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1 <Insert Picture Here> La strategia Oracle per il Cloud Computing e un caso reale di adozione Giustino Longo Senior Director, Oracle Consulting South Western Europe

2 Cloud: a metaphor for the Internet Essential Characteristics On-demand self- service Resource pooling Rapid elasticity Measured service Broad network access Cloud Computing Deployment Modes Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a service (SaaS) Source: National Institute of Standards in Technology (NIST) 2011 Oracle Planning a Cloud Implementation 2

3 Cloud Drivers Reduce time to Market Reduce Complexity Green IT Strategic $ Change IT Cost Structure Scale on Demand Tactical Optimizing dev / test environments Virtualization Metering and Chargeback 2011 Oracle Planning a Cloud Implementation 3

4 Why Choose Private Cloud vs. Public? Results from IOUG Survey Respondents cite: Security, QoS & Long-term Cost as key reasons to choose a Private Cloud over Public Clouds Why choose private cloud? Security concerns QoS concerns Long-term cost Services already exist Compliance concerns Difficulty to customize Difficult to integrate Lock-in concerns other % * IOUG ResearchWire member study on Cloud Computing, conducted in August-September Oracle Planning a Cloud Implementation 4

5 Private Cloud Plans Through 2012, how will your IT organization invest in cloud computing? Neither 11% Don't know 6% What is your main driver in moving to private clouds? Don't Know/ Vendor 25% Agility/ Speed 36% More public 8% More private 75% N = 88 Enable Hybrid 7% Business Alignment 5% Cost 15% N = 60 Quality 12% 2011 Oracle Planning a Cloud Implementation 5

6 Oracle Has a Broad but Focused Cloud Computing Strategy Private Cloud Solutions Applications on a shared platform Database & middleware for PaaS Hardware & systems for IaaS Private Cloud Public Cloud Solutions Oracle On Demand cloud services Oracle on 3 rd party public clouds Powering 3 rd party public clouds Public Clouds Apps PaaS IaaS I N T R A N E T I N T E R N E T SaaS PaaS IaaS Cloud Integration Security, business process integration and data integration spanning on-premise and public clouds 6

7 Oracle Cloud Platform Platform as a Service Shared middleware and database services Elastically scalable, highly available Extreme performance Comprehensive functionality Robust development environment Rapid deployment Infrastructure as a Service Shared compute and storage services Elastically scalable, highly available Physical and virtual x86 and SPARC Flash, disk and tape storage Cloud Management Complete cloud lifecycle management Complete apps to disk management Self-service Policy-based resource management Metering & chargeback 7

8 Cloud Implementation Roadmap 8

9 What is Your Cloud Business Case? Top Private Cloud Challenges Reported: 2010 IOUG Survey* Creating the business Creating the case business & case funding and funding model Adequately Adequately provisioning server capacity Implementing process, policy and role changes (transformation) Implementing process, policy and role changes Gaining cross-organization Gaining support support participation or Building awareness of available services Building awareness of available services Adequately provisioning Storage capacity Adequately provisioning storage capacity Loss of visibility / control Loss of Visibilty /control % * Independent Oracle User Group (IOUG) ResearchWire member study on Cloud Computing, conducted in August-September Oracle Planning a Cloud Implementation 9

10 Cloud Service Portfolio Management Identifying the Cloud Services X aas Profile your Applications (Platform Capability Needs) Top Down Business Fit Business drivers e.g. what needs rapid provision Service Identification X as-a-service What resources are shareable? Match Cloud characteristics Strategy Fit Bottom-up 2011 Oracle Planning a Cloud Implementation 10

11 Optimized Architecture is the Foundation for Cloud Computing IT-as-a-Service Optimized IT Core Integration Layer Service Group A Service Group B Service Group C Application Grid Application Grid Application Grid Transitional Data Grid Data Grid Security Layer Data Grid Pt. to Pt. Integrations Complexity Client 1 FBT PAY G NTS Customs NTS A/c TRDS Data. SFAProduct product SCM productmes- ERP DB Dev DB- SFA- Product ERP- product Stage SFA Stage Product Stage SFA- ERP- MES- Test Prod Stage MES- Prod SFAProduct product SCM productmes- ERP DB Product Dev DB- ERP- product Stage Stage Security Inv LMS B2B MGMT B2B- B2B- Stage Dev LMSInv MGMT Security Security Security RRE IPS Penalty Integrated A/C Refunds 1 RBA Def Excise Payments CR ECI ADD AWA ELS CCD Compliance Staff Business IVR PKI CDCC DDDR CWMS GCI Staff Phone TASS B us. Intel WOC Refmaterial B OA BEP Client BANK Staff Remote Staff TAX AGENTS Call Centres

12 Evolution of a Cloud Provider Definition of a vision, IT with strategy an and Enterprise roadmap for a Cloud Architecture solution in terms defining of business standards strategy Consolidated Migration Datacenter of heterogeneous supports multitenancy to to environments share the Cloud systems and platforms Increase efficiency IT power of IT resources supplier use and development offering of technology new business like electricity models Road- map Standar- dise Consoli- date Auto- mate Opti- mise Standardized Design implementation Datacenter provides of a standard a set platform of pre-build for the technology cloud to be used to create solutions Automation Automated of Datacenter manual offering inefficient selfservice processes tools for to managing deploy and and developing provision the solutions Cloud 12

13 Oracle Consulting Services for Cloud Computing Private Cloud Proven solution Build on experiences from many customers Leverage existing investments in IT Security Architecture Information Cloud Management Business & Strategy Cost & Benefits Services Governance Oracle Stack Vendor knowledge in hardware and software Engineered Systems - Exadata, Exalogic Database Grid, Apps Grid, FMW, Servers & Storage Access to product management & development Multi-Dimensional Holistic approach reduces risks Impacts are not purely technical Requires, Hardware, Software and strategy Architectural approach Multi-Stage Pragmatic and approved journey ensures early win Think Strategically, act tactically Deliver benefits at every stage 13

14 Oracle Consulting Cloud Services Framework A Multi-dimensional Journey Roadmap Standardise Consolidate Automate Optimise Cloud Strategy & Benefits Enterprise Deployment Model Platform Consolidation Cloud Operations Model Metering / Charge Back Cloud Assessment Reference Cloud Implementation Exadata / Exalogic Services DR & Failover Automation Business Evolution Cloud Architecture & Roadmap Platform Upgrade Application Migration Self Service Provisioning Quality of Service Optimisation Cloud Competency Center 14

15 Private Cloud: a case study 15

16 Credit Suisse: Java Application Platform (JAP) Case Study Leading global financial services company headquartered in Zurich. Business include private banking, investment banking and asset management with more than 47,000 employees and offices in more than 50 countries. Before Hand crafted heterogeneous servers Increasing administration costs and complexity across 200 Java applications Audit and regulatory compliance was at risk After Common Java Application Platform 190 applications on 400 hosted /shared servers 30% reduction in one time development costs 35% reduction in recurring maintenance and support costs Faster time to deploy/change 16

17 Produced by: Roger Sueess Date: Oct

18 Economics: Part 1 Virtualization Impact on IT Budget (CAPEX) Impact on Load vs Server Utilization 2,800 of 5000 servers deployed globally suitable for virtualization Expected consolidation ratio for virtual hosts is 1:15 (physical/virtual) at 80% adoption by 2013 Virtualization prevents 44% increase of power consumption in four years, while doubling the capacity Produced by: Roger Sueess Date: Oct

19 Economics: Part 2 PaaS Impact on Design-Build-Run Costs (OPEX) 70% (A1) 1) BFD 10% (A2) BFD 63% 55% 30% IL 30% IID 80% (A6) 66% (A3) (A7) IID 6% 10% 1&2 100% IL 10% 100% custom on JAP 69% 100% custom (A8) on JAP 65% 60% (A4) AL 8% (A5) AL Savings on One time Costs (CTB) Business Functionality Development (BFD) Savings: Reuse of common framework & components provided by JAP Residual Costs: Business func. development Infrastructure Integration & Deployment (IID) Savings: Reuse JAP stack, pre-built infrastructure integration, running servers Residual Costs: Infrastructure extension & configuration, JAP E2E consultant Savings on Recurring Costs (RTB) Maintenance Costs at Application Level (AL) Savings: Reduced prod. problems, periodic review & decommissioning of apps Residual Costs: 3 rd level support & maintenance Maintenance Costs at Infrastructure Level (IL) Savings: Infrastructure lifecycle mgmt does not involve applications (e.g., DST handling) 1 st and 2 nd Level Support (1&2) Savings: JAP provides full 1 st and 2 nd level support Produced by: Roger Sueess Date: Oct

20 Produced by: Roger Sueess Date: Oct

21 Produced by: Roger Sueess Date: Oct

22 JAP Success Factors Enabler (1 of 6) Change of mindset - projects vs platform Produced by: Roger Sueess Date: Oct

23 Credit Suisse JAP Key Takeaways 10% yearly reduction running costs Highest savings in Operating Costs (35%) and Project Costs (30%) Business case in 2 parts: CAPEX and OPEX Hosts 220 applications on 400 servers Replaced 2800 servers Standardized operating process No downtime incidents in 3 years Only 3 platform releases in parallel 2011 Oracle Planning a Cloud Implementation 23

24 Some Final Thoughts. 24

25 Building the Cloud case Consider Direct, Indirect & Intrinsic ROI* Direct cost savings - Reduced cost of consolidated HW is obvious - But savings on operations costs can be 5X the HW savings Service level improvement - Increased uptime from shared services - Plus reduction in faults from standardization Business agility - Basic time to deploy reductions - Biggest win may be new business application possibilities *Some Are Harder to Measure 2011 Oracle Planning a Cloud Implementation 25

26 Planning Your Cloud Summary Decide what kind of cloud is under consideration - Infrastructure, Platform, Private, Hybrid. Identify measurable benefits Use appropriate ROI models Evaluate organizational readiness Select your Cloud journey partners Develop a clear roadmap for deployment Architecture is the foundation Create a Cloud Competency Center Oracle can support you to start your Cloud journey - Cloud Workshops - Cloud Maturity Assessments - Cloud Reference Architecture - Adoption of Oracle stack for Cloud 2011 Oracle Planning a Cloud Implementation 26

27 oracle.com/cloud 27

28 Backup Slides 28

29 Enterprise Private Clouds are Different NIST identifies 5 essential cloud characteristics - Self-service On-demand, Resource pooling, Elasticity, Broad network Access, Metered service I N T R A N E T SaaS PaaS IaaS Consuming Clouds is the same experience for Public or Private BUT the Providing Enterprise Clouds is the difference Public We use cloud Developers & App owners Enterprise We provide cloud Operations We operate cloud Private IT Enterprise data & applications 2011 Oracle Planning a Cloud Implementation 29

30 Evolution of Private and Public Clouds Public Cloud Evolution Public Clouds Hybrid ISP ASP MSP ISV CSP/ Telcos SaaS IaaS PaaS IaaS PaaS SaaS Private Cloud Evolution Virtual Private Cloud App1 App2 App3 App1 App2 App3 App1 App2 App3 App1 App2 App3 Consolidate Standardize Private PaaS Private PaaS Private PaaS Private IaaS Private IaaS Private IaaS Silo d Physical Dedicated Static Heterogeneous Grid Virtual Shared services Dynamic Standardized appliances Private Cloud Self-service Policy-based resource mgmt Chargeback Capacity planning Hybrid Federation with public clouds Interoperability Cloud bursting 30

31 Benefit: Price Costs/Revenues Ratio 35% reduction of operating costs (Run The Bank budget) 30% reduction of project costs (Change The Bank budget) JAP Charging Unit (VE) price evolution 10%+ reduction in H H H H H H H H H running costs year-overyear 1 to 10 shared server consolidation ratio No downtime incidents 3 years in a row ( ) VE Price Linear Reduction No service disruption due to DST patching on stack Produced by: Roger Sueess Date: Oct

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