it infrastructure for the agile enterprise:grid, soa, and virtualization

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IT Infrastructure for the Agile Enterprise: Grid, SOA, and Virtualization Michael Hugos CIO at Large Center for Systems Innovation www.MichaelHugos.com © 2007 Michael Hugos www.MichaelHugos.c om

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Page 1: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

IT Infrastructure for the

Agile Enterprise:Grid, SOA, and Virtualization

Michael Hugos

CIO at Large

Center for Systems Innovation

www.MichaelHugos.com

© 2007 Michael Hugos

www.MichaelHugos.com

Page 2: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

© 2007 Michael Hugos

www.MichaelHugos.com

Overview of Briefing

• PART 1 – Business Realities

• PART 2 – IT Infrastructure for Agility

• PART 3 – Business Case Study

Page 3: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

PART 1

Business Realities

© 2007 Michael Hugos

www.MichaelHugos.com

Page 4: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Global Economy – New Reality

• Formerly separate national and regional markets now electronically connected into single global market

• Global market does what free markets do so well; it’s called “efficient price discovery”

• In many businesses gross margins average 10-15%; under constant pressure; heading lower

• Global economy is like global stock market!• Profit in hyper competitive real-time world comes from

many small adjustments & some big wins as companies respond to constantly changing environments

© 2007 Michael Hugos

www.MichaelHugos.com

Page 5: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Competing in Global Economy

• In high change world responsiveness trumps efficiency!• Agile Enterprise is to global economy as assembly line

was to industrial economy – source of wealth• Respond to changing customer needs by wrapping

products in blanket of tailored, value-added services • Earn additional 2 – 4% (and sometimes more)• All value-added services are information based• Use responsiveness to differentiate yourself or participate

in “grim race to the bottom”

Efficiency Responsiveness

© 2007 Michael Hugos

www.MichaelHugos.com

Page 6: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Responsiveness Requires Agility

Agility is a Process

Create New Business Processes

Market Data & Customer Demands

Deliver Business Success

Analyze Non-Standard

Input !!!

Standardize Business Processes

Detect New Threats & Opportunities

Eliminate Root Causes

LOOP 2 LOOP 3

LOOP 1

LOOP 1 – monitoring and deciding

LOOP 2 – improving existing processes

LOOP 3 – creating new processes

• Three feedback loops illustrate how responsive, agile organization works

• New business processes that deliver success become part of standard business processes

• Agility is continuous, incremental change!

© 2007 Michael Hugos

www.MichaelHugos.com

Page 7: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

PART 2

IT Infrastructure for Agility

© 2007 Michael Hugos

www.MichaelHugos.com

Page 8: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Moving Toward Agility• IT infrastructure for agile operations is built on top of

existing transaction processing systems (ERP, CRM, SCM, etc.) – leverage legacy systems

• Agility calls for adding new systems such as:– Data Warehouses and Business Intelligence– Business Process Management or Business Activity

Monitoring– Simulation and Predictive Analytics

• Combine new systems with existing systems using SOA, host them using Server Virtualization and Grid Computing

© 2007 Michael Hugos

www.MichaelHugos.com

Page 9: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Definition: SOA

Services Oriented Architecture – “systems architecture that uses loosely coupled services to support requirements of business processes and users” Wikipedia April 2007

Need to Manage:

- Service Directory- Connections- Performance

Services on network available in SOA environment combined as needed in support of evolving business processes

B

C

E

GD

FH

A

© 2007 Michael Hugos

www.MichaelHugos.com

Page 10: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Definition: Virtualization

Server Virtualization – “partitioning one [or many] physical server computer[s] into multiple servers that each has the appearance and capabilities of running on its own dedicated machine.” Wikipedia April 2007

• Optimize use of server resources

• Centralize server administration

• Common practice on mainframes now available for other architectures

© 2007 Michael Hugos

www.MichaelHugos.com

Page 11: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Definition: Grid ComputingGrid Computing – “distributes processing across a

parallel infrastructure. Throughput is increased by networking many heterogeneous resources across administrative boundaries” Wikipedia April 2007

• Optimize use of all computing resources

• Centralize resource administration

• Support different virtual computer architecturesComputing

Utility

Grid Computing

© 2007 Michael Hugos

www.MichaelHugos.com

Page 12: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Disruption of IT Paradigm - Again

• Remember how technologies like Client/Server, Internet and World Wide Web once created havoc with conventional IT paradigm?

• It’s happening again… ready or not!• SOA, Virtualization, Grid Computing offer new

opportunities for IT infrastructure that is fast, flexible, and cost effective

• Those that master the use of these technologies will once again set the pace for everyone else

© 2007 Michael Hugos

www.MichaelHugos.com

Page 13: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

PART 3

Business Case Study

© 2007 Michael Hugos

www.MichaelHugos.com

Page 14: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Is IT a Profession or a Utility?

• Does IT matter; is it a competitive advantage?• Efficient 24/7 operation of existing systems is no

longer a competitive advantage – it’s a given!• Companies need to outsource operation of existing

systems and provisioning of new infrastructure• Large vendors of hardware and software become

computing utility vendors offering greater efficiency• Company IT groups focus on development of new

systems and continuous adjustment of infrastructure• Agile IT enables companies to earn additional 2-4%

© 2007 Michael Hugos

www.MichaelHugos.com

Page 15: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Company and Alliance Partners

Company focuses on core functions that produce unique value-add for its customers

Company out sources support functions to alliance partners

Alliance Partner

‘B’

Alliance Partner

‘A’

Alliance Partner

‘C’

Support Support

Core

Customer

Customer

CustomerAlliance partners provide tailored offering of products & services

CoreCore

Support

Company

© 2007 Michael Hugos

www.MichaelHugos.com

Page 16: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Case StudyOffice Productivity

App Servers

ERP System

Data Warehouse

Production Scheduling

Inventory Control

Doing Business in Real Time

• Old-line candy company selling through traditional retail channels

• Relentless pressure on profit margins

• People see opportunity to sell “designer chocolate” and related items in cozy storefront setting

• Company decides to quickly market test idea by opening a few stores

• Need systems support in 90 days!

• Consider TCO of solution; lease/buy; sunk costs; scalability; flexibility

• You are the CIO...

© 2007 Michael Hugos

www.MichaelHugos.com

Page 17: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Case StudyOffice Productivity

App Servers

ERP System

Data Warehouse

Production Scheduling

Inventory Control

Store POS System

Store Support Ver 1.0

Doing Business in Real Time

• Concept is a success

• Accelerate rollout of new stores… what next?

Supply Chain DW

SOA

SOA

Server Virtualization

SOA

© 2007 Michael Hugos

www.MichaelHugos.com

Page 18: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Case StudyOffice Productivity

App Servers

Data Warehouse

Supply Chain DW

Inventory System

Production Scheduling

Analytics & Simulation ERP

Store POS System

CRM

Store Support Ver 2.x

SOA

SOA

Grid Computing

Server Virtualization

Retire the Mainframe? BPM

© 2007 Michael Hugos

www.MichaelHugos.com

Page 19: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Lessons Learned

1. Web portals provide unified user interface by replacing different system screens with common GUI front-end

2. SOA - build new systems using legacy system components and new server/grid components

3. Split systems processing between server/grid platforms and legacy hardware - host new system features and databases on server/grid platforms

4. Centralize and consolidate servers through virtualization

5. Retire legacy systems as it becomes cost effective to replace them with server/grid based systems

6. Continuous incremental change (no big bang projects!)

© 2007 Michael Hugos

www.MichaelHugos.com

Page 20: IT Infrastructure for the Agile Enterprise:Grid, SOA, and Virtualization

Learn More…

Presentation excerpted from:- Building the Real-Time Enterprise, author, 2005- CIO Best Practices, co-author, 2007

Read my IT Insights column at Computerworld.com

Read my blog “Doing Business in Real Time” at CIO.com

© 2007 Michael Hugos

www.MichaelHugos.com