1 Copyright ©2011, Oracle. All rights reserved. Business Case for Exalogic and Exadata Considering which benefits to look for March | 2011
1Copyright ©2011, Oracle. All rights reserved.
Industry specific cover imageIndustry specific cover image
Business Case for Exalogic and ExadataConsidering which benefits to look for
March | 2011
2Copyright ©2011, Oracle. All rights reserved.
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• Revenue growth & profitability
– Quality of service
– Scalability
– Availability
• Agility
– Time to market
– Standardisation
– Performance
• Cost Savings
– IT Savings
– Cost per transaction/customer
– Usage based pricing
Three business requirements are typically impacting IT today
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The way IT experiences this is massively changing the way
IT is delivered with the requirements from business as the
driver and technology change as the enabler
• Controlling the cost as volumes grow and
availability demand increases
• Providing predictable services as
performance limits are approached
• Controlling operational risk as the
„headroom‟ reduces
• Preventing reputational risk from poor
customer experience or from breaching SLAs
• Avoiding non-compliance issues from ageing
hardware and software
• Resolving service incidents promptly as
infrastructure complexity increases
• Being agile to business needs
Key IT ChallengesDemand Vs. Capacity Forecast
Server upgrade?
More storage?
Faster storage?New architecture?
4
What next?
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The requirements for a new platform must be delivering on
all these points …
• Automate all operations of applications and databases
• Respond better to unforeseen customer events
• Deliver a more stable and predictable service
.. meet planned and unplanned business
demands?
• Lowest administration costs per instance for any platform
• Scale with demand
• Decrease data center costs
... reduce the cost per database/application instance to maintain/improve margins
• Provide value adding services to customer
• Increase the number of change windows
• Reduce downtime (planned and un-planned).. be agile to customer needs
• Deliver practically unlimited scalability
• Ensure performance is always delivered
• Handle all types of workload
... deliver business continuity for any growth and
performance scenario
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Building the new platform to sustain business
continuity should move you toward the cloud
SERVER1
SERVER7
SERVER2
SERVER3
SERVER4
SERVER6
SERVER5
Private
CloudIaaS PaaS
ITaaS
SaaS
Time
Consolidation Standardization IT as a Service Utility Computing
• Consolidate Servers
• Define SLA, build definitive
services library
• Organization of IT resources
to manage services
• Identify core technology ,
platform standards
• Standardize contracts
• Increase utilization and
virtualize resources
• Standardize technical
architecture, storage, servers,
network
• Services segmented by
customer deliverables –
Hosting, Operations,
Development
• Standardized operating
procedures
• Deploy monitoring tools and
scorecards for operations
• Virtualize technical
architecture, storage,
servers, network, VTL.
• Location agnostic to
leverage space and
available capacity on-line
• Auto-provisioning for
predefined environments
• Enable Service SLA‟s for
all services delivered
• Implement ITIL
• Automate ITIL based DC
processes
• Full elastic computing for
scaling on-demand
• IT as a Service
• Full elasticity with
automated provisioning
and de-provisioning
• Funded by a pay-per-use
utility model
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Cloud economy connects CapEx/OpEx with the use and demand
patterns of the business
Source: Oracle Insight Research
Return CostYear 1 Year 2 Year 3 Year 1 Year 2 Year 3
Traditional Data Center Solution Private Cloud Computing Solution
Pay upfront for
hardware, software as
well as for
implementation based
on projected demand
Investments are made
based on utilization and
demand patterns of use,
provisioned in virtualized
infrastructure
One of the advantages of private cloud computing model is that the investment is incurred in
the same period it is utilized. Cloud management implies demand driven computing capacity.
For CFOs, this means that investments track closer to return on assets
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0%
20%
40%
60%
80%
100%
Comparative Hardware Costs
75% Reduction in Hardware Costs
50% Reduction from
Consolidation
25% Reduction from
Improved Performance
0%
20%
40%
60%
80%
100%
Comparative Data Center Costs
60% Reduction in Data Center Costs
40% Reduction from
Consolidation
20% Reduction from
Improved Performance
0%
20%
40%
60%
80%
100%
Compartive Labor Costs
70% Reduction in Labor Costs
35% Reduction from
Consolidation
15% Reduction from
Improved Performance
20% Reduction from
Greater Manageability
0%
20%
40%
60%
80%
100%
Comparative Software Costs
30% Reduction in Software Costs
15% Reduction from
Consolidation
10% Reduction from
Improved Performance
5% Reduction from
Greater Manageability
For IT there are three primary value drivers that will be delivered
from driving towards the cloud Consolidation, Performance and
Manageability
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Building an database & application platform as a PaaS on
Exadata and Exalogic delivers on the promise of the cloud?
$
Number of applications
Traditional
silo approach
▼COST
▲QoS
▲SCALABILTY
▲COST
▼QoS
▼SCALABILTY
Server Virtualization (IaaS)
▼COST
▼QoS
▼SCALABILTY
Oracle Database &
Application Platform (PaaS)
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Investing In Private Cloud Yields Strong ReturnsUsing A “Model” With ~10,000 Employees And ~$1B In Annual Revenues And $30M IT Budget
$3M-5M freed-up cash from
reduced capital expenditure
$1M-$2M in deferring new
DCs and space requirements
in existing DCs
$1.5M reduction in operations
costs due to automation and
reduction in DC complexity
$1M reduction in energy costs
for increased utilization and
lights-out data center
Implementing private clouds creates annual recurring savings of up to $10M
KEY METRICS EXPECTED IMPROVEMENTS ESTIMATED BENEFITS
Source: Oracle Insight Analysis
Overall Average Best Practice Groups
0% 75%
30%IT Capital Costs
0% 50%
Site Infrastructure
Cost
40%20%
60%
0% 25%
Operating Expense15%10%
0% 75%
50%Energy Costs 70%
10
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Based on customer case studies our experience with Exadata
gives a significant saving on deployment and maintenance
Build From Scratch with Components
Reference Configurations
Take delivery of Oracle
Database Machine
Weeks to Months
Pre-implementationSystem sizing
Acquisition ofcomponents
Installation and configuration
Acquisition ofcomponents
Installation and configuration
Testing andValidation
Testing andValidation
Weeks to Months
Oracle Exadata Database Machine
Server Pool pre-configured
Faster deployment
Lower Risk
< 1 Week after Delivery
Testing and Validation
Configuration
With Exadata, Commonwealth Bank of Australia reduced DB deployment time
from 3 months to < 1 week
12Copyright ©2011, Oracle. All rights reserved.
The Commonwealth Bank is one of
Australia‟s leading providers of
integrated financial services
including retail, business and
institutional banking, funds
management, superannuation,
insurance, investment and broking
services. The Bank is one of the
largest listed companies on the
Australian Stock Exchange.
Use CaseCommonwealth Bank of Australia
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• Take Advantage of Complimentary Workload Peaks
• Reduced peak-to-trough variance
• Asset Consolidation
• Reduced variance allows each server to be run hotter
• Server utilisation has increased from <15% to 80+%
• Elasticity
• CPU resource can be taken from anywhere in the grid as needed
• Horizontal workload scale out – without changes to any application!
• Cost Reductions:
• Server reduction – improved green footprint
• Oracle license reduction
• Reduced data centre hosting charges
• Higher Availability - Every App Inherits:
• Load balancing
• Full component-level HA failover
• Standby DR – RTO of 10 mins
• Many apps would not implement these features – too expensive
Use CaseKey Business Benefits
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44% of CIO surveyed by Forrester indicated that they are
actively looking to build a private cloud in the next
couple of years
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Oracle Insight Is A Program That Help Our Top Customers In
All Stages Of The Technology Investment Lifecycle
Accelerate Technology
Transformation by Aligning
Project & Business Objectives
Align and Measure Technology
Initiatives Against Planned
Objectives
Establish the Business Case
and Roadmap for Technology
Investment
Continuously Unlock More
Value from Technology
Investments
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Oracle Insight Will As An Investment Help You To Plan And
Quantify A Shift to Exadata/Exalogic*
Oracle Insight
• A methodology focused on enabling greater customer
business value
• Drives business impact by helping view technology as
enablers of business value
• Helps build a compelling value proposition
• Assists with alignment with your executive team
Industry
Experience
Solution
Knowledge
Value
Analysis
* Availability based on qualification of each potential customer. For more information contact your local sales rep.
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Besides quantifying potential benefits of
modernization, we analyze and define the KPI’s to
monitor the modernization
Through our benchmark database we define target- and base levels for
performance and operations and use these as KPI’s for management to monitor
the infrastructure
18Copyright ©2011, Oracle. All rights reserved.
ITIL v3.0
COBIT
USMBOK
ISO 20000
TOGAF
Oracle Unified Method
SAS 70 Type I and II
Oracle Insight will select the right processes based on the challenges to be
resolved and dig deeper into those processes to uncover these improvements…
DC PLANNINGDC OPERATIONAL
DESIGNDC OPERATIONS
Services Planning
SLA Management Customer Care
Configuration and
Change Management
Performance and
Availability Management
Architectural Planning
Release Management Utilisation Management
Security ManagementProvisioning and Patch
ManagementInformation Lifecycle
Management
Virtual Machine
Server
Storage
Network and Facilities
Key Performance Improvement Opportunities Are
Identified Based On A Comprehensive Framework
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Thank You
Accept Nothing Less