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Oracle Global IT Data Center Operations and Management Best Practices Bill Weils, Global IT Senior DirectorNovember 2007

• Our Goal• Accomplishments• Corporate Business Challenge• Our Strategy - Oracle Grid Architecture• Standardization and Consolidation• Austin Data Center Overview• Physical Security• Automation (Operational Capability)• Industry Best Practice Frameworks• Questions

How Did We Get to Where We Are Today

Our Goal

“Oracle Global IT strives

to operate a world-class

data center to support

operations for 68,000+

Oracle employees and

500+ On Demand

customers.”

Manage with Oracle Enterprise Manager 10g

Process and Technology stack tested first on internal Oracle business (“Oracle at Oracle!”)

Execute Tier 4 installation globally Automate as many processes as possible

for repeatability, scalability, and manageability

EPA “Green Company Award” 2005 Become Oracle Grid & Network Attached

Storage expert•8000+ Processors in Grid architecture with RAC*

•Network Appliance - 2.8 Petabytes of storage*

AccomplishmentsOperational Excellence & Achievements

*data as of 28th April 2005

Data Center

Award of the Year

Receive “Data Center of the Year Award”

The Corporate Business Challenge

• Reduce organization and infrastructure complexity• Reduce and effectively manage the IT budget• Increase systems availability and reliability• Improve overall asset utilization• Improve overall ease of services deployment• Simplify and standardize processes and procedures• Effectively scale to meet growing business needs

The Oracle IT Dilemma

Organization

• Inefficient• Wasteful

• Regionalized Staff• Specialized Service Areas• “Decision by Debate” Model

• Specialized (Custom) Apps• Dedicated Server Farms• Server Farms/LOB• Server Farms/Geography

• Standardization: Low• Common Practices: Low• Knowledge Sharing: Low

Practices

FinancesSystems & Applications

1. Standardize• Low-cost components• Repeatable and reusable process

and procedures• Improved Systems/Applications

deployment and implementation2. Consolidate

• Manage from one central location• Leverage sharing of resources• Improve uptime (load balance &

failover)3. Automate

• Eliminate human error• Consistent security• Repeatable, Repeatable, Repeatable

4. Virtualize• Increased system utilization• Flexibility to re-purpose assets• Flexibility to meet usage “spiking”

5. Find World Class Partners Who Share the Vision and Can Deliver on the Principles

Our StrategyOracle Grid Architecture

Our StrategyGlobal Data Center Standardization and Consolidation

FunctionFunction End 1999 End 1999 2003 2003 2004 2004 2005 2005

NT ServersNT Servers 1789 1789 800 800 <200 <200 <50 <50

EmployeesEmployees 43,000 43,000 42,000 42,000 41,000 41,000 50,000+ 50,000+

NT Support StaffNT Support Staff 400 400 200 200 75 75 <50 <50

FunctionFunction End 1999 End 1999 2003 2003 2004 2004 2005 2005

NT ServersNT Servers 1789 1789 800 800 <200 <200 <50 <50

EmployeesEmployees 43,000 43,000 42,000 42,000 41,000 41,000 50,000+ 50,000+

NT Support StaffNT Support Staff 400 400 200 200 75 75 <50 <50

• NT DHCP

• NT printing

• NT file sharing

• NT local disk backup

• NT software distribution

Global DHCP (join)

Direct IP printing

Collab Suite (OFO)

Collab Suite File Sync

Collaboration Suite

Our Strategy - NT Server Elimination Global Data Center Standardization and Consolidation

Financial Impact Results

$12M in ERP annual savings $18M in CRM annual savings $11M in e-mail annual savings $60M in desktop simplification annual savings $13M in annual maintenance reductions $100M in annual operating expense

IT Spending Trends

0

100

200

300

400

500

600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

• $500M in FY1999

• $334M in FY2000

• $269M in FY2001

• $255M in FY2002

• $248M in FY2003

• $222M in FY2004

• $257M in FY2005** Increase due to PSFT M&A expenses

• $291M in FY2006

• $313M in FY2007

• $335M in FY2008

IT Spending Trends

** Oracle Acquisition Strategy – Start Point – 2004

IT Strategic Initiative Savings - Oracle

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008

Fiscal Year

Perc

enta

ge S

aved

• Globally Focused• Leveraged Expertise • Corporate Directed Model

• < 35% of 1999 Budget• Highly Leveraged• Leading the Business

• Standardization: High• Common Practices: High• Knowledge Sharing: High

• Grid Infrastructure• Standard Technology• Standard Applications• Global Single Instance• Centrally Managed

Practices

FinancesSystems & Applications

Oracle Global IT Today

Organization

Data Center Overview

Tier 4 and Tier 2 Data Centers• Tier 4: Austin, TX• Tier 2: Colorado Springs, CO

Austin Data Center• Primary data center for 68,000+

Oracle employees; on 82,000 SF of raised floor space

• 22,000+ servers and 9.5+ PB storage

• Adding 100+ servers/week• Hosts 500+ customers’ mission-

critical apps• World’s largest Oracle application

production environment supporting 1.7 Million+ users worldwide

Actual Physical/Infrastructure Specifications

• 82,000 Sq Feet Raised Floor

• 2280 19-inch Racks

• Primary Power Supply: Dual Power Active Power Feeds

• Six 600-ton Chillers

• Water Storage: 50,000 Gallons

• Backup Diesel Generators: 7-2 MW Cat Gen sets

• Fuel Storage: 80,000 Gallons

• Up to 170 Watts/Sq Feet to Raised Floor

• Uninterruptible Power Supply: Fully redundant, 7.5 MW

Physical Security

• 24x7 armed security Guards• Biometrics & retina scanner• X-ray, metal detectors• CCTV system for automatic camera call up:

interior & exterior• Digital video recording systems• Global anti-passback (in/out) card readers

• Single point of access via Mantrap• Weight and dual biometric verification system• Building perimeter:

• Guard Gate• Armed Security Protection Unit• Protected with Electronic Intrusion Detection

Systems• Glass protected by “BlastGARD” window film

• Employee background checks

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Our Strategy:Automation (Operational Capability)

1. Standardize• Low-cost components• Repeatable and reusable process

and procedures• Improved Systems/Applications

deployment and implementation2. Consolidate

• Manage from one central location• Leverage sharing of resources• Improve uptime (load balance &

failover)3. Automate

• Eliminate human error• Consistent security• Repeatable, Repeatable, Repeatable

4. Virtualize• Increased system utilization• Flexibility to re-purpose assets• Flexibility to meet usage “spiking”

Our Strategy - Oracle Grid ArchitectureLeveraging Grid to Improve IT Capability

Operational CapabilityAvailability & Security Management

Availability Management Security Management

• 7x24x365 Availability Management:

Oracle provides a process to manage the availability of the applications, database, systems and hardware.

• Disaster Management:

Oracle delivers a process to recover from a disaster in a predictable time with applications and data synchronized.

• Security Patch Management:

Oracle has a process to guarantee that from the time a security patch is available from R&D it is applied to the production systems in a known period of time.

• Audit Management:

Oracle delivers a process to insure that an independent audit is performed at least once a year.

Operational CapabilityProblem & Performance Management

Problem Management Performance Management

• Escalation Management:

Oracle provides a process to escalate problems to resolution.

• Proactive Problem Management: Oracle provides a process to take high priority fixes from the development team and apply them in a predictable amount of time.

• Capacity Management:

Oracle provides a process to insure, on a periodic basis, there are adequate hardware and software resources to deliver a specified level of application performance.

• Resource Management:

Oracle has a process to add and shed infrastructure (computers & people) as load increases and decreases.

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Industry Best Practice Considerations

Software Industry FutureSoftware as a Service (SaaS)

• Managed and maintained to industry standards

• Certified configurations with integration throughout the entire technology stack

• Third party applications part of certified configurations

• Defined solid Change Control Policies

• Created solid Configuration Management

• Dedicated Oracle experts available 24/7 by 365 to resolve and proactively identify service interruptions

Quality Management

• TQM, Six Sigma, Deming, International Standards (ISO)

Process Development and Refinement

• ITIL/ASL, CMM/CMMI, SCOR

Governance

• COBIT

“Organized Common Sense”

-Bill Smith, 1989

Processes and Controls

SAS 70 Type II Audit• 2 times a year

Dedicated Internal Audit Global Information Security Audits Customer Penetration Tests Sarbanes-Oxley Compliance

Audit

Q&AQ U E S T I O N S

A N S W E R S