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The New Generation of IT Optimization and Consolidation Platforms
1. Oracle Enterprise
Oracle Enterprise Architecture
Architecture
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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
2. Agenda
• Results-Driven Enterprise Architecture
• EA Case Studies in IT Optimization
– Portfolio Rationalization
– Data Center Consolidation
– Shared Services / Cloud
•Q&A
3. Oracle and Enterprise Architecture
Results-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
6. Oracle Global Transformation
Rapid Acquisitions for a Best-in-Class Portfolio
(pending)
Middleware Platform Business Intelligence Identity & Access Performance Enterprise Content
and Management Management Management Management
Data Integration
(pending)
Operating Systems Systems Management Virtual Machines
Corporation –over 70 acquisitions since 2004 … and counting
Proprietary and Confidential 6
7. Oracle’s own Transformation
Globalized Operational Excellence
Key Business Drivers
Better Information, Improve
Lower Costs Increase Speed
Governance Customer Service
• Fewer data centers • Global information • Streamline change • Improved quality
visibility management and service
• Self service
processes • Global consistency • Fast integration of • One customer
of process, policy new acquisitions experience
• Labor & transaction & data
cost efficiencies
• Strong internal
• Shared service controls
centers
• Easier compliance
• Off-shoring
7
8. Oracle IT Consolidation EA Roadmap
“AS - IS” State “TO - BE” State
40 Data Centers 1 Global IT & Governance Model
Business 2 Data Centers + 1600 Staff
Architecture 2300+ Staff
Few standard business Standardized core business
processes processes
Data 63 Financial databases 1 Financial single global instance
Architecture
60 IT Support databases 1 IT Support single global
instance
40 Education registration 1 Education registration
Technical: systems system
Application &
Services 1 IT Support application
27 IT Support applications
Architecture
<100 applications – standardized
>1000 applications on E-Business Suite
Technical: 97 Email servers on 1 cluster of 2 Email servers
Infrastructure 120 databases and 4 databases
Architecture 501 Education servers 296 Education servers
32 IT Support servers, 600 2 IT Support servers, 30 test
test servers servers
9. Oracle’s Strategic Roadmap
1998 1998 - 2003 2006 - 2008 2008 - 2011
Current State Operational BI for All
Excellence Global CRM
Business Bus/IT Strategy Provide LOB and IT Simplification, Unify customer-facing Implement Global BI. Move
Country autonomy. Standardization & processes and customer from BI tools to pre-
Architecture packaged BI solutions for
Allow for customizations Consolidation data by implementing
sales, mktg, & financial
as demanded by BU’s. One Global IT Global CRM (GCM).
analytics accessing one Corp
Consolidate Data WH.
Centers & Bus Proc.
Bus Operating Replicated / Unified / Unified / Unified /
Model / EA Business Silos
Maturity
Standardized Optimized Core Dynamic Strategy
Technology
Business Maximize ROI at an $1B Cost Reduction Global Campaign to Better marketing, sales, and
LOB/Country level. Opportunity to Quote financial decision making
Objectives Foundation for Growth
ERP Standardization customer-facing process
Fix RevRec issues One Customer View
Foundation for BI
Application Architecture Customize & optimize Standardize on EBS Standardize on Siebel Create BI solutions using
local apps for BU needs CRM 8.0. Implement OBI EE/Hyperion with Siebel
Architecture Strategy Implement Global
GCM. Integrate BP for CRM, EBS Suite, and ODI.
Single Instance via
Implement Global BI using a
Apps Rationalization Opportunity (Siebel
phased approach.
CRM) to Quote (EBS)
Information Architecture Maintain data for BU Implement Global Info Provide one source of Provide a Global Corporate
needs. Rollup data to System via Info truth Customer DW that WH with data feeds from EBS
Architecture Strategy GSI, CRM GSI, and other
corporate level as Rationalization and DW integrates data from
sources.
required. centralization multiple sources
Technology Architecture Optimize platform for Move to shared Optimize platform in Optimize platform in Austin
individual applications & services model. Austin Data Center on Data Center on Linux and
Architecture Strategy RAC. Secure data.
Corporation – Proprietary and Confidential
data access via tuning Standardize H/W & Linux. 9
configurations S/W. Operationalize.
9
10. Architecture Center of Excellence
Delivers Consistent EA Execution
Program
Management
Strategic Management
Direction Reporting
• Across Projects
Architecture
COE • Across Technology
Architecture Strategic • Across Teams
& Expertise Needs
Project
Teams
11. Oracle Has Been Guiding EA
Oracle EA Solution Engagements
Enterprise Architecture Methods Business Architecture
• Refine EA role & responsibility • Refine capability models and metrics
• Organize overall accountability • Connect business model to EA vision
• Bridge business & IT strategy • Guide industry best practices
Information Architecture Applications Architecture
• Re-engineer core business processes • Rationalize portfolio & roadmaps
• Master data management • Guide services, EDA & BPM strategy
• Improve analytics & information quality • Applications evolution roadmap
Governance Architecture Technical Architecture
• Establish processes & metrics • Server consolidation (RAC-Exadata)
• Oversee governance operations • Enterprise security (DB-Identity)
• IT-as-a-Service (DB-aaS, PaaS, IaaS)
13. Roadmap to Strategic Advantage
Driven by Business Strategy and Operating Model
IT Optimization Business
Modularity
Optimized
Core
Standardized
Rapidly
Technology
innovate and
Standardize propagate for
core strategic
Business processes and impact
Silos
Build an
information
effective and
efficient IT
platform for
execution
Source: Copyright MIT Sloan Center for Information Systems Research. Enterprise Architecture As Strategy, Jeanne W. Ross
14. Phases of IT Optimization
IT Silos IT as a
Standardized Optimized
Business
Rationalized Virtual and Consolidated Shared Services /
Goals: IT Portfolio Infrastructure and Services Cloud Computing
Client 1
Point to Point Integrations Integration Layer
FBT PAY G
NTS
TRDS
Customs NTS A/c Portal Portal Portal Service Group A Service Group B
Data……. B2B B2B
Penalty PaaS IaaS
RRE
IPS Integrated A/C Refunds
RBA
Def CRM CRM CRM CRM Application Grid Application Grid
1
Excise Payments
ERP ERP ERP ERP
CCD Compliance
Staff
CR ECI ADD AWA ELS
Staff Data Grid Data Grid
Business
DDDR
Phone
TASS Product Product
IVR
PKI CDCC
CWMS GCI
WOC
Bus. Intel
Ref aterial
m
Customer Customer SaaS
BOA
B EP
Client BANK Staff
Remote
Staff
TAX
AGENTS Call Centres
Security Security Security Security Security Layer
• Peak load sized • Standardized • Pools of resources • IT as a “Service”
interfaces/systems
• Difficult to scale • Consolidated • Rapid provisioning
• Lower costs for license
• Difficult to change • Better productivity • Lower costs
and support
• Expensive to • Higher QoS • Faster project
• Better leverage
manage turnaround
of IT resources/skills • Improved IT agility
• Complex and risky • Greater focus
• Reduced IT project • Improved security
time/costs/risks on business
and management
16. IT Optimization: EA Process
Relying on a Proven Methodology
Phase I:
Aligned Portfolio Rationalization
Architecture
Vision
Phase II:
Data Center
and System Optimization
Strategic Business
and IT Alignment
Phase III:
Shared Services/
Cloud Computing
17. IT Optimization: EA Process
Relying on a Proven Methodology
Phase I:
Aligned Portfolio Rationalization
Architecture
Vision
Phase II:
Data Center
and System Optimization
Strategic Business
and IT Alignment
Phase III:
Shared Services/
Cloud Computing
18. Case Study: Financial Services
Portfolio Rationalization
Scope: Re-engineering the Core Information Architecture
Business Goals
• Reduce closing cycle down from 35-50
days
• Complete re-engineering of processes
• Ensure data reliability & governance
• Provide basis for agility and innovation
Challenges
• Hardcoded accounting rules
• Complex, heterogeneous portfolio
• No centralized data quality strategy
• Never rationalized portfolio
19. Kick Start EA Principles
Principle Description
Information Information needs to be managed and
as an Asset treated the same way as physical asset.
Value and Risk A classification of an information asset’s
Classification value and risk should be the foundation
on which its management and
governance is based.
Single Version Data should only be collected once
of Truth electronically within a single interface,
and shared across systems.
Minimum Quality Quality requirement needs to be set for
information assets.
Information has All business data needs to have an
Authoritative authoritative source.
Sources
Information Information needs to be secure
Security throughout its lifecycle.
Information Information is accessible for users to
Accessibility perform their functions.
Data Every data item has one person or role
Stewardship as ultimate custodian.
Metadata Driven Information architecture needs to be
metadata driven.
Measurement Quality of data will be measured.
for Quality
22. IT Optimization: EA Process
Relying on a Proven Methodology
Phase I:
Aligned Portfolio Rationalization
Architecture
Vision
Phase II:
Data Center
and System Optimization
Strategic Business
and IT Alignment
Phase III:
Shared Services/
Cloud Computing
23. Data Center and System Optimization
“Architecture” Guiding Principles
• Maximize clustering and virtualization
Resource Pools • Increase hardware utilization
• Standardize IT management processes
Consolidate • Reduce diversity across IT: capital expenses, skills
Enterprise • Reduce diversity, complexity, and risk
• Simplify regulatory compliance
Security
Enterprise • Increase automation for QoS and IT productivity
• Enable consistency and accountability
Management
24. Resource Pools Across Tiers
User Desktops
Portals & Web Servers • Business Demands Agility
– Deliver new resources quickly
Application Servers – Adjust as requirements change
Middleware • Multiple Resources Must Be
Aligned to Meet Service Levels
Database / Info Mgmt
– Performance and Availability
Hardware / Platform
• An Engineering Commitment
Disk / Storage – Optimal flexibility and value
Security
Management
26. Case Study: Financial Services
Data Center Optimization
Scope: Computing Platform Overhaul
Business Goals
• IT unresponsive to business competitive
needs
• Streamline business process automation
• Integrated analytics
• More leveraged IT spend
EXECUTIVE INSTRUCTIONS:
SAVE US MONEY NOW !
Challenges
• 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
27. Operational Recommendations
Evolve to a Comprehensive IT-as-a-Service Model
Infrastructure Infrastructure as a Service
Simplification
• Reduce storage requirements
Analytics • Maximize server utilization
Consolidation Analytics as a Service
• Rationalize analytics
• Standardize engines
Oracle Apps
Applications as a Service
as a Service
• Rationalize portfolio
• Standardize CRM and ERP
Security as a Service
Security and
Identity
• Standardize Identity Management
• Standardize Data Security
28. Data Center Transformation
Changing the Operational Model
Current State Future State
1,158 1,981 Exalogic 49
Servers
Middleware
Private
Infrastructure
Cloud Exalogic
Simplified
Database WebLogic Servers
Servers* Servers and Open Source
*Target 50% of Current Oracle Environment
Exadata 86
Database
Private
2,662 Terabytes Cloud Exadata
Storage
Servers
703
Enterprise Storage Terabytes Storage
(25% Annualized Growth Rate)
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%
31. IT Optimization: EA Process
Relying on a Proven Methodology
Phase I:
Aligned Portfolio Rationalization
Architecture
Vision
Phase II:
Data Center
and System Optimization
Strategic Business
and IT Alignment
Phase III:
Shared Services/
Cloud Computing
32. Case Study: State Government
Shared Services and Cloud Computing
Scope: Creation of a New Business Model
Future State Choices Business Goals
• Reduce IT costs Outsource IT
• Chargeback model for IT services
• Standardize shared services offerings
• Thorough deployment of ITIL
Challenges
• Agency autonomy and independence
• Budget constrained IT staffing
• Over populated data centers
IT OPTIMIZATION • Many legacy, redundant services
Rationalize Optimize
IT-as-a- • Lack of standards and methodology
Business
Source: MIT Sloan Center for Information Systems Research
33. State Cloud Service Provider
Business Model
• Customer Acquisition,
• Agencies Onboarding & • Cloud Consumer • Customer • Agencies
Provisioning Model Relationship Mgmt (Federal, State,
• Vendors and/or Local)
• Value-added Services • IT Abstraction • Communities
• System Integrators • Operational Support • K-12
(Change, Release, & • Shared Services • Tech Support /
• Auditors Service Desk • Citizens
Configuration Mgmt)
• Value-added Svcs
DEMAND
• Services Portfolio Mgmt • Enablement
SUPPLY
• Predictable Cost
• Business Continuity programs
• Elastic Computing
• Metering & Chargeback
• (ITSM ) Best
Practices
• IT Governance
• IT Ops Staff • Private Cloud
• Security & Privacy
• Service Desk • Remote access
• Availability and
• Mktg, Sales, Finance Continuity • Partner extranet
• Cloud Data Center(s)
• Partners (SI, ISV)
Value-driven cost structure Revenue through Cost Recovery model
per OMB A-87 per OMB A-87
35. Oracle Architecture Development Process
Future State
Load Balancer
App Svr App Svr
App App App Svr App Svr App Svr
Oracle Virtual Assembly Builder
COTS COTS App App App
App Svr App Svr App Svr
OVM OVM OVM OVM
User
App App App
FMW-as-a-Service
DB DB DB
Service
Chargeback DB DB DB DB
Request
COTS COTS COTS
OVM OVM
Provisioning OVM OVM OVM Database-as-a-Service
Infrastructure-as-a-Service Exadata
Oracle Enterprise Manager and Ops Center
Billing and Revenue Management
Oracle Architecture
Development Process
IT Service Management
36. Oracle Architecture Development Process
Business Case: Enabling A Simple Service Catalog
Standardized Per Use Service
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 Prod
Warehouse
Additional Per Use Services
Oracle Architecture
Upgrade Storage I/O Storage Development Process
Option 1 XX-YY GB 2 TB
Option 2 YY-ZZ GB 4 TB
Option 3 ZZ-AA GB 8 TB
37. Oracle Architecture Development Process
Business Case: Compelling Ongoing Economics
Offered Internal Chargeback Option
11g on DB
1 Business DBs on
Cost Component TCO % Cloud
as Usual Blades
Machine
Database License 10% $10 $9 $8
Storage 22% $22 $22 $7
Network (HW+Pipe) 13% $13 $13 $3
Environmental 10% $10 $6 $1
Oracle Architecture
Staffing 40% $40 $30 $20
Development Process
Overhead 5% $5 $5 $5
Total Cost 100% $100 $84 $44
vs.
Attract New Customers with the Best Prices!
1 Terremark Investor Relations Presentation
38. IT Optimization: EA Process
Relying on a Proven Methodology
Phase I:
Aligned Portfolio Rationalization
Architecture
Vision
Phase II:
Data Center
and System Optimization
Strategic Business
and IT Alignment
Phase III:
Shared Services/
Cloud Computing
39. How Oracle Can Help
Leverage Oracle’s Portfolio of EA Assets
People Process Portfolio
Certified Architects, Practical Approach, Best Practices,
Experienced Advisors Proven Methodology Proven EA Artifacts
40. Next Steps
Come 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