Intel IT Cloud Strategy

Intel IT Cloud

Aravind Doss
@ TDWI

Feb 5th 2011

Intel Confidential – NDA

Legal Notices

This presentation is for informational purposes only. INTEL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance
tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and
functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to
assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products.
For more complete information about performance and benchmark results, visit www.intel.com/benchmarks
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* Other names and brands may be claimed as the property of others.
Copyright © 2011, Intel Corporation. All rights reserved.

2 Copyright © 2011, Intel Corporation. All rights reserved.

Next 30 minutes

Intel IT Background
• Our Infrastructure layout
• Our primary business goals and objectives

Enterprise Cloud Implementation
• An Architecture & Roadmap overview
• Results & Challenges to date
Not Cloud Product marketing foils
Questions as they arise


Intel IT Data Center Overview

D Design ~35% YOY Growth1
(Data Storage)
Design Computing

Expected Storage
Design

Capacity (PB)
OE

O Office
General Purpose

M
2007 2008 2009 2010 2011 2012
Manufacturing
FAB/ATM Global IT spending on cloud2

$44B

E Enterprise
E-biz + supply chain
$17B

S Services
AppUp 2008 2013

Mandate: Enable Efficient Growth

1: Intel IT internal data. September 2009.
2: IDC estimates 2009

2010 Intel IT Vital Statistics
6,300 IT employees
62 sites, 25 regions

78,900 Intel employees
150 sites, 61 regions

95 Data Centers
>100,000 servers, 410,000 square feet

>105,000 Devices
>90K PCs (80%+ mobile), >14,000 Handhelds

Source: Information provided by Intel IT as of May 2010


Tactical Drivers
Business Benefits High-Level IT Strategies and Goals

• Accelerate virtualization to create a multiple tenant O/E environment
• Deploy new, retire old servers to improve energy efficiency
Efficiency • Drive higher utilization via resource pools and consolidation
• Measure services for VM utilization, health and IT capacity management

• Improve provisioning time from days to hours with on-demand self service
• Automate workflows to enable consistency, agility and elasticity
Agility • Streamline business processes with on-demand self-service portal
• Opportunistic use of federated public cloud services, when applicable

• Utilize and build on existing security infrastructure and safeguards
Security • Protect Intel IP, data and differentiated business processes
• Provide secure access to authenticated devices and users

• Deliver high availability and drive increased resiliency for all IT services
Availability • Use a consistent disaster recovery architecture for critical applications
• Adopt advanced technologies for highest availability on mission-critical apps


Tactical Drivers
Business Benefits High-Level IT Strategies and Goals

•
•
Service Level Control
Accelerate virtualization to create a multiple tenant O/E environment
Deploy new, retire old servers to improve energy efficiency
Efficiency • Drive higher utilization via resource pools and consolidation
• Measure services for VM utilization, health and IT capacity management

•
Self-Service On-Demand
Improve provisioning time from days to hours with on-demand self service
•
enables IT to respond automates service
Automate workflows to enable consistency, agility and elasticity
Agility • in hours to changes in life-cycle, streamlining
Streamline business processes with on-demand self-service portal
• business demand business processes
Opportunistic use of federated public cloud services, when applicable

• Utilize and build on existing security infrastructure and safeguards
Security • Protect Intel IP, data and differentiated business processes
• Provide secure access to authenticated devices and users
Measured Services
delivers valuable BI for
• Deliver high availability IT to monitor capacity
and drive increased resiliency for all IT services
Availability • Use a consistent disaster recovery architecture for critical applications
and business usage
• Adopt advanced technologies for highest availability on mission-critical apps


Strategic Drivers:
Compute Continuum

Many Devices (how users access information & services)
Corporate Smart Internet
Netbook MID Home PC Auto TV
PC Phone Cafe

Device Independent Mobility


Strategic Drivers:
Compute Continuum
Business Personal

IT Application Corporate Data & Personal Data &
Personal Data
Layer Services Services
& Services
Client Aware Computing

Many Devices (how users access information & services)
Corporate Smart Internet
Netbook MID Home PC Auto TV
PC Phone Cafe

Device Independent Mobility


Past 15 minutes

Intel IT Background



Next 15 minutes

Intel IT Background



Intel’s Definition of the Cloud
Services
• An evolution in IT consumption and delivery made available self
service via the Internet with a flexible, pay as you go
business model
• Requires a highly scalable and efficient Cloud Architecture

Management
Architecture
Compute Storage Network • Data resides in shared, dynamically scalable resource pools
• Based on virtualization and/or scalable application environments

“Private Hybrid “Public
Delivery Types
Clouds” Clouds Clouds”
Private: Deployed behind firewall for an organization’s internal use
Public: Services via public internet
Hybrid: A composition of two or more clouds (public, private, mixed)


Intel IT’s Cloud Strategy & Roadmap
<2009 2010-11 2012>
Internal: Intel Network Internal: Intel Network Internal: Intel Network
Hosting Platforms Build/Grow Enterprise Private Cloud Evaluate Hybrid Clouds.
Federated IaaS

Office/Ent Design Grid Office/Ent Design Grid Office/Ent Design Grid

Legacy Environments Legacy Environments Legacy Environments
Internal Internal Internal
Clients Clients Clients

External External External
Clients Clients Clients

External: Internet External: Internet External: Internet

IaaS SaaS IaaS SaaS IaaS SaaS
• Caching • Job Search • Caching • Job Search • Caching • CRM
• Benefits/Stocks • Benefits/Stocks • Back & Restore • Benefits/Stocks
• Sales • Client Image/VM • Job Search
• Storage • Sales
• Manageability • Productivity
• Collaboration

• D, then OES, last M
• Application hosting decision


Our Results, So Far…
Doubled our rate of virtualization (% virtualized O/E servers)
• 12% (2009)
• >40% (2010)
• 70% (goal 2011)

Dramatic Agility
Improvements
(service provisioning time)

• 90 days (2009)
• 14 days (mid 2010)
• 3 hrs (end 2010)
• 6 mins (2011)

2011: Removing Technical Hurdles for Virtualization of DMZ
and Tier 1 Applications


Key Challenges
2010 Top items Relative Resolution
TAM
affected
Tier 1 application: Need for high High Qualification with vendors (hardware &
availability & clustering software, OS & application, Tier 1 storage) to
get a solution to meet our high availability
and pushing into “Continuous availability’. 3
node cluster issues,
DMZ security / isolation of High Network solutions used to segregate the
different classes (Secret & systems.
Confidential) of data While this is the desired solution (i.e. P2V
ratio), this was a good stop gap containment.
End solution of using VT-TXT being evaluated
as solution.
Mega-VM: High CPU Med I/O intense workloads (ex: DB), especially
Disk/Network I/O systems memory intense application used VT-D to see
significant improvements in application
latency.


High I/O issue

Other VT options
• VT-C (VMDQ, VMDc)
• Security (TXT, ASE-NI)

Memory Intense workload had an big impact on consolidation
ratio, until the use of VT-d, allowing better application latency
and higher P2V ratios.


Last 30 minutes

Intel IT Background



Questions?

Acknowledgements
Rajesh Shenoy, Ramana Vithala, Tarun Acharya,
Rajeshkumar Ramamurthy
Narendra Vaze


Legal Disclaimer
• INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL® PRODUCTS. NO LICENSE,
EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPETY RIGHTS IS GRANTED BY
THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL’S TERMS AND CONDITIONS OF SALE FOR SUCH PRODUCTS,
INTEL ASSUMES NO LIABILITY WHATSOEVER, AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY,
RELATING TO SALE AND/OR USE OF INTEL® PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO
FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR
OTHER INTELLECTUAL PROPERTY RIGHT.
• Intel may make changes to specifications and product descriptions at any time, without notice.
• All products, dates, and figures specified are preliminary based on current expectations, and are subject to
change without notice.
• Intel, processors, chipsets, and desktop boards may contain design defects or errors known as errata, which
may cause the product to deviate from published specifications. Current characterized errata are available on
request.
• Code names featured are used internally within Intel to identify products that are in development and not yet
publicly announced for release. Customers, licensees and other third parties are not authorized by Intel to use
code names in advertising, promotion or marketing of any product or services and any such use of Intel's
internal code names is at the sole risk of the user
• Performance tests and ratings are measured using specific computer systems and/or components and reflect
the approximate performance of Intel products as measured by those tests. Any difference in system hardware
or software design or configuration may affect actual performance.
• Intel, Intel Sponsors of Tomorrow. and Intel Sponsors of Tomorrow. logo, and the Intel logo are trademarks of
Intel Corporation in the United States and other countries.
• *Other names and brands may be claimed as the property of others.
• Copyright ©2011 Intel Corporation.


Risk Factors
The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the
future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intel’s actual
results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from
those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could
cause actual results to differ materially from the corporation’s expectations. Demand could be different from Intel's expectations due
to factors including changes in business and economic conditions; customer acceptance of Intel’s and competitors’ products; changes
in customer order patterns including order cancellations; and changes in the level of inventory at customers. Intel operates in
intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short
term and product demand that is highly variable and difficult to forecast. Additionally, Intel is in the process of transitioning to its
next generation of products on 32nm process technology, and there could be execution issues associated with these changes,
including product defects and errata along with lower than anticipated manufacturing yields. Revenue and the gross margin
percentage are affected by the timing of new Intel product introductions and the demand for and market acceptance of Intel's
products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing
pressures and Intel’s response to such actions; defects or disruptions in the supply of materials or resources; and Intel’s ability to
respond quickly to technological developments and to incorporate new features into its products. The gross margin percentage could
vary significantly from expectations based on changes in revenue levels; product mix and pricing; start-up costs, including costs
associated with the new 32nm process technology; variations in inventory valuation, including variations related to the timing of
qualifying products for sale; excess or obsolete inventory; manufacturing yields; changes in unit costs; impairments of long-lived
assets, including manufacturing, assembly/test and intangible assets; the timing and execution of the manufacturing ramp and
associated costs; and capacity utilization. Expenses, particularly certain marketing and compensation expenses, as well as
restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and
profits. The majority of our non-marketable equity investment portfolio balance is concentrated in the flash memory market segment,
and declines in this market segment or changes in management’s plans with respect to our investment in this market segment could
result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest
and other. Intel's results could be impacted by adverse economic, social, political and physical/infrastructure conditions in countries
where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure
disruptions, health concerns and fluctuations in currency exchange rates. Intel’s results could be affected by the timing of closing of
acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata
(deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder,
consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable
ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products,
precluding particular business practices, impacting our ability to design our products, or requiring other remedies such as compulsory
licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s
SEC filings, including the report on Form 10-Q for the quarter ended March 27, 2010.

Rev. 5/7/10


Backup

Intel Confidential – NDA

Physical to Virtual Sizing Strategy

CPU Memory Disk Virtual Machine Density
(up to) (up to) (up to)
Intel® Xeon® 5500 Intel® Xeon® 5400
(Includes OS) based servers based servers

Small: App, Web Basic Server

1 vCPU 2 GB 100 GB 22:1 14:1

Medium: SQL Database Servers and Java* Applications

2 vCPU 4 GB 200 GB 11:1 7:1

Large: App Stacked, Large App, Super Servers

4 vCPU 8 GB 500 GB 5:1 3:1

Average weighted density ratio 15:1 9:1

One Size Does Not Fit All Applications
2011: Defining X-Large VM Spec

Source Intel IT. January 2010
Intel IT developed tool to estimate financial benefits of Physical to Virtual Refresh: www.intel.com/go/xeonestimator
Intel IT paper on virtualization. http://download.intel.com/it/pdf/Implementing_Expanding_Virtualized_Environment.pdf


Cloud Capability Phasing Over Time
Near-term Mid-term Longer-term
Automated workflows
Business On-demand self-service IT BI solutions for enabling
Capacity Planning
Transformation Measured Services
Transformation
business decisions

Default to virtualized Lockstep VMs,
Compute, Cross-site Disaster Recovery
Automated VM restart Near native virtualization
Resiliency MCA-Recovery
performance

Thin-provisioning, Storage resource pools & QoS
Solid-state data-center
Storage Data Duplication Elimination Incremental forever Backups
Continuous Data Protection
Consolidated Backup/Restore and Recovery

10 GbE Unified Fabric (compute,
Network Distributed Virtual Switch storage)
40 GbE

Non-production VMs in DMZ Secure Live VM migration Public cloud federation
Security Event and Access Monitoring VM Isolation Pervasive encryption

Infra. Inventory and Health Cloud brokerage & federation
Auto end to end Lifecycle
Management Basic BI: Capacity/Perf/health
Mgmt
Private-Public Cloud Live
Automated Patch / Provision Migration

Energy savings via Cross Platform Power Near-linear power scaling
Datacenter virtualization and Data Center Management PUE Improvements
Client Aware Services:
Client Virtualization, Expanded small form-factor
Clients MB-PC plus Handhelds
optimized across a range of
support
clients

Timing Determined by Capability, Readiness & Cost


Intel IT Cloud Strategy

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