IT Modernization and Cloud Computing


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IT organizations are challenged with making tradeoffs between innovation and maintenance of legacy systems. These decisions are often made transactionally without a framework for modernization and a visionary roadmap. Cloud computing offers IT organizations innovation capabilities with Platform as a Service and opportunities of reducing the cost of operating legacy systems with Infrastructure as a Service offerings.

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  • We are talking cloud, but in the context of IT ModernizationWe have a key note from the CIO of MS Canada who will talk about his perspective on the problem. Then we’ll have Navantis, a MS partner, who provides a number of services, but more recently has been providing an offerring of strategic consulting services for IT Modernization to large customers such as Cenovus, TD Bank, MTO, and how they see Azure as a strategic component to help IT organizations modernize, stay current, and innovate aligned with their business.
  • Cindy, need Picture, something about SQL or DatabasesTalking Points SQL Currency Oracle vs. SQL Costs of heterogenousdbms systems Dependencies of applications that sit on top, custom, 3rd party, other databases, BI on top of that.
  • Talking Points of this: Windows XP SQL Currency – custom support agreements Y2K Don’t so much as motivate to modernize, they force us to modernize. Security issues that are obvious motivators But do we leverage the new capabilities of the new version Are we looking at benefits, or just the costs, minimize the disruption. Banks won’t go to the latest & greatest, we won’t go early adoption, lengthy certification processes. Is your style reactive, proactive.
  • The catch 22 trap? Server product, or 3rd party that is bound to an older version? How many you can’t upgrade to, version timelinesWhat if you have a BYOD strategy?Strategy to align with Adoption/Usage trendsDo you worry about the last 10% of laggards, 10% of early adopters or the 80% of those currently using?How do you take the browser out of the equation? Delivering your app a different way? Maybe you use native mobile apps?
  • Talking PointsPlatform technologies: VB6, Classic ASP, Older Java, Cobol, PB, Delphi, SharePoint 2003, Older CMS = Live Link, Lotus NotesResources are harder to findScarcity drives up costsBeing held hostage by key resources who are afraid to move, no mitigation strategy, how to avoid the trap?Who will bite that bullet?If you are just maintaining but not moving a head, then this is lost money
  • Talking Point: network, server, storage, switches, load balancers, cooling, power physical access security, growth, back up & recovery strategy, fail over, disaster recovery security hardening Managing vendor relationship Procurement costs, acquisition costs, delivery times Implementation & testing Are you able to remain agile when you manage your own infrastructure? Are you able to scale up, easily? Down? Are you able to drive efficiencies as you scale up? Virtualization has started to help with all of this. What is your strategy for leveraging the cloud?
  • Summary Slide We have talked about a number of modernization challenges These are just a few, there are others, and they creep into our information technology assets. But broadly, we can think about where our IT budgets are
  • Talking Points Almost 80% of IT budgets focus on maintenance of existing capabilities. These do not add additional benefits to the organization. When we put into place these legacy technologies, the capital investment was justified by the business benefits. Do you still get annualized benefits that merit the costs? 66% of CIOs stated that they are being asked to cut costs. But when costs are being cut, where are they being cut from? If you cut 20% of your innovation budget, that’s 20% of 20%, only a 4% net savings. But if you could cut 20% of your maintenance costs that would represent 16% of your total budget. For every 1% of your maintenance budget you reduce is equal to 4% on the innovation side. 56% of CIOs IT is regarded as a strategic asset. What side of these investments is strategic?
  • Talking Points: Business Changes rapidly Is IT not able to keep up? How can they be more agile to meet Business challenges Continue to have important influence in the budgeting process Is IT a disabler? Does your business look forward to collaborating with IT or do they prefer to stragegically look for other solutions SaaS We are seeing more and more business groups come to us for help Is IT proactive or reactive to the business? Are you in front of the business changes? is your Thought leadership backed up by an agile ability to react quickly. Agile isn’t chaos, it’s disciplined, continuous delivery. Dev Ops Trends
  • Talking pointsAre my IT investments being directed toward innovations that are strategic to my company’s competitve advantage?Or are my IT investments being spent on “lights on”, commodity infrastructure? During industrial revolution, factories generated their own power? But when that became a commodity, you move away from that service and focus on unique business advantages, outsource, buy commodity elsewhere
  • Talking Points IT organizations can be agents of change
  • Modernization Important, but it’s not a one time thing. It’s ongoingIt’s hard to do this once, then wait to do it again.Do you have to wait for big budget allocations to fix big problems, or you can invest incrementally every year.Framework for portfolio management which includes roadmap for modernizationAllocate a portion of “maintenance” for legacy debt reduction.. Legacy debt reduction, is not really innovation, it’s smart maintenance.If you are maintaining roads, make it cheaper to maintainHow do you avoid adding to your problems with the money you are spending on innovation.
  • Here are examples of where new innovation strategic investments are going. Are you investing in theses? Are able to make these investments smartly, decoupled from the legacy, avoid dependency?Many of these innovations can require an elasticity typically available in an on premiseMobile devices may require a lot of firewall punching?Extending capabilities beyond your typically employees.Working with larger & larger data sourcesDo this while remaining agile. Raif can talk about Cenovus
  • We’ve dangled a few opportunities in front of you, but also explained the challenges to modernization.But there is a silver lining? After the break we want to delve into 2 key areas:We want to introduce you to Windows Azure and have you think about dealing with modernization challenges. With the cloud in mind, you will have a multi-dimensional toolkit for creating a modernization strategy. Secondly, we want to share with you a framework and approach to modernization we use with our in a strategic engagement to help you untangle your modernization challenges and unlock more innovation within your organization.
  • There are lots of challenges for modernization, there are lots of opportunities for innovation. Approaching these challenges & opportunities with cloud in mind, will give you a multi-dimensional toolkit for creating a modernization strategy.
  • Iaas: SP/App Farm in one cloud service, AD/DNS in another cloud service, virtual network
  • Paas: Mobile extension into azure with AMS
  • Paas: Mobile extension into azure with AMS
  • There are lots of challenges for modernization, there are lots of opportunities for innovation. Approaching these challenges & opportunities with cloud in mind, will give you a multi-dimensional toolkit for creating a modernization strategy. After the break, Peter will introduce us to Windows Azure.
  • We have holistic approach Operations Infrastructure ALM Governance & Business / IT Alignment Service/App Assessments Application – top Down Platform – Database, CMS, ERP Modernization Roadmap to fit the culture of the organization
  • Dependency AnalysisCranfield Business Benefits Dependency MapRationalizationReplatforming
  • Rationalization: Consolidate, Decommission, ReplaceInfrastructure Reduction: Minimize Patterns, Technologies – minimize process & skill varietyGovernance is effective in Agile. Eliminate Shadow IT. If you are the CIO running your IT department, drive better service offering, but your are in competition with your business groups who are outsourcing. This will shrink your innovation, loses you economies of scale. Are you a strategic asset? Business Alignment is an important agreement. You can do it all yourself. Maybe your business wants to, vendor management, solution managements. What is your key competitive advantage.
  • IT Modernization and Cloud Computing

    1. 1. FIND YOURSILVER LININGIN THE CLOUD• Barry Gervin, Director EDC, Navantis
    2. 2. Strategic IT Modernization MODERNIZATION CHALLENGES
    8. 8. Strategic IT Modernization MODERNIZATION CHALLENGES
    9. 9. THE TRADEOFF PROBLEM 66% of CIOs stated they are being asked to cut costs. Maintenance Innovation 56% of CIOs regard IT as a strategic asset for their company. 2012 IT Budgets
    10. 10. “By 2017, CMOs willspend more on ITthan their counterpartCIOs”Laura McLellan, Research VP, Gartner
    12. 12. Strategic IT Modernization IT COMMODITY
    14. 14. Strategic IT Modernization IT INNOVATION TRENDS
    17. 17. SHAREPOINT IAAS EXAMPLE LB WFE AppSvr SQL AD/DC/DNS AD/DC/DNS Cloud Svc 80 VPN Tunnel Cloud Svc 2012 Virtual Network AZURE ONPREM
    18. 18. PAAS EXAMPLE (COUPLED) Legacy 3rd Party Modern Mobile Solution Service Management Mobile Field Worker (Native Device App) Browser REST/Integration (Azure Web Role) Database Queries SOAP APIs App Services Microsoft Azure Platform
    19. 19. PAAS EXAMPLE (DECOUPLED, ROBUST) Legacy 3rd Party Modern Mobile/Cloud Solution Service Management Mobile Field Worker User Administration (Native Device App) (Browser) Connected Data Admin Website Browser Services & (Azure Web Notifications (Azure Role) Mobile Services) Triggers Publish Incoming Queue Outgoing Queue Changes Azure Queue Integration Pictures / Signature Temporary Services (Blob Storage) (Azure Worker Role) Database Queries & Changes SOAP APIs AMS DataBase (SQL Azure) App Services Microsoft Azure Platform
    20. 20. PRICING COMPARISONCoupled DeCoupled• 2 Medium Web Roles • 1 Web Site • 2 Instance Mobile Service• 200 GB Transfer • 100 GB Transfer• $368.77/month • 1 Small Worker Role • 1 2Gb SQL Database • 100GB Blob/Queue Storage • 14 Million Transactions • $158.59/month
    21. 21. HOW CAN WE HELP?
    22. 22. ModernizationOUR APPROACH
    23. 23. PORTFOLIO ANALYSISPerspectives:BusinessTechnicalOperationalFinancial
    24. 24. Cranfield Business Benefits
    25. 25. Modernization6 STEPS TO REDUCE IT COMPLEXITY
    26. 26. MODERNIZATION ENGAGEMENTS Strategy & Organizational Program Governance Governance Roadmaps Management Model Platform Application Azure/Cloud Tactical Assessment(s) Assessments Readiness (e.g. SQL)Price based on scope of work
    27. 27. SUBSIDIZED AZURE POC-IN-A-BOX 2 weeks of Azure PaaS POC Mobile Field OnPrem Architect/Development time Worker Integration Currency OnPrem Migration SQL Azure Assessment POC IaaS OnPrem to Cloud SharePoint