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Successfully Adopting the Cloud

Sponsored by:

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Table of Contents
Executive Summary..........................................................

03

The Changing Role of th...
Executive Summary
What you will learn:
o

Major technology trends in mature European markets
and their impact on the CIO r...
The Changing Role of the CIO
We have seen an enormous potential for the CIO to
bring innovation and breaking competitive e...
The Global Rise of Cloud Computing
Managing an in-house data center brings several challenges for IT leaders. According
to...
The Cloud Computing Potential
Cloud can be defined as a flexible and scalable shared environment that uses
virtualization ...
Market Awareness and Adoption Drivers
The market awareness of IaaS solutions is increasing. According to Frost & Sullivan
...
Adoption Trends
We started to test IaaS in 2012 and we are very satisfied
with the business agility we now have.
CIO – Hea...
Implementation Process
Creating a consistent cloud strategy is not an easy task. To ensure your company
gains full value f...
The Road Ahead
Cloud computing can be a powerful tool to help companies mitigate
business challenges. These include the ne...
Appendix

© 2012 Frost & Sullivan, Todos os direitos reservados
Este documento contém informações altamente confidenciais ...
The Power of Terremark, Cisco and EMC
Verizon Terremark’s Enterprise Cloud™(IaaS) relies on
best-in-class technology from ...
EMC is a global leader enabling businesses and service
providers to transform their operations and deliver ITas-a-Service....
About Verizon Terremark
A subsidiary of Verizon Communications Inc. (NYSE, NASDAQ:VZ), Verizon Terremark sets the standard...
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F&S whitepaper successfully adopting the cloud - europe

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Discover this Frost & Sullivan Study done in collaboration with Verizon , EMC and Cisco . What you will learn:
o Major technology trends in mature European markets and their impact on the CIO role.
o Cloud computing current adoption and potential.
o How to choose your cloud provider.

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Transcript of "F&S whitepaper successfully adopting the cloud - europe"

  1. 1. Successfully Adopting the Cloud Sponsored by: 1
  2. 2. Table of Contents Executive Summary.......................................................... 03 The Changing Role of the CIO.......................................... 04 The Global Rise of Cloud Computing............................... 05 The Cloud Computing Potential....................................... 06 Market Awareness and Adoption Drivers........................ 07 Adoption Trends.............................................................. 08 Implementation Process.................................................. 09 The Road Ahead............................................................... 10 Appendix.......................................................................... 12 2
  3. 3. Executive Summary What you will learn: o Major technology trends in mature European markets and their impact on the CIO role. o Cloud computing current adoption and potential. o How to choose your cloud provider. Western Europe hosts a mature IT market, where companies invest heavily in both services and software. In such markets, conventional data center services are already well established and experiencing moderate growth rates. Cloud computing is forecasted to present the fastest growth rate within data center services in mature economies, as technology investments are now being employed in “front office” activities such as mobility, social networks and communication. This shift from back office to front office investments is directly impacting IT leaders and positioning them as strategic decision makers within the company. In this context, CIOs must act as enablers of innovation, but they still have to deal with challenges such as capital budget constraints, high maintenance costs and growth of storage requirements. Cloud computing can be an IT department’s ally in mitigating these challenges, as the main drivers for cloud adoption are all business focused: cost savings, business continuity, scalability and avoiding data center expansion. In order to develop a consistent cloud strategy, a company must bear in mind that cloud implementation is complex and involves strategic areas of the business. As a result, it is important that companies venturing into the cloud have a well-defined long term Cloud strategy as well as a strategic partner that will not only provide cloud services, but will help the company find the best fit according to its unique needs. 3
  4. 4. The Changing Role of the CIO We have seen an enormous potential for the CIO to bring innovation and breaking competitive edges to our company. CIO – Retailer Technology leaders are increasingly facing two types of business challenges. On the one hand, the competitive global landscape requires greater efficiency and budget constraints, requiring the business to rein in spending and focus on margins. At the same time, new technologies create unprecedented opportunities to grow revenue, expand services, and enter new markets. It is left to IT to determine how to balance these two types of challenges: to simultaneously contract and expand operations, to build resources in some areas while cutting back in others. In addition, IT leaders still have to deal with operating issues, such as the need to support storage growth, strengthen business continuity and disaster recovery plans, meet IT governance requirements and ensure high levels of security in the IT environment. Technology Trends in Mature European Markets Anywhere, anytime, any device Social Business Consumerization of IT Globalization Data-driven decisions IT is no longer a supplier, but a strategic enabler of business growth Innovation The new IT department must create and deliver applications and business tools quickly, securely, cost-effectively, and with high levels of performance and availability. Source: Frost & Sullivan Over the last decade, businesses have made major investments in “back office” functionality. In the future, we will see a strong focus on the “front office” driving by trends such as mobility, social networks and communication. In this context, the concept of information technology is moving to business technology. IT leaders are taking strategic roles within the company, enabling business growth, providing better interaction with customers and helping to create competitive advantages. 4
  5. 5. The Global Rise of Cloud Computing Managing an in-house data center brings several challenges for IT leaders. According to Frost & Sullivan research, 40 percent of IT executives consider capital budget constraint as one of the most important challenge they face when managing a data center. High maintenance costs and growth of storage requirements were also considered constraints by 35 percent and 30 percent of the sample respectively. These and other challenges such as technology updates and slow performance of applications position IT infrastructure outsourcing as an alternative to mitigate the aforementioned problems and to enable IT leaders to focus on more strategic activities. Data center services are developing fast to meet the requirements of the new IT environment, and cloud computing has emerged as a game changer. Data Center Services Evolution Colocation Dedicated Hosting Disaster Recovery Storage SaaS IaaS PaaS Introduction Time Growth Maturity Decline Source: Frost & Sullivan Among data center services, cloud computing is the service that will experience the fastest growth rate, since enterprises will increasingly turn to cloud providers to avoid expanding or replacing their on-premises data center infrastructure, especially in a volatile economy. By utilizing the shared facilities of commercial data center providers, enterprises can limit their capital expenditures, while expanding their overall server resources. The burgeoning opportunities in the cloud have led providers of traditional data center services to add this business model to their portfolios. However, cloud economics are different from other data center services, such as co-location or managed hosting 5
  6. 6. The Cloud Computing Potential Cloud can be defined as a flexible and scalable shared environment that uses virtualization technologies to create and distribute computing resources to users on an as-needed basis, accessed via the Internet browser and delivered over a network. Cloud Computing Characteristics IT Architectures Pay per Use Browser-based client Distributed computing Cloud Computing √ √ √ Utility Computing √ Grid Computing Virtualization Tecnologies √ √ Software as a Service √ Platform as a Service √ Web Services √ Source: Frost & Sullivan The question is no longer whether to enter the cloud. If your company is serious about competing in the marketplace, the cloud represents your best way to transform IT to support your company’s most urgent business needs. Frost & Sullivan More than a technological revolution, Cloud Computing is the ultimate evolution of a series of environments and technologies, using pay per use characteristics of Utility Computing, distributed computing of Grid Computing, the scalability and efficiency of virtualization technologies and the browser-based client of a series of environments such as Software as a Service. There are three different models to deploy the Cloud: Public cloud: the infrastructure is hosted by a third-party provider and is shared among multiple customers. Each customer is charged for computing resources on a metered or pay-as-you-go basis. Private Cloud: computing resources are dedicated to a single enterprise, these resources are shared and allocated exclusively among the enterprise’s own applications. Private clouds can be either hosted by a third-party cloud provider, or be constructed in the enterprises’ own data center. Hybrid Cloud: relates to the combination of public and private cloud, in which, for example, the highly scalable and cost-effective shared environment of the public cloud can be used to run less mission critical workloads while the extremely vital and confidential information is run and stored in secure and individual private clouds. 6
  7. 7. Market Awareness and Adoption Drivers The market awareness of IaaS solutions is increasing. According to Frost & Sullivan research, from 2011 to 2012 the percentage of companies not familiar with the IaaS concept was reduced from 40 percent to 25 percent. Despite the increasing market awareness, 40 percent of the companies are still studying the benefits of IaaS adoption. While only 15 percent of mature market companies currently use IaaS, that adoption level is expected to grow within the next two years, given the stated intention of 20 percent of the companies to implement IaaS during this period. Top Drivers for Choosing Cloud Infrastructure Services Decreasing costs 55% Strengthening business continuity plans 38% Scalability 35% Preparing for disaster recovery 35% Improving security/compliance 25% Deferring/avoiding data center expansion 23% Shifting costs from capital to operating… 21% Deferring server purchases or upgrades 20% Earning a high ROI 19% Decreasing IT staff 15% Striving to "go green" -10% 11% 0% 10% 20% 30% 40% 50% 60% % of Respondents Source: Frost & Sullivan Sample size: 108 When thinking about adopting infrastructure services, the main driver is cost savings, followed by the need to ensure business continuity and creating a scalable environment. Other drivers include disaster recovery plans and avoiding data center expansion. As opposed to popular wisdom, which holds that security and compliance are hurdles to cloud adoption, Frost & Sullivan research shows that 25 percent of the companies believe that adopting cloud computing can increase security levels and compliance. Therefore, while security and compliance are still concerns when it comes to information and workloads hosted in the cloud, they do not always restrain IaaS adoption. 7
  8. 8. Adoption Trends We started to test IaaS in 2012 and we are very satisfied with the business agility we now have. CIO – Healthcare Industry Applications Deployed in IaaS Website hosting 44% Email 40% Backup storage 29% 39% Backup recovery 31% 36% CRM applications 31% Proprietary or custom apps 31% HR management 31% Desktop management 10% 34% 32% Archival storage 7% 43% 32% Collaboration or UC 10% 38% 36% Test and development 11% 6% 40% 5% 32% 6% 42% 9% 32% 27% 28% 6% 7% 40% 5% Tier 1 storage (high availability) 25% Seasonal or adhoc bursts 23% 33% 6% ERP applications 23% 32% 6% Short-term marketing programs 22% 32% 11% 0% 43% 6% 10% 20% 30% 40% 50% 60% 70% 80% 90% Currently Use and Plan to Continue Using Plan to Implement Within 2 Years Currently Use but Plan to Stop Using Within 2 Years Source: Frost & Sullivan Sample size: 108 Companies are increasing the number of applications they have placed in the cloud. In 2012 the average number of applications was five, while in 2011 it was only three and in the next two years that number is expected to double. Website hosting and email are still the main applications placed in the cloud. However, this scenario is expected to change in the next two years when backup storage and backup recovery become the most adopted applications. Tier 1 storage will receive significant investments within the next two years. Other applications such as CRM and Unified Communications are also likely to represent new, built-for-the-cloud software solutions. Nevertheless, so far enterprises have shown reluctance to tackle the challenge of migrating complex legacy systems to the cloud. 8
  9. 9. Implementation Process Creating a consistent cloud strategy is not an easy task. To ensure your company gains full value from the cloud, you must develop, implement, and manage a cohesive plan that covers not only current needs, but also future requirements Choosing a strategic partner that helps you in your journey into the cloud is a key factor for success. Most important Features or Attributes in Selecting a Cloud Provider Ease of migration to Cloud environment Availability (uptime) SLAs Low price Scalability Compliance assurance Application performance SLAs Easy to use management system Consistent pricing Ability to change Cloud providers easily SLAs for data loss or leakage Escalating tiers of security options SLAs for unauthorized access data Open source platform Billing options Separate services for storage and computing Integrated Platform as a Service Bursting from private data center to Cloud Integrated platform for all Cloud models Managed service options 38% 30% 28% 25% 19% 18% 16% 15% 15% 13% 12% 12% 11% 10% 8% 8% 7% 7% 6% 0% 5% Cloud is complex and touches strategic parts of your business. As such, make sure you have cloud partners that will invest time in developing cloud processes that fit the unique needs of your company. Frost & Sullivan 10% 15% 20% 25% 30% 35% 40% % of Respondents Source: Frost & Sullivan Sample size: 108 Fifty-three percent of the companies prefer cloud and network services from a single provider. On average companies currently use two cloud service providers and plan to add a third provider within the next two years. This may be due to a lack of perceived value associated with centralizing cloud activity with a single provider or problems in finding the right provider match. When respondents were asked to name their top three criteria for selecting a cloud provider, fourteen different attributes emerged. This shows that there is still lack of consistency in what the market is looking for in a cloud provider. The most important aspect selected by respondents was ease of migration. This relates to IT managers’ concerns about the risks of cloud migration. Other most important factors, including availability, price and scalability, highlight companies’ intentions to partner with providers who help them to mitigate business challenges, such as cost structure, security and compliance. 9
  10. 10. The Road Ahead Cloud computing can be a powerful tool to help companies mitigate business challenges. These include the need for availability and security while increasing flexibility and scalability, as well as demand for less complex and easy to manage environments. Despite its benefits, cloud implementation is complex and involves strategic areas of the business. When defining its cloud requirements, a company should bear in mind that the cloud is not an one-time initiative, but an ever evolving journey. Therefore in order to ensure a successful and consistent cloud strategy it is important to develop a plan that encompasses both current and future needs and adopt a strategy that enables the company to move into the cloud at its own pace . Furthermore, companies should carefully select a cloud partner and not merely a provider. A cloud partner can help to develop the roadmap that will cut through the complexity of cloud decisions, while understanding the company’s specific needs in order to deliver the right level of service required. Key Recommendations for CIOs regarding Cloud Don’t forget: Cloud is a Business Enabler Assemble a team. Focus on Business benefits of Cloud Computing. Don’t forget Cloud will have a positive effect on both CFO and CEO’s business objectives. Partner with Security & Networking Experts Security & Networking are King in the Cloud Era. Start Small – you need quick wins to grain traction Cloud Computing is not a “one size fits all” technology. Clients will have different uses for Cloud Computing, so start small. 10
  11. 11. Appendix © 2012 Frost & Sullivan, Todos os direitos reservados Este documento contém informações altamente confidenciais e de propriedade exclusiva da Frost & Sullivan. Nenhuma parte pode ser divulgado, citado, copiado ou reproduzido sem a autorização por escrito da Frost & Sullivan. 11
  12. 12. The Power of Terremark, Cisco and EMC Verizon Terremark’s Enterprise Cloud™(IaaS) relies on best-in-class technology from renowned partners like EMC and Cisco. Connectivity is provided by more than 160 carriers and supported by its global data center footprint. Enterprise Cloud combines the power and flexibility of infrastructure-as-a-service with the agility, security and availability that large, SMB and government organizations with mission-critical computing needs demand of their infrastructure. An easy-to-use, Web-based, management interface provides command and control over a cloud-based resource pool of compute, storage and network built on a fully clustered enterprise-class computing architecture featuring virtualization technology from VMware, computing from Cisco, storage from EMC and housed in Verizon Terremark’s secure, top-tier datacenters. Additionally, Enterprise Cloud provides a highly secure foundation for managing business applications with an architecture designed to help meet today's critical compliance and certification requirements, including SAS-70 Type II Audits, PCI-DSS and Safe Harbor. For customers requiring more comprehensive security services on the cloud, Verizon Terremark has a team of information security experts to determine the security posture that is appropriate for specific cloud environments. Today’s leaders are looking for Cloud solutions to help them create and expand new markets. Cisco Unified Computing —along with Unified Fabric and Unified Management solutions—form the Unified Data Center, Cisco’s platform for changing the economics of the data center. Cisco Unified Data Center provides an agile, efficient and simple platform designed for deploying IT as a service and cloud computing securely and cost effectively. Cisco is connecting the world of many clouds. Unified Computing: Cisco’s next-generation Unified Computing System (UCS), unites computing, network, storage access, and virtualization into a single integrated architecture designed to reduce total cost of ownership (TCO) and increase business agility. Cisco UCS servers and racks were created to be virtualized and to support cloud computing. Cisco UCS servers are based on x86 architecture and use the processing power of Intel Xeon processors. The UCS servers deliver extremely high performance, ideal to support mission-critical activities, and combined with its simplified and unified architecture, promote increased IT productivity and reliability as well as an excellent cost-performance ratio. Cisco USC servers enable automatic deployment and configuration of the infrastructure. Unified Fabric: Cisco Unified Fabric solutions provide an open evolutionary approach and architectural flexibility to meet the needs of dynamic virtualized and cloud-based environments. Unified Fabric delivers network services to servers, storage, and applications, providing transparent convergence, scalability, and sophisticated intelligence. Solutions include: Cisco multilayer data center switches, Cisco Nexus® and Catalyst® switches, Cisco Fabric Manager, and Cisco NX-OS Software Unified Management: Cisco Unified Management simplifies and automates IT provisioning with policy-based management delivering physical and virtual resources on-demand for greater flexibility and agility. It provides improved productivity of IT staff and reduces the risk of failure due to inconsistent configurations. 12
  13. 13. EMC is a global leader enabling businesses and service providers to transform their operations and deliver ITas-a-Service. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset – information – in a more agile, trusted and cost-efficient way. An important step on the journey is to leverage service providers to gain the most of what IT does best and what service providers do better. Infrastructure: A cloud infrastructure built on a software-defined data center foundation can help customers achieve efficiency and agility benefits. To transform infrastructure, customers need to start building a virtualized infrastructure that can not only store their data, but also provide protection in the form of more efficient and effective backup and disaster recovery, better security, as well as disaster avoidance and protection. Operating model: As IT transforms its operations to run IT-as-a-Service, its role will also transform – from an exclusive provider of IT services to a broker of IT services – both internal and from service providers. IT will need to acquire new skills as new roles emerge within the organization. In addition, new processes need to be established to maximize the efficiency and adoption of the new operating model. Applications: With a transformed infrastructure, IT can virtualize mission-critical applications, move existing applications onto virtual infrastructures without disruption, and deliver greater efficiency and agility. Modernizing existing applications and building new applications using software lifecycle automation techniques, customers become proactive and can rapidly take advantage of new opportunities. The Combined Value Proposition The combined value proposition of the Verizon Terremark, Cisco and EMC partnership puts together cuttingedge technologies to provide clients with improved business agility, greater efficiency and cost control, while supporting their journey to the cloud. Frost & Sullivan Verizon Terremark, Cisco and EMC have developed tailored cloud computing solutions which leverage Verizon Terremark's data center infrastructure, Cisco’s high performance UCS servers and EMC's best-of-breed storage, back up, and replication technologies. This strategic alliance utilizes Verizon Terremark, Cisco and EMC’s world wide presence enabling global reach in terms of supply chain, support and product innovation. Partnering with enterprise-class vendors like EMC and Cisco who have a well established technological roadmap as well as a focus on product innovation allows Verizon Terremark to continuously enhance its services with new and cutting edge technologies. The partnership between Verizon Terremark, EMC and Cisco has resulted in a platform based on the best-of-breed technology from each company, creating a combined value proposition second to none. 13
  14. 14. About Verizon Terremark A subsidiary of Verizon Communications Inc. (NYSE, NASDAQ:VZ), Verizon Terremark sets the standard for IT deployments with advanced infrastructure and managed service offerings that deliver the scale, security, and reliability necessary to meet the demanding requirements of enterprises and governments around the world. With a global network of data centers and a comprehensive portfolio of secure solutions, Terremark is helping enterprise and government executives realize the power and promise of the cloud today. About Cisco Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. One of Cisco's key differentiators has been our ability to capture market transitions which drive innovation that enables our customers' long-term success. At the heart of these transitions - cloud, mobility, video, any device and social - is the network. Cisco’s vision is to become our customers' most strategic business partner by delivering intelligent networks and technology and business architectures built on integrated products, services, and software platforms which enable our customers' success. Cisco has shaped the future of the Internet by creating unprecedented value and opportunity for our customers and ecosystem partners and has become the worldwide leader in networking - transforming how people connect, communicate and collaborate. About EMC EMC employs approximately 53,500 people worldwide. We are represented by approximately 400 sales offices and scores of partners in more than 85 countries around the world. We have the world's largest sales and service force focused on information infrastructure, and we work closely with a global network of technology, outsourcing, systems integration, service, and distribution partners. We are a publicly traded company, listed on the New York Stock Exchange under the symbol EMC, and are a component of the S&P 500 Index. In 2011, EMC was included in the Dow Jones Sustainability Index (DJSI) for North America, which tracks the financial performance of leading sustainability-driven companies. We are committed to acting in a socially and environmentally responsible manner and to being an attentive and thoughtful neighbor in our local and global communities. We score at the top, or near the top, of regional rankings of the best places to work. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting, and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents. For more information about Frost & Sullivan’s Growth Partnership Services, visit http://www.frost.com 14

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