William Giard, Principal Engineer Intel Corporation

Intel Confidential – For Use Under NDA Legal Notices & Disclaimers This document contains information on products, services and/or processes in development. All information provided here is subject to change without notice. Contact your Intel representative to obtain the latest forecast, schedule, specifications and roadmaps.

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Cost reduction scenarios described are intended as examples of how a given Intel-based product, in the specified circumstances and configurations, may affect future costs and provide cost savings. Circumstances will vary. Intel does not guarantee any costs or cost reduction.

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Intel, the Intel logo, , Xeon, Xeon Phi, 3D Xpoint, Iris Pro and others are trademarks of Intel Corporation in the U.S. and/or other countries. *Other names and brands may be claimed as the property of others.

© 2017 Intel Corporation. 2 Industry Trends Influencing Enterprise IT enables other business priorities

The “Cloud” is real Cyber security threats DevOps & Agile driving Open standards across Multi-Platform: OS, (and disruptive) TTM, quality software browser, mobile devices

Internet of Things Social technologies are HyperScale focus is User Experience > Value and depth of driving new business changing user growing Functionality or Cost Analytics is increasing models interactions

*Other names and brands may be claimed as the property of others.

3 Top Challenges for Enterprise IT 95% of Enterprises Use Cloud Technology Today1

Develop and test new capabilities with Reduce costs of IT resources with better Enable business to innovate with velocity faster time to market and value automation and orchestration while remaining safe and protected

Extracting insight from data fast enough Lower infrastructure investment and Ensure data resiliency with availability of to matter and prove ROI increase utilization of compute, network, backup and recovery resources and storage Respond automatically and immediately Remain in control of all data with to spikes and lulls in demand multilayered security and encryption

1. 2017 Right Scale annual State of the Cloud Report n=1060 4

The future is HybridCloud

Cloud Management & Orchestration

Public Hybrid private Off prem or multi-tenant Mix of Public/Private On Prem or single tenant data center Workloads in both architectures Data center

Intel Confidential – For Use Under NDA 6 The Move to Hybrid Cloud Considering Hybrid cloud Enterprise Cloud Adoption

60% 70% Multi-cloud Strategy 82%

A Single Public Cloud 10%

of IT DMs see hybrid of US organizations are A Single Private Cloud 5% cloud as the considering a hybrid culmination of their cloud strategy in the cloud strategy.1 2 next 24 months. 0% 20% 40% 60% 80% 100%

2016 RightScale annual State of the Cloud Report 1 Study by Rackspace and Vanson Bourne, blog.rackspace.com/hybrid-cloud-is-the-future-for-60-percent-of-uk-and-us-enterprises-finds-rackspace-study 2 The International Data Corporation (IDC) multiclient study, CloudView 2016

7 Hybrid Architecture Benefits

Reduced Time to Market and Value

Lower Costs

Improved Scalability and Resiliency

Higher Developer Satisfaction

Improved IT infrastructure Management and Flexibility

8 Public? Private? Hybrid? What is the optimal deployment strategy ... Finding the Optimal Cloud...

It’s a Balancing Act Workload Placement Decision Factors

Business Business Technical Ecosystem Considerations Considerations Considerations Ecosystem Agility/Time to Performance Mature SaaS market Integration offerings Technical Legal/Regulatory Data Size CSP services Total cost of Security Cloud expertise ownership accessibility

Source: Intel Internal. DCG Q42016

10 BUSN Business Considerations for Application attributes

Public Cloud Private Cloud

• Deploy new capabilities without migrating • Minimizes initial CapEx expenditure Agility/TTM • Industry leading SaaS solution or service available applications

• Major regulations or compliance requirements • Fewer regulations or compliance requirements to consider Compliance, Legal, • Regulatory restrictions include PII or other sensitive information • Limited data sovereignty, compliance solutions available and Asset Control • Organization trusts third parties to manage data • Requires absolute business data and IP control

• Global customer base Global Reach and • Country restrictions and/or data sovereignty • Customers in remote locations End-User Location • Established multi-geo, private data centers

• Flexible service-level agreements Service-Level • Restrictive service-level agreements Agreement • Willing to accept service latency and downtime risks • Risk-adverse to service-level failures Flexibility

Source: Intel Internal DCG Q42016 11 Top 4 Most Common App Workload TECH Considerations As noted by customers and experts as driving their workload plans:

• Low to moderate data volumes • Unpredictable and dynamic • Workloads have fewer integrations • Insufficient in-house technical (CRM, web servers, search, and workloads with dependent systems security expertise others) with frequent access

• Extensive computing power • CSP has specific security • Dependent systems have open • Large data with infrequent access required at irregular intervals capability (DoD SRG1, NIST, APIs (backup/disaster recovery) ITAR) Public Cloud • New or experimental capabilities, • Dependent systems also reside on • Significant external data consumed prototypes public cloud by workload

• Latency-sensitive applications • Processes include high-risk data • Dependent systems do not have • Significant data volume (financial, open APIs and require complex industrial, and others) • I/O or computationally intensive • Private/ (IP, PII, PHI) integrations workloads • Data must reside close to the • Dependent systems are not on a application Private Cloud • Need for visible performance public cloud, requiring significant monitoring in IT’s direct control WAN traffic increase

Source: Intel Internal DCG Q42016 12

Intel Affinity Model for Workload Placement Attribute Score Attribute

Global Scale, Latency Sensitive Apps, Mature SaaS Solutions Data Location Critical Variability of Demand Available

Off-Premises On-Premises

Source: Intel Internal DCG Q42016 *Traditional workloads scored based on the 4 attributes and new workloads scored based on forecasted workload weight

16 Ecosystem Considerations ECO

Source: Intel Internal DCG Q42016

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Intel IT: Two different decisions

Public Cloud SaaS Solution

Private Cloud Application Development

16 Intel IT: HR Case Study Business Strategy Comprehended All Workload Attributes

Workload: Employee Expense & Travel Reimbursement

Human Resources portfolio – Decision Maker  IT Employee Mobility Product Line Owner – Mandate  None: IBM* exited expense form service – Business Case  New functionality enablement such as mobile, SaaS and travel/expense solution consolidation efficiencies Outcome . 4 years in production, managing $450M/year of expenses with 390k expense reports/year, and very low incident volume . Eliminated need for employees to use paper receipts . Automation of fraud detection and payment duplication (with ~2.5%/year return to Intel)

*Other names and brands may be claimed as the property of others. *Cost savings are based on Intel’s experience. Intel does not guarantee or warrant others will obtain similar results.

17 The Role of the Developer / LOB is Increasing Developers can either accelerate or inhibit cloud adoption

Technology Technology Maturity Emerging: Mature: Emerging, advanced techniques More influence Less Influence . IOT . Collaboration . ML/DL/AI . Email . Cloud-oriented app Application architecture Highly custom, new, or end of life SaaS

Organization Product Lifecycle Tech-led biz model and startup

Users Seniority Developer Influence

More influence in the org Initiate Grow Mature Decline

18 Enabling the Business through Cloud Technologies Aligning Developer and Enterprise IT Needs thru IaaS, PaaS, and DBaaS Agility – Time to Market for our customers! . App & creation/configuration goes from weeks to minutes . Developers save hours during each release with workflow automation Efficiency . Increased Compute Density (Single Tenant vs. Multi Tenant) . Lower Support Costs – OS/DB patching & compliance, fewer personnel required for supporting infrastructure Security . Apps and Data are centralized and do not span thousands of VMs . Platform is pre-approved by Security, streamlined FTDR process for most applications landing . Platform infrastructure is secured and managed by IT professionals

19 Intel IT’s Self-Service Cloud Hosting Options

Intel IT’s Cloud App Platform • Fastest way to host apps – no servers! • Abstracted infrastructure supported by IT

Intel IT’s Cloud Database • Easiest way to get a database & make your data available • IT Supports and tunes your database

Intel IT’s Cloud Compute • For apps needing control over the entire application stack • You support your entire stack or make special arrangements

Self-Service is critical for accelerating Application Development

20 Day in the Life of a Developer Environment set up and maintenance can add weeks to a project

Repeat for every Dev Test Environment Prod

Update Environment Local Dev Test Prod Get Resources Set Up Promote Clone Compute, Network, Environment Environment Storage Binaries Team Build Update Promote Web App & Test Database Update Services Binaries Services CI / CD Debug Team Build & Local Environment Test Traditional CI / CD VMs Build Build Write Write and and Code Code Test Test

Start Start Release Release Project Project

21 21 PaaS on OpenStack

Additional Services

User Interface & Vulnerability Monitoring Single Sign On API Scanning

Application Platform Services Platform (Open Source PaaS)

Analytics Messaging Data Web

Cloud Operating Environment Infrastructure as a Service (Open Source – OpenStack*) Dashboard Orchestration Identity Horizon* Heat* Keystone*

Compute OS Block Storage Object Storage Network Self-Service Nova* Glance* Cinder* Swift* Neutron* Developer Portal

Compute Compute Network

22 The Private Cloud Advantage Our experience within Intel IT

Private vs. Public Cost Savings Internal Private Cloud 1.2 . On premises private cloud 17% Private Cloud IaaS Public Cloud 1 . Self-Service 29%

. Virtual Machines (VMs) 16% 0.8 . (PaaS) 8%

35% 14% . Database as a Service (DBaaS) 0.6 6% 5% 5% Outcome 0.4 . 2X savings* from public 33% 2X Savings 2% 39% . Managing 1900 custom apps in PaaS + 0.2 2325 in DBaaS since Jan 2015 0 . ~ 60% cost savings* running apps on 2010 2011 2012 2013 2014 2015 2016 est. PaaS/DBaaS vs. IaaS

*Cost savings are based on Intel’s experience. Intel does not guarantee or warrant others will obtain similar results.

23

Stages of Data Center Transformation Modernization Accelerates Value

Traditional Compute Automated Analytics/Insights Data Center Virtualization Orchestration/SDI

Greater Efficiency Greater Agility Greater Insight and IT Innovation

25 Hybrid Deployment Considerations

• Start with Cloud Native (web / application servers) and Software Defined Storage • Integrate SDI with existing traditional deployments

Traditional Private SDI / Cloud Public / SaaS

App App Web App File App App SDS

Web App Gateway DB DB Web App DB DB DB

“Cloud Native”

26 98% of The Cloud Runs on Intel* Optimized Solutions Powered by Intel® Technologies Compute Storage Network Intel® Xeon® processor family Intel® architecture-based Intel® Ethernet storage and solid state drives

Intel® Xeon® Security Solid State Drives Storage Accelerators Intel® Architecture Network Acceleration Hyper-Threading Intel® TXT & SoCs Intel® Virtualization Communications Turbo Boost 2.0 Intel® AES-NI Technologies (Intel® VT) chipset Intel® AVX 2.0 Intel® Secure Key + RDSEED Intel® Ethernet CNAs Intel® Supervisor Mode Intel® VT-x Access Prevention (SMAP) DDR4 Memory Speed

Ecosystem Enabling Software Ecosystem Enabling Software Ecosystem Enabling Software Open Attestation SDK Intel® Storage Builders Storage acceleration Intel® QuickAssist APIs Intel® Data Center libraries (ISA-L) Intel® Cloud Integrated Software Data Plane Development Manager: KVM gateway ® Builders Vendors Intel CAS - Cache Kit Intel® Node Manager Acceleration Software Intel® Service Assurance Open standards/ open Intel® Open Network Administrator source contributions Intel® Network Builders Delivering Optimal TCO, Performance, and Efficiency

*Other names and brands may be claimed as the property of others. 27 Summary Key Messages . Cloud technologies accelerate the business . Focus on both infrastructure & application transformation . Certain application & workloads run best on premises . The future is hybrid cloud

Next Steps • Engage with Intel at itcenter.intel.com • Learn more about Intel IT best practices at www.intel.com/it • Learn about cloud solutions and partners at cloudbuilders.intel.com

28 Questions? Intel Resources Bill Giard - @BillGiard

Whitepapers

Workload Placement Whitepaper Visit: http://www.cps.intel.com/content/www/us/en/cloud-computing/enterprise-cloud- computing/optimal-workload-placement-for-public-hybrid-and-private-clouds-white-paper.html

Technical Deep Dive / Demo

Technical deep dive on application deployment, orchestration, containers, SDN, NFV Onsite tours, demo with Intel staff onsite or on campus with Intel IT

Business Alignment with Intel Partnerships for Enterprise Cloud Readiness & Assessment Intel, along with our partnerships, can help enterprises transition from data center to a hybrid cloud model to increase business process and accelerate growth

29 30 Hybrid Architecture For Transformation

Reduced time to market and value Access to new revenue opportunities HYBRID Improved scalability and resiliency Higher developer satisfaction

Lower costs – storage and compute HYBRID Improved IT infrastructure management and flexibility Better IT cost management overall

Improved disaster recovery and/or business continuity HYBRID Improved security & compliance

31