A CTO Perspective Cloud 2013: Big, Fast, Flexible. Julius Heriban Director of Global Enterprise Architecture & Cloud Transformation, T-Systems

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1 A CTO Perspective Cloud 2013: Big, Fast, Flexible. Julius Heriban Director of Global Enterprise Architecture & Cloud Transformation, T-Systems

2 The Pace of Change in the Business is Accelerating Time to 50 million users: Radio 38 years Television 13 years Internet 4 years Facebook 1,096 days Google+ 88 days Did not exist 10 years ago, and today have millions of subscribers and offer high-quality services at no-charge Are an integral part of the current teenagers social sphere. replaced by short messaging. 1

3 Innovation and Agility are Requirements for the Survival of the Business Source:(Derek(Thompson,(senior(editor(at(The(Atlan8c( 2

4 IT does not Enable the Business, it is the Business Global executives believe innovation is extremely important to their growth strategies 84% 94% Are unsatisfied with their innovation performance CMOs will spend more on IT than CIOs Cloud = a subscription to innovation and agility!!! Source: 3

5 More and More Work is Going to the Cloud Number of virtual machines by location (globally, millions) XX% CAGR On-premise and legacy outsourcing ( Private Cloud ) %/ year 80 Other 10% Public & Hybrid Cloud %/ year 40 vcloud +130%/ year 20% 70% AWS +80%/ year Fastest-ramping offering in T-Systems history! 4

6 Moving Enterprise Apps to the Cloud Is Inevitable CIOs anticipate significant infrastructure and application moves during the next 4 years When do you estimate that your organization will support more than half of your transactions on a cloud infrastructure using a software-as-a-service model? ¾ of CIOs expect more than half of their transactions will be processed in the cloud by end of decade 43% 31% 23% 3% and beyond Never Source: Gartner 5

7 The CIO Journey: Phases of IT Maturity Reactive Proactive Innovative Packaged Applications Flat IT Tax, Project-centric Dedicated Vertical Stacks Respond to Business Request Service Catalog Cost & Use Metrics Dynamic Resource Pools Increase IT Agility and Efficiency New Business Applications Pay-for-Use Automated Infrastructure Differentiate the Business / Drive Effectiveness 6

8 Cloud Transformation Focus Empowered, Secure Mobile Workforce Faster Time-to-Market for Modern Applications A More Flexible, Scalable, Efficient Infrastructure for All Apps Existing Datacenters Cloud Services 7

9 Our Focus PCs Access Mobile Users Existing Apps Infrastructure Applications New Apps & Big Data Servers, Storage, Networking Servers Infrastructure Infrastructure Clouds 8

10 Automotive production establishes Simplified best practices for ICT services production Highly modular production platforms with high parts commonality make it possible to bring new models to market quickly (no reinventing of the wheel). Even models produced in small volume can be profitable Production capacity is pooled across various countries, which can produce identical cars. Output can be shifted flexibly between sites End-to-end automation in the front-office, allows customers to configure and price their vehicle online End-to-end automation in the back-office, ensures high labor productivity and high flexibility Innovation in the vendor ecosystem is embraced extensively, allowing auto OEMs to focus on customer intimacy and integration Security is used as a differentiator notably for the German OEMs One design authority aligns the different platforms while giving room for innovation to occur

11 Cloud Target Architecture T-Systems. T-Systems Cloud Portal Enterprise AppStore Dynamic Services for Business Apps (AppCom/ DCS 3.0) Dynamic Services for Infrastructure Central & Virtualized Classic Dynamic Services for Infrastructure (VMware vcloud Datacenter) Data Cloud (Storage & Big Data Services from the Cloud) Dynamic Services for Collaboration & DSS (Microsoft) HCS/ Comms VDI Services Physical Classic Services Global Network Backbone (Software Defined Networking) Middleware Services (Cloud DB, IDM, Queuing, ) Computing Services (Shared Common Compute Middleware and Storage Services Infrastructure Services) Dynamic Cloud Platform 10

12 Dynamic Services for Infrastructure with VMware vcloud Datacenter Services At customer site Customer vsphere Deployme nt scenarios vcloud vcloud DC Connector Service! Rapid extension of in-house IT resources! New applications At T-Systems T-Systems T-Systems T-Systems! Development and test environments! Production environment applications (tier 2-3)! Virtual servers can be transferred seamlessly between the customer s and T- Systems data centers! Compatible with existing applications! Standardized around the world! End-to-end SLAs! Hybrid clouds deliver the best of both worlds: Customer data center and T-Systems data center

13 Past, Present Past Present + Enterprise storage VLAN networks Firewall, load-balancer $10, weeks $1,800 $300 5 days, 2 minutes 2 minutes IDS, security, monitoring Availability 12

14 and Future Future Software-Defined Datacenter Services 5 days, 2 minutes 3 minutes All infrastructure is virtualized and delivered as a service, and the control of this datacenter is entirely automated by software. Standardized. Holistic. Adaptive. Automated. Resilient. 13

15 Our Discussion Today PCs Access Mobile Users Existing Apps Applications Applications New Apps & Big Data Servers Existing Apps Infrastructure New Apps & Clouds Big Data 14

16 In the Cloud Era, Applications Have Different Requirements than in the Past Elastic Scalability! We can have 10,000 online customers on a normal day, but 10 million on Mother s Day! How do I architect to support seasonal peak usage and sudden spikes in demand? High-Speed Data Access! I have applications and users that must have real-time access to data, often from mobile devices! How do I eliminate data processing latencies and accelerate web page response time? Global Data Management! My business requires a single, real-time view of distributed transactions that must rely on data from multiple sources! How do I manage applications that are distributed across datacenters and the cloud? 15

17 Application Development & Mgt. Needs to Evolve Yesterday! Waterfall development! Weeks to provision! Static resources! Limited change windows! $100k+ of compute! Limited number of users, in business hours Web Server App Server Database End Users Internet/Firewall Lan/network Web front-end Services Middleware Today! Agile development! Continuous deployment! Dynamic resourcing! Spans across data centers and clouds! Low compute costs! Millions of users with 24x7 access Database Private Web Server Public In Memory Cache App App Server Server Message Q Public 16

18 Disruptions Occurring in the Application Platform How We Modernize Applications Develop using frameworks not languages, transition from app servers to PaaS agile apps decoupled from middleware Optimized to run on cloud IaaS provision in minutes Use cloud-friendly messaging protocols enable flexible app integration Store app state in elastic data cache maximize app scalability Access data via in-memory technologies, leveraging database as a service maximize data scalability 17

19 A Definition of Big Data Not all criteria have to be met simultaneously 12 Terabyte of tweets per day 5 million trades per second Video feeds from hundreds of security cameras Volume V Often petabytes not just terabytes of data Volume Velocity Velocity Data generated rapidly, often constant streams near real-time Variety Variety Unstructured data, e.g., text, images, videos, M2M 350 billion meter readings per year 500 million connection data per day 80 % of data growth is from pictures, videos, documents etc.

20 Big Data is about new application landscapes New apps taking advantage of Big Data! Rapid app development! Bridges back to legacy systems (wrapping with API, or data integration via federation or data transport) New data fabrics for a new IT! More data! More sources! More types! In ONE place! NOSQL databases Fast data! In real-time! In context (what, when, who, where)! Telemetry / sensor based (serving humans or machines, where you need to reason over data as it comes in RT) These 3 areas need to come together in a platform! Cloud abstraction (so it can run on any private or public cloud, no lock-in)! Automated deployment and monitoring (rolling upgrades, no patching) 19

21 Big data example use cases across industries Vertical Refine Explore Enrich Retail and Web! Log analysis/site optimization! Loyalty program optimization! Brand and sentiment analysis! Market basket analysis Telco! Customer profiling! Equipment failure prediction Government! Threat identification! Person of interest discovery Finance Energy! Risk modeling and fraud identification! Trade performance analytics! Smart grid: Production optimization! Surveillance and fraud detection! Customer risk analysis! Grid failure prevention! Smart meters! Dynamic pricing! Session and content optimization! Product recommendation! Location-based advertising! Cross-jurisdiction queries! Real-time, upsell, crosssales marketing offers! Individual power grid Manufacturing! Supply chain optimization! Customer churn analysis! Dynamic delivery! Replacement parts Healthcare! Electronic medical records (EMPI)! Clinical decision support! Clinical trials analysis! Insurance premium determination Source: Hortonworks Inc Confidential 20

22 Sneak Preview: Future T-Systems Big Data Offerings Project Vertical Solutions Utilities, Oil, Gas, Manufacturing Automotive Travel, Transport & Logistics More to qualify MDM Metering, Seismic Data Predictive Maintenance Car Diagnostics Tracking & Tracing Consulting & Implementation Big Data Readiness Assessment Proof of Concept Implementation Package Platform Big Data Platform Operations HADOOP Framework Other frameworks e.g., In-Memory, classic BI Developer Cloud

23 Example of security improvement for public SaaS: Encrypting data in real-time before it s sent to the Cloud! Encryption Preserves Data Formats and Operations! Keys Retained by Our Customers! No Impact on Usability! Unified Policies Across Clouds Deutsche Telekom is an investor in CipherCloud 22

24 Thank you. Questions? Mai 29, 2013

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