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IT TransformationHPE IT Best Practices

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Scott Anderson | VP, Hybrid IT Transformation Solutions

December 2016

‒ Resource constrained…smaller budget and fewer personnel…more demand

‒ Adopting Enterprise Information Services (NIPR & SIPR)

‒ Consolidating Network IT / Data Centers / IPNs / Cloud / CSfC / Reducing

Energy Consumption…Cloud First Mandates

‒ Automation / Orchestration / Virtualization / Rationalization

‒ Collapsing Gateways / Leveraging DoD-Provided Security—Joint Regional

Security Stacks (JRSS)

‒ Migrating Applications in a Hybrid environment

‒ Eliminating Legacy Telecomm and IT/ Adopting secure composable

enterprise solutions for fixed and mobile users

‒ Windows 10 Mandate

Current Challenges

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“Gentlemen, we’ve run out of money; now we have to think.”

― Winston S. Churchill

Transformto a hybrid

infrastructure

Enableworkplace

productivity

Protectyour digitalenterprise

Empowerthe data-drivenorganization

One transformation - four partsAll required. All linked. All overlap.

Only one partner brings them together

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Our environment = scale

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Applications and data fuel the digital enterprise

Apps that engage and delight

Apps that transact and record

Apps that power things

Apps that support how we work

Machine data Human dataBusiness data

IT must become the innovation engine of a digital enterprise

IT must enable continuous

value creation while

managing risk and cost

Long development

cycles, with IT focused

on managing risk and

cutting costs

NOW

NEXT

Providing

real-time insight

& understanding

Harnessing the

full potential of

mobile and IoT

Rapidly creating

and brokering new

apps and services

Proactively

managing and

mitigating risk

Idea

Value

Idea

Value

Idea

Value

Idea

Value

Idea

Value

The shift of workloads to cloud

environments over the next two years

is dramatic, from 38% overall today to

56% expected in two years

Off-premises workloads also shift

from 29% today to 44% in two years

Cloud providers will account for 68%

of all Cloud workloads, up from 60%

today

Base=Cloud AdoptersSource: 451 Research, Voice of the Enterprise: Cloud Computing, Q2 2015

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Workloads are on the Move38% to 56%

HPE IT transformationHow HPE IT is evolving to a hybrid IT environment

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decrease in

data center

floor space

Project goals

Lower average age of infrastructure to

Increase CPU utilization to 30%

4.5 yrs

35% reduction in annual CapEx

ShiftIT spend from fixed cost infrastructure to innovation

50%

Minimizeimpact to IT while implementing our strategy

True hybrid computeContinuous innovation

FY 2014 FY 2015 FY 2016 FY 2017

Accelerate, expand and enhance

Mature and industry leading

• 4 data centers

• 1,800 apps

• SaaS governed by SLAs

• Migrate apps to cloud

• 30 minutes to deploy VM

• 5 days to deploy physical server

• 50% utilization in cloud

• 85 large data centers, 400 small data centers

• 7,000 apps

• Primarily traditional apps

• 20 days to deploy VM

• 45-60 days to deploy physical server

• 10% CPU utilization

Where we started Where we are today

Where Are You Today?HPE’s Transformation Journey …

Decentralized Data Centers

– 85 data centers

– Hundreds of computer rooms around the world

– Lower availability, inefficient, and more frequent outages

2006 2007-2010 2011 - 2013 2014 - 2015 2016 - beyond

Data Center Consolidation & Transformation

– Six US based highly available enterprise mega-data centers

Growth

– Due to business requirements

– Added six EcoPODs

Technology refresh

– Transform to Cloud, Moonshot, 3Par storage, latest servers

– Reduce total power required even with workload. Compute, storage, network growth

– Reduce data center requirements by 33%

Transformation continues

– To the latest IT technology: Helion OpenStack, the latest 3Par Storage, Apollo, Synergy

– Further reduce data center requirements by refreshing the old while growing the compute, storage, and network capabilities to meet future business needs

HPE IT transformation original objectives and actual results Our Right Mix defined, powered, and optimized

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Traditional IT Automate & virtualize

Private clouds

Managedclouds

Public clouds

7,000+

Apps

20% SaaS

HR, CRM, ERP, Content Mgmt

10% Non-core, mainframe &

non-virtualized apps

10% Cloud native apps &

traditional apps migrated to cloud

60%Broker M/S Azure services through

common service portal

• Workload suitability

• Application readiness

• Cost concerns (public cloud)

• SLA, High availability

• Cloud “lock in” AWS and Azure

• Data security concerns

• Desire for controllable costs

>10% >55% >5%

>30%

So now what? Your Right Mix is the key

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Define your Right Mix Power your Right Mix Optimize your Right MixExpertise to help you identify your

right mix of traditional IT, private

and public cloud to fuel the unique

apps and services needs

of your enterprise

Simplify your IT operations with

automation and orchestration for

managing, securing and continuous

delivery across your hybrid environment

Evolve your IT infrastructure to a

flexible, cost-optimized, hybrid

environment that powers your

current and future IT services

FY17 IT Investments Trends….Private Cloud Deployment Funding?

The following investments appear in the “Cloud Computing Alternatives Evaluation” column found in the IT Exhibit 53.

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FY17 Projects with Budgeted

Private Cloud Deployment Dollars:

• Treasury- IT Infrastructure

Telecommunications (ITT TSS)

($53.9M)

• Labor- New Core Financial

Management System (NCFMS)

($28.7M)

• OPM- EHRI electronic Official

Personnel Folder (eOPF) ($34.5M)

• Energy- EIA Mission server

applications: Private Cloud

($1.4M)

• SSA- Non-Major Core-

Online/Telephone Services ($25M)

• USDA- Enterprise Messaging

Systems-Cloud Services (EMS-

CS) ($14.3M)

• GSA- Acquisition Gateway

($12.1M)

Fed Healthcare

FY17 Projects with Budgeted Private

Cloud Deployment Dollars:

• CBP- CBP Infrastructure ($452M)

• Defense-wide- DoD Enterprise

Email ($115M)

• Air Force- Global Combat Support

System ($64.2M)

• Navy/MC- CFFC Base-Level

Communications Capabilities

($14M)

• Navy/MC- Core Services

Architecture ($7.1M)

• Navy/MC- Integrated Digital

Environment Services Center

($4.8M)

• Army- Reserve Component

Automation System ($2.5M)

• FBI- FBI Prometheus ($12.3M)

Defense & DHS

FY17 Projects with Budgeted

Private Cloud Deployment Dollars:

• National Nuclear Security

Administration ($29.3M TOTAL;

multiple smaller projects)

Consulting & Intel

FY17 Projects with Budgeted

Private Cloud Deployment Dollars:

• HUD- Infrastructure and System

Monitoring Support ($15.2M)

• FAA- FAAXX137: Enterprise IT

Management ($12.2)

• NOAA- NOAA/NOS/ Ocean &

Coastal Science, Assessment and

Management ($6.3M)

• USPTO- USPTO Consolidated

Financial System (CFS) ($1.4M)

• EPA- eRulemaking ($6.7M)

• Education- Integrated Support

Service (ISS) ($8.4M)

• NSF- iTRAK ($7.8M)

• NASA- NASA Financial

Management System ($2.4M)

• NARA- Electronic Records

Systems ($3.7M)

Civilian 2

FY17 Projects with Budgeted

Private Cloud Deployment Dollars:

• CMS- CMS MACBIS (Medicaid &

CHIP Business Information and

Solutions) ($6.6M)

• CMS- CMS Innovation Core

Systems ($5.8M)

• HHS- HHS Payroll Administration

Service ($7.4M)

• CDC- CDC Information

Technology Infrastructure ($2.6)

• FDA- FDA CDRH High

Performance Computing ($1.2M)

• VA- Medical IT Support ($1.9M)

Civilian 1

1. Define your Right Mix

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HPE has the most comprehensive cloud services to guide you, from advisory and design to implementation and support

“70% of enterprises will use

a third party to help them

transform their IT.”

1. Discovery 2. Suitability 3. Mapping 4. Migration 5. Enable

Private Resource Pools

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Cloud Automation, Orchestration &

Operations Management

Self Service, Brokerage &

Cloud Native Apps Platform

Hybrid IT management

– Multi-IaaS management

– Multi-hypervisor support

– Automation and orchestration

Developer enablement

– Self-service resources

– Build cloud-native apps

– Transform traditional apps

Unified solution

– Based on OpenStack® and Cloud Foundry®

– HPE software delivered on HPE hardware

– Services to advise, transform, and manage

Software Defined

Public Resource Pools

API

Converged + Hyper Converged + Composable Systems

2. Power Your Right Mix with HPE CloudSystemAn open hybrid cloud with integrated hardware, IaaS, PaaS, and management

HPE Datacenter Care can accelerate your financial, cultural and software defined transformation

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Drive cultural changeStop guessing

capacityDeveloper centric

architectureMove from capital expense

to variable expense

Flexible Capacity

Easy first step into consumable

infrastructure.

Pay only for what you use at

competitive metered rates;

Capacity in minutes, not months

Infrastructure Automation

Enable Infrastructure, as Code.

Access to experts and Curated

DevOps tools.

Operational Support Services

Accelerate your cultural

transformation with HPE experts and

tools to monitor and operate your

infrastructure – while your resources

focus on higher value services

3. Optimize your right mix

7.5K

Total

Testers

159K

SIT

Test Cases

135K

UAT

Test Cases

100K

SharePoint

Sites

436

Mock

Cutovers

19M

Batch

Jobs

2.6K

Apps

Dispositioned

21K

Resolved

Defects

32.9K

Servers

Re-IP’d

8 PB

New

Storage

375.5K

Email

Accounts

7K

New Servers

Built

12K

E2E

Test Cases

5.2K

HC Capacity

Created

2.6K

Releases

1.2K

Go Lives

74K

Interfaces

4K

Project

Milestones

560

Project

Plans

2.5K

Linked

Dependencies

9.5Months

• Largest and most complex

business separation in history

• Successful execution has

enabled HPE to create a

customer facing divestiture

and separation go-to-market

practice

Record Setting Pace

Requirements 34 Days

Design 41 Days

Build 69 Days

Test 104 Days

Go Live 67 Days

HP IT Separation: Never Seen Before Scale, Scope and Timeline

Our SolutionsFive Hybrid IT solutions to overcome multi-domain challenges

Traditional IT

Automation

Private Cloud

Automation

I/P-aaS

Public Cloud

SaaS

I/P-aaS

Modernize viaAutomation

Choose

Broker

Infrastructure Consolidation & Virtualization

Rapid Provisioning

Private Cloud Express

Enterprise Private Cloud

Enterprise Hybrid Cloud

Deploy Stack(s)

To summarize, let’s recap the four initiatives

▪ Within the Transform to a Hybrid Infrastructure TA, there are four initiatives tailored to

customer needs:

– Achieve right infrastructure mix - Develop the solution design and create

roadmap and implementation plan

– Accelerate infrastructure - Reduce costs by modernizing their datacenter

infrastructure and support model and find the right balance between capex and

opex, with solutions that fit their business/operational needs

– Accelerate applications and operations - Accelerate business/operational value

by delivering new application services at the speed of need

– Deploy hybrid - Define and execute their journey to a hybrid infrastructure and

continuously manage and optimize their workloads in a multi-vendor environment

▪ Each initiative contains specific solutions to enable HPE customers to deploy the ideal

infrastructure tailored to their specific needs

▪ With HPE, you will have access to the experts, business/solution leaders and HPFS

professionals to make this journey a success

‒ We have the right people, the right products, the right professional services

and the right leadership to:

‒ Transform to a Hybrid Infrastructure

‒ Protect and Secure your Digital Enterprise

‒ Empower the Data-Driven Organization

‒ Enable Workplace productivity

‒ HPE Financial Services has options to customize and ease transformation

‒ It all starts with a vision and a roadmap … and sometimes a trusted navigator

Where can HP Enterprise Help?

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“If you don’t know where you are going, any road will get you there!”― Lewis Carroll

Call to action…

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‒ Engage HP Enterprise in a Transformation Workshop to attain the

“Right Mix”

‒ Consider how you will manage the competing needs and priorities to

accelerate your migration and deliver capabilities at the speed of need

‒ Develop a Roadmap & Transformation Management Plan

‒ Execute

‒ Repeat

Thank youScott AndersonVP, Hybrid IT Transformation SolutionsScott.Anderson@hpe.com

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