Over the past year, cloud computing underwent
a wave of increasing awareness and adoption
as many organizations became convinced it can
securely and effectively meet the demand for
improved IT efficiency.
The TranSformaTive BenefiTS White Paper Seriesof Cloud ComPuTing
2 The Transformative Benefits of Cloud Computing 3 The Transformative Benefits of Cloud Computing Over the past year, cloud computing underwent Trend: Outsourcing Infrastructure a wave of increasing awareness and adoption Across the business landscape, companies have been seeking greater efficiency by tapping into the investments that IT service providers continue to make in infrastructure, as many organizations became convinced it can automation, and technology. These organizations want to get out of the business of owning and maintaining their own infrastructure, and cloud computing has been securely and effectively meet the demand for picked up in the current. improved IT efficiency. The results from an August 2010 survey by Yankee Group confirm the trend, with 24 percent of large enterprises with cloud experience saying they are already using Cloud computing has proliferated so rapidly because, when compared to a Infrastructure as a Service (IaaS), and an additional 37 percent expect to adopt IaaS dedicated IT environment, it delivers businesses higher levels of information during the next 24 months. availability, and increased staff productivity, at a lower cost. IaaS adoption will only accelerate as cloud offerings evolve and new security enhancements With a virtualized, secure infrastructure that is scalable and reliable, an organization and service improvements are introduced. The varied cloud solution technologies and gains the benefits of a shared IT infrastructure without having to implement and standards will continue to converge, as well, to better address customer needs. administer it directly, taking the pressure off IT staff. For both corporate and At the root of the growing business interest in cloud is the return an organization can governmental IT departments immersed in the struggle to control cost, execute realize on its investment in Infrastructure as a Service. However, differing approaches to daily maintenance responsibilities, and support mission-critical activities, this calculating a return on investment (ROI) will yield differing outcomes. The best approach efficiency has been the key selling point. an IT organization can take to determining the ROI of its investment in cloud computing It took years for virtualization to gain wide business acceptance. Cloud computing, is a comprehensive one. Although a drop in CapEx is one of the big benefits of cloud, by comparison, is showing a much swifter ramp-up. That’s in large part because a comprehensive approach looks beyond just a reduction in capital expenditures. so many organizations already rely so heavily upon virtualization—and because A thorough ROI analysis will consider the IaaS solution from several angles, including the business benefits of cloud are more immediately clear. the strength of the service provider, and the effect that cloud’s inherent scalability will have on cost. Interactive Video Further Reading Click here to watch a demonstration of SunGard Check out these SunGard white papers for more insight into moving Enterprise Cloud Services. toward effective and reliable cloud services. aVaIlabIlITy SeRVICeS CLOUD COMPUTING White Paper Series White Paper Series KEY CONSIDERATIONS FOR White Paper Series Cloud InfRaSTRuCTuRe LEVERAGING VIRTUALIZATION Resiliency is the Key to Success The Real Value of Cloud Computing Key Considerations for Leveraging Virtualization Our 21st century society has become so accustomed to changes and new Whether your business is involved with it yet or not, cloud computing will play and Keeping Your Applications Available developments that genuinely progressive concepts are initially not recognized a significant role in the future of IT: it has already been enthusiastically embraced Today’s IT organizations are faced with the daunting task of optimizing all aspects and adopted. Given time and an imperative economic justification, there is then by small and medium sized businesses and its potential is also being accepted and of their departments, including people, processes and technology. Optimizing and a rush to implementation once the benefits become obvious. Virtualization is exploited by larger enterprises. streamlining server utilization through virtualization represents one particularly a good example of this, with the technology available for a decade before its The purpose of this paper is to explore the view that any business seeking to exciting example. We found that one of the most popular usage models for benefits really became widely understood and appreciated. reap the benefits of cloud environments should not only look at the cost of cloud virtualization is to drive down server procurements in development, test and services but the value they provide. production environments. When this model is followed, future server purchases are avoided; instead, new workloads are established on existing systems. Enterprise Cloud Services Cloud Computing: Availability Services Key Considerations Resiliency is the Cloud Infrastructure: for Leveraging Key to Success The Real Value of Virtualization and Cloud Computing Keeping Your Applications Available
4 The Transformative Benefits of Cloud Computing 5 The Transformative Benefits of Cloud Computing The IT Benefits of Moving to Cloud Computing Key Considerations for Infrastructure as a Service As an organization considers migrating to an IaaS environment, it should note When developing an Infrastructure as a Service strategy, there are four key areas the following benefits that its IT department can realize: organizations should closely consider: 1. Simplified Cost and Consumption Model. One of an IT department’s fundamental 1. Business Assessment. IaaS will not replace everything in an internal computing objectives is to align its initiatives with core business needs, which include both cost environment. Just as many companies have a mix of Software as Service like salesforce.com reduction and support for mission-critical activities. Because cloud computing has a and internal systems like ERP, organizations will take a blended approach to infrastructure, cost structure that functions in many ways like a utility billing model, IT infrastructure as well. A good starting point is for the organization to conduct a cloud readiness becomes an operating expense. This allows the organization to reduce capital assessment to determine which applications have the best business and technical reasons expenditures and spending on hardware and applications to support non-core activities. for moving to the cloud. Next, the organization should develop a roadmap for efficient 2. Enterprise-grade Services and Management. Typically, between 70 and 80 percent migration that mitigates operational risks. of IT budgets are devoted to the maintenance of existing infrastructure. Cloud computing 2. Security. Just as in the early days of managed services when providers had to prove to offloads the burden of this massive overhead, freeing core IT resources to focus on customers they could address both physical and logical security, cloud providers must initiatives that drive revenue growth. demonstrate multiple layers of data protection for enterprise-grade security and application 3. Faster Provisioning of Systems and Applications. Traditional approaches to buying availability. For example, organizations should look for cloud environments that provide and configuring hardware and software are time consuming. Cloud computing provides dedicated virtual machines that are logically isolated and protected to secure data. a rapid deployment model that enables applications to grow quickly to match increasing 3. Compliance. Providers must demonstrate they have embedded the appropriate services, usage requirements. It can accommodate peak usage periods when a company needs controls, and procedures to support a customer’s compliance requirements and to help to scale up dramatically, such as a holiday season or special event. customers gain the confidence they need to move applications to a cloud environment. 4. Right-sizing to Address Business Changes. Cloud is elastic, and can contract as necessary Compliance standards are both universal, like Sarbanes-Oxley, and industry-specific, like to meet changing business needs. If a company over-provisions its in-house data center, it PCI DSS and HIPAA. A service provider should demonstrate its cloud environment and can’t scale back. With cloud, an organization can quickly and easily right-size its environment. processes address customer needs for both types. 5. Ease of Integration. An increasing number of enterprise applications require integration 4. Services and Service Level Agreements. Cloud computing is only truly beneficial with third-party applications that are often hosted outside the enterprise firewall. With when the right services are part of the solution. While many mainstream IaaS providers configuration flexibility, integrated security, and a choice of access mechanisms, cloud has offer an unmanaged, do-it-yourself cloud, some organizations require managed services, a natural ability to serve as both platform and integration fabric for these applications. backed by the appropriate service level agreement, to be part of the overall solution. An organization has to evaluate its specific needs as they relate to managed services 6. Highly Secure Infrastructure. By taking a system-based, as opposed to point-based, and consider service a key criterion when evaluating vendors. approach to security, cloud environments can handle security at every level—applications, middleware, operating system, compute/store/network, etc. This supports the security requirements of highly mobile users utilizing a variety of connection types to access the cloud from both secure and non-secure networks. 7. Compliant Facilities and Processes. Many midsize companies don’t have the resources in place to manage the audit and certification processes for an internal datacenter. Cloud providers with the ability to address both can help companies handle regulatory compliance. Real-world Success: Cycle30 8. Business Continuity and Disaster Recovery. Managing business continuity and disaster SunGard Availability Services has provided Cycle30 with a recovery internally requires a dedicated focus, so companies typically concentrate only combination of enterprise cloud computing, dedicated managed on the most critical applications. Utilizing cloud environments allows organizations to hosting and advanced recovery services. As a result of the blended safeguard their full IT infrastructure because the cloud’s inherent scalability integrates solution, Cycle30 is able to focus on customer service and business disaster recovery capabilities. growth without committing precious capital resources to expanding Customer CYCLE30 Success Story The benefits of cloud are transformative because, by replacing in-house infrastructure with CYCLE30 TURNS TO SUNGARD AVAILABILITY SERVICES; ENTERPRISE CLOUD SOLUTION RUNS ORDER-TO-CASH BILLING OPERATIONS CHALLENGE: and managing its datacenter to support operations. Cycle30 also has the information availability it needs to meet the demanding, Cycle30 launched its order-to-cash billing service and needed a fast, a scalable and efficient service, they allow an IT organization to move out of a functional role reliable, cost-effective way to boost application availability and create a growth path to meet anticipated customer demand. SUNGARD SOLUTION: SunGard Availability Services has provided Cycle30 with a combination of around-the-clock billing requirements of customers. enterprise cloud computing, dedicated managed hosting and advanced based on procurement and maintenance and toward a leadership role founded on guiding recovery services. As a result of the blended solution, Cycle30 is able to focus on customer service and business growth without committing precious capital resources to expanding and managing its datacenter to support operations. Cycle30 also has the information availability it needs to meet the demanding, around-the-clock billing requirements of customers. and participating in core business initiatives. At the same time, the infrastructure is stronger Download the case study. and more resilient, the IT organization is leaner and more efficient, and the core business scores a major financial, operational, and strategic win.