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Texas Technology Forum Data Center Consolidation: Fact vs Fiction July 28, 2008 Texas Technology Forum Data Center Consolidation: Fact vs Fiction July 28, 2008

Agenda • Introductions • Evolution of Data Center • Examples of Data Center Migrations, Agenda • Introductions • Evolution of Data Center • Examples of Data Center Migrations, Processes & Tools being used • Abstracted Infrastructure, Virtualization for Consolidation • Tomorrow Vision is now in DC Consolidation • The Reason for Data Center Consolidation is not just cost savings • Questions ? ? ? Page 2

Introduction • 20+ years experience with Data Center Consolidations within Outsourcing industry for both Introduction • 20+ years experience with Data Center Consolidations within Outsourcing industry for both Public, Private and Government sectors. • Spent 18 years at Affiliated Computer Services (ACS) leading the technology delivery organization and CTO for last two years before moving to Perot Systems for 3 years. • My focus at Unisys has been working with Systems & Technology on cross-business unit coordination with Real Time Infrastructure (RTI). Provide leadership for GOIS with Enterprise Computing (EC) global view across theaters. Implementing key performance indicator measurements, working with theaters on global capacity model development for GOIS, working with GOIS portfolio team on changes with RIM / RTI capabilities, and assisting new client transformations such as Ciba. Also represent GOIS on the Unisys Technology Executive council. • Contact Info: Michael. [email protected] com Office: 469 -892 -3801 Cell: 214 -763 -0076 Page 3

Introduction • In today's economic conditions, it is more important than ever to drive Introduction • In today's economic conditions, it is more important than ever to drive efficiencies. As a result, government organizations are continuing to focus on simplifying, unifying, consolidating and collaborating. This session features some successful strategies, approaches and lessons learned in government and will help you build the case for your own consolidation Page 4

Data Center Management Pain Points • Virtualization complexity • Configuration management • Server sprawl Data Center Management Pain Points • Virtualization complexity • Configuration management • Server sprawl • Service Level Agreements • Idle infrastructure • Operational expenses • Provisioning • Time to market What’s bothering you right now?

Evolution of the Data Center • Infrastructure aligned to business • Charge. Back • Evolution of the Data Center • Infrastructure aligned to business • Charge. Back • Infrastructure aligned to application • Intelligent Automation • Utility Model • Pool of Resources • Policy Based Management • Self Purposing • Active SAN/NAS Virtualization • Common OS • Server Virtualization Tomorrow • Fabric Management • Automated Purposing Today • Infrastructure Consolidation • SAN Virtualization • Infrastructure aligned to BU • Manual Patches • Centralized Resources • Improve Utilization • Open Source • Centralize DC • Low Utilization • Storage Silos • Element Management • Distributed DC • Heterogeneous OS Yesterday

Evolution of the Data Center • Infrastructure aligned to business • Optimized TCO • Evolution of the Data Center • Infrastructure aligned to business • Optimized TCO • Infrastructure aligned to application • Intelligent Automation • Policy Based Intelligent Automation Management • Policy Based • Utility Model • Active SAN/NAS Virtualization • Self Purposing Tomorrow • Common OS • Automated Purposing Virtualization • Fabric Management • Server Virtualization Today • Infrastructure Consolidation • SAN Virtualization • Infrastructure aligned to BU • Manual Patches • Centralized Resources • Improve Utilization • Open Source • Centralize DC • Low Utilization • Storage Silos • Element Management • Distributed DC • Heterogeneous OS Yesterday

Data Center Transformation Built on the Gartner Real-Time Infrastructure model in which IT assets Data Center Transformation Built on the Gartner Real-Time Infrastructure model in which IT assets are virtualized, self-managed, and business-driven, producing greater enterprise agility and lower IT costs

Consolidation/Virtualization Roadmap Discovery • Detailed Inventory of Existing Estate • Hardware • Software • Consolidation/Virtualization Roadmap Discovery • Detailed Inventory of Existing Estate • Hardware • Software • Applications Analysis • Group Applications & Systems Discovered • Determine Most Suitable Form of Optimization • Understand current processes and people Design • Produce Design • Build project plan • Build resource schedule • Assist in developing business case • Business Requirements and Restrictions Pilot Implement • Optional phase • Implement target • Implement environment representative sample • Migrate and consolidate • Prove design applications and approach • Fine ‘tuning’ for • Implement management & Implementation operational processes Repeatable Process

 Toolsets for Successful Migrations • Application Asset Manager (ITM Discovery) Unisys Patented – Toolsets for Successful Migrations • Application Asset Manager (ITM Discovery) Unisys Patented – Discovery of an existing server estate • Windows, Unix, Linux, SQL Server, Oracle – Deliver optimal strategy based on analysis of your environment • Remote Telemetry/CS Sizer – Modelling of optimized target platform environment based on existing performance data • ITM – Application interaction modelling • Traces network communications between applications to determine a business interactivity model • Assists in determining capacity models and move sets • Plate Spin (Real-Time Consolidation Accelerator) – Move physical servers to virtual servers – Move virtual partitions to other virtual partitions

Unisys Data Center Consolidation Globally Environment (1990’s) • Distributed IT – Data Centers – Unisys Data Center Consolidation Globally Environment (1990’s) • Distributed IT – Data Centers – Networks – APP’s design and support • Duplication of APP’s • 53 data centers worldwide ($130 M expense) • Strong G/M organization structure at country level

Unisys Data Center Consolidation Globally Enablers • Integrated networks • Skilled IT workforce • Unisys Data Center Consolidation Globally Enablers • Integrated networks • Skilled IT workforce • Integrated e-mail • Management commitment • Technology trends – Mainframes performance/footprint – LANs – Switched networks – Open protocols – Desktop power

Unisys Data Center Consolidation Globally Move Process • Up to 12 teams active • Unisys Data Center Consolidation Globally Move Process • Up to 12 teams active • Team size up to 12 people Push/Pull on Phase 1 • Phase 1 duration 3 months then reduced • Initial seed platforms in place • Only current platforms moved (avoid museum) • Phase 2 teams up to 50 people • Standardization/consolidation undertaken if speed not impacted

Unisys Data Center Consolidation Globally Resistance • Turf • Loss of control • Accurate Unisys Data Center Consolidation Globally Resistance • Turf • Loss of control • Accurate cost data • Layoffs, etc. • Investment • IT “It won’t work”

Unisys Data Center Consolidation Globally Results • Migration covered four years (on plan) • Unisys Data Center Consolidation Globally Results • Migration covered four years (on plan) • Cost benefit improved • Established base for: • APP centralization • APP redesign • Continuous improvement • Large reduction in hardware acquisition over old decentralized model

Unisys Data Center Consolidation Globally Keys to Success • Senior line management had project Unisys Data Center Consolidation Globally Keys to Success • Senior line management had project in their objectives • All business groups involved in business plan • Open fact based communications • Maximum involvement of all IT groups • Rotate IT people – “burn out” is an issue • User testing – good, they convince themselves • Overkill platforms and network during migration if necessary – A single problem will be magnified and cause undue delay and it’s easy to cut back later • Started fast and kept up the pace.

State of Pennsylvania Data Center Consolidation Scenario: Consolidate 20 Data Centers into 2 Solution: State of Pennsylvania Data Center Consolidation Scenario: Consolidate 20 Data Centers into 2 Solution: – IBM is subcontractor to Unisys – Scope of services very broad from facilities to Disaster Recovery – Could not sever any State employees • All employees made redundant were placed in other positions in the State • Re-trained or re-purposed • Used to improve State services – Implemented “Best Practices” Problem and Change Management – Implemented Service Level Agreements Benefit: – – 20 data centers into 2 47 disparate Email systems to 1 (75, 000 users); Exchange servers reduced by 50% 14 month transition $27 M annual savings

State of Texas Data Center Consolidation Scenario: – Critical clients requirements • • • State of Texas Data Center Consolidation Scenario: – Critical clients requirements • • • State regulatory mandate for project Critical employees must be maintained for 2 nd year All work must be done in the State All affected employees must be offered positions 1 st year Followed Gartner recommendation – Consolidation / Migration Scope • 31 data centers to 2 • 7, 000 Windows servers, 1, 400 Unix servers, 16 Mainframes Solution: – Scope of services very broad from facilities to Disaster Recovery Benefit: – Project Underway - Unisys is subcontractor to IBM

Benefits from the City of Mpls Virtualization • Reduce server count 25 : 1 Benefits from the City of Mpls Virtualization • Reduce server count 25 : 1 – Power saving 55 KW – Saving floor space • Simplification of server support • Unisys can now install new servers in days vers 2 to 3 weeks – i. e. in the recent 35 W bridge disaster in Minneapolis, Unisys was asked to install a new server to support the disaster on Friday afternoon and the new server was up and running supporting the disaster on Monday morning, in the past this would have taken 2 to 3 weeks to be installed. • Server maintenance savings $154, 000. 00 per year • Unisys can now perform maintenance on the host machine with out any client down time

Future State for City of Mpls • Of a 128 servers 76 are being Future State for City of Mpls • Of a 128 servers 76 are being virtualized to 3 ES 7000’s 8 CPU systems, running VMware ESX 3. 0 • Represents a 25: 1 reduction of physical assets • Systems will be migrated using Real-Time Consolidation Accelerator for Physical to Virtual migrations • Created a Blueprint for City of Minneapolis Server Infrastructure

 • Ciba Specialty Chemicals Global Data Center Transformation Data center locations being moved • Ciba Specialty Chemicals Global Data Center Transformation Data center locations being moved – – Basel to Zollikofen, Switzerland Zurich DR to Berne, Switzerland High Point to Salt Lake City, USA Singapore to Shanghai, China • Server Transformation for Data centers – 200 Physical to Virtual – 40 Virtual to Virtual – 100 Physical to Physical • Further consolidation for remote sites once Data centers have been relocated on to new infrastructure. Total number of servers today 891 Decommissioned now and future: 114 New since contract start 97 Removed File Consol 20 Removed SQL consol 37 Total servers removed 268 Leaving total server count by O/S 623 Metric Number Working Total Servers 623 O/S Reduction 95 Virtualizati on (All Sites) 288 Virtualizati on (Basel) 103 SQL 21 Leaves 136 servers in 623 not consolidated.

Real-Time Consolidation Accelerator For single point of control operating system portability Enterprise Servers Power. Real-Time Consolidation Accelerator For single point of control operating system portability Enterprise Servers Power. Convert ESX Host VM VM VM VM … … VM Windows and Linux Servers can be analyzed … … Consolidation Accelerator VM … … Power. Recon VM VM Power. Convert Storage Area Network (SAN) Physical Servers ESX Host VM Image Virtual Machines – Windows or Linux Software Library VM Image file that contains the OS and all related configuration for the VM VM Snapshots Point in time snapshot of the VM Contains ISO Images of CD for quick and easy installations VM Snapshots Consolidation Accelerator Power. Recon Power. Convert Software Library … VM VM Image VMware ESX Host will host all the Virtual Machines VM Snapshots … VM VM Image VM Snapshots Analyzes physical systems for workload such as processors, memory, disks and network. Converts Physical to Virtual, Virtual to Virtual and Virtual to Physical

Real-Time Consolidation Accelerator For automated movement of operating system, applications, and data between infrastructure Real-Time Consolidation Accelerator For automated movement of operating system, applications, and data between infrastructure types • Key Features – – – Multiple source infrastructure platforms supported Dynamic OS configuration Workload right-sizing and optimization of resources Support for “Live Images” and backup repositories Remote job execution/hands-off • Enables – – – Infrastructure Consolidation Recovery Test lab automation Maintenance support Hardware migrations Geographical migrations

On the Road to an Abstracted Infrastructure, Automation is Key Virtualized/ Utility Computing Automated On the Road to an Abstracted Infrastructure, Automation is Key Virtualized/ Utility Computing Automated Computing Applications Multi Instance Stacked Scaled Isolated Appliance Shared Storage Virtual Storage Pools Degree of Automation Service Group Service Network VLAN Service Network LAN + SAN Service Network Server Pools Service Group Service Network Standardized Servers Imaged Cloud Computing Optimized Infrastructure …

Firms plan to virtualize many more servers in the next two years “Approximately what Firms plan to virtualize many more servers in the next two years “Approximately what percentage of your x 86 servers are virtualized today? ” “Approximately what percentage of your x 86 servers do you believe will be virtualized two years from today? ” Did you know? On average, respondents have virtualized 24% of their servers today and plan to have 48% virtualized in two years. Base: server decision-makers at North American and European organizations with 100 or more employees that have implemented server virtualization or are implementing in the next 12 months Source: Forrester Enterprise And SMB Hardware Survey, North America And Europe, Q 3 2007

IT Optimization Consolidation / Virtualization Technologies – Currently driving reduced server footprints along with IT Optimization Consolidation / Virtualization Technologies – Currently driving reduced server footprints along with lower energy (heating/cooling/power) requirements for demonstrable cost savings, greater control and improved SLA • Typical server consolidation of 8: 1 in production • TCO improvements of 20%+ – VMware is market leader in virtualization and expanding use cases to include desktop virtualization to enhance standardization of the desktop and reduce support costs. – Look for more over time from Microsoft’s Hyper-V to catch up and take some market share from VMware. Management Tools – VMware includes a mature and robust management solution – Platespin “Power convert” can be used to simply migration of server images into Virtual images – Virtualiron now using XEN hypervisor

VM Sprawl: Manage It Before It Manages You The New Math: V = Free VM Sprawl: Manage It Before It Manages You The New Math: V = Free cost One client alluded to it as being "addictive. " The Real Math: V = cost f ( Planning, Administration, Control, Optimization, Reclamation) Source – Gartner Infrastructure and Operations Management Summit, June 2007; ‘Managing the Virtual Server Environment’; Author: Cameron Haight

Virtualization – a Two Edged Sword Benefits/Opportunities • Reduced Hardware Infrastructure • Lower TCO Virtualization – a Two Edged Sword Benefits/Opportunities • Reduced Hardware Infrastructure • Lower TCO • Rapid provisioning • Flexibility • Increased productivity • Workload management • Ease of providing BC/DR Costs/Issues • Increased Software Complexity • Cultural Issues • Compliance • Conflicting user demands • Logical server sprawl • Process/personnel discipline (ITIL/COBIT) • Management of the new mixed Virtual/Physical infrastructure

Tomorrow DC Level is Now Possible The New Approach To Datacenter Scaling ‘Plug-and-Play’ Datacenter Tomorrow DC Level is Now Possible The New Approach To Datacenter Scaling ‘Plug-and-Play’ Datacenter Real Time Infrastructure Adaptable Capacity

Virtualization at Data Center Layer Servers, Storage, & Network Rack once, cable once • Virtualization at Data Center Layer Servers, Storage, & Network Rack once, cable once • No 2: 00 AM visits to the data center One moment they are a Windows Email cluster, on an internal network, connected to LUN 1 … • No spending hours reloading software The next moment they are a Linux & Solaris Web Grid, on an external network, connected to LUNs 5 & 6 … • No changes to cables, network addresses, switches • No changes to storage addresses, switches, LUNs

Repurposing of Data Center Resources Automatically configure v. LAN Controller GUI GO! • From Repurposing of Data Center Resources Automatically configure v. LAN Controller GUI GO! • From dead, bare metal to live, networked servers in 5 minutes or less • Automatically configure network connectivity and storage access Controller Boot server from network storage • Repurpose servers dynamically, as needed

Recovery and Capacity Repurposing Software for changing servers and network & storage connections, fast Recovery and Capacity Repurposing Software for changing servers and network & storage connections, fast

Virtualization – Storage View Virtualization – Storage View

Virtualization – Storage View Virtualization – Storage View

Virtualization – Storage View Virtualization – Storage View

RBA Blueprint Page 36 © Enigmatec Corporation 2008 RBA Blueprint Page 36 © Enigmatec Corporation 2008

IT Operations Automation Orchestration – Automated Resource Management Real-Time Orchestration & Provisioning • Key IT Operations Automation Orchestration – Automated Resource Management Real-Time Orchestration & Provisioning • Key Features – – – – Provision physical and virtual servers Configure multiple servers Install OS’s remotely Resource optimization based on load Group management of servers High Availability failover Composite application resource management – Windows and Linux – VMware interface • Benefits – – Assure service level performance Operational cost savings Utilize resources efficiently Business driven IT

What is “Green IT”? “IT suppliers and their corporate customers changing the way computing What is “Green IT”? “IT suppliers and their corporate customers changing the way computing assets are designed, manufactured, operated, and disposed of to gain efficiency and cost savings while reducing environmentally harmful impacts” – Forrester 3/17/2018 Page 38

Getting Started on the Path to Green Power Efficiency • Increase server utilization – Getting Started on the Path to Green Power Efficiency • Increase server utilization – virtualization, consolidation • Cool data centers more efficiently • Manage desktop power consumption Promote Green Work Practices • Facilitate telecommuting options • Add green criteria to IT procurement practices • Source energy from greener producers • Purchase energy-efficient products Reduce E-Waste • Recycle servers, PCs and other hardware • Recycle printer cartridges, paper, batteries • Set printer defaults to two-sided printing • Promote selective printing of documents and green document retention practices 3/17/2018 Page 39

How Green Are We? Green Initiatives in PA and City of Phila. • State How Green Are We? Green Initiatives in PA and City of Phila. • State of PA 2008 budget allocates $650 to alternative and renewable energy – aimed at reducing dependence on foreign fuels • Certification for green trades people originated in Philadelphia and spreading across the US (Green Advantage Contractor Training and Certification) • State of PA green grant programs – $26. 4 million alternative energy incentives – $5 million under Energy Harvest program to promote awareness and build markets for cleaner or renewable energy technologies – Business Pollution Prevention Assistance – up to $100 k for projects that reduce waste, pollution or energy • PA Energy Mgmt Assistance program provides free energy audits for small businesses; private firms do the same for the rest Source: Philadelphia Business Journal 3/17/2018 Page 40

The Cost Value of “Green” IT • Energy Star-certified desktop computer systems can reduce The Cost Value of “Green” IT • Energy Star-certified desktop computer systems can reduce energy consumption by up to 70%. (INPUT 6/08) • Virtualization could save the federal government between $18 billion and $29 billion over the next 10 years. (INPUT 6/08) • Switching to a more eco-friendly PC model can reduce power consumption by 20% or more. (Gartner 3/08) • Simply putting machines into a lower power state after hours reduces energy costs from more than $75 a year to approximately $18 a year. (INPUT 6/08) • A 1, 000 -person organization could save up to 1. 6 million pages per year and $33, 500 in costs by eliminating banner page printing. (Gartner 3/08) – The savings realized could be higher, because many organizations actually print more (in some cases, 30% or more) than the 1, 000 pages per employee per year used in Gartner’s model.

Server Cost Savings • Thin clients draw between 6 and 40 watts per hour Server Cost Savings • Thin clients draw between 6 and 40 watts per hour of usage, compared with 150 to 350 watts for typical desktop PCs. After allowing for increased server power and cooling demand, thin clients conservatively offer 25% energy usage reductions and similar drops in corporate CO 2 emissions. (Forrester, 3/08) • Many midsize businesses have reported that they are reducing their server population by nearly 25% or more by using server virtualization technology. (Gartner 6/08) • Gartner estimates that virtualization can save a company 20% to 30% in operational costs. (Gartner analyst inquiry call, 7/08) • Operational cost reductions of 10 percent to 20 percent are possible through server consolidation. In the right circumstances, a cost reduction of from 30 percent to 40 percent can be achieved over three years. (Gartner, 2/01)

Questions Contact Info: Michael. Goodspeed@unisys. com Office: 469 -892 -3801 Cell: 214 -763 -0076 Questions Contact Info: Michael. [email protected] com Office: 469 -892 -3801 Cell: 214 -763 -0076 Page 43