Wipro - Virtualization, The Cloud and Managed Services
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The Wipro Council for Industry Research, comprised of domain and technology experts from the organization, aims to address the needs of customers by specifically looking at innovative strategies that ...

The Wipro Council for Industry Research, comprised of domain and technology experts from the organization, aims to address the needs of customers by specifically looking at innovative strategies that will help them gain competitive advantage in the market.

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Wipro - Virtualization, The Cloud and Managed Services Document Transcript

  • 1. The Road to Better Visibility:Virtualization, the Cloud andManaged Services Produced bySeptember 2010 http://knowledge.wharton.upenn.edu
  • 2. The Road to Better Visibility:Virtualization, the Cloud and Managed ServicesIt’s true that virtualization can slash hardware costs, save energy in the data center and thus save money. Butthe technology also introduces new sets of technological worries to keep information technology (IT) shopsbusy. For instance, virtual machines have a way of sprouting like weeds. That adds complexity for systemadministrators charged with keeping mission-critical systems available. Enter the managed services sector,an industry outsourcing offshoot whose job it is to relieve clients’ IT headaches by handling all or parts of theIT function for them.For all the utility they can offer, not all managed service It’s no mystery why organizations are moving to virtualizedproviders are made equal. Even those that can achieve near environments, despite a challenging learning curve. Thesix sigma uptime are not immune to issues that can affect potential to save money is huge. In one series of case studiesclients negatively. That said, many organizations have found presented by VMWare, for example, companies usingthis outsourcing of IT – making it a virtual business function virtualization achieved a 67% reduction in total cost of– frees them to focus more resources on revenue-generating ownership for IT operations after implementation.activity. One of the major operating costs of IT infrastructure is,Managing the risk of an increasingly virtualized computing of course, labor. But new tools in the hands of managedenvironment requires executives to be up to speed on the services providers can automate many labor-intensivelatest developments in managed services. In this article, processes that would otherwise be performed in-house.experts from Wipro and Wharton explain how one of these Satya cites examples of how managed service providersdevelopments in particular will shape the work of modern have used some of these newer tools to generate savings, asIT organizations. follows: • Automation of alert monitoring has led to reduction ofSpecialized Tools monitoring efforts by as much as 80%.Expect to see a growing number of tools specifically • Automated documenting of service/help desk requests,geared toward virtual computing environments. According or ticketing, has led to reduction of ticketing efforts by as much as 30%.to Deepak Satya, head of data center services for WiproTechnologies, these tools are proliferating, and they can • Dynamic dashboards and service-level managementremove much of the grunt work typically associated tools have led to complete automation of reporting and business-as-usual communications efforts.with servers – monitoring, administration, provisioning,availability enhancement and capacity planning. • “These cost savings really depend on the delivery modelVirtualization, the management of computing resources not (dedicated or shared), delivery locations (onsite or offshore) and the baseline automation that has alreadyrepresented by actual, physical hardware, adds several twists been implemented in an environment,” Satya says.to each of these tasks.2 | The Road to Better Visibility: Virtualization, the Cloud and Managed Services
  • 3. Companies considering such services have several expense and other countries, they initially subscribed to outsourcingmodels from which to choose as follows: services,” Tomczyk explains. “Over time, companies that• pay per user; needed tighter control of facilities, personnel, costs, etc., set up or licensed their own ‘off-shore’ facilities, and companies• pay per IT resource; began offering this as an alternative to outsourcing. I see the• flat rate; and same evolution occurring in cloud computing, as companies• mandatory or optional flat rate plus pay-per-resource. that are large enough and technologically proficient moveSuch tools have come to the market in response to needs from cloud computing on the Internet to proprietaryexpressed by IT workers themselves, who sometimes clouds.”struggle with making the reality of virtualization match However, “Nothing is a panacea,” says Deirdre Woods,the promises often made by vendors. In a 2009 Network associate dean and chief information officer at Wharton.Instruments poll, 27% of the network managers, “You’re transferring costs.”engineers and IT executives who responded cited “lackof visibility” (inability to view critical data) and lack of And just because a company hires someone “in the cloud”“tools to troubleshoot performance problems in virtual to handle the hard work of IT systems management doesn’tenvironments” among their top frustrations. mean its responsibility goes completely away. Adopters of third-party providers are also managing their risk – though not eliminating it. Despite built-in risk managementOutsourcing to the Cloud mechanisms, such as service level agreements, there’sOne of the higher-profile examples of this virtualized, always a chance that the managed service provider will runmanaged services model has been Amazon.com’s Amazon into problems that block the access of staff or customers toWeb Services division. This pay-as-you-go, “platform- the data: In other words, outages.agnostic” collection of services is typical of the sector in that “You are basically running hardware, but on top of that you’reit provides massive quantities of raw computing power, data running multiple versions of operating systems, then youstorage and data center support services, while giving users have your applications running on top of that,” says Woods.the flexibility of an outsourced solution. Providers use themetaphor of a cloud, as in “cloud computing,” to describe Virtualization – which is what’s happening when a companythese services, since they are often web-based, and in moves its IT operations into “the cloud” – can enablediagrams of IT networks the image of a cloud is often used some interesting technological tricks. Woods brought upto symbolize the Internet. the example of a subordinate who managed to run the virtualization software Citrix on top of an iPad, giving himMichael Tomczyk, managing director of the Mack Center the ability to monitor the entire network of several hundredfor Technological Innovation at Wharton, compares the Wharton computers – including the virtual ones.evolution of the cloud business model to a previous typeof outsourcing. “The emergence of proprietary clouds is But such flexibility comes with a price, according to Woods:analogous to how business outsourcing evolved into off- When a problem crops up, “teasing out all these layers [toshoring,” said Tomczyk, who hosted Wharton’s Emerging locate problems] makes it more difficult.”Technologies Update Day conference, “The Future of Such challenges require problem-solving skills greaterComputing: Beyond Clouds, Ubiquitous Networks and than those that would suffice in a physical machine-onlySmarter-Than-Ever Devices.” environment. “The complexity of the environments will“When companies began outsourcing software increase with increased virtualization and adoption of thedevelopment, customer service and other functions to India Cloud, etcetera,” says Wipro’s Satya. “I wouldn’t want to call The Road to Better Visibility: Virtualization, the Cloud and Managed Services | 3
  • 4. these downsides, but certainly the skill sets and mentalityof the people who manage IT environments will have to gothrough significant changes.”What’s more, according to Satya, the silos withininformation technology that have segregated differentfunctions, such as infrastructure versus applications, arebecoming less distinct.“There will be blurring of lines between IT Infrastructureand IT Applications and Process. And the world willcertainly move from ‘system integration’ to ‘serviceamalgamation.’”4 | The Road to Better Visibility: Virtualization, the Cloud and Managed Services
  • 5. This article was produced by Knowledge@Wharton, the online business journalof The Wharton School of the University of Pennsylvania. The project wassponsored by Wipro Technologies.www.wipro.com http://knowledge.wharton.upenn.eduKnowledge@Wharton is the online business analysis journal of the WhartonSchool of the University of Pennsylvania. Knowledge@Wharton captures relevantknowledge generated at the Wharton School – through research, conferences,published materials plus much more – and distributes it online to a globalbusiness audience of more than 1.6 million subscribers across 200 countries.About Wipro TechnologiesWipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT Services Companyglobally. Wipro provides comprehensive IT solutions and services (including systemsintegration, IS outsourcing, package implementation, software application developmentand maintenance) and Research & Development services (hardware and software design,development and implementation) to corporations globally.Wipros unique value proposition is further delivered through our pioneering OffshoreOutsourcing Model and stringent Quality Processes of SEI and Six Sigma.About Wipro Council for Industry ResearchThe Wipro Council for Industry Research, comprised of domain and technology expertsfrom the organization, aims to address the needs of customers by specifically looking atinnovative strategies that will help them gain competitive advantage in the market. TheCouncil, in collaboration with leading academic institutions and industry bodies, studiesmarket trends to equip organizations with insights that facilitate their IT and businessstrategies For more information please visit www.wipro.com/industryresearch The Road to Better Visibility: Virtualization, the Cloud and Managed Services | 5