Greenpages Aug 2013 Customer Event Gravitant Keynote ITaaS Mandate
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Greenpages Aug 2013 Customer Event Gravitant Keynote ITaaS Mandate

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Gravitant keynote delivered by CEO Mohammed Farooq at the 2013 GreenPages Customer Event. Mohammed discussed how ITaaS is enabled by cloud and cloud services brokerage platforms. He introduces the ...

Gravitant keynote delivered by CEO Mohammed Farooq at the 2013 GreenPages Customer Event. Mohammed discussed how ITaaS is enabled by cloud and cloud services brokerage platforms. He introduces the new concept of a Solution Factory.

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Greenpages Aug 2013 Customer Event Gravitant Keynote ITaaS Mandate Greenpages Aug 2013 Customer Event Gravitant Keynote ITaaS Mandate Presentation Transcript

  • Copyright © 2013 Gravitant Delivering on the Mandate of IT-as-a-Service Mohammed Farooq Founder, Chairman, and CEO
  • 8/8/13 2 Texas Ousts IBM, Takes New IT Outsourcing Tack Second-generation IT services deals almost always go better. But after an especially troubled relationship with IBM, Texas is counting on new vendors and an unproven outsourcing model to deliver the second time around. CIO — Over the last decade, public sector IT outsourcing deals have been marked by very public failures—from Indiana suing its vendor over $1.6 billion deal to Virginia firing its CIO for a bad outsourcing relationship to San Diego County's failure to make it work with two providers back-to- back before settling in to a better third contract. Texas's first IT outsourcing deal was no different, devolving into a very public fight between IBM and the state's Department of Information Resources (DIR) over their $863 million data center consolidation contract. Last week, Texas DIR announced that it had not only awarded the work to new vendors, but that it was taking a very different tack the second time around. In a deal worth more than $1 billion dollars, Xerox and its IT services division (formerly ACS) will take on the five towers of service delivery while CapGemini will step in as the master service integrator. It's a bold move destined to make a big impact—for better or worse. "It could be a landmark deal or it could be a disaster," says Esteban Herrera, COO of outsourcing analyst firm HfS Research. "So much is unknown." Source: http://www.cio.com/article/702618/Texas_Ousts_IBM_Takes_New_IT_Outsourcing_Tack
  • Copyright © 2013 Gravitant Leveraging cloud to deliver more agile IT 3 Commodity Clouds Enterprise Clouds Security Services Managed Backup Services CIO/ CFO CTO/ IT Architects Sourcing/ Procurement IT Ops/ Sys Admins IT Suppliers Cloud Broker IT Organizations Business Users •  Server deployment times went from 6 months to days •  Improved agility to onboard to cloud by more than 5X •  Saved 30-50% in infrastructure costs when compared with internal data center costs
  • Copyright © 2013 Gravitant 1,000 2,000 3,000 4,000 5,000 6,000 5-Oct 7-Oct 9-Oct 11-Oct 13-Oct 15-Oct 17-Oct 19-Oct 21-Oct 23-Oct 25-Oct 27-Oct 29-Oct 31-Oct 2-Nov 4-Nov 6-Nov 8-Nov #ofWebUsers (inthousands) A better voting experience for Texans •  Deployed a new web-based voting application in 2 weeks •  Provided access to resources to dynamically support public demand with minimum impact to serviceNormally 450K daily hits Last day of registration (4.7M hits) Last day of voting (5M hits) 4 User Activity for voteTexas.gov
  • Copyright © 2013 Gravitant Delivering ITaaS is a critical priority 5 According to an IDG survey, 76 percent of the 650 global respondents indicated that ITaaS was critical or very important for enterprise success. Reporting on line of business IT usage costing   Enhanced ability to manage compliance and regulatory requirements   Improved customer service   68% 63% 62% Biggest perceived benefits of IT as a Service: Source: Cloud Innovation Study: IT as a Service, IDG Research Services, June 2012
  • Copyright © 2013 Gravitant Intuit is using ITaaS and cloud to create competitive advantage 6 -50% 0% 50% 100% 150% 200% Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Intuit NASDAQ •  Good fit to deliver SaaS to its small business customers: PAYGO, scalable, and mobile access •  Strategic partnership with Microsoft Azure to enable 750K developers •  Three out of four Intuit users now use one or more of its cloud-based services 5-year return: NASDAQ 57% INTUIT 138%
  • Copyright © 2013 Gravitant What is IT-as-a-Service? 7 Order Complete   ✔   An operational approach where IT is run as an internal service provider business. A service-oriented approach to IT consumption, organization and delivery where all details are abstracted from the business. A business-centric approach that focused on outcomes, operational efficiency, competitiveness, and rapid response.
  • Copyright © 2013 Gravitant “No Plan Survives Contact with the Enemy” That’s why you need the flexibility ITaaS provides you CIOs Managed Services Existing Data Center Private IaaS PaaS SaaS Developers & Business Units ITaaS Overview Broad Ecosystem of Suppliers Governance & Business Mgmt Expedia-like Consumption •  Easily define, build, & order IT solutions •  Compare and source from a global approved vendor list •  Route demand instantly to the best provider option with Pay as You Go •  Provide flexibility while still maintaining control •  Rapidly respond to unanticipated biz needs Key Tenets of ITaaS 8
  • Copyright © 2013 Gravitant A model for IT-as-a-Service BU BU BU Request Mgmt Req Analysis IT Operations Solution Dev PMO Infrastructure Test Deploy •  Long lead times for new solutions (months-years) •  Significant leakage due to lack of control •  Large upfront capital investments Vendor mgmt Order/Bill Integrate Infra Apps Infra Apps BU BU BU Solution Store Order/Bill Service Monitoring & Testing Fulfillment Governance Catalog Factory Vendor mgmt Chargeback IaaS SaaS PaaS SaaS PaaS IaaS Legacy Operations •  80% reduction in time-to-market •  100% improvement in productivity •  50% higher asset utilization Current IT IT-as-a-Service
  • Copyright © 2013 Gravitant An Industry in Transition Infrastructure IT Governance + IT Ops + Systems Management Applications Development & Management Enterprise Packaged Apps ITO BPO Channel Partners •  Public •  Private •  Hybrid Cloud Mgmt •  Business of Cloud Mgmt •  Cloud Governance •  DevOps •  PaaS •  Cloud App Middleware •  Salesforce.com •  Workday •  Office 365 •  Google Docs •  Cloud Aggregation & Solution as a Service •  Biz Process as a Service Hardware Outsourced Data Center Biz Process Outsourcing PaaS CMaaSCMaaS SaaSIaaS 10
  • Copyright © 2013 Gravitant Enabling ITaaS: Solution Factory and Store Requirements 11 DevOps Code Factory Solution Ops Solution Factory Business Ops Solution Store •  Scalable applications •  Continuous updates •  Multiple XaaS components •  Find best providers •  Build complete solution: ITSM, networks, security, monitoring, Integration, etc. •  Publish in catalog with pricing •  Metering/billing •  Procurement •  Best value & QoS •  Provider management BusinessCIO
  • Copyright © 2013 Gravitant A practical technology path to ITaaS Key capabilities & technologies 12 Code Factory (DevOps/PaaS) ITBiz App Solution Factory (SolutionOps) Solution Store (BusinessOps) •  Smart Design •  Aggregation engine •  Cloud interop fabric •  Pricing/metering/ billing engines •  Analytics •  Policy/Compliance SICSP MSP Brokerage & Governance
  • Copyright © 2013 Gravitant13 Lower Cost Reduce infrastructure cost by 20-40% and improve staff productivity Better Choice Match the best providers and services with the right business need More Control Gain visibility, ensure governance, and reduce risk Greater Speed Faster path to revenue for the business Business benefits of ITaaS
  • Copyright © 2013 Gravitant Even a modest use of public clouds provides significant benefit IT Infrastructure Annual Cost Indexed US$, Year 1 Baseline1 = 100 Transition costs are spread over 2 years; retained costs excluded. • Nearly 30% improvement in cost offered by public cloud-enabled solution • Public cloud only used for ~25% of workloads • Modest use of public cloud to drive higher utilization appears to have substantial benefit • Efficiencies do not reflect likely price declines in public cloud services50 75 100 125 150 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Costs with Public Cloud component Projected costs with Traditional Model A leading power generation company found that public cloud use for a portion of its workloads would drive a 30% reduction in overall infrastructure costs. Source: Everest Group 14
  • Copyright © 2013 Gravitant Using public cloud has hidden cost that will leak away the savings 15 $0 $15 $30 $45 $60 $75 $90 voteTexas.gov: Projected annual spend (in thousands of dollars) $0 $15 $30 $45 $60 $75 $90 voteTexas.gov: Actual annual spend (in thousands of dollars) Leakage reduces cost savings 57% promised savings 8% actual cost savings 41% actual cost savings
  • Copyright © 2013 Gravitant16 Provider Match Description Average Price Location Security SLA Provisioning Time On demand commodity cloud provider. Enterprise support available at additional cost Compute: $17,234 Storage: $625 Network: $802 SW: NA Operations: $16,137 US East (VA) US West (OR) US West (N. CA) EU (Ireland) AP (Singapore) AP (Tokyo) Virtual Perimeter Firewall and Routing between VLANs 99.95% annual uptime only for access to VM in particular region. Service credit up to 10%. VM provisioning: 10-15 min 1st VDC: Hours Subsequent VDC: Hours 85% Higher-level security & SLA: optimized for eCommerce & Web Hosting Compute: $23,623 Storage: $7,489 Network: $500 SW: NA Operations: $12,957 US East (VA) US West (CA) Asia EMEA Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/ IPS 100% infrastructure 99.9% end-to-end availability of customer assets. Service credit up to 30% VM provisioning: 2-4 hours 1st VDC: 2 days Subsequent VDC: 4 hours 100% Reserved capacity-based dedicated resources; fixed cost, simpler management, supports bursting Compute: $45,000 Storage: $5,991 Network: $500 SW: $0 Operations: $11,897 Culpepper, CA Miami, FL Sao Paulo, Brazil Amsterdam, Netherlands Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/ IPS 99.9% end-to-end availability of customer assets. Service credit up to 50%. VM provisioning: 10-15 min 1st VDC: 10 days Subsequent VDC: 10 days 135% Private, community cloud with dedicated capacity; fixed costs; physically secure Compute: $15,000 Storage: $400 Network: $500 SW: $0 Operations: $18,000 Austin, TX Enterprise Grade Virtual Perimeter Firewall Limited outside access 99.9% end-to-end availability of customer assets. Service credit up to 50%. VM provisioning: 15-30 min 1st VDC: 2-3 day Subsequent VDC: hours 115% Pricing based on a production environment for a CRM. 30% variance between choosing any provider versus choosing the right one. Terremark 135% Monthly cost: $63,388 Arbitrary Selection Savvis 100% Monthly cost: $44,569 Optimal Selection Dynamically route IT demand to the right providers
  • Copyright © 2013 Gravitant A solution factory accelerates the application deployment lifecycle 17 Design 2-3 months Order 3-6 months Deploy 4 weeks Provision 6 weeks Changes 1-3 weeks Today’s Enterprise with Virtualization Enterprise with today’s Hybrid Cloud Management Design 2-3 months Order 2 months Hours to days Hours to days Changes 1-3 weeks CMP can reduce VM deployment & provisioning to hours days 2 weeks Days to weeks Hours to days Hours to days Hours to days Gravitant-enabled Multi-Cloud Management Weeks saved = more Revenue earned An ideal broker compresses the entire lifecycle and automates the management of the cloud supply chain Eight months Six months One month
  • Copyright © 2013 Gravitant Case study: A Bridge from Current IT to IT-as-a-Service 18 Current IT Solution Factory (SolutionOps) Solution Store (BusinessOps) Aggregation Dev Test Perf Int Provision Deploy Order & Access •  Multiple locations •  Multiple cloud technologies •  Multiple business units Virtual DC
  • Copyright © 2013 Gravitant Three key initiatives for ITaaS 19 Embracing Shadow IT Managing Multiple Clouds Reducing Infrastructure Spend Provide speed and choice while reducing risk and providing control and governance Move beyond workload deployment automation to complete IT/Biz management Safely leverage public clouds while retaining the expected cost savings
  • 20 Thank you Mohammed Farooq 512.659.4339 mohammed.farooq@gravitant.com www.gravitant.com