Lync In A Managed Cloud
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Breakout session at Enterprise Connect; Lync In A Managed Cloud: A Good Alternative To An On-premise And Self-managed Lync Deployment? As organizations continue to march towards adoption of UC solutions and Lync deployments, they are facing the question of whether to deploy Lync in their own datacenters and self-manage the solution or host it with a Cloud Provider. Traditionally the Cloud's strongest benefits are on the IAAS side, but with the evolution of Managed Cloud, there is optimism that complex Unified Communications (UC) solutions can be deployed in Managed Cloud while preserving manageability, agility, and security of the Lync solution. In this session we explored the major challenges facing deployment of Lync in a private cloud and how Rackspace's Managed Cloud can be a strong economically and technically viable alternative to an on-premise and self-managed Lync deployment.
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Lync In A Managed Cloud
- 1. Lync in Rackspace Managed Cloud: A Good Alternative to An On Premise and Self-managed Lync Deployment?
- 2. • About the speakers • About Rackspace • Major challenges with on-premise deployments • Lync in Rackspace Managed Cloud Agenda 2www.rackspace.com
- 3. 3 About the Speakers www.rackspace.com SEBURN WILSON Senior Manager, Product Rackspace Twitter: @SeburnWilson HASSAN MALIK Product Manager, Lync Rackspace Twitter: @HasnMlk
- 4. 4www.rackspace.com Rackspace is the # 1 Managed Cloud Company 9 Worldwide Data Centers GARTNER 2014 MAGIC QUADRANT LEADER FOR Cloud–Enabled Managed Hosting IN BOTH NORTH AMERICA AND EUROPE 300,000+ Customers Global Footprint Customers in 120+ Countries #1 Hosting Provider for the Internet Retailer Top 1,000 Ecommerce Websites (4th consecutive year) Annual RevenueOver $1.9B 69% 100OF THE We Serve FORTUNE® 110,000+ Servers 50,000+ VMs ≅70 PB Stored
- 5. 5www.rackspace.com About Rackspace Named a Top Performer for Hosted Private Cloud by Forrester Research Inc. in “The Forrester Wave™: Q1 2013 Home of Fanatical Support® Founder OpenStack® Open source software for building private and public clouds
- 6. 6www.rackspace.com Global Reach Serving Businesses in 120+ Countries North American Region Data Centers: Ashburn, VA Chicago, IL Herndon, VA Grapevine, TX Richardson, TX Offices: Amsterdam, Netherlands Hayes,UK Zurich, Switzerland Data Centers: London, UK Slough, UK Offices: Quarry Bay, Hong Kong Sydney, Australia Data Center: Fo Tan, Hong Kong Erskine Park, Australia EMEA Region APAC Region Offices: Austin, TX Blacksburg, VA Chicago, IL Cincinnati, OH Duluth, GA Mexico City, MX New York, NY San Antonio, TX San Francisco, CA St. Louis, MO
- 8. 8www.rackspace.com Cloud Office at Rackspace Global Footprint One of the largest Hosted Exchange Providers Cloud Office application portfolio 85% of all hosted SharePoint Revenue
- 9. 9www.rackspace.com Top 3 Major Challenges with Self-Managed Lync Deployments Expertise Resource Contention Financing
- 10. • Convergence of multiple technology disciplines • Systems integration • Hybrid expertise • Operational efficiencies • Network Security skillset 10 Deployment Challenge: Expertise www.rackspace.com
- 11. 11 Deployment Challenge: Resource Contention www.rackspace.com • Too many projects • All high priority • Not enough technical resources • Timelines get pushed
- 12. • Upfront costs: Infrastructure & Licensing • Labor Costs • Operating Expenses 12www.rackspace.com Deployment Challenge: Finance
- 13. 13 How does Rackspace Managed Cloud address these challenges? www.rackspace.com
- 14. • IaaS vs. Managed Cloud • Leader in Gartner’s Magic Quadrant for Cloud-Enabled Managed Hosting • We are a technology marketplace • #1 in 451 Research’s Managed Hosting Market Monitor 14 Managed Cloud is Different www.rackspace.com
- 15. 15 About Rackspace: An organization of Experts 170+ RedHat Certifications 90 RHCEs Certified Engineers 12 RHCSA Certified SysAds 12 RHCA Certified Architects 165+ Cisco Certifications 122 44 270+ Microsoft Certifications 63 MCSE Solutions Expert 39 MCSA Solutions Associate 100 MCTS Technology Specialist, Technology Specific VCPs Data center Virtualization VCAPs Data center Administration www.rackspace.com VTSPs Certified Associate 131+ VMware Certifications
- 16. 16 Lync Expertise www.rackspace.com 100s of Microsoft Certified Professionals Team of specialists with Lync and UC expertise Fanatical Support® 24x7x365 Extension of your IT team
- 17. Hyper-V, VMware® , Bare Metal or Hybrid 17 Lync in Rackspace Managed Cloud is Extensible www.rackspace.com Global Data CentersAD Integration VPN or Dedicated Circuits HA & site resiliency
- 18. 18 Lync at Rackspace is Flexible www.rackspace.com BRING YOUR OWN VOICEFlexible Support Service Boundaries Application integration Full access to Lync APIs
- 19. 19 Finance www.rackspace.com Utility-based billing for Support and Licensing Flexible license options OpEx Model
- 20. # OF EMPLOYEES SERVER GROWTH RATE LOCATION REVENUEINDUSTRY DESIRED SUPPORT LEVEL Case Study: Company Profile Finance NORTH AMERICA, Europe, APAC $1B 1,773 MANAGED 5.0% 20www.rackspace.com
- 21. 21www.rackspace.com Case Study: Reference Architecture
- 22. Three Year TCO Results Summary Year 1 Year 2 Year 3 Total Self-Managed –Annual Capital Costs $117,588 $13,803 $9,133 $140525 Self-Managed –Annual Operating Expenses $271,746 $287,889 $304,438 $864,073 Annual Self-Managed IT Costs $389,334 $301,692 $313,572 $1,004,598 Rackspace –Annual Hosting Costs $187,000 $195,350 $205,118 $587,468 Annual IT Cost Savings $202,334 $106,342 $108454 $417,130 Rackspace – Improved Service Level Benefits $0 $0 $0 $0 Total $202,334 $106,342 $108,454 $417,130 TCO Overview • Self-managed, self-hosted 3-year infrastructure cost: $1,004,598 • Rackspace Lync in Managed Cloud 3-year cost: $587,468 • Rackspace Monthly cost ~$15,000 • Rackspace cost advantage: $417,130 or 41.5% 22www.rackspace.com * TCO generated using Alinean
- 23. 23www.rackspace.com Operating Expenses Current Server Hardware Support Costs $3,369 $3,931 $3,931 $11,231 Software Support and Subscriptions $5,879 $6,172 $6,481 $18,532 Network Infrastructure Support Costs $3,904 $4,099 $4,304 $12,306 Storage Warranty Costs $0 $0 $0 $0 Data center Power and Facilities Cost $10,345 $10,863 $11,406 $32,614 Current Systems Administrative Labor Cost $205,835 $219,215 $233,464 $658,514 IT Training Costs $12,980 $13,305 $13,638 $39,923 IT Staff Turnover Costs $6,005 $6,155 $6,309 $18,468 Network Bandwidth Costs $9,000 $9,000 $9,000 $27,000 Annual Leasing Payments $0 $0 $0 $0 Total Annual Operating Expenses $257,317 $272,739 $288,531 $818,588 Self-Managed Annual Cost Details Year 1 Year 2 Year 3 Total Capital Costs Current Server Hardware Costs $33,080 $7,678 $2,702 $43,460 Server Software License Costs $23,514 $1,176 $1,234 $25,924 Network Infrastructure Costs $48,794 $2,440 $2,562 $53,795 Storage Costs $0 $0 $0 $0 Backup Infrastructure Costs $12,200 $2,510 $2,636 $17,346 Total $117,588 $13,803 $9,133 $140,525
- 24. Annual Cost Comparison 24www.rackspace.com $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Initial Year 1 Year 2 Year 3 Self-Managed Servers Rackspace Managed Service • Rackspace monthly Cost ~$15,000
- 25. Three Year TCO Result Summary 25www.rackspace.com $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Self Managed Rackspace Server Hardware Costs Server Software Costs Network and Backup Costs IT Labor Costs Datacenter Power and Facilities Costs Rackspace Hosting Costs • Over $800k in operational costs over 3 years for self- managed Lync.
- 26. 26 Summary www.rackspace.com Lync in the Rackspace Managed Cloud is a technically and economically viable alternative to an on-premise, self-managed Lync deployment Challenge Rackspace Managed Cloud Expertise Economies or Expertise Resource Contention Extension of your IT Finance OpEx; utility based billing
- 28. THANK YOU RACKSPACE® | 1 FANATICAL PLACE, CITY OF WINDCREST | SAN ANTONIO, TX 78218 US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM © RACKSPACE LTD. | RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN THE UNITED S TATES AND OTHER COUNTRIES. | WWW.RACKSPACE.COM
Editor's Notes
- Is Lync in Managed Cloud a viable alternative to On-premise, self-managed Lync? We are going to explore this topic this afternoon. Who is this room understands what we mean when we say Managed Cloud as opposed to unmanaged cloud? Majority? Minority? We hope to clarify that today if anyone isn’t clear. I’ve been at Rackspace for 2 years. I have over 18 years in the technology industry with 12 years of consulting in Systems Integration, Virtualization and Unified Communications. During that time I worked on two of largest hosted UC Projects. I worked as a lead architect for a 140,000 user OCS 2007 R2 global deployment. The project involved multiple vendors and we deployed every feature of OCS 2007 R2. My other notable UC project was another global customer with 180,000 Lync seats. So I have some lessons learned and scar tissue from working on these engagements.
- When you leave here today, we want you to understand Rackspace, the Managed Cloud and Specifically Lync in the Managed Cloud, including economies of expertise. Who is this room understands what we mean when we say Managed Cloud as opposed to unmanaged cloud? Majority? Minority? We hope to clarify that today if anyone isn’t clear. I’ve been at Rackspace for 2 years. I have over 18 years in the technology industry with 12 years of consulting in Systems Integration, Virtualization and Unified Communications. During that time I worked on two of largest hosted UC Projects. I worked as a lead architect for a 140,000 user OCS 2007 R2 global deployment. The project involved multiple vendors and we deployed every feature of OCS 2007 R2. My other notable UC project was another global customer with 180,000 Lync seats. So I have some lessons learned and scar tissue from working on these engagements. Maybe move “The reason I bring this up is when we talk about economies of expertise in a Lync Managed cloud you not only do you get my experience but also the experiences of other Lync and Microsoft Technology experts on our team. We become and extension of you IT which includes our expertise and industry experience.”
- Prior to coming to Rackspace I worked for a large service provider (I won't say their name), but let’s refer to them as grandma's phone company Maybe add – And let’s face it, grandma is sweet, see generally means well, but she is slow and set in her ways and re-acting to change is painful. Are you with me? So I'm working at grandma's phone company and I get assigned as a lead technical architect for huge telecom managed service. The customer has Avaya, Legacy Nortel stuff (Avaya Red and Blue) all over the place. The project is not going well. We are falling short. One area that was not being addressed was the ability to centrally manage remote PBXs. So each week I’m attending status meetings and getting an ear full (rightfully so). So I start the process of solving this problem within the organization. I call one team, a week later a get a response that directs me to another team and so on and so on. Finally after 3-4 weeks I’m talking to the “right team” and tell them my requirements. Another 3 weeks goes by and I finally get pricing on a virtualized solution that doesn’t meet the requirements. I find out they can’t support the Operating Systems I need to run the software. So I escalate to find out if they can make an exception? I also inform them that technicians will require VPN access to the solution and a Site to Site VPN to the customer site. I’m told that a completely different team would need to be engaged to figure that out and they weren’t quite sure who I would need to talk to (totally disjointed). By this time I’m up to 7 weeks’ worth of butt chewing’s (I’m really taking it or the team). I just happen to talk to one of our Telecom Engineers and he asked if I considered talking to Rackspace and I said no I needed to figure out how to do this internally. Well a week goes by and I’m informed they can’t make an exception for the Operating System Version I need, so 8 weeks and another butt chewing into this and I still can’t solve the problem. Does this sound like an agile or nimble organization? Do they sound Fanatical in the service they provide? So I asked our engineer, what was the name of the company you mentioned and he says Rackspace. So I look them up, feeling pretty pessimistic at this point. I call, I get a live person on the phone, tell them where I work, what I’m trying to solve and the guy says, let me find the right account team and I will back to you in a few hours, will that work, and I’m like yes, sure whatever. This is where things get awesome, I get a call back in a few hours, I lay out exactly what I need (I need a single tenant virtualized solution, 6 Virtual Machines, 4 Windows servers with 1 32-bit Server, 2 Linux Servers), I need a firewall with 20 VPN access licenses and Site to Site VPN to customer site. I said I also need help managing the solution if they can provide that (managed cloud before it was branded that way), I’m resource constrained. The guy says can we meet tomorrow and go over the proposal. Tomorrow? I just waited 8 weeks for disappointment. So tomorrow comes and we sit down and walk through the proposal. The proposal is right on, Rackspace nailed it, met all my requirements, 50% of the monthly cost of the internal solution that was proposed that didn’t even work. The solution included Windows and Linux support, Network Security Resources, Hyper-Visor Support, Managed Backup, Site to Site VPN, with 20 remote connections. Rackspace provided a single tenant virtualized solution (Managed Cloud), provided support resources I didn’t have (Specialist), they were Fanatical in the way they did it, Agile with my request. Even more incredible was a single point of contact for everything (not multiple disjointed teams). So I’m blown away, go home and tell my wife if I ever leave my current job I’m going to work for Rackspace (I had found my people). Here I am.
- In the previous slide we talked about our customer base of 300,000+ customers in 120+ countries... In order to provide these customers with the level of service they demand, we have strategically located Data Centers and Rackspace offices around the globe...with our corporate headquarters in San Antonio Texas.
- We provide services across multiple Industry verticals 9 Global Data Centers (so we have global footprint) Our IAD data center I consider an Inter-Galactic data center because it's close to Washington DC. I don’t think any of the people in DC live on planet earth. Lync is part of Rackspace Cloud Office: Lync launched in July 2014. Rackspace had a very strong collaboration portfolio consisting of Exchange and SharePoint and this experience along with customer demand in the industry became I driver for adding Lync to the collaboration portfolio 500 Plus Lync Customers Size ranges from 10 users on multi-tenant to 5000 Users on Dedicated Over 500,000 Exchange Mailboxes 85% of hosted SharePoint revenue comes from Rackspace?
- There are more than 3 major deployment challenges, but we are only going to discuss these 3 because the Rackspace Managed cloud can help solve these challenges and we are limited to 45 minutes. So we want to talk about the expertise required to deploy a Lync solution as a deployment challenge and potentially a deployment barrier Resource Contention – Too many projects, not enough time and resources to get them done Finance, do you want to incur the upfront cost or do you want to spread the cost out over time with an opex model We will cover each topic in more detail as we move through the presentation
- Convergence of Different Skillsets Lync deployments require a very unique skillset. Microsoft technologist are very comfortable with technologies like Active Directory, Windows Server, Exchange and SQL, but if you want to deploy telephony and video features, this isn’t something a Windows Technologist typically brings to the table. This isn't to insult the aptitude or take away from anyone's technical capabilities, it just takes years to become proficient with all the technologies involved in a full Lync deployment. The same thing holds true when you talk about a Cisco or Avaya Voice Expert. Translating those skills to Microsoft technologies isn’t the easiest thing to do in a short time frame. I believe this is a barrier to some companies not deploying the Lync product. They are sold on the solution, maybe they even own the Lync licenses but the project never gets off the ground because of this missing skillset and deployment know how. There are Lync experts in the market, but they are rare and aren’t readily available in all cases. So do you want to develop that skillset in house or do you want hire this skillset. When you think about self-managing Lync on premise vs. using a hosting provider there are several questions you really need to ask. 1st question: Do you have the internal staff with the skills to self-manage the Lync server solution ort (e.g. Server Admins, Network/Security Admin, Lync Engineer/Architect and possibly a Telecom Engineer)? If you answer yes to this question, then self-managed may be the way to go. 2nd question: Is maintaining and operating Lync strategic to your business or could your time be better spent on more strategic objectives? Does your team have systems integration expertise? What about hybrid Architectures. Let me define what hybrid means or explain the different contexts. One view of hybrid is a mixture of bare-metal servers and virtualized servers. So for example you may deploy your Lync Front End on a dedicated physical server to ensure adequate performance and virtualize other Lync roles on VMware ESX or Microsoft Hyper-V. Do you have virtualization experts? Do they have expertize virtualizing Lync workloads? Rackspace will take the time to look for the most economical option that makes sense and meets Lync performance requirements. We won’t recommend a configuration that can lead to a bad experience. So sometimes our expertise will mean pushing back. Another hybrid configuration with a different context is a mixture of on-premise Lync and Lync online or on-premise Lync with Exchange Online. Does your team have the configuration expertise for this hybrid scenario. Operational Efficiencies: When I started at Rackspace I was involved in a deal and one of the account managers told me it might take 3-4 weeks to get the infrastructure online and wanted to know if that would be OK. I started laughing because grandma’s phone company would take 6-9 months if the stars aligned. Our teams have been doing this for over 15 years and they’ve gotten really good at it. We have dedicated Network Security Professionals to handle firewall configurations and modifications, F5 configurations and Modifications. These guys eat, sleep and breath these technologies daily. So is this a skillset you have one your staff?
- On the previous slide I asked the question - Is maintaining and operating Lync strategic to your business or could your time be better spent on more strategic objectives? So do you have other projects that are more strategic to your company? If anyone in here is thinking I have 10 Lync Engineers just sitting around doing nothing but Lync, can you send me there resume’s I’m totally kidding. Another personal story from my past life that validates economies of expertise and resource contention. I was talking to an insurance provider and they had been working on a migration and consolidation project for 2 years and hadn’t even put a dent in it. The company had smart and dedicated people, so this wasn’t a question of intelligence or work ethic. Although I wish there was a way to measure a companies intelligence quotient They had never done this type of project and they were pre-occupied with their daily responsibilities. I had my 3rd meeting with the VP of IT and he asked, why should I hire your company to do this work? I simply asked how long has your team been working on this project and how far have you gotten. We have the scare tissue, the lessons learned and we aren’t pre-occupied with your daily operations. If you want to get this project done this decade you probably want to consider hiring a team the specializes in this type of work. So the Managed Cloud makes this possible and can reduce resource contention for getting work done because you have a team of experts at your disposal. This was not a Lync specific example, but the same concept applies. Economies of expertise allows Rackspace to be an extension of your team, but not a replacement. We partner with your IT team so that you can start realizing the benefits of UC sooner than later. Make Sense? Yes/No?
- When you add up the upfront cost of deploying and self managing an on premise Lync solution your upfront cost can be substantial. When you start to compare the cost of Lync in a managed cloud, the majority of the self-managed cost will be associated with the initial capital cost (servers, network devices, maintenance and licensing) and Operating Expenses (e.g. fully burdened labor costs). Capital Cost: Server Hardware Costs Server Software License Costs Network Infrastructure Costs Storage Costs Backup Infrastructure Costs Operating Expenses: Current Server Hardware Support Costs Software Support Costs Network Infrastructure Support Cost Datacenter Power and Facilities Costs Labor Costs IT Training Costs IT Staff Turnover Costs Network Bandwidth Costs So as we move forward we’ll discuss how managed cloud can alleviate some of these concerns. Add notes for transition to Hassan:::::
- What is a definition of the cloud Our skilled IT workers become an extension of your IT team. We provide economies of expertise and help you manage your infrastructure and applications. Hardware experts, datacenter experts, Operating System Experts and Application Experts (Lync, Exchange, SharePoint). We are part of the Rackspace Managed Cloud and included with the solution. You call and we answer. Managed Cloud isn’t do it yourself Infrastructure as a service. Our Managed Cloud isn’t traditional colocation. I came from that world. In that world you might buy all the hardware and host and manage it with a provider. We simplify this model, you pay a monthly fee, we rack and stack the servers based on the requirements, configure the network, install the OS, install and configure the apps while keep you in the loop as we go. The environment is completely isolated from other customers. The turn around time is incredible.
- Provisioning of new services Operational Efficiency: e.g. we can spin up an on-metal server in less than 5 hours.
- We have recommendations as Guides if for example, cost is a major concern vs. performance.
- Our Lync solution allows application integration (you aren’t restricted like multi-tenant). Maybe you decide you want to bring in a Contact Center certified for Lync. You can. You have full access to Microsoft Unified Communications Managed API for custom Lync solutions. You may want to develop your own customer workflow app from SharePoint that triggers a group IM. Maybe you’re a value added reseller who develops applications that integrates with Lync. You can host Lync and your custom Lync app with us and provide a cloud based solution. You can start small with a proof of concept, scale out to support all features and more users and expand to High Availability or Site Resilient configurations. We can do this without long deployment times. So lets say you start with IM and Presence day 1, then you decide you want to deploy all Lync features including dial-in conferencing and Enterprise Voice. Now 8 months done the road you determine that Lync has become mission critical and a single point of failure solution is not an option. Rackspace has the operational efficiency to extend and accommodate almost any configuration scenario as you mature. You aren’t locked into a specific configuration. Quality. We can support you bringing your own MPLS provider that cross connect to your Lync solution in the Rack. 99% percent of the time voice over broadband (internet) works just fine, but if you want to ensure quality MPLS or private lines are an option
- Quick Case Study In order to support my Lync in the Managed Cloud argument I will use a fictitious customer with the following profile: 250 Employees Professional Services Industry No Lync expertise in-house Customer already has Lync Online Plan 3 User Software Licenses (SL). Note: Rackspace can provide Lync licensing on a utility (per user) basis for an additional monthly cost. Lync Enterprise Plus Features (with dial-in conferencing and Enterprise Voice) with Remote Access and Federation Enabled Rackspace proposed a dedicated private cloud Total monthly cost $4,000.00 Infrastructure + Fanatical Lync Support (SIP Trunking is not included in this cost, but Rackspace does help manage the Lync integration with SIP Trunking providers as part of the solution) 8am x 5pm CST Fanatical Support for Lync with 24hour on Call Support for Critical Outages (link to legal description) Supporting Lync and the Division of Labor If we assume just 1 Lync Engineer will cost $82,000 per year, your monthly cost is $82,000/12 = $6,833. This does not take into account the fully burdened rate for training and benefits. I haven’t included the cost of Windows server licenses, server/network hardware, support/maintenance or any additional labor cost associated with a Lync solution (e.g. network engineers, SQL Admins etc...). So in this very simple analysis where we only account for a single Lync engineer the Lync@Rackspace solution costs ~$34,000 less per year to operate than an on premise Lync solution . The division of labor is an intangible side benefit that can result from this approach. Supporting and Engineering a Lync solution takes a unique skillset that doesn’t happen overnight. Outsourcing that specialization can help your organization focus on the collaboration benefits of Lync and realize the full benefits.