White PaperSurvivors’ Guide to the Cloud:Making Alternative Infrastructure ServicesWork for the IT DepartmentSponsored byM...
2Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
3Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
4Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
5Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
6Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
7Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
8Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
9Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Pa...
10Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
11Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
12Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
13Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
14Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
15Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
16Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
17Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
18Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White P...
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Survivors Guide To The Cloud

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In almost every organisation, irrespective of its size and industry sector, IT infrastructure managers today are grappling with the same challenges: how to transform IT efficiency; increase agility and flexibility; and lower overheads in such a way that performance, availability, resilience, data security and compliance remain under tight control.

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Survivors Guide To The Cloud

  1. 1. White PaperSurvivors’ Guide to the Cloud:Making Alternative Infrastructure ServicesWork for the IT DepartmentSponsored byMay 2013OneStopClick ResearchCloud Services GroupOneStopClick ©2013 All Rights Reserved
  2. 2. 2Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013Table of ContentsPage1. Introduction 32. What’s really driving the move to the cloud? 33. Dispelling some common myths 54. What’s holding businesses back? 65. Networked cloud services vs. physical data centres or colocation facilities 76. The network is computing - and computing is the network 87. Location, location, location 98. The case for Virtual Data Centres 109. Combining the benefits of public and private clouds 1110. Repositioning the role of infrastructure manager 1111. Selling cloud-based infrastructure services to the board 1212. Myth-busting - Cloud-based IT infrastructure delivery: why common objectionsdon’t stack up1413. Sources and Resources 15About the Sponsor, Interoute 16About OneStopClick 18
  3. 3. 3Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 20131. IntroductionIn almost every organisation, irrespective of its size and industry sector, IT infrastructure managers todayare grappling with the same challenges: how to transform IT efficiency; increase agility and flexibility; andlower overheads in such a way that performance, availability, resilience, data security and complianceremain under tight control. Yet, whatever consolidation and refresh initiatives they may be implementinginternally, their scope for transformation will continue to be limited as long as resources are kept withinthe boundaries of the organisation.It is in this context that some cloud-based services offer unprecedented scope for IT servicetransformation - allowing infrastructure managers to think very differently about how they source andprovision not just a handful of specialist applications, but a good proportion (if not the entirety) of theirIT infrastructures.The following white paper considers the growing potential of cloud-based IT infrastructure services, asinternal teams assess their potential for delivering the dynamic, efficient and robust environment nowdemanded by the business.It also addresses some of the common concerns associated with moving infrastructure services into thecloud, and looks at how to ‘future-proof’ the role of the infrastructure manager as assets are moved outof the organisation - showing that it is possible to let go and add value to the business.2. What’s really driving the move to thecloud?Probably the biggest barrier to progress in businesses today is the inefficiency of its IT. Unless theorganisation is new to market, unencumbered by legacy systems and ways of working, the ITinfrastructure is likely to have grown up as a sprawling mass of disparate and incompatible systems.The content they hold and process exists in silos – the technological equivalent of keeping money underthe mattress. This limits its value to the business. It also means that each application has its owndemands of hardware and support resources. To ensure adequate capacity and performance, systemswill have been over-specified to cater for peak demand and maximum loads. Most of the time howeverthere will be resources lying idle - resources that must be maintained and refreshed, at mounting cost tothe business. This is tantamount to pouring hard-won budget down the drain.Infrastructure inefficiency also manifests itself whenever the organisation tries to do something new –whether reorganising business units, rationalising office premises, acquiring companies, launching newventures, moving teams and individuals around, supporting flexible working, or rolling out newapplications. Complex knock-on implications soon create a backlog of projects. This prevents companiesfrom responding quickly to new opportunities or business threats, or from giving users the tools theyneed to do their jobs well and maintain the organisation’s competitive advantage.The Cloud Industry Forum, which in 2012 produced An introduction and guide to buying Cloud Services,sums up the situation under the heading Why Cloud Services for IT delivery? It notes:
  4. 4. 4Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013“When it comes down to basics, the Cloud is about resolving a fundamental paradox: IT systems areamongst the most adaptable tools available to businesses, particularly in meeting fast changing businessrequirements, but they are expensive to acquire and maintain, typically absorbing some 70-80 per cent ofany business’ annual IT budget. Meeting that cost becomes a major inhibitor to companies making rapidchanges to the way they do business. Yet we live in times when the ability to make rapid changes tobusiness plans and processes is becoming ever more vital.”In the optimal scenario, enterprise-class cloud-based infrastructure provisioning should offer everythingon the infrastructure manager’s priority list:Access to a highly agile, adaptive and responsive infrastructure that is in turn highly efficient andcost-effective to run;Support for unparalleled mobility and scalability;Rapid speed to market with the latest applications and service innovations;Optimal control over security and compliance; andThe ability to implement discrete utility-based charging by business unit or function……While at the same time elevating the position of the infrastructure manager to that of a heroand strategy influencer within the organisation.It is for this reason that growing numbers of organisations are prepared to make the leap now.In 2012, Gartner predicted high growth in cloud infrastructure services between now and 2016 (PublicCloud Services Forecast Q2 2012 – see chart). Itestimated that spending on IT outsourcingservices would reach $251.7 billion (£166 billion)during 2012, with the fastest-growing segmentbeing cloud compute services - part of the cloud-based infrastructure as a service (IaaS) segment.(Source: Gartner Says Worldwide IT OutsourcingServices Spending on Pace to Surpass $251 Billionin 2012, August 2012.)Analyst firm Canalys has highlighted the rise ofcloud computing for facilitating a more dynamicand cost-efficient IT set-up.According to Alex Smith, a senior analyst at thecompany, “Cloud computing… will continue todisrupt established patterns of IT purchasingbehaviour. The management of hardware andsoftware traditionally conducted in-house willincreasingly be transferred to third-partyproviders, with resources charged for on an on-demand, metered basis.This transition is already well underway in manypublic sector organisations, particularly in Europewhere government spending is being reshaped by
  5. 5. 5Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013the ongoing economic challenges.” (Source: Data center infrastructuremarket will be worth $152 billion by 2016, Canalys, July 2012.)Analytics is another driver of data centre investment, Canalys has noted.“Different organisations, with different interests…will require large datawarehouses and the ability to analyse vast quantities of information. Theneed to routinely process exabytes of data will become common.” Canalys’scomments followed its findings that data centre transformation was to beone of the three key trends driving IT growth in 2012 - the others being theconsumerisation of IT and enterprise mobility.Ovum, which tracks enterprise use of cloud services through its CloudServices Business Trends Survey, warns that enterprises should considerhow their peers are adopting cloud computing. Of the 200 CIOs and ITmanagers who responded to the Ovum survey in the second quarter of2012 (from across the UK, France, Germany and the US), 54% said theirenterprises were already using software-as-a-service (SaaS), 44%infrastructure-as-a-service (IaaS) and 27% platform-as-a-service (PaaS).Primarily organisations were looking for cost cutting, but increased businessagility and improved business processes were also common goals. Themajority of respondents expected cloud services to have an effect on theirsourcing strategies in three primary areas: altering IT operations andprocesses; restructuring existing IT services contracts; and encouragingthem to consider using a service integrator.3. Dispelling some common mythsFor every company that is moving positively towards the cloud forinfrastructure delivery there will be another that continues to hang back.To the teams responsible for implementing and maintaining internal ITsystems, and delivering the levels of service required by the business, theprospect of letting go can be a daunting one. Change is unsettling and,when the subject is the IT infrastructure that underpins the entire business,it is understandable that its custodians will have reservations aboutadopting new delivery models.On one level, there are likely to be concerns about exposing theorganisation to new sources of vulnerability and risk as data is entrusted toexternal servers and run across unknown networks. On another, there maybe fear about the impact the new strategy will have on the infrastructuremanager’s role, and on its perceived value to the business.Ovum confirms that the biggest impediments to cloud deployment and usecontinue to be concerns about data security and regulatory compliance. Yetthis is to suppose that all external services are equal, and that the way theyPrimarilyorganisations werelooking for costcutting, but increasedbusiness agility andimproved businessprocesses were alsocommon goals.
  6. 6. 6Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013are configured and managed is significantly different – and inferior – to the way that internal datacentres are run today.Source: Ovum, StraightTalkIT, Q2 2012Fears about where data is held, how resources may be shared with other companies, and how tomaintain performance levels from outside the organisation are irrational and emotional. They are alsounjustified now that highly sophisticated enterprise-grade IT infrastructure services are readily availablewhich address all of these points comprehensively, with robust controls.The confusion arises because there is a lack of clarity about how existing infrastructure functions.4. What’s holding businesses back?The typical internal IT infrastructure is mired in complexity; costly and cumbersome to manage; and theopposite of dynamic and agile. Any on-premise server that is not fully utilised represents a costly wasteof resources. Extrapolate that across the entire company, and the inefficiencies are likely to assumestaggering proportions.It is in this context that an organisation’s interest in cloud-based systems and services will typicallyoriginate. An overwhelming sense that sourcing IT this way will be cheaper and more cost-effective isborne out time and again by analyst research and real customer case studies.
  7. 7. 7Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013Yet there is often reticence to go all out and apply a remote delivery modelto the company’s underlying infrastructure. Instead, organisations may lookat data centre consolidation and internally shared services involving servervirtualisation as means of driving greater efficiency. But they remain nervousabout letting physical assets and data storage move outside of the companyfirewall. A psychological need to see where the boxes sit and ‘touch’ the dataseems to stop infrastructure managers cementing the benefits of cloudservices.And yet a company’s applications and IT systems and the network they runacross are inextricably linked. They are intrinsically co-dependent. Formaximum benefits then, infrastructure managers need to review the waythat ALL of these resources are run and managed. Utility-based computing is100% viable today and it is only by reassessing every component part of theIT service that teams can hope to achieve optimal efficiency, performance,flexibility and resilience.Where infrastructure managers feel restricted by custom-built legacyinfrastructures, those limitations will be even more keenly felt if they insiston remaining tied by them. From a maintenance and support perspective,and in the interests of progress and competitive responsiveness, individualityisn’t a good thing. It may have served the business well to have grown its ITestate organically and with a custom-build approach over time, but theresult now is that changing and updating it is slow, expensive and a barrierto innovation.In the interests of consolidating resources, and facilitating greater mobilityand general agility, it is important to consider where to put IT services if thedecision is to centralise them. Ideally, consolidated services should be sitedso that facilities are equidistant from the dispersed national or internationaluser base. Ultimately that means placing systems and data ‘in the network’.5. Networked cloud services vs.physical data centres orcolocation facilitiesWhere servers and switches are concentrated at the corporate HQ or in aparticular office branch, the company’s costs increase because of theadditional access costs required – and the need to replicate services fordisaster recovery purposes. At the same time, the dependence on a givenlocation will limit the organisation’s mobility and freedom to redirectresources. The reason Salesforce.com as a business application has achievedsuch mainstream popularity is because users can readily access thecapabilities and associated data from wherever they are. Traditional ITdelivery models don’t allow for this kind of corporate agility.A psychological needto see where theboxes sit and ‘touch’the data seems tostop infrastructuremanagers cementingthe benefits of cloudservices.Ideally, consolidatedservices should besited so that facilitiesare equidistant fromthe dispersed nationalor international userbase. Ultimately thatmeans placingsystems and data ‘inthe network’.
  8. 8. 8Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013Colocation facilities have their limitations too. This type of hosting allows anorganisation to retain ownership of its server equipment but, instead ofhousing this on their own premises, they use rented rack space at a third-party data centre or ‘colocation hosting’ facility. While this option mayappeal to organisations that are nervous about relinquishing control, it hasseveral limitations at an enterprise level, especially where ultimate costefficiency and agility are the main goals. Downsides include high upfrontcosts; the continued burden and expense of owning and maintainingequipment (and now in a separate location); difficulties budgeting forvarying bandwidth use; and a lack of flexibility over locations (for example ifthe company moves and still wants ready, local access to its ICT equipment).A more flexible and cost-efficient option is to create a ‘virtual’ data centrewhich exists in and is controlled via the network.6. The network is computing - andcomputing is the networkIf the prospect of distributing data centre resources across an externalnetwork sounds new it should be remembered that any enterpriseoperating a wide-area network and/or serving users from a consolidateddata centre has already entrusted IT services to this scenario.Optimised corporate networks have existed for more than a decade, usingintelligent virtual circuits (most commonly MPLS-based) to provide anenterprise-calibre managed network backbone over an IP network. MPLSensures that consistently high levels of performance are maintained andthat data is transported securely. It is routinely used in the most sensitive ofenvironments.Where external traffic movement is managed by a network service providerspecialising in enterprise-grade MPLS services, infrastructure managers canhave complete confidence in their rights to their data and their control overwhat happens to it. The alternative is to create workarounds to the WANwhen consolidating data centre activities, with great expense andinefficiency.Analyst firm IDC describes MPLS as the ‘lynchpin of enterprise WANconnectivity’. It takes a virtualised approach to network traffic, ensuringlogical separation between content. It is inherently multi-tenanted which isa good thing – making it efficient to use and manage, while keepingeverything where it should be and preventing distinct sets of traffic frominterrupting each other’s flow.Its potential for facilitating robust and reliable ‘virtual’ IT delivery, then, isconsiderable. Content separation makes it impossible for traffic from oneA more flexible andcost-efficient option isto create a ‘virtual’data centre whichexists in and iscontrolled via thenetwork.
  9. 9. 9Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013customer domain to enter another’s, preventing data leakage and boostingthe case for shared cloud services. This in turn gives companies access togreater scalability and superior cost efficiency.7. Location, location, locationResilient, optimised MPLS backbone networks, backed by comprehensiveservice-level agreements (SLAs), offer significant scope for delivering secure,reliable access to cloud-based infrastructure, platforms and applications toenterprises.Over the last 10 years, these robust external networks have multiplied incapacity and access speeds, enabling companies to place as much of their ITestate into the cloud as they would comfortably like to – without having totake a gamble on truly ‘public’ platforms.Enterprise-class MPLS backbone networks are the key to enterpriseinfrastructure as a service (IaaS) provision and the concept of the highlydynamic and cost-efficient ‘virtual data centre’.Having controls over where data resides is crucial in an enterprise context,both from a compliance perspective (for example if industry sector-specificregulations dictate that sensitive customer data is not allowed off nationalsoil, and because of the potential impact on access speeds.It is important, then, that IT departments are able to specify where data canand can’t reside - and have complete control over it, because it remainsentirely their data - while at the same time are able to maximise locationsfor access efficiency.Even if data can be transmitted at the speed of light across fibre networks,the download speeds between different locations will always vary due tolatency. When the cloud is built inside a fit-for-purpose network, on theother hand, the ability to influence performance is vast because there is nowan opportunity to use the operator’s ‘fast lane’ for little or no cost. Bypairing dedicated networks with sophisticated network managementtechnologies such as MPLS, traffic to and from a cloud can be givenadditional controls too – for example, enabling private cloud levels ofsecurity but providing a level of convenience and economic efficiencyusually associated with the public cloud.It is important, then,that IT departmentsare able to specifywhere data can andcan’t reside - andhave complete controlover it, because itremains entirely theirdata
  10. 10. 10Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 20138. The case for Virtual Data CentresIn an Infrastructure-as-a-Service (IaaS) scenario, the cloud-based servicebeing provided will include virtual server space, network connections,bandwidth, IP addresses and load balancers. Physically the pool of hardwareresource is pulled from a multitude of servers and networks usuallydistributed across numerous data centres, all of which the cloud provider isresponsible for maintaining. The enterprise customer, on the other hand, isgiven access to the virtualised components to build their own IT platforms.Using a scalable, fully automated, enterprise-ready infrastructure-as-a-service(IaaS) solution, organisations can look to establish a ‘Virtual DataCentre’ (VDC) – an optimally distributed IT infrastructure based in the cloud,which is highly cost-effective to run, and offers maximum flexibility.A VDC provides on-demand computing, storage and applications - integratedinto the heart of a company’s IT infrastructure, but delivered via an externalnetwork. It replaces the need to buy, manage and maintain physical ITinfrastructure, tapping into the managed service provider’s physical datacentres nationally and internationally (and the best ones have strict controlsover where data can and can’t go, where this is an issue for companies). Toensure enterprise-class performance and consistent service levels, the diversedata centres need to be inter-connected by high-speed fibre links, ensuringaccess speeds.When identifying a service provider there are a number of key criteria tolook out for to ensure an enterprise-class experience that delivers all of thebenefits of a virtualised, cloud-based infrastructure with minimal risk.These include:Security. This should be built into the fabric of the MPLS network.Ownership. Look for a provider that owns and manages its ownfacilities in all of the locations you require, so you can be sure you areworking directly with the underlying infrastructure provider. You don’twant to have a situation where your provider’s provider is the causeof your service issues.Transparency and compliance. Make sure your provider is industry-certified and clearly communicates where your data will be hosted -down to the specific data centre. This will give you completeconfidence that data remains within the designated country, withcomplete visibility and access control.Integration options. Look for use of trusted, advanced networkingtechnologies so that there are no limitations to additional expansionof your corporate IT infrastructure.An open architecture. Check that the underlying architecture thatenables the VDC is based on open standards to ensure a continuous‘best in class’ service well into the future.Using a scalable,fully automated,enterprise-readyinfrastructure-as-a-service (IaaS)solution,organisations canlook to establish a‘Virtual DataCentre’ (VDC) – anoptimally distributedIT infrastructurebased in the cloud,which is highly cost-effective to run, andoffers maximumflexibility.
  11. 11. 11Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 20139. Combining the benefits ofpublic and private cloudsAn enterprise-grade Virtual Data Centre (VDC) will share most of thecharacteristics and cost efficiencies of a public cloud, but with the vitalassurances of an MPLS/IP network - combining scalable elastic computingwith the most trusted network technology.An optimal VDC should offer the virtual equivalent of building a real physicaldata centre, allowing infrastructure managers to plan their servers, switchingand storage in the same way they would plan the real thing in the physicalworld. This should give infrastructure managers the confidence they need tomake the transition to a cloud-based delivery model, and to do this quicklyand efficiently without a pronounced learning curve or cultural adjustment.The big difference in the new scenario is that they pay only for what theyuse, eliminating the upfront investment costs of the data centre. Andbecause the facilities exist in more than one place, high availability andresilience are an inherent part of the solution – yet at the same time there isno cost for the network between the data centres, or for data transfer to andfrom storage systems.With the right VDC proposition, the advantage of hosting a data centre inthe network compared to creating an isolated physical data centre attachedto the internet, or one with a handful of agreements with third-partyexchange providers, is that organisations can choose to harness ‘private’ or‘public’ cloud infrastructures as appropriate – from the same secure andflexible base.10. Repositioning the role ofinfrastructure managerOne of the main emotional reasons that internal teams are anxious aboutmoving IT infrastructure into the cloud is a fear that, in so doing, they willsomehow downgrade their role or even make themselves redundant. Butthis isn’t a rational concern, especially given the alternative - which is tocontinue allocating hard-won capital budget, and internal talent, to coreinfrastructure maintenance instead of front-line innovation.For all the media coverage devoted to corporate agility over the last decade,a great many enterprises – indeed, especially larger enterprises – havestruggled to make much headway in achieving this. In an October 2012Special Report, Corporate agility: Six ways to make volatility your friend,consultancy firm Accenture notes that it has never been easy for large,complex organisations to be nimble. Nearly half of the 674 executivesThe big difference inthe new scenario isthat they pay only forwhat they use,eliminating theupfront investmentcosts of the datacentre.
  12. 12. 12Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013Nearly half of the674 executivessurveyed globally inan Accenture studyreported littleconfidence in theircompanies’ ability tomobilise quickly tocapitalise on marketshifts or to servenew customers.It is unlikely that thissituation will changeas long as anorganisation remainsengrained in old waysof delivering andmanaging IT.surveyed globally in an Accenture study reported little confidence in theircompanies’ ability to mobilise quickly to capitalise on market shifts or toserve new customers. Half did not believe their culture adaptive enough torespond positively to change, and 44% weren’t certain that their workforceswere prepared to adapt to and manage change through periods ofeconomic uncertainty.In a study by the Economist Intelligence Unit (Organisational agility: howbusiness can survive and thrive in turbulent times), more than a quarter ofrespondents felt their organisations were at a disadvantage because theyweren’t agile enough to anticipate fundamental marketplace shifts.It is unlikely that this situation will change as long as an organisationremains engrained in old ways of delivering and managing IT.Indeed, where technologists have aligned themselves more closely withdelivering business solutions rather than technology, believing that this willsafeguard their future, this has created a new danger. By disassociatingthemselves with the specifics of the way networks and cloud servicesoperate, they may be closing themselves off from new opportunities -because they haven’t kept pace with the latest advances. In this sense, theymay be failing rather than responding to the business.A final word of caution is to consider whether peers within competitororganisations may be pursuing a different path and thereby gaining anadvantage. Even in government and across the public sector, and in othersectors including known for their conservatism such as financial services,cloud-based infrastructure services are rapidly taking centre stage asorganisations recognise the overwhelming arguments in favour of newmodels - ie in enabling superior agility, mobility, productivity and cost-efficiency.11. Selling cloud-basedinfrastructure services to theboardBy now the arguments for exploring and exploiting alternative IT deliverymodels should be stacking up very strongly, based around hard cost savingswhere savings typically start at 30% on new hardware provisioning, and awhole series of strategic softer benefits which are directly aligned with topbusiness priorities.Not only can infrastructure managers position cloud as an enabler foralmost all of the transformative change the business is demanding, theyshould also be spelling out just what will happen to the organisation if itcontinues to ‘wait for more proof’.
  13. 13. 13Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013In an industry that moves as fast as this one does, time waits for nocompany and every year lost to indecision could set the business back byfive years competitively. Where the future is unknown, an organisation’s beststrategy is to be prepared for anything. Being embroiled in a complex,inefficient infrastructure that is slow to adapt and costly to manage is notthe way to achieve that.Finally, there is plenty of evidence to support cloud-based IT provisioning inthe form of real case studies with measurable returns on investment. Theseare widely available on the Internet. (See also the Sources & Resourcessection on page 15)
  14. 14. 14Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 201312. Myth-bustingCloud-based IT infrastructure delivery: why common objections don’t stack upThe myth: The cloud offers some potential, but only for web hosting or specific applications.The reality: Not true. In fact, to limit your vision in this way could create more of a problem thanthese solutions solve. The real challenge for enterprises is about managing infrastructure. Movingto hosted applications may simply shift the problem, and create a new set of relationships that nowneed to be managed. Unless you tackle the infrastructure too, your strategy will remainfragmented and inefficient, and you’ll have limited control over performance, security and datahandling.The myth: The cloud is less secure than on-premise IT delivery.The reality: If this is the case you should axe your provider. The reality of course will depend onwhat security process and systems you currently have in place and the controls available from yourcloud-based infrastructure service provider. Security is predominantly down to people and processrather than technology, and a successful provider will have more experience of looking after moreservices than an internal IT department so will have tighter processes in place.The myth: Regulatory requirements on data handling make the cloud unusable.The reality: This depends on where the cloud is hosted. If you opt for a provider that lets youselect which data centre you use and in which country, and one that offers the right type of service,you will have full control over where the data goes, what happens to it and who can get near it.The myth: Once data is in the cloud, anyone can get at it from anywhere on any device.The reality: This level of flexibility can be provided certainly, but with the right service provider thiswill be strictly under your organisation’s control - through the use of access policies to determinepermissions by geography, device and even network type.The myth: If we use the cloud it will open the floodgates for stealth IT.The reality: Not if you govern it properly. Set firm parameters and rules as part of your strategy.The myth: If everything’s on the network, what happens if the connection fails?The reality: Networking is the simplest, most economic and proven way to securely scaleenterprises and is already responsible for a vast proportion of the way computing is run today, andexternal controls are more robust and advanced than ever. When was the last time the Internetstopped working? It is the corporate access to it that is the weakest link. If you have on-premisecomputing and the connection to the network fails, your entire organisation is blind. If it’s in thenetwork, on the other hand, it’s likely that it will be still working.The myth: If the CIO agrees to move our core infrastructure to an external service provider, my jobwill be under threat.The reality: On the contrary – this is your chance to add unprecedented value foryour organisation, by future-proofing its infrastructure and creating a platform forrapid, flexible innovation. If, on the other hand, you don’t come up with a new planfor dynamic, cost-efficient IT delivery, your job will almost certainly be under threat.
  15. 15. 15Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 201313. Sources & ResourcesManaging data center growth: Consolidate, colocate or move to cloud?, TechTarget:http://searchdatacenter.techtarget.com/tip/Managing-data-center-growth-Consolidate-colocate-or-move-to-cloudGartner Identifies the Top 10 Strategic Technology Trends for 2013, October 2012:http://www.gartner.com/newsroom/id/2209615Gartner Says Worldwide IT Outsourcing Services Spending on Pace to Surpass $251 Billion in 2012, August 2012:http://www.gartner.com/newsroom/id/2108715Gartner Says Worldwide Cloud Services Market to Surpass $109 Billion in 2012, September 2012:http://www.gartner.com/newsroom/id/2163616Gartner Public Cloud Services Forecast 2Q12 Update:http://www.gartner.com/id=2064615Gartner Outlines Five Cloud Computing Trends That Will Affect Cloud Strategy Through 2015, April 2012:http://www.gartner.com/newsroom/id/1971515The Business Landscape of Cloud Computing, Gartner/Financial Times, May 2012:http://www.ft.com/cms/5e231aca-a42b-11e1-a701-00144feabdc0.pdfData center infrastructure market will be worth $152 billion by 2016, Canalys, July 2012:http://www.canalys.com/newsroom/data-center-infrastructure-market-will-be-worth-152-billion-2016Heading for the Cloud - Why cloud services will be the foundation for business technology enablement & What enterprisecustomers want from cloud computing, StraightTalkIT, Ovum, Q2, 2012:http://ovum.com/wp-content/uploads/2012/03/STQ_IT_2Q12.pdfOrganisational agility: how business can survive and thrive in turbulent times, Economist Intelligence Unit:http://www.eiu.com/site_info.asp?info_name=orgagilityWill the Enterprise App Store Change the Way We Purchase Technology Forever?, Interoute:http://kc.interoute.com/sites/default/files/white-papers/Will%20the%20Enterprise%20App%20Store%20Change%20the%20Way%20We%20Purchase%20Technology%20Forever.pdfOrganisations will focus on datacentre efficiency in 2013, says Ovum, Computer Weekly, November 2012:http://www.computerweekly.com/news/2240171905/Organisations-will-focus-on-datacentre-effieiciency-in-2013-says-OvumCorporate agility: Six ways to make volatility your friend, Accenture Special Report, October 2012:http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2012-corporate-agility-six-ways-to-make-volatility-your-friend.aspxPredicting a Cloud Outlook for 2013, ESJ, July 2012:http://esj.com/articles/2012/12/07/predicting-cloud-outlook-2013.aspxAn introduction and guide to buying cloud services, Cloud Industry Forum, 2012:http://www.cloudindustryforum.org/downloads/whitepapers/CIF-Guide-to-buying-Cloud-Services.pdfVirtual Data Centre and Security, an Interoute white paper:http://www.interoute.com/sites/default/files/resources/node-attachments/Product/interoute_virtual_data_centre_and_security_whitepa_71787.pdfCase study: Cloud computing underpins UEFA business strategy, Computer Weekly, July 2012:http://www.computerweekly.com/news/2240159071/Cloud-computing-underpins-Uefa-business-strategyCase study: Advantive cuts build and operational costs by 30% with Interoute Virtual Data Centre:http://www.interoute.com/news/advantive-cuts-build-and-operational-costs-30-interoute-virtual-data-centre
  16. 16. 16Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013About InterouteInteroute Communications Ltd is the owner operator of Europe’s largest cloud services platform, whichencompasses over 60,000km of lit fibre, 10 hosting data centres and 31 collocation centres, withconnections to 140 additional third-party data centres across Europe.Our full-service Unified ICT platform serves international enterprises as well as every major Europeantelecommunications incumbent and the major operators of North America, East and South Asia,governments and universities. These organisations find Interoute the ideal partner for computing,connectivity and communications and developing new services.Interoute’s Unified ICT strategy has provedattractive to enterprises looking for ascalable, secure and unconstrained platformon which they can build their voice, video,computing and data services. It also appealsto service providers requiring high-capacityinternational data transit and infrastructure.With established operations throughoutmainland Europe, North America and Dubai,Interoute also owns and operates dense citynetworks throughout Europe’s majorbusiness centres.About Interoute’s Virtual Data Centre (VDC)Interoute’s Virtual Data Centre (VDC) is a highly scalable, fully automated Infrastructure-as-a-Service(IaaS) solution. It provides on-demand computing, storage and applications integrated into the heart ofan organisation’s IT infrastructure.Interoute VDC is the first cloud computing solution that can be deployed with the simplicity andconvenience of the public cloud, combined with the security and confidence that a private cloud brings.The ability to offer fully automated public and private cloud on the same platform makes VDC unique.Interoute Virtual Data Centre combines computing virtualisation in the cloud with network virtualisationon the ground. It delivers a virtual IT infrastructure as a fully automated online service and connectsacross Europe using Interoute’s virtualised MPLS fibre-optic network.With VDC, infrastructure managers don’t have to spend time and effort installing and managing firewallsbetween Virtual Data Centres, because all data traffic is inherently secure as it moves between them. Thisadvanced technology gives organisations the choice between having VDC delivered as a private cloudservice via their corporate VPN, or as a cloud service via the public Internet - or both.
  17. 17. 17Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013The individual Interoute VDC data centres are not isolated but are built into Interoute’s vast pan-European network. This means we don’t charge our customers for any data transfers in and out of theirVDCs or between VDC zones.Interoute VDC is the virtual equivalent of a real physical data centre, offering companies the samecontrol and resource as they would have in their own data centre - but without the cost of equipment,power, colocation, network and manpower.Within your Interoute Virtual Data Centre you can choose to build your server, switching and storing inexactly the same way as you would in the physical world. You can specify RAM, CPU and storage tocreate any desired configuration, and as often as needed. This allows infrastructure managers to add newapplications, services and customers in line with internal demand.Interoute VDC has all the benefits expected from a cloud - computing infrastructure, elasticity, pay-as-you-go pricing and real-time deployment. But Interoute VDC is not simply a cloud of virtual servers. It isa completely new approach to designing and operating a secure computing solution, which offersorganisations an actual data centre they can control at a click on Europe’s largest cloud computingplatform.Interoute Virtual Data Centre is a truly unique cloud computing platform – the first withoutcompromises.To take a free trial of the Interoute VDC visit cloudstore.interoute.comFor more informationVisit us www.interoute.comhttps://twitter.com/interoutehttp://www.linkedin.com/company/interoute
  18. 18. 18Survivors’ Guide to the Cloud: Making Alternative Infrastructure Services Work for the IT DepartmentOneStopClick White Paper | Sponsored by Interoute © 2013About OneStopClickOneStopClick is an independent publisher of news, articles, white papers and technology-relatedresearch helping IT professionals and business executives achieve better business outcomes.For more informationVisit us www.onestopclick.comCall us +44 (0)844 243 5670

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