ORGANIZING FOR SUCCESS
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1 1 ORGANIZING FOR SUCCESS Jon Peirce Vice President, EMC Global IT Private Cloud Infrastructure Group EMC IT Leadership Council 2011
2 2 Agenda Cloud differences and implications new and evolving technical and business Organization aligning for service delivery Business Model competing for business EMC IT our experiences, plans and lessons learned
3 3 EMC IT s Cloud Vision Virtual Clients Traditional Apps Next-Gen Cloud Apps SaaS Integration and Federation Private Cloud Virtualization Information Security Public Cloud
4 4 Built on EMC s Cloud Portfolio View Traditional Applications Next-Gen Cloud Applications Big Data vfabric vsphere Cloud Foundry vshield vcloud Director vfabric vsphere Cloud Foundry VNX VMAX Ionix VPLEX Isilon Greenplum Data Domain, Avamar, Networker
5 % Virtualized Copyright 2011 EMC Corporation. All rights reserved. 5 EMC IT s Journey to the Cloud IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility Development, test, and IT-owned applications WE ARE HERE 80% 86% 100% 15% 30% 40% Virtualize Mission Critical applications 80% virtualized 53 of 58 mission critical applications and services are Run significantly IT as a or fully business virtualized
6 % Virtualized Copyright 2011 EMC Corporation. All rights reserved. 6 We re Optimized. Why Bother with Phase 3? IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility Development, test, and IT-owned applications WE ARE HERE 80% 86% 100% 15% 30% 40% Virtualize Mission Critical applications Run IT as a business
7 % Virtualized Copyright 2011 EMC Corporation. All rights reserved. 7 We re Optimized. Why Bother with Phase 3? IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility $12M Development, test, and IT-owned applications $74M Power and Space Savings Data Center Equipment Savings $11M $6M OpEx Savings Data Center Equipment Savings WE ARE HERE 80% 86% 100% 170% Storage Admin Productivity Up 30% Increase in Energy 34% 15% Efficiency 60M Pounds of CO 2 Reduced 55% 40% 60% of OS Images Virtualized of Mission Critical Apps Virtualized Virtualize Mission Critical applications 30M Pounds of CO 2 Reduced Run IT as a business
8 8 Users Have a Choice Despite incredible improvements in cost, efficiency, quality-of-service and agility, our BUs are sourcing around us. We remain hard to do business with Our funding model gets in the way We still appear to our clients as a collection of tech silos as opposed to a solution provider We avoid selling our services out of fear that we will create demand we cannot fulfill We perpetuate custom engagements versus driving a mindset of standardized enterprise services. Shadow IT is growing
9 9 The Case for IT Transformation is rooted in how legacy IT organizations do business Fixed budget and fixed supply of services Governance used to drive demand down Organized around technology piece parts as opposed to offerings Conditioned to react to requests and problems Would a true Service Provider choose to do business this way?
10 10 Winning the Business with IT as a Service Optimizing IT Production for Business Consumption Service consumption mindset Service-based pricing Service level expectations Integrated cloud architecture Integrated GRC Transforming ourselves into a competitive service provider
11 11 IT Transformation Components A New IT Business Model Service Oriented Market Driven P & L Focused Broker and Builder Enabling Technology Private, Hybrid, Public Clouds End-to-End Financial Transparency Self-Service Capabilities DNA,, & Front Office Capabilities Service Accountabilities Technology Breadth
12 12 The sales force for all IT services built and brokered Promotes the use of enterprise services Guides business away from customization Educates the business on choices and implications Develops expertise in service integration and aggregation
13 13 Negotiation skills Influence Solution selling IT integration literacy
14 14 Business or service aligned?
15 15 Service catalog Service level management
16 16 Demand management Financial management
17 17 Service consumption: units provisioned Standard vs. custom Lost deals
18 18 Develops multi-tenant enterprise applications that allow for configurability without customization When unique requirements arise, addresses with aggregation of standard components
19 19 Modern application framework skills Application virtualization skills Networking and mobility knowledge
20 20 Application or technology cluster aligned?
21 21 Load testing Performance testing Capacity planning
22 22 Build vs. buy Customization approval
23 23 Use of standard components Use of enterprise platforms Synthetic transactional performance
24 24 Architects and engineers the underlying platforms that deliver the services Architects enterprise services on top of the platforms Monitors platform and service health Documents details and trains operations teams
25 25 Mix of deep foundational technology skills and broad platform skills Cloud Architects Data Center Architects Traditional deep Storage, O/S, Backup, Networking expertise
26 26 Foundational technologies Platforms Services
27 27 Configuration management Capacity planning
28 28 Virtual First policy Standardized First policy Platform change management
29 29 Platform and service metrics Availability Scalability Unit cost (TCO) Speed of provisioning
30 30 The manufacturing and customer services of IT Builds and operates services and platforms
31 31 Broader skill base to enable management and troubleshooting at the service level Expertise in the individual technology components as required
32 32 Broader skill base to enable management and troubleshooting at the service level Expertise in the individual technology components as required
33 33 Single Pane of Glass monitoring Predictive alerting Pervasive orchestration supporting delivery of services
34 34 Escalation and communication Operational reporting
35 35 Service availability Time-to-resolve Service unit TCO
36 36 The marketing, product management and finance of IT
37 37 Product management Marketing communications P&L financial management
38 38 Separate report to the CIO or bundled with another IT organization? Matrix alignment with the Service Ops Managers
39 39 Service catalog Service consumption metering Financial transparency and chargeback Service level reporting
40 40 Service lifecycle process Service concept-to-approval Service pricing
41 41 Service consumption Lost deals
42 42 An Organizational Evolution Is Underway Imperative Business and financial management IT Service Management New focus area Cloud service operations management Infrastructure as a Service Platform as a Service Virtual Desktop as a Service Enterprise Applications as a Service New roles emerging Cloud Architect, Cloud Admin Cloud Capacity Planner IT Engineer Virtual Infrastructure Architecture Virtual Infrastructure Management Traditional roles are still essential Systems Storage Backup and Recovery Data Center Networks Security
43 43 Our IT as a Service Framework Service Management Standardization Simplification Management and GRC User Interface as a Service Virtual Desktops Choice Computing Mobility Software as a Service Business Applications Platform as a Service Security Integration Layer Application/Web Servers Development Tools Content Management Business Intelligence Database Platforms Infrastructure as a Service Network Compute Storage and Backup Converged Infrastructure
44 44 ITaaS Program Structure 1 Go-To- Market VoC Service strategy Customers Service request / delivery Service catalog Invoicing Pricing, Show/ charge-back policies 2 3 Portfolio / Demand mgmt. processes Service roadmap Service design and launch Service Portfolio Management Automated orchestration and provisioning Standardized service delivery and support processes Standardized service management tools Service Delivery and Support 4 Metering Service costing policies Financial Management Cloud Infrastructure 5 GRC 6 / / Competencies
45 45 Preparing Our People Talking Openly About Cloud It s a sea-change for IT Opens up huge opportunities Fostering Collaboration Bridge the Silos Facilitate OJT Creating Incentives to be Multi-skilled New job families and tracks Cloud certifications
46 UNIX/Linux Windows Authentication Virtual Infra. SAN NAS BURA Network Telecom Perimeter Systems/Data Identity Physical Plant Job Scheduling 46 EMC IT s Organizational Evolution 2008 Traditional Technology Driven Siloed IT Infrastructure Organization Design Systems Architecture Storage Architecture Network Architecture Security Architecture DC Architecture Engineer and Build 20% Virtualized Run Systems Support Storage Support SMEs 0perating in technology silos Decentralized operations managed by bridge lines NOC SOC DC Ops Service Desk Objective is to keep technology available and operational Project-based delivery of customized technology components
47 UNIX/Linux Windows Authentication Virtual Infra. SAN NAS BURA Network Telecom Perimeter Systems/Data Identity Physical Plant Job Scheduling 47 EMC IT s Organizational Evolution 2009 Technology Driven Siloed IT Infrastructure Consolidated Operations Design Systems Architecture Storage Architecture Network Architecture Security Architecture DC Architecture Engineer and Build 50% Virtualized Run IT Service Operations and Global Command Center Virtualized Infrastructure team added as a tech silo Service Desk Centralized operations in Global Command Center
48 Virtual Infra. Windows Linux/UNIX Authentication SAN NAS BURA Network Telecom Perimeter Systems/Data Identity Physical Plant Job Scheduling IT Service Management 48 EMC IT s Organizational Evolution 2010 Consolidated Private Cloud Infrastructure and Operations Design Systems Architecture Storage Architecture Network Architecture Security Architecture DC Architecture Engineer and Build 75% Virtualized Run IT Service Operations and Global Command Center Added management and automation team Consolidated systems, storage, automation into unified team Service Desk Began building service management function Launched first self-service provisioned Infrastructure offering to BUs
49 Virtual Infra. Windows Linux/UNIX Authentication SAN NAS BURA Network Telecom Perimeter Systems/Data Identity Physical Plant Job Scheduling 49 EMC IT s Organizational Evolution 2011 Unified Private Cloud Infrastructure Group & IT-as-a-Service Design Private Cloud Architecture IT Service Management Network Architecture Security Architecture DC Architecture Engineer and Build TO-BE 86% Virtualized Run IT Service Operations and Global Command Center Unified PCI group focused on services and platforms Maturing service management function driving IT offerings Service Desk Objective shifting to ensuring desired business outcomes Project work focused on building and provisioning services
50 EMC IT Organization* Client Engagement Services Applications Platforms Technologies Support Communicates and stimulates utilization of IT Services. Assists clients with value based consumption. Aggregates services Manages the creation, introduction and lifecycle of service offerings to address current and future needs of BU s and consumers Develops multi-tenant enterprise applications that allow for configurability without customization. Provides core technology platforms consumed by services Architects and delivers future platform capabilities Governs technology standards Technologies to enable, automate, monitor, secure, provide access to, and track health of services Global Command Center and IT Service Operations Service Desk *SOOA Services Oriented Organizational Architecture Copyright 2011 EMC Corporation. All rights reserved. 50
51 51 How Should Phase 3 Benefits Be Measured? Value Business Unit spend through/with IT Agility Mean time to Provision Competitiveness Unit Costs and Service Levels Risk Mitigation Shadow-IT Remediation
52 52 Cost and Agility Trends IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility 90 Days 80 Days 60 Days 40 Days 30 Days 40% 42% Percentage of IT Spend on New Capabilities vs. Lights-on 20% 20% 21% 23% 25% 7 Days ~1 Day Approximate Time-to-Provision App. Environments
53 53 How Will We Know We Succeeded? By Winning Market Share! Do we win business, even if it s brokering an externally delivered service? Are BUs still investing in shadow IT?
54 54 The Biggest Challenges? Company Culture resistance to chargeback, server hugging, demanding custom solutions Financial Systems clinging to the old cost levers instead of holding consumers accountable The DNA of IT how to develop an organization comfortable with competing for business and thinking entrepreneurially?
55 55 Takeaways Cloud Computing presents an incredible opportunity Competitive pressures will force IT organizations to evolve towards a service-provider business model Front office business roles are becoming necessary and integral to enable this transformation Technology convergence, virtualization and automation are creating new, high value IT roles It s a journey
56 56
57 57 THANK YOU
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