operating the cloud to deliver business value · cloud computing will surpass the internet in...

Operating the Cloud to Deliver Business Value

Dr Liam KeatingIT Director, Intel APAC

Copyright © 2011, Intel Corporation. All rights reserved.

Benefits of Cloud – Fact or Fiction?

Simply put, cloud computing has the potential

to turn the economics of enterprise IT upside

down, offering key business advantages from a

capital and operations-related expense

perspective. eWeek, Nov 22, 2010

For a few years now, everything we’ve heard about cloud has mostly been hype.

It’ll be the next transformational leap for technology, the pundits said. It will cut

complexity, improve flexibility and make IT more strategic to business, the

vendors said. CIO Magazine, April 11, 2011

Amazon Outage Sparks Frustration,

Doubts About Cloud InfoBoom, April 26, 2011

“We are already well on the way with this initiative. The private cloud concept brings

with it the benefits of agility, accessibility, efficiency, and the capability to scale while

addressing the perceived risks in the public cloud environment today.” Dam Gerrard, CIO Avis Europe

3

Cloud Computing Will Surpass the

Internet in Importance. CIO Magazine, July 9, 2010

Microsoft BPOS Downtime

Illustrates the Risks of Cloud Computing”CIO Insight, May 16, 2011


Benefits of Cloud – Fact or Fiction?

Simply put, cloud computing has the potential

to turn the economics of enterprise IT upside

down, offering key business advantages from a

capital and operations-related expense

perspective. eWeek, Nov 22, 2010

For a few years now, everything we’ve heard about cloud has mostly been hype.

It’ll be the next transformational leap for technology, the pundits said. It will cut

complexity, improve flexibility and make IT more strategic to business, the

vendors said. CIO Magazine – April 11, 2011

“Amazon Outage Sparks Frustration,

Doubts About Cloud”, InfoBoom, April 26,

2011

We are already well on the way with this initiative. The private cloud concept brings

with it the benefits of agility, accessibility, efficiency, and the capability to scale while

addressing the perceived risks in the public cloud environment today. Dam Gerrard, CIO Avis Europe

4

Cloud Computing Will Surpass the

Internet in Importance. CIO

Magazine, July 9, 2010

Microsoft BPOS Downtime

Illustrates the Risks of Cloud

Computing”, CIO Insight, May 16,

2011

FACTThe benefits of cloud are real.

$17M in savings to date from our

internal cloud effort.


Intel IT Vital Statistics

Source: Information provided by Intel IT as of May 2010

5

6,300 IT employees56 sites, 25 regions

>90,000 Intel employees143 sites, 62 regions

91 Data Centers~75,000 servers, 458,000 square feet

>105,000 Devices>90K PCs (80%+ mobile), >14,000 Handhelds

http://www.infoworld.com/green15


Intel Data Center Profile

Cloud is Key Strategy for Intel IT

Expanded HPC Solutions

Enterprise Private Cloud

Factory Automation



DesignDOfficeOManufacturingMEnterpriseEServicesS

6


Future Goals¹

(SaaS +)

(IaaS, SaaS, PaaS)

~75% virtualization

Current (2011)

(IaaS, SaaS)

(SaaS)

> 50% virtualization

Intel’s Private Cloud Journey

7

1 Intel IT future state goals – subject to change – as of June 2011

Past (2009)

Design

Grid

~12% virtualization

Mid-Way through our Journey: Learned A Lot, Challenges Ahead

Evolving Characteristics of Intel’s Office / Enterprise Computing Environment

Traditional Office &

Enterprise

DesignGrid

Public

Private O/E/S

Public


Internal Cloud Profile

VMs by Environment

42%

58%

Production

Non-Production

60%

40%

Self Service Portal

Manual

Application Type % Total Applications

Engineering 5%Sales/Marketing 19%ERP 13%HR/Finance/Legal 22%Ops/Security/Manageability

26%

Productivity/Colab 15%

8

Applications on Internal Cloud

VM Requests by Source


Business Benefits ofIntel’s Private Cloud

• Immediate Provisioning

• Higher Responsiveness

• Lower Business Costs

• Flexible Configurations

• Secured Infrastructure

Improving the Velocity and Availability of IT Services

9


EfficiencyVelocity

Capacity

Quality

Measuring Intel IT Impact Through New Operational Framework

10


Intel IT Operational Framework Applied to Cloud Computing

Reduced provisioning time from 90 days to 3 hours – now on the way to minutesVelocity

Efficiency

Capacity

Quality

Server consolidation at a 20:1 ratio

Shift from capacity planning to demand forecast model

Standard configurations improved consistency and enabled automation

11


Best Practice Lessons from Implementing Intel IT’s Cloud

Cloud TerminologyUnderstand terminology and communicate

Leadership SupportClear business goals. Updated policy.

IT-Business Partnerships

Business process changes are pervasive

Set Short Term Priorities

Pervasive virtualization + faster provisioning

Manage With Data

P2V ROI, measured services, BI collection, Server Sizing …

12


Current Challenges

Asset Management and Utilization

Demand Forecasting

and Capacity Planning

IT Workforce Transformation

13


Asset Management & Utilization

14

Be Cognizant of Performance Saturation • As asset utilization increases, service performance risks constraints,

availability and SLA can be risked

An Integrated Management View is Critical • The performance bottleneck may not be where you think

• Requires improved metric visibility across all resources

Understand Degrees of Utilization • Customer Allocation view is different from customer usage• Our goal is 80% effective asset utilization


Integrated Reporting Drives Better Decision-Making

15

UtilizationReports 1

Has Driven Incremental IT Investments in Storage (SSDs) and Network (10GbE) upgrades

Holistic Business Intelligence Systems for IT Operations is Vital

App 1 App 2 App 3

1 Intel IT internal Reports as of June 9, 2011

22%

0%

100%

36%

43%

38%

89%100%

51% 49%

81%


Capacity Planning is Shifting to Demand Forecasting

16

Challenge: Quicker Provisioning Requires Better Visibility into Future Demand

Old Way: Built to Order. Customer asked for infrastructure, we reviewed, approved, ordered, deployed, tested, then delivered

New Way: On Demand Self-Service requires having capacity available anticipating demand and consumption

Time to service =

3 months

Time to service =

3 hours(soon to be minutes)


IT Workforce Transition

17

DB Admin ERP

Storage

Server

Network

Security

Future:Before:

New IT Team Incorporates Breadth and Depth of Service

Collaborative Operations Team with end to end view of cloud solution

New: Business Service Owner


WasManual

Provisioning

3 months

Automation Impacts Workforce Also

18

IT workforce focused on activities with highest value

IsAutomated Self-

Service Provisioning

3 hours


Intel IT Private Cloud Re-Cap

19

Align IT Strategy to Business Needs

Cloud Transition is a Multi-Year Journey

Business Benefit will Generate Value


Resources for You

20

• Learn more about IT@IntelBest Practices

www.intel.com/it

Over 250 Global IT leaders representing over $100B in

annual IT spend

• Engage with ODCA

• Learn about newly released Usage Models

www.opendatacenteralliance.org


Thank You

More from Intel IT available at

www.intel.com/IT

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