Business - IT Alignment

Business Processes

Performance Management

Development

Infrastructure

Security & Compliance

Information Assets

Grow

Reduce Costs

Innovate

Adapt

Business Dynamics Technology Support

Page 5: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 5

Oracle EA Guiding PrinciplesPrescriptive Guidance, Practical Approach

• Driven by Business Strategy,

focused on building an Architecture Vision

• Just-Enough, Just-in-Time

for solution development efforts

• Iterative and collaborative

• Reuses best practice

Business Models and Reference Architectures

• Can be enforced

Page 6: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 6

Oracle’s Approach to Enterprise ArchitectureBuilding a Sustainable Architecture

Oracle

Architecture Development

Process (OADP)

Oracle

Enterprise Architecture

Framework (OEAF)

Page 7: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 7

Business Drivers for IT Optimization

PACE OF BUSINESSIncreasing expectations

from customers and

partners to provide

answers sooner

INNOVATIONCompanies are under

pressure to bring

products and services

to market faster

GLOBALIZATIONCustomers, supply chain,

and competition have all

become global

REDUCE COSTSRelentless pressures

to drive additional

efficiencies…do more

with less

Business is Changing & Evolving Rapidly

Page 8: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 8

Creating the Architecture Vision for IT Optimization

OEAF Considers All Layers of Architecture

• Business Strategy, Operating Model

• Organizational Structure

• Key Business ServicesBusiness

• Application Processes and Services

• Logical and Physical Components

• Industry specific reference architecturesApplication

• Information repositories and standards

• Security, Governance, and Stewardship

• Information sharingInformation

• Core Technology Services

• Solutions such as High Availability and Disaster Recovery

• Technology Reference ArchitecturesTechnology

Page 9: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 9

Architecture Vision for

IT Optimization

FBT PAY GNTS

TRDS

Client

Customs

RREIPS Integrated A/C

Refunds

RBADef

PaymentsExcise

CR

PKI

ECI ADD AWA ELS

Client StaffRemote

StaffTAX

AGENTS

GCI

Call Centres

WOC

CCD

TASS

StaffPhone

ComplianceStaff

BOA

Refmaterial

Bus. Intel

NTS A/c

BEP

CDCCCWMS

BANK

DDDR

1

Data…….

Penalty

Business

IVR

1

FBT PAY GNTS

TRDS

Client

Customs

RREIPS Integrated A/C

Refunds

RBADef

PaymentsExcise

CR

PKI

ECI ADD AWA ELS

Client StaffRemote

StaffTAX

AGENTS

GCI

Call Centres

WOC

CCD

TASS

StaffPhone

ComplianceStaff

BOA

Refmaterial

Bus. Intel

NTS A/c

BEP

CDCCCWMS

BANK

DDDR

1

Data…….

Penalty

Business

IVR

1

Business SilosStandardized Technology

Security

SFAProduct LMSInv

MGMTB2Bproduct SCM product DBERP

MES-

Dev

SFASFA-

Test

SFA-

Stage

Product

Product

ERP-

StageERP-

Prod

MES-

StageMES-

Prod

productDB-

Stage B2B-

StageB2B-

Dev

Security Security Security

Pt. to Pt. Integrations

SFAProduct LMSInv

MGMT

product SCM product DBERPMES-

DevProduct ERP-

Stage

productDB-

Stage

Optimized IT Core

Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

Integration Layer

Security Layer

Application Grid Application Grid Application Grid

Business Modularity

Rationalized Applications

on Standardized

Technology Platforms

Virtualized and

Consolidated

Infrastructure and

Services

Shared Services/

Cloud Computing

Where are you on the

Enterprise Architecture

Maturity Model?

Architectural

Complexity

Source: MIT Sloan Center for Information Systems Research

Page 10: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 10

Oracle Architecture Development ProcessIterative approach to achieving IT Optimization

10

Rationalization (Standardization)

Virtualization, Consolidation,

Management Automation

Shared Services /

Cloud Computing

Stage I

Stage II

Stage III

Stage IV

Future State Architecture Vision

Page 11: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 11

IT Portfolio Rationalization

Environmental Complexity

• Eliminate Redundancy

• Standardize

• Modernize

• Migrate

Standardized Environment

Applications Technology

Hardware

Business Processes

FBT PAY GNTS

TRDS

Client

Customs

RREIPS Integrated A/C

Refunds

RBADef

PaymentsExcise

CR

PKI

ECI ADD AWA ELS

Client StaffRemote

StaffTAX

AGENTS

GCI

Call Centres

WOC

CCD

TASS

StaffPhone

ComplianceStaff

BOA

Refmaterial

Bus. Intel

NTS A/c

BEP

CDCCCWMS

BANK

DDDR

1

Data…….

Penalty

Business

IVR

1

FBT PAY GNTS

TRDS

Client

Customs

RREIPS Integrated A/C

Refunds

RBADef

PaymentsExcise

CR

PKI

ECI ADD AWA ELS

Client StaffRemote

StaffTAX

AGENTS

GCI

Call Centres

WOC

CCD

TASS

StaffPhone

ComplianceStaff

BOA

Refmaterial

Bus. Intel

NTS A/c

BEP

CDCCCWMS

BANK

DDDR

1

Data…….

Penalty

Business

IVR

1

Page 12: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 12

How do we accomplish IT Portfolio

Rationalization?

Inventory

Map

Analyze

Step 1 - Build inventory of existing applications / technology

Step 2 - Map inventory to business / IT capabilities

Step 3 – Analyze the portfolio against evaluation criteria(Portfolio Scoring)

TransformStep 4 – Propose the appropriate actions to transform the “Current State” into the desired “Future State”

It’s an Iterative Process!

Page 13: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 13

Inventory Applications & Technology

• Build an inventory of existing

applications and technology

• Capture key attributes:

– Business Owner, Department,

Location

– Number of Users / CPUs

– Custom, COTS, etc…

• Determine evaluation criteria:

– Strategic Value

– Functional / Technical Fit

– Conformance to Architecture

Principles & Standards

– Risk

– Total Cost of Ownership

Page 14: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 14

How is Redundancy Identified?Map Applications to Business Functions/Capabilities

Business / IT CapabilitiesApplications / Technology Inventory

ACT - USA

Business Works - Australia

AMIS - APAC

Potentially Redundant Applications / Technology

DB2 - USA

SQL Server - Aus

Informix - APAC

Oracle - Europe

Page 15: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 15

Virtualization, Consolidation, and Automation

SFA Product

LMSInv

MGMTB2B

product SCM

product DB

ERP

CRM-

Prod ERP

MES-

Dev

CRMCRM-

StageCRM-Dev

SFASFA-

Test

SFA-

Stage

Product

Product

ERP-

StageERP-

Prod

MES-

StageMES-

Prod

productDB-

Stage

B2B-

StageB2B-

DevERP-

Stage

ERPERP-Dev

System Proliferation

Optimized

Data Center & Systems

Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

Integration Layer

Security Layer

Application Grid Application Grid Application Grid

• Flexibility, Scalability

• Increased Utilization

• Automation and Efficiency

• Industry Standards (ITIL)

Page 16: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 16

Virtualization and Consolidation Across

Technology Layers

• Virtualization is key for IT to

meet business needs for

• Performance, Availability and Agility

• It must be built into each layer

• Two models for virtualization

• Business needs will drive

optimal use of virtualization

• Easily adjustable as

requirements change

Portals & Web Servers

Application Servers

Middleware

Database / Info Mgmt

Security

Disk / Storage

Hardware / Platform

Management

User Desktops

Page 17: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 17

Database and Storage VirtualizationOracle Database Grid

• Server Consolidation and Virtualization

– Single Access Point for Applications

– Load Balancing and Resource Pooling

– Efficient resource utilization

– Instance Caging and Resource Management

– Rolling patches and upgrades

– On-line instance migration

– Scale-out with Grid Plug-and-Play

– High availability and redundancy

• Storage Consolidation and Virtualization

– Simplified provisioning with zero downtime

– I/O Load Balancing

– Information Lifecycle Management

– Compression

Multiple servers with shared

database(s) and storage

Page 18: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 18

Database and Storage VirtualizationPackaged as an Integrated Platform

Flexible Capacity• Grid architecture for scale-out of database and storage servers

• Smart Scan for offloading query processing to the storage layer

• Smart Flash Cache storage for real-time random I/O

• Data compression tuned for OLTP, Warehousing and Archival data

• Infiniband networking to support massive data transfers

Resource Sharing• ASM (Automatic Storage Management) shares Exadata storage

across all databases

• RAC (Real Application Clusters) shares large DBs across many nodes

• IORM (I/O Resource Management) allocates I/O bandwidth based on database or application priorities

• Instance Caging shares CPU for multiple databases within a node

All the Power of the Oracle Database• Real Application Clusters, Backup/Recovery, Replication, Security,

Partitioning, Large Objects, Enterprise Manager…

Page 19: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 19

Data Object VirtualizationOracle Coherence Data Grid

Copyright © Oracle Corporation 2007 * Oracle Confidential and Proprietary

• Provides a reliable data tier

with a single, consistent view of

data

• Enables dynamic data capacity including fault tolerance and load balancing

• Ensures that data capacity scales with processing capacity

MainframesDatabases Web Services

Enterprise

Applications

Real Time

Clients

Web

Services

Oracle CoherenceData Grid

Data Services

Page 20: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 20

Server Virtualization

• Evolution of Solaris Logical Domains;

Integration with Oracle VM family

• Highly efficient hypervisor for Sun

Chip Multithreading (CMT) servers

• Multiple, independent Solaris OS

instances

SPARC (CMT) Hardware

Solaris

Oracle VM Server for SPARC

• High performance hypervisor for

x86/x64 architecture

• Supported guests: Linux,

Windows, Solaris (new)

x86/x64 Hardware

Solaris

Oracle VM Server for x86

Linux Windows

• Roadmap: uniform, integrated virtualization management

across SPARC CMT and x86/x64 through Oracle VM Manager

Page 21: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 21

Management of Virtualized ResourcesOracle Enterprise Manager

• Abstracts system management into one

virtualized console

• Grid Control virtualizes system images for

rapid deployment

• Virtual Iron provides management

capabilities of virtualized servers

• Deploy standard virtual machine images

quickly and easily

• Expedited provisioning and patching

• Manage Quality of Service from end-user

perspective

• Automated diagnostics and tuning

• Real-time and predictive monitoring

• Comprehensive testing and validation

Page 22: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 22

Aligning Automation with Standardized

Processes – ITIL

• Service Strategy

• Service Portfolio

Management

• Financial Management

• Demand Management

• Service Catalog Management

• Service Level Management

• Supplier Management

• Capacity Management

• Availability Management

• IT Service Continuity

Management

• Information Security

Management

• Transition Planning

and Support

• Change Management

• Service Asset and

Configuration

• Release and Deployment

• Service Validation and

Testing

• Evaluation

• Knowledge Management

• Event Management

• Incident Management

• Request Fulfillment

• Problem Management

• Access Management

* Oracle Enterprise Manager Capabilities

Page 23: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 23

Shared Services & Private Cloud

Shared Services /

Private Cloud

Vendors Software Hardware

Au

tom

ate

d

Change & Configuration Management

Consolidated

System Provisioning & De-Provisioning

Availability Management

Rationalized

Service Group A

Data Grid Data GridData Grid

Service Group B Service Group C

1

3

Integration Layer

Security Layer

2

Application Grid Application Grid Application Grid

• Capacity on Demand

• Metering & Chargeback

• Governance & Security

Page 24: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 24

NIST Definition of Cloud Computing

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

This cloud model promotes availability and is composed of:

Source: NIST Definition of Cloud Computing v15

3 Service Models

• SaaS

• PaaS

• IaaS

4 Deployment Models

• Public Cloud

• Private Cloud

• Community Cloud

• Hybrid Cloud

5 Essential Characteristics

• On-demand self-service

• Resource pooling

• Rapid elasticity

• Measured service

• Broad network access

Page 25: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 25

Cloud Computing Impacts All Layers of

Architecture

• Identity and Access Management

• Metering and Chargeback - How to recoup your investment?

• Change Management and Control - How to align the competing needs of consumers and suppliers of services?

Business

• Service Provisioning

• How to automate and streamline the creation and deployment of application platform stack?

• How do you ensure tenant isolation and protect information?

Application

• Monitoring and Reporting - How to gain understanding what is happening inside the cloud?Information

• Dynamic Scaling - How do you enable capacity scale-up / scale-down?

• Unified Develop, Test and Deploy experienceTechnology

Page 26: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 26

Oracle Cloud Computing Strategy

Public Clouds

IaaS

PaaS

SaaSI

N

T

R

A

N

E

T

Private Cloud

Users

Our objectives:

• Ensure that cloud computing is fully enterprise grade

• Support both public and private cloud computing – give customers choice

IaaS

PaaS

SaaS I

N

T

E

R

N

E

T

Offer Technology to build

private clouds or run in

public cloudsIaaS

PaaS

IaaS

PaaS

Offer Applications deployed

in private shared services

environment or via public

SaaS SaaSSaaS

Page 27: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 27

IaaS and PaaS Conceptual Architecture

Virtualization

OSManagement

Shared Components Self-Service Interface

Database

Middleware

Management

Infrastructure

as a

Service

Platform

as a

Service

Page 28: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 28

Why Enterprise Private PaaS?

• Why Cloud?

- Agility and speed

- Efficiency and cost

• Why Private?

- Security

- Compliance

- Control (particularly over QoS)

- Easiest evolution of existing expertise and

practices

• Why Platform?

- Maximizes component re-use

- Minimizes hand coding

- Maximizes flexibility and control

PaaS

IaaS

Built

by

user

Provided

by IT

Built

by

user

Provided

by IT

IaaS PaaS

PaaS is the sweet spot for Cloud Computing and IT Optimization!

Page 29: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 29

Oracle and Sun Cloud Solution

Page 30: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 30

Review - Three Phases of IT Optimization

Portfolio Rationalization

Virtualization, Consolidation and Automation

Enterprise Cloud Computing

Page 31: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 31

A Roadmap to Enterprise Cloud Computing

• Physical

• Dedicated

• Static

• Heterogeneous

Private Cloud Evolution

Public Cloud Evolution PaaS

SaaS

IaaS

Public Clouds

Hybrid

• Federation with public clouds

• Interoperability

App1 App2 App3

Private IaaS

Private PaaS

Virtual Private Cloud

Hybrid

PaaS

SaaS

IaaS

Private Cloud

• Self-service

• Policy-based resource mgmt

• Metered

App2 App3

Private IaaS

Private PaaS

App1

Silo’d Grid

• Virtual

• Shared services

• Dynamic

• Standardized appliances

App1 App2 App3

App1 App2 App3

Private IaaS

Private PaaS

Page 32: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 32

Oracle Enterprise ArchitectureAligning IT Optimization with Business Drivers

People

Certified Architects,

Trusted Advisors

Process

Best Practices,

Practical Methodology

Portfolio

Tested Principles,

Trusted Artifacts

Page 33: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

© 2010 Oracle Corporation 33

• Visit the Oracle Technology Network

(OTN) Architect Center on oracle.com

• Blog along with our Oracle Enterprise

Architects at blogs.oracle.com

• Attend Oracle EA and Architect Events

• Access EA Resources - Contact your

Oracle Account Team

To Learn More

Page 34: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

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Questions & Answers

Oracle Enterprise Architecture

Page 35: IT Optimization: Reduce Data Center Costs and Set the Foundation for Future Growth

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Thank You

Oracle Enterprise Architecture