Deloitte's View on Oracle Cloud VMware Solution - Oracle Cloud World 2022
Transcript
(bright music) >> Welcome to our continued coverage of Oracle Cloud World. My apologies to Larry. He is literally delivering the keynote right now talking about the speed of development. I did catch some of it. It is an amazing keynote. If you haven't caught it all, join me as I go back and watch the rest of it. But right now, we have a critical Oracle partner in Deloitte to talk about Oracle Cloud VMware solution, how customers are actually using the solution in the field in the value prop of that solution versus other solutions.
With me, I have Shashi, lead of Distributed Cloud Practice at Deloitte. Shashi, welcome to the show. >> Thank you so much for having me. >> Keith: And Sankar, OCVS Offerings lead, welcome. >> Thank you so much for having me. Glad to be here. >> And we promise that this won't be one of the seven things that get people fired on the show because both of you are engaging with customers. You're on the ground leading digital transformation efforts. And you know, I'm a little torn 'cause I'm a former PWC guy.
>> Shashi: Okay. >> So, you know, I feel a little like, ah, but the reality is that Deloitte is not just doing technical transformations. You're doing digital transformations. You're getting there with an entire Deloitte set of practices and capabilities talking everything from tax to business strategy to actually technology, those challenges, >> Shashi: Right. >> and bringing 'em there in holistic solutions. So Shashi, the first question is to you. >> Shashi: Yeah. >> Oracle Cloud VMware service seems like really low level technical stuff.
Like, why should customers care about this level of implementation detail? >> Yeah, no, that's a fantastic question to start this conversation with. You know, the fundamentals of business and what Deloitte wants to do is do the right thing by the business, right? The fundamental of the business is you got to innovate, you got to transform your business, but it also comes with the risk that, you know, you try to transform and something breaks, what happens next? So you have to kind of have the back for the CIOs, and the CTOs are saying the speed of delivery is not enough.
So how do we get there? In all these three questions answered, we believe that OCVS or Oracle along with the VMware solution is the right solution. The reason is OCVS provides a path to the Cloud, but it also provides path backwards, which is not true with other Cloud providers. OCVS also provides a lateral movement. So, which means that, you know, jumping on in the multi-Cloud journey where you know where everyone is headed towards. OCVS integrated with the AWS or with the AVS or you know the Azure solutions becomes an integrated solution, and that's why we believe OCVS is the right way to go.
>> So you hit on a lot of topics and a lot of points that I key in with customers, one of which is that this is a people process technology type of problem in set of solutions. What are some of the people and process capabilities that customers enjoy with OCVS? >> Yeah, yeah, that's a brilliant question once again. So, you know, in terms of like being embedded into the system, Oracle has been there for a long time. Cloud in its form is now today, but Oracle has been doing distributed or you know what you call the hosted solutions for a very, very long time, even before Amazon or Google existed as companies, Oracle has been doing this, being in this business.
Now, with coming it into the Cloud business, all it means is there are a set of Cloud specific features and functionalities which is about elasticity, scalability security, and those features embedded bring what is Cloud. Now, in in terms of transforming the people into the Cloud solutions and also leveraging the tools that are available for the Cloud is all is what is OCVS. So I believe there's not a significant jump from there. It obviously, you know, transforming into the native factors requires a lot of transformation, but VMware becomes an integral part because it does provide the fastest part to the Cloud.
Rather than transforming and refactoring for five to seven years, the OCVS solution gives a faster path less than a year and you are there, boom, you don't like it, move back, you know, solutions which are very tactical and faster. >> So, Sankar, this is where I want to bring you into the conversation because I've had this conversation about moving there and back before. The simple truth of the matter is when we talk about people in process, when I move into the public Cloud and I adopt Cloud native capabilities, recreating that On-Prem is a challenge, even with Kubernetes and all the advantages we've had in private Cloud, I've led you know, I'm not ashamed to admit, I've led failed after failed private Cloud efforts dating back to 2010, 2011, 2012.
How real is this capability of moving to Oracle Cloud and back from Oracle Cloud when they're using a VMware solution? >> Yeah, the nice thing about a VMware Cloud solution especially with OCVS is that I'm not not changing any of the underlying structure of the VMs or the containers running within the VMs or whatever, right? All of that remains intact. In fact, one of the nice advantages of OCVS is that I can even choose the vSphere version that I have and have complete control over that environment, right?
And as a result of that, since I'm not altering any of the underlying structure of the virtual machines, I'm able to move it from my on-premise to the OCVS environment. And let's say six months later you want to move it back for whatever reason, you have not changed anything that's going to prevent you from going back, right? And the way VMware works is they have some really nice tools like HCX and layer two extensions where I can even go back and forth without having to even change IP addresses or Mac addresses, right?
So there's a lot of benefits to going this way as opposed to just going into the native Cloud without knowing where you want to be in a year or two and then finding out that that's not the right place and now you have no way out, right? It's a lot harder to get out. >> So we're mimicking a lot of the stuff that I've actually seen in my lab and using HCX to move back and forth, we used move VDI instances seamlessly just it's VMware vSphere.
But as we zoom out and talk about some of the things that customers enterprise Fortune 500 customers are concerned with like disaster recovery, security, et cetera how important is it to maintain that similar set of capability across their On-Premises landscape and their public Cloud landscape? >> I mean you mentioned security, right? That's one of the key differentiators of an OCVS solution because customers get to have their own tenancy and there's really no Cloud provider access to that tenancy, right? So customers actually get to choose the vSphere version, they get root access to it and the retain root access compared to some other Cloud solutions where you kind of lose that control, right?
And that's a significant factor when it comes to security 'cause I have root access to my ESXI environment in the Cloud. And that's a big deal, right? >> Keith: Yeah. >> Because that's a fundamental tenant of security and keeping control of that environment. So that's one. And then when you mentioned DR, having the ability to move back and forth is critical for DR. And so if I'm moving stuff into the Cloud and I move back without having to change things, that's a good thing, right?
I can fail over and fail back at will, right? So and VMware with their SRM and other features, there's other third party solutions as well that make it a lot easier for customers to manage that entire DR environment. Like if you have DR running within VMware, I don't have to worry about, you know, a separate replication scheme for file systems or separate replications scheme for databases, a separate replication scheme for whatever that's running, right? Everything is happening at the vSphere layer and whatever is in the vSphere environment gets replicated back and forth.
So DR is seamlessly managed. >> In fact, Sankar and I were talking just earlier on that OCVS is probably one solution that gives us the flexibility to have any DR solution. It doesn't necessarily tie you into a specific disaster recovery solution. So yeah, I agree with him. >> Yeah, we've talked a lot to customers about the various VMware Cloud offerings on and how that ability to have just access to the VMDK and say I can replicate the VMDK and launch that from the root access of every root access.
But there is a disadvantage to heavy root access. And I want to talk about that SI layer that Deloitte brings to the thing. Again, we're talking about people in process. 7 of vSphere. Now, why this is important is because Oracle gives me the ability to say you know what? Stay on the version you feel comfortable for your operations >> Shashi: Right. >> from a technology perspective, but from a operations perspective, I have to move forward. I have to not have tech debt.
How does Deloitte help the customers with that technical debt equation and help them get the people and processes so that they can go to Oracle and say, I'm ready to go to vSphere seven or whatever the newer version is? >> Yes, so in terms of, you know, the key aspects of Cloud, Cloud is nothing but someone else's data center, right? In terms of the key aspects of Cloud, what it means is, you know, are you getting the most out of your Cloud, which is performance?
Are you having a secure environment because you are hosting these products of yours elsewhere? And finally, are you getting the most of the technology because the technology is evolving? Which is your question. So in order to get to these levels, you know, there are fundamentals on how you do an application assessment, performance assessment, financial assessment. And Deloitte has a bunch of tools that are driven by what we call the Cloud workbook. It is a comprehensive work package that essentially gives a very quick report on where the operations can be, where the financial system can be versus where they are.
The second challenge is in terms of where the technology is today versus where the technology can be because they are paying for the licenses, they have access to it, but can they enable it? And we are not saying that everything is easy, that you turn on a button, you turn on SQ and it's going to be there. There are going to be some design and planning aspects, and guess what? Deloitte is, you know, one of the leading firms which does a phenomenal work in terms of network security and also NSX micro segmentation aspects.
>> Now, if I remember my math correctly or my history, Deloitte is a pretty capable management consulting firm. >> Shashi: Yeah. >> So from a financial engineering perspective, you folks really understand, you know, concepts like ROI, internal rate return, et cetera. So when you're doing the financial assessment for OCVS versus other parts, where is OCVS coming up from a financial perspective in that conversation? >> Yeah, I will address this question from a business perspective and I will let Sankar address it from a technology perspective.
From a business perspective and the fundamentals of computing, the fundamentals of speed and you know, the fundamentals of network efficiency, the egress cost, and the fundamentals of performance or the storage, those are all coming out from the OCVS system. And when we compare it against multiple providers, we find that OCVS is definitely far more leading than the competition out there. And we have benchmarking deports to address that. From a technology standpoint, Sankar, did you want to take a stab at it? >> Sure yeah, from a cost perspective, you know, I would say that OCVS has the lowest cost per core and per terabyte of storage right across all the providers out there based on the analysis that we've done.
And the other nice thing about OCVS is also how they structure their network cost. It's actually significantly lower than some of the other public Cloud providers, and the egress costs are also extremely reasonable, right? They don't even charge for egress cost until you hit a certain point. So there's a huge savings from that standpoint. The other major thing that I've run into is the fact that they have very, very large host shapes that can support some of your largest workloads, but more than performance what those large host shapes allow you to do is limit the number of private Clouds that have to build in the public Cloud provider space in order to accommodate some of my largest on-premise environments, right?
So if I have a huge on-premise environment that today is a single V center with like say 400 nodes or something like that, for me to move that into the private Cloud in OCVS, I'm going to be looking at a lot less private Clouds versus the other public Cloud problems 'cause my host shapes are so much larger, right? That's a huge advantage when it comes to efficiently managing your public Cloud environment. >> So Keith, I just want to add on that, you know, there are still firms that are out there on a private data center or you know, they haven't still migrated to Cloud because of the challenges none of these public providers have been able to address.
And OCVS egress cost like Sankar mentioned are like one third to one 20th of what these other providers are providing. That's a phenomenal disruption of the marketplace, and you know, I think for those reasons, OCVS makes a significant impact to- >> Yeah, as I think about kind of application architecture then and the desire to have hybrid Cloud, multi-Cloud and egress being a huge portion of it. If I have legacy systems On-Prem such as mainframes oh HPUX, SAP where the financials may not make sense to move it or I need proximity to my workforce >> Shashi: Yeah.
>> and I have data going back and forth the edge which we haven't really talked about, >> Shashi: Right. >> where egress can be a break, a make or break >> Shashi: Exactly, yeah. >> for moving to the public Cloud or not. But we can't have the cost conversation, the portability conversation and a conversation at Oracle Cloud World without talking licensing. >> Shashi: Yeah. >> Licensing across the board. >> Shashi: Yeah. >> It is a messy complex to understand what licenses are portable to Cloud environments.
How does OCVS or Deloitte help me kind of solve this? It's technical, I don't know which to ask you. It's a technical problem. It's also a business problem. How do I solve this licensing conundrum? >> So you know, one of the beauties of the entire ecosystem is that if you are able to leverage where your application belongs, where your license cost is lower, and where your application for performance does not take a hit, it's better to leave it there. Which is the true multi-Cloud of the world, right?
And OCVS is one set solution that allows you to leave some of these applications On-Prem while having the next gen or you know, born on Cloud solutions back on the Cloud. We're not saying that everything fits into OCVS. Maybe there are some that fit into Azure, maybe there are some that fit into the AWS Cloud, and the integration of that, and that's the beauty of it. The licensing conversation happens in terms of where it makes the most financial viable case and that's the analysis that Deloitte does and we recommend that to our clients.
>> Absolutely, licensing's actually a fundamental aspect of design often overlooked, right? Because licensing can completely change a design left and right. >> Keith: Yeah. >> And one of the nice things about OCVS, it does have some benefits for not just Oracle licensing but also for Microsoft licensing. And the other thing is OCVS being Oracle, like, if you had some heavy databases On-Prem might make a lot of sense to just move them to native OCI, right? So if I have that in native OCI, that is some significant licensing savings from an Oracle standpoint.
And then the VMware infrastructure that's On-Prem, you know, if you happen to have a lot of say, Microsoft SQL databases, you could put that on Azure and OCVS has co-tenancy with Azure in several locations. So you do have a low latency fast connect or express route connection between those two Clouds so where I can have my SQL servers in Azure to minimize my Microsoft licensing costs and my databases in OCI to minimize my Oracle database licensing costs and other VMs on the OCVS Cloud which are talking heavily to both Clouds.
And the nice thing about having it in OCVS is because there's significant advantages as Shashi pointed out when it comes to egress costs, right? 'Cause a lot of back and forth traffic and you want to minimize that. So this is a true multi-Cloud solution, right? And you add the On-Prem layer in, you have a true hybrid multi-Cloud solution that minimizes licensing and also minimizes a lot of the network costs as well. >> So let's talk about phase two which is we've lifted and shifted the environment, we've optimized for licensing, we've trained on people.
We've moved to a hybrid Cloud, multi-Cloud model. We're solid in that. Now, we want to look at what Larry's talking about at the keynote now, speed to development using the Cloud for what it is. I have my traditional landscape in there. Let's say it's my Oracle business app or my SAPs in the Cloud. How do I extend the capability of that now with Cloud services? What are you seeing customers doing with OCVS? >> So again, it comes down to our initial application assessment, right?
That's the fundamental first step in everything that Deloitte does. So we actually look at the overall application landscape and then try to find the best landing zone for every given application, right? So if it makes sense, for example for an application to be modernized and put natively in the Cloud, we will do that, and we'll decide or we'll help the customer decide on the best Cloud for that specific application as well, right? So it could be OCI, it could be some other public Cloud provider.
Likewise, when it comes to, you know, a VMware environment that's running On-Prem, we'll also help them decide, okay, what is the best Cloud provider from a VMware Cloud solution, right? And one that minimizes licensing, one that helps them meet their business needs. So all of that gets into our application assessment. We do a Cloud suitability assessment as part of that and kind of come up with a migration plan that puts them in the right place that is future proof and helps them meet their business goals.
>> All right, so last question. I'm really curious about how my audience will, they're like, Keith, this is sponsored by Oracle and you're always telling us lift and shift is bad, lift and shift is bad. Lift and shift isn't bad. Lift and shift is bad when you don't have a plan to either modernize >> Shashi: Exactly. >> or you're not going on the right platform to begin with. How are you helping customers? You know, I jokingly said the seven things that got people fired on the CTO Advisor podcast.
The one thing that actually does get people fired is if you lift and shift to the public Cloud and you have out of control cost. >> Shashi: Yeah. >> and you have to go back On-Prem. >> Shashi: Exactly. >> How is Deloitte and Oracle teaming together to make sure that customers have the right mix? >> Yes, and you know, it's not just the cost of the transfer but most importantly the performance of the application. You one find a an enterprise decides they want to move to Cloud, they do the lift and shift, and they find that the application performance is so deteriorated that you know, it doesn't even make sense to be on the Cloud.
So these are the top two reasons why anyone would want to like do some assessments before getting there, and that's where Deloitte is really good at. We can look at overall like the bigger picture of where the business should be, how the business can focus on its core strengths, what are some of the challenges in moving to Cloud because you know, we always are like so excited about Cloud that we don't even see the strength of what's already there in your data center. Maybe there are instances where it doesn't even make sense to move to the Cloud.
Maybe forget about OCVS, just the Cloud doesn't even make sense. And we'll be very open to have that conversation because Cloud is not for everyone. And you know, there are instances where we have said to the client, you are good where you are at. So that would be our approach to towards it. >> So none of my Cloud customers will enjoy you saying that. All of my hardware customers will love you saying that. And I think that's the reality of getting help from a management consulting firm to help come in and give you a true assessment of how do you reach the digital transformation.
I heard a lot of conversation about Cloud first, Cloud first, and the question that I asked myself was well, is Cloud right? This is Oracle Cloud World, and Oracle has a lot of great solutions for On-Premises, business transformation, as well as public Cloud transformation from Microsoft to the other Cloud providers. This is not a technology only journey, it's a people, process, and technology journey. I really enjoyed having this conversation with Deloitte. If you want to find out more about the CTO Advisor, you could follow me on the web, the CTO Advisor.
If you're still not buying this, I don't know how much more proof I can come to you and tell you that hybrid Cloud is the future. If you're still not buying it and you still have pushback, DMs are open at CTO Advisor on Twitter. Talk to you next CTO Advisor's studio at Oracle World, Oracle Cloud World 2022.
