Database, Server & Process Consolidation: Oracle Case Study New York City Technology Forum
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Transcript of Database, Server & Process Consolidation: Oracle Case Study New York City Technology Forum
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Database, Server & Process Consolidation:
Oracle Case StudyNew York City Technology ForumNovember 1, 2005
“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”
Brad ColeSales Engineering ManagerOracle Public SectorOracle USA
Agenda
Market Trends & Business Challenges
Consolidate & Simplify IT
Standardization of Processes
Shared Services
Accountability and Security
Keys to Success
Leveraging our Experience
Q & A
The Topic
Oracle embarked on a journey to consolidate all of our production Email, ERP and CRM systems. Our old "model" of separate geographically based systems simply couldn't provide the corporation with the information we needed to run our business.– How many people are employed by Oracle?– How much of what product did we sell today?
Rolling Countries into the Global SSCPhase One – Local Disparate Systems
Market Trends
Consolidation of Systems
Standardization of Processes
Move to Shared Service Centers
Focus on Security
Corporate Compliance
Do More With Less…
Business Challenges
Multiple Data Centers
Multiple Databases
Multiple Environments
Variety of Applications Deployed
Variety of platforms and Operating Systems
Inconsistent Usage of Applications and Business Practices
Multiple Support Groups
Transactional Vs. Informational Systems
Consolidate & Simplify IT
Why Consolidate & Go Global?
It’s all about INFORMATION– Quality – Availability/Access
Improving Service
Reducing costs– Hardware– Facilities– Headcount
Applications IT: Organization IT organization
– Business processes, solutions and support by LOB (Marketing, Sales, Finance, Support, Education, Consulting, HR)
Process Definition Solution Design Functional Support Implementations
– Systems Environments Performance Tuning Technical Support Data Migrations Patching
– Strategy, Planning and Operations– Applications Integration and Architecture
Cross LOB Products and functions (workflow, imaging, etc.)
Types of Consolidation
Each type of consolidation provides increasing levels of return– Hardware/System Services – Software/Databases – Business Processes – Shared Services/Process Administration
Consolidate As Much As Possible!
Oracle Case Study: Email “Before”97 Servers Worldwide; Multiple Domains
1997
• 24 x 7 staffing per center• Duplication of tasks• Servers underutilized• Data replication
ORACLE
AE NODE1AR NODE2AT NODE3AU NODE4BE NODE5BR NODE6CA NODE7CH NODE8CL NODE9CN NODE10CO NODE11CR NODE12CZ NODE13DE NODE14DK NODE15ECE NODE16ES NODE17FI NODE18FR NODE19GR NODE20HK NODE21HR NODE22HU NODE23ID NODE24IE NODE25IL NODE26
NODE60NODE61NODE62
NODE77NODE78NODE79NODE80NODE81NODE82NODE83NODE84NODE85NODE86NODE87NODE88NODE89NODE90NODE91NODE92NODE93NODE94NODE95NODE96NODE97
NODE63NODE64NODE65NODE66NODE67NODE68NODE69NODE70NODE71
NODE
57
Oracle Case Study: Email “After”Single 3xServer Cluster; Single Domain
• Saved $13M first year, $11M subsequent years • Easier administration • Improved availability, reliability• Reduced hardware costs
Established 1999
Started with . . . . . . . . . . . . . . . . 65+ (70+) instances (ERP)
January 2001 . . . . . . . . . . . . . . 20 instances (ERP)
January 2002 . . . . . . . . . . . . . . 10 instances (ERP)
January 2003 . . . . . . . . . . . . . . . 3 instances (ERP)
July 2003 . . . . . . . . . . . . . . . . . . 2 instances (ERP)
January 2004 . . . . . . . . . . . . . . . 1 instance (ERP)
October 2004 . . . . . . . . . . . . . . . 1 Suite instance (ERP & CRM)
June 2005 . . . . . . . . . . . . . . . . . 1 Suite instance (w/PeopleSoft)
Oracle’s Global Consolidation(Business Systems - ERP & CRM => GSI)
Oracle’s Global Single Instance (GSI) System Architecture
GSI: Global Single Instance Data Statistics 341 Million GL lines 374,000 People (all types) 1.45 Million Customers 307,000 Vendors 7.3 Million AR Invoices 42.7 Million AR Invoice lines 11 Million AP Invoices 4.7 Million Sales Orders 40.7 Million Sales Order lines 208,000 Projects
Linux in Production
Middle Tier 2002 Today
Hardware Sun Dell
# of Machines 5 54*
CPU’s per Machine 16-24 2
Speed of CPU’S 450 Mhz 3.06 Ghz
Approximate Total Cost $750,000$150,000*
Performance X 2X-3X
Middle Tier 2002 Today
Hardware Sun Dell
# of Machines 5 54*
CPU’s per Machine 16-24 2
Speed of CPU’S 450 Mhz 3.06 Ghz
Approximate Total Cost $750,000$150,000*
Performance X 2X-3X
* Replaced Original 5 Sun’s with 18 Linux boxes
System Configuration - GSIAP
Database Server:– 4-node RAC– 4 Sun 25K Machines– 144 X 1.2GHz CPUs– 576GB of Memory– EMC Disk (7 TB)
SGA:– 15.8 G total– Buffer Cache 9.5 GB– Shared Pool 6.4 GB
Middle Tier:– 54 Linux middle tier
machines– Dell 2650– 4 x 3.06 GHz – 6G Memory– NetApps Filer Cluster
Load Balancing:– BigIP
Application Code (Snap Mirror)
Oracle Home (Rsync)
Database(Dataguard)
Disaster Recovery
Network / Big IP / DNS(Manual)
Austin Data Center Colorado Springs Data Center
Standardization of Processes
Advantages of Standardized Processes
Reduced processing and per transaction costs
Ability to leverage best practices from different groups/regions
Better (smarter) information– Comparing like data
Better support across common processes
Simplification through standardization
Defining Standardized Processes
Organization and Approach– Business
Global Process Owners (GPO) Identify process flows working with IT Divisional (regional) owners (DPO) Prioritization within Area
– Applications IT Global Solution Owners (GSO)
Mirror Business Process Organization (GSO/DSO)
– Steering Committees Communication, Progress Review and Decision Making Leadership & Escalation Resolution…Not Management by
Committee
Shared Services
Advantages of Shared Services
Increase Efficiency, Control, and QualityEfficiency, Control, and Quality• Blend of Centralization and Decentralization• Centralized Control of Key Areas (Accounting)• Focused Professionals Delivering Higher Quality
Services
• Lower CostLower Cost• Elimination of Redundant Structures• Economies of Scale• Move to Low-cost Cities, States, or Countries
Oracle’s Shared Service Functions
Tactical Purchasing
Accounts Payable
Order Administration
Accounts Receivable
Cash Management
Revenue Accounting
Revenue Recognition
General Accounting
Collections
Data Librarians– Customer Data
What Has Oracle Accomplished?
Previous New
Goal $ Mil Goal $ Mil
Consolidate IT $200 $250
Sell Side $550 $1,450
Buy Side $150 $200
Inside $100 $100
Total $1,000 $2,000
Note: Based on Oracle estimates.
Oracle’s $2 Billion Dollar Savings Target
The Oracle Experience
Achieved through consolidation, simplification, global processes, shared services and the use of standard product
HR StaffingThe Oracle Self Service Story
HR Administrator Ratio 1:1000 1:2000
HR Professional Ratio 1:350 1:600
Overall HR:Staff Ratio 1:125 1:225
HR Operations Staff 40 9
Support DeliveryThe Oracle Story - a 3 year comparison
Phone Volume 517,000 66,000(per Qtr)
Online Requests (% of all requests) > 78%
Headcount 14%
Total Support Activity 200%
Cost per Request 60%
Resolution Time
41%
Accountability and Security
IT Is Accountable To Management, Shareholders and The Public
To CEO and Board of Directors
To Employees
To the SEC or other regulatory agencies
To Agency heads and citizens who require services
To Taxpayers who fund programs
Standard Processes and Shared Services Increase Visibility of Operations
System Security
Consolidated System Benefits– Fewer Control Points Leads to Better Control– Less to Monitor Means More Detailed Monitoring– Fewer People to Maintain and Access– Single Set of Technology to Support & Leverage– Less Expensive and Complex for Disaster Recovery
Improved Control, Improved Monitoring, Simplified Infrastructure, Less Exposure
=
Improved Security!
Keys to Success
Keys to Success
Obtain & leverage executive/senior management commitment
Build a realistic plan
Organize centrally
Simplify and Consolidate as much as possible
Automate and centralize business processes
Deploy standard, out of the box products – Don’t customize, extend if necessary
Leverage shared services where appropriate
Don’t underestimate the hardest part-MANAGING CHANGE!
Leveraging Our Experience
Greatest Business Insight
• Embedded analytics, pre-built intelligence
• Deep and wide operational dashboards
• Industry-based KPIs
• Business intelligence tied to actions
• Open to third party data
Accurate and timely information for better decisionsAccurate and timely information for better decisions
Deep and Adaptive Industry Processes
• Industry-based configurations
• BPEL assisted configurations
• Modularized components
• Broad API / web services support
• User personalization
• Tailored business process flows
Meet changing business requirements to maintain competitive advantage
Meet changing business requirements to maintain competitive advantage
Superior Ownership Experience
• Automated, tailored installs
• Minimal downtime upgrades
• Active system and business monitoring
• Focus on documentation and training
• Packaged integration… from server technology, middleware, through to applications
Less complexity equals lower cost and riskLess complexity equals lower cost and risk
Conclusions about applying Oracle’s success to the Public Sector
An investment in e-Government, similar in scope to that of Oracle’s, would likely yield extremely attractive financial returns
Potentially more important, could be the impact it would have on organizational performance when viewed through the different Essential Factors
Implementing e-government solutions should be driven by senior leadership and accompanied by organizational transformation efforts
IT infrastructure improvement is a key first step and an enabler
Well focused, structured analysis should be performed early to guide the effort and secure both organizational buy-in and resources
“Everyone wants to transform….
nobody wants to change”
Questions?