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  1. 1. Whitepaper:More than ROI
  2. 2. Executive Summary:More than ROIToday, cloud adoption is rapidly expanding its footprint and is no longer simply a theoretical oracademic conversation that enterprise organizations are debating. The reality is that companiesacross a wide variety of sectors are actively engaged in cloud adoption. This includes everythingfrom strategy and planning, to pilot solutions, and production rollout. And cloud services aren’tgoing away any time soon as firms such as Forrester Research, Inc. forecasts the overall globalcloud computing market will grow to $241 billion by 2020.Business cases for cloud services often focus on financial return on investment (ROI). But while ROIis a compelling argument, the full value of cloud computing extends beyond cost savings. The truevalue is realized through business transformation that is fueled by continuous innovation.This white paper, intended for business leaders evaluating enterprise cloud services, uses real-worldcustomer experiences to examine the business impact of the cloud:• IT Innovation: Relieving IT Teams from the burden of managing applications, infrastructure, and desktops enables creativity and innovation.• Application Delivery: IT teams can more quickly implement their ideas because they don’t need to find the time, budget, and space to provision servers, storage, and networking.• Increased employee efficiency and satisfaction: Employees can capitalize on the IT team’s innovations to do their jobs better, creating a sustainable business advantage in today’s fast-paced marketplace.
  4. 4. Cloud ROI: NOT JUST ABOUT THE NUMBERS Enter a decision making, technology impact on innovation ultimately plays an discussion with virtually any business even bigger role and is beyond the scope leader or IT professional and the of traditional ROI calculations conversation quickly turns to the subject of ROI and lower total cost of ownership By shifting the focus of IT from time- (TCO). These have been mainstay consuming operational chores criteria for decades. However, the (managing infrastructure and supporting adoption of cloud services is changing applications) cloud enabled delivery the way organizations need to think models and services are freeing up time about ROI. The benefits extend far for IT innovation and strategic thinking. beyond the tangible costs of hardware and software. The fruits of that innovation are new application delivery models and tools Cloud computing is shifting the burden of that empower employees to be more capital expense to a “pay-as-you-go” efficient and effective, fueling business model for IT infrastructure. As many success (Figure 1). And these cloud recognize, the outcome of this model is a benefits are not just a one-time thing. conversion of upfront capital to a The benefits gain momentum and predictable operational expense, lower continue to expand throughout the IT staff costs associated with organization as additional applications, provisioning and managing services, tools and technologies are infrastructure, and a reduction in data moved to the cloud. With each new center space, power, and cooling costs. innovation that IT teams introduce, the business continues to reap the benefits. But while lower TCO is a powerful driver in the migration to cloud computing, early adopters are reporting that the cloud’sFIGURE 1:‘…CLOUD ENABLEDDELIVERY MODELSAND SERVICES AREFREEING UP TIME FORIT INNOVATION ANDSTRATEGIC THINKING.’ 4
  5. 5. IT Creativity and Innovation: IT TAKES A SEAT AT THE BUSINESS STRATEGY TABLE Traditionally IT led the charge to design cloud service to quickly provision and build systems to last a lifetime. Their infrastructure on-demand for test and focus was on technology and enterprise development. The time to fulfill requests organizations relied heavily on them to has decreased from weeks to minutes. manage the technological advances. Moving the applications to production Today’s reality is that IT no longer has takes a few clicks. What’s more, costs“WE DON’T MAKE IT the stronghold in technology knowledge. for test and production servers haveDECISIONS,” In fact many employees have the same gone down by more than 40%. or better devices, applications, andsays Gareth Evans, As with traditional managed or network access at home as they do inCIO of iSentry. their office. The focus of IT has shifted outsourced services, it’s easy for IT professionals to, at first, be worried that from specific technologies to managing“WE MAKE BUSINESS cloud computing is going to mean information and the way in which users’ access and work with data. The new IT companies can work with smaller ITDECISIONS THAT ARE staffs. In fact, cloud may be the IT organization is now aligned withSUPPORTED BY IT.” departments best friend. If done correctly business strategy. They are focused on making the organization agile, flexible and used strategically within an organization, the IT department can and capable of change at a moment’s move from being an internal cost center notice -- reshaping itself to be more creative and innovative. focused on just keeping things running, to a strategic, business and innovation As IT looks for new ways to provide driver. better service to users without increasing IT budgets, they are looking to cloud A case in point, iSentry provides software and services that facilitate based solutions. The goal is to simplify secure document transfers, document key stages of service and solution delivery, including: test and tracking, and e-signatures. The company offers a Digital Content Exchange (DCX) development, provisioning, platform that allows organizations to management, and security and compliance governance. seamlessly deliver and receive confidential information over the Internet. The benefits of managed cloud services The functionality provided by DCX is typically appear first in IT organizations. applicable to many industries. However, With traditional infrastructure, IT teams each industry requires a slightly different can quickly end up spending the majority version. With NaviSite’s application of their time reacting to requests for virtualization and cloud enablement, servers and storage, and managing iSentry is able to reduce the business application infrastructure and desktops. cycle of idea to proof-of-concept to production in days or weeks versus Cloud services liberate IT teams from months or years. IT’s decision to move constant firefighting, making time for to the cloud has enabled iSentry to stay innovation. For example, the IT team at a a step ahead of their competitors and rapidly growing North American gives them a real business advantage. insurance company uses a managed 5
  6. 6. Application Enablement:LOWER THE BARRIERS TO CONTINUOUSIMPROVEMENTCloud computing provides enterprises Today, organizations are increasinglyaccess to three main application delivery reliant on delivering applications to end-advantages. The first is related to users for access anywhere, any time,increased efficiency of internal and on any device. Users aredevelopment cycles. The second is the demanding applications be developedinherent resiliency, high availability and quickly and flexibly putting IT in aperformance of cloud based applications. position of either providing theThe third, and perhaps largest benefit, is corporation with agile applicationthe ability of IT to aggregate cloud based development and delivery mechanisms,applications into a new synthetically or being viewed as a roadblock toformed application catalog. improving the productivity of the business.As IT professionals focus on strategicbusiness initiatives they begin to uncover These requirements are drivingnew and creative ways to service both additional needs for performance,the organization and the end-user. With stability, and scalability. All levels of thecloud based development they now have enterprise expect applications to bea new and better way to manage life available and to perform. Cloudcycle of applications within the computing provides an important bridgeenterprise. With the ability to create and between the development cycle anduse application templates and a virtual deployment. With inherent resiliencyapplication appliance, IT can now provided by high availability (HA) anddramatically improve its ability to react to performance managed by automatedthe needs of the business. Knowing they resource load leveling and scheduling,can provision just the needed amount of cloud computing provides the operationalcompute, storage, and networking capacity to match the developmentresources in minutes and turn it off just agility.as easily, developers can afford to bemore creative than they could if every Finally, IT has an abundance ofexperiment required cost-justifying applications available “in the cloud”permanent infrastructure. offered in a software-as-a-service (SaaS) model. The success of Salesforce.comApplication delivery and integration is is but one of many examples. Ratheronce again gaining popularity with IT than building from scratch or customizingdepartments due to the highly visible an off-the-shelf package, IT now hasimpact of the benefits IT derives from new options to integrate into thecloud services to deliver applications. corporate application suite. With this menagerie of applications IT now faces new integration challenges as they are becoming increasingly modular, distributed, volatile and interdependent.6
  7. 7. CASE IN POINT: DAI is an organizationcommitted to helping developing nationsbecome more prosperous, more just,cleaner, safer, healthier, more stable,more efficient, and better governed.DAI’s IT resources are directly involvedin executing projects in developingnations around such things asdemocratic governance and public sectormanagement, and energy and climatechange, among others. But these ITresources were being bogged down withthe management of internal applicationenvironments. DAI, therefore, looked toNaviSite’s cloud-based managedapplication services for its Oracle® E-Business suite. Offloading managementof the Oracle environment has enabledDAI to devote more IT resources to enduser facing projects instead of internalapplications and systems. “THE NAVISITE [CLOUD SERVICE] ALLOWS US TO FOCUS OUR INTERNAL RESOURCES ON ADDING VALUE TO THE BUSINESS RATHER THAN SUPPORTING THE APPLICATIONS.” Larry Campbell, Vice President of Information Management and Technology, DAI7
  8. 8. Productivity Gains: INCREASE EMPLOYEE EFFICIENCY AND EFFECTIVENESS The benefits of cloud computing flow of seasonal fluctuations in demand. from IT teams to end users, providing a variety of individual employee as well as GREATER MOBILITY WITH VIRTUAL corporate benefits. Employees benefit DESKTOPSGARTNER from the new agile applications and feature upgrades that IT teams can Gartner predicts that by 2014, 90 percentPREDICTS THAT BY of organizations will support corporate deliver with cloud based services. For2014, 90 PERCENT OF example, an IT team that saves time by applications on personal devices. With using a managed cloud service might virtual desktop cloud services,ORGANIZATIONS WILL invest the reclaimed time to implement employees’ applications and data areSUPPORT new applications that a business unit did hosted not on their device’s hard drive,CORPORATE not have available before or support a but on virtualized servers or simply in the marketing campaign that was otherwise cloud. Productivity increases becauseAPPLICATIONS ON mobile employees can work anywhere, deprived of IT services. By providingPERSONAL DEVICES. secure, reliable and easy-to-use on any device, with the same experience applications delivered via the cloud, they would have in the office. And enterprises can speed up a variety of corporate IT can be comfortable that business processes and improve overall corporate data and information is not as corporate communication and easily lost or stolen when very little is collaboration. actually residing on a physical device outside the four walls of a corporation. A division of a large healthcare provider organization began using infrastructure- When employees use personal tablets as-a-service (IaaS) to avoid long waits not designed for the enterprise for infrastructure that were preventing environment, sensitive company the division from meeting performance information is not exposed if the device targets. Now the business unit can is lost because data never physically provision infrastructure on its own, in resides on the device, but in a secure minutes. Similarly, ConnectEDU used data center, such as those operated by NaviCloud to accelerate introduction of a NaviSite. Virtual desktops also support new web portal for students seeking business continuity. Employees who personalized college and career cannot commute to the physical office guidance. The cloud service also because of weather, disaster, or lowered infrastructure costs by more pandemic can work from home, using than 30 percent because ConnectEDU any device at hand, such as a home PC pays only for the resources it actually or tablet. consumes, an important benefit because 8
  9. 9. The ROI from desktop-as-a-service isalso significant.Benefits include IT time savings from nothaving to manage and troubleshootoperating systems and applications onhundreds or thousands of devices; lowerlicensing costs; lower capital costs forthin or zero clients; and a roughly 10-year instead of 3-year life expectancy forthin clients compared to workstations.SaaS and desktop-as-a-service (DaaS)offerings are leading IT departments andbusiness executives to considercompletely new approaches and policiesaround the endpoint devices workers useto conduct business, in many casesforever changing the manner in whichemployees work. THE CLOUD SERVICE ALSO LOWERED INFRASTRUCTURE COSTS BY MORE THAN 30 PERCENT BECAUSE CONNECTEDU PAYS ONLY FOR THE RESOURCES IT ACTUALLY CONSUMES….9
  10. 10. Continuous Business Improvement At the end of the day, the ‘cloud’ is going to be to your business what you make of it. While it certainly can be used as a point solution, with the strategic and broader view encouraged in this paper, cloud can be the gift that keeps giving. By viewing cloud as a new platform for your business it will be easier and less expensive to give employees the tools they need to excel at their jobs. Managed cloud services are an enabler for business transformation and not just another technology. Conversely, not embracing the cloud can make your business sluggish in comparison to your competitors. In these highly competitive times speed, efficiency, and time to market are critical for enterprise organizations and in many instances may be a key differentiator. Having tools that help accelerate the business instead of slowing it down are crucial to business success. The analogy is like broadband to dial-up, like a racecar to a bicycle. As organizations adopt more cloud services—IaaS, SaaS, DaaS, managed application services, among others—the benefits multiply. Add to all of this that individuals, whether technical or not, are being exposed to cloud and cloud-like solutions in their every day lives and as a result the ramp up time for adopting and understanding corporate cloud-based tools is much less than seen with traditional corporate technologies.10
  11. 11. Beginning the Journey to the Cloud Very rarely are technology decisions easy and straightforward. Despite all the hype and promise of cloud, it too is not a decision to be made lightly. The journey to the cloud actually begins with some internal business reviews to help drive the following decisions: 1.SELECT THE RIGHT FLAVOR OF 2. IDENTIFY THE BEST CLOUDMOVING TO CLOUD FOR YOUR BUSINESS. SOLUTION TO START WITH FOR Reservations about cloud generally YOUR BUSINESSTHE CLOUD CAN Many organizations start their refer to public cloud services. In partBE A COMPLEX AND because it’s the cloud architecture that journey to the cloud with SaaS, including Oracle eBusinessDAUNTING TASK. has the best price point and is typically applications and Microsoft the most talked about in the media allYOU WANT TO FIND messaging applications, or with other cloud options have been painted IaaS. Others begin with virtualA CLOUD PROVIDER with the same brush around security desktop infrastructures (VDIs), and reliability concerns. But the reality relieving IT teams from having toTHAT OFFERS A HIGH is that today, according to a recent IT manage operating systems andTOUCH ENGAGEMENT cloud survey sponsored by Intel, applications on individual desktopsPROCESS FROM private (52%) and hybrid (31%) cloud and to staff a full helpdesk while deployments models are actually much allowing employees the ability toBEGINNING TO more widely preferred by enterprises. choose their own device. Whatever Public cloud services generally are the actual first cloud solutionEND TO SMOOTH used for non-business-critical adopted is for an enterprise, the keyTHE TRANSITION. applications that do not require is to identify the best strategy for your particular business. Perhaps controlled latency or special security the ideal scenario is to start with precautions. Enterprise cloud services, something that is a green field such as those offered by NaviSite’s addition to your infrastructure like NaviCloud platform, provide the adding cloud storage or deploying necessary safeguards for mission- DaaS for contract workers. For other critical applications and businesses businesses that are struggling with with concerns around compliance and traditional applications, moving a security. Cloud service providers offer non-mission critical application to a a variety of pricing models, such as the cloud environment may provide the number of virtual machines. Many fastest benefit to IT and employees. organizations prefer pricing based on Each business will be different so it actual resources consumed (NaviSite’s is important to do a thorough review model). of your environment and identify the areas that make the most sense as a starting place for cloud without forgetting about future growth and opportunity. 11
  12. 12. 3.SELECT A MANAGED CLOUD This is especially important for SERVICE PROVIDER WITH A transaction-processing applications: STRATEGIC CLOUD VISION. How do you ensure security of my Choice is certainly not a problem when it comes to cloud computing options data, information, and technology? available today. But despite the What if the data center fails? perception by many of all cloud being equal, the reality is cloud strategies Will my applications be disrupted whenIT IS IMPORTANT TO and solutions can vary. Any enterprise you upgrade servers or switches?UNDERSTAND THE interested in adopting cloud services These are just a few of the tacticalSERVICE PROVIDERS needs to take their time and look at the topics that should be part of any options available based on theirAPPROACH AND business and technical requirements discussion on cloud. Additionally, it is important to understand the servicePHILOSOPHY ON HOW and the overall needs of the business. providers approach and philosophy on Some questions to consider whenCLOUD WILL EVOLVE how cloud will evolve and how easy it evaluating service providers include:AND HOW EASY IT will be for your business to add new What is your cloud services roadmap? cloud services as required. Cloud is,WILL BE FOR YOUR after all, about flexibility and the abilityBUSINESS TO ADD Do you offer multiple flavors of cloud to scale with your business. that can all work together?NEW CLOUD Do you offer SLAs for latency?SERVICES ASREQUIRED. Do you offer SLAs for availability? 12
  13. 13. Conclusion The cloud market is experiencing enterprise to determine when and how exponential growth as companies in they want to leverage all that cloud has every sector move to hardware and to offer and to find the best cloud partner software solutions that are hosted and to help achieve and accelerate the real delivered over the Internet. Forrester business benefits of cloud. Research, Inc. expects the market for global cloud computing to reach $241 ABOUT NAVISITE billion in 2020, compared to $40.7 in NaviSite, Inc., a Time Warner Cable 2010. IDC projects that public cloud services will see growth rates of 30% per Company, is a leading worldwide provider of enterprise-class, cloud- year, around five times global IT enabled hosting, managed applications spending in 2011. All of this growth and expectation demonstrates that cloud and services. NaviSite provides a full suite of reliable and scalable managed services are not just a flash in the pan services, including Application Services, but are viewed and expected to continue to be a foundational element to corporate industry-leading Enterprise Hosting, and Managed Cloud Services for IT from this day forward. organizations looking to outsource IT Cost, price, and ROI are always going to infrastructures and lower their capital be part of the decision process for and operational costs. Enterprise selecting any new technology or service customers depend on NaviSite for – cloud or otherwise – no matter how customized solutions, delivered through popular the solution may be. The key to a global footprint of state-of-the-art data achieving the most value from cloud centers. For more information about investments, however, requires not NaviSite’s services, please visit looking at the role it will play in your www.navisite.com. organization in a black and white CISCO CLOUD manner. The true ROI from cloud services must include the impact it will PROVIDER DESIGNATION have throughout the organization and NaviSite has earned the Cisco Cloud how it will impact the ability to operate Provider Certification, which recognizes the business, service customers, its expertise in deploying and managing innovate, and even adopt other Cisco Powered Cloud services. TheFOR MORE technologies in the future. NaviCloud service has received theINFORMATION Ultimately, IT and the technologies IT Cisco Powered designation, indicating it deploys are now, more than ever, direct is deployed using a Cisco validated contributors to business success. This, in infrastructure, including Cisco UnifiedTO LEARN ABOUT turn, leads to the need and resources for Computing System and Cisco NexusCLOUD SERVICES continued investments in the latest Switches. technologies and services that can beFROM NAVISITE, delivered more efficiently from the cloud.VISIT: www.navisite.com It’s a vicious cycle that will provide a return on investment for a business well beyond what any ROI calculator may say. It is now up to each individual 13