EMC slideshow Belfast Event

1© Copyright 2013 EMC Corporation. All rights reserved.
LEADING AN IT TRANSFORMATION
Belfast, May 2015
1© Copyright 2015 EMC Corporation. All rights reserved.
Ian Fitzgerald
Director Cloud Platform Services, EMC IT

2© Copyright 2014 EMC Corporation. All rights reserved.© Copyright 2014 EMC Corporation. All rights reserved.
Why Transform to ITaaS?
THE BUSINESS’
VIEW OF IT
• Too SLOW
• Too EXPENSIVE
• Too RESTRICTIVE
• To BE AVOIDED!
THE CFO’S
VIEW OF IT
• An expense to cut
• Run rate budgeting
• Regulated monopoly
• “keep the lights on”
Complex & fragile
legacy
Losing control
100% reactive
THE CIO’S
PREDICAMENT
ARE WE RELEVANT?

IT At the speed of business
MEASURE SUCCESS IN
YEARS
TRADITIONAL
IT TEAM
MEASURE SUCCESS IN
WEEKS
ENTREPRENURIAL
BUSINESS UNITS

EMC IT: THEN AND NOW
* Infrastructure OPEX savings were $212M, $146M of which were reinvested in new application capabilities, $66M
was returned to the CFO
2004 2015
EMC Revenue $8.23B $24.5B
EMC Employees 24,000 65,000%
Compute Infrastructure 2,000 physical 12,000 VMs
1,000 ESX
6,000 VDI
150 ESX
Storage Infrastructure 1 PB 22 PB raw
8 PB protection
IT Environments 5 data centers 7 data centers
2 vCA sites
95%
VIRTUALIZED
Days To Provision App Environment 90+ ~1
% IT Budget Spent On “Lights On” 80% 58%
% IT Budget Consumption-Funded 30% 89%
$157M CAPEX
AVOIDANCE
$212M INFRA.
OPEX SAVINGS

EMC IT’s Cloud Vision
Traditional Apps SaaS“Next-Gen” Cloud Apps
Private
Cloud
Public
Cloud
Integration and Federation
Virtualization
Information
Security
Virtual Clients

OUR JOURNEY IN THREE STAGES
Cloud
Infrastructure
1
“ruthless standardization”
be cost-
competitive
$157M
CAPEX
AVOIDANCE
$212M
INFRA.
OPEX SAVINGS
FLAT
INFRA.
LABOR COSTS

Cloud
Infrastructure
1
be cost-
competitive
ITaaS
Operating Model
2
“cultural revolution”
be agile and deliver value
89% IT OPEX
CONSUMPTION-
FUNDED
PROVISIONING
TIME REDUCED FROM
90 DAYS TO 1 DAY
MAINTENANCE SPEND
REDUCED FROM
80% TO 58%

Cloud
Infrastructure
1
be cost-competitive
ITaaS
Operating Model
2
“cultural revolution”
be agile and deliver value
App.
Transformation3
“move up the value stack”
deliver competitive
advantage
STRATEGIC
RELEVANCE

Filters For Deciding Which Workloads Go Where
Private Cloud? Or Public Cloud?
Economics favor
public cloud for
these workloads
Economics favor
private cloud
Economic Suitability Functional Suitability
Suitable
public cloud
exists for these
workloads
Suitable public
cloud offer
does not exist
Risk concerns
suggest public
cloud for these
workloads
Risk dictates
private cloud
Risk Suitability
Economics
dictate legacy
architecture
CRM
Supply Chain
ERP
Application
Development
Analytics
Email
Collaboration
Portal
Outcomes
• Defined enterprise cloud strategy
• Workloads placed in optimal
cloud
• Business case and roadmap
• Cloud reference architecture

Cloud Infrastructure Journey
50%
15%
Virtualize Mission
Critical Applications
%VIRTUALIZED
90%
70%
2004-08 2009-11 2012+
IT-Owned Applications
35%
Big Bets
 Multi-tenancy
 Networked Storage
 Server Virtualization
 x86 Chip set
 Linux & Windows
 De-duplicated Disk Backup

Business Case For Infrastructure Supporting New App Projects
Step 1: “Stop The Bleeding”
50%
15%
Business Agility
Virtualize Mission
%VIRTUALIZED
90%
70%
2004-08 2009-11 2012+
IT-Owned Applications
35%
• Created virtualized, tiered multi-tenant
hosting platform – Vblock
• Instituted “virtual first” policy
• Created Solution Architecture governance
“on-ramp” to the multi-tenant platform
• Guaranteed RPO, RTO, Performance and
Availability service levels
• Provisioned free-of-charge (initially)

Business Case To Expedite Legacy Infrastructure Clean-up
Step 2: “Heal The Patient”
50%
15%
Business Agility
Virtualize Mission
Critical ApplicationsIT-Owned Applications
90%
2004-08 2009-11 2012+
35%
75%
%VIRTUALIZED
• “Swept the Floor”, moving all apps to
new hosting platform
• Leveraged disk based de-duplication for
all backup
• Implemented centralized management
and monitoring
• Began metering consumption by app
environment and “showing back”

EMC IT INFRASTRUCTURE EVOLUTION
• Same delivery
• Higher customer sat
• Higher utilization rates
Well Run Hybrid Cloud
All infrastructure is virtualized and delivered as a
service. Policy driven automation will manage
configuration and provisioning, consumable by APIs.
Benefits
• Services based
– Standard Offerings
– Pay per use
2012
Cloud
2014+
• Service catalogue
- Self & Auto IT
• Service & utility focused
organization
• Cost transparency
Automation
EHC
• Software Defines
Storage
• Virtual Networking &
Security
• Full charge back
• Integrated Network
team
• Formal Automation team
ITaaS

 Socialize With Internal Customers
And Gain Executive Buy-In
 Standardize For Efficiency And
Simplify For Savings
 Define New Measures And Baseline
Performance
 Embrace A Virtual-first Policy—And
Don’t Turn Back
 Invest In Skills And Education
Lessons Learned

Benefits Along The Journey
2004-08 2009-10 2011-2013+
IT PRODUCTION
Infrastructure Focus
BUSINESS PRODUCTION
Applications Focus
IT-AS-A-SERVICE
Business Focus
40%
30%
15%
Business Agility
Virtualize Mission
Development, Test,
And IT-Owned
Applications
%VIRTUALIZED
93%
10%
WE ARE HERE
70%
$11M
$6M
Data Center
Equipment Savings
55%
Of OS Images
Virtualized
60%
Of Mission Critical
Apps Virtualized
30M
Pounds of CO2
Reduced
OpEx Savings$12M
$74M
Data Center
Equipment
Savings
170%
Storage Admin
Productivity Up
34%
Increase in
Energy Efficiency
60M
Pounds of CO2
Reduced
Power and
Space
Savings
Savings &
Transparency
Time To Market
TCE
IT
Transformation
$$
t
C
Automation

A NEW IT BUSINESS
MODEL
Service Oriented
Market Driven
“P & L” Focused
Broker & Builder
ENABLING TECHNOLOGY
Private, Hybrid, Public
Clouds
End-To-End Automation
Financial Transparency
Self-Service Capabilities
DNA, SKILLS, ROLES &
ORGANIZATIONAL
ALIGNMENT
“Front Office” Capabilities
Service Accountabilities
Technology Breadth
Transforming IT With IT-As-A-Service

IT-As-A-Service = Agility
Optimizing IT Production
For Business
Consumption

ITaaS Operating Model Attributes
BROKERED
AS WELL AS BUILT
STANDARDIZED
SERVICES
SELF-
PROVISIONED
CONSUMPTION
FUNDED
AUTOMATED
D E P L O Y M E N T
TRANSPARENT
PRICING & SERVICE LEVELS
BUILT-IN
SECURITY & GRC
ENTREPRENEURIAL
CULTURE

THINGS YOU
STOP
THINGS THAT
CHANGE
NEW
ACTIVITY
What’s Different in ITaaS ?
Manual Service Requests
Manual Provisioning
Writing and Updating
Scripts
System Integration and
Configuration
Bolting Security On
Service Catalog
Self-Provisioning
Programmatic
Redeployment of Assets
Centralized Monitoring
Comprehensive Capacity
Planning
Virtualize Everything
Workload Analysis
Policy Engineering
Platform Engineering
Service Integrator
Service Broker
Manage Service Line P&L
Market Research
Consultative Selling

2004-08 2009-11 2012-13
Infrastructure Focus Application Focus Operations Focus
Percentage of IT
Spend On New
Capabilities versus
Keeping the Lights On
Approximate Time
To Provision
Application
Environments
42%
40%
20%
21%
23%
25%
20%
~1
Day
7
Days
40
Days
60
Days
80
Days
90
Days
30
Days
Cost & Agility Trends

2004-08 2009-10 2011-2014+
Productivity Benefits Of Our Journey
O/S Images TB Storage
Infrastructure
Labor Expense
• 12PB Storage Growth
• 8000 O/S Image Growth
• ~Flat Headcount Expense

VALUE-BASED
DECISIONS
 Drives Value-Based
Discussions With Business
Units
 Supports Cost Reduction By
Aligning Support Tiers
To Business Value
 Enables Application
Rationalization & Right-Sizing
Of Existing Tools
 Reduces Risks And Run-time
Costs For Shadow IT
AUTOMATION AND
STANDARDIZATION
 Provides Productivity Gains By
Implementing Service
Management
 Increases Efficiency By
Offering Standardized
Applications
 Eliminates Waste In IT
Infrastructure Spending
 Unleashes A More Agile IT
Delivery Model
Financial Transparency Benefits
LESSONS
LEARNED
 Analyze Cost Vs. Price
 Benchmark To External Providers
 Don’t Underestimate Company
Culture
 Challenge Status Quo When
Evaluating Real-Time Cost
 Reassess Legacy Cost Levers
 Evolve The DNA Of IT
 Build Consensus

IT Funding Moving From Flat Tax To
Metered Chargeback
OLD WAY
All Units Charged Flat Tax, Little Transparency
Separate IT Silos For Each Unit
Inflexible, Inefficient IT
NEW WAY
All Units Charged Pay-As-You-Go, Transparency
Pooled IT Resources
Dynamic, Agile, Efficient
PRIVATE CLOUD

Preparing Our People
Creating Incentives
To Be Multi-Skilled
New Job Families & Tracks
Cloud Certifications
Fostering Collaboration
Bridge The Silos
Facilitate OJT
Talking Openly
About Cloud
It’s A Sea-Change For IT
Opens Up Huge Opportunities

An Organizational Evolution Is Underway
Imperative
Business And Financial
Management
IT Service Management
New Focus Area
Cloud Service Operations Management
Platform-
As-A-Service
User Interface-
As-A-Service
Enterprise
Applications-
As-A-Service
Infrastructure-
As-A-Service
New Roles Emerging
Cloud Architect, Cloud Admin
Cloud Capacity Planner
IT Automation Engineer
Data Scientist
Virtual Infrastructure Management
Virtual Infrastructure Architecture
Traditional Roles Are Still
Essential
Storage
Backup &
Recovery
SecuritySystems

Organizational Model - Contemporary IT
ON-DEMAND SERVICES
B U S I N E S S D E M A N D
DIGITIZATION & AUTOMATION
CLOUD
PLATFORMS
SECURITY BIG DATA
S E R V I C E S
3rd
PLATFORM
A P P D E V
E N T E R P R I S E
A P P S SAAS
C L I E N T E X P E R I E N C E
CONSUMER
SERVICES
SERVICE PORTFOLIO MANAGEMENT
CONSULTATION. IDEATION. INNOVATION.

EMC’s IT Transformation Summary
IT INVESTMENTS
VS. LIGHTS ON
FROM
20%TO
42%IN 4 YEARS
O V E R A L L I T
CHARGEBACK
FROM 54%TO 89%
Note: Based on EMC IT Internal Estimates
O S I M A G E S
VIRTUALIZED
93% ~1D A Y T O
PROVISION
76%IN 4 YEARS
E N T E R P R I S E
VS. FUNCTIONAL
P R O J E C T S
FROM
40%TO

Reflecting on Our Experiences
• Technology is important, but only as a
means to the end.
• Real transformation is a test of
leadership and change management
acumen.
• Financial incentives change behavior.
• Demonstrating agility and empowering
clients changes the IT brand.
• It helps a lot to have experienced
assistance.

EMC IT PROVEN
For more information about EMC IT Proven:
www.emc.com/emcitproven

Implementing Your
Cloud Strategy
Through Best
Practice
Methodologies
Thank You
Email: niinfo@sureskills.com

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