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Business Continuity in the Virtual Organization

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Business Continuity in the Virtual Organization Powered By Docstoc
					Business Continuity in the
Virtual Organization




 Steve Phillpott
 CIO
 Amylin Pharmaceuticals, Inc.

 23 June 2010
  Safe Harbor Statement


This presentation contains forward-looking statements about Amylin. Our actual results could differ
materially from those discussed due to a number of factors, including: BYETTA and/or SYMLIN may
be affected by competition, safety or other issues; clinical trials not being completed in a timely
manner or achieving the intended clinical endpoints; NDAs or sNDAs not being submitted in a timely
manner or receiving regulatory approval; expense reductions not being as large as we expect; our
label update not being finalized in a timely manner; or manufacturing and supply issues. The pace
of market acceptance and rate of patient adherence may also affect the potential for BYETTA and/or
SYMLIN. These and other risks and uncertainties are described more fully in Amylin’s most recently
filed Form 10-Q. Amylin disclaims any obligation to update these forward-looking statements.
 Who is Amylin?
 Diabetes and Obesity Focused

               Diabetes Prevalence                                        Obesity Prevalence




           No Data                     5%
                                      <5%              5%–6%
                                                       5% 6%    No Data         <10%
                                                                                 10%        10% 14%
                                                                                            10%–14%          15% 19%
                                                                                                             15%–19%



           6%–7%                      7%–8%            >8%            20%–24%          25%–29%        ≥30%



   Over 24M in the U.S with Diabetes and 171M                  Obesity now recognized as a disease (CDC &
worldwide. These #’s will double by 2030. Approx               NIH) Over 60 million in the US, and 400 million
3.2M people die each year from Diabetes or related                               worldwide
         complications(6 every minute).
Source: CDC BRFSS 2005
   3
BMI 30 kg/m2 (~ 30 lbs. overweight for 5’ 4” person)
“Which way should BCP/DR go?”


                     Alice: Would you tell me, please,
                     which way I ought to go from here?

                     The Cat: That depends a good deal
                         h            tt    tt
                     on where you want to get to

                     Alice: I don't much care where.

                     The Cat: Then it doesn't much matter
                     which way you go.


                         Where is BCP/DR
                             going?

4
“Recovery in the Cloud” still in the very early
stages.
stages




Source: Gartner 2010
 5
Some thoughts for today.

    > Is this “Cloud Stuff” here to stay? Role of “Cloud” in DR.

    > Convergence and maturity of technology improving our DR capabilities and
      options.

    > How do you decide what applications to move internal or external(Co-Lo is
      just another external source, as is Software as a Service) and how does
      High-Availability and Business Continuity input into the decision making
      process?

    > Are there combinations of internal/external and/or local/remote hosting that
      enhance IT recovery capability?

    > The role of mobility in helping the DR/BCP landscape – “There’s an app for
      that”.

    > With ever improving end-user remote computing capability, is the old
      Sungard/IBM recovery center model still valid?
6
Business Needs Drive IM costs
Increased IT Efficiencies
          What Drives IM costs?

•          f Employees
        # of E l

•       # of Facilities, Sites and




                                               se




                                                                        se
        Geog ap y o ou Co pa y
        Geography of our Company




                                             ea




                                                                      ea
                                             cr




                                                                      cr
                                           in




                                                                    in
•       # of Systems/Applications and             # & Complexity           IM Costs
                                                  of Applications
        their complexity

•       Rate of Change: How fast the
        business is changing/growing

•       Service Level Agreements (SLA) –
        Desired Response time

•                      (Compliance BCP
        Risk Tolerance (Compliance, BCP,
        SOX, etc)
    7
                    Business Needs Drive IM costs
Virtual Business Model Further Opened The Door
For Cloud Computing
Where is our business model headed
   > “New Age of Innovation” as a guide
        – R=G - Resources are Global
        – N=1 - Focus on Individual Customer Experience
Implications
   > I          i t t i        t i
      Increase in strategic partnering
   > Global reach & integration even if commercially focused on US
   > Need for high level of flexibility
   > Highly complex business model
   > Focus on leveraging external expertise
   > Build of internal capabilities highly scrutinized


        Virtual Business Model further opened the door for Cloud Computing


          Use of the Cloud aligns perfectly with Virtual Business Model
                     - variable cost model critically important

8
Enabling the Virtual Organization
                                    The App”
Reframing IT Away From Thinking of “The App
                  Business Intelligence and Analytics

                     End-to-End B i     P
                     E d t E d Business Processes

                        Enterprise Data Management




                  Strategic                   Software As A Service
                 Outsourcing                         (SAAS)




    Visibility to Processes and Data across the “organization”
                         DR/BCP in the Org
9
           Application Rationalization
           Driving toward Optimum Strategic Right-Sourcing Alignment


                                      Waste of                                                  Optimum Strategic
                     odity




                                      internal                                               Right-Sourcing Alignment
                                                                                             Right Sourcing
                 Commo




                                      resources                                            Business capabilities and processes
                                                                                            should fit near this line for optimum
                                  Commodity
                                  apps such as                                              strategic fit.
                                  eMail
     Type of Capability
                      y




                                                                                           Moving away from the line results in:

                                  Other                                                    • Internalizing capabilities that are
                                  Applications                                               commodities
                                                                                           • Externalizing differentiators (
                                                                                                          g                (core
           f




                                                                                             competencies)
                                                            Alliance
                                                            Partnership
                                                                                           Both misalignments reduce competitive
                                                                                            posture and potentially increased
                                                                                            costs.
                                                 Business
                 Differentiator




                                                 Intelligence                              Optimum alignment (the right tools for
                                                                                Loss of     the right job) results in:
                                                                            competitive
                                                                                           • Increased cost agility and
                                                                                                             g y
                                                                              d   t
                                                                             advantage
                                                                                           • Sustainable investment in core
                                                                                             competencies
                                  Internal                                      External
10                                                 Provider of Capability
    Where to start:
    Determining What Goes to the Cloud

         Review your                                                               Rationalize and
          portfolio of                                                            prioritize services                     Virtualized Data Center
     IT Services and their                                                       against appropriate
             costs                                                                Cloud Use Cases
                                                                                                                     DC 1          Amazon EC2
                                                     Total Cost                                                                     Amazon EC2
                                                       d dua
                                                     Individual         d
                                                                      Indiv %
                IM Services                           Services
       Technology Infrastructure Engineering & Operations
                                                                      of Total       Cost/Benefit
                                                                                     C t/B    fit
Communications
     Directory Services & Email (including LO)
                                                 $
                                                 $
                                                         1,581,540
                                                           779,467
                                                                        5.12%
                                                                         2.52%
                                                                                   ROI (TCO-Based)
                Phones/Phone Sys/Voicemail $               280,640       0.91%                                                     Cloud SW
                                                                                                                                    Cloud SW
                 Conf Room Equip & Support $                 21
                                                            1 ,064       0.39%
                                                                                                                                   Development
                 Web/Voice/Video Conf (Ext)
Telecommunications Services
                                                 $
                                                 $
                                                           400,370
                                                        3,094,843
                                                                         1.30%
                                                                       10.02%
                                                                                   Performance and                 Private
                                                                                                                                    Development
       Wired - WAN/LAN & Internet Transport                                                                         Private
                 Wireless Telecomm Services
                                                 $
                                                 $
                                                          1
                                                          1
                                                           ,476,206
                                                           ,486,295
                                                                         4.78%
                                                                         4.81%
                                                                                    Architectural Fit              Cloud
                                                                                                                     Cloud
                                                                                                                   Computing
                                                                                                                     Computing
          Remote Access Enablement (Citrix)      $          104,325      0.34%                                                      Cloud
                                                                                                                                     Cloud
                Telecommunications Services      $           28,016      0.09%
InfoSec/Risk M gmt/DR/SOX                        $       1,409,710      4.56%                                       DC 2            Storage
                                                                                                                                     Storage
End User Computing
     Desktop Computing HW, SW, Engineering $
                                                 $      1,998,398
                                                            ,341
                                                           1 ,065
                                                                        6.47%
                                                                         4.34%
                                                                                 Control / Governance
    Personal Printers/Shared Printers/Copiers    $          403,182      1.30%     Data mgt, Customization, etc
                       End User Computing $
Service Desk & User Support               $
                                                            254,1
                                                        1,992,360
                                                                 50      0.82%
                                                                        6.45%
                                                                                                                                    SaaS
                                                                                                                                     SaaS
                     Service Desk Operations     $          ,01
                                                           1 8,931       3.30%
                         Executive Support $
              Event Support (Sls Mtgs, ADA) $
                                                           278,734
                                                            1 2,653
                                                             1
                                                                         0.90%
                                                                         0.36%
                                                                                 Security / Risk Mgmt
                                Site Support $              561,742      1.82%   Privacy, Compliance, DR/BCP       Physical       Virtual Data Center
                Service Desk & User Support $               20,300       0.07%
Enterprise Collaboration Svcs
                      LiveLink EDMS (Harbor)
                                                 $      1,759,270       5.69%                                     Data Center
                                                 $         865,293       2.80%
Collab Services - SPoint/MOSS & Content Mgmt $             893,977       2.89%




                                Not everything is an appropriate “use case” for the
                                               cloud delivery model
Cost modeling provided by LST (bryan.hodges@lstechnologies.com)
  Amylin Virtual Data Center
           The                          Job
  Finding “The Right Tool For The Right Job”

         Data Center 1                                                                  Provide computer
           Production                                          Cloud Computing       capacity to business
           Email
           E il                                                A
                                                               Amazon EC2            faster and at
           Document Mgt      San Diego Campus                                        reduced costs.
           Collaboration        Two data centers
           Data Storage
                             with high-availability
                                                                                        Build new
                                      architecture
                             failover architecture.            Cloud SW Dev          Applications for the
         Data Center 2                                         Google Apps,          business quicker and
            Production           Leverage Virtual              Force.com             at reduced cost
             Datawarehouse     Server Technology
             ERP             (VMware) to minimize                                      Improved Disaster
                                                                                       I        d Di    t
             CRM
             Data Storage
                                    footprint                   Off-site, On-line    Recovery (DR) and
                                                                 Storage             to defer off-site DR
                                Leverage Private                Nirvanix             expense
        Private
        Cloud Computing
                             Cloud to optimize
                                                                                       Applications with
                             internal utilization                                    minimal Capital,
                                                                SaaS
> Data Centers (DC) at 100% capacity                                                 reduced Expense,
> $2M - $5M required for more capacity                          Applications         more Functionality
> C iti l apps such as ERP are on-site
  Critical        h                it       Trusted Cloud       accessed via Net     and improved DR
                                            (validated apps)

           Physical Data Center                                Virtual Data Center
   12
Amylin Virtual Data Center
Business Continuity

                   Data Center 1                      Data Center 2
                     Production                          Production
                     Email
                     E il                                Datawarehouse
                                                         D t     h
                     Document Mgt                        ERP
                     Collaboration                       CRM
                     Data Storage                        Data Storage




               Host replication software keeps production and backup
             servers in sync across multiple sites.
               Vmware provides mirroring and clustering for virtual
             servers, and Doubletake provides real-time mirroring for
             p y
             physical servers.
               Disk-array and database level replication provides
             synchronous data replication
Amylin Virtual Data Center
Infrastructure as a Service – Amazon Web Services



                                                         Amazon EC2         Amazon S3
                                                        Cloud Computing     Cloud Storage


                                  Secure
                                    VPN
                                 tunnel to
   DC TCD
 9520 #1     DC TCD
            9625 #2               Amazon
                                   Cl d
                                   Cloud
                                             Enterprise/network/web site monitoring applications
                                             Information security monitoring applications
                                             Employee communication applications
                                             HR performance management tools
                                             Sales region retargeting
       Best Use Cases                        High performance computing for biology (2010 pilot)
High-performance/scalable apps
Apps needed only periodically
IT utilities and sandboxes
  Amylin Virtual Data Center
                          Force.com
  Platform as a Service – Force com
                                                                                                                  Custom
                                                                                                                Development


                                                                             Force.com
                                                          Cloud Application Development Platform
                                      Secure
                                       VPN
  9520 #1
    DC TCD    9625 #2
               DC TCD
                                     tunnel to
                                    force.com




                  Progress To Date                                             Next Steps
> Evaluated adequacy of force.com info security           > Rationalizing Licensing Synergy/Efficiency – much
> Developed first pilot application as a staff training   more cost-effective if already using Salesforce.com
                                                          > Complete development of production
exercise
e e c se
> Identified a suitable production application to         > Identify additional candidate applications
develop, targeting Q3 2010 to launch.                     > Some apps able to be built in 1/8th to 1/10th
    15
                                                             the time of traditional development
Amylin Virtual Data Center
Cloud Storage - Nirvanix

                                               Amylin Server Images
                                              Stored in Nirvanix Cloud




                      Secure
                       VPN
9520 #1
                     tunnel to
  DC TCD    DC TCD
           9625 #2
                     Nirvanix


                                    Initially, all Amylin server images and VMs stored in
                                 Nirvanix
                                   Provides for recovery of servers in a DR scenario
                                    Nirvanix file caching and copy technology provides for
                                 very fast internet transfers. We can fill a 100mb pipe with
                                 these backups.
                                    Now preparing to pilot daily backups to Nirvanix, as a
                                 likely strategy to go tapeless by 2011. (CommVault)

16
Amylin Virtual Data Center
Software as a Service (SaaS)
                                                               > eTime time/attendance collection
                                                               > Concur expense processing
                                      Secure                   > Payroll
                                   VPN tunnel
                                     to SaaS                           > eMail archiving and
                                    Providers                          eDiscovery
  DC TCD
9520 #1       DC TCD
             9625 #2

                                                                       > Exchange hosting
                                                                       (in progress)



           Evaluating SaaS Alternatives to all
            Costly On-Premise Applications
> Need to have a SaaS Decision Matrix/Process defined.
> Finding reduction in TCO of 30% to 70%
> Variable cost model aligns with company business model
      (fixed cost of on-premise apps does not)
> Shorter implementation times
> Upgrades are automatic with no incremental cost
   pg
> IT resources refocused on strategic, high-value activities
> Functionality often better than on-premise, Tier-1 apps
     17
Transitioning 1 of 2 Physical Data Centers to a Partner
 Conserve Capital,       Opex,            DR
“Conserve Capital Reduce Opex and Improve DR”



                        > Reduced and Variable Cost Model:
                          Complete flexibility to scale up and
                          down with business need

                        > Improved reliability, security, and
                          compliance that far exceed our
                          capabilities

                        > Increased disaster recovery and
                          business continuity capabilities with a
                          partner outside of SoCal.



18
  Why Phoenix?

• #1 Data Center Site in Western United States
    • Low cost of operation – labor and power
    • No earthquakes, tornadoes, floods, or significant fires
• Within driving distance of San Diego
               g                    g
• Excellent telecom connectivity. Can serve as the production data center
site for all Amylin locations and business units.
• Amylin has an existing IT partner company in Phoenix that can assist
“hands on”
• Amylin Data Center Partner (IO Data) :
    • Tier 4 (highest grade) data center, with multiple redundant
    capabilities for power, cooling, security, and connectivity.
    • Currently the largest commercial data center in the world – 550,000
               y       g
    square feet (9 footballs fields)
Business Continuity
Technology Maturity Improving DR Capabilities

                         •   Ubiquitous end user access to business processes
                         •   User-managed, li h f
                             U                          i    li
                                          d light-footprint clients
      User Mobility
                         •   “There’s an app for that”
                         •   3G network availability reduces wired network point of failure

                         • Virtualization technologies such as VMWare provide clustering for
       Application         any application
                         • Host replication technologies such as Doubletake provide server
     High Availability     mirroring, even over geographical distance
                         • Real time monitoring and failover possible for any application

                         • Synchronous and asynchronous replication now widely available,
                           even on low cost storage.
     Data Replication
                         • Database technologies such as Dataguard provides transaction
                           level database protection
                         • Cloud storage such as Nirvanix provides internet data backup

                         • Moving business applications to SaaS providers diversifies
     Cloud and SaaS        business processes away from single points of failure(SPOF)
                         • Amazon EC2 and major cloud and SaaS providers can specialize
                           and invest in disaster recovery more efficiently than a single
                           enterprise
20
Challenges and Lessons Learned

            Challenges                        Measures Taken
                                • Align IT to provide strategic value to the business.
                                  R l more than j
                                  Role                          i   h      li i
                                               h just supporting the applications.

• People                        • Engage/Educate IT/Customers on Cloud
                                  Computing

• Process           Create                                   provision
                                • Establish new processes to provision, monitor and
                 Appropriate      manage cloud platforms
                 Environment    • Ensure good change control processes are
• Technology     for Success      implemented and integrated with different support
                                  teams
                                  tea s
• Focus                         • Security: Implemented LDAP to manage cloud.
                                • Implemented VPN solution to ensure secure
                                  transport.
                                • Identify applications fit for cloud computing model
  You will find issues with     • Continue to look at applications, infrastructure
   moving to the “cloud”.         purchases than can be off-set by leveraging the
                                  cloud
Start small and grow maturity
                                • MUST have solid understanding of internal costs.

 21
   Where to Start: How to evolve
   Amylin s
   Amylin’s Cloud Evolution…continues to evolve

                         IT Supports Business Strategy                             IT Enables New Cloud Capabilities
                 Executive Buy-In – CEO, CIO, InfoSec, etc
                                                                                                     Build
                    Reduce Cap-ex, Optimize DC usage
                                                                                                   Expertise
                                                                           Implement
                                                                                                   Outcome Defined
                                                     Play                      Migrate
     edge




                                                                                                  • Embrace success
                                                                          • Migrate dev/test      • Showcase cost
                            Learn                  Experiment               environments            savings
Knowle




                                                                          • Migrate or            • Build an enterprise
                                               •  Team Approach             launch new apps         cloud strategy
                            Educate                                         on the cloud
                                               •  Hands-on approach                               • Learn from each
                                               •  Understand the value                              experience
                     •   Team Involvement         proposition
                                                                                                  • Expand
                     •   Conferences           • Understand
                                                  constraints                                                gy
                                                                                                    accordingly
                     •   Vendor Briefing
                                                • Indentify app fit for
                     •   Expert Services          cloud computing
                     •   Best Practices         • Define new processes
                     •   Collaborate with
                         other companies




             Awareness
            22                              Understanding
                                                 1993-95                  Transition            Commitment
  Cloud and SaaS Require
  Comprehensive Identity Management Capabilities




                                 With Symplified SSO
Current state

Multiple Cloud and SaaS
                              > Symplified acts as a Single Sign On(SSO)
applications driving:         authentication broker for users.
                              > Standards based (SAML) and custom
    > Increased # of logins        i
                              services.
    and passwords for users   > 15 web applications, including Rearden
                              travel, LiveOffice mail archive, Workday,
    > Increased provisioning  Concur ADP eTime and others
                              Concur, ADP, eTime,          others.
    for system administrators > First apps will go live in Q1 2010.
Disaster Recovery/Business Continuity Challenges
in the Cloud

•    Moving Large amounts of Data across the network…. It’s a Physics
     problem.
     problem

•    Potentially Adding Complexity

•    Compatibility of different server images…. AMI, Hyper-V, Vmware, Xen……

•       O    ti   l M t it f         Cl d P id        t i k
     IT Operational Maturity of some Cloud Providers at risk.

•    Security – Encryption of data in transit, security of data at rest,
     Government’s Personal Privacy and Security Act State Sponsored
     Government s                                    Act,
     compliance regulations, etc

•    Service Level Agreements


24
Q&A

      • “The Cloud” is here.
                              if,    when.
            > Not a matter of if but when

                 pp               pp p
      • Not all applications are appropriate
        for the Cloud. But some applications
        are VERY appropriate for the Cloud.

      • Our job is to find the balance.

      • We must learn how to adapt and
        leverage our BCP/DR plans for
        these services.

				
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