Commonwealth Bank of Australia's Private Cloud Implementation

1. Building Private Clouds
Scars and Arrows
A Private Cloud Case Study of
Commonwealth Bank of Australia

2. Agenda
Introduction to Commonwealth Bank0
Oracle as a Service (OaaS)1
On Demand Platform (ODP) and iPaaS2
Enterprise Platform (EP)3

3. Commonwealth Bank
The Commonwealth Bank is one
of Australia’s 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.

4. CBA Vision
What does “as a service” look like…
“As a service” enables flexibility and innovation
4
Pay
as
you
go
Only
pay
for
the
products
and
services
used.
Contracts
are
based
on
flexibility
versus
fixed
term
/
usage.
Contestability
Vendors
bid
for
business
with
compe??ve
pricing
rather
than
being
guaranteed
as
an
exclusive
provider.
On-­‐demand
Technology
requests
are
fulfilled
with
immediate,
real-­‐?me
provisioning.
Automa9on
Improve
speed
to
market
and
reduce
variability.
Enable
self
service.
Standardisa9on
Standardised
products
and
service
offerings
allow
greater
agility
and
cost
effec?veness.
Workload
portability
Be
able
to
move
applica?ons
between
like
infrastructure
(and
vendors)
to
increase
contestability
and
drive
value.

5. Key Terms – IaaS and iPaaS
Service
Orchestra9on
Applica9on
Workload
SoBware
PlaDorm
(IIS/.NET,
Weblogic,
SQL,
etc)
CBA
SOE
(Standard
opera9ng
environment)
Opera9ng
System
Hypervisor
Physical
Compute
Resources
(Processor,
Memory,
Storage)
Network
Infrastructure
iPaaS
Infrastructure
PlaMorm-­‐as-­‐a-­‐
Service
-­‐
iPaaS
is
defined
as
“thick”
infrastructure
that
can
be
accessed
over
the
network.
PlaMorms
are
pre-­‐integrated
resource
assemblies
that
can
be
auto-­‐provisioned
and
serve
as
building
blocks
for
new
solu?ons.
IaaS
Infrastructure
delivery
model
such
that
consumers
can
rent
virtualized
resources
(compute,
storage,
network)
maintained,
operated
and
supported
by
the
internal
or
external
provider.
IaaS
includes
hypervisor,
if
necessary.

6. Agenda
Introduction to Commonwealth Bank0
Oracle as a Service (OaaS)1
On Demand Platform (ODP) and iPaaS2
Enterprise Platform (EP)3

7. Overview - Oracle as a Service (OaaS)
• Provide Oracle database services via the Platform as a Service (PaaS)
model within its Corporate Private Cloud.
– Build a shared infrastructure and software platform
– Uniform, standardised service offering
– Oracle database services “on tap”
• Aim to consolidate up to 300+ small to medium database environments on
to 3 Grids
– Centralise management of Oracle systems
– Significantly reduce number of servers and associated s/w licence & hosting charges
– Clean up the “rats & mice”
• Operationalise
– Define common hosting standards and support arrangements
– Employ a dedicated team of Oracle DBAs to manage the platform, not each
application
– Apply a sophisticated charge-back model for cost recovery

8. • 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
Key OaaS Benefits to CBA

9. Approach: Candidate App Selection
ConstrainttoMigrate
Technical readiness for the Platform
No
constraints
Many
constraints
Not Ready Very Ready
xxx1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
xxxx
xxxx
xxxx
xxxx
xx
xxxx
xxxx
xxx
xxx
xx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
x
xxx)
xx
xxx
xxx
xxx
xxx
26
27
28
29
30
31
32
xxx
xxx
xxx
xxxx
xxx
xxx
xxx
33
34
35
36
xxxx
xxx
xxxx
xxx
37 xxxx
1
2 3
5
6
7
8 9
10
11
12
13
14
15
16
17
18
19 20
21
22
23
24
25
26
27
28
29
30 31
32
33
34
35
36
37
4
Workload Legend
Immediate Platform
candidates
Longer term
Platform prospects
Unlikely to be
migrated
OLTP
OLQP
DW /BI
Hybrid
Applications are in various states of Platform ‘readiness’ – most remediation was minor
Clusters of Oracle based applications ready for Platform migration were apparent

10. Charge Back Model
• Settled on a CPU Month measure of resource usage
– Simple to understand
– Set a minimum monthly charge of 0.5 CPU month – the base hosting fee
• Pay-as-go utility charge back
– No upfront charge or ongoing commitment
– Pricing variability was an issue – BU finance preferred budget certainty
– First year, billed in 0.5 CPU Month increments, now moving to 0.1 increments
• The service is "overbooked" – recover 89 CPUs worth of capacity; only have
72!
Service Name DB Time (s) DB CPU (s) Physical Reads Logical Reads
OSPA_MITG 12,300.50 5,144.90 1,438,859 99,811,632
OSPA _DCM 3,163.90 2,141.80 114,736 46,540,055
OSPA _CCL 2,496.30 1,455.40 127,937 64,295,226
OSPA _THL 984.50 725.70 32,184 5,404,057
OSPA _CPI 339.10 160.40 16,673 1,671,850
OSPA _MDC 154.90 85.50 13,638 1,473,399
OSPA _IFW 16.00 10.50 225 17,895
OSPA _PFR 16.80 6.70 1,291 85,457
Service Usage Metrics
• Many ways to apportion cost
– No standard measure of chargeable
resource unit
– How do you measure workload?
– Each to their own for the moment!

11. Reduce Risk, Improve Time to Market
• For new Projects:
– Remove a phase from the project – infrastructure already in place
– Remove reliance on expensive/scarce SME resources for design and build
– No longer need to manage risk associated with procurement and build
– Time to instantiate a new Production quality environment: 3 months -> 2 minutes.
• Example: New ISV Application introduced into the Online Share Trading platform
– Required to test performance under the workload and data volume conditions projected in 2 years
time.
Dedicated
Infrastructure
OaaS
Implementa?on
Time
3-­‐4
months
few
hours
$
Cost
to
Project
Several
hundred
thousand
<
$10K
On
Project
Comple?on
Under-­‐u?lized
asset
remains
Environment
turned-­‐off

12. Cost Savings
• Requires initial investment to set up the new Service
• Can break-even within one financial year
– To get quick pay back, a plan to migrate existing apps is essential
• Needs to be a centralised offering
– Leverage the size of your organisation as does any public cloud provider
$
Number of applications
Traditional silo approach
Grid computing model

13. What Savings is CBA realising?
• P&L breakeven in Year 1, cashflow positive Year 2
• 150% ROI over five years – and that’s for the consolidation only
– If you factor in cost avoidance – costs not incurred by new applications – ROI is higher again
• Per application OaaS OpEx charge is 40% – 50% of a standalone environment
Oracle as a Service Overall P&L Impact
0
FY08-09
CumulativeP&Limpact/month

14. OaaS Evolution at CBA
Cluster of
Enterprise-Class
Sun Servers,
integrated by CBA
(Platinum Grid)
Cluster of
Commodity-Class
Sun Servers,
integrated by CBA
(OaaS v1)
Cluster of Industry-
Standard Sun
Servers, integrated
by Oracle
(OaaS v2)

15. Thoughts on Implementing PaaS
• Take the Time to get the Right Technical / Commercial Solution
– It is not all about Hypervisors; doesn't have to be x86.
– Different virtualisation techniques have different densities – resulting in
different economics
• Must have Buy-in from Application Owners
– Detailed plan of when and how to migrate applications
• Go for Quick Wins
– Migrate / host the easiest apps first
• Invest in Governance and Operational Process Improvement
– Much, much more than a technology solution
• Have a Clear, Consistent, Accurate Sales Pitch
– Beware the FUD factor; can derail many an initiative

16. Agenda
Introduction to Commonwealth Bank0
Oracle as a Service (OaaS)1
On Demand Platform (ODP) and iPaaS2
Enterprise Platform (EP)3

17. On Demand Platform (ODP)
• Introduce a panel of IaaS Service Providers
– Using the developed Reference Architecture, implement our internal, standardised,
commodity x86 IaaS infrastructure.
– Onboard additional Service Providers to introduce contestability
– Centralised, unified management software which provides a single point of control
over all our IaaS Service Providers and take advantage of infrastructure arbitrage
• Infrastructure Platforms as a Service (iPaaS)
– Infrastructure Platforms are pre-integrated software assemblies
– A set of standard, pre-built containers into which we build and run applications and
services, delivered as-a-Service.
– A single repository of all Platform images, deployable to any Service Provider at any
time, subject to policy conditions being met
• Application Migration
– Opportunities for customers to Pilot ODP with their applications/workloads
– Support to port and/or remediate applications/workloads on to standard platforms

18. IaaS
Delivery
Model
Roadmap
Focus for CBA, maturing our capability to the right
• Internal
network
• Within
CBA
data
centers
• Enterprise
owned
• Security
Zone
Model
• Legacy
Applica?ons
• 3rd
party
owned
&
operated
• Standardised
offering
• Onshore
• Some
shared
infrastructure
• Security
Zone
Model
• Shared
infrastructure
• Shared
facility
and
staff
• VPN
access
• Onshore
&
offshore
• Shared
resources
• True
elas?c
scale
• Pay
as
you
go
• Public
internet
• Onshore
&
offshore

19. ODP Product Overview
• ODP consists of SEVEN Products – FIVE Platforms, IaaS and Data Storage
• ODP is available in THREE Service Tiers
IaaS
(Infrastructure
as a Service,
available in
Sandbox only)
SQL Server
Platform
(database server)
Red Hat Linux
Platform
(operating system)
WebLogic
Platform
(application server)
IIS/.NET
Platform
(application server)
Windows
Platform
(operating system)
MS
Windows
2008
R2
MS
IIS
7.0/
.NET
4.0
MS
SQL
Server
2008
R2
RHEL
5.6
Oracle
WebLogic
Server
11gR2
Compute
Host
PlaMorm
(CHP)
Data
Storage
Sandbox
IaaSSQL Server RHEL WebLogicIIS/.NETWindows
Non
Produc9on
SQL Server RHEL WebLogicIIS/.NETWindows
Produc9on
SQL Server RHEL WebLogicIIS/.NETWindows

20. Standardised Resource Units
• Standard On-Demand Instances
• High-Memory On-Demand Instances
Name
Unique
Name
Descrip9on
vCPU
RAM
(GB)
Small
(default)
Standard
On-­‐Demand
Instance
–
Small
1
vCPU,
2GB
RAM
1
2
Medium
Standard
On-­‐Demand
Instance
–
Medium
2
vCPU,
4GB
RAM
2
4
Large
Standard
On-­‐Demand
Instance
–
Large
4
vCPU,
8GB
RAM
4
8
Extra
Large
Standard
On-­‐Demand
Instance
–
Extra
Large
8
vCPU,
16GB
RAM
8
16
Name
Unique
Name
Descrip9on
vCPU
RAM
(GB)
Small
High-­‐Memory
On-­‐Demand
Instance
–
Small
1
vCPU,
4GB
RAM
1
4
Medium
High-­‐Memory
On-­‐Demand
Instance
–
Medium
2
vCPU,
8GB
RAM
2
8
Large
High-­‐Memory
On-­‐Demand
Instance
–
Large
4
vCPU,
16GB
RAM
4
16

21. Building
a
Stack
or
Image
– PlaMorms
are
designed
for
re-­‐use
and
not
applica?on-­‐specific
– “Design
Once,
Provision
Anywhere”

22. End
State
Map
APIs
Service
Provider
1
APIs
Service
Provider
2
APIs
Service
Provider
3
Mode: Hosted Private Internal
Location: CBA Data Centre
Mode: Private External
Location: Sydney Metro
Mode: Public External
Location: Singapore, US
Mode: CBA Private Internal
Location: CBA Data Centre
Hypervisor
Compute
Storage
Network
Web
DB
App
App 3
App 1
App 2
App 5
App 4
App 8
App 6
App 7
App 11
App 10
App 9
Web
DB
App
Web
DB
App
Web
DB
App

23. ServiceMesh Agility Platform
• Customers
use
the
Agility
PlaMorm
for
ODP
Lifecycle
Management
23
• Build
topologies
to
structure
your
workspace
• Reuse
our
standard
PlaMorm
stacks
or
use
them
as
a
base
to
create
your
own
• Build
templates
that
encourage
reuse
and
standardisa?on
• Create,
start
and
stop
instances
(virtual
machines)
on-­‐demand

24. Customer Self-Provisioning

25. Options for Application Migration
Remediate
Applica9on
PorDolio
Layer
Business
Logic
Unchanged
–
embedded
in
stateful
image
Unchanged
Refactored
to
align
with
“cloud
na?ve”
design
palerns
Applica9on
Framework
Unchanged
–
embedded
in
stateful
image
Possible
upgrade
to
the
current
IPaaS
PlaMorm
&
OS
versions
Refactored
to
align
with
“cloud
na?ve”
design
palerns
PlaDorm
(e.g.
IIS/.Net)
Unchanged
–
embedded
in
stateful
image
Possible
version
upgrade
Possible
version
upgrade
Opera9ng
System
(e.g.
Windows
2008)
Unchanged
–
embedded
in
stateful
image
Possible
version
upgrade
Possible
version
upgrade
Agility
Integra9on
Yes
Yes
Yes
Migra9on
Group
1
“Stateful”
Migra9on
Group
2
“Less
Stateful”
Migra9on
Group
3
“Stateless
/
Cloud
Na9ve”

26. Agenda
Introduction to Commonwealth Bank0
Oracle as a Service (OaaS)1
On Demand Platform (ODP) and iPaaS2
Enterprise Platform (EP)3

27. Motivations for the Enterprise Platform (EP)
• Consistent and efficient business solution delivery
– New operating model which enshrines efficiencies
around shared services and simplified activities in a
constrained environment
• Architectural support and operational alignment
with business architecture strategic initiatives
– Process Excellence, etc.
• Remediation of SOA & BPM deficiencies

28. Shared
SCCM /
SCOM
EmaaS
Active
Directory
LOADBALANCER
DevOps Environment Engineering
IBM WBSF (including WPS / WESB)IBM WBSF (including WPS / WESB)SOA SM
Network Director
IBM Teamworks
WAS Image
SOA SM
Network Director
SOA
Policy
Manager
C
C
C
S
IBM WBSF (including WPS / WESB)
WAS Image
C
SOA
Repository
Manager
C
S
ND Image
PM Image PM Image
WSRR
WSRR Image Data
Cache
iTKO LISA
Test (IT)
iTKO Image
iTKO LISA
Virtualize
(IV)iTKO Image
iTKO LISA
Registry (IR)
iTKO Image
SOA
Agent
iTKO
Agent
SOA
Agent
iTKO
Agent Oracle 11.2
Oracle
Image
* Interfaces shown are indicative only – full detail contained in the Non-Production Deployment Architecture
C
Cluster-
able
S Environment
Singleton
iTKO SOA IBM Images
ConnectedPhysicalEndpoints
Enterprise Platform Topology

29. EP DevOps Architecture & Tooling

30. Thank You