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Top 5 Ways the Cloud is Impacting Your IT
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Top 5 Ways the Cloud is Impacting Your IT


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Do you know how the cloud is …

Do you know how the cloud is
impacting your IT group today?

Regardless of how much or how little you are using the cloud today, it's having an impact on how your users consume IT and your view your services. Emerging trends in the IT and cloud industry will have profound impacts on how you deliver IT services to your users in 2013.

This presentations covers:

- How to take advantage of shifting IT delivery models
- Detailed real-world examples of organizations like your shifting IT from a cost center to an internal service provider
- How metering IT resource consumption gives you the foundation to massively improve your IT efficiency
- How you can make better decisions about where and how IT workloads are deployed

Published in: Technology, Business

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  • Transcript

    • 1. Top 5 Ways the Cloud is Impacting Your ITTodayWilliam Fellows, VP Research
    • 2. Top 5 Ways the Cloud is Impacting Your IT Today 1 The Rise of Cloud 2 Phase Transition in Cloud Usage 3 Cost Center to Service Provider 4 A Multi-Cloud World 5 The Impact of IT Metering
    • 3. A Perfect Storm Contributing to CloudProfound economic uncertaintyDo more with less (again, and again)Consumerization of ITShadow IT
    • 4. Cloud Computing Evolution Internet of Things Vertically Proliferation of integrated Horizontally federated – monolithic clouds and cloud brokering, marketplaces ecosystems
    • 5. What is driving adoption? • Consumerization of IT • Faster, more flexibility, more devices • Proxy for IT transformation • The new normal • CIO: Chief Innovation Officer • Virtualization first  cloud first?
    • 6. Phase Transition in Cloud Usage
    • 7. Cloud Market Evolution Phase 2: Management of Cloud Environments $12.8 PRODUCTS Initial Cloud Engagements Cloud-as-a-Service Focused on Infrastructure Revenue: 44% CAGR 2011-2015 CUSTOMERS Developers, SMBs FOCUS WORKLOADS Greater Traction with Test & Development PHASE TRANSITION Management Products & Project Based Investments, product intros & Vertical Offerings "Public Clouds Dominate" new deals point to: Increase in private activity, Higher-end data, Shift up the stack CUSTOMERS Enterprise Adoption (*) usage WORKLOADS Production & Mission $1.7 Critical "Focus shifting to Private/Hybrid CloudsPhase 1: On-Demand Infrastructure 2010 2011 2012 2013 2014 2015
    • 8. Phase in Journey to the Cloud Internal Private Cloud External Public Cloud 47% 38% 35% 21% 16% 15% 4% 6% 4% 6% 4% 3% Implementation Operational Assessment of IT Audit Identification No Plans Strategy Cost/Benefit Planning Cloud Computingn=68. Industry Profile - 1H ‘12
    • 9. Current State of Application Deployment Q: For each of the following, what percentage is deployed on the different service delivery platforms? ERP 64% 26% 8% 2% 90% of Workloads Remain Financial Management Software 61% 29% 8% 2% In-House… Structured Data Storage and… 57% 38% 5% Batch Workload Execution 55% 36% 9% Online Transaction Processing… 54% 39% 7% 1% Private Cloud Unstructured Data and Storage… 52% 44% 5% 40% Productivity/Collaboration 50% 41% 6% 2% IT Systems Management 49% 44% 5% 1% ITO/ Human Capital Management 49% 30% 12%8% HostingDedicated 8% Business Continuity and/or… 48% 35% 16%1% Physical 50% Public Custom-built Applications 43% 49% 6% 2% Cloud 3% CRM 41% 34% 10%14% Application Servers (Non-… 39% 53% 5% 3% Development and Test 34% 58% 3% 5% Dedicated Physical Private Cloud ITO/Hosting Public Cloud Cloud Computing Industry Profile - 1H ‘12
    • 10. Top Cloud-related ProjectsWhat are your organizations top two cloud-related projects in the next 12 months?* Internal Cloud 42% Public Cloud Assessment 27% SaaS 15% Cloud Email 10% Public Cloud Implementation 8% Internal Storage 5% Internal Management 5% Management 3% Internal Cloud Migration 3% Hybrid Cloud 3% Cloud Storage 3% New Data Centers 2% Migration 2% Internal Hardware Expansion 2% Disaster Recovery 2% Other 15% Cloud Computingn=62. *Note that due to multiple responses per interview, total may exceed 100%. Industry Profile - 1H ‘12
    • 11. Cost Center to Service ProviderCost Center to Service Provider
    • 12. Cloud adoption snapshot: driversBiggest Motivation for cloud usage Cost savings on hardware/… Flexibility in scaling IT up and down Quicker time to market Cost Savings on IT Staffing/Admin Improved Productivity Disaster recovery/business continuity Self service delivery 0.0% 20.0% 40.0% 60.0% 80.0%Source: The 451 Group Cloud End User Survey 2011
    • 13. Unlocking your inner service provider selfWhat IT organizations can learn fromservice providers Elasticity Multi-tenancy Billing and chargeback Cost discipline Open source expertise Customer service
    • 14. Private Cloud Enablement Imitate Turn your own datacenter Emulate into a cloud that works like Replicate Amazon, Rackspace…Advantages: Security and compliance Leveraging existing investment in datacenters Powers new IT-as-a-service model inside organizations New IT refresh cycle for suppliers!But Private cloud is ring-fenced and finite Doesn’t reproduce elasticity of hosted cloud
    • 15. A Multi-Cloud World
    • 16. A multi-cloud worldCloud service providers and hosting partners will be requiredHybrid model is dominant: Virtualized, automated on-premise infrastructure with a hosted elastic option Rackspace, Amazon, VMware,, Microsoft and others acknowledge this Managed service providers, co-lo, datacenter operators Converged infrastructure – big investments e.g. VCE Community, partner, vertical
    • 17. Energy: Internal service delivery via private cloud Goals:  The prize: greater agility, save money  Overcome CFO scepticism with business case for cloud  Private cloud for most apps with hybrid for ‘infinite scale’ scale  Manage as one systemBusiness challenges: Benefits: Thousands of guerilla AWS users  Enfranchise vs outlaw Public cloud not ready, not cheaper  Move to in-house private cloud for Inappropriate for many apps, insecure most apps Until DCs are depreciated there’s no  Use more SaaS – controlled by IT driver for change  Most savings will come from hybrid Eco reality: internal budgeting based IaaS over multiple years for ‘infinite on ‘how much will you use next year scale’  PaaS – some PoCs, no use case
    • 18. Financial Services: service provider to the business Goals:  Become a service provider to the business ‘Big Four’  Four-year journey - 2,500 servers in 2011 Australian bank  Using cloud orchestration layer to manage hybrid  Security is way behind – “pulling the regulator with us” Organizational transformation Benefits: Standard platforms, reusable  Time to market components  40% cost savings Enterprise services = manufacturer Roll out across all units, geographies  Flexibility Sourcing from multiple clouds  No new datacenters Inject and control virtual firewall into  No longer rely on one cloud sourcing partner
    • 19. Life sciences: Amazon IaaS, hybrid cloud Goal: To become an internal cloud hoster and service provider using public/private clouds, featuring self service, best execution venueBusiness challenges: Cloud solution: Save money. Not build new  Multiple apps, users and groups datacenters for near-term, raw capacity on EC2 More predictable cost model  Using VPC tactically for massive Time to results, market scale Get benefit of public clouds  Testing cloud on-ramps to EC2 internally and others clouds (IT ops)  Testing private cloud (IT ops)
    • 20. The Impact of IT Metering
    • 21. What are the characteristics of IT Metering? Propaganda vs Reality Know where you are before you know how to get where you’re going You can’t improve what you can’t measure Measuring what matters Comparing across environments Best Execution Venues Foundation of an IT utility
    • 22. Cloudonomics IT cost center to IT as a service Benchmarking against Amazon • AMI a de facto standard? • VMware in the enterprise Cost allocation - it’s a rate card Budgeting – run wild/consumption vs allocation Support Opex vs Capex decisions Showback and shadow billing Budgeting reality, depreciation Is the organization ready?
    • 23. So how do you make it happen? Rob Bissett Vice President, Product Management
    • 24. 6fusion - Summary Overview• Headquarters Raleigh, NC (Research Triangle Park)• Background Founded in 2003, incorporated in 2008• Investors Intersouth Partners & Grotech Ventures• Alliances Asigra, Equinix, HP, VMware…• Focus Area Private Cloud, IaaS Utility Metered Cloud
    • 25. A Utility Requires Normalized Metering• This applies to all utilities & commodities - example: electricity meters are calibrated in common billing units, the standard being the kilowatt/hour• Normalized cloud/IT metering is critical to seamlessly and transparently quantify & cost capacity and measure individual usage & aggregate demand. Native in vCenter Fusion of 6 CPU in Mhz IT metrics MEM in MB DISK I/O in KBps LAN I/O in Kbps  Metering - Billing mCloud WAN I/O in Kbps  Showback - Chargeback STORAGE in GB  Utilization Profiling  Cloud Interoperability
    • 26. 6fusion – Utility Metered Offering kWAC kWAC Pro kWAC
    • 27. 6fusion – Utility Metered Offering kWAC kWAC Pro kWAC
    • 28. Cloud Resource Meter1. Real-time IT consumption – virtual & physical infrastructure2. Insightful reporting – capacity & consumption – trending3. Internal chargeback – export data to excel or current IT cost accounting system4. External cloud costing – accurate costing of public workload deployment5. Simple installation – VMware vApp or agent for physical machines6. Hypervisor agnostic - API-based 6fusion adaptor connects to hypervisor vCenter Console View usage data in either kWAC Enables IT to pivot from departmental cost center into an internal line-card service provider with measurable and predictable business & IT ROI
    • 29. What This Means For You You are now competing with some1 The Rise of Cloud of your IT vendors Where you are in the transition2 Phase Transition in Cloud Usage will determine your next steps Get on the path to becoming an3 Cost Center to Service Provider internal service provider You have to have the flexibility to4 A Multi-Cloud World deliver resources in the best venue IT metering gives you a foundation5 The Impact of IT Metering for under
    • 30. Real World Example of IT Metering• Challenge • Couldn’t get clear comparison of efficiencies Major US University across environments – public and private – System for IT investment decisions• Solution • 6fusion Cloud Resource Meter for IT metering, cost comparison and usage showback• Results • Accurately managing resources and comparing competing solutions “The faculty tends to believe that his on-campus services are expensive. This is partly because they compare his charges to ‘the basic price of an EC2 instance on the Amazon website,’ without factoring in additional charges for getting data in and out of Amazon. The WAC helps make these comparisons more accurate.” - Metered IT: The Path to Utility Computing Paul Miller
    • 31. Thank You! Go to Sign up today for immediate access to Cloud Resource Meter. Use the code “451webinar” and get $100 in free computing!**Offer valid through October 31, 2012. No cash value. Eligible only to 6fusion direct customers