<Insert Picture Here> Enterprise Cloud Computing: What, Why and How

<Insert Picture Here> Enterprise Cloud Computing: What, Why and How Andrew Sutherland SVP, Middleware Business, EMEA

he following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. he development, release, and timing of any features or functionality described for Oracle s products remain at the sole discretion of Oracle. 2009 Oracle 2

Everyone Is alking About Cloud 2009 Oracle 3

Cloud Is at the Peak of the Hype Curve Source: Gartner "Hype Cycle for Cloud Computing, 2009" Research ote G0016878080 2009 Oracle 4

IS Definition of Cloud Computing Cloud computing is a model for enabling convenient, ondemand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. his cloud model promotes availability and is composed of: 5 Essential Characteristics 3 Service Models 4 Deployment Models On-demand self-service Resource pooling Rapid elasticity SaaS PaaS IaaS Public Cloud Private Cloud Community Cloud Measured service Hybrid Cloud Broad network access Source: IS Definition i i of Cloud Computing v15 2009 Oracle 5

SaaS, PaaS and IaaS Software as a Service Applications delivered as a service to end-users over the Internet Platform as a Service App development & deployment platform delivered as a service Infrastructure as a Service Server, storage and network hardware and associated software delivered as a service 2009 Oracle 6

Public Clouds and Private Clouds Used by multiple tenants on a shared basis Hosted and managed by cloud service provider Limited variety of offerings Public Clouds SaaS PaaS IaaS Public Clouds: Lower upfront costs Economies of scale Simpler to manage OpEx I E R E Both offer: High efficiency High availability Elastic capacity Private Cloud I R A E SaaS PaaS Users IaaS Private Cloud: Lower total costs Exclusively used by a single organization Controlled and managed by in-house I Large number of applications Greater control over security, compliance & quality of service Easier integration CapEx & OpEx 2009 Oracle 7

44% of Large Enterprises Are Interested In Building An Internal Cloud Source: Cloud Computing, Compute-As-A-Service: Interest And Adoption By Company Size, Forrester Research, Inc., February 27, 2009 2009 Oracle 8

Why Are Enterprises Interested in Cloud? Benefits of Cloud Computing Speed Cost Source: IDC exchange, "I Cloud Services User Survey, pt. 2: op Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008 2009 Oracle 9

What Are the Challenges Enterprises Face? Challenges of Cloud Computing Security QoS Fit Source: IDC exchange, "I Cloud Services User Survey, pt. 2: op Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008 2009 Oracle 10

Cloud Computing: Oracle s Perspective Characterized by real, new capabilities, but based on many established technologies Compelling benefits as well as serious concerns Enterprises will adopt a mix of public and private clouds 2009 Oracle 11

Oracle Cloud Strategy 2009 Oracle 12

Oracle Cloud Computing Strategy Our objectives: Ensure that cloud computing is fully enterprise grade Support both public and private cloud computing give customers choice Offer Applications deployed in private shared services environment or via public SaaS Offer echnology to build private clouds or run in public clouds Public Clouds SaaS PaaS IaaS I E R E I R A E Private Cloud SaaS PaaS IaaS Users 2009 Oracle 13

Oracle Cloud Computing Strategy Oracle Applications On Demand Public Clouds Private Cloud Oracle Applications SaaS PaaS IaaS I E R E I R A E SaaS PaaS IaaS Oracle echnology in public clouds Users Oracle Private PaaS 2009 Oracle 14

Oracle Cloud Computing Strategy Oracle Applications On Demand Public Clouds Private Cloud Oracle Applications SaaS PaaS IaaS I E R E I R A E SaaS PaaS IaaS Oracle echnology in public clouds Users Oracle Private PaaS 2009 Oracle 15

Oracle Private PaaS: What, Why and How 2009 Oracle 16

Why Enterprise Private PaaS Why Cloud? - Agility and speed - Efficiency and cost IaaS PaaS Why Private? - Security - Compliance Built by - Control (particularly over QoS) user - Easiest evolution of existing expertise and practices PaaS Built by user Provided by I Why Platform? - Maximizes i component re-use - Minimizes hand coding - Maximizes flexibility and control Provided by I IaaS 2009 Oracle 17

What: Oracle Cloud Platform for PaaS Application 1 Application 2 Application 3 Platform as a Service Integration: SOA Suite Shared Services Process Mgmt: BPM Suite Security: Identity Mgmt User Interaction: WebCenter Application Grid: WebLogic Server, Coherence, uxedo, JRockit Database Grid: Oracle Database, RAC, ASM, Partitioning, IMDB Cache, Active Data Guard, Database Security Infrastructure as a Service Operating Systems: Oracle Enterprise Linux Virtualization: Oracle VM Servers Cloud Management Oracle Enterprise Manager Lifecycle Management Configuration & Compliance Application Performance Management Application Quality Management Storage 2009 Oracle 18

Private PaaS Lifecycle 3. Use App 2. Build App Assemble app using shared components Deploy through self-service 1. Set Up Cloud App Users App Developer App Shared Components 4. Scale up/down Adjust capacity based on policies Monitor via selfservice Self-Service Interface App Owner 5. Chargeback Meter usage and charge back to app owners or departments I Set up PaaS Set up shared components Set up selfservice portal Oracle Fusion Middleware Oracle Database Oracle Enterprise Linux Oracle VM Oracle Enterprise Manager 2009 Oracle 19

Demo Private PaaS Conceptual Demo 2009 Oracle 20

How: Enterprise Evolution o Cloud Public Clouds Hybrid Public Cloud Evolution SaaS PaaS IaaS SaaS PaaS IaaS Private Cloud Evolution Virtual Private Cloud App1 App2 App3 App1 App2 App3 App1 App2 App3 App1 App2 App3 Private PaaS Private PaaS Private PaaS Private IaaS Private IaaS Private IaaS Silo d Physical Dedicated Static Heterogeneous Grid Private Cloud Hybrid Virtual Shared services Self-service Policy-based Federation with public clouds Dynamic resource mgmt Interoperability Standardized Chargeback Cloud bursting appliances Capacity planning 2009 Oracle 21

Evolving From Silos to Grid From Physical to Virtual Physical, dedicated silos Sized for peak load Difficult to scale Expensive to manage Virtualized, shared resources Improved utilization Scale as needed Efficient to manage 2009 Oracle 22

Grid Computing: Virtualization & Clustering Cloud Is ot Just Server Virtualization ti 2009 Oracle 23

Sharing and Consolidation with Grid Computing Workload Application A Application B Application C Application D Application E k ake advantage of <20% complementary workload peaks Avg Utilization Server A Server B Server C Server D Server E Higher utilization rates and efficiency Virtualization and clustering enable consolidation Oracle Shared Instance Lower CapEx & OpEx Applications A, B, C, D, E et Workload Avg Utilization 70% Green footprint Freed capacity to deploy elsewhere Server A Server B Server C Server D Server E 2009 Oracle 24

Elastic Scalability with Grid Computing Oracle Shared Instance Applications A, B, C, D, E Pay-as-you-go scale-out - Lower upfront CapEx and et If utilization too high, ongoing OpEx Workload increase capacity - Green footprint Server A Server B Server C Server D Scale-out on-demand World-class clustering at all levels: database, middleware, storage Add/Remove nodes on-demand Scale out as workload increases Rightsized i capacity planning - Smaller, standard machines running at higher utilization Defer equipment procurement - Exploit advances in hardware price-performance and energy efficiency 2009 Oracle 25

Quality of Service with Grid Computing Oracle Shared Instance Applications A, B, C, D, E et Workload Systematic high Quality of Service Reliability through redundancy Server A Server B Server C Server D Server E High performance and availability Load balancing Disaster recovery Failover Rolling upgrades Active-Active operation Predictable performance at any scale High availability every application gets HA 2009 Oracle 26

Most Complete Grid Stack in the Industry GidC Grid Computing in Alliers Middleware Application Grid - WebLogic Server - Coherence In-Memory Data Grid - JRockit Real ime - uxedo Database Real Application Clusters In-Memory Database Cache Sun Oracle Database Machine Storage Automatic Storage Management Exadata Storage Server Infrastructure Oracle VM Oracle Enterprise Linux Management Oracle Enterprise Manager 2009 Oracle 27

Case Study Oracle I Evolution to Cloud 2009 Oracle 28

Oracle I: Oracle Development Self-Service Private Cloud Job Mgmt Virtualization Developer Submit otifications Self-Service Service Application Priority Resource Mgmt Match Making Enterprise Manager Grid Control Metadata / Label Servers Hosts Results 2009 Oracle 29

Oracle I: Oracle Development Self-Service Private Cloud Implementation Overview: - Scope/Scale -Over 2600 physical servers with over 6000 Virtual Servers used by over 3500 developers - Activations Processing over 70 jobs per day, this translates into over 45,000 jobs processed supporting production and test requirements. - Utilization Rates on these servers averages 80% 7 days a week and can reach 90% during peak times. Results/Benefits: - Increase in development productivity - Self-Service system for creation of development environments - Cleaner code lines as environments are created quickly for more thorough testing/validation. - Physical Server/Environmental Reduction by 75% - Server/Apps Deployment reduced by 80% 2009 Oracle 30

Oracle I: Oracle University Dynamic Provisioning with Grid Computing Education Services 2,300 environments automatically provisioned weekly 1/10 th the hardware CPU utilization increased from 7% to 73% Floor space reduced 50% Power consumption reduced 40% Servers: Administrator ratio increased 10X Revenue/Server increased 10X 2009 Oracle 31

Oracle Cloud Computing Strategy Oracle Applications On Demand Public Clouds Private Cloud Oracle Applications SaaS PaaS IaaS I E R E I R A E SaaS PaaS IaaS Oracle echnology in public clouds Users Oracle Private PaaS 2009 Oracle 32

Oracle in Public Clouds Oracle Database, Fusion Middleware & Enterprise Manager supported on EC2 Amazon Machine Images (AMIs) Oracle Database Secure Backup to S3 Self-service Public PaaS based on Oracle VM, Oracle Enterprise Linux, Oracle Database RAC and Oracle WebLogic Server 2009 Oracle 33

Oracle Applications Deployed on Shared Services Private PaaS Industry Applications Shared Components Private PaaS Oracle Fusion Middleware Oracle Database Oracle Enterprise Linux Oracle VM Oracle Enterprise Manager 2009 Oracle 34

Oracle On Demand Flexible Deployment Options Multi-enant SaaS Single-enant SaaS Hosted & Managed Remote Management On-Premise Public Private Pay-per-use OpEx Off-premise Licensed CapEx & OpEx On-premise Managed by vendor Managed by Customer Vendor scheduled maintenance Customer scheduled maintenance 2009 Oracle 35

Summary 2009 Oracle 36

Oracle Leadership in Cloud Computing Oracle provides most complete, open and integrated t cloud vision, strategy and offerings in the industry Cloud is the evolution of capabilities Oracle has been working on for more than a decade: grid computing, virtualization, shared services and management systems Oracle offers: - echnology to build private clouds or run in public clouds - Applications deployed d in private shared services environment or via public SaaS 2009 Oracle 37

2009 Oracle Proprietary and Confidential 38