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Apptio up cloud conference 2012 [final].pptx
 

Apptio up cloud conference 2012 [final].pptx

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  • Is the cloud the right choice?What are the considerations?
  • Results identified $5M (12% of total app costs) in annual hard savingsTCO of SaaS and other cloud services is simpler, but…Don’t forget about additional costs for both models, including security, integration, training, etc.Many times these are a wash between the two optionsWork with Finance to understand your “appetite” for OpEx vs. CapEx when cost differential is small
  • Is the cloud the right choice?What are the considerations?
  • Worst OffendersProvisioningIncident managementApp supportCommon CausesTroublesome technologies/appsRepetitive processes Potential SolutionsIdentify burdensome apps and technologiesBenchmark your incident management to peers
  • Common ProblemsLack of standardsStandards include costly technologiesPotential SolutionsAssess TCO impact of standardsEvaluate cost of non-standard technologies
  • Common ProblemsService owners unaware of their costsService owners lack financial goalsPotential SolutionsService-level “P&Ls”Compare unit costs to benchmarks / cloud
  • Common ProblemsConsumers drive costs but lack accountabilityConsumers have no leversPotential SolutionProvide “bills” based on consumptionShow clear options (levers) for savings

Apptio up cloud conference 2012 [final].pptx Apptio up cloud conference 2012 [final].pptx Presentation Transcript

  • Navigating the Cloud Conundrum: Public vs. Hybrid vs. Private Chris Pick CMO, Apptio & President, TBM Council1 © 2012 Apptio, Inc. All Rights Reserved.
  • IT Leaders Ask… Is “the cloud” cheaper?2 © 2012 Apptio, Inc. All Rights Reserved.
  • Let’s Take a Look! Traditional Tower - Seibel SaaS Tower – Salesforce.com3 © 2012 Apptio, Inc. All Rights Reserved.
  • It’s Cheaper Here: But Why? $29K/Month in Savings Software Costs:  On-Prem: $40K BackupDepreciation  SaaS: $63KData Centers Labor Storage Non-Software Costs: Labor  On-Prem: $61K  SaaS: $8K SoftwareMaintenance SaaS Software Licenses Software Even if on-prem software wasAmortization free, it would be difficult to compete on cost alone.4 © 2012 Apptio, Inc. All Rights Reserved.
  • Instead Ask … Is “the Cloud” the right delivery model for us today…and tomorrow? How can I exploit the advantages of the Cloud in my delivery model?5 © 2012 Apptio, Inc. All Rights Reserved.
  • Six Factors Exploited by Cloud Providers 1. Services Orientation 2. Capacity Utilization 3. Process Efficiency 4. Cost-Effective Architecture 5. Accountability for Cost 6. Transparency of Consumption6 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Applications DBMS/Middleware Server/Compute Storage Network Security Tower Orientation Non-IT  Emphasis on cost reduction Tower Owners  Unit benchmarks to assess performance  Little linkage of cost to value7 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Business Processes Applications Applications Software DBMS/Middleware DBMS/Middleware Platform Server/Compute Server/Compute Infra Storage Storage Network Network Security Security Tower Orientation Selective Cloud-Sourcing Non-IT  Reduce costs on a selective basis Tower Owners  Compare TCO of internal/cloud options Public Providers  Understand retained costs, etc.8 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Business Processes Business Processes Applications Applications Applications Software Software DBMS/Middleware DBMS/Middleware DBMS/Middleware Business Services Platform Platform Tech Services Server/Compute Server/Compute Server/Compute Infra Infra Storage Storage Storage Network Network Network Security Security Security Tower Orientation Selective Cloud-Sourcing Services Transformation Non-IT  Be more competitive (IT-as-a-Service) Tower Owners  Better link cost to value Public Providers  Improve agility, respond to business Service Owners9 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Business Processes Business Processes Applications Applications Applications Software Software DBMS/Middleware DBMS/Middleware DBMS/Middleware Business Services Platform Platform Tech Services Server/Compute Server/Compute Server/Compute Infra Infra Storage Storage Storage Network Network Network Security Security Security Tower Orientation Selective Cloud-Sourcing Services Transformation Non-IT  Be more competitive (IT-as-a-Service) Tower Owners  Better link cost to value Public Providers  Improve agility, respond to business Service Owners10 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Business Processes Applications ApplicationsSoftware DBMS/Middleware DBMS/Middleware Business Services Platform Tech Services Server/Compute Server/Compute Infra Storage Storage Network Network Tech Business Security Services Security Services Services Transformation Portfolio Optimization Non-IT  Optimize the investment portfolio Tower Owners  Improve financial performance of services Public Providers  Focus on core competencies Service Owners11 © 2012 Apptio, Inc. All Rights Reserved.
  • Services Orientation Business Processes Business Processes Business Processes Applications Applications ApplicationsSoftware DBMS/Middleware DBMS/Middleware DBMS/Middleware Business Services Platform Tech Services Server/Compute Server/Compute Server/Compute Infra Storage Storage Storage Network Network Network Tech Business Tech Business Business Security Services Security Services Services Security Services Processes Services Transformation Portfolio Optimization Value Partnership Non-IT  Make process-level tradeoffs Tower Owners  Justify greater automation Public Providers  Drive business efficiency Service Owners Process Owners12 © 2012 Apptio, Inc. All Rights Reserved.
  • Capacity UtilizationChoose sourcing strategies and time purchases to optimizecapacity utilization and avoid waste “On and Off “ “Growing Fast“ Compute Compute Inactivity Period Average Usage Average Usage Time Time “Unpredictable Bursting“ “Predictable Bursting“ Compute Compute Average Usage Average Usage Time Time13 © 2012 Apptio, Inc. All Rights Reserved.
  • Process EfficiencyAssess labor and contract service costs across the board toidentify and root out inefficiencies14 © 2012 Apptio, Inc. All Rights Reserved.
  • ArchitectureHelp your architectsunderstand the costimpact of theirstandards and fornon-compliance15 © 2012 Apptio, Inc. All Rights Reserved.
  • Accountability for Cost Empower your tower and service owners with true TCO metrics16 © 2012 Apptio, Inc. All Rights Reserved.
  • Transparency of ConsumptionProvide chargeback orshowback to createaccountability for consumption 17 © 2012 Apptio, Inc. All Rights Reserved.
  • A Different OutcomeServices Structured around serviceOrientation deliveryCapacity Maximizing capacityUtilization utilization through timed purchasingEfficient Reduced labor costsProcesses through automation and repeatabilityCost-Effective Standardized technologies Shifted $300 millionArchitecture to reduce TCO from RtB to CtBAccountability Incentivized servicefor Cost owners to manage unit costs (their “Ps”) CIO now runs theTransparency Enabled business partners cloud business unitof Consumption to manage their volumes (their “Qs”)18 © 2012 Apptio, Inc. All Rights Reserved.
  • Apptio Mission FY2012 – 120 Customers “Enable IT to breakthrough and FY2011 – 80 Customers transform from cost center to strategic service provider” FY2010 – 40 Customers FY2009 – 25 Customers FY2008 – 10 CustomersOctober 2007Company Founding 19 © 2012 Apptio, Inc. All Rights Reserved. 2008 2009 2010 2011 2012
  • THANK YOU!20 © 2012 Apptio, Inc. All Rights Reserved.