Cedar Day 2018 - Cloud IaaS - Ken MacMahon

Copyright ©2018 Version 1. All rights reserved.
Thinking of moving your On-Premise
System to the Cloud?
A real world case study.
Ken MacMahon, Head of Solutions Architecture, Version 1

• An Introduction to Version 1
• “Flavours of Cloud” – Options for PSFT Customers
• Cloud Deployment Options – Pros and Cons
• A Real World Case Study – Irish Life
• Cloud Upgrade / Migration – Project Phases
• Headaches we had to solve… Don’t make the same
mistakes!!
• See how you can apply this to your organisation
• Reference for you to move On-Premise Systems to Cloud
• Q&A
What would I like you to take away??

Our Difference: Strength in Balance
Customer Success
Making a real difference through long-term, outcome focused
relationships – success that fulfils our people and fuels our
growth.
Empowered People
Deliberately selecting, empowering and trusting people who
are wired to deliver customer success - an empowerment that
drives customer loyalty and organisational strength.
Strong Organisation
A high-performing, financially strong organisation of the
highest integrity – a strength that empowers our people and
delivers customer success.

Version 1 at a Glance
€100M
£86M
98%
CUSTOMER
RETENTION
3
LEADING TECHNOLOGY
PARTNERS
1000+
EMPLOYEES
IN UK AND IRELAND
#1
ORACLE PARTNER
Voted by UK OUG users
400
CUSTOMERS
Top 10
WORKPLACES IN EUROPE
5
UK ACQUISITIONS
20 YEARS
PROVING VALUE OF I.T.

Trusted to Deliver Customer Success

Paths to Cloud for Peoplesoft Customers
Re-platform on Public Cloud
Extend with SaaS (Hybrid)
Migrate to SaaS
• Start with DEV/TEST
• Add or Migrate your DR on Cloud
• Place your “Reporting” Emv. On Cloud
• Shift your PROD to Cloud when ready
• Adaptive Intelligent Apps
• Extend with HCM & CX Cloud
• Extend with OTM, GTM
• PBCS
• Migrate by Pillar
• Migrate by Product Line or BU
• Migrate by Country/Region
• Avoid complex integration scenarios

All the Tiers of Cloud

Characteristics of Solution Options
Oracle On-Premise (EBS/JDE/PSFT) Oracle Cloud SaaS
• Mature Product and Technology • Shares many Product and Technology components
• Complete Functional Footprint • Less Complete Functional Footprint
• Can be hosted and supported ‘On-Premise’ • Primarily delivered as SaaS
• Large Global Install Base • Less Global Reference
• 3rd party/In-house Support and Maintenance • Less 3rd Party/In-House Support/Maintenance
• Customisable • Configurable
• No direct upgrade path to Cloud ERP • Future direction for Oracle
• Innovative Commercial Terms
• Rich Product set and Features
• Zero Technical configuration (SaaS)
• No more upgrades

Leverage the Cloud TODAY
Database
Java
DocCS
Process
Integration
Big DataBusiness
Intelligence
Mobile
SaaS Applications
On-Premise
PaaS/IaaS

Comparing-PSFT - On-Premise vs Cloud (IaaS)

Pros and Cons – On-Premise
Pros Cons
Full control of infrastructure remains with customer’s IT
teams.
More expensive to run and operate on like-for-like
comparison considering hosting costs, storage,
power, cooling etc.
Ability to migrate to new or alternate hardware
platforms is completely in the control of customer.
Less, if any, ability to ramp-up or down, spend on
infrastructure to meet demands.
Ability to fully comply with internal controls and
regulatory requirements.
Underlying infrastructure for applications e.g.
EBS/JDE/PSFT must be built and installed from the
ground up.
Greater ability to sweat existing assets for which there
has already been investment made.
Continuous cycle of ‘Hardware Refreshes’
Complete flexibility in O/S versions/flavors, levels of
patching etc. that can be applied to the infrastructure.

Pros and Cons – Cloud IaaS/PaaS
Pros Cons
Ability to scale-up / down Compute resources to
suit needs as required.
Dependent on 3rd party provider for provision of
Compute/Infrastructure.
No longer any requirement to complete ‘hardware
refreshes’.
Limited to T&C and SLA of Cloud provider.
Reduced IT administration costs. Can require approvals, for legislative or others
reasons, for hosting of data/services in other
geographies.
Removes costs of infrastructure hosting e.g. DCs,
AirCon, Lighting etc.
Can be difficult to implement in an organization
with no Cloud policy or strategy.
Shapes/configurations provided to suit particular
workloads by vendors e.g. EBS/JDE/PSFT from
Oracle.
Care is required when licencing software in Cloud
on BYOL models.
Non-production e.g. Development environments,
can be run on an On-Demand/hourly model.
Still a shared responsibility model which needs to
be understood. (See later slide)
Scale and competition means low cost of Cloud
compute resources for end customers.

But which one Public Cloud??

Track Record in Enterprise
Technology Track record
Position in Public Cloud
“Cloud-First” Thinking
Data Centre locations
Security and Data Protection
Cloud Technical Offering
Integration across offerings
License Complexity & Compliance
Certification and Support for Oracle Workloads
Cost effectiveness* on Indicative Workload 1st 3rd 2nd
AMAZON
WEB SERVICES
AREA
ORACLE
CLOUD
AMAZON
WEB SERVICES
MICROSOFT
AZURE

Helping people build
better futures
Profile:
• Ireland’s leading life and
pensions group
• 30% + Market Share
• Risk protection, pension,
savings & investment
products for both the
individual and group
markets.
Profile:
• Over 628,000 customers
• Provides group retirement
and risk products to
employer and affinity groups
• Insures 1 in 6 private sector
employees.

Journey to the Oracle CloudJourney to the Oracle Cloud
• Like most Financial Services company’s they take a conservative risk adverse
approach when it comes to adopting new technology.
• In 2016 Irish Life made “Platform decisions” a core pillar of their IT strategy.
Irish Life did this to ensure the On-Premise Versus Cloud debate took place each time
they looked to introduce, replace or update an IT system
So why did Irish Life choose to put Oracle e-Business Suite in the Cloud?
• It came down to three primary factors
1. Total cost of ownership over a 5+ year period
2. System vitality
3. Supportability, scalability and flexibility

The Project Brief
• Oracle e-Business Suite: 11.5.10.2/10g -> 12.2.5/12c
• Implement HTTPS and sFTP for all integrations and
Connections
• Encrypt all data at rest using Transparent Data
Encryption
• Re-platform Decision: HP-UX to …..???
• Help Irish Life make the best “Platform Decision”

Two Key Phases – In 1 Project
Oracle Upgrade
Feasibility Assessment
+ Oracle EBS Upgrade and
Migration to Oracle
Cloud IaaS

Project Timeline
Oct. Nov. Dec. Jan. Feb. May Sept.
Oracle
Upgrade
Feasibility
Decision
to Proceed
with upgrade
Upgrade
Project
Start
Upgrade
OATM/10g
On-Premise
Go-Live
Oracle Cloud
(IaaS)
2016 2017

Why did we consider Cloud IaaS?
• Offers more options as part of the upgrade
• Stand-up development environments quickly
• Cost-effective to deploy and support
• Reduce Cost and Improve agility
• Move our Maintenance/Support closer to a SaaS model for EBS
• Ability to scale quickly and easily
• A. As part of the Upgrade
• B. As the business grows

Why Oracle Cloud vs Others?
• Deep knowledge of Oracle’s developing IaaS solution
• Potential to use a mix of Oracle PaaS and IaaS
• Wanted clarity on Licencing, Support and Certification
• Ability to Leverage Oracle Cloud Automation Tools*
• Wanted support from a small number of enterprise vendors
• Saw that with Version 1 + Oracle = Enterprise Cloud with Delivery

Reference
Architecture
Candidate
Selection
Deployment
Architecture
Automation Tools
What was our approach?
Managed
Services

Phase 1
Oracle Upgrade

• Assess Oracle Cloud Reference Architecture (OCRA) vs Requirements
• Deployment architecture for Oracle e-Business Suite (R12) on Oracle
Cloud (IaaS)
• Detailed Upgrade and Migration for R12 to Oracle Cloud (IaaS)
• Detailed Comparative Costs of Oracle Cloud vs On-Premise
– Considering both Project & Support Costs
– Internal and External Costs
– Hardware. OS, Licensing and 3rd Party Support Costs

Business
Support Services
Contracts & Agreements
Services
Subscriptions, Orders &
Customer Services
Account, Billing &
Metering Services
Compliance Services
(Audit, Reporting & Policies)
Management &
Operations Services
Information
Security
Risk &
Compliance
Cloud Security Services
Identity &
Authorisation
Data Protection,
(Data Centers, Hosting locations,
Regions & Zones)
Corporate
Connectivity
Threat &
Vulnerability
Management
Physical Resources
Compute Network Storage
Cloud Architecture Principles
Vendor Reference & Deployment Architecture Models
Enterprise Cloud Customers
Secure Connection
Service
Catalogue
IaaS PaaS SaaS
Product
Catalogue
Product & Service Catalogue
Change & Configuration Management
Cloud Broker & Aggregated Services
Deployment Services
Interoperability Services
Capacity & Performance
Services
Service Level Agreement
(Service Levels, Service Scaling and
Orchestration & Availabilityand Continuity)
Service Lifecycle
Third Party, Cloud Broker
Management & Monitoring
For Irish Life this meant in
effect 1000+ questions:
• Version 1 & Oracle Cloud
offering
• ICOFR, ISO , etc.
• Compliance, Physical and
Environment Security,
Organisational Security,
Cyber – SIEM, Intrusion
Protection etc.
• Ensure there were no gaps
• Resolve through agreed
terms/clauses

The Feasibility Report
detailed the following;
• The four areas of the Reference
Architecture and the requirements
thereof.
• The priority for each capability
specific to the Customer’s
requirements.
• Assessment of the Oracle Cloud
offering fit for each capability.
Findings - OCRA vs Requirements
Analysis Findings
Customer Priority
Oracle
Cloud
Fit
Low Medium High
12 9 38
6 1 14
3 0 0

The Feasibility Report detailed the
following;
• Key integrations that will be required
between Oracle e-Business Suite and
On-Premise Applications.
• Used to assess
– Volume of Data
Transfers/Latency.
– Requirements for Oracle Fast
Connect.
– VPN requirements / solution
Corente
• Key areas for Testing –
– Performance, Security and
Bandwidth requirements.
Findings – Cloud Candidate Selection

Customer - Deployment Architecture
• Oracle R12 high-level
design for the
Deployment
Architecture.
• Report provided
information on the key
features of the
proposed architecture
in greater detail.

0
100,000
200,000
300,000
400,000
500,000
Project Costs Comparison
Project
On Premise
Project (Including Investment Costs)
Cloud
0
500,000
1,000,000
On Premise Cloud
17% Saving
Licence Costs
Infrastructure Costs
External IT Resources
Internal IT Resources
Business Resources
Project Cost Comparison:
Cloud vs On-Premise

On-Going Cost Comparison:
Cloud vs On-Premise (BAU)
0
100,000
200,000
On Premise Cloud
26% Saving
Licence Costs
Infrastructure Costs
External IT Resources
Internal IT Resources
Business Resources
0
20,000
40,000
60,000
80,000
100,000
On-going Costs Comparison
BAU On Premise BAU Cloud

Solution Cloud End State – with MSP
‘Applications Unlimited’ ‘as a Service’
Managed Oracle Cloud
Features
 Full ITIL & ISO27001
 Service – Complete Application Support,
Patching & Upgrades
 Deployed on Oracle Cloud
 Full SLA
• Integration
• Data Fixes
• Queries
– Oracle IaaS – Provided by Oracle
– Oracle PaaS – Oracle and Version 1
– Oracle e-Business Suite ‘Quasi-SaaS’ –Version 1

Oracle EBS Upgrade and
Migration to Oracle
Cloud IaaS
Phase 2

Project Timeline
Oct. Nov. Dec. Jan. Feb. May Sept.
Oracle
Upgrade
Feasibility
Upgrade
Project
Start
Upgrade
OATM/10g
On-Premise
Go-Live
Oracle Cloud
(IaaS)
2016 2017

Cloud Infrastructure
How did we leverage ‘the power of Cloud’?
Bursting for
Upgrades
Stood up early
Vision instances to
allow CEMLI work
Reduced
Dependency on
Irish Life Internal IT
Teams

What the DBAs Said…
Project hours saved during
installation.
The EBS server came pre-configured
and the process of building &
maintaining a compute instance in
the cloud is not complicated.
But remember…
..you need to apply your own
Hardening / CIS Standards
Scalability.
Ability to burst and scale up when
required.
Key requirement when doing an
complex upgrade
But remember…
…you can only burst by 100% of
your Non-Metered Capacity

What the Funcs/Techs said…
Early Start on CEMLI Upgrade:
Used R12.2 Vision instances for Initial
CEMLI Upgrade
User Training/Familiarisation for 12.2:
Stood up cloud Vision Instances for
Training/KT

What the DBAs Said…
Be prepared for SQL tuning.
SQL jobs that took 10 minutes to run on premise
took twice as long to run in the cloud. Changing
the “array size” in SQL*Plus the number of
roundtrips were reduced and execution times were
reduced, e.g. from 10 mins to 30 seconds.
Be prepared for Network tuning
A reduced MTU in the on-premise internet router
and servers led to additional network overhead
for SQL*Net roundtrips to the client. Packets
being sent from the cloud in 1500 byte sizes
needed to be resized before going through the
customer network.
In addition, certain on-premise servers (e.g. on
HP) could not reduce the size of the incoming
MTU packets so the MTU in the cloud needed to
be reduced to the lowest MTU size setting in use
in the network.

What the Infrastructure and Network guys said.
Standard Corente VPN Seclists
Care should be taken when using these.
Some 'internal' lists have inbound policy
'permit' as standard leaving access from
public internet
Make sure you have Network Expertise in
team:
This type of project has a higher dependency on
external IT resources to quickly resolve
connectivity issues. These resources need to be
secured upfront as part of planning process

Lessons Learned
• Technical problems are easy and solvable – cultural and other barriers are the tricky ones.
• Don’t just do it as a cloud project – mind the core purpose of your project i.e. an EBS Upgrade in a
dynamic and functioning business
• Stakeholder management – is much more complex than on a standard project.
• Use tools like “ force field analysis” to continually assess where your project stands
• Operational Acceptance and service operations are key
• SIT is the key phase. Load test early and often.
• You will most likely have under estimated the effort required to close off the non IS elements
• Really commit to it because you will be given opportunities to walk away from the Cloud element

Why Version 1 ?
Industry & Customer
Knowledge
Simplicity Cloud Knowledge
Competitive
Insight
Oracle Sales
Understanding
Reputable Oracle
ERP Practice
Move Install Base
to Cloud
Best SAM
Business

UK HQ
40 Gracechurch
Street, London,EC3V 0BT
t: +353 1 865 7800
w: version1.com
e: info@version1.com
Ireland HQ
Millennium House, Millennium
Walkway, Dublin 1, D01 F5P8
t: +353 1 865 7800
w: version1.com
e: info@version1.com
Thank you for listening
Any Questions?

Cedar Day 2018 - Cloud IaaS - Ken MacMahon

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