Post on 31-Oct-2014
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The New Generation of IT Optimization and Consolidation
Platforms:
Results-Driven Enterprise Architecture
Timothy Davis
Director, Oracle Enterprise Architecture
Oracle Corporation
Oracle Enterprise Architecture
Oracle Enterprise Architecture
Agenda
• Results-Driven Enterprise Architecture
• EA Case Studies in IT Optimization
– Portfolio Rationalization
– Data Center Consolidation
– Shared Services / Cloud
• Q & A
Oracle and Enterprise ArchitectureResults-Driven EA, “A Practical Approach”
• Intrinsic Business Alignment
– Deliver a financial and operational business case
– Develop IT roadmap to match business expectations
– Design-in governance and management visibility
• Value Add to IT
– Shares proven EA artifacts and EA services
– Focused on holistic implementation, not just products
Oracle Enterprise
Architecture Framework
Oracle Architecture
Development Framework
Oracle Enterprise Architecture Framework & Process
Pull Out Sample Artifacts
Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only. 5
Oracle’s Approach to Enterprise ArchitectureBuilding a Sustainable Architecture
Architecture Vision
• EA must be driven by business strategy and objectives
• Business leaders own the EA
• Establish enduring architecture principles
Current State
Capabilities
• Assess capabilities and architecture maturity
• Focus on capability gaps and the future state
• Iterate; define just enough models, just in time
Future State
Architecture
• Be practical and resourceful
• Reuse best practices and reference models
• Apply architecture principles; standardize and simplify
Strategic Roadmap
• EA is a journey; segment, iterate and collaborate
• Focus on speed-of-delivery and maximizing business value
• Manage risk
Enterprise ArchitectureGovernance
• Steer efforts via practical, implementable guidance
• Monitor & measure lifecycle performance/business results
• Implement continuous process improvements
6© 2011 Oracle Corporation – Proprietary and Confidential
Oracle Global TransformationRapid Acquisitions for a Best-in-Class Portfolio
Enterprise Content Management
Performance Management
Identity & Access Management
Middleware Platform and Management
Business Intelligence
Data Integration
Operating Systems Systems Management Virtual Machines
(pending)
(pending)
over 70 acquisitions since 2004 … and counting
7
Oracle’s own Transformation
Globalized Operational Excellence Key Business Drivers
Lower Costs Better Information, Governance
• Global information visibility
• Global consistency of process, policy & data
• Strong internal controls
• Easier compliance
• Fewer data centers
• Self service processes
• Labor & transaction cost efficiencies
• Shared service centers
• Off-shoring
Increase Speed
• Streamline change management
• Fast integration of new acquisitions
Improve Customer Service
• Improved quality and service
• One customer experience
Oracle IT Consolidation EA Roadmap
63 Financial databases 1 Financial single global instance
1 IT Support single global instance
60 IT Support databases
97 Email servers on 120 databases
1 cluster of 2 Email servers and 4 databases
501 Education servers 296 Education servers
32 IT Support servers, 600 test servers
2 IT Support servers, 30 test servers
40 Education registration systems
1 Education registration system
27 IT Support applications 1 IT Support application
>1000 applications<100 applications – standardized on E-Business Suite
40 Data Centers
2300+ Staff
1 Global IT & Governance Model
2 Data Centers + 1600 Staff
Few standard business processes
Standardized core business processes
Business Architecture
Data Architecture
Technical: Application &
Services Architecture
Technical: Infrastructure Architecture
“AS - IS” State “TO - BE” State
9© 2011 Oracle Corporation – Proprietary and Confidential9
Business
Architecture
Bus/IT Strategy Provide LOB and
Country autonomy.
Allow for customizations
as demanded by BU’s.
IT Simplification,
Standardization &
Consolidation
One Global IT
Consolidate Data
Centers & Bus Proc.
Unify customer-facing
processes and customer
data by implementing
Global CRM (GCM).
Implement Global BI. Move
from BI tools to pre-
packaged BI solutions for
sales, mktg, & financial
analytics accessing one Corp
WH.
Bus Operating
Model / EA
Maturity
Replicated /
Business Silos
Unified /
Standardized
Technology
Unified /
Optimized Core
Unified /
Dynamic Strategy
Business
Objectives
Maximize ROI at an
LOB/Country level.
$1B Cost Reduction
Foundation for Growth
ERP Standardization
Fix RevRec issues
Global Campaign to
Opportunity to Quote
customer-facing process
One Customer View
Foundation for BI
Better marketing, sales, and
financial decision making
Application
Architecture
Architecture
Strategy
Customize & optimize
local apps for BU needs
Standardize on EBS
Implement Global
Single Instance via
Apps Rationalization
Standardize on Siebel
CRM 8.0. Implement
GCM. Integrate BP for
Opportunity (Siebel
CRM) to Quote (EBS)
Create BI solutions using
OBI EE/Hyperion with Siebel
CRM, EBS Suite, and ODI.
Implement Global BI using a
phased approach.
Information
Architecture
Architecture
Strategy
Maintain data for BU
needs. Rollup data to
corporate level as
required.
Implement Global Info
System via Info
Rationalization and DW
centralization
Provide one source of
truth Customer DW that
integrates data from
multiple sources
Provide a Global Corporate
WH with data feeds from EBS
GSI, CRM GSI, and other
sources.
Technology
Architecture
Architecture
Strategy
Optimize platform for
individual applications &
data access via tuning
configurations
Move to shared
services model.
Standardize H/W &
S/W. Operationalize.
Optimize platform in
Austin Data Center on
Linux.
Optimize platform in Austin
Data Center on Linux and
RAC. Secure data.
Current State OperationalExcellence Global CRM BI for All
Oracle’s Strategic Roadmap1998 1998 - 2003 2006 - 2008 2008 - 2011
Architecture Center of ExcellenceDelivers Consistent EA Execution
• Across Projects
• Across Technology
• Across Teams
ArchitectureCOE
Program
Management
StrategicDirection
Management Reporting
Architecture& Expertise
StrategicNeeds
Project
Teams
Oracle Has Been Guiding EAOracle EA Solution Engagements
• Re-engineer core business processes
• Master data management
• Improve analytics & information quality
Information Architecture
• Refine EA role & responsibility
• Organize overall accountability
• Bridge business & IT strategy
Enterprise Architecture Methods
• Refine capability models and metrics
• Connect business model to EA vision
• Guide industry best practices
Business Architecture
• Rationalize portfolio & roadmaps
• Guide services, EDA & BPM strategy
• Applications evolution roadmap
Applications Architecture
• Server consolidation (RAC-Exadata)
• Enterprise security (DB-Identity)
• IT-as-a-Service (DB-aaS, PaaS, IaaS)
Technical Architecture
• Establish processes & metrics
• Oversee governance operations
Governance Architecture
WHAT IS
“IT OPTIMIZATION?”
Roadmap to Strategic AdvantageDriven by Business Strategy and Operating Model
Business
Silos
Standardized
Technology
Optimized
Core
Business
Modularity
Source: Copyright MIT Sloan Center for Information Systems Research. Enterprise Architecture As Strategy, Jeanne W. Ross
IT Optimization
Build an
effective and
efficient IT
platform for
execution
Standardize
core
processes and
information
Rapidly
innovate and
propagate for
strategic
impact
Phases of IT Optimization
• IT as a “Service”
• Rapid provisioning
• Lower costs
• Faster project turnaround
• Greater focus on business
PaaS
SaaS
IaaS
IT as a
Business
Shared Services /
Cloud Computing
• Peak load sized
• Difficult to scale
• Difficult to change
• Expensive to manage
• Complex and risky
FBT PAY GNTS
TRDS
Client
Customs
RREIPS Integrated A/C
Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client StaffRemote
StaffTAX
AGENTS
GCI
Call Centres
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Refmaterial
Bus. Intel
NTS A/c
BEP
CDCCCWMS
BANK
DDDR
1
Data…….
Penalty
Business
IVR
1
FBT PAY GNTS
TRDS
Client
Customs
RREIPS Integrated A/C
Refunds
RBADef
PaymentsExcise
CR
PKI
ECI ADD AWA ELS
Client StaffRemote
StaffTAX
AGENTS
GCI
Call Centres
WOC
CCD
TASS
StaffPhone
ComplianceStaff
BOA
Refmaterial
Bus. Intel
NTS A/c
BEP
CDCCCWMS
BANK
DDDR
1
Data…….
Penalty
Business
IVR
1
IT Silos
Goals:
• Pools of resources
• Consolidated
• Better productivity
• Higher QoS
• Improved IT agility
• Improved security and management
Virtual and Consolidated
Infrastructure and Services
Optimized
Integration Layer
Security Layer
Service Group A
Data Grid
Application Grid
Service Group B
Data Grid
Application Grid
• Standardized interfaces/systems
• Lower costs for license and support
• Better leverageof IT resources/skills
• Reduced IT project time/costs/risks
Rationalized
IT Portfolio
Standardized
Point to Point Integrations
SecuritySecuritySecuritySecurity
Product Product
B2B B2BPortal PortalPortal
CRM
ERP
CustomerCustomer
CRM
ERP
CRM
ERP
CRM
ERP
Copyright ©2010 Oracle Corporation. All rights reserved. For Internal Use Only.
“Architecture” Guiding Principles
Rationalization
Standardization
Data Center and System Optimization
Resource Pools
Consolidation
Enterprise Security
Enterprise Management
Shared Services/Cloud
Computing
IT as a “Business”
Customer Goal Driven
Agility
Elasticity
IT Optimization: EA ProcessRelying on a Proven Methodology
Phase I:Portfolio Rationalization
Phase II: Data Centerand System Optimization
Phase III: Shared Services/Cloud Computing
Str
ate
gic
Bu
sin
es
sa
nd
IT
Ali
gn
me
nt
Aligned
Architecture
Vision
IT Optimization: EA ProcessRelying on a Proven Methodology
Phase I:Portfolio Rationalization
Phase II: Data Centerand System Optimization
Phase III: Shared Services/Cloud Computing
Str
ate
gic
Bu
sin
es
sa
nd
IT
Ali
gn
me
nt
Aligned
Architecture
Vision
Case Study: Financial Services
Portfolio Rationalization Scope: Re-engineering the Core Information Architecture
• Reduce closing cycle down from 35-50
days
• Complete re-engineering of processes
• Ensure data reliability & governance
• Provide basis for agility and innovation
Business Goals
• Hardcoded accounting rules
• Complex, heterogeneous portfolio
• No centralized data quality strategy
• Never rationalized portfolio
Challenges
Kick Start EA Principles
Information
as an Asset
Information needs to be managed and
treated the same way as physical asset.
Value and Risk
Classification
A classification of an information asset’s
value and risk should be the foundation
on which its management and
governance is based.
Single Version
of Truth
Data should only be collected once
electronically within a single interface,
and shared across systems.
Minimum Quality Quality requirement needs to be set for
information assets.
Information has
Authoritative
Sources
All business data needs to have an
authoritative source.
Information
Security
Information needs to be secure
throughout its lifecycle.
Information
Accessibility
Information is accessible for users to
perform their functions.
Data
Stewardship
Every data item has one person or role
as ultimate custodian.
Metadata Driven Information architecture needs to be
metadata driven.
Measurement
for Quality
Quality of data will be measured.
Principle Description
Leverage Proven Architectures
Effective GovernanceExample: Institutionalize Accountability and Governance
IT Optimization: EA ProcessRelying on a Proven Methodology
Phase I:Portfolio Rationalization
Phase II: Data Centerand System Optimization
Phase III: Shared Services/Cloud Computing
Str
ate
gic
Bu
sin
es
sa
nd
IT
Ali
gn
me
nt
Aligned
Architecture
Vision
• Maximize clustering and virtualization
• Increase hardware utilization
• Standardize IT management processes
• Reduce diversity across IT: capital expenses, skills
• Reduce diversity, complexity, and risk
• Simplify regulatory compliance
• Increase automation for QoS and IT productivity
• Enable consistency and accountability
Data Center and System Optimization“Architecture” Guiding Principles
Resource Pools
Consolidate
Enterprise
Security
Enterprise
Management
Resource Pools Across Tiers
• Business Demands Agility– Deliver new resources quickly
– Adjust as requirements change
• Multiple Resources Must Be Aligned to Meet Service Levels
– Performance and Availability
• An Engineering Commitment– Optimal flexibility and value
User Desktops
Portals & Web Servers
Application Servers
Middleware
Database / Info Mgmt
Hardware / Platform
Disk / Storage
Security
Management
Helping Customer EAs Model Solutions
Case Study: Financial Services
Data Center Optimization Scope: Computing Platform Overhaul
• IT unresponsive to business competitive
needs
• Streamline business process automation
• Integrated analytics
• More leveraged IT spend
Business Goals
• Ongoing M&A and independent budgets
• Dictated by business what to buy
• Project driven culture, high redundancy
• Reduce IT storage and platform costs
• Coordination of large IT
Challenges
EXECUTIVE INSTRUCTIONS:
SAVE US MONEY NOW !
Operational RecommendationsEvolve to a Comprehensive IT-as-a-Service Model
Infrastructure Simplification
Security and Identity
Oracle Apps as a Service
Infrastructure as a Service• Reduce storage requirements
• Maximize server utilization
Analytics as a Service
• Rationalize analytics
• Standardize engines
Applications as a Service
• Rationalize portfolio
• Standardize CRM and ERP
Security as a Service
• Standardize Identity Management
• Standardize Data Security
Analytics Consolidation
Data Center TransformationChanging the Operational Model
Serv
ers
Sto
rag
e
1,981
WebLogicServers and Open Source
1,158
DatabaseServers*
2,662 Terabytes
Enterprise Storage(25% Annualized Growth Rate)
Sim
plifi
ed
Infr
as
tru
ctu
re
Exalogic
Middleware
Private
Cloud
49
ExalogicServers
Exadata
Database
Private
Cloud
86
ExadataServers
Future State
*Target 50% of Current Oracle Environment
Current State
Infrastructure Component Current Target Future Reduction
Database Servers 2,270 1,158 86 93%
Middleware Servers (WebLogic and Open Source) 2,251 1,981 49 97%
Storage (Terabytes) 2,662 2,662 703 74%
703Terabytes Storage
“The Art of the Current State”
Financial Recommendation More than Traditional Analysis, added an EA Focus
IT Optimization: EA ProcessRelying on a Proven Methodology
Phase I:Portfolio Rationalization
Phase II: Data Centerand System Optimization
Phase III: Shared Services/Cloud Computing
Str
ate
gic
Bu
sin
es
sa
nd
IT
Ali
gn
me
nt
Aligned
Architecture
Vision
Case Study: State Government
Shared Services and Cloud Computing Scope: Creation of a New Business Model
• Reduce IT costs Outsource IT
• Chargeback model for IT services
• Standardize shared services offerings
• Thorough deployment of ITIL
Business Goals
• Agency autonomy and independence
• Budget constrained IT staffing
• Over populated data centers
• Many legacy, redundant services
• Lack of standards and methodology
Challenges
IT OPTIMIZATION
Rationalize OptimizeIT-as-a-Business
Source: MIT Sloan Center for Information Systems Research
Future State Choices
State Cloud Service Provider
Business ModelS
UP
PLY
DE
MA
ND
• Agencies
• Vendors
• System Integrators
• Auditors
• Agencies (Federal, State, and/or Local)
• K-12
• Citizens
• Cloud Consumer Model
• IT Abstraction
• Shared Services
• Value-added Svcs
• Predictable Cost
• Elastic Computing
• (ITSM ) Best Practices
• IT Governance
• Security & Privacy
• Availability and Continuity
Revenue through Cost Recovery model per OMB A-87
• Customer Acquisition, Onboarding & Provisioning
• Value-added Services
• Operational Support (Change, Release, & Configuration Mgmt)
• Services Portfolio Mgmt
• Business Continuity
• Metering & Chargeback
• IT Ops Staff
• Service Desk
• Mktg, Sales, Finance
• Cloud Data Center(s)
• Partners (SI, ISV)
Value-driven cost structureper OMB A-87
• Private Cloud
• Remote access
• Partner extranet
• Customer Relationship Mgmt
• Communities
• Tech Support / Service Desk
• Enablement programs
Oracle Architecture Development ProcessArchitecture Vision
Oracle Architecture
Development Process
Chargeback
Provisioning
Service
Request
User
Infrastructure-as-a-Service
Database-as-a-Service
FMW-as-a-Service
Ora
cle
Vir
tua
l A
ss
em
bly
Bu
ild
er
Oracle Enterprise Manager and Ops Center
Exadata
OVM
COTS
App
App Svr
DB
OVM
COTS
App
App Svr
DB
OVM
COTS
App
App Svr
DB
OVM
DB DB DB
OVM
App
App Svr
OVM
App
App Svr
App
App Svr
Load Balancer
OVM
COTS
App
App Svr
OVM
COTS
App
App Svr
OVM
DB
Billing and Revenue Management
IT Service Management
Oracle Architecture
Development Process
Oracle Architecture Development ProcessFuture State
Oracle Architecture
Development Process
Oracle Architecture Development ProcessBusiness Case: Enabling A Simple Service Catalog
Block Size Core Memory Storage Workloads Function
Small 3 4G 1TB OLTP Dev
Medium 6 8G 2TB ERP, HRMS Dev, Test,
Prod
Large 12 16G 4TB Data
Warehouse
Prod
Standardized Per Use Service
Additional Per Use Services
Upgrade Storage I/O Storage
Option 1 XX-YY GB 2 TB
Option 2 YY-ZZ GB 4 TB
Option 3 ZZ-AA GB 8 TB
Oracle Architecture
Development Process
Oracle Architecture Development ProcessBusiness Case: Compelling Ongoing Economics
Offered Internal Chargeback Option
Cost Component TCO %Business
as Usual
DBs on
Blades
11g on DB
Cloud
Machine
Database License 10% $10 $9 $8
Storage 22% $22 $22 $7
Network (HW+Pipe) 13% $13 $13 $3
Environmental 10% $10 $6 $1
Staffing 40% $40 $30 $20
Overhead 5% $5 $5 $5
Total Cost 100% $100 $84 $44
Attract New Customers with the Best Prices!vs.
1 Terremark Investor Relations Presentation
1
IT Optimization: EA ProcessRelying on a Proven Methodology
Phase I:Portfolio Rationalization
Phase II: Data Centerand System Optimization
Phase III: Shared Services/Cloud Computing
Str
ate
gic
Bu
sin
es
sa
nd
IT
Ali
gn
me
nt
Aligned
Architecture
Vision
How Oracle Can HelpLeverage Oracle’s Portfolio of EA Assets
People
Certified Architects,Experienced Advisors
Process
Practical Approach,Proven Methodology
Portfolio
Best Practices,Proven EA Artifacts
Next StepsCome Talk to Us
• Meet our Enterprise Architects
• Use our EA & Architecture Artifacts
– Library of EA Resources
– All things Oracle & EA, www.oracle.com/EA
• Learn about Oracle EA Services– Description of EA Services
– Articles about Oracle’s EA Experiences
Q&A