Enterprise Cloud Forum: Adopting a Service Provider Mentality

Enterprise Cloud Forum:“Adopting a Service Provider Mentality &Empowering a Self-Service Organization”Presented By:Rackspace Advisory ServicesEnterprise Cloud Solutions Group

Your HostsLisa Larson Anand Bhadouria Steve MillsVice President Sr. IT Strategist CIOEnterprise Cloud Solutions Enterprise Cloud Solutions Rackspace HostingRackspace Hosting Rackspace HostingLisa.Larson@rackspace.com Anand.Bhadouria@rackspace.com Smills@rackspace.com RACKSPACE® HOSTING | WWW.RACKSPACE.COM 2

What We Will Cover Today  Current State of Enterprise IT  Dangers of the Status Quo  Importance of embracing a Service Provider Mentality  Empowering a Self-Service Organization  Transforming the Business of IT RACKSPACE® HOSTING | WWW.RACKSPACE.COM 3

IT Today: The ChallengeDemand for IT services exceeds supplyThe business expects near instantaneous deliveryRecruiting and retaining talent is problematicIT is capital intensiveManaging increasingly complex environments is difficultNeed for flexibility to accommodate high speed, changing business conditions RACKSPACE® HOSTING | WWW.RACKSPACE.COM

The CONSUMERIZATION of ITInstant CPU… Instant Storage… Instant Provisioning… Instant Gratification! • BYOD “I DON’T CARE HOW… I WANT IT NOW!” • Mobile • DIY Cloud RACKSPACE® HOSTING | WWW.RACKSPACE.COM

43% of IT Decision Makers know theyhave Shadow IT in their organization.Business units are leveraging cloudcomputing to help with work projects. 38% of IT Decision Makers said the main reason is to save time One in three said it was because internal solutions were not available or because they did not want to deal with the IT department. RACKSPACE® HOSTING | WWW.RACKSPACE.COM Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012), conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud

What is Shadow IT? We need… SPEED, AGILITY & FLEXIBILITY Service ProviderBusiness Unit WE CAN’T HELP YOU 80% of our IT spend & resources are devoted to “keeping the lights on” Internal IT Department RACKSPACE® HOSTING | WWW.RACKSPACE.COM 7

Polling Question:Do you have SHADOW IT in your ORGANIZATION? •YES •NO •I Don’t Know 8

The Dangers of Shadow IT Unofficial Use of Weakened Spending Cloud Control • Loss of Control/Governance • Lack of Negotiated Terms • Security Breaches • Diminished Liabilities Control • Compliance Penalties • Misclassification of Spend • Lost Revenue • Profit Erosion • Brand Deterioration • Spend Ignorance • Loss of Business IP • Vendor Lock-in RACKSPACE® HOSTING | WWW.RACKSPACE.COM

IT Management Response to Shadow IT BAN the Cloud Use Existing Approval Procedures for Spending Control Keeping the Status Quo RACKSPACE® HOSTING | WWW.RACKSPACE.COM

The Path of Status Quo IT Dept. Overwhelmed by demand IT  BUs follow path of least  CMO takes over IT resistance spend Struggling to meet business needs  BUs Leverage Service  IT no longer brings Providers to solve value to the org 80% of time dedicated to business needs keeping lights on  Downsizing ensues IT Strategy is no longer just project/architecture based. Strategy must be built around providing RACKSPACE® HOSTING | WWW.RACKSPACE.COM 11 value to the biz!

Polling Question: How do you address Shadow IT in your org?• Ban the Cloud: Stamp out Shadow IT• Use current controls for all cloud spending• Embrace Shadow IT as a tool for innovation 12

To Adopt Cloud the RIGHT WAY, theBusiness of IT needs to TRANSFORM 13

A New Way of Thinking Virtualization is a TECHNOLOGY … Cloud Computing is a BUSINESS MODEL RACKSPACE® HOSTING | WWW.RACKSPACE.COM 14

Shadow IT can be IT’s Best Friend• Empowers a self-service organization• Spurs Innovation & adds more projects to the Project Funnel• Provides strong POC environments to vet viability for potential CAPEX spend• Frees IT Resources… Allowing IT to focus efforts where they provide value … in the APPS RACKSPACE® HOSTING | WWW.RACKSPACE.COM 15

Filling the Innovation Funnel Experiment More by Removing the CAPEX Blockade • Lower Approval Threshold • Eliminate Missed Opportunity • Lower Barrier to Entry How Many Projects Have You Killed Because You Couldn’t Justify CAPEX Spend? RACKSPACE® HOSTING | WWW.RACKSPACE.COM

Creating a Safe Self-Service Organization To leverage the benefits of Shadow IT…. It is imperative to establish appropriate guardrails for your business. Embrace Shadow IT & Create New Procedures for Spending Control BUILD A SERVICE CATALOG RACKSPACE® HOSTING | WWW.RACKSPACE.COM

What is a Services Catalog? Simple Approved Robust User Portal Vendor List COMPLEXITY RACKSPACE® HOSTING | WWW.RACKSPACE.COM

How Does a Service Catalog Work? Internal IT Service ProviderBusiness Unit Department TOGETHER, WE CAN Service HELP YOU! Catalog RACKSPACE® HOSTING | WWW.RACKSPACE.COM 19

How do you build a Service Catalog?• Catalog Business • Design & Build Workloads/Needs Standard Cloud – BYOD Configurations – Corporate websites – Set governance – Marketing campaigns – Control security & compliance – E-commerce sites – Data Protection – SaaS – Application Integration – Rich Media – Other “… empower a self-service organization!” RACKSPACE® HOSTING | WWW.RACKSPACE.COM 20

IT The Path of Transforming the Business of IT IT Dept. Adopting a Service Partner to the Provider Mentality Business Overwhelmed by  Create a service catalog by  CIO becomes an Advisor to demand partnering w/ a Service Provider the Business Struggling to meet  Empower a self-service  IT is working on game- business needs organization changing, strategic 80% of time dedicated  Create an army of innovators initiatives to keeping lights on  Free IT Resources to focus on  Demands of the Business providing value are met RACKSPACE® HOSTING | WWW.RACKSPACE.COM 21

Are you Prepared toTransform theBusiness of IT? RACKSPACE® HOSTING | WWW.RACKSPACE.COM 22

What Covered Today  Current State of Enterprise IT  Dangers of the Status Quo  Importance of embracing a Service Provider Mentality  Empowering a Self-Service Organization  Transforming the Business of IT RACKSPACE® HOSTING | WWW.RACKSPACE.COM 23

Cloud Application Transformation Framework Creating Your Seamless Journey to the Cloud “Cloud HOW?” Taking Enterprises from… “Cloud NOW”CustomerDataCenter IT Application Cloud Solution Migration Environment Evolution Profiling Readiness Design Execution Realization Workshop Workshop Assessment Strategize & Migrate Support Design Assess Implement Optimize RACKSPACE® HOSTING | WWW.RACKSPACE.COM 24

Get SMART on CloudRackspace Advisory Services: Recommended Rackspace Resources: • Cloud: Vision to Reality whitepaper (right side of page)Phone: 1-800-440-1249 • Cloud: Economics whitepaper (right side of page)Email: advisory_services@rackspace.com • Take the Cloud Readiness Self AssessmentWebsite: rackspace.com/Advisory Services • Use cases: – Hybrid Hosting: Dominos Pizza and watch the videoRecommended Industry Resources: – RackConnect™: VEVO and watch the video – Private Cloud: Lighthouse1• The Big Switch, Nicholas Carr• Cloudonomics: The Business Value of Cloud Computing, Joe Weinman Rackspace• www.Cloudability.com Knowledge• http://gigaom.com/ Center• www.gartner.com “Our goal is to create the• www.forrester.com most CLOUD SAVVY• www.idc.com customers in the industry” RACKSPACE® HOSTING | WWW.RACKSPACE.COM 25

Q&A RACKSPACE® HOSTING | WWW.RACKSPACE.COM

THANK YOURackspace Advisory ServicesPhone: 1-800-440-1249Email : advisory_services@rackspace.comWebsite: rackspace.com/AdvisoryServices 27

Enterprise Cloud Forum: Adopting a Service Provider Mentality

by Rackspace Hosting on Jan 15, 2013

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