PMINJ Chapter May 5 th Symposium Best Practices to Manage Disruptive Technologies
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1 PMINJ Chapter May 5 th Symposium 2014 Best Practices to Manage Disruptive Technologies Steve Carter The 451Group 451 Research, LLC
2 Best Practices to Manage Disruptive Technologies Steve Carter VP 451 Research, LLC
3 Project Management Demands for IT Industry Absolute NEED for PMO dedicated to IT organization Disruptive technologies have radically DECREASED speed to market timelines for innovation deployments Innovation lifecycle has also radically DECREASED. o Push something out and then we will have time to get it right later? o Missing your product market requirements for REV. 1 innovation initiatives can lead to a DOA solution Global economic downturn of 2008 has moved ROI and associated project management best practices up the decision priority stack 3
4 Industry Trends Hybrid Solutions Mix of brick/mortar, COLO and modular o Drivers: Lower per deployment CAPEX spends based upon ability to add capacity in smaller chunks Financial industry was a follower of IT optimization trends Utilizing compaction outcomes of IT optimization to enable effective multiple data center active/active availability scenarios MTDC market has been overbuilt since 2008 financial crisis. o Strong downward price pressure o Over last two years, general 20% price reduction year/year. 4
5 Disruptive Technology Drivers Average Enterprise Useable Data Storage Capacity Increased 53% in From 4.9 PB to 7.6 PB Source 451 Research Source: Cisco Systems 5
6 Impact of Stranded Capacities and $ How do you currently deal with variable resource requirements due to randomness, time of day, and/or seasonal demand? Successful PM must incorporate Modeling & Analysis to Save $$ External Cloud 2% No Variability 13% Leverage Disaster Recovery 1% Outsource 2% Hire Contractors 1% Other 5% Capacity Mgmt Tools Virtualization Load Balancing 26% Overprovision 61% 6
7 Digital Infrastructure Roadmap Answering the WHAT? WHY? and HOW? questions CAPEX Transformation Planning Data Center Consolidation OPEX Impact of IT Growth Third Party Return on Investment Efficiency Cost of Stranded Capacities Disaster Recovery Optimization Planning Modular Design Everything as a Service Availability 7
8 Business Demand Alignment to Digital Infrastructure Application Rationalization Business Demands Tiering Function Growth Service Catalog User Requirements Business Cycles M & A Application Catalog Consumption and Allocation Model Business Demand Units Defined Availability Profiles Performance Profiles Application Stacks Application Technology Model Technology Infrastructure Physical Refresh Logical Ratios Utilization Capability to Capacity Model Technology Stacks Facility Stacks Orchestration Facility Infrastructure Owned/Opera ted Third Party Hybrid with Cloud Cost Model $ / kw physical $ / instance cloud Decision criteria 8
9 Journey of 5000 Servers Millions Pre Post 2012 Space SF Physical Servers Power kw $70 $60 $50 $40 $30 Improving with Virtualization but Still $Millions $ TIER 3 Data Center $ TIER 3 Data Center $20 $10 $0 Pre Post
10 Metrics of Digital Infrastructure Capacity Planning $ and Decisions Traditional Own IT Owned/Outsourced Facility $ / Watt Orchestration of Business and Technology Demands Required Public Cloud Outsourced IT and Facility No view of kw $ / Instance Client Example: Business Demand Metrics Tech Cycles Business Cycles Capacity Utilization and Requirements 10
11 Metrics of Traditional vs. Cloud Single case study using our current cost comparison methodologies Large enterprise client with data centers based in US West Goal: compare traditional internal basic IT infrastructure cost across platform types, power consumption and workload projections Secondary goal: compare internal analysis to EC2. SLA IS different between solutions! Type $/kw $/Instance RU s Required for 256 VM s HPDL380 $232 $ HPC7000 $236 $ EC2 On Demand NA $1,594 NA EC2 Reserved Heavy Utilization NA $1,029 NA Includes data center infrastructure costs (IaaS/compute as a service - baseline) Does not include network, data storage and application costs Assumption: $200 per kw IT load annual internal data center facilities costs Assumption: 3 Year Life of Hardware/Software Costs (3 Year Cost Model) 11
12 Digital Infrastructure Dashboard Metrics That Matter must be set up, facilitated and tracked by the PM & Project Team 1. Monitoring 2. Management 3. Modeling Monitoring Compute: CPU, Memory & I/O Storage: Raw vs. Provisioned, Provisioned vs. Utilized Network: Bandwidth, Latency, Utilization, Errors Management Capacity vs. Utilization Availability & reliability Reporting, Alerting & Tracking Modeling On premise vs. Off Premise DIRECT Comparisons Future State Transformation (what if scenarios) Align DI Requirements to Dynamic Business Demands 12
13 Digital Infrastructure Efficiency Metrics 13
14 Cost per Transaction with Facility Cost vs. Without 7,000 Transactions Per DI Dollar with Facilities MEP 6,000 5,000 4,000 3,000 2,000 1, Biz Trans per Month per DI Dollar Biz Trans per Month per DI Dollar w/mep 14
15 Digital Infrastructure Analysis Case Study Financial Client
16 Case Study Introduction Client Roadmap was to have Active/Active environments in Mission Critical Applications Initial Analysis Requirements 1,100kW of IT load spread over 12,000 SF of Raised Floor ~$40-$80M Capital Cost Client wanted to validate the capacity assumptions with a neutral party, so engaged with 451 Advisors 16
17 Project Overview Client Requirements Understanding Data Center A Current State of Digital Infrastructure Define the Future State Scenarios Create Guidelines for Historical and Future Growth Assumptions Results by Scenario: 1. Data Center A Baseline Model 2. Data Center A Cloud Optimization Model 3. Data Center B Full Replication Build Model 4. Data Center B Mission Critical Replication Recommendations/Comments Next Steps Peer Benchmarking 17
18 Data Center A Future Growth Model (Optimized State) 18
19 Conclusion Transition Initial Analysis Requirements 1,100kW of IT load spread over 12,000 ft 2 of Raised Floor - ~$40-$80M Capital Cost Refined Requirements (451 Advisors) 400kW of IT load spread over 3,500 ft 2 of Raised Floor - $14-$21M Capital Cost Over provisioned facility projections 75% Lower on IT KW projections 80% Lower on ft 2 projections 65% - 75% Day 1 Capital Savings 19
20 Digital Infrastructure Roadmap Case Study Client Case Study Secondary (DR) Data Center Demand Analysis
21 Options Evaluated Stay in ADC Drop Ship to new site ADC & Drop Ship in the Cloud Brownfield Greenfield Managed Private Cloud Space and power In ADC cannot accommodate entire Drop Ship List Requires alternative site MEP upgrade (possibly expanded space) Move Drop Ship to the Cloud Incur a nominal monthly fee for test/dev and storage Utilize existing facility; would be about the same as Greenfield (may be less if facilities space is available & demolition costs are minimal) Alternate Client site may not be viable for full ADC build out (not enough space) Build new structure on Client Campus future cost savings long-term Risk two data centers in close proximity DRaaS for Most of ADC; No HA support Would not support all ADC technology (e.g., Tape) New COLLO Price/evaluate other City area Collocation facilities 21
22 Model Results: ADC Power In Recovery Mode (with Drop Ship) Capacity Estimated Production Load with Increased CPU Utilization Storage Server Network Current
23 Ten Year CAPEX and OPEX Cost Estimates $25,000,000 Ten Year Cumulative Approximation $20,000,000 $15,000,000 $10,000,000 ADC + Warrendale ADC + Cloud Greenfield Managed Private Cloud Colo $5,000,000 $ Notes: ADC + new site includes $500K upgrade & NO increase in OPEX Managed Private Cloud is DR Only Greenfield & COLO includes migration costs 23
24 Deciphering the Digital Infrastructure Journey: An Agile, Automated, Adaptable Infrastructure 24
25 Effective Delivery & Demonstrated Value Metrics Identified Metrics Collected Metrics Correlated 25
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