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Oracle Next Generation Datacentre Index,

Cycle II – Results and Key Findings

11th January 2012

CUSTOMER LOGO

―Data is the new raw material for the 21st century.‖

Sir Tim Berners-Lee

Director of the World Wide Web Consortium and Director Designate of the Open Data

Institute

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Has the ‘Big Data’ boom caught businesses off guard?

0

10

20

30

40

50

60

In-house-only data centres

Using some external data centres

No need for new data centre

Need new data centre within 2 years

Use of Data Centers – Cycle 1 to Cycle 2 Comparison

Cycle 1 (%)

Cycle 2 (%)

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Oracle Next Generation Data Centre (NGD) Index

Background

• Large numbers of senior IT personnel questioned

– Over 950 in 10 regions

– UK, Ireland, France, Germany/Switzerland, Italy, Iberia, Benelux, Nordics, Middle

East, Russia

– Large (>$100M revenue) or very large (>$1Bn) organisations

• Answers can be converted into numbers 0 – 10

– Basic topic – Data Centres and how organisations set up and use them

– Sub-topics – Flexibility, Supportability, Sustainability

• Overall average gives the Index number

– Also have Index numbers by country and industry

– Also have Index numbers for each sub-topic

• This is Cycle II – Cycle I was launched May 2011

– Much insight available from comparison of the snapshots

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Top Line Index Results

• All Oracle NGD Index numbers have increased since Cycle I in

May 2011

– Overall progress is being made in sophistication of data centre strategies

• Cycle I (5.22) to Cycle II (5.58)

• Cycle II Range is 6.51 (Nordics) to 4.62 (Russia)

– Every sub-index, every country, every industry figure has risen, even in

the short time since Cycle I

• Research highlights what is happening in key technology topics

– Sustainability, Virtualization, Consolidation, Server Utilization, IT

Planning, Upgrade Management, IT/Business alignment

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Cycle I to Cycle II comparisons

• Nordics now head the table, having taken over from Germany/Switzerland

• Middle East has made great overall progress, other rankings remain the same

• Ireland and Russia, both new to Cycle II, are lagging the rest

• Flexibility was key in Cycle I, Sustainability more so in Cycle II

• Financial Services has made least progress (Lower Flexibility in Cycle II)

4 4.5 5 5.5 6 6.5 7

Russia

Ireland

Italy

Iberia

Middle East

France

Overall

UK

Benelux

DCH

Nordics

Cycle II

Cycle I

4 4.5 5 5.5 6 6.5 7 7.5

Retail

Public Sector

Media

Healthcare

Financial Services

Other

Utilities

Telco

Cycle 2

Cycle 1

4 4.5 5 5.5 6

Supportability

Sustainability

Flexibility

Overall

Cycle II

Cycle I

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The Big Data Boom – Industry Perspective

• Telcos seeing a sudden need to increase use of data centre technology.

– Global connected devices to rise from 9 billion to 24 billion by 2020 (Machina Research)

• M2M devices to grow from 2Bn today to 12 Bn in 2020

• Handsets – 2Bn to 9Bn

• Data – 4 Exabytes to 42 Exabytes (60/40 between PC and Handsets)

– Drivers:

• Consumer data use on mobile devices

• On-demand home entertainment

• Hosted apps for small business and Infrastructure-as-a-Service (IaaS)

• 4G will boost this trend

• Utilities has made significant progress

– Smart Grid and Smart Metering set to have a huge impact

– The worldwide growth in smart meter unit shipments will be 13 percent from 2010 to 2015, with a

total of 460.9 million smart meters shipped through the forecast period (IDC Energy Insight)

– 26% CAGR in Europe, led by UK (109%), France and Spain (Frost & Sullivan)

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The Big Data Boom – The Oracle Perspective

• Despite talk about the data boom for many years, businesses have still been

caught unawares by the sheer scale. For example:

– 135 Exabytes of data (2005) will become 2720 Exabytes in 2012, and 7910 by 2015 (EMC/IDC)

– The growth of data is outpacing storage capacity 2 to 1

– By 2014, global ecommerce spending is projected to increase more than 90 percent (84%

Europe, 184% Russia) – Euromonitor International

– Quarter of a billion apps downloaded on Christmas Day (Flurry)

– 6.8 million iOS/Android devices activated on Christmas Day (up 140% from 2010)

– Increase from 3Bn to 15bn devices connecting to the Internet by 2015 (IDC)

• Businesses still trying to understand how to turn all this data into a valuable asset

– Only now working towards changes in the datacentre to enable them to compete under the

strain of Big Data.

• Organisations need to be able to acquire, organise, analyse and act upon huge

data volumes

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0

50

100

150

200

250

300

350

Need for Consolidation

Support Business Growth

Age of existing facilities

Move to new architecture

Limitations of existing facilities

Replace facilities on rolling basis

Main reason for new data centre investment

Cycle 1 (#)

Cycle 2 (#)

• Overall progress (5.21 – 5.58) in a slow business climate

supports the idea that IT is fast becoming a boardroom issue

Cycle II Insights II – Data in the Boardroom

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4.8 5 5.2 5.4 5.6 5.8

Supportability

Sustainability

Flexibility

Overall Index

Cycle 2

Cycle 1

• Organisations with no formal sustainability plan

have halved (13% to 6%)

• Over half now have a sustainability statement in

place and a formal plan to support it

• There is room for improvement

– More data centre managers now see their energy

bill than in Cycle I, but nearly a half of them still

don’t

– Nordics and Middle East have made the best

progress

• The Oracle perspective – properly engineered

solutions can significantly aid improved

sustainability performance

Cycle II Insights III – Sustainability now on the agenda

Oracle NGD Index and sub-indices

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• The Oracle Perspective – Some progress has been made, but there

are still clear, quick-win opportunities for technology innovation to

support business performance

Cycle II Insights IV – Consolidation, Virtualization and

Business

0

10

20

30

40

50

Doing "nothing" on consolidation

Using virtualization to

consolidate

< 30% Virtualized < 10% virtualized Over 50% Utilization

Cycle 1 (%)

Cycle 2 (%)

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• The Middle East has made (proportionately) most progress

– Good improvement from Cycle I in all areas, particularly Virtualization,

Consolidation and Sustainability

– Supporting business growth still a main reason for investment

• Nordics have made progress in many areas

– Systems Management, Virtualization, Sustainability, Server utilization

• Some evidence of stagnation (e.g. DCH, Benelux, Iberia)

– Only small increase in overall Index score

– Small progress made in some, but not all, areas

• France had already seen the need for new data centres

• New arrivals, Russia and Ireland, have much room for improvement

Oracle NGD Index Cycle II – Country Insights

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• Encouraged to see overall progress even in the short time since Cycle I

– Business climate means technology’s possible contribution is even greater

– But business needs to move fast to gain benefit from Big Data

• Organizations should be taking better advantage of technology to improve use of

current IT and position for the future

– Good to see that sustainability now more recognised as an important issue

– Virtualization, consolidation are prime areas for priority consideration

• Also, organizations should be considering how to adapt themselves

– Approaches to procurement, engineering, testing

• Oracle’s strategy is to help organizations address these issues

– Be best-of-breed at every layer of the stack – from applications to disk

– Bring these elements together into a vertically integrated system such as our Exa offerings

– Build up our industry-specific capabilities

– Deliver these any way the customer wants – on premise, on demand, etc.

The Oracle View

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Oracle’s Credentials

• Between 2006 and 2010, Oracle more than doubled its

employee numbers but still managed to reduce its

datacentres from more than 40 to two

– This has led to a US$1 billion bottom line saving

• This was achieved against a backdrop of acquiring multiple

companies

• Oracle has taken advantage of its own technology to

increase server utilisation from seven percent to 70 percent

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Oracle IT: Oracle DevelopmentSelf-Service Private Cloud

Implementation Overview:

Scope/Scale - Over 2600 physical servers with over 6000 Virtual Servers used by over 3500 developers

Activations – Processing over 70 jobs per day, this translates into over 45,000 jobs processed supporting production and test requirements.

Utilization – Rates on these servers averages 80% 7 days a week and can reach 90% during peak times.

Results/Benefits:

Increase in development productivity

Self-Service system for creation of development environments

Cleaner code lines as environments are created quickly for more thorough testing/validation.

Physical Server/Environmental Reduction by 75%

Server/Apps Deployment reduced by 80%

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• British Board of Film Classification Digitizes 200,000 VHS Videos and

60,000 DVDs for Future Preservation (UK) (Oracle StorageTek)

• Immonet GmbH Uses New Data Warehouse to Consolidate Real

Estate Data, capable of handling a 350% increase in data (Oracle

Exadata)

• TIMWE Ensures Competitive Edge with Real-Time Analysis of

Thousands of Daily Transactions (Portugal) (Oracle Exadata)

• Tušmobil Captures More Than 8% Market Share In Less Than Two

Years with Unique Mobile Packages (Slovenia) (SPARC Servers)

• Brabant Water N.V. Gains Business Continuity to Support Critical

Water Service Invoicing System (The Netherlands) (SPARC Solaris)

Examples of Customer Success

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Virtualize Applications with SPARC T4 Servers"We have tested the new SPARC T4-4 system against our current Siebel infrastructure on the SPARC

M5000 and the performance of the T4 system was very positive.

The moving of the applications from the current infrastructure to the new T4-4 was flawless with no need for a porting plan or specific tuning.

Using virtualization with Solaris Zones in the T4-4 system against a non virtualized Solaris environment in M5000—this was most impressive. Performance has doubled from our current servers. We think the SPARC T4-4 is the ideal platform for virtualizing and consolidating Siebel and other applications, from

the web server down to the database server tier.‖

Umberto Angelucci, CTO, SKY Italia

―Our beta testing of Oracle’s SPARC T4 server demonstrated impressive performance and an architecture that reduced complexity and operating costs. This excellent performance on our mixed

throughput needs, combined with the SPARC T4’s attractive software licensing terms, led to our decision to use the SPARC T4 system for our next generation archiving system.‖

Mr. Hans-Juergen Wolf, Archive Manager

―Because we develop content management systems for many German federal and local governments, it is critical that Materna base its solutions on the most scalable and high performance technology. We are beta

testing Oracle’s SPARC T4-1B blades with our "Government Site Builder" application and seeing throughput and single thread performance improvements of 5-7 times in comparison to the previous generation SPARC

blades.‖

Dr. Georg Kösters, Head of Business Process Management - Business Division Applications, MATERNA GmbH

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SPARC T4 Servers and SuperCluster―As a leading global financial institution, ING needs servers that provide the highest levels of

reliability and performance to support our mission-critical business applications. Our testing of the ING application stack on Oracle's SPARC T4 servers running Oracle Solaris proves Oracle’s Sun servers deliver quality, predictability and complete backwards compatibility while greatly enhancing

system performance.”

Frank Schots, Senior UNIX Systems Engineer

―We chose to test Oracle SPARC SuperCluster for performance improvement of our current datawarehouse system and consolidation of sparse Oracle databases through implementation of RAC features. Our heaviest operation is datawarehouse loading and with SPARC SuperCluster

we are expecting a huge improvement.‖

Aldo Chiaradia, CIO Benetton Group S.p.A.

―SAS® Business Analytics enables faster, more accurate data-driven decisions. Whether it is risk analysis, fraud detection or complex optimization mathematics, implementing SAS Business

Analytics on SPARC T4 solves critical business issues in transformational ways. SPARC has long been a proven platform for SAS applications; T4 delivers SPARC performance at its best.‖

Paul Kent, SAS Vice President of Platform Research and Development.

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• Organizations must ready themselves to acquire, organise, analyse

and act upon huge data volumes

• Data, ―the new raw material of the 21st century‖ is becoming a focus

area for the boardroom

• Sustainability is back on the agenda – the countries making most

progress here also have best Index performance

• Consolidation and Virtualization are still important ways for IT to

support the business

• Progress is being made – but there is still room for improvement

• Oracle has a unique track record and capabilities to help

organizations worldwide

Summary

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Q&A

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