presentation sun forum las vegas 12 oct 2006

JEROEN MEIJER, SENIOR IT PROJECT MANAGER, KPNALIGN STORAGE SLAS TO BUSINESS NEEDS AND REDUCE STORAGE COSTOctober 12, 2006

sun.com/events/forum2006

KPN• Telephone, Internet, and Television in the

Netherlands• Mobile communication in the Netherlands,

Belgium (BASE), and Germany (E-Plus)• In 2005, all IT departments of the fixed

telephony division were merged into one IT department: IT Operations

• KPN currently is replacing its network by an all IP network, enabling triple play: VoIP, digital television, and Internet

Key Figures (2005):• Operating revenues: $ 14,92 m• Operating result: $ 2,935 m• After-tax profit: $ 1,847 m

Key Numbers (at Year-end 2005):• Number of fixed connections: 6.9 million,

of which 1.7 million ADSL• Mobile customers: 20.8 million


KPN Mobile Division 20.8 Million Subscribers

Netherlands

Market Share 46.3% Subscribers 8.1 m

Belgium

Market Share 13% Subscribers 2 m

Germany

Market Share 13.5% Subscribers 10.7 m


Jeroen Meijer• Jeroen Meijer is a senior project manager

at KPN • In 2005, Jeroen was program manager for the

IT Infrastructure Consolidation Program (ITIC)• One of the initiatives of ITIC program was

storage consolidation (other initiatives included server—and database consolidation) and as a part of that initiative the Storage SLA adjustment project was executed

• The SLA Adjustment project was staffed by SUN personnel (6 man)


Agenda• Background• Timelines• Project Approach• Project Results/Lessons Learned• Next Steps• Questions


Server Estate Situation 2004: The computing devices in the Netherlands are mainly hosted in 4 large, and several “smaller”, data centers

1093

595

397284

32835

8282

BUSSUM

Major Hosting Data CenterSupplier Location

32835

KPN Location

Server EstateAn in 2004 IT assessment (external study) from the asset inventory list provided by Supplier brought to light:• About 4000 servers

• 1800+ in the Wintel environment, • 1700+ in the Unix environment, • 400+ other Operating Systems

• Hosted at 36 different locations• “Island” solutions• Fast growingKPN IT Topology in the

Netherlands 2004


Storage Estate

• More than 10 different Storage Vendors • Storage Infrastructure

• Number of storage devices >135 • LEGACY—High costs associated• 48% of the storage environment is greater than 3 years old

• Storage Configuration• No tiered Infrastructure/Information lifecycle management

• The raw storage has been estimated to approximately 250TB; Growth > 100%

• 70% of the environment is managed by sourcer• No Capacity Management information• Others

• Storage purchased in per application not part of a strategic plan

IT Infrastructure

An analysis of the storage area networks reveals that many different SAN and backup environments have been deployed creating a non-standardized and complex environment to manage


Communication KPN—SupplierBOARD

Eelco Blok EBM+31 70 45 [email protected]

CorporateCenter

MobileDivisionMobile

FixedEelco Blok

KPNServices

Jos SwartsOther

Activities

Corporate Center

DPOFixedGudoNollen

Professional

FinanceServices

JanWesselin

gh+31 651263422

j.n.wesselingh@kpn

.com

Control &SupportLou vanHurck

Control &SupportHermanKoelfatDPO

MobileKlaus

Hörschgen

CC:RVBSecretaryno name1

CC:Treasury &Risk

management

no name2

CC:Corporate

Controlno name3

CC:Investor

Relationsno name4

CC:Fiscalaffairs

no name5

CC:Divestments,

Merger &Acquisitio

nsno name6

CC:CIOPieterBuijs

ProgramManagerCorporate

DataEric

Kramer

ArchitectConsultan

tFrans van

Vugt

ProgramManagerapplicatio

nRationalis

ationPeter

HermansProgramManagerProfesioli

singDemand

Organisation

Vincentvan

Ravels

CC:Corporate

Procurement

Willemvan

Oppen

ITCluster/

ManagedITC

ServicesEmilioPiers

ITCluster/Managed

ITCServicesFrirjof

BerenbakIT

Cluster/Managed

ITCServices

FritsHuijbrecht

sIT

Cluster/Managed

ITCServices

RoaldMinneboo

ITCluster/Managed

ITCServices

TeunFokkema

SpecialProjectsHarmMeijer

ITHardware

andSoftwareHenrietteSmuldersProcurem

ent

FacilityManagem

entMargaBlom

FixedEelco Blok

FixedJacobGroote

+31 50 5518 800

[email protected]

OporationTeam Fixed

DivisionBusinessSolution

Fixed:Segment Business

Fred deGoede

DivisionFixed

NetServices

Fixed:Segment Consumer

MichielBuitelaar

SegmentWholesale

&Operations

OperationsFixed Net

(OVN)Cees Bosman

CarrierServices

JoostFarwerck

KPN ServicesJos Swarts

ServicesHans Toet+31 6 5158

3501j.j.h.toet@kp

n.com

ServicesArjen de

Waal+31 6 5394

[email protected]

ServicesNico Witte+31 6 5334

2246n.witte@kpn

.com

CIO Oporation Team Fixed

CIO TeamDerk Poot

+31 6 2224 [email protected]

m

CIO TeamHenriette Smulders

+31 653222591h.a.q.m.smulders

@kpn.com

Operation TeamStaff

CIO TeamOdette Schuin

+31 50 5518877

[email protected]

CIO TeamRonald Janmaat

+31 6 51425295

[email protected]

CIO TeamPeter van der Knaap

+31 651367685p.a.j.vanderknaap@kp

n.com

CIO TeamRob Peters

+31 653211276r.m.peters@kpn

.com

STRATEGYJan Wildeboer

EnterComBas Burger

Fixed:Busines:EntercomMaarten

Schonfeld+31

703435003m.c.schonfeld

Bidmanagement

Hans Vogel

BusinessMarketingno name19

Connectivityno name20

Integrated &ManagedSolutions

no name22

Fixed:SegmentConsumer

Michiel Buitelaar

FixedTelephony

(VT)Karin Valk

+31703430686

[email protected]

BillingArnoud

Pleij

ProductHouse

Sep Visser

Development

BartOvertoom

Fixed:Consumer:VTBernard

Pekelharing+31 6 2280

[email protected]

ntNico

Admiraal+31 6 5339

[email protected]

Fixed:Consumer:VT:P

HJan

Garnier+31 70 44

63070j.a;[email protected]

Fixed:Consumer:VT:PH

Thorwald vanOverveld

+31 6 22 481304

[email protected]

Fixed:ConsumerSales

no name10

Fixed:Consumer

Marketingno name11

Fixed:KPN.com

no name12

Fixed:XS4ALL

no name13

Fixed:Broadband

no name8

Fixed:Planet MediaGroup

no name9

Carrier ServicesJoost Farwerck

WholesaleVoice

ServicesNational

no name14

WholesaleVoice

ServicesInternationalno name15

Local LoopServices

no name16

KPNwholesale

no name17

OperationsFixed Net

(OVN)Cees

Bosman

Service UnitServic

eAne

Mulder

Service UnitTechnicalBuildings

Ingeborg

Reitsma

Operators

Operator

Carrier

Services

Adriaan deHaasOpera

torTransmission

Services

HanWijns

Operator

Acces

Services

Herman

Waijers

Operator

VoiceServic

esPaul

Hendriks

Internet

Operator &Plane

tTechnologi

esTomPoelhekken

FixedNet

ArchitecturePaulin

eWens

ing

Serveice

UnitIT

Hanneke

Hoogweg

Developme

ntAndreRutte

n+3130658830

[email protected]

ApplicationSupport:AS

S&OBerryAlbersen

HRMEvertMarte

ns

ApplicationSupport:

LEV/S&I

Henkvan

Beek

ApplicationSupport:

VM&PC

LouisVermeulen

ApplicationSupport:CM

Marijke v.d.WielBusin

essContr

olNico

Groenen

Service

Manageme

ntRobvan

Asperen

r.v.a.vanasperen

@kpn.com

ApplicationSupport: M& CCSach

aHeuts

-Zwartkruis

HRM,Intern

alCommunicationRob

Janse

FinancialsWout

erJanss

en

Business ManagementBusiness ManagementFixed IFixed I

Bert Bijvank XFA Manager

Hans JansenHuman

Resource Manager

Enno ter KeurstCustomer

Solution Architect

Jankees BlokDirecteur

Marc Bosveld - Michaël DennebosLydia Litteel - Klaas de Lange

Richard Leupen - Henny van RijnRoelof Kiers - Linda MaasbommelMarten Molenbuur- Marvin Mac

Nack ^)Bea Siemerink

Customer Operations Managers

Sieger VolkersClient Operations Director

Business Business ManagementManagement

MobileMobile

Gerard van Alst ^)

Jos TheunissenHenk Kroon a.i.

Customer Operations Managers

Nico KruitClient Operations

Director

Business Business ManagementManagementCorporate / Corporate /

ServicesServicesLute Klein

Corry van der Schoor

Bart te WinkelJaap van der

ZwanCustomer Operations Managers

Johan DuimClient Operations

Director

Henk WildeboerCU Controller

PU-EIS

11 3 4

^) kort termijn inhuurn teamformatie

Customer Unit KPNCustomer Unit KPN06 July 200406 July 2004

Cees WestersContinuous

Improvement Manager

MO

Ron QuintProgram Manager

Annemarie Eleveld

Secretary

Egbert van de Pas

Program Manager

Inez van den Burg

Secretary

Supplier account organisation is organised to fend of KPN’s need of communication


``

ILM Evaluation Project 1Mini AssessmentDuration: 4 weeks

SUN SLA Adjustment Project Full Assessment

Duration: 13 weeksSUN

Value Proposition

SUN and EMCPositioning ILM

strategy

CIO Board

Timelines

July 2004

January 2005

March 2005

September 2005

Go / NoGo

ILM Evaluation Project 2Mini AssessmentDuration: 4 weeks

EMC

Program 1: Server Consolidation

Program 2: Storage Consolidation

Program 3: Database Consolidation

Milestone 1: CIO Support for ILM

Milestone 2: Vendor Selection


Storage Focus Areas

• Opportunities are classified according to benefits and effort for realization

1. Storage allocation for application in development2. Storage tier for application in development3. KPN Capacity Planning Functions4. IT Reporting Functions5. Storage allocation for NIM6. Demand Management Functions7. Contract Management Functions8. DR Strategies for business/applications9. DR Testing Schedules10. DR Organisation within IT11. Connectivity and logistics for DR12. Archiving Plans13. Archiving/Duplication on MCCS Peripheral Applications14. Archiving on OFT15. Archiving purge in MCCS 16. Archiving in Geoversum17. Top 10 applications analysis18. OFT downgrade and reduce duplicates19. PIO downgrade20. Cubes/datamart inputs on lower tier or archive storage 21. SCAN downgrade22. Backup reduction on SCAN23. OFT quality environments reduction24. OFT Document management architecture25. TRACE data migration26. Storage SLA adjustment

Capacity PlanningDemand Management

Contract Management

Disaster Recovery

The opportunities identified in this analysis have been categorized and grouped into initiatives topics

ArchivingData classification

Downgrade

Backup

MiscellaneousService Level

High

Low

Medium

Difficult Easy

Impo

rtan

ce o

f ben

efits

Effort for benefits realization

1

2

34

5

67

8

91011

12

1314

15

16

17

18

19

20

21

22

23

24

25

26

Focus Areas


Go/NoGo Criteria• Pragmatic project proposal• Self financing approach• Ability to succeed• Cultural match (Dutch speaking experts)• Independency from IT Supplier• Experience


Agenda• Background• Timelines• Project approach• Project results/lessons learned• Next steps• Questions


Project Assignment

What KPN

Needs

What KPN

Wants

What KPNGets

Step 2. Capacity check:Does KPN get more than it

needs or wants?

Step 1. Consistency check:Are the current service levels in

line with KPN’s real needs?

Step 3. Health check:Does KPN want more/less

than it needs or gets?

Step 4. Continuity check:How does KPN prevent

inefficiencies from occuring in the future?

2

1

3

4


Approach—SRO-Concept• The SRO-concept shows three focus areas of the storage control process:

• In this project SUN focused mainly on the Standardization of SLAs taking into account the main objective; “to come with concrete recommendations that lead to savings that can be realized on a short-term basis”

Standardization of SLA• Identification of Quick- Wins on short term basis,

focus is on:• Tariff Alignment• Right Tiering within the SLA• Reduction of Backup-cycles and/or retention period

Rationalization of SLAs• Identification of improvements and/or savings for

individual or multiple SLAs on a mid-term basis with focus on:

• Right Tiering (use of data classification tools)• Right back-up cycle for right environment• Storage SLA management

Optimalization • Identification of to get optimal control about the used storage and costs for the long-term period with focus on:

• Introduce True Storage Utility• Introduce Service Resource Management• Make use of full automated ILM

Time (months)

Leve

l of

con

trol

Low

High

2420160 4 8 12

Standardization

Rationalization

Optimalization

Focus SLA-adjustment project

1

2

3


Approach—Project StepsThe following high-level process is defined for the project (Focus is on Standardization):

Week 1–4Step 0:Mobilization

Step 1: Creation of Framework +Questionnaire Form

Step 3a:

In depth analysis + Recommendations per batch

Focus on the ‘Standardization’ phase of SRO-concept

Step 4: End Report

High Potentials – SLAs

Step 3b: Validation of the findings and recommendations

By:

• Interviews

• Analysis

Batch Report ‘Recommendations for savings based upon:’

• Tariff alignment• Back-up• Right Tiering

Realizing cost savings by lineorg.

Week 5–8 Week 9–12 Week 13–16

Step 2: Filtering SLAs per batchInput:• SLA - documents• KPN project information• Returned Questionnaires


Results: SLA Classification• 11 SLAs identified with medium to high savings potential• 5 SLAs identified as SLAs with savings potential but limited storage information• 12 SLAs identified with little savings potential but not enough information• 38 SLAs identified with no savings potential and very little storage information

Infrastructure/Storage Detail information present in SLAHigh

Hoo

g

Low

Pote

ntia

l for

sav

ings

Low

Hig

h

13b

9

5

6 73a 3c

2

4

8

1814

13

16

10 12

17 1511

22

232930

2524 26

27 19

2120

2835 33

36

37

3139 34

38

41

32

52 5153 58 56

54

64

5960

62

55

5761

634543

484749

444642

50

16 SLAs in scope for more detailed analysis


Savings: 7.750,-

TimeSavings: 12.000,-

Savings: 5.500,-

First ClassCap:1000 GB

Price: € 5,00 GB/Month

Backup Cap: 7000GB

Annual Cost:

FC Storage: € 60.000,-

Backup: € 21000

Tariff AlignmentFirst Class

Storage according to

pricelist: €5,00

Current Situation

SLA Based on First Class

Storage

Cap:1000 GBFirst Class

Price: E 4,00

GB/Month

Annual Cost:48.000,-

True UtilityCapacity is over

dimensioned3 months batch production 1000

GB

Other 9 months regular 750 GB

Overall capacity per month : 875

GB

ILM & SRM

Based on ILM-data classification:

75% Active, 25 % Inactive Data

Move 25 % to Archive Tier

Cap:875 GBBusiness

Class

Price: E 3,00 GB/Month




Savings: 29.500,-

Standardisation Rationalisation Optimalisation

Savi

ngs

Stor

age

Cap

acity

(GB

)

Back-Up

Adjust Back-up Scheme and

Ratio.

Old backup Cap:7000 GB

New backup Cap:6000 /4000 GB

E 0,25 GB/mnth

Annual Cost:18.000-

Savings: 24.000,-

Savings: 3.000,-

Savings: 27.000,-

Example: SLA – potential savings

Saving

opportunities

Right Tiering

No First Class but Business Class Storage is according to requirements

sufficient.

Cap:1000 GBBusiness

Class



Savings: 12.000,-

Savings: 12.000,-

EXAMPLE


Results: Storage Information in SLAs Storage components are not always specified in the SLA• Appr. 30% of the SLAs in scope contain information regarding storage costs

• Only 12 SLAs contained detailed storage information ( e.g., capacity and prices)• Appr. 30% of the SLAs in scope contains information about Back-up costs

• Only 12 SLAs had detailed back-up information

43 SLAs no detailed storage information

12 SLAs

With detailed storage capacity & cost information

21 SLAs

With storage capacity and cost information

Total: 64 SLAs

43 SLAs no detailed back-up information

12 SLAs

With detailed back-up capacity & cost information

21 SLAs

With back-up capacity and cost information

Total: 64 SLAs

Storage capacity and financial information in SLAs Back-up capacity and financial information in SLAs


Lessons Learned• Project findings:

• Storage information or KPIs in SLAs proved to be limited• Storage reporting is not adequate for managing the SLA• Backup schedules are not matched with requirements

• Project approach• Self-financing approach helps to get top level commitment • IT supplier is not the logical party to execute this type of projects

• Project execution• Storage management is rationalized: from 53 (!) different service levels

down to 6• SUN project team took a pragmatic and result-oriented way of working,

resulting in a smooth project with substantial financial benefits


Next Steps To become more in control over the storage environment and related storage costs, the following steps were recommended by SUN:

Apr 2006

Phase 1Storage SLA-adjustment Project

Is KPN in Control ?

May 2005 Aug 2005 Okt 2005 Jan 2006

Phase 2 Define Storage Performance

Indicators

How to get in control ? Phase 3

Supplier SLA validation Data classification

How to stay in control ?

Phase 4ILM Realization Project.

Storage Optimalization andRationalization

Phase 5Train a dedicated

Storage SLA expert Team

Time T+nT= 0

Leve

l of

sto

rage

con

trol

Low

High

Standardization

Rationalization

Optimalization

Current project

3

2

2

3

5

4

5

14

1


How to Get in Control: Tiering Model


Commercial

Functional

Content

1a Framework of the ‘SLA House’

1b Collect all SLA Material

2 Build the ‘HTS SLA House’

CommercialsValue Proposition

3 Accept & Launch

Phased approach

HTS SLA

Consistent Horizontal Tiered Storage Model

HTS SLA Toolkit

Reporting

Price Scheme + Prices

Migration and ChangesTiering Service Description

High-Level Tiering

Framework Contract

HTS.SLA(Mantel Service Level Agreement.doc)

Selectielijst SLA’s(welke SLA’s als 1ste migreren,Beschikbaar na 25 nov)

Migratie & Change process(Addendum E.doc)

Tier 1Mission Critical

Tier 2Business Critical

Tier 3Productivity Important

Tier 4Tape

Tier 5Compliancy Archive

Prijslijst(beschikbaar 25nov)Highlevel tiering overview (ILM Tiers of Storage1_5.ppt)

Calculatieschema(Addendum C & Calculatiemodel gewogen rollend gemiddelde v0.6.xls)

= Supplier document

= KPN document

Rapportage(Addendum D.doc)

How to Get in Control: A Consistent Horizontal Tiered Storage Model and an SLA Toolkit


How to Stay in Control: Capacity Management

Strategyand

PlanningContract

ManagersPurchasingManagers

IT-OPSManagement

BusinessOwners

CapacityManager

ProjectManagers

AtosProject

Management

AtosServiceDelivery

AtosSales & Bid

Management

AtosArchitectureManagement


Conclusion1. Results of Storage SLA adjustment:

• SLAs are standardized; Tiered storage is implemented• Storage is perceived and managed as a cost driver• Storage is aligned to meet the business needs

2. Horizontal Tiered Storage SLA is set up3. Capacity management is implemented4. KPN is now prepared to continue this road and

start implementing ILM

Jeroen MeijerSenior IT Project Manager

KPN

+31 70 44 66604

[email protected]

www.kpn.com

JEROEN MEIJER, SENIOR IT PROJECT MANAGER, KPNALIGN STORAGE SLAS TO BUSINESS NEEDS AND REDUCE STORAGE COSTOctober 12, 2006

presentation sun forum las vegas 12 oct 2006

Documents

storage environment

storage slas

raw storage

storage cost

storage slaadjustment

infrastructure storage

storage area networks

senior project managerat