Copyright 2017 Hewlett Packard Enterprise Development LP

The Right Mix for the WarfighterHybrid IT made Simple and Secure

Confidential – For Training Purposes Only

Sam Ceccola – HPE DoD CTO/Public Sector CTO Lead

November 2017

AGENDA

– Hybrid IT: Establishing a Common Definition and Why it’s important

– Drivers for a Hybrid approach to IT

– The Right Mix and Right Model

– Enablers for Hybrid IT

– Current Challenges and Priorities for Delivering IT in the DoD

– Solutions to the Challenges and Priorities of the DoD

– Conclusions

Hybrid IT: Where are you running your

workloads?

Hybrid IT

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Industry definition: Alternate definition:

Hybrid IT: An approach to enterprise computing in which an organization provides and manages some information technology (IT) resources in-house but uses cloud-based services for others.

Differentiator: Hybrid IT is an

approach to enterprise

computing in which an

organization moves

workloads from an

infrastructure with one

particular set of

characteristics to another

seamlessly in order to

optimize security,

performance, outcomes and

cost.

Hybrid

IT

The World is moving to Hybrid and HPE’s strategy positions you to win

Built-in data analysis

& contextually aware

Beacons, sensors

and geo-positioning

Ubiquitous

connectivity

Reliable

performance

& experience

Adaptive trust

security

Mobile users,

apps and devices

Security &

resilience built-in Containerized, automated

and orchestrated

Intelligent

EdgeYour Apps

& Data

Driven by agile

DevOps

Flexibleconsumption

Always

workload

optimized

Ecosystem of

innovation partners

Confidential – For Training Purposes Only

Services

Drivers for Hybrid Adoption

Confidential – For Training Purposes Only 6

Hybrid IT: the balancing actFinding your “right mix” and “right model”

The “Right Mix” is not a static destination, but rather part of the dynamic Hybrid IT Journey

As technology, requirements, threats and other variables change, so will the “Right Mix”

HPE IT transformation original objectives and actual results Our Right Mix defined, powered, and optimized

7,000+ Apps 10% Non-core, mainframe & non-virtualized apps

10% Cloud native apps &

traditional apps migrated to cloud

60% Broker M/S Azure services through

common service portal

20% SaaS: HR, CRM,

ERP, Content Mgmt

7,000+ Apps

1,800+ Apps10% 10%

Non-core, mainframe & non-virtualized apps

10% 55% Cloud native apps &

traditional apps migrated to cloud

60% 5% Broker M/S Azure services through

common service portal

20% 30% SaaS: HR, CRM,

ERP, Content Mgmt

– Workload suitability

– Application readiness

– Cost concerns (public cloud)

– SLA, High availability

– Cloud “lock in” AWS and Azure

– Data security concerns

– Desire for controllable costs

Automate & virtualize

Private clouds

Managedclouds

Public clouds+ SaaS

Traditional IT

On Premises Off Premises

Traditional Cloud

IT has choices to optimally place new and legacy workloads

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Public CloudOn Premises

Security & compliance

Control & governance

Data sovereignty

Latency

Architectural choice

The right mix

Hybrid IT

Developer-centric

Scalability

Variable expense

Simpler IT operation

Developer-centric

Vendor Lock-InFlexibility

Workload placement considerations60+ areas of consideration

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– Data Retention Requirements

– Cloud acceptance

– SLA / business continuity

– Growth projections

– Industry trends / best practices

– Shadow IT

– Service providers

– 3P and vendor contracts

– Data protection requirements

– Network isolation requirements

– Audit standards requirements / log

Retention

– Time to market

– Business criticality

– Governance

– User experience expectations

– User base location / geography

– Application continuity / forecast

Business Financial Technical Functional

– Migration costs―one time

– Operating costs

– Server to admin ratios

– Software licensing

– Development costs―applications

– Current and future state

– Lift and evolve

– Maintenance costs

– Facilities costs

– Life-cycle management costs

– Hosting costs

– Infrastructure

– Net new revenue stream opportunities

– Time to value

– Repatriation of workloads

– Performance requirements: compute, network, storage

– High availability requirements Clustering stack

– Network requirements

– Virtualization

– Application tier

– Storage requirements

– Storage distribution

– Application trends

– Utilization

– Load balancing

– Geography localization requirements

– Parallelism and scalability

– Distributed architecture

– Application environments (functional environments)

– Infrastructure services

– Monitoring and management

– Server inventory

– Dependency mapping

– Security requirements

– Infrastructure services

– Inter-application latency

– Assets

– Application routing and DNS

– Logging

– Migration complexity

– Application review

For HPE and Channel Partner internal use only

Security

– Compliance requirements,

regulations

– Security Accreditations

– Data Sensitivity and

Compartmentalization

– Security standards

– DFARS and other regulations

– TAA Compliant

– Made in the USA

59% of enterprises wait 3 months or

longer for new capacity 159% for compute and

48% for storage 1

Save on costs due to overprovisioningEnterprises overprovision on average by

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Time

$Traditional purchases (CAPEX)

Buffer

Compute needed and invoiced

1 451 Research November 2016

Flexible

Capacity

Savings

Flexible

Capacity

Savings

Capacity ahead of demand

Maintain a safe buffer of capacity

50% experienced downtime due to capacity planning

57% received complaints of slow performance1

What about as a Service: Why should I care about procurement?

Cloud economics - pricing comparison 2 vCPU x 8 GB RAM virtual machine―public versus on-premises**

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Facilities, admin, power, and cooling pricing are excluded and vary by customer; can range from $0 to $.01 for greenfield/hour.

** Based on available public cloud pricing. Configurations and unit pricing for public provider comparison as of 4-17-2017. Supporting data provided upon request.

Based on Cloud Genera workload placement engine on 17 April 2017.

0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18

Ibm Softlayer

Microsoft Azure - D2 v2

Amazon EC2 On Demand - m4.Large

Google Compute Engine - n1standard-2

Amazon EC2 1 year reserved - m4.Large

Amazon EC2 3 year reserved - m4.Large

HPE Synergy Medium (Flex Capacity)HPE Synergy―

50%+ lower cost than public clouds

Price per VM per hour

For HPE and Channel Partner internal use only

Drive Results & EfficiencyTargeted savings across compute, storage, backup and DR

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Guaranteed Data Efficiency

Built-in Resiliency, Backup, and Disaster Recovery

Global VM-Centric Management and Mobility

▪ Compression and deduplication

▪ Data processed at inception, globally

▪ Guaranteed 90% capacity savings across storage and backup

▪ Software defined: Manage all resources in a federated pool

▪ Seamlessly move data across on prem and off prem

▪ Eliminate islands

▪ IT Consumption: XaaS Pay as you go

Hybrid IT Data solutions

HPE customers can average 40:1 data efficiency and often see greater than 50% performance improvement

Enablers for Hybrid IT

– Data Security, Product Security and Secure Supply chain

– Workload Portability and Container Technology

– In Memory Compute and Memory Centric Architecture

– Cloud Economics

Confidential – For Training Purposes Only 14

The Customer: DoD Challenges and Priorities

Common IT challenges across the Department of Defense

– Security

– Skilled manpower and training

– Risk averse, slow to adopt new technologies

and approaches… paralysis through analysis

– Lack of adequate funding and/or wrong color

of money

– Acquisition process is not agile or responsive

to IT needs

– Interoperability

– ITSM and ITAM

– Outdated regulations and policies

Hybrid IT Satisfies Top IT Priorities!

• Improve Cybersecurity: Deliver baked-in security features, simplified O&M, fewer

seams, persistent monitoring and a reduced surface attack profile

• Reduce IT spending and Improve accountability: Have an Agile Hyrbid IT

Deployment that optimizes workloads for the mission outcomes

• Consolidate Data Centers and Automate:

• Outsource Enterprise IT systems and services via COCO model; and

• Leverage automation and simplify management; realign limited uniformed cyber forces to

higher-priority governmentally inherent positions

• Agile: Leverage automation, containerization and composability to become workload

agnostic, drive desired outcomes and improve IT and operational agility

• Cloud First: Embrace Hybrid IT, promote agility and avoid vendor lock-in

Conclusions and Call to Action

– DoD should not be in the Infrastructure Business – However, you shouldcare about the infrastructure and define requirements and salient characteristics to deliver operational capability and mission assurance

– DoD should adopt a COCO Model and fully embrace XaaS

– Hybrid IT is not defined by on-prem/off-prem, but by the optimized environment / ecosystem hosting and running the workload(s)

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Thank you