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Dell IT:We Are the
Scalable Enterprise
Susan SheskeyVice President & CIO
THIS PRESENTATION SUMMARY IS FOR INFORMATIONAL PURPOSES ONLY AND MAY CONTAIN TYPOGRAPHICAL ERRORS AND TECHNICAL INACCURACIES. STATEMENTS ARE THE OPINIONS OF THE PRESENTER(S) AND DO NOT NECESSARILY REFLECT THE VIEWS OF DELL. THE CONTENT IS PROVIDED AS IS, WITHOUT EXPRESS OR IMPLIED WARRANTIES OF ANY KIND.
© 2006 Dell Inc. All rights reserved.
Trademarks used in this text: Dell and the DELL logo are trademarks of Dell Inc. Other trademarks and trade names may be used in this document to refer to either the entities claiming the marks and names or their products. Dell Inc. disclaims any proprietary interest in trademarks and trade names other than its own.
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. . . We Mean It.The Scalable Enterprisestrategy enables every aspect of our business
Dell’s $56 billion business runs 95% “Dell on Dell” by any metric:
• Processing power• Storage• People• Budget
And we’d do it the same way even if we weren’t Dell.
When We Say Dell is “Built On Dell” . . .
Just Like Other CompaniesYet Entirely Unique!
Dell is in the data centers of 8 out of the top 10Fortune companies in the U.S.
Dell is in the data centers of 8 out of the top 10Fortune companies in the U.S.
Growth: First 20 Years
Large-Scale Services Provider
State of New York
Dell.com exceeds theInternet sales revenue of . . .
. . . combined!Direct choice of the consumer, versus:
Manufacturing / Supply Chain
Ship 100,000+systemsper day
Ship 100,000+systemsper day
#1
#2
#3
#4
#5
Market LeadershipHarris Poll: Best Brands 2006
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Where We Are Today
Contact Center (41)Manufacturing (9) Fulfillment (6)
Revenue of $56.6B last four quarters
#25 on the Fortune 500
Fortune “Most Admired” Top 10 –1999, 2000, 2001, 2003, 2004, 2006 and #1 in 2005
CIO 100 – 2000, 2002, 2003, 2004, 2006
InformationWeek 500 Top 100
Where We Are Today
Revenue of $56.6B last four quarters
#25 on the Fortune 500
Fortune “Most Admired” Top 10 –1999, 2000, 2001, 2003, 2004, 2006 and #1 in 2005
CIO 100 – 2000, 2002, 2003, 2004, 2005
InformationWeek 500 Top 100
Dell IT is in more than 34 countries around the globe.
Americas2,080
Brazil403
EMEA766
India1,078
China151
APJ622
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Managing a Global Environment
Sydney
Melbourne
Singapore
Penang
Bangkok
TaipeiXiamen
Hong Kong
Guangzhou
Chengdu
Kawasaki
Beijing
Seoul
Bogota
SantiagoBuenos Aires
Puerto Alegre
Mexico City
Reno
Austin
TorontoTwin Falls
Nashville
LimerickCherrywood
Bracknell
RomaBilbao
Copenhagen
Stockholm
HelsinkiOslo
Asse Zelik
Vienna
Geneva
Halle
Paris
Montpellier
Amsterdam
Prague
Riyadh
Warsaw
Johannesburg
Tel Aviv
Dubai
Panama City
Brazil SDC
Hyderabad
Shenzhen
BT's MPLS Network
Lisbon
Moscow
Bratislava
Athens
Casablanca
BarcelonaMadrid
MilanRoseburg
Waco
Washington, DC Gov. Rel.
Dalian
Wambishi
MCI's MPLS Network
2 DS3's
OKCDS3 SBC
DS3 TWTC
20 Mb ATM AT&T20 Mb ATM MCI
1 x DS3 (MCI)2 x T1 (MCI, Sprint)
DS3 SprintDS3 MCI
EdmontonDS3 SprintDS3 AT&T
Shanghai
512kb PVC
DS3
4 mb/s2 mb/s4 mb/s
2 mb/s
Hangzhou16 mb/s
4 mb/s
2 mb/s
Nanjing
8 mb/s
3xT1's
2 mb/s
2 mb/s
2 mb/s
2 mb/s
512 kb/s
6 Mb/s
2 mb/s
1.5 mb/s
1.5 mb/s
2 mb/s
1 mb/s
Bangalore Bangalore DHS Sales
Kuala Lumpur
DS3 CT
DS3 JT
DS3 TM
256 kb/s
128kb PVC
DS3 AT&TDS3 MCI
1mb VPN
1Mb VPN
2xOC31 DS3
WestchesterOC3 AT&TOC3 TWTC
2 mb/sVoFR
4 Mb VPNFor EMC
San Salvador
DS3 MCIDS3 GC
Mohali
Singapore SDC
Jakarta
Ottawa
1Mb VPN
8Mb VPN
1Mb
1 mb/s
DS3 BT
Glasgow
Frankfurt
Winston-Salem
OC3 SBCOC3 TWTC
Hardware ~ 100,000+ client systems~ 15,000+ Dell servers
Networks107 Dell global WAN sites39 locations307 WAN links420 metro Dell-managed fiber paths855 wireless access points177 dedicated extranet partner links
Total SAN Storage5.8+ PetabytesSecond-largest storage areanetwork in US, Top 5 globally.*
* Source: Brocade Communications Systems Inc.
IT By the Numbers: We Are the Scalable Enterprise
Data and Networks:– What is the total size of the Dell Data Warehouse?
320 Terabytes on 84 nodes
– How many emails do our servers handle each day?1.8 million outbound40 million inbound (94% of these are spam!)
– How many voice calls do we handle each month?16.5 million inbound toll-free calls3 million outbound calls
– How many potential network intrusion attempts each month?400 million (Our firewalls reject 4,000 suspicious data packets every second!)
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IT By the Numbers: We Are the Scalable Enterprise
Dell.com:– How many Dell.com page requests last quarter?
2.86 billion
– How many systems are configured each week on Dell.com?~1 million — and 1 million per day in peak holiday season
– How many visits to Dell.com last quarter?410 million
– How many unique visitors to Dell.com last quarter?127 million
– What is the highest number of pages ever requested in one minute?64,584 (on 8/25/04 during a promo – and we handle all that traffic on only 28 Dell PE6650 servers!)
IT By the Numbers: We Are the Scalable Enterprise
Business Complexity:– How many Contact Centers, Manufacturing, and Distribution sites
do we support?41 contact centers, 15 manufacturing/distribution
– How many changes in the environment do we handle each year?About 15,000
– In how many countries, languages and currencies does Dell do business online?81 countries, 24 languages, and 26 currencies
– And dealing with Compliance, Security, Privacy, Governance, Portfolio . . .
Tremendous complexity. So how do we do it? Scale Out is the key.
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Old Method: Scale UpGrow into your enterprise infrastructure by deploying large, expensive, proprietary systems up front—but as you add capacity later, you are buying three-or four-year-old technology! W
orkl
oad
Time
Dell Method: Scale OutGrow your enterprise infrastructure over time by adding industry-standard building blocks as needed. Always the latest and fastest technology!
Wor
kloa
d
Time
High Utilization per ServerThroughout Lifecycle
Utilization Low,
Increasing Over Time
Scale Up or Scale Out?
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FY02-FY03 Growth: 44% FY03-FY04 Growth: 69% FY04-FY05 Growth: 56% FY05-FY06 Growth: 43%
Scale Out: An ExampleHistorical Dell.com Traffic Trends (Global)
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Transforming the EnterpriseA Technology Vision Is the Key!
Constraining your IT spend will only keep you locked in to proprietary technologies
Instead, create a paradigm based on Total Cost of Ownership that leverages standards for cost efficiency…
Then use the savings to reinvest!
Technology is the high tide that will raise the entire ocean of businesses and economies to levels we have yet to imagine!
“Building Your Way Out”Developing a Plan
Technology
Cap
abili
ty
Legacy
Standards
Rotate one project at a time into the standards-based quadrant . . .
StandardsStandardsStandards
LegacyLegacyLegacyLegacy
Standards
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“Building Your Way Out”How We’re Doing It at Dell
Phase 1Phase 1 Americas Sales and MarketingSystems Environment
“Building Your Way Out”How We’re Doing It at Dell
Phase 2Phase 2 Americas Sales and MarketingSystems Environment
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“Building Your Way Out”How We’re Doing It at Dell
Phase 3Phase 3 Americas Sales and MarketingSystems Environment
“Building Your Way Out”How We’re Doing It at Dell
Phase 4Phase 4 Americas Sales and MarketingSystems Environment
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Americas Sales and MarketingSystems Environment
“Building Your Way Out”How We’re Doing It at Dell
And we are doing all this while continuing to:
Drive globalizationAdd features and functionsDeliver the greatest benefit at the lowest cost for Dell
Phase 4Phase 4
The Early Adopters . . .
Dell IT was among the earliestadopters of:
Pervasive 802.11 wireless (2000)Microsoft .NET architecture and Web services (2001)Production use of Linux (2001)Teradata on Dell/Intel (2002)Oracle 10g RAC (2004)Oracle 11i on Dell/Intel (2005)Windows Vista (2006)
So what’s next on the horizon?
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What’s on the Horizon . . .
Grid computing
Virtualization
Data Centerof the Future
Grid Case Study: EMEA Order Management SystemBEFORE: Proprietary Architecture
Volume:Daily orders: 25,000Up to 150k order lines/hour
Architecture:Sun™ E1000064 400MHz CPUsSolaris 8 OSOracle 8i & Oracle 11.0.3EMC Symmetrix Storage
Would not handle planned growthHigh licensing & maintenance costsLimited high-availability and DR Ongoing performance issuesExpensive to scale up
Front-End Order Management: Back-Office Financials:Volume:
5,700 database sessionsDaily Orders: 22,000
Architecture:Sun™ E1000052 400MHz CPUs x 2Solaris 8 OSOracle 9i RAC (2 node)EMC Symmetrix Storage
The Issues:
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Grid Case Study: EMEA Order Management SystemAFTER: Oracle-on-Dell Grid Solution
Results:Daily orders: 50,000(100% increase)Up to 400K order lines/hour (150% increase)
Architecture:Dell PE66506 nodes (24 2.8 GHz CPU)plus 6-node failover w/ SRDFRed Hat Linux 3.0Oracle 10g RACOracle 11i1 TB DMX 2000 storage
Front-End Order Management: Back-Office Financials:Results:
12,000 database sessions (120% increase)Daily orders: 50,000(120% faster)Search time 80% faster
ArchitectureDell PE66506 nodes (24 2.8 GHz CPU)plus 6-node failover w/ SRDFRed Hat Linux 3.0Oracle 10g RAC1 TB DMX 2000 storage
Five-fold improvement in the overall performance of the system
1 hour order turnaround cycle
All invoicing completes in less than 1 hour
Real-time fault tolerance helps ensure business continuity
Automated management greatly reduces human error
Technology can scale out to meet future requirements
Moved from 168 CPUs in 3 Sun servers to 24 Dell PowerEdge 4Moved from 168 CPUs in 3 Sun servers to 24 Dell PowerEdge 4--waysways
12 month estimated ROI = $2.83 million in savings12 month estimated ROI = $2.83 million in savings
Source: Source: Oracle sponsored ROI Study: Oracle sponsored ROI Study: Dell Moves European Sales Operations to Oracle Enterprise Grid oDell Moves European Sales Operations to Oracle Enterprise Grid on Dell n Dell SystemsSystems. Published by Mainstay Partners, Dec 2004. Published by Mainstay Partners, Dec 2004..
Business Results of Migration to Oracle-on-Dell
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What’s on the Horizon . . .
Grid computing
Virtualization
Data Centerof the Future
Physical hardware configuration:PE6650 class server4 processors16GB RAM600GB internal disk space SAN space per VM farm: 10TB
VMware – ESX 2.5.x is deployed in Americas and EMEA to create a virtual infrastructure that is standards based, easily rebuilt and provides effective use of physical resources Virtual machines are deployed for Windows OS development only: Web servers, Web and app development (WebLogic, Java, .Net)VMware servers follow the Dell standard server provisioning process into the infrastructure in order to produce secure/standard builds; are the first servers to be patched using SMS2003
Virtualization at Dell
Virtual hardware configuration:2 processors512MB memory16GB hard drive (virtualized on SAN)
1 physical host = 16 virtual hosts
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Automatic load balancing between physical hosts– Balance distribution of VM’s based on
the resources they use most intensively (CPU, disk, memory, network)
High Availability – “Self Healing”– Will automatically re-spawn VM’s that
were present on a failed host onto a different functioning host
Systems lifecycle management– Integrate Virtual Center server
information with the asset management system
Develop standard Linux build– Virtual machine sized to match the
typical Linux development environment
VMware Roadmap: What’s Next?9 – 12 Month View
Fewer resources to support the infrastructure– 16 times less rack space is needed in labs in
datacenters– Reduced power/cooling requirements– Less network equipment – Fewer personnel to support physical servers
Improved service level agreement (SLA)– Shorter server provisioning time (20 minutes!)– Quick Wipe and Load capability (environment reset)
is ideal for development purposes– Simpler decommission process allows for faster re-
provisioning of resources to other projects
Bottom line– Server consolidation with significant savings– Accurate hardware deployment – Faster server deployment
Benefits of Virtualization
3 VMware farms to date20 physical servers per farm10TB of SAN per farm320 virtual servers per farm750 total virtual servers to date
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What’s on the Horizon . . .
Grid computing
Virtualization
Data Centerof the FutureData Centerof the Future
What Does the Data Center of the Future Look Like?
Two main characteristics:
Simplified Operations– Automated deployment– Dynamic resource allocation– Self-monitoring– Self-managing– Self-healing
Improved Utilization– Virtualization– Consolidation– Optimization
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The Scalable Enterprise of the Future
StandardizationConsolidation
Automation
Reduced CostReduced RiskManaged Growth
Advantages Drives
The Power of Standards
FlexibilityAdaptabilityVelocity
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FY07 annualized benefits are ~2X IT cost
Development 32% 47% 59% 64% 76%Headcount:
The Benefit to the Business
AnnualizedBenefits
IT Spend as% of Revenue
1.91%1.83%
1.61%
1.47%1.42%
$1.4B
$0.35B
$0.47B
$0.8B
$1.1B
$1.3B
0
200
400
600
800
1,000
1,200
1,400
1,600
FY01 FY02 FY03 FY04 FY05 FY06
I/T S
pend
/ A
nnua
lized
Ben
efits
1.39%
Where Are We Headed?
Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
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Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
Where Are We Headed?
Chief Information Officer
Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
Dell IT are the early adopters of technologyWe are ready to help you by sharing our successes and lessons learnedStandards-based technology equals lowest TCO, best performance, reliability, adaptabilityOnce you have made the shift to standards, you can reinvest those savings into true innovationNo longer constrained, you can . . . – IMAGINE what the future looks like– INNOVATE how to get there– INVEST the resources to make it happen!
Where Are We Headed?
Chief Innovation Officer
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Questions & Answers