Industry specific cover image

Business Case for Exalogic and Exadata

Considering which benefits to look for
March | 2011

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Three business requirements are typically impacting IT today

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

Copyright 2011, Oracle. All rights reserved.

The way IT experiences this is massively changing the way

IT is delivered with the requirements from business as the
driver and technology change as the enabler
Demand Vs. Capacity Forecast

Key IT Challenges

Server upgrade?

Controlling the cost as volumes grow and

Faster storage?
New architecture?
More storage?

What
next?

availability demand increases

Providing predictable services as

performance limits are approached

Controlling operational risk as the

headroom reduces
Preventing reputational risk from poor

customer experience or from breaching SLAs

Avoiding non-compliance issues from ageing

hardware and software

Resolving service incidents promptly as

infrastructure complexity increases

Being agile to business needs

Copyright 2011, Oracle. All rights reserved.

The requirements for a new platform must be delivering on

all these points

.. meet planned and

unplanned business
demands?

Automate all operations of applications and databases

Respond better to unforeseen customer events
Deliver a more stable and predictable service

... reduce the cost per

database/application instance
to maintain/improve margins

Lowest administration costs per instance for any platform

Scale with demand
Decrease data center costs

.. be agile to customer needs

Provide value adding services to customer

Increase the number of change windows
Reduce downtime (planned and un-planned)

... deliver business continuity

for any growth and
performance scenario

Deliver practically unlimited scalability

Ensure performance is always delivered
Handle all types of workload

Copyright 2011, Oracle. All rights reserved.

Building the new platform to sustain business

continuity should move you toward the cloud
Consolidation

Standardization

IT as a Service

Utility Computing

Time

SERVER1

SERVER2

ITaaS
SaaS

SERVER3

IaaS

SERVER4

PaaS

Private
Cloud

SERVER5

SERVER6
SERVER7

Consolidate Servers
Define SLA, build definitive
services library

Organization of IT resources
to manage services
Identify core technology ,
platform standards
Standardize contracts
Increase utilization and
virtualize resources

Standardize technical
architecture, storage, servers,
network
Services segmented by
customer deliverables
Hosting, Operations,
Development
Standardized operating
procedures
Deploy monitoring tools and
scorecards for operations

Virtualize technical

architecture, storage,
servers, network, VTL.
Location agnostic to
leverage space and
available capacity on-line
Auto-provisioning for
predefined environments
Enable Service SLAs for
all services delivered
Implement ITIL

Copyright 2011, Oracle. All rights reserved.

Automate ITIL based DC

processes
Full elastic computing for
scaling on-demand
IT as a Service
Full elasticity with
automated provisioning
and de-provisioning
Funded by a pay-per-use
utility model

Cloud economy connects CapEx/OpEx with the use and demand

patterns of the business
Private Cloud Computing Solution

Traditional Data Center Solution

Pay upfront for
hardware, software as
well as for
implementation based
on projected demand

Year 1

Year 2

Investments are made

based on utilization and
demand patterns of use,
provisioned in virtualized
infrastructure

Year 3

Return

Year 1

Cost

Year 2

Year 3

One of the advantages of private cloud computing model is that the investment is incurred in
the same period it is utilized. Cloud management implies demand driven computing capacity.
For CFOs, this means that investments track closer to return on assets
Source: Oracle Insight Research

Copyright 2011, Oracle. All rights reserved.

2010 Oracle Corporation Oracle and UN-ICC confidential

For IT there are three primary value drivers that will be delivered
from driving towards the cloud Consolidation, Performance and
Manageability
70% Reduction in
Labor Costs

75% Reduction in
Hardware Costs
100%
80%
60%
40%
20%
0%

50% Reduction from

Consolidation
25% Reduction from
Improved Performance

100%
80%
60%
40%
20%
0%
Compartive Labor
Costs

Comparative
Hardware Costs

30% Reduction in
Software Costs

60% Reduction in
Data Center Costs
40% Reduction from
Consolidation

100%
80%
60%
40%
20%
0%

35% Reduction from

Consolidation
15% Reduction from
Improved Performance
20% Reduction from
Greater Manageability

20% Reduction from

Improved Performance

100%
80%
60%
40%
20%
0%

Comparative Data
Center Costs

15% Reduction from

Consolidation
10% Reduction from
Improved Performance
5% Reduction from
Greater Manageability
Comparative
Software Costs

Copyright 2011, Oracle. All rights reserved.

Building an database & application platform as a PaaS on

Exadata and Exalogic delivers on the promise of the cloud?

Traditional
silo approach

Server Virtualization (IaaS)

Oracle Database &

Application Platform (PaaS)
Number of applications

Copyright 2011, Oracle. All rights reserved.

COST
QoS
SCALABILTY
COST
QoS
SCALABILTY
COST
QoS
SCALABILTY

Investing In Private Cloud Yields Strong Returns

Using A Model With ~10,000 Employees And ~$1B In Annual Revenues And $30M IT Budget

KEY METRICS

EXPECTED IMPROVEMENTS

ESTIMATED BENEFITS

30%

IT Capital Costs

60%

0%

Site Infrastructure
Cost

75%

0%
10%

Operating Expense

25%

$1.5M reduction in operations

costs due to automation and
reduction in DC complexity

15%

0%
50%

Energy Costs
0%
Overall Average

50%

$1M-$2M in deferring new

DCs and space requirements
in existing DCs

40%

20%

$3M-5M freed-up cash from

reduced capital expenditure

70%
75%

$1M reduction in energy costs

for increased utilization and
lights-out data center

Best Practice Groups

Implementing private clouds creates annual recurring savings of up to $10M

Source: Oracle Insight Analysis

Copyright 2011, Oracle. All rights reserved.

10

Based on customer case studies our experience with Exadata

gives a significant saving on deployment and maintenance
Build From Scratch
with Components

Reference
Configurations

Testing and
Validation

Installation and
configuration
Acquisition of
components

Oracle Exadata
Database Machine

Server Pool pre-configured

Faster deployment
Lower Risk
Testing and
Validation

Installation and
configuration
Testing and Validation

Pre-implementation
System sizing

Weeks to Months

Acquisition of
components
Weeks to Months

Configuration
Take delivery of Oracle
Database Machine

< 1 Week after Delivery

With Exadata, Commonwealth Bank of Australia reduced DB deployment time

from 3 months to < 1 week
Copyright 2011, Oracle. All rights reserved.

11

Use Case
Commonwealth Bank of Australia

The Commonwealth Bank is one of

Australias leading providers of
integrated financial services
including retail, business and
institutional banking, funds
management, superannuation,
insurance, investment and broking
services. The Bank is one of the
largest listed companies on the

Australian Stock Exchange.

Copyright 2011, Oracle. All rights reserved.

12

Use Case
Key Business Benefits

2010 Oracle Corporation Proprietary and Confidential

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 <15% to
80+%
Elasticity
CPU resource can be taken from anywhere in
the grid as needed
Horizontal workload scale out without changes
to any application!
Cost Reductions:
Server reduction improved green footprint
Oracle license reduction
Reduced data centre hosting charges
Higher Availability - Every App Inherits:
Load balancing
Full component-level HA failover
Standby DR RTO of 10 mins
Many apps would not implement these features
too expensive

Copyright 2011, Oracle. All rights reserved.

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44% of CIO surveyed by Forrester indicated that they are

actively looking to build a private cloud in the next
couple of years

2010 Oracle Corporation Proprietary and Confidential

Copyright 2011, Oracle. All rights reserved.

14

Oracle Insight Is A Program That Help Our Top Customers In

All Stages Of The Technology Investment Lifecycle
Establish the Business Case
and Roadmap for Technology
Investment

Accelerate Technology
Transformation by Aligning
Project & Business Objectives

Continuously Unlock More

Value from Technology
Investments

Align and Measure Technology

Initiatives Against Planned
Objectives

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15

Oracle Insight Will As An Investment Help You To Plan And

Quantify A Shift to Exadata/Exalogic*

Value
Analysis

Industry
Experience

Solution
Knowledge

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
* Availability based on qualification of each potential customer. For more information contact your local sales rep.

Copyright 2011, Oracle. All rights reserved.

16

Besides quantifying potential benefits of

modernization, we analyze and define the KPIs to
monitor the modernization

Through our benchmark database we define target- and base levels for
performance and operations and use these as KPIs for management to monitor
the infrastructure
Copyright 2011, Oracle. All rights reserved.

17

Key Performance Improvement Opportunities Are

Identified Based On A Comprehensive Framework
ITIL v3.0
DC PLANNING

COBIT
Services Planning

USMBOK
ISO 20000
TOGAF

Architectural Planning

DC OPERATIONAL
DESIGN

DC OPERATIONS

SLA Management

Customer Care

Configuration and
Change Management

Performance and
Availability Management

Release Management

Utilisation Management

Security Management
Information Lifecycle
Management

Provisioning and Patch

Management

Virtual Machine
Server

Oracle Unified Method

Storage

SAS 70 Type I and II

Network and Facilities

Oracle Insight will select the right processes based on the challenges to be
resolved and dig deeper into those processes to uncover these improvements

Copyright 2011, Oracle. All rights reserved.

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Thank You

Accept Nothing Less

Copyright 2011, Oracle. All rights reserved.

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