IT Redefined. EMC s IT TRANSFORMATION

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1 1 IT Redefined EMC s IT TRANSFORMATION

2 2 EMC IT s Mission And Vision Mission To be the trusted advisor and enabler of choice, creating competitive advantage and accelerating business outcomes for EMC Vision An Agile, Contemporary and Innovative IT as a Service organization driving to the 3 rd Platform and enabling EMC to be a world class Software-Defined Enterprise

3 3 The Genesis Of IT Transformation THE CFO S VIEW OF IT An Expense To Cut Run Rate Budgeting Regulated Monopoly Keep The Lights On THE BUSINESS VIEW OF IT Too SLOW Too EXPENSIVE Too RESTRICTIVE To BE AVOIDED!! The IT Predicament Legacy Blues Complexity & Fragility Losing Control 100% Reactive Are We Relevant?

4 REDEFINE IT Bridge The Gap From 2nd To 3rd Platform Copyright 2014 EMC Corporation. All rights reserved. 4 Reduce OpEx Current State Invest in New Model Target State

5 5 Third Platform Trends MOBILE CLOUD BIG DATA SOCIAL Outstanding User Experience Secure Access Any device Scalable Elastic Ubiquitous access Variety, Volume, & Velocity Predictive Analytics Engaging Employees, Business and Customers Share ideas and experiences

6 6 Increasing Business Expectations IT Technology Eras Business Expectations Ability of IT to Deliver Steady IT Budgets Mainframe 1 st Platform Client-Server 2 nd Platform Mobile-Cloud 3 rd Platform The exponential increase in business demand Widening is unsustainable Gap for IT $ $ $ $ $ $ * Source: Gartner, 2013: Hunting and Harvesting in a Digital World: The 2013 CIO Agenda

7 7 Getting Ahead Of The Curve IT Technology Eras Mainframe 1 st Platform Client-Server 2 nd Platform Mobile-Cloud 3 rd Platform Business Expectations Ability of IT to Deliver Steady IT Budgets $ $ $ $ $ $ IT at the Speed of Business * Source: Gartner, 2013: Hunting and Harvesting in a Digital World: The 2013 CIO Agenda

8 8 EMC s Growth Curve 5 Year $20.8B Investment In Leading Technology R&D $11.5B M&A $9.3B BIG DATA 2014 CLOUD, BIG DATA, & TRUST 2003 AND BEFORE ENTERPRISE STORAGE 2004 CLOUD & VIRTUAL INFRASTRUCTURE 2006 TRUST CONVERGED INFRASTRUCTURE

9 9 EMC IT At A Glance EMC REVENUE EMC EMPLOYEES OS IMAGES TOTAL INFORMATION OS IMAGES VIRTUALIZED DATA CENTERS MANAGED APPLICATIONS $8.23B $23.2B 24,000 60,000 2,000 11,000 1 PB 22 PB 0% 94% 5 5 ~400 ~500

10 10 Organizational Model - Contemporary IT CONSULTATION. IDEATION. INNOVATION. B U S I N E S S D E M A N D C L I E N T E X P E R I E N C E CLOUD PLATFORMS SECURITY DIGITIZATION & AUTOMATION SERVICE PORTFOLIO MANAGEMENT BIG DATA S E R V I C E S 3 rd PLATFORM A P P D E V E N T E R P R I S E A P P S SAAS CONSUMER SERVICES ON-DEMAND SERVICES

11 Contemporary IT Benefits Copyright 2014 EMC Corporation. All rights reserved. 11 Hybrid Cloud Consumption Based Mobile First Elastic Supply

12 12 Transformation Framework Modernize the Application Portfolio APPLICATION TRANSFORMATION OPERATING MODEL TRANSFORMATION Upgrade the End User Experience Enable Modern Third Platform Applications Standardize, Virtualize and Consolidate Transition to Software Defined Infrastructure 2 nd P latform Existing Apps INFRASTRUCTURE TRANSFORMATION PUBLIC HYBRID PRIVATE A pplication Fabric Data Fabric C loud Fabric 3 rd P latform New Apps LEGACY User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Package IT for Business Consumption Transform People and Processes for ITaaS Re-engineer IT Financial Management for Cloud

13 13 Our Goal: A Well Run Hybrid Cloud Multi-Device Workspace (Mobile) Policy-Based Management Software-Defined Data Center Abstract, Pool, Automate Cloud Automation Cloud Operations Cloud Business Hybrid Cloud VMware vchs Compute Network Storage Private Cloud Public Cloud

14 14 Our Cloud Infrastructure Journey Infrastructure Focus Applications Focus Business Focus % VIRTUALIZED 15% 35% 50% 75% 94% IT-Owned Applications Virtualize Mission Critical Applications IT-As-A-Service

15 15 Infrastructure Evolution 2004 Dedicated Physical & Virtual 2008 Consolidated Virtual First 2010 Shared Dynamic Capacity Converged Infrastructure 2012 Cloud Automation Consolidated SANs SPARC centric Project based delivery & design Siloed organization Tiered & shared virtualized servers & SANS X86 standard Project driven Siloed organization Multi-tenant virtual hosting platform MC application transformation Capex & Opex savings Converged organization Service catalogue - Self & Auto IT Service & utility focused organization Cost transparency

16 16 Infrastructure Evolution 2010 Shared Dynamic Capacity Converged Infrastructure Multi-tenant virtual hosting platform MC application transformation Capex & Opex savings Converged organization 2012 Cloud Automation Service catalogue - Self & Auto IT Service & utility focused organization Cost transparency SDDC ITaaS Software Defines Storage Virtual Networking & Security Full charge back Integrated Network team Formal Automation team SDDC: All infrastructure is virtualized and delivered as a service. Policy driven automation will manage configuration and provisioning, consumable by APIs.

17 17 Software-Defined Data Center (SDDC) Abstract, Leverage, Pool, Automate vsphere Software Defined Compute Virtualization Software ViPR Software Defined Storage NSX Software Defined Network vshield Software Defined Security ABSTRACT, LEVERAGE INTELLIGENCE Server Storage Network Security Physical Hardware

18 APPS APPS 18 Our SDDC Strategy vcloud Automation Center Adm in Portal End-User Portal ITSM ITBM Enhanced Chargeback vcenter Operations Manager Log Insight EMC SRM PLATFORM 2 OS VM OS VM OS VM Integrated Provisioning, Backup, DR, HA, and Security vsphere VMware NSX OS VM BLOCK PLATFORM 3 FI LE Infrastructure as a Service Database as a Service Enterprise Platform as a Service Object Storage as a Service O BJECT/ HDFS vchs

19 19 epaas Improving Agility For Application Developers With PaaS Challenge Resource intensive and lengthy process for creating application development environments. Configuration inconsistencies lead to instability and inability to scale cost-effectively Businesses require increasing agility and sourcing around IT to get it Solution Deploying Platform as a Service solution using VMware operations and automation tools, Puppet, and Vblock Flexible in deployment across private and public clouds Results Deployments will be with in an hour instead of weeks Payback of operational and capital costs within 1 year

20 20 The epaas Platform Leverages SDDC vfabric Application.net Application Monitoring Cloud Portal epaas Broker vco Puppet Labs GemFire Hyperic IPAM vcops vco Cloud Fabric Com pute Storage Networking Security EMC SRM Cloud CMDB Order Mgmt vsphere VAAI/VASA vshield/nsx vblock - Powered by Intel Xeon Processor Technology Backup

21 21 It s NIGHT And DAY Different 4 Months to Deploy 2 ½ Months Design Time 600 Man-Hours Ad Hoc Complex to Support Less Than a Day 1 Hour 0 Man-Hours Standardized Simple to Support

22 22 Durham Cloud Datacenter 100% Virtualized 20,000 Sq. Ft. (expandable to 30,000 Sq. Ft.) Durham And Hopkinton Primary Sites Single Datacenter Operating System VCE Vblock Reference Architecture Cloud-Scale Federation Data, Applications Runs EMC s Mission Critical Applications Zero Data Loss Business Continuity Data Deduplication At Source And Target

23 23 Data Center Migration From Westborough To Durham 350 Applications Westborough, MA Durham, NC 2,000+ Virtual Machines 6+ Petabytes of Data SVM SRM SRDF/A SVM Migrated over the network Enabled by EMC and VMW EMC SRDF, VPLEX VMware Site Recovery Manager, Storage vmotion

24 24 Enterprise DR Strategy Multi-Site Remote Replication Primary Hopkinton, MA Bunker Site Franklin, MA R22 R11 SRDF/S 10 Miles SRDF/A R21 SRDF/A 600 Miles SRDF/A 600 Miles WAN R21 SRDF/S 10 Miles R11 R22 Bunker Site Research Triangle Park, NC Primary Durham, NC Tier 1 Hopkinton Primary Tier 1 Durham Primary

25 25 Monitoring & Securing The Cloud GLOBAL COMMAND CENTER State-Of-The-Art Infrastructure Management Tools Remotely Manage EMC s Highly Virtualized Global Data Centers Leverages EMC & VMware Tools Follow The Sun (24x7x365) Model CRITICAL INCIDENT RESPONSE CENTER Monitoring & Remediating Security Events Preemptive Cyber Threat Intelligence Advanced Tools, Tactics, & Analytics Highly Skilled Security Analysts Leverages RSA Security Technology

26 26 Benefits Of Cloud Transformation Infrastructure Focus Application Focus Operations Focus 90 Days 80 Days 60 Days 40 Days 30 Days 40% 42% Percentage of IT Spend On New Capabilities versus Keeping the Lights On 25% 7 Days 20% 20% 21% 23% ~1 Day Approximate Time To Provision Application Environments

27 27 EMC IT Transformation Results 94% OS IMAGES VIRTUALIZED 95% MISSION CRITICAL APPLICATIONS VIRTUALIZED $157M C A P E X S AV I NGS ( A V O I D A N C E ) $212M O P E X SAVINGS (INFRASTRUCTURE) FLAT INFRAST R UC T UR E HEADCOUNT EXPENSE * Infrastructure OPEX savings were $212M, $146M of which were reinvested in new application capabilities, $66M was returned to the CFO

28 28 Transformation Framework Modernize the Application Portfolio APPLICATION TRANSFORMATION OPERATING MODEL TRANSFORMATION Upgrade the End User Experience Enable Modern Third Platform Applications Standardize, Virtualize and Consolidate Transition to Software Defined Infrastructure 2 nd P latform Existing Apps INFRASTRUCTURE TRANSFORMATION PUBLIC HYBRID PRIVATE A pplication Fabric Data Fabric C loud Fabric 3 rd P latform New Apps LEGACY User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Package IT for Business Consumption Transform People and Processes for ITaaS Re-engineer IT Financial Management for Cloud

29 29 Transforming Into A Service Provider A NEW IT BUSINESS MODEL Service Oriented Market Driven P & L Focused Broker & Builder ENABLING TECHNOLOGY Private, Hybrid, Public Cloud End-To-End Automation Financial Transparency Self-Service Capabilities DNA, SKILLS, ROLES & ORGANIZATION Front Office Capabilities Service Accountabilities Technology Breadth Industrialized Operations

30 30 Winning The Business with IT-As-A-Service Transforming ourselves into a competitive service provider Original State Project mindset Costing Best effort service Fielding requests Target State Consumption mindset Service-based pricing Clear service level expectations Selling capabilities Operating like a bureaucracy Operating like a business Optimizing IT Production for Business Consumption

31 31 IT Funding Moving From Flat Tax To Metered Chargeback OLD WAY All Units Charged Flat Tax, Little Transparency NEW WAY All Units Charged Pay-As-You-Go, Transparency PRIVATE CLOUD Separate IT Silos For Each Unit Inflexible, Inefficient IT Pooled IT Resources Dynamic, Agile, Efficient

32 32 IT-As-A-Service Attributes SELF P R O V I S I O N E D A U T O M A T E D D E P L O Y ME NT BUILT-IN SECURITY AND GRC CONSUMPTION FUNDED T R A N S P A R E N T PRICING A N D S E R V I C E L E V E L S BROKERED AS WELL AS BUILT S T A N D A R D I Z E D SERVICES

33 33 IT-As-A-Service Framework Softwareas-a-Service Platformas-a-Service User Experienceas-a-Service Infrastructureas-a-Service VIRTUALIZED D E S K T O P S MISSION CRITICAL A P P L IC AT IO N S BAaaS/ BIG DATA P R I V A T E CLOUD Line of Business Applications CHOICE COMPUTING APPLICATION INTEGRATION C L O U D Pervasive Mobility P U B L I C CLO UD O F F E R I N G S SaaS MOBILE APP PLATFORM Enterprise AppStore S c a l a b l e, E x t e n s i b l e, Tr u s t e d

34 34 Infrastructure-As-A-Service Portfolio ENGINEERING LABS TRY & BUY BUSINESS & IT MANAGED HYBRID SOLUTIONS LAB -AS-A-SERVICE CLOUD SERVICES EMC IT cloud9 VIRTUAL SERVERS WEB SERVERS SERVICE PROVIDER HOSTING MANAGED HOSTING/ STORAGE SERVICE LEVELS Provision Time HA/DR RTO RPO Change Control Compliance Monitoring Management

35 infinit Service Portal Enabling Informed Business Consumption Single Entry Point Rich User Interface Mobile-Enabled Self-Service Visibility To Order Status Embedded Policies Browse And Search Product Overview View Specs Compare Models How-To s, SLAs, FAQs Community Support Copyright 2014 EMC Corporation. All rights reserved. 35

36 36 Cloud Management, Automation, Orchestration vcloud Automation Center Cloud Operations vcenter Operations Management vcenter Log Insight Cloud Business Govern and manage cloud services as a critical IT Business element of Management running IT like Suite a business. On-Demand, Self Service access to IT Services Integrated performance, capacity and configuration management Financial transparency Industry norms Prescriptive Services guidance Cost modeling and reporting for IT

37 37 Transformation Framework Modernize the Application Portfolio APPLICATION TRANSFORMATION OPERATING MODEL TRANSFORMATION Upgrade the End User Experience Enable Modern Third Platform Applications Standardize, Virtualize and Consolidate Transition to Software Defined Infrastructure 2 nd P latform Existing Apps INFRASTRUCTURE TRANSFORMATION PUBLIC HYBRID PRIVATE A pplication Fabric Data Fabric C loud Fabric 3 rd P latform New Apps LEGACY User Portal Service Catalog Policy Engine Orchestration Engine Metering Engine New Roles Agile Processes Package IT for Business Consumption Transform People and Processes for ITaaS Re-engineer IT Financial Management for Cloud

38 38 Oracle 11i E-Business Suite Re-platform SINGLE GLOBAL INSTANCE ORACLE 11i E-BUSINESS SUITE 70+ APPLICATION TIERS 8.8 BILLION R O W S O F D A T A 12TB DATABASE 80K I O P S 52M TRANSACTIONS PER DAY 10g R2 ORACLE DATABASE Note: Based on EMC IT internal estimates

39 39 Mission Critical Application On Vblock BEFORE Sun Fire E25K UltraSPARC IV 224 Cores 80% CPU Utilization Solaris 10 Symmetrix DMX-3 10X AFTER VCE Vblock PERFORMANCE Intel Nehalem $7 128 Cores MILLION 10% SAVED CPU Utilization 60% VMware Linux PRODUCTIVITY Symmetrix GAINS VMAX Note: Based on EMC IT internal estimates

40 MONITORING MANAGEMENT SOA GOVERNANCE 40 SAP Mission Critical Applications Fully Virtualized On Vblock Legacy Applications 50+ LEGACY SYSTEMS TRANSFORMATION ADAPTERS Application Integration Cloud (AIC) RELIABLE MESSSAGING INTEGRATION WEB SERVICES BATCH DATA FABRIC SAP Applications ERP CENTRAL COMPONENT SUPPLIER RELATIONSHIP MANAGEMENT BUSINESS PLANNING & CONSOLIDATION BUSINESS WAREHOUSE SUPPLY CHAIN MANAGEMENT FINANCIAL SUPPLY CHAIN MANAGEMENT Database ORACLE NON-RAC SQL SERVER

41 41 Application Integration Cloud Integrate Across All EMC Applications Partners SaaS Platforms EMC PRIVATE CLOUD Common Data Model Monitoring & Management ERP Integration, Batch, Web Services APPLICATION INTEGRATION CLOUD Enterprise Applications CRM Data Warehouse Legacy Apps App Server vfabric Data Fabric New Apps Social Mobile

42 42 Prepare For The Third Platform BILLIONS OF USERS MILLIONS OF APPS HUNDREDS OF MILLIONS OF USERS TENS OF THOUSANDS OF APPS MILLIONS OF USERS THOUSANDS OF APPS

43 43 Third Platform Apps in the Enterprise Outstanding Consumer-grade Experience delivered by: Mobile-first apps With embedded social capabilities Built on a Platform as a Service cloud model Leveraging Deep Analytics for real-time decision making and predictive actions

44 44 Third Platform Convergence IT as a Service Application Integration Cloud Pervasive Mobility SAP Apps EMC MOBILE AGILITY Business Analytics as a Service EMC Connected Proactive Services (ECPS) Social Business INSIDE EMC

45 Big Data Analytics Copyright 2014 EMC Corporation. All rights reserved. 45 Tools & Consulting DATA SCIENTIST COLLABORATION TRAINING SOLUTION DESIGN/ DEVELOPMENT VISUALIZATION REPORTING DASHBOARDS Analytics PREDICTIVE PLANNING / WHAT-IF T E X T ANALYTICS Big Data Platform STRUCTURED UNSTRUCTURED Data Governance Data Sources TRANSACTIONAL D A T A D A T A QUALITY MASTER DATA MANAGEMENT MACHINE D ATA SOCIAL EXTERNAL D A T A INTEGRATION O T H E R S

46 46 Big Data Vision And Strategy 1. CONSOLIDATE 2. LIBERATE 3. CLOSE THE LOOP Enterprise Data Lake Structured And Unstructured Batch and Real-time Updates Big Data Infrastructure Analytics Engines Business Analytics As A Service DIY Business Analytics IT Consulting and Data Scientists Agile Process & Tools Analytic Productivity Platform Predictive Enterprise Business Process Integration Business Process Optimization Big Data Enabled Apps

47 BAaaS Reference Architecture SAP HANA SQL Fire Solution M anager BO BJ O BIEE Self-Service Analytics on a Unified Analytical Platform Analytical Workspaces for Business Enablement CRM Master Data Machine Data SAP BW Global DW GP DB/HD GP DB/HD A nalytic Workspace AGP nalytic DB/HD Workspace M SFT Reports V isual E xplorer T ableau Reporting Tool SA S Visual A nalytics T ool Structured and Unstructured Data Scale-out platform with in-memory enablement Data integration and Data Quality Local Data AGP nalytic DB/HD Workspace SA S A nalytics Flexibility of Analytical Tools Machine Data Data Sources Data Integration Data Warehouse BAaaS BAaaS R + M adlib Analytics Tools Advanced Data Scientist Services Copyright 2014 EMC Corporation. All rights reserved. 47

48 48 BAaaS Use Cases CORPORATE QUALITY Disk Reliability BUSINESS SALES SALES Maintenance Renewals MARKETING Shark Weeks and Cross-Sell IT Global Command Center Incidents SECURITY Critical Incident Response Center CUSTOMER EMC Connected Proactive Services

49 49 Preparing Our People AGENTS OF CHANGE BRIDGE THE SILOS IT AS-A BROKER NEW JOB FAMILIES MULTI- FACETED & AGILE NEW SKILLS & ROLES

50 50 EMC Proven Professional Certifications CLOUD ARCHITECT DATA CENTER ARCHITECT DATA SCIENCE

51 51 IT Transformation Roles And Skills TRADITIONAL ROLES NEW ROLES SYSTEMS ADMIN STORAGE ADMIN BACKUP & RECOVERY ADMIN NETWORK ADMIN SECURITY CLOUD ARCHITECT CLOUD ADMIN CLOUD CAPACITY PLANNER SVC MGMT CLOUD SECURITY

52 52 EMC IT Proven

53 53 Appendix

54 EMC IT Strategy The Playing Field Client Computing (EUC) IT Innovation Stack Apps and Data Platform Enterprise LOBs Employees Customers Copyright 2014 EMC Corporation. All rights reserved. 54

55 55 Four Customers Of EMC IT One External & Three Internal EMC CUSTOMERS CREDIBLE IT PEERS Characteristics Thought leadership through EMC IT Proven and IT s journey of transformation to best-run software defined enterprise Priorities Agility Robustness Cost savings/avoidance Revenue generation Business productivity Examples IT Transformation Playbook IT as a Service Software Defined DC Platform as a Service THE ENTERPRISE INTEGRITY & AVAILABILITY Characteristics Robust industrialized operation at scale. Innovate and adapt to new business models while governing corporate data Priorities High Availability Compliance Security Critical Business Process Support Cross BU Optimization Examples Propel CRM Master Data EMC.com LINES OF BUSINESS AGILITY & CHOICE Characteristics Enable platform for co-developing products and apps, and for driving rapid experimentation and innovation Priorities Rapid Experimentation Speed and Agility Platforms for Innovation Competitive SLAs and cost to external providers Examples BAaaS HR Transformation ECPS epaas Salesforce.com EMPLOYEES PRODUCTIVITY & EXPERIENCE Characteristics Enable consumer grade experience. Enhanced productivity through collaboration platforms and mobile applications Priorities Experience Anytime/Anywhere/Anyway access to enabling services Ease of Use, Simple & Scalable Examples Mobility Desktops/Laptops VDI as-a-service Sync/Share Apps

56 56 IT Innovation Stack Separating Client Experience, Apps and Platforms Client Experience Enable productivity by providing independence to use any device, anywhere, anytime Secure access via Smartphones, Tablets, PCs, Desktops, VDIs, Internet/WiFi, Internet of Things and all supported Operating Systems and Browsers; Day in a life delightful experience Apps & Data Enable business processes and value-added functionality through applications and data Mobile Apps, Web & Desktop Apps and Server Applications, Data as Information and Insight, Data as a service Platform Enable infrastructure to store, manage, secure, access and analyze Servers, Network, Storage, Private, Public and Hybrid Cloud, Encrypted and/or Secured Data and Big Data A dapted from CEB Future of C orporate I T and Strategy documents

57 57 EMC s IT TRANSFORMATION

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