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Clouds:Random Thoughts

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State of IT: Random thoughts on Clouds

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Clouds:Random Thoughts

  1. 1. Cloud musings Chaganti ‘RK’ Radhakrishna
  2. 2. Topics  State of IT  In an Enterprise setting  Challenges prior to Cloud  Cloud defined  Principles, Risks  Cloud adoption  Drivers, barriers  How to move to Cloud  Assessment, Best practices Cloud:Musings Page #2
  3. 3. State of IT*  Exists primarily to support the business and it’s operations  Is de-centralized, centralized or hybrid  Supports sites where business has a presence  Has budget as a % of revenue. Often benchmarked w/like organizations in the same/different industries  1.xy% in manufacturing sector; x & y interchange depending on bad or good quarter  Asked to do more with less. Show me the value  Constantly asked to justify it’s existence  Includes many functions. VPs responsible for one or more functions  Applications (ERP, Web, SC, HR), Infrastructure (Directories, Application Servers), Domain specific and general workforce productivity, Operations(Data Centers), Architecture, PMO(Program, Budget, Vendor management), eSecurity, Support (HelpDesk), Network, Telephony, Development, SWQA, etc.  Supports hundreds of Mission/Business Critical applications *In a typical F500 Enterprise setting Cloud:Musings Page #3
  4. 4. State of IT  Strategic sourcing of one or more functions/sub-functions  Outsource, in-source, off-shore/on-shore  Uses one or more methodologies, frameworks to understand and improve how it provides services to customers  SDLC, Agile, SixSigma, Lean, ITIL/ITSM/BSM, Balanced Scorecard, Portfolio/Program prioritization, K-T  Launches Big5/10 initiatives every year and undergoes a refresh cycle in 2-3 areas (ERP/Infrastructure/Operations/Network)  Representative of the Standish Group’s chaos report on project execution  Successful: 32%, Challenged:44%, Failed:24%  Mix of functional, projectized, weak matrix environments  Never ending backlog of “High” priority requests from various constituents Cloud:Musings Page #4
  5. 5. State of IT  Has little time to innovate  New paradigm shifts force drastic action: Web 1.0/2.0, Enterprise 2.0, Social Networks  Undergoes re-set/self-transformation once every 5 years  Unless lucky, handicapped w/dysfunctional teams  Doesn’t guarantee an SLA for it’s services, but expects it’s vendors to provide one  Using ITIL/ITSM frameworks establishing a price point for it’s services and how it compares against it’s competitors  Under increasing pressure to get it’s arms around a heterogeneous environment and adherence to compliance and controls  Business requirement of 5 9’s availability and millisecond response time of MC/BC Apps  Haphazard cloud adoption  A SaaS here, a SaaS there, some virtualization/workload migration  Lack of a well thought out policy Cloud:Musings Page #5
  6. 6. Impact Low Med High Time to Market Time Security Fixed costs Servers Complexity Capacity Utilization Dedicated Time to Market √ Security Server Fixed costs Complexity Capacity Utilization Consolidation Cloud:Musings Time to Market √ Security IT Data Center evolution Fixed costs Complexity Capacity Utilization Time to Market Security Fixed costs Cloud Complexity Virtualization In-House Capacity Utilization or Way to go Debate on which Time to Market Security Cloud Public Fixed costs Var costs Complexity Capacity Utilization Page #6
  7. 7. Pre-cursor to Cloud: Challenges  Experimentation w/Web and need to have a Web front- end for business processes, saw the adoption of numerous, heterogeneous “stacks” and point solutions  Boutique shops specializing in running business processes on web (“Service providers”) that circumvented IT departments started to grow  Hosting - various flavors (ASP, MSP, xSP)  Enabled capacity growth outside of the enterprise environment  Hosting, coupled with outsourcing of services, enabled the development, deployment and orchestration of business processes in a totally new way  New business models emerged Cloud:Musings Page #7
  8. 8. Pre-cursor to Cloud: Challenges  Growth of heterogeneous environments required  Army of IT staff to sustain it  Refresh cycle for the “stack”  22% annual maintenance fees  80% of the IT budgets for “lights-on”  Focus on compliance and security  Managing complexity  Multi-year effort to execute any initiative  Yet,  Users were unhappy with the service  Led to the growth of siloed environments  Weren’t able to spend time on “Innovation”  Structured and un-structured data began to grow  Compliance and Control challenges Cloud:Musings Page #8
  9. 9. Pre-cursor to Cloud: Silver lining  Success of ASP model attributed to the following, increased the comfort level of enterprises for an on- demand model that enabled capacity to grow  "per-use" basis or on a monthly/annual fee  Key software systems are kept up to date, available, and managed for performance by experts  Reduction of internal IT costs to a predictable monthly fee  Redeploying IT staff and tools to focus on strategic technology projects that impact the enterprise's bottom line  Increasing availability and access of applications over a network connection  Mail, calendar, collaboration software  Users were increasingly comfortable accessing Software over the web, as a “service” and thus “SaaS” was born Cloud:Musings Page #9
  10. 10. Pre-cursor to Cloud: Tangential developments  Affordable bandwidth  Network overcapacity during .com boom  E-commerce  Web 2.0, newer standards  Participative, Collaborative, 2-way web  Ajax, HTTP, HTML enhancements  Browser UI almost similar to desktop UI  Virtual collaboration tools  Willingness to “open-up” yourself online and engage in online discussions  Social web, Social Media, Social networking  Virtualization  Ubiquitous access of information from anywhere, anyplace, any device  Services over the web, Open source movement Cloud:Musings Page #10
  11. 11. Cloud defined  Moving from delivering capabilities over the network to delivering capabilities and services over the Internet  the dynamic provisioning of IT capabilities (hardware, software, or services) from third parties over a network  Cloud computing is computing model, not a technology  The cloud model differs from traditional outsourcers in that customers don't hand over their own IT resources to be managed Cloud:Musings Page #11
  12. 12. Principles and Risks  Principles  Self-service  Commodity pricing  Scalability  Multi-tenancy  Risks  Data mobility  Privacy  Service levels  Interoperability Cloud:Musings Page #12
  13. 13. Cloud adoption: Business drivers  Improve Business agility; increase TTM  Capacity w/out capital  Move from CapEx to OpEx  Relief on annual maintenance expenses  CPU cycle optimization  No idle cycles, maximum possible utilization  Reduction in infrastructure complexity  IT Process automation  We have automated everyone, except ourselves!  Freeing capacity to advance innovation  Standardization of systems  Deliver innovation quickly  Access to latest functionality (software/hardware)  Increase in productivity  Users with the ability to self-provision resources have improved productivity  Environment friendly  Reduce carbon foot-print Cloud:Musings Page #13
  14. 14. Barriers moving to Public Cloud  Business generates IP  Security of data and lost control of systems  Most of the applications might NOT be architected for a private cloud e.g. some vendors do not support running their SW on virtual machines  Availability risk, data security risk, regulatory compliance and corporate governance  You have little control over how much audit information is collected  while you may maintain ownership of your own data, you do not likely own all of the access log data  Moving data and computing cycles away from the user means increasing the bandwidth between users and data  May not conform to your standards (security/data format)  Lack of metrics and few controls inherent in cloud- computing relationships  Takes a lot of effort to move apps into cloud and it may not work at all Cloud:Musings Page #14
  15. 15. Moving to Cloud: Pre-requisites  Have a baseline/measurement system before you move anything  What's your current server utilization level? Is it in single otr double digits?  Figure out what workloads you have. Does it make sense for some to move into Public and some kept in Private?  Do you have or generate a lot of IP? Then public cloud might not be an option  Make decisions not from a security perspective, but from a risk perspective  Understand the management complexity, data security, control in a mixed mode environment  Do applications need modifications or a complete re- architecting for use in the cloud  Can an application running in a fixed-size environment be able to use the cloud?  Do you have ITIL/ITSM deployed? If not consider this as a mechanism to provision self-services, charge-back  Develop a strategy across all cloud layers. Reconcile/rationalization past and current efforts Cloud:Musings Page #15
  16. 16. Which Cloud is “Right” for Your Applications? Cloud:Musings Page #16
  17. 17. Moving to Cloud: 10 step process  Determine the appropriate cloud model to move to  Understand your current state, drivers, barriers and know the pre-requisites  Private, Public or Hybrid?  Figure out the interplay between SaaS / PaaS (if it exists) / IaaS  Assess the potential for moving applications to the cloud  Commodity, Customized, Complex  Mission / Business / Department critical  Test / Development environment  Understand workloads  Characteristics and patterns of applications determine appropriateness for cloud computing  Select applications  Determining application candidates that make sense for your business  Assess vendors, partners and align w/them  Do a high level K-T Cloud:Musings Page #17
  18. 18. Moving to Cloud: 10 step process  Define Cloud strategy. Enlist stakeholders, BU as advocates. Over communicate  Launch a portfolio. Get executive sponsorship. Figure out the costs, ROI and funding model  Review your policies, architecture, strategies, processes, methodologies, support structure and re-draw/re-adjust  Execute and show measurable results Cloud:Musings Page #18
  19. 19. Summary  Cloud Computing is an attractive model for IT  Understand it’s evolutionary and revolutionary aspects  It promises many benefits, yet as with any new initiative, understand well how this can be leveraged  Depending on the path chosen, ROI can be achieved in as little 1-year in some and many years in others  Over communicate with stakeholders on potential benefits, risks, advantages / disadvantages of this model  Let them know this is not a cure for all ills  Enlist a strong leader who practices the 5-principles of leadership and overcomes the 5-dysfunctions of a team to run the Cloud portfolio  Make the CIO and IT staff hero's in the eyes of all users by timely execution of this vision Cloud:Musings Page #19

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