Data Center Transformation Fast Forward
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1 Data Center Transformation Fast Forward Norbert Lanzendoerfer Dir. Strategic Initiatives EMEA East October 2011 Hitachi Data Systems All Rights Reserved.
2 What Drives the Market Data Center Transformation 2
3 Limited Ability for IT to React to Change Operational costs are more than 65 percent of storage costs and still increasing. Source: IDC 3
4 Breakdown of Multi-year IT Costs Due to Storage Four-year storage costs, answers from respondents: Management and labor: 30% Power and data center space: 14% Migration: 14% Maintenance: 18% Lease and buy: 25% 30% 14% 25% 14% 18% 4 Source: TechValidate
5 Why de we need to innovate? 5
6 The infrastructure challenge Business Needs Speed Flexibility Lower costs Reliability Low risk IT Response Figure out what s being asked for Manually provision No organizational coordination Limited flexibility Reactive 6
7 On the CIO s Mind Top Business Priorities Business process improvement Reducing enterprise costs Improving enterprise workforce effectiveness Attracting and retaining customer relationships Creating new products or services (innovation) Source: Gartner Press Release, Gartner EXP Worldwide Survey 7
8 On the CIO s Mind Top Technology Priorities Virtualization Cloud computing Mobile technologies Networking, voice and data communications Service-oriented applications and architecture 8 Source: Gartner Press Release, Gartner EXP Worldwide Survey
9 What Drives the Market Data Center Transformation 9
10 What the Analysts Say Labor has become the most addressable cost in infrastructure. McKinsey : A fresh wind for offshoring infrastructure management 2008 Help I need Somebody! The ability to efficiently manage infrastructure will be a prerequisite to more sophisticated information management. IDC, Brad Nisbet, March 2010, Help I need Somebody Based on end user inquiry, Gartner has observed that most storage infrastructure is managed inefficiently. Gartner RAS Core Research Note G , Adam W. Couture,
11 Cost Challenges with IT Transformation Companies rarely achieve the expected ROI Many companies are virtualizing; 40% server virtualization projects not achieving expected ROI (Taneja Group Study 2009) Technology purchases are underused Shelfware Customers face complexities, risk, time and cost of moving their data centers Target ROI Time Actual ROI Target Payback Actual Payback 11
12 Risks of Technology Refresh 70% of customers reported schedule overruns of 30% or more 64% reported average budget overruns of 15% or more 55% of customer reported unscheduled migration incidents Source: TechValidate field research Sept Help I need Somebody! The ability to efficiently manage infrastructure will be a prerequisite to more sophisticated information management. IDC, Brad Nisbet, March 2010, Help I need Somebody 12
13 What IT Needs Next Today s economy requires organizations and IT to adapt quickly in order to: Support operations and always-on business Leverage existing investments longer Reduce operational costs without added complexity Increase utilization and efficiency of storage assets React to changing business requirements by redeploying services Turn data into business information and unlock new value 13
14 Hitachi Data Systems Cloud Vision A COMMON VIRTUALIZED PLATFORM FOR ALL DATA, CONTENT AND INFORMATION Intelligence Information Re-purposing Infrastructure Cloud Content Cloud Information Cloud SINGLE VIRTUALIZATION PLATFORM Hitachi storage and servers Infrastructure Plumbing Converged solution stacks Rapid, on-demand provisioning and deployment Data Intelligence Data lifecycle management Index, search and discover across Information Analytics Data re-use for new business Data independence from applications 14
15 Transform From as is To be Distributed management Infrastructure Virtual management Infrastructure Arbitrary Service Levels Strong set of Service Levels Labor Intensive Management Automated Management Cost Center Value Center 15
16 16 Thank You
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