5 Best Practices for Successful Cloud Deployments – and the Pitfalls to Avoid

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Companies that rely on enforcing Service Level Agreements (SLAs) from their Cloud Service Providers to manage the performance of their cloud applications are increasingly discovering that they are failing to meet their business objectives. The reality is that by the time an SLA has been missed, your end users and customers have already been severely impacted, resulting in poor adoption and missed revenue opportunities.

Successful cloud deployments require real-time visibility of application performance and service level trends across the entire delivery chain – from first mile (your data center) to last mile (your users). This insures that companies are able to detect problems anywhere in the delivery chain, before end users, customers, and your business are impacted.

This webinar will provide evidence of the revenue impact of poor cloud application performance and service level management, and will present an integrated cross-domain services and application performance management strategy that will dramatically improve the business results that you achieve with Cloud Computing. The information will be of use to anyone who is responsible for the successful execution of their company’s cloud strategy, both in the line-of-business and IT.

Dennis Drogseth, Vice President, Enterprise Management Associates, Inc and Richard Stone, Compuware’s Cloud Solutions Manager talk about:

• Research results showing how and where companies are benefitting most, and conversely where they’ve had issues, or had to rethink and redirect their cloud initiatives
• Best practices to adopt – and pitfalls to avoid – that will enable you to get cloud deployments right the first time from both a process and an APM perspective

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5 Best Practices for Successful Cloud Deployments – and the Pitfalls to Avoid

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  3. 3. Best Practices in Optimizing theCloud Ecosystem Dennis Drogseth Vice President Enterprise Management Associates April 28, 2011 © 2011 Enterprise Management Associates, Inc.
  4. 4. Agenda • Patterns of Cloud adoption • Gains, benefits and issues • Best Practice Number One • Changes, changes, changes • Cloud as a catalyst • SLM in Cloud adoptions (internal and external) • Best Practice Number Two • Best Practice Number Three • Why SLM and UEM is good for you anyway • A Brave New World? • Best Practice Number Four • Best Practice Number Five • ConclusionSlide 4 © 2011 Enterprise Management Associates, Inc.
  5. 5. Demographics for “Operationalizing Cloud” • 250 employees and above with 50% at 10,000 or more and 26% at 20,000 or more • But 27% had fewer than 2,500 • 26% C-level, 57% director-level and above • Leading verticals: Financial Services, Healthcare, Manufacturing, and Government • 66% U.S., 17% EMEA, 16% APAC • IT budgets range from 7% less than $1 million to 16% more than $100 million • 60% of IT budgets rose and only 17% decreased compared with a 45% decrease in 2009. Source: Enterprise Management AssociatesSlide 5 © 2011 Enterprise Management Associates, Inc.
  6. 6. Patterns of Cloud Adoption: 2009-2011Slide 6 © 2011 Enterprise Management Associates, Inc.
  7. 7. A Few Meteorological Trends • 33% viewed Cloud as essential – up 5% from last year. • 32% as important up 12% from last year • SaaS grew to be present in 77% of environments, up 10% • PaaS and IaaS were relatively flat at 39% penetration • Completely satisfied is up 8% to 37% and • Somewhat satisfied is flat at 54% • Only 1% is somewhat dissatisfiedSlide 7 © 2011 Enterprise Management Associates, Inc.
  8. 8. Hybrid Environments Still Dominate with Private Cloud Leading Public Significantly In terms of your organization’s Cloud deployments, which statement best describes what stage your organization is at today? Mostly internal / private cloud 36% About half and half internal / external 27% Mostly external / public or community cloud 17% Completely internal / private cloud 15%Completely external / public or community cloud 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Sample Size = 155 Column % Slide 8 © 2011 Enterprise Management Associates, Inc.
  9. 9. BEST PRACTICE 1: KNOW why you’re going to Cloud inthe first place and get agreement on your top objectives • Capital expense savings • Faster time to deploy existing services • Operational expense savings • Faster time to create new services • Reduced complexity of IT management • Enable disaster recovery/ business continuity • Improved service resilience/ performance • Resources freed for strategic work • Business model enhancements and revenue generationSlide 9 © 2011 Enterprise Management Associates, Inc.
  10. 10. 7 Barriers to Cloud Adoption 1. Difficulty or cost of implementation, migration, or integration 2. Human/political issues (no management support, difficulty with provider, unclear responsibilities, etc.) 3. Lack of flexibility and agility (e.g. fixed offerings, vendor lock-in, no API standards, etc.) 4. Degraded or uncertain regulatory compliance posture 5. Degraded security and/or risk outcomes 6. Increased operational costs of IT management 7. Inadequate tools or processes for effective IT managementSlide 10 © 2011 Enterprise Management Associates, Inc.
  11. 11. Changes, Changes, Changes…Slide 11 © 2011 Enterprise Management Associates, Inc.
  12. 12. 70% of Respondents have had to RETHINK orREDIRECT Initial Deployments Q32_1 Do you believe, or did you discover, that once begun, Cloud initiatives required rethinking and/or redirection before the... Yes 70% No 21%Don’t know 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sample Size = 155 Column %Slide 12 © 2011 Enterprise Management Associates, Inc.
  13. 13. Business Dialog and X Domain Emerge as Most Dominant Change-related Trends In the past 2 years, which organizational or process change is the single most dominant impact your organization experien...IT became more engaged with its business clients 27% Moved towards a more cross-domain 20% management focusRe-evaluated how we work with service providers 15% We have not experienced any organizational or 13% process changes Operations took back control of initial cloud 7% service deployments Adapted ITIL disciplines and best practices 7% IT became less engaged with its business clients 6% Moved away from ITIL disciplines and best 3% practices Other (Please specify) 1% 0% 5% 10% 15% 20% 25% 30% Sample Size = 155 Column % Slide 13 © 2011 Enterprise Management Associates, Inc.
  14. 14. IT Organizations Without SLM are More than 1.6Times More Likely to Show Flat/Declining Budgets What was the percentage increase or decrease of your organization’s annual IT budget from last year to this year? Grouped by Service level management With Service level Management Without Service level Management Title 29.73% 48.53% 51.47% 70.27% Increased Flat/Decreased Increased Flat/Decreased Sample Size = 142Slide 14 © 2011 Enterprise Management Associates, Inc.
  15. 15. But SP SLAs May not Always Smell Like a Rose • Written by and for LAWYERS • Designed to protect the Service Provider first and foremost (Cloud is no exception) • SLAs are too often defined but what’s easily measureable and controlled and internal to the SP (not what’s business-relevant) • The MYTH of INVISIBILITY and why it’s bad for YOU • Cloud is supposed to be about flexibility- but contracts impose rigidity • Is your Cloud SP a Partner? • Or are they really just a Commodity?Slide 15 © 2011 Enterprise Management Associates, Inc.
  16. 16. BEST PRACTICE 2: Manage ACTUAL servicelevels, not just the SLAs the SP finds convenient Server Network • CPU utilization • Buffer miss ratio • CPU imbalance • Buffer utilization • Disk I/ O faults • CPU utilization • File cache miss rate • Line utilization • Paging • Faults • Swapping • Discard • Virtual memory utilization • Latency • Physical memory utilization • Network errors • Allocation failures • Error rate • System partition utilization • Packet loss • User partition utilization • Percent of frames delivered (frame relay network) *Metrics taken from actual SLAs between service providers and end users.Slide 16 © 2011 Enterprise Management Associates, Inc.
  17. 17. Some Key Metrics for Assessing the Performance and Impact of Cloud Services Which metrics is your org using/plans to use to monitor the performance of Cloud services? Select all that apply. Cloud service utilization 50%System or application availability (i.e. uptime) 49% Overall application response time 48% Network infrastructure performance 43% Security, risk, compliance, and data integrity 43% measurement Client-based transaction response time 37% Server-based transaction response time 35% Storage system I/O or response time 31% Service response time across multiple 29% transactions 0% 10% 20% 30% 40% 50% 60% Sample Size = 155 % Valid Cases (Mentions / Valid Cases) Slide 17 © 2011 Enterprise Management Associates, Inc.
  18. 18. Service Level Management can NeverthelessAccelerate the Values Achieved from Cloud SLM best in most areas but especially: • 1.3 times more likely to reduce operational costs via Cloud • 1.4 times more likely to improve service resilience via Cloud • 1.5 times more likely to accelerate deployment of new services via Cloud • 1.5 times more likely to increase infrastructure flexibility via Cloud • 1.8 times more likely to expand revenue channels via CloudSlide 18 © 2011 Enterprise Management Associates, Inc.
  19. 19. BEST PRACTICE 3: User Experience Managementeven more strongly accelerates values from Cloud • UEM best in ALL areas but especially: • 1.5 times more likely to reduce complexity of management via Cloud • 1.4 times more likely to reduce operational costs via Cloud • 1.4 times more likely to accelerate deployment of existing services via Cloud • 1.5 times more likely to increase infrastructure flexibility via Cloud • 1.8 times more likely to expand revenue channels via CloudSlide 19 © 2011 Enterprise Management Associates, Inc.
  20. 20. 84% of Business Respondents and 77% of ITRespondents saw UEM becoming MORE important Business All Other 11% 5% 21% 2% 77% 84% more important to our organization. more important to our organization. less important to our organization. less important to our organization. neither more nor less important to our neither more nor less important to our organization; organization; it is staying about the same. it is staying about the same.Sample Size = 207Slide 20 © 2011 Enterprise Management Associates, Inc.
  21. 21. The Brave New World?Slide 21 © 2011 Enterprise Management Associates, Inc.
  22. 22. BEST PRACTICE 4: Cloud doesn’t nullifygeography (or Pangaea was a long long time ago)Slide 22 © 2011 Enterprise Management Associates, Inc.
  23. 23. BEST PRACTICE 5: Understand the uniquechallenges of optimizing your ecosystem ECOSYSTEMS are: • Not new with Cloud • Include partners, service providers, supply chains, often with distinctive vertical flavors • Reshaping “best practices” • ITIL v.7 • Challenging traditional approaches for siloed managementSlide 23 © 2011 Enterprise Management Associates, Inc.
  24. 24. Conclusion • Cloud hype and Cloud realities are different • But Cloud services can nevertheless deliver many core values – so understand and get agreement on WHY you’re going to Cloud. • Cloud Service Providers – are still fundamentally Service Providers and so their SLAs are designed to be SELF PROTECTIVE • But strong Service Management capabilities – such as SLM and UEM can pay strong dividends anyway • Cloud may be revolutionary in some respects, but it can’t to nullify geography • Recognize the challenges of participating in an ecosystem – Cloud or otherwise – in order to optimize your optionsSlide 24 © 2011 Enterprise Management Associates, Inc.
  25. 25. Questions?Slide 25 © 2011 Enterprise Management Associates, Inc.
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