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The New Generation of IT Optimization and Consolidation

Platforms:

Results-Driven Enterprise Architecture

Timothy Davis

Director, Oracle Enterprise Architecture

Oracle Corporation

Oracle Enterprise Architecture

Oracle Enterprise Architecture

Agenda

• Results-Driven Enterprise Architecture

• EA Case Studies in IT Optimization

– Portfolio Rationalization

– Data Center Consolidation

– Shared Services / Cloud

• Q & A

Oracle and Enterprise ArchitectureResults-Driven EA, “A Practical Approach”

• Intrinsic Business Alignment

– Deliver a financial and operational business case

– Develop IT roadmap to match business expectations

– Design-in governance and management visibility

• Value Add to IT

– Shares proven EA artifacts and EA services

– Focused on holistic implementation, not just products

Oracle Enterprise

Architecture Framework

Oracle Architecture

Development Framework

Oracle Enterprise Architecture Framework & Process

Pull Out Sample Artifacts

Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only. 5

Oracle’s Approach to Enterprise ArchitectureBuilding a Sustainable Architecture

Architecture Vision

• EA must be driven by business strategy and objectives

• Business leaders own the EA

• Establish enduring architecture principles

Current State

Capabilities

• Assess capabilities and architecture maturity

• Focus on capability gaps and the future state

• Iterate; define just enough models, just in time

Future State

Architecture

• Be practical and resourceful

• Reuse best practices and reference models

• Apply architecture principles; standardize and simplify

Strategic Roadmap

• EA is a journey; segment, iterate and collaborate

• Focus on speed-of-delivery and maximizing business value

• Manage risk

Enterprise ArchitectureGovernance

• Steer efforts via practical, implementable guidance

• Monitor & measure lifecycle performance/business results

• Implement continuous process improvements

6© 2011 Oracle Corporation – Proprietary and Confidential

Oracle Global TransformationRapid Acquisitions for a Best-in-Class Portfolio

Enterprise Content Management

Performance Management

Identity & Access Management

Middleware Platform and Management

Business Intelligence

Data Integration

Operating Systems Systems Management Virtual Machines

(pending)

(pending)

over 70 acquisitions since 2004 … and counting

7

Oracle’s own Transformation

Globalized Operational Excellence Key Business Drivers

Lower Costs Better Information, Governance

• Global information visibility

• Global consistency of process, policy & data

• Strong internal controls

• Easier compliance

• Fewer data centers

• Self service processes

• Labor & transaction cost efficiencies

• Shared service centers

• Off-shoring

Increase Speed

• Streamline change management

• Fast integration of new acquisitions

Improve Customer Service

• Improved quality and service

• One customer experience

Oracle IT Consolidation EA Roadmap

63 Financial databases 1 Financial single global instance

1 IT Support single global instance

60 IT Support databases

97 Email servers on 120 databases

1 cluster of 2 Email servers and 4 databases

501 Education servers 296 Education servers

32 IT Support servers, 600 test servers

2 IT Support servers, 30 test servers

40 Education registration systems

1 Education registration system

27 IT Support applications 1 IT Support application

>1000 applications<100 applications – standardized on E-Business Suite

40 Data Centers

2300+ Staff

1 Global IT & Governance Model

2 Data Centers + 1600 Staff

Few standard business processes

Standardized core business processes

Business Architecture

Data Architecture

Technical: Application &

Services Architecture

Technical: Infrastructure Architecture

“AS - IS” State “TO - BE” State

9© 2011 Oracle Corporation – Proprietary and Confidential9

Business

Architecture

Bus/IT Strategy Provide LOB and

Country autonomy.

Allow for customizations

as demanded by BU’s.

IT Simplification,

Standardization &

Consolidation

One Global IT

Consolidate Data

Centers & Bus Proc.

Unify customer-facing

processes and customer

data by implementing

Global CRM (GCM).

Implement Global BI. Move

from BI tools to pre-

packaged BI solutions for

sales, mktg, & financial

analytics accessing one Corp

WH.

Bus Operating

Model / EA

Maturity

Replicated /

Business Silos

Unified /

Standardized

Technology

Unified /

Optimized Core

Unified /

Dynamic Strategy

Business

Objectives

Maximize ROI at an

LOB/Country level.

$1B Cost Reduction

Foundation for Growth

ERP Standardization

Fix RevRec issues

Global Campaign to

Opportunity to Quote

customer-facing process

One Customer View

Foundation for BI

Better marketing, sales, and

financial decision making

Application

Architecture

Architecture

Strategy

Customize & optimize

local apps for BU needs

Standardize on EBS

Implement Global

Single Instance via

Apps Rationalization

Standardize on Siebel

CRM 8.0. Implement

GCM. Integrate BP for

Opportunity (Siebel

CRM) to Quote (EBS)

Create BI solutions using

OBI EE/Hyperion with Siebel

CRM, EBS Suite, and ODI.

Implement Global BI using a

phased approach.

Information

Architecture

Architecture

Strategy

Maintain data for BU

needs. Rollup data to

corporate level as

required.

Implement Global Info

System via Info

Rationalization and DW

centralization

Provide one source of

truth Customer DW that

integrates data from

multiple sources

Provide a Global Corporate

WH with data feeds from EBS

GSI, CRM GSI, and other

sources.

Technology

Architecture

Architecture

Strategy

Optimize platform for

individual applications &

data access via tuning

configurations

Move to shared

services model.

Standardize H/W &

S/W. Operationalize.

Optimize platform in

Austin Data Center on

Linux.

Optimize platform in Austin

Data Center on Linux and

RAC. Secure data.

Current State OperationalExcellence Global CRM BI for All

Oracle’s Strategic Roadmap1998 1998 - 2003 2006 - 2008 2008 - 2011

Architecture Center of ExcellenceDelivers Consistent EA Execution

• Across Projects

• Across Technology

• Across Teams

ArchitectureCOE

Program

Management

StrategicDirection

Management Reporting

Architecture& Expertise

StrategicNeeds

Project

Teams

Oracle Has Been Guiding EAOracle EA Solution Engagements

• Re-engineer core business processes

• Master data management

• Improve analytics & information quality

Information Architecture

• Refine EA role & responsibility

• Organize overall accountability

• Bridge business & IT strategy

Enterprise Architecture Methods

• Refine capability models and metrics

• Connect business model to EA vision

• Guide industry best practices

Business Architecture

• Rationalize portfolio & roadmaps

• Guide services, EDA & BPM strategy

• Applications evolution roadmap

Applications Architecture

• Server consolidation (RAC-Exadata)

• Enterprise security (DB-Identity)

• IT-as-a-Service (DB-aaS, PaaS, IaaS)

Technical Architecture

• Establish processes & metrics

• Oversee governance operations

Governance Architecture

WHAT IS

“IT OPTIMIZATION?”

Roadmap to Strategic AdvantageDriven by Business Strategy and Operating Model

Business

Silos

Standardized

Technology

Optimized

Core

Business

Modularity

Source: Copyright MIT Sloan Center for Information Systems Research. Enterprise Architecture As Strategy, Jeanne W. Ross

IT Optimization

Build an

effective and

efficient IT

platform for

execution

Standardize

core

processes and

information

Rapidly

innovate and

propagate for

strategic

impact

Phases of IT Optimization

• IT as a “Service”

• Rapid provisioning

• Lower costs

• Faster project turnaround

• Greater focus on business

PaaS

SaaS

IaaS

IT as a

Business

Shared Services /

Cloud Computing

• Peak load sized

• Difficult to scale

• Difficult to change

• Expensive to manage

• Complex and risky

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

IT Silos

Goals:

• Pools of resources

• Consolidated

• Better productivity

• Higher QoS

• Improved IT agility

• Improved security and management

Virtual and Consolidated

Infrastructure and Services

Optimized

Integration Layer

Security Layer

Service Group A

Data Grid

Application Grid

Service Group B

Data Grid

Application Grid

• Standardized interfaces/systems

• Lower costs for license and support

• Better leverageof IT resources/skills

• Reduced IT project time/costs/risks

Rationalized

IT Portfolio

Standardized

Point to Point Integrations

SecuritySecuritySecuritySecurity

Product Product

B2B B2BPortal PortalPortal

CRM

ERP

CustomerCustomer

CRM

ERP

CRM

ERP

CRM

ERP

Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only.

“Architecture” Guiding Principles

Rationalization

Standardization

Data Center and System Optimization

Resource Pools

Consolidation

Enterprise Security

Enterprise Management

Shared Services/Cloud

Computing

IT as a “Business”

Customer Goal Driven

Agility

Elasticity

IT Optimization: EA ProcessRelying on a Proven Methodology

Phase I:Portfolio Rationalization

Phase II: Data Centerand System Optimization

Phase III: Shared Services/Cloud Computing

Str

ate

gic

Bu

sin

es

sa

nd

IT

Ali

gn

me

nt

Aligned

Architecture

Vision

IT Optimization: EA ProcessRelying on a Proven Methodology

Phase I:Portfolio Rationalization

Phase II: Data Centerand System Optimization

Phase III: Shared Services/Cloud Computing

Str

ate

gic

Bu

sin

es

sa

nd

IT

Ali

gn

me

nt

Aligned

Architecture

Vision

Case Study: Financial Services

Portfolio Rationalization Scope: Re-engineering the Core Information Architecture

• Reduce closing cycle down from 35-50

days

• Complete re-engineering of processes

• Ensure data reliability & governance

• Provide basis for agility and innovation

Business Goals

• Hardcoded accounting rules

• Complex, heterogeneous portfolio

• No centralized data quality strategy

• Never rationalized portfolio

Challenges

Kick Start EA Principles

Information

as an Asset

Information needs to be managed and

treated the same way as physical asset.

Value and Risk

Classification

A classification of an information asset’s

value and risk should be the foundation

on which its management and

governance is based.

Single Version

of Truth

Data should only be collected once

electronically within a single interface,

and shared across systems.

Minimum Quality Quality requirement needs to be set for

information assets.

Information has

Authoritative

Sources

All business data needs to have an

authoritative source.

Information

Security

Information needs to be secure

throughout its lifecycle.

Information

Accessibility

Information is accessible for users to

perform their functions.

Data

Stewardship

Every data item has one person or role

as ultimate custodian.

Metadata Driven Information architecture needs to be

metadata driven.

Measurement

for Quality

Quality of data will be measured.

Principle Description

Leverage Proven Architectures

Effective GovernanceExample: Institutionalize Accountability and Governance

IT Optimization: EA ProcessRelying on a Proven Methodology

Phase I:Portfolio Rationalization

Phase II: Data Centerand System Optimization

Phase III: Shared Services/Cloud Computing

Str

ate

gic

Bu

sin

es

sa

nd

IT

Ali

gn

me

nt

Aligned

Architecture

Vision

• Maximize clustering and virtualization

• Increase hardware utilization

• Standardize IT management processes

• Reduce diversity across IT: capital expenses, skills

• Reduce diversity, complexity, and risk

• Simplify regulatory compliance

• Increase automation for QoS and IT productivity

• Enable consistency and accountability

Data Center and System Optimization“Architecture” Guiding Principles

Resource Pools

Consolidate

Enterprise

Security

Enterprise

Management

Resource Pools Across Tiers

• Business Demands Agility– Deliver new resources quickly

– Adjust as requirements change

• Multiple Resources Must Be Aligned to Meet Service Levels

– Performance and Availability

• An Engineering Commitment– Optimal flexibility and value

User Desktops

Portals & Web Servers

Application Servers

Middleware

Database / Info Mgmt

Hardware / Platform

Disk / Storage

Security

Management

Helping Customer EAs Model Solutions

Case Study: Financial Services

Data Center Optimization Scope: Computing Platform Overhaul

• IT unresponsive to business competitive

needs

• Streamline business process automation

• Integrated analytics

• More leveraged IT spend

Business Goals

• Ongoing M&A and independent budgets

• Dictated by business what to buy

• Project driven culture, high redundancy

• Reduce IT storage and platform costs

• Coordination of large IT

Challenges

EXECUTIVE INSTRUCTIONS:

SAVE US MONEY NOW !

Operational RecommendationsEvolve to a Comprehensive IT-as-a-Service Model

Infrastructure Simplification

Security and Identity

Oracle Apps as a Service

Infrastructure as a Service• Reduce storage requirements

• Maximize server utilization

Analytics as a Service

• Rationalize analytics

• Standardize engines

Applications as a Service

• Rationalize portfolio

• Standardize CRM and ERP

Security as a Service

• Standardize Identity Management

• Standardize Data Security

Analytics Consolidation

Data Center TransformationChanging the Operational Model

Serv

ers

Sto

rag

e

1,981

WebLogicServers and Open Source

1,158

DatabaseServers*

2,662 Terabytes

Enterprise Storage(25% Annualized Growth Rate)

Sim

plifi

ed

Infr

as

tru

ctu

re

Exalogic

Middleware

Private

Cloud

49

ExalogicServers

Exadata

Database

Private

Cloud

86

ExadataServers

Future State

*Target 50% of Current Oracle Environment

Current State

Infrastructure Component Current Target Future Reduction

Database Servers 2,270 1,158 86 93%

Middleware Servers (WebLogic and Open Source) 2,251 1,981 49 97%

Storage (Terabytes) 2,662 2,662 703 74%

703Terabytes Storage

“The Art of the Current State”

Financial Recommendation More than Traditional Analysis, added an EA Focus

IT Optimization: EA ProcessRelying on a Proven Methodology

Phase I:Portfolio Rationalization

Phase II: Data Centerand System Optimization

Phase III: Shared Services/Cloud Computing

Str

ate

gic

Bu

sin

es

sa

nd

IT

Ali

gn

me

nt

Aligned

Architecture

Vision

Case Study: State Government

Shared Services and Cloud Computing Scope: Creation of a New Business Model

• Reduce IT costs Outsource IT

• Chargeback model for IT services

• Standardize shared services offerings

• Thorough deployment of ITIL

Business Goals

• Agency autonomy and independence

• Budget constrained IT staffing

• Over populated data centers

• Many legacy, redundant services

• Lack of standards and methodology

Challenges

IT OPTIMIZATION

Rationalize OptimizeIT-as-a-Business

Source: MIT Sloan Center for Information Systems Research

Future State Choices

State Cloud Service Provider

Business ModelS

UP

PLY

DE

MA

ND

• Agencies

• Vendors

• System Integrators

• Auditors

• Agencies (Federal, State, and/or Local)

• K-12

• Citizens

• Cloud Consumer Model

• IT Abstraction

• Shared Services

• Value-added Svcs

• Predictable Cost

• Elastic Computing

• (ITSM ) Best Practices

• IT Governance

• Security & Privacy

• Availability and Continuity

Revenue through Cost Recovery model per OMB A-87

• Customer Acquisition, Onboarding & Provisioning

• Value-added Services

• Operational Support (Change, Release, & Configuration Mgmt)

• Services Portfolio Mgmt

• Business Continuity

• Metering & Chargeback

• IT Ops Staff

• Service Desk

• Mktg, Sales, Finance

• Cloud Data Center(s)

• Partners (SI, ISV)

Value-driven cost structureper OMB A-87

• Private Cloud

• Remote access

• Partner extranet

• Customer Relationship Mgmt

• Communities

• Tech Support / Service Desk

• Enablement programs

Oracle Architecture Development ProcessArchitecture Vision

Oracle Architecture

Development Process

Chargeback

Provisioning

Service

Request

User

Infrastructure-as-a-Service

Database-as-a-Service

FMW-as-a-Service

Ora

cle

Vir

tua

l A

ss

em

bly

Bu

ild

er

Oracle Enterprise Manager and Ops Center

Exadata

OVM

COTS

App

App Svr

DB

OVM

COTS

App

App Svr

DB

OVM

COTS

App

App Svr

DB

OVM

DB DB DB

OVM

App

App Svr

OVM

App

App Svr

App

App Svr

Load Balancer

OVM

COTS

App

App Svr

OVM

COTS

App

App Svr

OVM

DB

Billing and Revenue Management

IT Service Management

Oracle Architecture

Development Process

Oracle Architecture Development ProcessFuture State

Oracle Architecture

Development Process

Oracle Architecture Development ProcessBusiness Case: Enabling A Simple Service Catalog

Block Size Core Memory Storage Workloads Function

Small 3 4G 1TB OLTP Dev

Medium 6 8G 2TB ERP, HRMS Dev, Test,

Prod

Large 12 16G 4TB Data

Warehouse

Prod

Standardized Per Use Service

Additional Per Use Services

Upgrade Storage I/O Storage

Option 1 XX-YY GB 2 TB

Option 2 YY-ZZ GB 4 TB

Option 3 ZZ-AA GB 8 TB

Oracle Architecture

Development Process

Oracle Architecture Development ProcessBusiness Case: Compelling Ongoing Economics

Offered Internal Chargeback Option

Cost Component TCO %Business

as Usual

DBs on

Blades

11g on DB

Cloud

Machine

Database License 10% $10 $9 $8

Storage 22% $22 $22 $7

Network (HW+Pipe) 13% $13 $13 $3

Environmental 10% $10 $6 $1

Staffing 40% $40 $30 $20

Overhead 5% $5 $5 $5

Total Cost 100% $100 $84 $44

Attract New Customers with the Best Prices!vs.

1 Terremark Investor Relations Presentation

1

IT Optimization: EA ProcessRelying on a Proven Methodology

Phase I:Portfolio Rationalization

Phase II: Data Centerand System Optimization

Phase III: Shared Services/Cloud Computing

Str

ate

gic

Bu

sin

es

sa

nd

IT

Ali

gn

me

nt

Aligned

Architecture

Vision

How Oracle Can HelpLeverage Oracle’s Portfolio of EA Assets

People

Certified Architects,Experienced Advisors

Process

Practical Approach,Proven Methodology

Portfolio

Best Practices,Proven EA Artifacts

Next StepsCome Talk to Us

• Meet our Enterprise Architects

• Use our EA & Architecture Artifacts

– Library of EA Resources

– All things Oracle & EA, www.oracle.com/EA

• Learn about Oracle EA Services– Description of EA Services

– Articles about Oracle’s EA Experiences

Q&A