Iberia DCE Index 2011

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Data Center Efficiency Index Results
Fran Navarro
HW Sales Consultant

The Oracle Next Generation Data Centre Index

• Large numbers of senior IT personnel questioned
• Over 900 in 9 regions, to give statistical validity
• USA, UK, France, Germany/Switzerland, Italy, Iberia, Benelux, Nordics,
Middle East
• Large (>$100M revenue) or very large (>$1Bn) organisations
• No particular connection to Oracle (i.e. not necessarily customers)
• Answers can be converted into numbers 0 – 10
• Basic topic – Data Centres and how organisations set up and use them
• Sub-topics – Flexibility, Supportability, Sustainability
• Overall average give The Index number
• Also have Index numbers by country and industry
• Also have Index numbers for each sub-topic
• Repeat the research in several months to see what changes

© 2011 Oracle Corporation – Proprietary and Confidential 2

Top line Index results

• The Oracle Next Generation Data Centre Index for USA, Europe
and Middle East is 5.28
• USA = 5.79, Europe = 5.32, Middle East = 4.41
• Organisations are only moderately good at planning their IT future
• The biggest companies perform best
• Germany/Switzerland and Nordics lead Europe

DCH
Nordics
USA
Benelux
UK
Overall Average
France
Iberia
Italy
Middle East

0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00


Top line Index results

• Subtopics:
• Flexibility of deployment is preferred to Sustainability

Overall Index average

Data centre flexibility

Data centre sustainability

Data centre supportability

5 5,1 5,2 5,3 5,4


More Index Findings
• Telco, Utilities and Financial Services perform best
• There is a consistency across the results for both countries and
industries – some are “Gurus”, others are “Laggards”

Telco
Utilities
Other
Financial Services
Overall Average
Healthcare
Media
Public Sector
Retail

0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00


Country and Industry “hot spots”

• Industries
– Telco leads on Supportability, lags on Sustainability
– Utilities and Financial Services also ahead in Sustainability

Telco
Utilities
Average of Index
Other average
Financial Services Average of Data centre
Overall Average supportability
Healthcare Average of Data centre
Media sustainability
Public Sector Average of Data centre
Retail flexibility

0 2 4 6 8


What else does the research tell us?

Slow progress towards Consolidation
• Nearly a quarter (22 percent) of the surveyed organisations have still made
no progress
Virtualisation is still in its early stages
• Just 15 percent have more than 70% of their runtime estate virtualised
• Two-thirds have less than 50% virtualised
Server Utilisation remains stubbornly low
• Under a quarter (23 percent) have greater than 50% utilization
Big need for new Data Centre Facilities
• More than 50 percent stated that they will need a new data centre within the
next two years
• Approximately 1 in 14 (7 percent) already need a new data centre
• Only 20% of respondents have plans for rolling replacements of data centre
facilities.
• There seems to be little planning behind new data centre investments.


What else does the research tell us?

A fifth (20 percent) of respondents have very little formal
mechanism of systems management in place
– 20 percent manage on a per application basis
– Nearly a quarter (24 percent) manage on a per operating system basis
Low awareness of energy use
– Just 11 percent actively monitor the data centre’s usage to fully understand
how energy is being used
Lip service to sustainability
– Nearly half (44 percent) of the businesses questioned have a sustainability
statement but no plans to support it
There is much guesswork about future workload needs
– 21% are strictly reactive, 13% often guess wrong


Iberia Data

• 102 interviews were conducted across Iberia
• 71 interviews were conducted in Spain
• 31 in Portugal
• Spain
• 34 interviews in Spain were with Tier 1 companies,
• 37 with Tier 2
• Portugal
• 16 interviews were with Tier 1 companies,
• 15 with Tier 2

© 2011 Quocirca Ltd

Commentary

• 7th overall in the NGD index
• 6th in the DC flexibility index
• 7th in the DC sustainability index
• 7th in the DC supportability index

• Overall, a poor showing for Iberia, and there is little
chance that wholesale changes are likely to be
capable due to economic woes.
• However, highly focused changes could well be
effective – but will need external help to define,
architect and implement.


Breakdown of data centre types

B: We have a mix of a main in-house data centre plus external (co-location/outsourced) data centre facilities

C: We have a mix of several in-house data centres plus external (co-location/outsourced) data centres

D: We have a single in-house data centre only
E: We have several in-house data centres, with no external data centre facilities


How far off is the need for a new data centre?

We will not need to build a new data centre in the foreseeable future

We would need to build a new data centre in the next 5 years

We would need to build a new data centre in the next 2 years

We really need to build a new data centre within the next 12 months

We are already at the point where a new data centre is required

Don't know

0% 5% 10% 15% 20% 25% 30% 35%


How homogeneous is your platform?

Predominantly single operating system, with common application server
and common integration

Multiple operating systems with common application servers and common
integration

Multiple operating systems with common application server and little
integration

Multiple operating systems and application servers with common
integration

Multiple operating systems and application servers with little integration

Don’t know

0% 5% 10% 15% 20% 25% 30%


What level of systems management do you have in
place?

Predominantly a single vendor approach combined with best of breed
technologies where necessary to create a complete management solution

A single vendor approach covering the complete IT estate

Point solutions aimed at specific operating systems

Point solutions aimed at different applications

Very little formal mechanism for systems management

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


How much Virtualisation is there in your run time
environment?

>70% of the server hardware is virtualised

50-69% of the server hardware is virtualised



<10% of our server hardware is virtualised

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


What are the main reasons for new data centre
investments (if any)?

Need for consolidation

Need to support business growth

Age of existing facilities

Move to new technical architecture

Limitations of existing facilities

Replace facilities on a rolling basis

We have no new data centre investments planned

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


Does your organisation have a formal Sustainability
Plan?

We have a full statement and a plan to support it

We have a basic statement and a plan to support it

We have a full statement, with no plan to support it

We have a basic statement, with no formal plan to support it

We have no plan in place

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


What has been done within the data centre around
Consolidation?

Application rationalisation, virtualisation and workload consolidation have
been applied together to optimise data centre effectiveness

Virtualisation has been applied to enable better hardware utilisation

Multiple workloads have been applied to existing hardware assets

Multiple instances of applications have been rationalised down to a
minimum number

Nothing – we still have a highly heterogeneous environment

Don't know

0% 5% 10% 15% 20% 25% 30% 35%


Has Consolidation had any impact on the overall
Data Centre?

Yes – we now have fewer data centres with less space than we had 24
months ago

Yes – we now have fewer data centres but with about the same amount of
space as 24 months ago

Yes – we now have as many data centres but using less space than before

No – we still have as many data centres with as much space as 24 months
ago

No – we have more data centres or more data centre space than 24 months
ago

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


Do you know the energy usage for your Data Centre
environment?

I use energy metering within the data centre environment at a granular
level to fully understand how energy is being used

I receive a copy of the organisation’s energy bill with the data centre usage
calculated or split out separately

I use “plate values” for IT equipment to calculate a nominal energy basis for
the data centre environment

No – it is someone else’s responsibility

No – and I doubt anyone else does

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40%


What is the average server workload utilisation level
within your data centre?

> 51%

21% - 50%

11% - 20%

5% - 10%

<5%

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


Which of the following technologies have you
implemented or are actively looking at (i.e. talking to
possible suppliers)?
Free air cooling

DC power

Water cooling

Hot/cold aisles

Heat redistribution/heat pumps

Variable speed CRAC units

Higher temperature data centres

Containerised data centres

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%


What visibility do you believe you have on future
workload requirements?

We use advanced analytics based on a mix of historical usage patterns and
stated future business plans to predict future states

We use straight line predications based on historical usage

We try to second guess and get it right more often than not

We try to second guess, but often get it wrong

Very little – we will deal with tings as they come along

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40%


What visibility do you have on overall workload
performance across the business?

We measure performance based on real-world end user experience and
apply changes dynamically to meet needs

We measure performance based on synthetic testing and apply changes
dynamically to meet needs

We measure performance based on real-world end user experience and
advise the business what will be needed to ensure SLAs are met

We measure performance based on synthetic testing and advise the
business what will be needed to ensure SLAs are met

We mainly react when users call the help desk to complain about lack of
performance

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


How aligned is IT with the business' priorities?

The organisation has full, dynamic visibility of how IT supports the business
through full business dashboards

The organisation receives regular reports on what It is doing to support the
organisation’s priorities

The organisation and IT work closely together to create common plans for
how IT will support the organisation

The organisation dictates its needs to IT and we respond as best we can

There is little alignment between the organisation and IT

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40%


What level of systems availability does the data
centre environment provide?

Outages of any kind are rare due to how the data centres are architected

There are few unplanned or planned outages

There are few unplanned outages but many planned outages

There are few planned outages but many unplanned outages

There are many planned and unplanned outages

Don't know

0% 5% 10% 15% 20% 25% 30% 35%


What technologies are in use or being considered
(i.e. in discussion with suppliers) to minimise
outages?
Full stand-by power systems

Virtualisation

High availability servers

Proactive equipment monitoring

N+1 equipment redundancy

Clustering

Remote data mirroring

Full data centre mirroring

0% 10% 20% 30% 40% 50% 60%


What level of automation is in place to manage
patching and upgrades?

The IT estate is vigorously interrogated before any patches and upgrades
are applied, and exceptions are dealt with automatically

The IT estate is vigorously interrogated before any patches and updates are
applied, and exceptions are dealt with manually before application

Patches and upgrades are applied automatically, exceptions are automated
wherever possible

Patches and upgrades are applied automatically, exceptions are dealt with
manually

None – everything is done manually

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


What level of IT failure can your IT estate deal with
with minimal effect on the organisation?

The failure of a facility would have little to no impact on It services

The failure of a facility would not impact mission critical services, but would
impact other systems

The failure of a facility would have a major impact on the organisation

The failure of any single IT item will not have a big impact, as we run an
“N+1”environment

The failure of any single IT item will not impact any mission critical system,
but could impact other systems

The failure of any IT asset is likely to impact the organisation

Don’t know

0% 5% 10% 15% 20% 25% 30%


What technologies have the organisation already deployed or
are looking at (i.e. talking to vendors) around data access,
performance, security and availability?

SSD/Flash storage technologies

Centralised tape storage backup

Cross-data centre data archiving

End-to-end data encryption

Cross-data centre data mirroring

0% 5% 10% 15% 20% 25% 30%


How well do you believe that you understand cloud
computing?

I have already implemented, or am in the process of implementing a cloud
for my organisation

I have looked into cloud computing and believe that I fully understand the
concept

I have looked into cloud computing and feel that I understand the basics

I have looked into cloud computing, but feel very confused by what I have
seen

I have little understanding of cloud computing as I have not looked into the
subject

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40%


What is your overall view of cloud computing?

It is a complete game changer that will transform how IT and organisations
work together

It will be an important part of my organisation’s IT platform along with
existing approaches

It is purely a simple evolution of earlier technology approaches

It is just a passing fad to be overtaken by something new in a few months’
time

It has no place in the future of my organisation’s IT platform

Don’t know

0% 5% 10% 15% 20% 25% 30%


If you are going to adopt cloud, what comment best
matches your plans?

We will use a hybrid mix of internal and/or external private clouds, mixed
with public cloud services as required

We will use private clouds using external data centre facilities

We will create one or more private internal clouds to support the
organisation, but not use public clouds

We will only adopt public external cloud services

We have no plans to adopt cloud

Don’t know

0% 5% 10% 15% 20% 25% 30%


What are your views on cloud security

Security in the cloud is essentially no different to security in any other IT
environment

Security needs a different approach than we have used in our existing IT
environment, but should be relatively easy to deal with

Security is an issue, but no more than other issues within cloud computing

Security is a major issue that is top of our mind while we look at cloud
computing

Issues around cloud security are what is stopping us from looking at cloud
computing in the organisation

Don’t know

0% 5% 10% 15% 20% 25% 30% 35% 40%


What statement best matches your view on available public
cloud platforms? (e.g. Microsoft Azure, Google App Engine,
Amazon EC2)

Cloud interoperability standards will emerge that will mask any issues over
platform choice

There is a good choice of platforms for an organisation to choose from

I feel that it is likely that an alternative public cloud platform will emerge
from one of the large IT vendors and become a predominant player

It is too early to say and each platform has yet to mature sufficiently

Each platform is still proprietary and could result in lock in

Don’t know

0% 5% 10% 15% 20% 25% 30% 35%


Conclusions
• Organisations are missing some basic tricks to improve their IT infrastructure
• E.g. a cost-effective, rapid return technique such as increased running temperature is at the
bottom of the list
• Systems management has a key role to play
• Companies with good systems management scored better
• Virtualisation and consolidation are not as widespread as one might think
• Only 11% have carried out rationalisation, virtualisation and workload consolidation as a
planned exercise
• Automation has a long way to go
• Only 5 percent have a fully automated capability to manage patches and upgrades
• Lip service is being paid to sustainability.
• This may be down to financial pressures and seeing sustainability as a cost to be avoided.
• There is a big need for new data centre facilities.
• While building new facilities, there will also be a big need for better planning of the facility for
flexibility and to embrace new technical architectures


ORACLE’S VIEW


Major Trends Affecting Datacenters

Data Volumes Energy Efficiency

Compute Density Evolving Skills

Globalization Green Initiatives


Datacenter Trends

Physical Virtual, Cloud
Dedicated Shared
Heterogeneous Standardized
Manual management Automated management
IT managed Self-service
Assembly of Engineered systems
Components assembled at factory


Evolution Of The Datacenter

Traditional Transitional Optimized Cloud

1
Pt. to Pt. Integrations
Client

FBT PAY G
NTS

TRDS
Customs NTS A/c
Inv
Data…….
SFAProduct product ERP SCM productMES- DB LMS MGMT
Penalty SFA-Product ERP- product Dev
DB-
Stage
B2B
B2B- PaaS IaaS
RBA
SFA Stage Stage B2B- Stage
RRE
IPS Refunds
De f
Product ERP- MES- MES-
Integrated A/C
1 SFA- Dev
Test Prod Stage Prod
Excise Payments

Business
CR

PKI CDCC
ECI ADD

DDDR
CWMS
AWA

GCI
ELS
Staff
Phone
CCD

TASS
Compliance
Staff

B us. Intel
Rationalization
SFAProduct
Product
product ERP SCM
ERP-
Stage
productMES- DB
product Dev
DB-
Stage
LMSInv
MGMT IT-as-a-Service
SaaS
IVR WOC
Ref aterial
m

Remote TAX
B OA
Security Security Security Security
Client B ANK Staff Staff AGENTS Call Centres
B EP

• Physical silos • Migrate Legacy • Virtualize all layers • Virtualized pools of
applications resources
• Peak load sized • Integrated from
• Standardized applications to disk • Shared Services
• Heterogeneous platforms
• Any scale, vertical • Provision Services,
• Difficult to scale • Right size for and horizontal Transactions
• Expensive to workloads
• Enterprise wide • Modular
manage • Consolidate and Management infrastructure
virtualize servers


The Journey to IT Transformation

Massively Building Massively
Customized Blocks Simplified
Game Changing


The Transformation Process

1. Migrate legacy applications and interfaces
– Oracle Virtualization, SPARC Supercluster, Exalogic
2. Standardize OS, compute and storage platforms
– Oracle Enterprise Linux, Solaris, Storage
3. Consolidate, virtualize and manage storage, servers
and applications
– Oracle VM, Oracle Exadata, Oracle Enterprise Manager
– For example, Oracle Exadata can
• slash an electricity bill by 87.5%
• Reduce floor space by 75%
• Shrink a data centre from a building to a single floor


Oracle’s Credentials

• Between 2006 and 2010, Oracle more than doubled
its employee numbers but still managed to reduce its
data centres from more than 40 to two
• This has led to a US$1 billion bottom line saving
• This was achieved against a backdrop of acquiring
multiple companies
• Oracle has taken advantage of its own technology to
increase server utilisation from seven percent to 70
percent


Oracle Moves Away From Point Solutions

• Application instances
• HR databases
• Accounting databases
• Customer databases

Oracle Corporation 1990s


Oracle Builds The Integrated Enterprise

Oracle’s E-Business
Transformation Saves
$1 Billion

• Global single instance
of E-Business Suite
• One best global
process
• Centralized decision
making


Migrating Oracle’s Mission Critical ERP
System
8 Week Migration with 16 People
Starting point End game

• 2 ERP systems • 1 ERP System
• 4 node E25K • 2 node M9000
Cluster Cluster
• Solaris 9 • Solaris 10
• Solaris Cluster • Solaris Cluster
3.1 3.2
• Veritas Volume • Solaris Volume
Management Management

Simultaneous Upgrade of Hardware, Operating System, HA Software and File System


Oracle IT: Oracle Development
Self-Service Private Cloud

Implementation Overview:
Scope/Scale - Over 2600 physical servers with over 6000 Virtual
Servers used by over 3500 developers
Activations – Processing over 70 jobs per day, this translates into
over 45,000 jobs processed supporting production and test
requirements.
Utilization – Rates on these servers averages 80% 7 days a week
and can reach 90% during peak times.
Results/Benefits:
Increase in development productivity
Self-Service system for creation of development environments
Cleaner code lines as environments are created quickly for more
thorough testing/validation.
Physical Server/Environmental Reduction by 75%
Server/Apps Deployment reduced by 80%


Summary

• The Oracle Next Generation Data Centre Index for Europe,
Middle East and the USA is 5.28 on a scale from 0 to 10
• Moderate performance
• Some quick tricks and some basic principles missed
• Gurus and Laggards
• Some countries are consistently better than others
• Some industries are consistently better than others
• Systems Management is a key discipline
• Consolidation, Virtualisation and Server Utilisation are all
stubbornly low
• Oracle’s integrated stack can carry multiple benefits
• Let’s see how the needle has moved next year!


Next Generation Data Centre Index


Iberia DCE Index 2011

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