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Operating the Cloud to Deliver Business Value

Operating the Cloud to Deliver Business Value. Elwood Coslett, Intel IT Director of Data Center and Cloud Engineering September 1, 2011. Benefits of Cloud – Fact or Fiction?.

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Operating the Cloud to Deliver Business Value

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  1. Operating the Cloud to Deliver Business Value Elwood Coslett, Intel IT Director of Data Center and Cloud Engineering September 1, 2011

  2. Benefits of Cloud – Fact or Fiction? Microsoft BPOS Downtime Illustrates the Risks of Cloud Computing”CIO Insight, May 16, 2011 Amazon Outage Sparks Frustration, Doubts About Cloud InfoBoom, April 26, 2011 Simply put, cloud computing has the potential to turn the economics of enterprise IT upside down, offering key business advantages from a capital and operations-related expense perspective. eWeek, Nov 22, 2010 We are already well on the way with this initiative. The private cloud concept brings with it the benefits of agility, accessibility, efficiency, and the capability to scale while addressing the perceived risks in the public cloud environment today. Dam Gerrard, CIO Avis Europe Cloud Computing Will Surpass the Internet in Importance. CIO Magazine, July 9, 2010 For a few years now, everything we’ve heard about cloud has mostly been hype. It’ll be the next transformational leap for technology, the pundits said. It will cut complexity, improve flexibility and make IT more strategic to business, the vendors said. CIO Magazine, April 11, 2011

  3. Benefits of Cloud – Fact or Fiction? FACT The benefits of cloud are real. $17M in savings to date from our internal cloud effort Microsoft BPOS Downtime Illustrates the Risks of Cloud Computing”CIO Insight, May 16, 2011 Amazon Outage Sparks Frustration, Doubts About Cloud InfoBoom, April 26, 2011 Simply put, cloud computing has the potential to turn the economics of enterprise IT upside down, offering key business advantages from a capital and operations-related expense perspective. eWeek, Nov 22, 2010 We are already well on the way with this initiative. The private cloud concept brings with it the benefits of agility, accessibility, efficiency, and the capability to scale while addressing the perceived risks in the public cloud environment today. Dam Gerrard, CIO Avis Europe Cloud Computing Will Surpass the Internet in Importance. CIO Magazine, July 9, 2010 For a few years now, everything we’ve heard about cloud has mostly been hype. It’ll be the next transformational leap for technology, the pundits said. It will cut complexity, improve flexibility and make IT more strategic to business, the vendors said. CIO Magazine, April 11, 2011

  4. Intel IT Vital Statistics 6,300 IT employees56 sites, 25 regions >90,000 Intel employees143 sites, 62 regions91 Data Centers~75,000 servers, 458,000 square feet >105,000 Devices>90K PCs (80%+ mobile), >14,000 Handhelds Source: Information provided by Intel IT as of May 2010

  5. Intel Data Center Profile D Expanded HPC Solutions Design O Enterprise Private Cloud Office M Factory Automation Manufacturing E Enterprise Private Cloud Enterprise S Enterprise Private Cloud Services Cloud is Key Strategy for Intel IT

  6. Intel’s Private Cloud Journey Past (2009) Current (2011) Future Goals¹ Distinct Clouds Federated Clouds Traditional Office & Enterprise DesignGrid Office/Enterprise/Services Design Public Public ~12% virtualization > 50% virtualization ~75% virtualization Server Procurement Manual Approvals Months to Service Server Provisioning On Demand Self Service Hours to Service Service Provisioning Fully Automated, Elastic Minutes to Service Mid-Way Through Our Journey: Learned a Lot, Challenges Ahead 1 Intel IT future state goals – subject to change – as of June 2011

  7. Business Benefits ofIntel’s Private Cloud • Immediate Provisioning • Higher Responsiveness • Lower Business Costs • Flexible Configurations • Secured Infrastructure Improving the Velocity and Availability of IT Services

  8. Measuring Impact Through a New IT Operations Framework Velocity Efficiency Quality Capacity

  9. It All Starts with Velocity Private Cloud Velocity Efficiency Quality Capacity

  10. Intel IT Operational Framework Applied to Cloud Computing Velocity Reduced provisioning time from 90 days to 3 hours – now on the way to minutes Efficiency Server consolidation at a 20:1 ratio Capacity Shift from capacity planning to demand forecast model Quality Standard configurations improved consistency and enabled automation

  11. Internal Cloud Profile VM Requests by Source Applications on Internal Cloud VMs by Environment

  12. Best Practice Lessons from Implementing Intel IT’s Cloud Cloud Terminology Understand terminology and communicate Leadership Support Clear business goals. Updated policy. IT-Business Partnerships Business process changes are pervasive Set Short Term Priorities Pervasive virtualization + faster provisioning Manage With Data P2V ROI, measured services, BI collection, Server Sizing …

  13. What’s Ahead for Cloud at Intel? Past (2009) Current (2011) Future Goals¹ Distinct Clouds Federated Clouds Traditional Office & Enterprise DesignGrid Office/Enterprise/Services Design Public Public • Pervasive Virtualization (75%) • Enterprise App Virtualization • Secure Virtualization • Larger Pools in Fewer Data Centers 80% Effective Asset Utilization Increase Business Velocity Zero Business Impact • On-Demand Self-Service the Norm • Provision VMs within Minutes • Innovative Idea to Production <day • External Cloud for Burst Demand • Automated Sourcing Decisions • Reduce MTTR • Increase Availability • Automated, End-to-End Service-Managed Cloud 1 Intel IT future state goals – subject to change – as of June 2011

  14. Current Challenges Asset Management and Utilization Demand Forecasting and Capacity Planning IT Workforce Transformation

  15. Asset Management & Utilization • Be Cognizant of Performance Saturation • As asset utilization increases, service performance risks constraints, availability and SLA can be risked • Understand Degrees of Utilization • Customer Allocation view is different from customer usage • Our goal is 80% effective asset utilization • An Integrated Management View is Critical • The performance bottleneck may not be where you think • Requires improved metric visibility across all resources

  16. Integrated Reporting Drives Better Decision-Making Holistic Business Intelligence Systems for IT Operations is Vital App 2 App 1 App 3 100% 89% 81% 100% UtilizationReports 1 49% 51% 43% 36% 38% 22% 0% CPU CPU CPU Memory Storage Storage Storage Memory Memory Has Driven Incremental IT Investments in Storage (SSDs) and Network (10GbE) Upgrades 1 Intel IT internal Reports as of June 9, 2011

  17. Capacity Planning is Shifting to Demand Forecasting Old Way: Built to Order. Customer asked for infrastructure, we reviewed, approved, ordered, deployed, tested, then delivered New Way: On Demand Self-Service requires having capacity available anticipating demand and consumption Time to service =3 hours (soon to be minutes) Time to service =3 months Challenge: Quicker Provisioning Requires Better Visibility into Future Demand

  18. IaaS Demand Forecasting at Intel • Supplying Standard Configurations • Accelerates ability to add new capacity • Creating Safety Stock Inventory • Enables immediate provisioning • Predicting Demand & Consumption • Planned IT physical to virtual migrations • Run rate consumption through on-demand portal • User forecasts through an new business process Apply Supply Chain Concepts to Manage Capacity

  19. IT Workforce Transition Before: Future: New: Business Service Owner DB Admin ERP Collaborative Operations Team with end to end view of cloud solution Storage Network Security Server New IT Team Incorporates Breadth and Depth of Service

  20. Automation Impacts Workforce Also Was ManualProvisioning 3 months Is Automated Self-Service Provisioning 3 hours IT Workforce Focused on Activities with Highest Value

  21. Intel IT Private Cloud Re-Cap Align IT Strategy to Business Needs Cloud Transition is a Multi-Year Journey Business Benefit will Generate Value

  22. Resources for You Over 250 Global IT leaders representing over $100B in annual IT spend • Engage with ODCA • Learn about newly released Usage Models • www.opendatacenteralliance.org • Learn more about IT@Intel Best Practices • www.intel.com/it

  23. Thank You More from Intel IT available at www.intel.com/IT

  24. Planning Tool and Capacity Reports Demand forecast Budget planning Allocation Source: Intel IT internal IT capacity reports June 2011 CapacityReports

  25. What’s Ahead for Cloud at Intel? Past (2009) Current (2011) Future Goals¹ Distinct Clouds Federated Clouds Traditional Office & Enterprise DesignGrid Office/Enterprise/Services Design Public Public ~12% virtualization > 50% virtualization ~75% virtualization Server Procurement Manual Approvals Months to Service Server Provisioning On Demand Self Service Hours to Service Service Provisioning Fully Automated, Elastic Minutes to Service Mid-Way Through Our Journey: Learned a Lot, Challenges Ahead 1 Intel IT future state goals – subject to change – as of June 2011

  26. Our IT Goals – Cloud Computing 80% Effective Utilization Efficiency through Federation • Pervasive Virtualization (75%) • Enterprise App Virtualization • Secure Virtualization • Larger Pools in Fewer Data Centers • On-Demand Self-Service the Norm • Provision VMs within Minutes • Innovative Idea to Production <day • External Cloud for Burst Demand • Automated Sourcing Decisions Increase Service Velocity Agility through Automation Zero Business Impact Availability through Service Transformation • Reduce MTTR • App Design for Failure • Increase Availability • Automated, End-to-End Service- • Managed Cloud Automated, Managed Cloud Services Becomes the Norm

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