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1 CIO SUMMIT l LAS VEGAS Copyright 2014 EMC Corporation. All rights reserved. 1

2 IT Transformation Facilitator: Tom Roloff, SVP Global Services, EMC

3 Many Industries Face Structural Change 3

4 Today s Business Challenges Cut Operational Costs & Legacy More Than Ever React Faster To Find New Growth 2 New IT Agenda Provide Access To All Applications & Data Through Mobile Devices. Use Agile Development To Build New Customer-Centric Applications. Build A Data Lake To Deliver Insights And Applications On All Data. Move To A Software-Defined Data Center Infrastructure And Expand It To A Hybrid Cloud. Balance Risk Use Adaptive, Data-Driven Security To Rapidly Respond To Emerging Threats. 4

5 Business Drivers COST IT Budgets are not expanding 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 5

6 The Opportunity for Savings is Huge CIO-level Comparison of Enterprise Total IT Spend for Different Deployment Models IT Spending Averages 3.5% of Revenue (Avg. Company Size: ($5.6B) Cloud svcs. IT svcs. Internal svcs. Software Hardware Facilities & Fabric Telecoms Non x86 3 Legacy IT spend benchmark 4 Source: EMC Consulting, McKinsey TMT Value Migration Database (Gartner, IDC compilation), Gartner IT Key Metrics Data 2011 Banking and Financial Services Software Publishing and Internet Services Assumptions: Based on typical finance sector IT budget; SaaS, Private cloud and IaaS savings modeled only for x86 workloads (assumed 80% of spend) Education Media and Entertainment Professional Services Telecommunications Pharmaceuticals, Life Sciences and Medical Products Healthcare Providers Insurance Transportation Industrial Electronics and Electrical Equipment Utilities Consumer Products Industrial Manufacturing Chemicals Retail and Wholesale Food and Beverage Processing Construction, Materials and Natural Resources Energy % 5.8 6

7 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 External Services Internal Services Software Hardware Telecom, Facilities, Legacy Maintenance Innovation ITaaS 40 % + Source: McKinsey, Gartner, EMC analysis Source: Forrester, EMC analysis 7

8 Transforming 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 8

9 An ITaaS Marketecture 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 9

10 Elements of an ITaaS Transformation Aligning Workloads With Most Suitable Cloud Model And Empower Them For Mobile And Big Data Solutions Delivering The Well Built Private Cloud With Legacy And Hybrid Cloud Extensibility APPLICATION TRANSFORMATION 2 nd Platform Existing Apps INFRASTRUCTURE TRANSFORMATION PUBLIC HYBRID PRIVATE Application Fabric Data Fabric Cloud Fabric 3rd Platform New Apps LEGACY OPERATING MODEL TRANSFORMATION User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Packaging And Orchestrating Services For Agile, Cost Effective IT Operations And Convenient Consumption 10

11 Typical Starting Points Align Workloads to Optimal Cloud Model APPLICATION TRANSFORMATION 2 nd Platform Existing Apps Application Fabric Data Fabric Cloud Fabric 3rd Platform New Apps OPERATING MODEL TRANSFORMATION User Portal Service Catalog New Roles Develop Catalog of Business Services Transition to Agile, Scalable Infrastructure LEGACY INFRASTRUCTURE TRANSFORMATION PRIVATE HYBRID PUBLIC Policy Engine Orchestration Engine Metering Engine Agile Processes Establish Automation Pilot 11

12 Questions to Guide Our Discussion 1. When it comes to your Cloud Journey and your move to ItaaS what is the relative importance of Cost Savings vs. Agility improvement? 2. Are you considering a Service Broker IT model? What is pacing that journey? 3. As you look out 2-3 years, what will your business users say has been IT s has most significant change? 12

13 Questions to Guide Our Discussion 1. When it comes to your Cloud Journey and your move to ItaaS what is the relative importance of Cost Savings vs. Agility improvement? 2. Are you considering a Service Broker IT model? What is pacing that journey? 3. As you look out 2-3 years, what will your business users say has been IT s has most significant change? 13

14 Questions to Guide Our Discussion 1. When it comes to your Cloud Journey and your move to ItaaS what is the relative importance of Cost Savings vs. Agility improvement? 2. Are you considering a Service Broker IT model? What is pacing that journey? 3. As you look out 2-3 years, what will your business users say has been IT s has most significant change? 14

15 Questions to Guide Our Discussion 1. When it comes to your Cloud Journey and your move to ItaaS what is the relative importance of Cost Savings vs. Agility improvement? 2. Are you considering a Service Broker IT model? What is pacing that journey? 3. As you look out 2-3 years, what will your business users say has been IT s has most significant change? 15

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