Transformation to a ITaaS Model & the Cloud

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1 Transformation to a ITaaS Model & the Cloud CIO Summit - Miami November, 2014 John Cullen Laddie Suk EMC Global Professional Services 1

2 Agenda Business Challenges Case Study EMC IT Transforming to IT-as-a-Service 2

3 Today s Business Challenges Cut Operational Costs & Legacy More Than Ever React Faster To Find New Growth 3

4 Enterprise IT Monopoly on IT Services is Eroding U S E O U T S I D E SERVICE PROVIDERS WHY? >50% 41% FASTER S E R V I C E D E L I V E R Y 41% T E C H N I C A L E XPERT ISE Source: IDG /CIO Big Picture Global Survey: Dual Perspective of ITaaS, June

5 As ALL Businesses Become More IT Intensive, There Are Real Business Reasons To Transform COST IT Budgets are flat or decreasing The desired Balance for Capex/Opex is shifting IT labor must be optimized AGILITY New Application Time To Market must be accelerated The Business needs IT to start with the business problem in mind, not with a technology solution 5

6 Agenda Business Challenges Case Study EMC IT Transforming to IT-as-a-Service 6

7 Hybrid 24,000 Applications Cloud Applications Social 60, TB 15% (Itaas) IT Silo s Collaboration Cloud Services Mobility IT Services IT 13PB 92% 90 X86 VMware converged compute network storage 1 80% Standardized + Virtualized 58% $66M Opex 7

8 Agenda Business Challenges Case Study EMC IT Transforming to IT-as-a-Service 8

9 Transforming IT Into a Service Broker Private Hybrid Public NEW IT BUSINESS MODEL Service Oriented Market Driven P & L Focused Broker & Builder NEW TECHNOLOGY ARCHITECTURE 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 9

10 It Begins With The User Portal Presentation layer that encapsulates the service catalog for consumption by clients New, beautiful interface to the service catalog Built with the (business) user s needs in mind Easy to use Unified, self-service interface for request, provisioning, management and reporting Available, scalable, secure 10

11 The Service Catalog Provides a unified view of the full range of services Services are bundles that matter to the user not expressions of an IT inventory IT has the ability to create / enforce technology standards behind the service bundles Services describe service cost, policies, SLAs, fulfilment process, provisioning interface, ownership IT can manage demand through role-based access control 11

12 EMC IT4ME PORTAL 12

13 Operating Model Transformation Traditional Business View Cloud Business Model Lengthy Process Many Approvals For Service Requests Self-Service Portal Public Cloud Private Cloud Service Catalog Cost Accounting By Project Financial Transparency By Service Levels 13

14 Orchestration Automate business workflows Orchestration automates disparate workflows into a seamless process Enables deep user transparency Can enable Push / Pull of workflow updates Facilitates provisioning, management and retirement of services. Example services: Virtual desktop refresh Collaboration environments Development sandbox environment Promotion of a new app / release from Dev to Test to Production New employee hire setup Security built into workflows Puts the consumer in charge by communicating workflow status 14

15 Operating Model Transformation Traditional Operations Labor-Intensive Multiple Management Tools Separate Teams Server Tools Storage Tools Network Tools Agile Cloud Operations Integrated Operations Portal Operational Processes Incident Configuration Service Level Release Problem Change Incident Configuration Capacity Incident Problem Release Capacity Change Incident Rationalized Processes Problem Change Availability Release Demand Capacity Server Team Storage Team Network Team Disconnected Processes Cloud Operations Team Automated Operations 15

16 Growth In Applications Traditional Applications Next Gen Cloud Applications M M 70% M M 700% Sources: IDC, Gartner, AWS Workload Estimates 16

17 Batch Scientific/ Engineering OLTP Networking ERP Data warehouse/ Data Mart CRM Data Analysis/ Data Mining File & Print Workgroup Web Serving App Development Traditional Applications Application Transformation Applications as a Service Integrated Management ERP Instances Messaging Instances CRM Instances Mainframe PRIVATE PUBLIC Database Instances User Environments DESKTOP LAPTOP Multiple Instances, Different Versions Customized: 100s of Integrations Tailored Operational Processes Optimized, Rightsourced Standardized: Fewer Integration Points Operationally Efficient 17

18 Cloud Service Broker Unified interface to service providers with consistent consumption and management Keep internal what needs to be internal But ensure it plays well with emerging / existing standards Leverage 3rd parties for all that is best done externally What business do you want to be in? Seamless and dynamic - movement of Workload to best infrastructure and middleware environment Right-sourcing by policy Portability among service providers Enables SP contestability Web services API 18

19 Infrastructure Transformation Traditional Environments Standardized Infrastructure Virtualized Converged Software Defined IT as System Integrator Silos Optimized for Individual Applications Weeks/Months to Deploy Efficient, Enterprise Resource Pool Flexible, Scalable Private Cloud Minutes/Hours to Deploy 19

20 Transforming to ITaaS Align Workloads With Most Suitable Cloud Model And Empower Them For Mobile And Big Data Solutions Build a Cost-Efficient, Agile Infrastructure to Enable Private and Hybrid Cloud LEGACY APPLICATION TRANSFORMATION 2 nd Platform Existing Apps INFRASTRUCTURE TRANSFORMATION PRIVATE Application Fabric Cloud Fabric 3rd Platform New Apps HYBRID Data Fabric PUBLIC OPERATING MODEL TRANSFORMATION User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Package And Orchestrate Services For Agile IT Operations And Convenient Consumption 20

21 Initiatives to Transform to ITaaS Modernize the Application Portfolio APPLICATION TRANSFORMATION OPERATING MODEL TRANSFORMATION Upgrade the End User Experience Enable Modern Third Platform Applications Standardize, Virtualize and Consolidate Transition to Software Defined Infrastructure 2 nd Platform Existing Apps INFRASTRUCTURE TRANSFORMATION PUBLIC HYBRID PRIVATE Application Fabric Data Fabric Cloud Fabric 3rd Platform New Apps LEGACY User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Package IT for Business Consumption Transform People and Processes for ITaaS Re-engineer IT Financial Management for Cloud 21

22

23 Why Transformation? Business is Changing Faster Than IT Business Has New IT Alternatives Technology Convergence is Accelerating 23

24 IT As A Service Delivers Business Agility at Lower Cost IT Cost Comparison (% of Total IT OpEx Budget) Innovation Spending (% of IT Budget) Legacy 100% 33 ITaaS 76% Legacy - 28 % Cloud Services 4 Innovation External Services Internal Services Software Hardware Maintenance Telecom, Facilities, Legacy ITaaS 40 % + Source: McKinsey, Gartner, EMC analysis Source: Forrester, EMC analysis 24

25 ITaaS Can Drive Dramatic Cost Savings IT Cost Comparison (% of Total IT OpEx Budget) Legacy 100% ITaaS 76% Where do the savings come from? Hardware and Software: Focused reference architectures Increased standardization Internal & External Labor: Service-focus, automation, and orchestration eliminate work Refocus resources from engineering and provisioning to capacity and performance management Facilities and Telecom: More performance, flexibility, and capacity with greatly reduced footprint Hybrid cloud adoption moves workloads off premise for additional savings Non x-86 Legacy: ITaaS platforms create ability to replatform legacy proprietary systems without sacrificing performance or availability 25

26 BILLIONS OF USERS MILLIONS OF OF APPS Mobile Cloud Big Data Social Mobile Devices HUNDREDS OF MILLIONS OF USERS TENS OF THOUSANDS OF APPS LAN/Internet PC Client/Server MILLIONS OF USERS THOUSANDS OF APPS Source: IDC, 2012 Mainframe, Mini Computer Terminals 26

27 Business Operations as Services Create a SW Development Environment OLD WAY Developer logs request. Management approves. Purchasing orders. IT designs, installs and builds NEW WAY Developer requests standard environment from portal Onboard New Employee Order equipment, office, phone, badge, IT accounts from separate systems Manager registers request by role from service portal Get a New Laptop Employee logs request. Management and finance approve, purchasing orders, IT installs Employee picks approved system build specific to role from service portal 27

28 Portfolio of Services Defined from consumer perspective Application Development Environment Virtual Desktop Cloud Hosting Database Hosting Desktop Software Collaboration Tools Remote Access Development Devices Hosting Software Network Business Services Desktop & Laptop Virtual Desktop (Cloud) Cloud Hosting (IaaS, PaaS, BPaaS) Enterprise Software Corporate Network Consulting Traditional Hosting Desktop Software Data Center Network Design Mobile Phone & Tablet Database Hosting Mobile Application Phone & Teleconferencing Printer/Scanner Accessories Application Hosting (App Store) Partner Connectivity & Extranet Development Collaboration Tools Remote Access Testing Software-as-a-Service (Cloud) Call Center 28

29 EMC IT Transformation Results IT PRODUCTION BUSINESS PRODUCTION IT-AS-A-SERVICE $21.7B $66M OPEX Savings $8.2B 80% 9X 88% More User Productivity** More Agile*** 100M Pounds of CO 2 Reduced $157M CAPEX Avoidance 5 Data Centers 24,000 Employees 1 PB Storage 15% Virtual 58% 4 Data Centers 60,000 Employees 13 PB Storage 92% Virtual * Percent of IT Spend on Lights-on vs. New Capabilities ** Improved sales order creation time due to vblock architecture deployment *** Reduced deployment time due to virtual infrastructure efficiencies Source: ESG IT Audit Report: EMC IT - Leading The Transformation, March

30 Enabling A New Consumption Model Many companies are changing the customer experience through ITenabled services We can now deliver on the Service Management promises of the past 20 years 30

31 ITaaS Main Attributes Self-Service Service Oriented Highly Automated Financially Transparent Consumerized Self-service catalog through user portal. Automated, traceable service requests & fulfillment Standardized planning, design, delivery and operation of services. IT partners with LOBs. Standardized technology architectures allow for deep automation and workflow orchestration. Services consumption is measured and reported back to user (LOB). Tiered services with different SLAs and costs. Deliver services at convenience of commercial SPs. Access to services through device of choice. 31

32 How EMC Brings ITaaS Together Governance, Risk and Compliance (GRC) Security API Virtual Infrastructure Physical Infrastructure PUBLIC CLOUD Cloud Services Virtual Infrastructure Physical Infrastructure HOSTED PRIVATE CLOUD BPaaS SaaS PaaS IaaS Cloud Service Broker (CSB) API API Cloud Service Building Blocks Virtual Infrastructure Physical Infrastructure PRIVATE CLOUD Policy Engine Device Hosting Service Catalog Orchestration Engine Traditional (Non-Cloud) Services Network Software Metering Engine User Portal Professional Services Service Management Request Management Incident Management Problem Management Event Management Knowledge Management Change Management CMDB AMDB Configuration Management Asset Management 32

33 IT-As-A-Service Operating Model Voice Of The Customer BUSINESS USERS Service Request / Delivery Invoicing GO- TO- M A R K E T Service Strategy Service Catalog Pricing, Show / Chargeback SERVICE PORTFOLIO MANAGEMENT Portfolio / Demand Management Processes Service Roadmap Service Design / Launch SERVICE DELIVERY AND SUPPORT Automated Orchestration And Provisioning Standardized Processes Standardized Service Management Tools SKILLS / ROLES / COMPETENCIES CLOUD INFRASTRUCTURE FINANCIAL TRANSPARENCY Metering Service Costing Policies 33

34 New Organizational Roles for IT Client Engagement Communicates and stimulates development & utilization of IT Services. Assists clients with value based consumption Services Applications Platforms Technologies Support Manages the creation, introduction and lifecycle of service offerings to address current and future needs Develops multi-tenant enterprise applications that allow for configurability without customization Architects and delivers technology platforms consumed by services; Governs tech standards Technologies to enable, automate, monitor, secure, provide access to, and track health of services Global Command Center and IT Service Operations Service Desk 34

35 Transformation Roadmap Initiative Interdependencies Transform Applications Early Stage Initiatives Application Rationalization Cloud Development Platform/Tools Longer-term Initiatives SDLC/DevOps Objectives Business AppStore Stateless Applications Transform Operating Model IaaS Service Catalog Design PaaS Service Orchestration Agile Self-Service Consumption Transform Infrastructure Rationalize Standards Virtualized, Consolidated Data Center Converged Infrastructure, SDDC Software Defined Data Center 35

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