Navigating your path
to cloud success:
A study of rogue
workloads, vendor lockin, and cloud conflicts

Executive Summary
A...
Conflict of the Cloud
There’s little question that cloud technology is maturing. In a survey of nearly 2,000 IT leaders
co...
At least four out of five respondents report the flexibility and simplicity of current
cloud solutions need at least some ...
Lack of flexibility
Sixty percent of survey respondents also say they sometimes have to adjust the end goal of
cloud proje...
Performance
Customers would also like to see improvement is performance of cloud applications, with 73%
saying some or sig...
Rogue deployments were an issue early on at BerylHealth, but the company addressed the issue by
putting governance procedu...
Disparity in expectations
When cloud projects are not sanctioned by IT they tend to have different end goals in mind. Inde...
Wanted: A True Partner
If they are to make the most of cloud, however, CIOs need to avoid the pitfalls that the IDG
Resear...
Getting Cloud Right
Addressing these issues is paramount if CIOs are to successfully implement cloud and meet
their own bu...
The numbers are in
Simple and secure cloud solutions
from Dell

Organizations use
Dell Cloud storage for
7.52 billion 5,00...
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Navigating Your Path to Cloud Success: A Study of Rogue Workloads, Vendor-Lockin, and Cloud Conflict

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There is little question that cloud is getting attention across business and IT. Unfortunately, business and IT often have conflicting views and goals for cloud. Our respondents also report issues such as confusion when researching cloud deployment options and having to adjust goals in midstream when a solution does not work as expected. Many business unit, driving by goals and customer needs, often ‘go rogue’ and pursue their own cloud applications and platforms. The CIOs often are struggling under the weight of multi-cloud integration.

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Navigating Your Path to Cloud Success: A Study of Rogue Workloads, Vendor-Lockin, and Cloud Conflict

  1. 1. Navigating your path to cloud success: A study of rogue workloads, vendor lockin, and cloud conflicts Executive Summary As organizations adopt cloud technology at a steady pace, they are encountering issues that threaten to derail the benefits cloud can bring. A survey by IDG Research Services reveals that organizations face confusion in researching cloud options, forcing them to adjust goals and search for more flexible and open cloud solutions that can help them prevent vendor lock-in. What’s more, the survey shows a disconnect between IT and business users regarding the intended goals of a cloud deployment. It’s clear that companies could use an independent third party to help guide them through the ambiguity surrounding cloud and get all stakeholders pulling in the same direction, to ensure cloud projects fulfill their potential and meet business goals.
  2. 2. Conflict of the Cloud There’s little question that cloud technology is maturing. In a survey of nearly 2,000 IT leaders conducted in 2012 by IDG Enterprise, more than half said they had at least one cloud application already deployed and another 25% said they planned to deploy within a year. By the end of this year, fully three-quarters of the respondents will likely have cloud applications deployed. With that kind of adoption rate, it’s no surprise that some issues are arising, as illustrated by another, more recent survey conducted by IDG Research Services on behalf of Dell. Respondents report issues such as confusion when researching cloud deployment options and having to adjust goals in midstream when a solution does not work as expected. The survey also makes it clear that business executives and IT often have dramatically different—and potentially conflicting— goals for cloud deployments. Further, the survey finds that organizations are seeking more flexible and open cloud solutions, to ease fear of vendor lock-in and help them meet internal requirements. Companies are also grappling with “rogue” cloud deployments that originate outside the IT department, often with different security standards and end goals in mind. Two-thirds of respondents admit that researching various cloud deployment options is a confusing process. Three out of five agree their organizations sometimes need to adjust the end goal of cloud projects due to rigid solutions. Researching various cloud deployment options is sometimes confusing. Sometimes we need to adjust the end goal of our cloud projects due to limitations or lack of flexibility with the cloud solution. My organization has had difficulty finding a cloud vendor who can easily match their solutions to our business goals. Fear of vendor lock-in is inhibiting cloud deployments at my organization. 25% 14% 21% 17% 43% 39% 31% Strongly Agree Somewhat Agree Somewhat Disagree 12% 4% 66% 26% 42% 17% Strongly/ Somewhat Agree 11% 4% 60% 13% 8% 53% 19% 8% 52% 26% 21% Neither Agree nor Disagree Strongly Disagree SOURCE: IDG Research Services on Cloud Strategy 2 Navigating your path to cloud success
  3. 3. At least four out of five respondents report the flexibility and simplicity of current cloud solutions need at least some improvement to meet their standards. Significant/ Some Improvement needed Flexibility (choice of standards or platforms, ability to work with multiple vendors or platforms, works with existing installed technology) 38% 49% 7% 2% 87% Simplicity (integrates easily, streamlines management, deploys quickly) 38% 46% 10% 2% 84% 20% 2% 73% Performance (speed, scalability, security, efficiency, reliability) 33% 40% Significant improvement needed Some improvement needed Little improvement needed No improvement needed SOURCE: IDG Research Services on Cloud Strategy The survey results make it clear that CIOs need an overarching strategy for dealing with cloud applications in order to make the most of the technology, and to ensure they meet their business as well as personal career goals. Using a third-party provider to offer vendor-neutral expert advice, along with some crucial tools to address areas such as integration and security, can greatly help CIOs achieve their cloud objectives. IT Issues with Cloud The issues with respect to cloud begin with selecting a solution; indeed, two-thirds of respondents to the IDG Research Services survey say researching various cloud deployment options is sometimes confusing. John Ragsdale, CIO with BerylHealth, a hospital services provider based in Bedford, Texas, is one of those respondents. While he does not have much trouble researching providers, he says it can be confusing to compare the various licensing and pricing options for cloud solutions with what it would cost to build the same solution in-house. “ ith the cloud W option everything is included in one price, so you have to parse it out [in order to get an applesto-apples comparison].” —John Ragsdale CIO BerylHealth “With the cloud option everything is included in one price, so you have to parse it out [in order to get an apples-to-apples comparison],” he says. “We’ve had to go through that analysis.” The company started using software-as-a-service (SaaS) applications in 2011 and currently uses Salesforce.com to provide cloud-based customer relationship management, marketing, project management, reporting, and more. It also uses cloud-based solutions from Oracle for chat, Microsoft Dynamics GP for enterprise resource planning, and additional vendors for its data integration and single sign-on. BerylHealth is not alone in evaluating and using multiple cloud-based applications. In such situations, it may be useful to hire a third-party partner to perform an unbiased evaluation of the build vs. buy equation and to compare vendor offers in a meaningful way. 3 Navigating your path to cloud success
  4. 4. Lack of flexibility Sixty percent of survey respondents also say they sometimes have to adjust the end goal of cloud projects due to limitations or lack of flexibility of a vendor’s cloud solution. Similarly, 53% say they have had difficulty finding a provider who could match their solutions to the company’s business goals. BerylHealth struggled early on with getting Salesforce.com to meet its needs. “We customized the application function quite a bit,” Ragsdale says, noting he initially used an independent contractor to help. “He didn’t grasp the concept. So we had to work with Salesforce and their professional services people.” It took some time, but now the company is happy with the results and continuing to build new applications upon the Salesforce platform. “Without any open standards, you’re in bed with whoever’s integration or tool, or whatever it is you’re using.” —Randy Cairns CIO American Enterprise Group As his experience shows, although SaaS solutions are touted as “out of the box” solutions that users can simply drop into their enterprise, in practice it often takes work and budget to align the solution with a company’s particular business processes and existing applications. Fear of vendor lock-in Another difficult issue with cloud is fear of vendor lock-in, which 52% of survey respondents either somewhat or strongly agree is inhibiting cloud deployments at their organizations. Only about onequarter of respondents say they have no problem with the issue. “Vendor lock-in is a big concern,” says another survey respondent, Randy Cairns, CIO with American Enterprise Group, an insurance company in Des Moines, Iowa. He has about 450 employees using a SaaS-based CRM application and all of the company’s 600 employees use a cloud-based human resources administration application. Firms can mitigate some of the vendor lock-in risk by picking providers that support industry standards and standards-based integration where it is available. They can also adopt a multicloud architecture that provides them with more flexibility in deploying across private, public, and hybrid configurations. Critical to this approach are management and integration, which if built in from the beginning, can control and construct meaningful workflow across cloud applications and infrastructures. If designed correctly, a multicloud architecture can enable choice across vendors without the costs and risks of locking into single vendor silos. Openness and simplicity The lock-in issue relates to how flexible and open a cloud solution is. Flexibility—meaning the choice of standards or platforms and the ability of an application to work with other platforms and existing technology—is the area survey respondents say is most in need of improvement with respect to cloud applications, with 87% saying some or significant improvement is needed. “Without any open standards, you’re in bed with whoever’s integration or tool, or whatever it is you’re using,” Cairns says. “We’re looking at the Windows Azure model because we’re a big VMware shop and [Azure] integrate[s] pretty well with that.” Simplicity of the cloud solution was next in line in terms of what respondents say needs improvement, at 84%. 4 Navigating your path to cloud success “We all want simplicity in everything we do,” Cairns says, noting it is an area where cloud applications could take a page from vendors such as VMware. His company has some 400 servers to monitor, about three-quarters of them virtual. “VMware gives me a good tool to help make that manageable. We’re just not seeing that soon enough for the cloud,” he says, noting some cloud vendors don’t give customers a window into their applications to monitor performance.
  5. 5. Performance Customers would also like to see improvement is performance of cloud applications, with 73% saying some or significant improvement is in order. “Salesforce performs well but you have to architect it right,” Ragsdale says. For example, you can’t render as much data per page with Salesforce as you can with traditional in-house .NET applications, he says. “As long as you understand that, work with it, and have some expertise, it’ll work. If you don’t have that expertise I could see where it’d be very frustrating.” The Cloud Conflict Within Other issues with respect to cloud applications have more to do with organizational challenges, security requirements, and stakeholder expectations than technology. In some important respects, the business and IT groups are simply not on the same page when it comes to cloud or the business strategies that require cloud. In some important respects, the business and IT groups are simply not on the same page when it comes to cloud or the business strategies that require cloud. Rogue cloud deployments For example, many survey respondents report that cloud projects originate without the consent of IT management. Application developers and line-of-business (LOB) groups such as finance, sales, or marketing are the most frequent originators of such “rogue” or “shadow IT” deployments, with 65% of respondents saying they initiate cloud projects either often or occasionally, followed by executive management (64%), individual users (49%), and smaller departments or groups within LOB units (48%). When application development staff circumvents its own IT processes and platforms to acquire outside capacity, it is not only problematic but a true manifestation of cloud conflict and misalignment of objectives within organizations. Most frequently, cloud initiatives originate from corporate IT. About two-thirds of respondents report application developers, lines of business, and executive management (non-IT) initiate cloud projects at least occasionally. 49% Corporate IT Application developers Lines of business (e.g., finance, sales, marketing) Individual users Smaller departments or business units within lines of business 14% Often SOURCE: IDG Research Services on Cloud Strategy 17% 65% 22% 12% 65% 42% 22% 17% 49% 17% 15% 89% 39% 26% Executive management (non-IT) 41% 10% 1% Often/ Occasionally 19% 16% 64% 19% 49% 18% 48% 34% 27% 34% Occasionally 31% Rarely Never 5 Navigating your path to cloud success
  6. 6. Rogue deployments were an issue early on at BerylHealth, but the company addressed the issue by putting governance procedures in place around all business and IT projects. So if a business group did implement a cloud project without IT approval, IT would find out about it. Governance is important to keep everybody on the same page and to ensure that cloud applications are implemented in a consistent manner. For example, Salesforce has a standard internal object called a “case” that can be part of many use cases, Ragsdale says. If one group uses it in one way and another uses it in another way, they could wind up overriding and conflicting with each other. “It can spiral into lots of problems,” he says. Take a Simpler Path to Cloud Cloud-based applications and services can deliver great benefits for companies that implement them well, including relieving the burden on IT so it can focus on helping the business achieve its goals. But achieving success with cloud services often comes down to choosing the right partner. Dell’s approach to cloud can be summed up in three words: open, integrated, and secure. Open Dell adheres to many open industry standards to help its customers build flexible solutions. One example is its support for OpenStack, the open source cloud computing platform for public and private clouds. Dell is a Gold member of the OpenStack Foundation, which promotes the development, distribution, and adoption of the OpenStack cloud operating system. Technologies such as OpenStack improve choice while reducing costs for customers. It also enables Dell to leverage an industry-wide community to deliver tailored solutions for customers, over a standardized infrastructure. It’s another in a long line of open, standard technologies that Dell supports to increase choice and prevent lock-in for customers. Integrated That openness also enables Dell to deliver cloud solutions that integrate well with a customer’s existing hardware, software, and services. Customers can leverage their existing investments, while saving time and money. 6 Navigating your path to cloud success Additionally, Dell Multi Cloud Manager enables customers to control their multivendor private and public clouds from a single place. Customers use design tools that are “vendor agnostic” to define architectures and polices for automatically managing cloud application deployments, auto-scaling, application migration, disaster recovery, and backup snapshots. And, Dell Boomi provides an easy and costeffective integration platform, extending the value of existing applications. Boomi AtomSphere® connects any combination of cloud, SaaS, or on-premise applications using original APIs, with no appliances, software, or coding. Boomi can drastically reduce implementation times while delivering rapid time to value and substantial cost savings as compared with traditional integration solutions. Secure Security of a cloud solution should be more robust than what a typical customer organization can provide on its own—and that’s just what Dell delivers. Indeed, security is a core competency at Dell, from the device to the data center. Dell offers multiple layers of security for cloud computing and embeds security deeply within in its own cloud offerings. At the device level there’s Dell Data Protection Encryption, a component that installs on Dell desktops, laptops, smartphones, and other devices to deliver nonintrusive file-based encryption as well as sector-based full disk encryption—all managed centrally by IT. For the data center, Dell offers its Dell SecureWorks ® Managed Security Services. Offerings range from security monitoring, vulnerability management, and log management, to full lifecycle management and monitoring of security appliances, including network and application firewalls, intrusion prevention and detection systems, and unified threat management appliances. Learn more about how Dell can help you get the most out of cloud offerings. Visit: www.dell.com/cloudservices.
  7. 7. Disparity in expectations When cloud projects are not sanctioned by IT they tend to have different end goals in mind. Indeed, the survey data points to a veritable chasm between IT and business groups with respect to their objectives for cloud deployments. When asked what the primary goal is for a cloud deployment that originates within their department, between 36% and 41% of business users (depending on their role, from executive management down to the smallest departments) point to business and organizational responsiveness— easily the top response. When IT originates the project, nearly half say the goal is simply to increase operational efficiency, and fewer than one-quarter point to business and organizational responsiveness. Only 6% of IT users say their primary goal is to increase productivity. Such responses point to the need to have a company-wide strategy and collaboration when dealing with cloud applications, to ensure “rogue” deployments are not simply geared to the benefit of individual departments and are consistent with the company’s larger business and IT goals. But the survey results show that does not appear to be happening consistently. When scoping out initial goals, budget, and timelines for a cloud project, 80% of respondents say corporate IT is involved, but only 46% say LOB representatives are involved and 37% say non-IT executive management is at the table. The numbers drop even lower when it comes to forming a technical cloud strategy and choosing a solution. While the perceived organizational investment may be high, the lack of collaboration across the organization is an issue that needs to be proactively addressed. Meeting CIO Goals CIOs need to get a handle on these cloud issues if they want to meet their own personal career goals. According to the 2013 “State of the CIO” survey conducted by CIO magazine, today fewer than 25% of CIOs spend much time on business strategy functions such as driving business innovation, developing and refining business strategy, and identifying opportunities for competitive differentiation. But as many as 54% say those are the areas they’d like to be more involved with by 2016. They may well get their wish, as reliance on IT is certainly growing, with 75% of the “State of the CIO” survey respondents agreeing that boards of directors are more interested in IT today than they were three years ago. 75% of the “State of the CIO” survey respondents agreeing that boards of directors are more interested in IT today than they were three years ago. Easing the IT burden The trick for CIOs is to leverage cloud as a way to make the IT infrastructure more reliable and easier to operate. “Cloud offerings, even hosted services, have shown that there’s an easier way to run all this stuff,” says Cairns of American Enterprise Group. “Most of what I spend my time on is business initiatives.” It should be no surprise that CIOs intend to increase the use of third-party IT service providers, including those that offer cloud services. In 2013, about 25% of all IT services were supplied by third parties, according to the “State of the CIO” survey. In three to five years, that figure will increase to 37%. Indeed, 36% of survey respondents say cloud is the trend that will have the most profound effect on the CIO’s role in the future, topping other trends such as mobility, consumerization of IT, big data, and social media. 7 Navigating your path to cloud success
  8. 8. Wanted: A True Partner If they are to make the most of cloud, however, CIOs need to avoid the pitfalls that the IDG Research survey points to. The survey makes clear that customers need to look for three attributes in a cloud service provider, as follows. Flexible, open, scalable First, the provider must offer an open solution, one that’s flexible enough to integrate with other cloud offerings. It should be capable of seamlessly supporting hybrid cloud environments that include both private and public cloud offerings. And it needs to be highly scalable, to keep up with demand as the business grows. Easy to integrate Cloud offerings must also integrate with in-house applications, such that customers can leverage their existing investments. The provider must understand how hardware, software, and services all work together to get the job done. Simplicity Cloud should be about simplicity, but multiple applications and vendors often bring complexity that can negate real cloud benefits. Transforming the people, process, and technology toward cloud is not enough; organizations need a partner that considers simplicity and the customization required to enable the entire business. Reliable and secure And, of course, cloud applications must be highly reliable, always available, and secure. Nothing will torpedo a cloud project faster than security issues or performance problems. Dell at Work Fast facts about Dell: • Dell SecureWorks, a core competency of Dell Cloud Services, processes more than 50 billion security events daily. • Dell stores more than 16 petabytes of cloudbased email—more data than the U.S. Library of Congress • Dell manages more than 6 billion diagnostic image objects in the cloud for its customers, providing critical support to more than 40,000 physicians and 500-plus individual medical practices. • Dell sends out more than 15 million SMS text messages, automated voice calls, and email notifications every year. • Dell Boomi handles more than 2 million integration processes daily. • An IT solutions provider used Dell Cloud Services to seamlessly integrate three critical business functions, reducing order entry time by 85% and saving $1 million in custom development costs for SAP integration. • A leading payment processing services company saved more than $430,000 in the first month alone, and more than $5 million in the first year, after deploying a Dell cloud solution for process integration. 8 Navigating your path to cloud success • More than 1 billion people worldwide are connecting to the cloud using Dell solutions.
  9. 9. Getting Cloud Right Addressing these issues is paramount if CIOs are to successfully implement cloud and meet their own business and career goals. Yet, as the IDG Research survey shows, too many offerings today are falling short in terms of the kind of flexibility, simplicity, and security that can really transform a business. Companies seeking a partner that can help them get cloud right would do well to look at Dell. Dell offers the cloud solutions that meet the criteria in terms of openness, ease of integration, simplicity, and security. The company also has the experience and perspective that CIOs need to succeed with cloud. Its solutions span from the desktop to the data center, including all required hardware, software, and services. Through its transformation, modernization, and implementation services, Dell is a trusted partner to many companies as they develop an overarching cloud strategy and deliver successful cloud implementations. n Learn more about how Dell can help you get cloud right. Visit: Dell.com/cloudservices. THIS WHITE PAPER IS FOR INFORMATIONAL PURPOSES ONLY, AND MAY CONTAIN TYPOGRAPHICAL ERRORS AND TECHNICAL INACCURACIES. THE CONTENT IS PROVIDED AS IS, WITHOUT EXPRESS OR IMPLIED WARRANTIES OF ANY KIND. Dell® and its marks are trademarks of Dell Corporation. All other trademarks and copyrights are the property of their respective owners. Additional resources Cloud security forecast: Murky with an 80% chance of finger pointing IT security pros site lack of transparency among cloud providers and the lack of certification for cloud security among the challenges for making informed buying decisions. Dell Targets Federal IT With Government Cloud Services PC giant unveils far-ranging government cloud offering that features both dedicated, private deployments as well as shared, multitenant systems with turnkey security and compliance features. Click here Click here Dell buys Entratius to beef up multi-cloud management chops Dell purchased Enstratius, a company that allows customers to manage cloud resources across multiple providers through a single pane of glass. Click here 9 Navigating your path to cloud success
  10. 10. The numbers are in Simple and secure cloud solutions from Dell Organizations use Dell Cloud storage for 7.52 billion 5,000 Dell Cloud securely stores medical images for 7% of the U.S. population 1 Dell protects over 85 million patient studies and 6 billion medical images in the cloud emails every day Dell Cloud now sends out more than 15 million SMS text messages, automated voice calls and email notifications every year emails every minute Dell stores over 16 petabytes of cloud-based email — more data than the U.S. Library of Congress #1 Over in density-optimized servers2 1 billion people worldwide are connecting to the cloud using Dell solutions Dell Cloud 21 of 25 largest law firms in the USA use Dell for secure cloud Email Management Services4 Dell performs over 1 million cloud integrations each day3 4 of 5 world’s largest law firms use Dell for secure cloud Email 5 Management Services Dell does business with every Fortune 100 company Dell SecureWorks is a Leader in Managed Security Services7 “In 2013, 85% of net new software will be built for 8 cloud delivery” 1. Based on 313,914,000 census est July 1, 2012 2. IDC Worldwide Quarterly Server Tracker, 1Q13, May 2013 3. http://www.boomi.com/news_and_events/press_releases/11022013 4. The American Lawyer 2012 AMLAW 100: Firms Ranked by Gross Revenues 5. The American Lawyer 2012 AMLAW Global 100: Gross Revenues 6. http://www.marketingshift.com/companies/technology/consumer/dell.cfm 6 Dell is a leader in managed security services, monitoring over 50B events each day “Cloud-based security services will account for 10% 9 of the enterprise IT security product market by 2015” 7. Gartner Magic Quadrant for MSSPs, North America, 2012. ID Number G00229873 8. IDC IT Cloud Services at the Crossroads: How IaaS/PaaS/SaaS Business Models Are Evolving, doc #DR2013_T6_RM_SH_MP, March 2013 9. Gartner Demand for Cloud-Based Offerings Impacts Security Service Spending, ID Number: G00249847

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