Measure Twice, Cut Once: 5 Best Practices For Selecting Your Cloud Service Providers

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So, you’ve defined your cloud strategy, developed the business plan, published your cloud application roadmap, and got buy-in from all the stakeholders. Now comes the hard part – selecting your cloud service providers and partners!

Many companies are finding out the hard way that while the cloud is a simple concept, beneath the billows lays a complex application delivery chain with many hidden dependencies and unforeseen business risks. And with the business demanding faster and faster ‘time-to-value’, you have less time to do more, often without good information. The net result is your risk of choosing the wrong cloud service provider is significant. It could even reduce or eliminate the planned business benefits and ROI.
So how can you ensure that your selection process for cloud service providers and partners is fast but well-informed, based on reliable data and mitigates the risk of hidden surprises?

Join EMA and Compuware in this webinar and discover:
• Where to find reliable, actionable data on CSP performance and availability
• What factors you should take into account that are unique to you
• Whether SLAs matter when it comes to selecting a CSP
• How to identify hidden dependencies and unforeseen risks
• How to do cost-effective, real-world performance testing of CSPs

Published in: Technology, Business
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Measure Twice, Cut Once: 5 Best Practices For Selecting Your Cloud Service Providers

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  3. 3. Five Steps to Managing Your CloudService Providers for EffectiveApplication Delivery Dennis Drogseth Vice President Enterprise Management Associates September 8, 2011 © 2011 Enterprise Management Associates, Inc.
  4. 4. Agenda • Where and why cloud adoptions are changing • Step One: Assess your application/infrastructure design requirements • Step Two: Map your application/infrastructure design requirements to cloud/ hybrid options • Step Three: Assess your monitoring requirements • Step Four: Select cloud service providers based on design needs, reputation and willingness to partner • Step Five: Manage your cloud SPs as participants in a broader application/service ecosystem. • ConclusionSlide 4 © 2011 Enterprise Management Associates, Inc.
  5. 5. 70% of Respondents have had to RETHINK orREDIRECT Initial Deployments 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% Sample Size = 155 Column %Slide 5 © 2011 Enterprise Management Associates, Inc.
  6. 6. Of These, Process, Technology Adoption, and Application Development Dominate Which changes has your org made/anticipate to rethink and/or redirect the original cloud initiative? Changes in process and process flows 47% Changes in management technology adoption 41% for provisioning services managing… Changes in application development and 40% design Changes in management technology adoption 39% for service performance management Changes in how services are accounted for 36% from a cost perspective Changes in how cloud and/or virtualization 36% deployments are initiated Changes in how cloud and/or virtualization 33% initiatives are measured for effectiveness Changes in organizational ownership 26% Other (Please specify) 1% 0% 10% 20% 30% 40% 50% % Valid Cases (Mentions / Valid Cases)Sample Size = 138
  7. 7. Step One: Assess your Application/Infrastructure Design RequirementsSlide 7 © 2011 Enterprise Management Associates, Inc.
  8. 8. Application/Infrastructure Design RequirementsCut Across Domains • Database(s) • Storage • Application Server (s) • Middleware Server(s) • Mainframe • Web 2.0 and other services – e.g. credit card validation • Network interdependencies – local and WAN • Devices – application acceleration, load balancing , etc. • DNS, Active Directory, and other services Note: SaaS can be private as well as public. And even public SaaS options, along with public IaaS and PaaS options, need to be understood in terms of overall application ecosystem design.Slide 8 © 2011 Enterprise Management Associates, Inc.
  9. 9. And Can Include Many Different Types ofComponent Interdependencies Which of the following environments pertain to your company’s Web-based business applications? Select all that apply. Java 77% .NET 61%Virtual Server environments (VMWare, Xen, etc.) 61% VPN 59% Wireless 56% Virtual Application environments (Citrix, etc.) 50% Mobile 50% Virtual Desktop Infrastructure 40% Cloud Services 37% SaaS 37% Thin client 34% Cellular 33% AJAX 31% Content Delivery Networks 29% MPLS 22% Ruby on Rails 16% Other (Please specify) 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Sample Size = 119, Valid Cases = 119 % Valid Cases (Mentions / Valid Cases)Slide 9 © 2011 Enterprise Management Associates, Inc.
  10. 10. Who YOU are Matters • Manufacturing: more focused on industry-specific apps and less focused on CRM/ERP than average, supports a wide range of technical environments – e.g. SaaS, virtualization CDNs. • Retail: more likely to track Web abandonment rates and is asked to share information with suppliers Tracks competitors’ performance more than average. • High Tech/Computer: favors Corporate Web sites and SOA, Tracks competitors’ performance, and more focused on sharing information with external customers, and favors social networking. • Healthcare: strong on industry-specific applications and back office (ERP CRM), favors SaaS, is asked to share information with external customers, suppliers and partners more than average. • Finance: more likely to view Web applications as critical, naturally focuses most on financial transactions, is least likely to go for Cloud and social networking.Slide 10 © 2011 Enterprise Management Associates, Inc.
  11. 11. Step Two: Map yourApplication/Infrastructure DesignRequirements to Cloud/HybridOptionsSlide 11 © 2011 Enterprise Management Associates, Inc.
  12. 12. IaaS and PaaS show more Organizational and Maturity Dependencies than SaaS What cloud computing service model(s) has your organization deployed, or is planning to deploy? Select all that apply. by... Software as a Service (SaaS) – a fully-functional 76.56% pre-built application environment is delivered by the (internal/external) cloud provider 76.92% TitlePlatform as a Service (PaaS) – an environment for 31.25% application development and deployment isdelivered by the (internal/external) cloud provider 43.96% Infrastructure as a Service (IaaS) – only basic 29.69% system or machine-level resources are delivered by the (internal/external) cloud provider 45.05% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Sample Size = 155, Valid Cases = 155 Without X-Domain With X-Domain Slide 12 © 2011 Enterprise Management Associates, Inc.
  13. 13. Map your Application/Infrastructure Design toCloud and Hybrid Options • Internal Cloud versus External Cloud versus Virtualized Infrastructure only versus Physical Infrastructure • SaaS, IaaS, Paas • Plan A • Plan B • Virtualized = ??? • Look before you leapSlide 13 © 2011 Enterprise Management Associates, Inc.
  14. 14. Cloud is also Impacting Application Design Criteria Indicate the top 2 technologies for building cloud services not including systems virtualizationVirtual Desktop Infrastructure 56% Web Services 49% Web 2.0 technologies 41% New application APIs 35% Configuration libraries 19% 0% 10% 20% 30% 40% 50% 60% Sample Size = 155 % Valid Cases (Mentions / Valid Cases) Slide 14 © 2011 Enterprise Management Associates, Inc.
  15. 15. Step Three: Assess your MonitoringRequirementsSlide 15 © 2011 Enterprise Management Associates, Inc.
  16. 16. Some Overall Monitoring Objectives • Pre-deployment and Dev/Ops • Scalability • Geographical variance and mobility • SLM/ SLAs • User Experience Management • Business impact • Multi-dimensional Transaction awareness • External ratings and rankings • And Understand WHO’s Doing the MonitoringSlide 16 © 2011 Enterprise Management Associates, Inc.
  17. 17. Web-based and other Application Monitoring Requirements Don’t Go Away Which of the following is your company actively monitoring in support of Web-based applications performance? Select all. Load balancing/ traffic management 71% Web analytics (tracking how people use your Web site) 67% Performance of Web applications used internally 66% Financial transactions 57% Data on your competitors’ performance 45% Suppliers (for manufacturing; healthcare; retail, etc.) 44% Integrations with third-party Web sites (e.g. travel reservation 42% systems)SaaS (e-commerce packages integrated into your Web site, such 41% as SalesForce.com,) Cloud infrastructure performance 39% Geographically specific content 35% Ad-serving 24% Mashups 23% CDN performance 22% Other (Please specify) 2% 0% 20% 40% 60% 80% Slide 17 © 2011 Enterprise Management Associates, Inc.
  18. 18. Service Management Dashboards with AdvancedAnalytics Deliver Especially Strong Value • Dashboard plus analytics best in ALL areas but especially: • 1.8 times more likely to reduce management complexity • 1.4 times more likely to reduce capital costs via cloud • 1.7 times more likely to free up resources for strategic projects • 1.9 times more likely to improve service resilience via cloud • 1.4 times more likely to accelerate deployment of existing services via cloud • 1.4 times more likely to increase infrastructure flexibility and agility via cloud • 1.8 times more likely to expand revenue channels via cloud • Twice as likely to deliver business model enhancements via cloudSlide 18 © 2011 Enterprise Management Associates, Inc.
  19. 19. 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 29.73% Title 48.53% 51.47% 70.27% Sample Size = 142 Increased Flat/Decreased Increased Flat/DecreasedSlide 19 © 2011 Enterprise Management Associates, Inc.
  20. 20. Step Four: Select Cloud SPs Based onDesign Needs, Reputation andWillingness to PartnerSlide 20 © 2011 Enterprise Management Associates, Inc.
  21. 21. Selecting for Design, Reputation andWillingness to Partner • Who are they? • What do they offer? • What SLAs do they offer • What are their security guarantees? • What is your effective access to them when things go wrong? • Are they (at all) willing to partner with you or do they manage their clients as commodities?Slide 21 © 2011 Enterprise Management Associates, Inc.
  22. 22. Security, Overall Performance, and SLA Commitments Lead Cloud SP Selection Criteria What are your top decision factors when choosing a cloud computing service provider (external cloud)? Security, risk, or compliance strengths 63% Proven performance 55% Willingness to commit to SLAs 43% Low cost 43% Willingness to support your need to monitor 28% Diversity of services 28% Willingness to provide data-level access 21%Willing to work with other cloud service providers 20% Other (Please specify) 1% 0% 10% 20% 30% 40% 50% 60% 70% Sample Size = 155 % Valid Cases (Mentions / Valid Cases) Slide 22 © 2011 Enterprise Management Associates, Inc.
  23. 23. Check All that Apply! • Which are you using Cloud Service Providers for? (check all that apply) • Mission critical customer-facing applications • Production ERP applications • Partner/ supply chain, or other community application environments • Back office niche applications • User productivity applications • Messaging and collaboration applications • Off-site Web hosting • Platforms for application test and development • Remote database • Remote storage • Full remote infrastructure support • Trying out new apps to see if they’re usefulSlide 23 © 2011 Enterprise Management Associates, Inc.
  24. 24. Step Five: Manage your Cloud SPs asParticipants in a BroaderApplication/Service EcosystemSlide 24 © 2011 Enterprise Management Associates, Inc.
  25. 25. Web-based Application Ecosystems areIncreasingly on the Rise How would you describe the role of Web-based applications for your business/organization? They are an essentialpart of our business or 51% servicesThey are an importantpart of our business or 49% services 0% 10% 20% 30% 40% 50% 60% Column % Sample Size = 119Slide 25 © 2011 Enterprise Management Associates, Inc.
  26. 26. Information Sharing Across Web-based ApplicationEcosystems Provides Relevant Insights into Cloud Which of the following groups are actively asking you to share Web-based applications performance information? Select all.Internal between IT and 66% the lines of business Internal relevant IT 62% groups Internal on-line 43% operations External partners 39% External customers 38% External suppliers 35% 0% 10% 20% 30% 40% 50% 60% 70% % Valid Cases (Mentions / Valid Cases) Sample Size = 119, Valid Cases = 119Slide 26 © 2011 Enterprise Management Associates, Inc.
  27. 27. Ecosystem Monitoring and Control ConcernsReflect Overall Cloud Concerns What are the obstacles that you foresee in monitoring cloud-related services? Select all that apply. Security vulnerabilities 65% Lack of visibility 49% Overall lack of control 47% Lack of unified SLAs 47% Lack of accountability 44% Managing the service provider politics 40% beyond the technologies Unique API requirements 35% Support for virtualized environments 33% Other (Please specify) 5% 0% 20% 40% 60% % Valid Cases (Mentions / Valid Cases) Sample Size = 119, Valid Cases = 43Slide 27 © 2011 Enterprise Management Associates, Inc.
  28. 28. How to Manage Your Cloud Providers as a Part ofan Extended Application Ecosystem • Cloud contracts can have shorter durations- - this is Cloud “Shopping Mall” and let them know it • Use Cloud to try out new services – who’s and what’s right for you? • Have multiple options – who’s performing best today? • Revisit the term “stakeholders” – if you feel their stakeholder is their lawyer, maybe not the right choice. • Formalize process expectations in the contract—they will if you don’t – be proactive . • In parallel, publish what you’ve got– define your services to YOUR customers, so you can manage their expectations. • Seek out and external resources for validating poor performance and document your concerns • Manage them as RESOURCES for YOUR application servicesSlide 28 © 2011 Enterprise Management Associates, Inc.
  29. 29. Thank you for attending.Slide 29 © 2011 Enterprise Management Associates, Inc.
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  31. 31. W ^ ^ W Insure all stakeholders have a seat at the table, including Dev Test Choose cloud model(s) based on both technical business requirements Implement a cloud performance monitoring strategy from Day 1 Evaluate CSPs based on your IT design goals and business needs Insure performance goals by continuously monitoring the end user experience
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  48. 48. t t Cloud Private Public Local Data Center ISP WIs it my Is it an s Is it a W Is it a t ^ data ISP or 3rd party browser ^ ^ ^ DD /^W center ^ the provider oror WAN? Internet? ? device? E E Mobile t D t E Carrier ^ K
  49. 49. d W D E Simulate hundreds of thousands of concurrent users, or millions of page views per hour by leveraging Gomez’ network of public Cloud data centers and Last Mile Peers /Run load tests with real IE and FFbrowsers or choose from over 500 mobile devices
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  51. 51. Y^ Additional Resources Available To Download SUMMARY OF EMA “OPERATIONALIZING COMPUWARE PAPER “THE WORLD IS NOT FLAT: HOW CLOUD” REPORT APPLICATION LOCATION INFLUENCES USER EXPERIENCED
  52. 52. 53 © 2011 Compuware Corporation — All Rights Reserved

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