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Industry specific cover imageIndustry specific cover image
Business Case for Exalogic and ExadataConsidering which benefits to look forMarch | 2011
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The Presentation may include selected third party data, information, research and/or referencematerials (collectively, "Third Party Information"). Oracle does not warrant the accuracy of the ThirdParty Information, which is provided "as-is." The inclusion of the Third Party Information does notconstitute an endorsement of Oracle's products or services by any third party.
Further, this Presentation is not a commitment to deliver any future material, code, orfunctionality. The development, release, and timing of any features or functionality described in thisPresentation remains at the sole discretion of Oracle.
The Presentation cannot account for all risks and other factors that may affect results or performance,or for changes in your business practices or operating procedures that may be required to realizeresults or performance, that are projected or implied in the Presentation.
The Presentation, and any discussion or negotiation of The Presentation between Oracle and You, is
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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 wayIT is delivered with the requirements from business as thedriver and technology change as the enabler
Controlling the cost as volumes grow andavailability demand increases
Providing predictable services asperformance limits are approached
Controlling operational risk as theheadroom reduces
Preventing reputational risk from poorcustomer experience or from breaching SLAs
Avoiding non-compliance issues from ageinghardware 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
Whatnext?
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The requirements for a new platform must be delivering onall these points
Automate all operations of applications and databases Respond better to unforeseen customer events Deliver a more stable and predictable service
.. meet planned andunplanned business
demands?
Lowest administration costs per instance for any platform Scale with demand Decrease data center costs
... reduce the cost per
database/application instanceto 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 continuityfor any growth and
performance scenario
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Building the new platform to sustain businesscontinuity should move you toward the cloud
SERVER1
SERVER7
SERVER2
SERVER3
SERVER4
SERVER6
SERVER5
PrivateCloudIaaS PaaS
ITaaS
SaaS
Time
Consolidation Standardization IT as a Service Utility Computing
Consolidate Servers
Define SLA, build definitiveservices library
Organization of IT resourcesto manage services
Identify core technology ,platform standards
Standardize contracts
Increase utilization andvirtualize resources
Standardize technicalarchitecture, storage, servers,network
Services segmented bycustomer deliverablesHosting, Operations,Development
Standardized operatingprocedures
Deploy monitoring tools andscorecards for operations
Virtualize technicalarchitecture, storage,servers, network, VTL.
Location agnostic toleverage space andavailable capacity on-line
Auto-provisioning forpredefined environments
Enable Service SLAs forall services delivered
Implement ITIL
Automate ITIL based DCprocesses
Full elastic computing forscaling on-demand
IT as a Service
Full elasticity withautomated provisioningand de-provisioning
Funded by a pay-per-useutility model
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Cloud economy connects CapEx/OpEx with the use and demandpatterns 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, softw are as
well as for
implementat ion based
on p rojected demand
Investments are made
based on uti l izat ion and
demand patterns of us e,
provis ioned in vir tual ized
infrastructure
One of the advantages of private cloud computing model is that the investment is incurred inthe same period it is utilized. Cloud management implies demand driven computing capacity.For CFOs, this means that investments track closer to return on assets
2010 Oracle Corporation Oracle and UN-ICC confidential 7
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0%20%40%60%80%
100%
ComparativeHardware Costs
75% Reduction inHardware Costs
50% Reduction fromConsolidation
25% Reduction fromImproved Performance
0%20%40%60%80%
100%
Comparative DataCenter Costs
60% Reduction inData Center Costs
40% Reduction fromConsolidation
20% Reduction fromImproved Performance
0%20%40%60%80%
100%
Compartive LaborCosts
70% Reduction inLabor Costs
35% Reduction fromConsolidation
15% Reduction fromImproved Performance
20% Reduction fromGreater Manageability
0%
20%
40%
60%
80%
100%
ComparativeSoftware Costs
30% Reduction inSoftware Costs
15% Reduction from
Consolidation10% Reduction fromImproved Performance
5% Reduction fromGreater Manageability
For IT there are three primary value drivers that will be deliveredfrom driving towards the cloud Consol idat ion, Performance andManageabil i ty
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Building an database & application platform as a PaaS onExadata and Exalogic delivers on the promise of the cloud?
$
Number of applications
Traditionalsilo approach
COST
QoSSCALABILTY
COSTQoS
SCALABILTY
Server Virtualization (IaaS) COSTQoS
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 fromreduced capital expenditure
$1M-$2M in deferring newDCs and space requirementsin existing DCs
$1.5M reduction in operations
costs due to automation andreduction in DC complexity
$1M reduction in energy costsfor increased utilization andlights-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 InfrastructureCost
40%20%
60%
0% 25%Operating Expense
15%10%
0% 75%
50%Energy Costs 70%
10
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Based on customer case studies our experience with Exadatagives a significant saving on deployment and maintenance
Build From Scratchwith Components
ReferenceConfigurations
Take delivery of OracleDatabase Machine
Weeks to Months
Pre-implementation
System sizing
Acquisition ofcomponents
Installation and
configuration
Acquisition ofcomponents
Installation andconfiguration
Testing andValidation
Testing and
Validation
Weeks to Months
Oracle ExadataDatabase Machine
Server Pool pre-configuredFaster deploymentLower Risk
< 1 Week after Delivery
Testing and Validation
Configuration
With Exadata, Commonwealth Bank of Australia reduced DB deployment timefrom 3 months to < 1 week
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The Commonwealth Bank is one of
Australias leading providers of
integrated financial services
including retail, business andinstitutional 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
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44% of CIO surveyed by Forrester indicated that they areactively looking to build a private cloud in the next
couple of years
2010 Oracle Corporation Proprietary and Confidential
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Oracle Insight Is A Program That Help Our Top Customers InAll Stages Of The Technology Investment Lifecycle
Accelerate Technology
Transformation by AligningProject & Business Objectives
Align and Measure TechnologyInitiatives Against Planned
Objectives
Establish the Business Case
and Roadmap for TechnologyInvestment
Continuously Unlock MoreValue from Technology
Investments
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Oracle Insight Will As An Investment Help You To Plan AndQuantify 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
IndustryExperience
SolutionKnowledge
ValueAnalysis
* Availability based on qualification of each potential customer. For more information contact your local sales rep.
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Besides quantifying potential benefits ofmodernization, we analyze and define the KPIs to
monitor the modernization
Through our benchmark database we define target- and base levels forperformance and operations and use these as KPIs for management to monitor
the infrastructure
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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 beresolved and dig deeper into those processes to uncover these improvements
DC PLANNING DC OPERATIONALDESIGN
DC OPERATIONS
Services Planning
SLA Management Customer Care
Configuration andChange Management
Performance andAvailability Management
Architectural Planning
Release Management Utilisation Management
Security Management Provisioning and PatchManagementInformation Lifecycle
Management
Virtual Machine
Server
Storage
Network and Facilities
Key Performance Improvement Opportunities AreIdentified Based On A Comprehensive Framework
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Thank You
Accept Nothing Less
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