Cedar Day 2018 - Cloud IaaS - Ken MacMahon

Gain insights that can help you on your journey to Cloud generally and from Oracle On-Premise ERP to Cloud specifically.

1. Thinking of moving your On-Premise System to the Cloud? A real world case study. Ken MacMahon , Head of Solutions Architecture, Version 1

2. An Introduction to Version 1 “Flavours of Cloud” – Options for PSFT Customers Cloud Deployment Options – Pros and Cons A Real World Case Study – Irish Life Cloud Upgrade / Migration – Project Phases Headaches we had to solve… Don’t make the same mistakes!! See how you can apply this to your organisation Reference for you to move On-Premise Systems to Cloud Q&A What would I like you to take away??     

3. Our Difference: Strength in Balance Customer Success Making a real difference through long-term, outcome focused relationships – success that fulfils our people and fuels our growth. Empowered People Deliberately selecting, empowering and trusting people who are wired to deliver customer success - an empowerment that drives customer loyalty and organisational strength. Strong Organisation A high-performing, financially strong organisation of the highest integrity – a strength that empowers our people and delivers customer success.

4. Version 1 at a Glance €100M £86M 98% CUSTOMER RETENTION 3 LEADING TECHNOLOGY PARTNERS 1000+ EMPLOYEES IN UK AND IRELAND #1 ORACLE PARTNER Voted by UK OUG users 400 CUSTOMERS Top 10 WORKPLACES IN EUROPE 5 UK ACQUISITIONS 20 YEARS PROVING VALUE OF I.T.

5. Trusted to Deliver Customer Success

6. Paths to Cloud for Peoplesoft Customers Start with DEV/TEST Add or Migrate your DR on Cloud Place your “Reporting” Emv . On Cloud Shift your PROD to Cloud when ready Adaptive Intelligent Apps Extend with HCM & CX Cloud Extend with OTM, GTM PBCS Migrate by Pillar Migrate by Product Line or BU Migrate by Country/Region Avoid complex integration scenarios

7. All the Tiers of Cloud

8. Characteristics of Solution Options Oracle On-Premise (EBS/JDE/PSFT) Oracle Cloud SaaS Mature Product and Technology Shares many Product and Technology components Complete Functional Footprint Less Complete Functional Footprint Can be hosted and supported ‘On-Premise’ Primarily delivered as SaaS Large Global Install Base Less Global Reference 3 rd party /In-house Support and Maintenance Less 3 rd Party/In-House Support/Maintenance Customisable Configurable No direct upgrade path to Cloud ERP Future direction for Oracle Innovative Commercial Terms Rich Product set and Features Zero Technical configuration (SaaS) No more upgrades

9. All the Tiers of Cloud

10. Leverage the Cloud TODAY Database Java DocCS Process Integration Big Data Business Intelligence Mobile SaaS Applications On-Premise PaaS/IaaS

11. Comparing-PSFT - On-Premise vs Cloud (IaaS)

12. Pros and Cons – On-Premise Pros Cons Full control of infrastructure remains with customer’s IT teams. More expensive to run and operate on like-for-like comparison considering hosting costs, storage, power, cooling etc. Ability to migrate to new or alternate hardware platforms is completely in the control of customer. Less , if any, ability to ramp-up or down, spend on infrastructure to meet demands. Ability to fully comply with internal controls and regulatory requirements. Underlying infrastructure for applications e.g. EBS/JDE/PSFT must be built and installed from the ground up. Greater ability to sweat existing assets for which there has already been investment made. Continuous cycle of ‘Hardware Refreshes’ Complete flexibility in O/S versions/flavors, levels of patching etc. that can be applied to the infrastructure.

13. Pros and Cons – Cloud IaaS/PaaS Pros Cons Ability to scale-up / down Compute resources to suit needs as required. Dependent on 3 rd party provider for provision of Compute/Infrastructure. No longer any requirement to complete ‘hardware refreshes’. Limited to T&C and SLA of Cloud provider. Reduced IT administration costs. Can require approvals, for legislative or others reasons, for hosting of data/services in other geographies. Removes costs of infrastructure hosting e.g. DCs, AirCon , Lighting etc. Can be difficult to implement in an organization with no Cloud policy or strategy. Shapes/configurations provided to suit particular workloads by vendors e.g. EBS/JDE/PSFT from Oracle. Care is required when licencing software in Cloud on BYOL models. Non-production e.g. Development environments, can be run on an On-Demand/hourly model. Still a shared responsibility model which needs to be understood. (See later slide) Scale and competition means low cost of Cloud compute resources for end customers.

14. But which one Public Cloud??

15. Track Record in Enterprise Technology Track record Position in Public Cloud “Cloud-First” Thinking Data Centre locations Security and Data Protection Cloud Technical Offering Integration across offerings License Complexity & Compliance Certification and Support for Oracle Workloads Cost effectiveness* on Indicative Workload 1 st 3 rd 2 nd AMAZON WEB SERVICES AREA ORACLE CLOUD AMAZON WEB SERVICES MICROSOFT AZURE

16. Helping people build better futures Profile: Ireland’s leading life and pensions group 30% + Market Share Risk protection, pension, savings & investment products for both the individual and group markets. Profile: Over 628,000 customers Provides group retirement and risk products to employer and affinity groups Insures 1 in 6 private sector employees.

17. Journey to the Oracle Cloud Journey to the Oracle Cloud Like most Financial Services company’s they take a conservative risk adverse approach when it comes to adopting new technology. In 2016 Irish Life made “Platform decisions” a core pillar of their IT strategy. Irish Life did this to ensure the On-Premise Versus Cloud debate took place each time they looked to introduce, replace or update an IT system So why did Irish Life choose to put Oracle e-Business Suite in the Cloud? It came down to three primary factors Total cost of ownership over a 5+ year period System vitality Supportability, scalability and flexibility

18. The Project Brief Oracle e-Business Suite: 11.5.10.2/10g -> 12.2.5/12c Implement HTTPS and sFTP for all integrations and Connections Encrypt all data at rest using Transparent Data Encryption Re-platform Decision: HP-UX to …..??? Help Irish Life make the best “Platform Decision”

19. Two Key Phases – In 1 Project Oracle Upgrade Feasibility Assessment + Oracle EBS Upgrade and Migration to Oracle Cloud IaaS

20. Project Timeline Oct. Nov. Dec. Jan. Feb. May Sept. Oracle Upgrade Feasibility Decision to Proceed with upgrade Upgrade Project Start Upgrade OATM/10g On-Premise Go-Live Oracle Cloud (IaaS) 2016 2017

21. Why did we consider Cloud IaaS? Offers more options as part of the upgrade Stand-up development environments quickly Cost-effective to deploy and support Reduce Cost and Improve agility Move our Maintenance/Support closer to a SaaS model for EBS Ability to scale quickly and easily A. As part of the Upgrade B. As the business grows

22. Why Oracle Cloud vs Others? Deep knowledge of Oracle’s developing IaaS solution Potential to use a mix of Oracle PaaS and IaaS Wanted clarity on Licencing, Support and Certification Ability to Leverage Oracle Cloud Automation Tools* Wanted support from a small number of enterprise vendors Saw that with Version 1 + Oracle = Enterprise Cloud with Delivery

23. Reference Architecture Candidate Selection Deployment Architecture Automation Tools What was our approach? Managed Services

24. Phase 1 Oracle Upgrade Feasibility Assessment

25. Feasibility Assessment Assess Oracle Cloud Reference Architecture (OCRA) vs Requirements Deployment architecture for Oracle e-Business Suite (R12) on Oracle Cloud (IaaS) Detailed Upgrade and Migration for R12 to Oracle Cloud (IaaS) Detailed Comparative Costs of Oracle Cloud vs On-Premise Considering both Project & Support Costs Internal and External Costs Hardware. OS, Licensing and 3 rd Party Support Costs

26. Business Support Services Contracts & Agreements Services Subscriptions, Orders & Customer Services Account, Billing & Metering Services Compliance Services (Audit, Reporting & Policies) Management & Operations Services Information Security Risk & Compliance Cloud Security Services Identity & Authorisation Data Protection, (Data Centers, Hosting locations, Regions & Zones) Corporate Connectivity Threat & Vulnerability Management Physical Resources Compute Network Storage Cloud Architecture Principles Vendor Reference & Deployment Architecture Models Enterprise Cloud Customers Secure Connection Service Catalogue IaaS PaaS SaaS Product Catalogue Product & Service Catalogue Change & Configuration Management Cloud Broker & Aggregated Services Deployment Services Interoperability Services Capacity & Performance Services Service Level Agreement (Service Levels, Service Scaling and Orchestration & Availability and Continuity) Service Lifecycle Third Party, Cloud Broker Management & Monitoring For Irish Life this meant in effect 1000+ questions: Version 1 & Oracle Cloud offering ICOFR, ISO , etc. Compliance, Physical and Environment Security, Organisational Security, Cyber – SIEM, Intrusion Protection etc. Ensure there were no gaps Resolve through agreed terms/clauses

27. The Feasibility Report detailed the following; The four areas of the Reference Architecture and the requirements thereof. The priority for each capability specific to the Customer’s requirements. Assessment of the Oracle Cloud offering fit for each capability. Findings - OCRA vs Requirements Analysis Findings   Customer Priority     Oracle Cloud Fit     Low Medium High   12 9 38   6 1 14   3

28. The Feasibility Report detailed the following; Key integrations that will be required between Oracle e-Business Suite and On-Premise Applications. Used to assess Volume of Data Transfers/Latency. Requirements for Oracle Fast Connect. VPN requirements / solution Corente Key areas for Testing – Performance, Security and Bandwidth requirements. Findings – Cloud Candidate Selection

29. Customer - Deployment Architecture Oracle R12 high-level design for the Deployment Architecture. Report provided information on the key features of the proposed architecture in greater detail.

30. Project Cost Comparison: Cloud vs On-Premise

31. On-Going Cost Comparison: Cloud vs On-Premise (BAU)

32. Solution Cloud End State – with MSP ‘Applications Unlimited’ ‘as a Service’ Managed Oracle Cloud Features Full ITIL & ISO27001 Service – Complete Application Support, Patching & Upgrades Deployed on Oracle Cloud Full SLA Integration Data Fixes Queries Oracle IaaS – Provided by Oracle Oracle PaaS – Oracle and Version 1 Oracle e-Business Suite ‘Quasi- SaaS’ –Version 1

33. Oracle EBS Upgrade and Migration to Oracle Cloud IaaS Phase 2

34. Project Timeline Oct. Nov. Dec. Jan. Feb. May Sept. Oracle Upgrade Feasibility Upgrade Project Start Upgrade OATM/10g On-Premise Go-Live Oracle Cloud (IaaS) 2016 2017

35. Cloud Infrastructure How did we leverage ‘the power of Cloud’? Bursting for Upgrades Stood up early Vision instances to allow CEMLI work Reduced Dependency on Irish Life Internal IT Teams

36. What the DBAs Said… Project hours saved during installation. The EBS server came pre-configured and the process of building & maintaining a compute instance in the cloud is not complicated. But remember… ..you need to apply your own Hardening / CIS Standards Scalability. Ability to burst and scale up when required. Key requirement when doing an complex upgrade But remember… …you can only burst by 100% of your Non-Metered Capacity

37. What the Funcs /Techs said… Early Start on CEMLI Upgrade: Used R12.2 Vision instances for Initial CEMLI Upgrade User Training/Familiarisation for 12.2: Stood up cloud Vision Instances for Training/KT

38. What the DBAs Said… Be prepared for SQL tuning. SQL jobs that took 10 minutes to run on premise took twice as long to run in the cloud. Changing the “array size” in SQL*Plus the number of roundtrips were reduced and execution times were reduced, e.g.  from 10 mins to 30 seconds.  Be prepared for Network tuning A reduced MTU in the on-premise internet router and servers led to additional network overhead for SQL*Net roundtrips to the client. Packets being sent from the cloud in 1500 byte sizes needed to be resized before going through the customer network. In addition, certain on-premise servers (e.g. on HP) could not reduce the size of the incoming MTU packets so the MTU in the cloud needed to be reduced to the lowest MTU size setting in use in the network.

39. What the Infrastructure and Network guys said. Standard Corente VPN Seclists Care should be taken when using these. Some 'internal' lists have inbound policy 'permit' as standard leaving access from public internet Make sure you have Network Expertise in team: This type of project has a higher dependency on external IT resources to quickly resolve connectivity issues. These resources need to be secured upfront as part of planning process

40. Lessons Learned Technical problems are easy and solvable – cultural and other barriers are the tricky ones. Don’t just do it as a cloud project – mind the core purpose of your project i.e. an EBS Upgrade in a dynamic and functioning business Stakeholder management – is much more complex than on a standard project. Use tools like “ force field analysis” to continually assess where your project stands Operational Acceptance and service operations are key SIT is the key phase. Load test early and often. You will most likely have under estimated the effort required to close off the non IS elements Really commit to it because you will be given opportunities to walk away from the Cloud element

41. Why Version 1 ? Industry & Customer Knowledge Simplicity Cloud Knowledge Competitive Insight Oracle Sales Understanding Reputable Oracle ERP Practice Move Install Base to Cloud Best SAM Business

42. Thank you for listening Any Questions?