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DC Virtualization in Slovak Telecom Oto Malý, IT Divizion February , 2008 | 1 eFOCUS 2008 Virtualizácia Dátového centra v Slovak Telekom Doc. Ing. Oto Malý, PhD Vrchný riaditeľ Divízie IT Bratislava, 5.3.2008 e FOCUS konferencia TRENDY, STRATEGIE A IT TECHNOLOGIE pre 2008 až 2010

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DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 1eFOCUS2008

Virtualizácia Dátového centra v Slovak Telekom

Doc. Ing. Oto Malý, PhDVrchný riaditeľ Divízie ITBratislava, 5.3.2008

e FOCUS konferenciaTRENDY, STRATEGIE A IT TECHNOLOGIE pre 2008 až 2010

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 2eFOCUS2008

Agenda

ST – who we are in Slovakia and in DT group

People are driver and - Technology is only a tool

Storage story – living reality

Servers story - new concept and challenge

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 3eFOCUS2008

ST – who we are in Slovakia and in DT group

One of 3 largest players in Slovak Telecommunication market

Only one of DT Family members without revenue drop YoY –unique even in the European market

Modern product strategy

Leader in customer satisfaction - TRIM index in DT group and in Europe

Technology standardization based on DT standards

Leader inside DT affiliates in IT operational efficiency and maturity

Technology evolution is long-term a basis for innovations, effectiveness, efficiency, productivity and operational stability

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 4eFOCUS2008

People are driver - Technology is only a tool

Department for Infrastructural Operation + Department for IT StrategyConceptual design Financial studyMidterm Storage Management StrategyServer virtualization strategy

Common ST IT and HP team Department for Infrastructural Operation / Team for System Support + HP professional services and HP Servers and storages

High level technical designDetailed technical designMigration conceptTest cases

Real implementation / Storage story Solution strategy, Analysis and design running, test environment in creation/ Server story

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 5eFOCUS2008

Storage optimization story

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 6eFOCUS2008

Storage Management Strategy – Mid term scopeExecutive Summary

Status of storage infrastructure beforeStorages installed in 2002 and 2003 were going out of warranty and supportStorage demand determined by business requirements. Storage demand classified into 3 categories: Business Critical, Critical, Ordinary. Disk utilization much higher then 80% of allocated space (optimal utilization ought to be at 80%). Higher utilization would lead to rapid loss of performance. Primal storage infrastructure and capacity could not cover the anticipated annual capacity business demand via upgrade (ongoing and new projects, Disaster recovery/SOX compliance, regulatory requirements)Traditional extensive grows was out of real and reasonable financial possibilities

Solution reengineering and optimization was strongly required

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 7eFOCUS2008

Initial status

As is: Data on the old disk arraysTo be: To restructure data and migrate to HP XP12000

IT environmentIT environment IT environmentIT environment

DC Kosice

DC Presov

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 8eFOCUS2008

Mid -Term Storage Management Strategy Executive Summary

Mid-Term Storage Management Strategya)Introduce virtualization program as a best market practice

b)Scale storage solution by capacity upgrade and optimize, CAPEX and OPEX efficiency

c)Redefine architectural principles and IT standards, simplify andoptimize SAN structure in terms of capacity and utilization efficiency

d)Reduce operational storage demands by optimized usage of old disk arrays, applying optimized IT standards solution and using cheaper Mid range solution

e)Cover future capacity gap by systematic YoY reengineering of storage space and process, utilizing above measures

2 years program

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 9eFOCUS2008

Mid -Term Storage Management Strategy Consideration

Operational IT efficiency = significant decrease of TCO for solutions and services

Standard cost-cutting approaches have been applied and were to greatest extent more-or-less exhausted, however NEW drivers can enable potential savings, namely:

Exploitation of newly available technologies and solutions

Qualitative (careful) transition to less robust IT architecture and standards, resulting in:

Adjusted SLA (process of all stakeholders) and lower TCO

In order not to cause disruptions of IT operations, Disaster Recovery and Business Continuity support (in other words existing SLA level), full commitment of stakeholders: Businesses, Controlling and IT is needed to reengineer SLA to the less robust architecture. This process (and solution deployment) is not attainable in few weeks time, it is a mid-term process. The measurable KPI is TCO today versus TCO target model

(Gartner source: Standard approaches INDUSTRY statistics for IT budget savings over 5 Year period: revision of contracts with vendors (84%), HC reduction (42%), licenses reduction (32%), centralization of servers (32%), centralization of development (26%), etc)

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 10eFOCUS2008

Mid -Term Storage Management Strategy Consideration

There are 7 basic drivers for architecture and standard optimization

Virtualization Implemented in Disk array optimization program Disks with lower speed (rpm) Have been tested in HP project and are to be used as standard for secondary siteHigher RAID Have been tested in HP project.

To be implemented in Disk array optimization program immediately Business continuity volumes Provision of BCV on cheaper technology –> To be tested and implemented with virtualization Remote replicas Provide mirroring on cheaper technology –> To be tested and implemented in Disk array optimization programBack up reengineering New back-up engineering and SW solution together with virtualized storage capacity Server consolidation and Virtualization

Accelerator of innovations and efficiency–next step

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 11eFOCUS2008

Mid -Term Storage Management Strategy

Short Term Actions 2006/7Resolve capacity gap and expiring warranty:

Extend installed High-End HP storage capacity according to optimized demand

Implement only lower speed disks for secondary site

Continue Disk array optimization program for SAN based on RAID reengineering 3/4 and 7/8 according to criticality of site and relevant data

Deploy cheaper Mid Range disk technology (like EVA) for applications of appropriate business criticality

Prolong post-warranty support for old technology under revised and optimized conditions

Assess impact of deployment of archiving solution and old data archiving

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 12eFOCUS2008

Mid -Term Storage Management StrategyMid Term Actions 2007/9

Based on best market practice start virtualization program Analyze and test Cross platform virtualization (XP and EVA + others) Test Cross platform virtualization, Utilization of old disk arrays for Business Copy and Continuous Access As an alternative test HP virtualization Cross HP platform virtualization (XP and EVA)

Implement virtualization solutionStart Business Driven Disaster recovery and Business Continuity reengineering program Start Continuous Access reengineering on Mid range (cheaper) technologyReengineer back up solution optimize back up processes and Review allocation of applications to appropriate range of disk arrays Formalize demand/requirement process (incl. support tools) with focus on prioritization and capacity allocation managementImplement reviewed internal regulations and standards driving storage infrastructure and setup balancing cost versus business impact

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 13eFOCUS2008

Migration to new disk arrays HP XP12000

IT environment

11 servers (*)

IT environment

11 servers (*) IT environment

42 servers (*)

IT environment

42 servers (*)

DC Presov – migration of 5,4TB– preparation, systems patching + SAN 20 days + 5days, data migration 5daysDC Kosice – migration 10,5TB– preparation, systems patching + SAN 20 days + 5days, data migration 12days

DC Kosice DC

Presov

CA

* - connected to XP

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 14eFOCUS2008

Capacity upgrade of XP12000 and virtualizationProject plan

Start: 01/2007Finish: 08/2007 – fulfilled

Project finished in time, in scope and in budget frame. Approved main milestones

- Capacity upgrade of XP12000 in DC Kosice and DC Presov- Introduction of virtualization technology on the platform of disk array of EVA8000

Activities- Upgrade of hardware XP12000- Installation of EVA8000 - Virtualization of EVA disk space / enhancement of the capacity via virtualization - Preparation of migration - BC (business copy) from XP12000 to EVA8000- Testing of backup by means of Dataprotector Zero Downtime Back up (DP ZDB) - Migration of BC (Business Copy) from XP12000 to EVA8000 (virtualization and optimization of data classification methodology)- Data migration from EMC to XP12000 - Performance testing of disk arrays and data availability for Application owners - Removing old connections to servers- Operational tuning

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 15eFOCUS2008

XP12000EVA8000

External StorageBusiness Copy

XP12000EVA8000

Continuous Access

KošicePrešov

External StorageBusiness Copy

SAN

SAN

SAN

SAN

CHIPCHIP CHIP

CHIP

XP12000 is used as an Virtualisation Engine enabling Backup Data to go to External Virtualised midrange Storage on EVA8000

3x Direct Connection3x Direct Connection

Final status

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 16eFOCUS2008

Main project business achievements

HP storage reengineering project leads to significant billing improvements

Business segment billing run average 3:48 hours against 10 hours before

Residential Segment billing run average 12:45hours against 30 hours before

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 17eFOCUS2008

Results Higher availability based on new technologyBetter performance

SAP - improvement of average time for disk operations by more than 50%Reporting DB had time schedule problems before migration, there is enough defined work time. (Daily, weekly, monthly – 30%)

Shorter response to requirements (provision of new/change disk space)Better management - implementation of virtualization (disk arrays XP see other disk arrays HP EVA as their own disks)

Consolidated and optimized backups (from D2T to D2D2T)**Lower backup frequency, faster backup, cheaper backup (less backup drives) Better and faster restore (in case of IS release, hot fix, upgrade, disaster) Business copies (used for backups) use cheaper disks (midrange arrays in final status, high-end in a past)

Run of Test/Dev environment on lower level support storages, lower cost in operation

** - D2D = disk to disk, D2D2T = disk to disk to tape

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 18eFOCUS2008

Proposed next steps

Reuse of old disks in low cost operational mode for non critical use

Replacement of old disk arrays (out-of warranty)

To change technology (mid-term or long-term vision)

To use for test, dev environment virtualized disk space from EVA

Ad-hoc requirement (temporary) to cover by BC volumes

Prepare capacity management and standard storage volume enhancement 2009++

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 19eFOCUS2008

Disk Array Life Cycle ManagementImplementation Team

ST Team HP Team Project sponsor: Oto MalýProject owner: Gejza TomkoProject manager: Juraj LengyelProject delivery manager: Peter IzsófProject members: Peter Kiss

Ľuboš PolgárDana NagyováMartin GablikYveta Kollárová

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 20eFOCUS2008

Server Virtualization Story

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 21eFOCUS2008

Executive Summary

Why does ST need virtualized HP-UX server infrastructure?BC Applications running on server environments older then 5 yearsEURO transition project requires, space, performance and reliabilityMajority of servers running out of warrantyStrategic migration from PA-RISC to Itanium platform due to PA-RISC end of sales in 2008Improve server efficiency by creating unified, scalable infrastructure with flexible pool of shared resourcesStrategic migration from HP-UX 11 v1 to newer version due to end of sales in 2008 for old oneSimplification management of server infrastructureIncreasing support costs of existing servers after standard warranty – to be eliminatedReducing IT costs is required

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 22eFOCUS2008

Benefits of virtualization

Unified and flexible infrastructureeasier to manageeasier to deploy applicationshared pool of computing resourcesapplications benefit from virtualized environment

Cost saving on licensingless number of CPUs (more powerfull CPU) and better utilization e.g. better Oracle licensing factor (0.75 PA-RISC vs. 0.5 Itanium)

Updated infrastructuresupported hardware for long period supported OS for long period (ability to use new features of the newest OS)

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 23eFOCUS2008

Implementation

Phase I – Quick Wins implementationvirtualization of server infrastructure for SAP, DAS, UTP information systems

Phase II, Phase III – Virtualization of the rest of Unix server infrastructure

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 24eFOCUS2008

Phase I-III Summary

Investment + Opex 5-yCurrent 100%Phase I-III Total 66,5%

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 25eFOCUS2008

Phase I – Quick Wins

Three scenarios differing in target platform sizing and migration approach:

1. Box-to-box: Current servers will be migrated in 1:1 fashion (target hardware is a mix of low-end and mid-range servers of various models)

2. Virtualized - option I: Current servers will be virtualized on mid-range platform (rx8640) with exactly the same performance as current applications need

3. Virtualized – option II: Current servers will be virtualized on mid-range (rx8640) with reserved capacity to cover migration needs of other applications

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 26eFOCUS2008

Scenario Evaluation (5-Year TCO)

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 27eFOCUS2008

Phase I - 5 Years IT Spend by Category

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 28eFOCUS2008

Recommended scenario for Phase I(Virtualized – option II)

This option will cover virtualized infrastructure for SAP, DAS, UTP plus additional capacity reserved for starting virtualization in Phase II.

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 29eFOCUS2008

Target solution architecture for Phase I(Virtualized – option II)

SITE A – Košice SITE B – Prešov

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 30eFOCUS2008

Phase II and Phase III

Realization in 2008-2009

Phase II (2008) - Virtualization of 27 servers onto 4 rx8640

Phase III (2009) - Virtualization of 39 servers onto 6 rx8640

Migration Phase I - III in 2008-2010

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 31eFOCUS2008

Phase II and Phase III

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 32eFOCUS2008

Phase II - 5 Years IT Spend by Category

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 33eFOCUS2008

Phase III - 5 Years IT Spend by Category

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 34eFOCUS2008

TCO/ROI Assumptions

TCO/ROI method is NPV (Net Present Value)

Migration cost estimated as 20% - 30% of hw and sw cost

Annual refreshment cost of current technology:

35% of servers refreshed

cost is 50k USD per refreshed server

Refreshment of new environment in last 2 of 5 years

Real migration timeline has not been taken into account as it depends on:

ST’s business needs (outage windows, impact, new releases...)

Application interdependencies

DC Virtualization in Slovak Telecom Oto Malý, IT DivizionFebruary , 2008 | 35eFOCUS2008

Question???

Thank you for attention