Creating Westcon s Virtualized Data Center The CTO s Perspective. William Hurley CTO/CIO Westcon Group
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1 Creating Westcon s Virtualized Data Center The CTO s Perspective William Hurley CTO/CIO Westcon Group
2 Your average customer WESTCON'S DATA CENTER EXPERIENCES
3 Westcon s IT Priorities ISSUES STRATEGY TACTIC SOLUTION Storage Problems Leverage the Cloud SAAS PAAS Y2K HW Getting tired Power Problems New Data Center Strategy Leverage Virtualization Hardware Refresh UK/US DR Inefficiencies Leverage Managed Services Data Center Consolidation Lack of Engineering Expertise Outrageous Voice/Data costs New VOIP/ MPLS Strategy Leverage Managed Services Partner MPLS Managed Service VOIP Network Integrated UC
4 Westcon s IT Priorities ISSUES STRATEGY TACTIC SOLUTION Storage Problems Leverage the Cloud SAAS PAAS Y2K HW Getting tired Power Problems New Data Center Strategy Leverage Virtualization Hardware Refresh UK/US DR Inefficiencies Leverage Managed Services Data Center Consolidation Lack of Engineering Expertise Outrageous Voice/Data costs New VOIP/ MPLS Strategy Leverage Managed Services Partner MPLS Managed Service VOIP Network Integrated UC
5 Data Center Situation Data Center Architecture Issues Dual data centers (c. 2003) Elmsford (outside NY) Reading (outside London) Original objective - hotsite redundancy Never achieved data center architectures evolved independently New proposal (5 years later) $3.0-$5.0 million needed to achieve original objective Did not account for exponential transaction growth CEO - Costs unacceptable look for alternative approach Business issues Business growth doubling every 3-5 years Transaction volumes significantly higher rates ERP system in need of an upgrade response time and batch windows growing Business Intelligence reports not available in timely manner Aging servers and storage
6 Dual Data Center Alternative Brought in outside firm Gartner analyze alternatives Recommendation - given size of firm and technology advances Single Data Center with offsite backup/recovery Refresh existing infrastructure - $1.0 million Consolidate to new platform, optimized for Virtualization, on converged ethernet Replace compute environment for $1.0 million
7 Consolidation Strategy - Jaguar Jaguar s Theme utilize the network to move apps and data Reduce major business downtime. Offload commoditized apps to Cloud Where possible directly integrate into MPLS network Migration Tactics Virtualize EVERY APP in the portfolio on the existing hardware Business apps, Firewalls, domain controllers, VPN servers, everything Standardize enterprise apps and databases on Linux Vmotion apps over global MPLS Network Install advanced Data Replication Facility (EMC RPA) Synchronize data across old and new facilities real time
8 Fully Virtualized Environment 325 physical servers converted to 325 virtual servers Now on 22 blades Eliminated positions or redeployed 7 engineers Power and cooling - $60k to $20k per month Greater agility/flexibility in provisioning Improved up-time
9 Sample Performance Improvements Production Benefits Global ERP seeing 14x 22x performance improvements JD Edwards queries 2 minutes down to 30 seconds Batch windows opened up by 25% Quarter-end reporting for Europe Previously ran until Noon GMT Finished by 7am GMT App Sample Transaction Improvements Query Original Now
10 Westcon s IT Priorities ISSUES STRATEGY TACTIC SOLUTION Storage Problems Leverage the Cloud SAAS PAAS Y2K HW Getting tired Power Problems New Data Center Strategy Leverage Virtualization Hardware Refresh UK/US DR Inefficiencies Leverage Managed Services Data Center Consolidation Lack of Engineering Expertise Outrageous Voice/Data costs New VOIP/ MPLS Strategy Leverage Managed Services Partner MPLS Managed Service VOIP Network Integrated UC
11 Westcon s Cloud Strategy Offload Commodity Technology to Cloud - -Instant Messaging -Collaboration -CRM -IT Development Data Center Consolidation Migrate to Virtualized Data Center -ERP -Business Intelligence
12 Westcon Cloud Experiences Biggest Hurdles Internal Hidden unorthodox use of software leads to Business Process Redesign leads to Additional Costs to re-platfom solutions External Ambitious growth of CSP led to outages Reparations made but confidence lost Nuances Five 9 s vs. it s just slow right now Where in the network is the problem - CSP, Carrier, Internal Network?
13 Cloud Services : The Market Opportunity The total size of the public cloud market will grow from $25.5 billion in 2011 to $159.3 billion in Virtual private cloud solutions will become a $66.4 billion market by 2020 (up from $7.5 billion in 2011) Cloud computing has an impact on many of the core segments of the $2.4 trillion worldwide spend by businesses and governments on information and communications technology (ICT) products and services Source: Forrester Research Inc., 2011
14 Cloud Services Brokerage Through 2015, cloud services brokerage (CSB) will represent the single largest revenue growth opportunity in cloud computing. The channel has an opportunity to play a significant role in aggregation and brokerage services, yet few have begun to invest in becoming a CSB. (Garter, October 2010) By 2015, the CSB vendor landscape will have grown from dozens to hundreds of providers By 2015, at least 20% of all cloud services will be consumed via CSBs rather than directly, up from less than 5% today The Cloud Services Broker: Makes it cheaper, easier or faster to navigate, integrate, consume or extend services (by automating the transaction from end2end; by contracting with individual cloud service providers and negotiating SLAs; by identifying and aligning fit-to-purpose technologies with specific industry, market segment or technology use cases; by aggregating access to cloud services) Reduces the risk of consuming services (by doing due diligence on cloud services providers, weeding out the pretenders from the contenders; by limiting the investment required to begin selling cloud services) Adds significant value to services (which lower the barrier to entry for both vendors and resellers; which provide competitive differentiation, for both us and resellers; which can be monetized by Westcon) Cloud Services Brokerage is a natural fit for distribution Can build on existing (global) relationships with vendors, service providers and resellers Leverages legacy core competencies such as channel development, marketing, and logistics and financial support 14 Confidential - Not For Distribution
15 What are resellers doing? 55% resell cloud services of vendors such as Microsoft and Google. Low cost of entry and relatively predictable return on investment. Annuity revenue and predictable renewals 39% are selling their own cloud solutions On top of cloud platforms built and hosted by hosting and collocation companies such as Rackspace, Amazon or OpSource Other channel partners are developing their own cloud infrastructure and hosted applications for delivery as a cloud service (Netelligent with Cisco HCS) One in three channel partners is making cloud revenue by integrating and supporting hybrid clouds cloud resources are used to augment the capabilities and capacity of on-premise infrastructure Nearly one-quarter of channel partners are involved in the development of private clouds Ongoing maintenance and professional services support provides a recurring revenue stream for partners One in five channel partners doesn't sell the cloud at all, but rather recommends customers to cloud providers for referral fees Low risk and little investment required Source: More Than One Cloud for Making Money, Channel Partners, 8 Aug Confidential - Not For Distribution
16 What we re hearing from vendors and customers SaaS vendors are asking us to: help them make rather than simply fulfill the market for their cloud services. find partners to take them to market, often in a managed services model. automate the cloud services transaction from end2end, for all channel participants Accelerate time-to-market without having to reengineer back-office systems and processes Infrastructure vendors are asking us to: provide transparency into how their licenses are distributed throughout the channel. build out a cloud services delivery capability (including hosting) for distribution of their solutions. Identify service providers that are looking to bundle solutions into their hosted offerings (though not to resell those solutions). Resellers are asking us to: minimize the investment they have to make in order to add cloud services to their portfolio of offerings. minimize the complexity involved in bringing cloud services to market. find partners that have already invested in development of a given capability that they can resell. simplify the GTM for their cloud/managed services strategy by providing enhanced capabilities (billing as a service; Help Desk) to their channel partners. 16
17 The Westcon Cloud Ecosystem
18 FLATTENING THE NETWORK
19 Network - New Planning Considerations 1985 Spanning Tree Protocol invented by Radia Perlman (DEC) Network protocol that ensures a loop-free topology for any bridged Ethernet local area network. The basic function of STP is to prevent bridge loops and ensuing broadcast radiation. Spanning tree also allows a network design to include spare (redundant) links to provide automatic backup paths if an active link fails, without the danger of bridge loops, or the need for manual enabling/disabling of these backup links IETF TRILL proposal by Radia Perlman 2007 IEEE802.1aq - SPB (Shortest Path Bridging) Convergence or Flattening of the Data Center is the pursuit of 2-Tier Networks End of STP Start of SPB (and variants) Flattening via Fabric
20 Fabric and VSP 9000 By Year End 2013, 30% of all Global 2000 data centers will be, in part or whole, fabric-based (up from less than 5% today). 90% of these Fabric Based Infrastructure s will employ Virtualization. Up to 40% of these Fabric Based Infrastructures will be used for cloud infrastructures and services. (Source: Gartner 9/2010) VSP 9000 Fabric attribute Highly scalable lossless fabric architecture supporting future 40Gbps and 100Gbps interface connectivity, services integration [and] Converged Enhanced Ethernet. Source: 2011 Avaya VSP 9000 Technical Architecture/Fact Sheet
21 Twitter: WestconCTO Mobile: +1 (914) THANK YOU
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