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1   © 2012 Forrester Research, Inc. Reproduction Prohibited
Mission-Critical IT Still Drives Mission-
Critical Business
John Brand, VP and Principal Analyst, CIO Group



March, 2012




jbrand@forrester.com
2   © 2012 Forrester Research, Inc. Reproduction Prohibited
      2009
Enterprise IT is facing
                          fundamental change.
                          Mission-critical has now
                          become a global imperative
                          for the entire industry.

                          “Who would have thought that
                          email would ever have become
                          mission-critical?”



3   © 2012 Forrester Research, Inc. Reproduction Prohibited
The public face of mission-critical failures


 Major system outages continue to plague the best and brightest
      – Blackberry, Amazon, major international banks (HSBC, NatWest, First Direct,
        RBS, OCBC and DBS)

 Ponemon Institute Study, February 2011
      – The cost of a data center outage ranges from a minimum cost of $38,969 to a
        maximum of $1,017,746 per organization, with an overall average cost of
        $505,502 per incident.

 Interconnectedness of systems mean reliability is even more critical than
  ever
      – It‟s not just you….it‟s who you serve and who serves you
      – Data provided and consumed by third parties can disrupt entire industries, not
        just your own organisation



4   © 2012 Forrester Research, Inc. Reproduction Prohibited
More Than A Third Of Applications Are Deemed
Mission-Critical




5   © 2012 Forrester Research, Inc. Reproduction Prohibited
Reality: Three common approaches to implementing
    “next-generation” infrastructure

   Data Centre                                                       Data Centre                            Data Centre
    Refresh                                                          Renovation                            Transformation

                                                                                 FOCUS:                                    FOCUS:
              FOCUS:
                                                                    reduce operational complexity,            optimise capacity, availability,
increase capacity/density, increase
                                                                       increase flexibility/agility,       flexibility, performance and cost -
  power efficiency, maximise floor
           At least 80%
               space                                                        Less than
                                                                     availability/reliability, optimise
                                                                        efficiency through policy
                                                                                                          based on each business requirement
                                                                                                                          and policy
                    of                                                        15% of                                   APPROACH:
                                                                            APPROACH:
         organisations
            APPROACH:
 significant use of infrastructure
                                                                        organisations
                                                                significant use of infrastructure and
                                                                                                            significant use of infrastructure,
                                                                                                                 platform and application
               are here
   virtualisation (CPU, storage,                                             are here
                                                               platform virtualisation. Increased use
                                                                                                           virtualisation. Strong emphasis on
 network). Optimise use of assets
                                                               of automation. Optimise availability of
                                                                                 assets
                                                                                                                 Less than 5%
                                                                                                          business service level management
                                                                                                                  and policy automation
                                                                                                                       of
                                                                                                               INVESTMENT STRATEGY:
  INVESTMENT STRATEGY:                                             INVESTMENT STRATEGY:                          organisations
                                                                                                             minimise capital investments,
                                                                                                           preference for variable operational
maximise depreciation schedules                                reduce capital investments, focus on
    and optimise asset value                                     variable operational cost models                  are here
                                                                                                          costs for all business requirements.
                                                                                                          Change of focus from „cost-to-have‟
                                                                                                                      to „cost-to-do‟
                                                                                                                 (and most of
                KPI‟s:                                                           KPI‟s:                            these are
                                                                                                                       KPI‟s:
       IT service level metrics                                       IT service-to-value metrics                    service
                                                                                                                Business value metrics

                                                                                                                   providers)

   6      © 2012 Forrester Research, Inc. Reproduction Prohibited
Reality Bites: Most Organizations Remain at Stage 2


                                                                  Stage 2
                                           Stage 1
                                                                 “Strategic
                                        “Acclimation”
                                                               consolidation”
                                           Gaining
                                                                Manageable
                                       confidence as a
                                                               deployment of
                                         concept and
                                                              business critical
                                            toolset
                                                                 workloads


                                            Stage 3               Stage 4
                                           “Process            “Pooling and
                                        Improvement”           automation”
                                        Using tools to        Service centres,
                                       automate virtual        chargeback,
                                          landscape             SLAs, QoS




7   © 2012 Forrester Research, Inc. Reproduction Prohibited      SOURCE: Adapted from Forrester Research Report, July 2009
                                                                 “Assess Your Infrastructure Virtualization Maturity”
The Seven Qualities Of Extraordinary Software




                                                  Forrester Research, “The Seven Qualities Of Wildly Desirable Software” - January 2011, Mike Gualtieri




8   © 2012 Forrester Research, Inc. Reproduction Prohibited
Mission-critical: evolving to meet changing business
needs


                                      Large                                                        Variable
                                     workloads                                         Rapid      workloads
            Little or no                                                               and/or
              change                                                                  random
                                                                                      change

                                 Few                                                            Many
                                moving                                                          moving
                                 parts                                                           parts
                                                               Past ------- Future




      High performance mission-                                                    Highly flexible, scalable
            critical system                                                     system – with in-built reliability


       Only the most mature organisations have managed to combine
    mission-critical capabilities with the requirement for flexibility at scale

9    © 2012 Forrester Research, Inc. Reproduction Prohibited
Highly Available Applications Are Monitored, Fault
 Tolerant, And Fixable
 "We have been averaging about 20 minutes a year of unplanned unavailability per
 year for our primary ERP application, about 1.5 minutes per month. " (Major
 aerospace manufacturer, ERP system)




10   © 2012 Forrester Research, Inc. Reproduction Prohibited
Evolving “backup and restore” towards “resilience
 and recovery”
             October 2011 “2012 IT Budget Planning Guide For CIOs”




11   © 2012 Forrester Research, Inc. Reproduction Prohibited
Unix still provides a trusted mission-critical
 environment


  Unix kernel implementations for mission critical workloads are typically
   “trim and tuned”
       – Overall level of kernel maturity is perceived as higher than that of other
         operating systems such as Linux, providing better reliability, particularly under
         heavy loads.

  Better error recovery from transient errors, especially network and I/O
   device failures
       – Particularly when using hardware partitioning and virtualisation

  Predictive diagnostics are perceived as being better
       – UNIX perceived to be giving better warning of impending component failure

  Seen as having much more mature clustering for both HA and DR than
   x86 alternative

12   © 2012 Forrester Research, Inc. Reproduction Prohibited
HP-UX Users‟ Immediate Plans




                                Unix


                                                                             Total cost
                                             Disaster       Immature
Reliability    Scalability   Availability                                        of
                                             recovery      alternatives
                                                                             ownership




                                                                                          January 2012 “Oracle Versus HP: Customers Lose; Oracle And x86 Linux Vendors Win”

          13       © 2012 Forrester Research, Inc. Reproduction Prohibited
The OS centric view of the
                           world is changing…fast.

                           Effective management of a
                           platform that supports multiple
                           OS’s can deliver better
                           price/performance and flexibility
                           than standardising on any single
                           operating system



14   © 2012 Forrester Research, Inc. Reproduction Prohibited
Three steps to build your always-on, always-
 available enterprise


  Step 1: Understand the costs of downtime of critical services
       – Calculate potential impact on revenue, productivity and relationships

  Step 2: Focus availability on the end-to-end-service, not on infrastructure
   components
       – The seamless transition from the old-world of "mission-critical" to the new-
         world of "continuous availability" is driven by continuous evolution

  Step 3: Match business objectives to the right mix of technologies
       – Focus on the capabilities, not the products
       – The effective management capabilities of the platform are more important than
         any specific feature or function
       – It is never an “either/or‟ infrastructure/architecture decision for supporting
         mission-critical


15   © 2012 Forrester Research, Inc. Reproduction Prohibited
Thank you


John Brand
+61 3.902.41703
jbrand@forrester.com
www.forrester.com




  © 2009 Forrester Research, Inc. Reproduction Prohibited

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Mission-Critical IT Still Drives Mission-Critical Business

  • 1. 1 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 2. Mission-Critical IT Still Drives Mission- Critical Business John Brand, VP and Principal Analyst, CIO Group March, 2012 jbrand@forrester.com 2 © 2012 Forrester Research, Inc. Reproduction Prohibited 2009
  • 3. Enterprise IT is facing fundamental change. Mission-critical has now become a global imperative for the entire industry. “Who would have thought that email would ever have become mission-critical?” 3 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 4. The public face of mission-critical failures  Major system outages continue to plague the best and brightest – Blackberry, Amazon, major international banks (HSBC, NatWest, First Direct, RBS, OCBC and DBS)  Ponemon Institute Study, February 2011 – The cost of a data center outage ranges from a minimum cost of $38,969 to a maximum of $1,017,746 per organization, with an overall average cost of $505,502 per incident.  Interconnectedness of systems mean reliability is even more critical than ever – It‟s not just you….it‟s who you serve and who serves you – Data provided and consumed by third parties can disrupt entire industries, not just your own organisation 4 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 5. More Than A Third Of Applications Are Deemed Mission-Critical 5 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 6. Reality: Three common approaches to implementing “next-generation” infrastructure Data Centre Data Centre Data Centre Refresh Renovation Transformation FOCUS: FOCUS: FOCUS: reduce operational complexity, optimise capacity, availability, increase capacity/density, increase increase flexibility/agility, flexibility, performance and cost - power efficiency, maximise floor At least 80% space Less than availability/reliability, optimise efficiency through policy based on each business requirement and policy of 15% of APPROACH: APPROACH: organisations APPROACH: significant use of infrastructure organisations significant use of infrastructure and significant use of infrastructure, platform and application are here virtualisation (CPU, storage, are here platform virtualisation. Increased use virtualisation. Strong emphasis on network). Optimise use of assets of automation. Optimise availability of assets Less than 5% business service level management and policy automation of INVESTMENT STRATEGY: INVESTMENT STRATEGY: INVESTMENT STRATEGY: organisations minimise capital investments, preference for variable operational maximise depreciation schedules reduce capital investments, focus on and optimise asset value variable operational cost models are here costs for all business requirements. Change of focus from „cost-to-have‟ to „cost-to-do‟ (and most of KPI‟s: KPI‟s: these are KPI‟s: IT service level metrics IT service-to-value metrics service Business value metrics providers) 6 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 7. Reality Bites: Most Organizations Remain at Stage 2 Stage 2 Stage 1 “Strategic “Acclimation” consolidation” Gaining Manageable confidence as a deployment of concept and business critical toolset workloads Stage 3 Stage 4 “Process “Pooling and Improvement” automation” Using tools to Service centres, automate virtual chargeback, landscape SLAs, QoS 7 © 2012 Forrester Research, Inc. Reproduction Prohibited SOURCE: Adapted from Forrester Research Report, July 2009 “Assess Your Infrastructure Virtualization Maturity”
  • 8. The Seven Qualities Of Extraordinary Software Forrester Research, “The Seven Qualities Of Wildly Desirable Software” - January 2011, Mike Gualtieri 8 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 9. Mission-critical: evolving to meet changing business needs Large Variable workloads Rapid workloads Little or no and/or change random change Few Many moving moving parts parts Past ------- Future High performance mission- Highly flexible, scalable critical system system – with in-built reliability Only the most mature organisations have managed to combine mission-critical capabilities with the requirement for flexibility at scale 9 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 10. Highly Available Applications Are Monitored, Fault Tolerant, And Fixable "We have been averaging about 20 minutes a year of unplanned unavailability per year for our primary ERP application, about 1.5 minutes per month. " (Major aerospace manufacturer, ERP system) 10 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 11. Evolving “backup and restore” towards “resilience and recovery” October 2011 “2012 IT Budget Planning Guide For CIOs” 11 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 12. Unix still provides a trusted mission-critical environment  Unix kernel implementations for mission critical workloads are typically “trim and tuned” – Overall level of kernel maturity is perceived as higher than that of other operating systems such as Linux, providing better reliability, particularly under heavy loads.  Better error recovery from transient errors, especially network and I/O device failures – Particularly when using hardware partitioning and virtualisation  Predictive diagnostics are perceived as being better – UNIX perceived to be giving better warning of impending component failure  Seen as having much more mature clustering for both HA and DR than x86 alternative 12 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 13. HP-UX Users‟ Immediate Plans Unix Total cost Disaster Immature Reliability Scalability Availability of recovery alternatives ownership January 2012 “Oracle Versus HP: Customers Lose; Oracle And x86 Linux Vendors Win” 13 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 14. The OS centric view of the world is changing…fast. Effective management of a platform that supports multiple OS’s can deliver better price/performance and flexibility than standardising on any single operating system 14 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 15. Three steps to build your always-on, always- available enterprise  Step 1: Understand the costs of downtime of critical services – Calculate potential impact on revenue, productivity and relationships  Step 2: Focus availability on the end-to-end-service, not on infrastructure components – The seamless transition from the old-world of "mission-critical" to the new- world of "continuous availability" is driven by continuous evolution  Step 3: Match business objectives to the right mix of technologies – Focus on the capabilities, not the products – The effective management capabilities of the platform are more important than any specific feature or function – It is never an “either/or‟ infrastructure/architecture decision for supporting mission-critical 15 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 16. Thank you John Brand +61 3.902.41703 jbrand@forrester.com www.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited