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page 2 •Leveraging Virtualization at HUD June 2007
OurHUD, OurTrends
Office of the Chief Information Office of the Chief Information OfficerOfficer
page 3 •Leveraging Virtualization at HUD June 2007
Increase homeownership, support community
development, and increase access to affordable housing
free from discrimination.
HUD’s MISSION
Invests approximately $300M annually in IT
•Increased Home Ownership
•Promote Decent Affordable Housing
•Strengthen Communities
•Ensure Equal Opportunities in Housing
•Embrace High Standards of Ethics
•Enhance Management and Accountability
•Promote Participation of Community-Faith Based Organizations
HUD IT Portfolio Distribution
FY-03 FY-04 FY-05 FY-06
$336M $389M $366M $279M
$100M
$200M
$300M
$400M
StaffDevelopment
Maintenance
Infrastructure
Federal Housing Commissioner
Community Planning & Development
Policy Development & Research
Government National Mortgage Assoc.
Public & Indian Housing
Fair Housing & Equal Opportunity
Healthy Homes & Lead Hazard Control
Faith-Based & Community Initiatives
Secretary of Housing & Urban Development
New Development
HUD Business Overview
page 4 •Leveraging Virtualization at HUD June 2007
HUD Leads The Vision of Infrastructure Optimization….
page 5 •Leveraging Virtualization at HUD June 2007
Business Needs
Agility of Response:Respond Faster
The need for business speed means … … IT must change.
IT reliably detects/reacts in real time to the
business.
IT strategy is tied to business strategy.
IT has unpredictable reliability and reacts slowly to business
requirements.
IT organization owns IT strategy.
CIO = business leader.CIO = manager of IT resources.
HUD’s Leadership in Infrastructure Transformation
page 6 •Leveraging Virtualization at HUD June 2007
TheTheChallengeChallenge
• Consolidate and transition to one streamlined and standards-based commercial facility
• Transform from rigidity and lack of integration to integrated, standards-based services.
• Centralize help desk functions and support of desktops and field services, improve customer satisfaction
• Ensure business continuity capability and improved disaster recovery capability, increased mobility and flexibility.
• Modernize antiquated IT infrastructure without disruption – while reducing costs
• Measure IT performance through SLAs
page 7 •Leveraging Virtualization at HUD June 2007
TheTheApproachApproach
• SLA driven IT infrastructure services
• Massive data center modernization
• Capacity on demand
• Optimum utilization for improved business application performance
• Maximum standardization on fewer hardware and software platforms
• Continuity of operations with minimum down-time to HUD’s critical business applications
• Enterprise-wide wireless solutions
• Enterprise-wide Help Desk support and centralized field dispatch
page 8 •Leveraging Virtualization at HUD June 2007
TheTheResultsResults
• Achievement of “green” rating on the President’s Management Agenda
• Received A+ on FISMA Score Card
• Enterprise Architecture Ranked Number 1 by OMB
• Improved customer satisfaction to 93%!
• Shared IT services cost savings of 20%
• New and measurable efficiencies drive increased performance
• Adoption of agency-wide SOA standards
• Enhanced data integrity via security
• ISO 9001 and ITIL standard based services
• Massive expansion of wireless services leading to increased productivity
page 9 •Leveraging Virtualization at HUD June 2007
Objective
Ability to Change
Pricing Scheme
Business Interface
Resource Utilization
Organization
IT Management
Processes
Basic
Rationalized Virtualized
Service-Based
Standardized
Reduce complexity
Economies of scale
Flexibility, reduce costs
Service-level delivery
React
WeeksWeeks to
daysWeeks to minutes MinutesMonths to
weeks
Fixed costsReduced,
fixed costsFixed shared
costsVariable usage
costsNone, ad hoc
Infrastructure resources pooled
Services managed holistically
Uncoordinated infrastructure
Standard resources, configurations
Consolidate to fewer
Policy/Value-Based
Business agility
Minutes to seconds
Variable business
costs
Dynamic opt. to meet SLAs
Class-of-service SLAs
Class-of-service SLAs Flexible SLAs End-to-end
SLAsNo SLAs
Known Rationalized Shared poolsService-based
poolsUnknown
Central control Consolidated Pooled ownership
Service-orientedNone
Business SLAs
Policy-based sharing
Business-oriented
Reactive —ProactiveLife cycle
management
ProactiveMature problem
mgmt.
ProactivePrediction, dynamic capacity
ServiceEnd-to-end
service management
Chaotic — ReactiveAd hoc
ValuePolicy
management
The Roadmap to Infrastructure Optimization
page 10 •Leveraging Virtualization at HUD June 2007
• Why Virtualize?
• What to Virtualize?
• HUD’s Virtualization Tools
• Benefits of Virtualization
• Lessons Learned
page 11 •Leveraging Virtualization at HUD June 2007
HUD Server architecture - Before and After HUD Server architecture - Before and After VirtualizationVirtualization
Traditional Infrastructure Virtual Environment
2-CPU Server
2-CPU Server
2-CPU Server
2-CPU Server
2-CPU Server
2-CPU Server
2-CPU Server
VMware
Win 2003 Win 2003
Solaris
SolarisWin 2003
Solaris
Web AD
DatabaseCust. App
Application ApplicationPhysical to
Virtual Converter
Win 2003Web
Win 2003AD
SolarisDatabase
Win 2003
Cust. App
Solaris
Application
SolarisApplication
One OS and One App per Physical Server
Many Independent Virtual Servers per Physical Server
page 12 •Leveraging Virtualization at HUD June 2007
Why Virtualize?Why Virtualize?
• Large number of physical servers requiring time consuming maintenance
• Low per server resource utilization
• Lengthy disaster recovery times
• Various development, testing and migration issues
• Application outages impacting users
• Business impacting downtime due to server/OS maintenance
• Lengthy time to provision and deploy new services
page 13 •Leveraging Virtualization at HUD June 2007
What to Virtualize?What to Virtualize?
• Production Application Servers
• Test/Dev Environments
• File & Print Servers
• Underutilized Web and Application servers
• Firewall Servers
• Database servers with few to moderate users
• New applications
page 14 •Leveraging Virtualization at HUD June 2007
Virtualization Tools UsedVirtualization Tools Used
• On Unix servers, used the Solaris 10 OS container technology which allows the creation of “zones”
• Grouping of application processes and tasks with resource controls applied
• Provides virtualization, isolation and granularity
• On Windows servers, used VMware technology
• Hosts multiple Virtual Machines, virtualized processors and a network accessible management interface
• Provides secure logical partitioning, strong fault and security isolation and dynamic allocation of system resources
page 15 •Leveraging Virtualization at HUD June 2007
Key Business BenefitsKey Business Benefits Achieved Achieved
• Reduced infrastructure costs
• Increased capacity utilization
• Reduced applications outages due to server failures
• Enabled seamless and uninterrupted support of HUD’s business in developing new business applications
• Ensured compliance with OMB and FISMA standards
• Reduced complexity resulting in improved recoverability of HUD's business applications from logical and physical disasters
• Increased stakeholder satisfaction
page 16 •Leveraging Virtualization at HUD June 2007
Data Center BenefitsData Center Benefits
• Reduction of hardware costs for servers, HBAs, network cards
• Reduction of space usage and power consumption
• Improved asset utilization
• Automated monitoring reduces human error and outages
• Improved disaster recovery
• Reduction of technical support needed due to automated processes
• Reduction of server/OS maintenance downtime
• Rapid provisioning and deployment of new servers
page 17 •Leveraging Virtualization at HUD June 2007
Increased Agility and FlexibilityIncreased Agility and Flexibility
• Address changing business and infrastructure requirements more rapidly
• Automate and reduce time for resource provisioning and problem resolution
• Dynamic workload distribution based on application demand and asset availability
• Increase/decrease compute capacity as workloads vary
• Faster deployment of new servers
• Quicker recovery times on existing non-high availability environments
Average Utilization
Peak Utilization
Growth Buffer
Fudge Factor
page 18 •Leveraging Virtualization at HUD June 2007
Improved Service and DeliveryImproved Service and Delivery
• Automated monitoring and management reduces human error and outages
• Re-provisioning application environments quickly when failures occur
• Dynamic workload movement between servers prior to problem detection
• Achieve affordable business continuity and disaster recovery solutions
• Management of environment becomes easier (change management, software provisioning, DR planning, IT cost mgmt, availability planning)
• Virtual relocation prevents planned downtime from affecting performance
page 19 •Leveraging Virtualization at HUD June 2007
HUD Vision 2010: What Has Been Accomplished
• The Business Challenge: Lessons Learned from Katrina – No Centralized Location to Search for Available Properties
• The Solution: Single Web Portal to Locate Affordable Housing Nationwide
• The Results: Implemented in January 07 – Over 30,000 Properties now available For Though real-time web search by PHAs and First Responders
The HUD National Housing Locator
page 20 •Leveraging Virtualization at HUD June 2007
Enterprise Income Verification System
The Business Challenge: HUD’s rental assistance programs designated as high-risk by GAO - estimated high level of improper rental subsidy payments of $3.2 billion in fiscal year 2000 - 70% of these errors were attributable to tenant under reporting of income.
The Solution: HUD created EIV to match/verify income data for all public housing programs with the existing HHS National Directory of New Hires
The Results: The annual subsidy loss associated with administrative errors and unreported income was reduced by ~$1B, which representing a 52% decrease in the annual subsidy error, and correct subsidy determinations has increased from 55.7% to over 66%
HUD Vision 2010: What Has Been Accomplished
Past - 2004Rigidity
Technology
• Lack of Standardization• Outdated IT Infrastructure• No Documented Enterprise
Architecture• Heavy Dependence on Proprietary
Technology• Inefficient Use of IT Capacity• Limited IT Integration• Low Awareness of Infrastructure
Problems
Business
• Many Silos/limited Integration• Inconsistent Standards• Limited IT Governance• Limited Enterprise Solutions• Lack of Consolidation and
Integration of Business Systems• Under Utilized Data Sharing
Work Force
• No Measurement of Satisfaction• Limited Problem Resolution
Tracking• Paper Intensive Processes• Inefficient Work Flow
Outcome
• Red on PMA• High IT Cost• Low ROI• Low Confidence -
COOP
2005 – 2006Consolidation
Technology
• ISO 9001 Standards• Massive IT Modernization• Improved Web Applications• E-authentication• Nationwide IT Help Desk• E-mail Modernization• Wireless Solutions
Business
• Technology Solutions for Core Business Needs
• Interactive Business Processes• Improved IT Governance
• 84% Satisfied With HITS Support• Access to Problem Resolution Tracking• Enabled Mobile Workforce• Upgraded 5000 Desktops / Tools• Expanded Network Connectivity• Electronic Access to Core Business
Data
Outcome
• Green on PMA• Predictable IT Spending• High-confidence COOP• Measurable SLA Performance• Rapid Disaster Relief Mobilization• Significant Paperwork Reduction• Improved Core Business Transaction
Times
2007 – 2009Streamlining
Technology• ITIL Standards• Continuous Technology
Refreshment• Integrated Approach to Remote
Access• Integrated IT Enterprise
Architecture• Secure Wireless Access to HUD
Data
Outcome• Increased Compliance• Improved Program Effectiveness
Through Financial and Performance Data
• Adoption of HSPD-12• Assured COOP• Decreased Development Time for
New Requirements
2010Agility
Technology
• Predictive Scaling of IT• Zero Dependence on Proprietary
Technology• Edge Computing• Always On IT Resilience
Outcome
• Faster Time From Policy to Implementation
• Increased Stakeholder Productivity Through Self-service Solutions
• Streamlined Access to HUD Data• Maximized Resource Utilization• Agency-wide SOA Standards• Enhanced HUD Data Integrity• Centralized Data Management• Simplified End-to-end Business
Processes
Work Force
Work Force• Self Service Solutions• Web-enabled Tele-worker• Integrated Access to Collaboration
Tools
Work Force• Increased Ability to Perform
Business Functions
Business
• Build Once, Service Many• Elimination of Duplicate Data Entry
to Multiple Systems• Convenient Web-based, End-user
Access• Enterprise Identity Management• Enterprise Content Management
Business
• Enterprise Business Solutions• Real-time Access to HUD
Knowledge Repository
HUD VISION 2010 ROADMAP
Technology Driven Technology Driven ArchitectureArchitecture
Business Driven Business Driven ArchitectureArchitecture