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EMPOWER
 INNOVATE…
   TRANSFORM…

3 Must-Do Steps for IT to
Maintain Relevancy in a
Cloud World
Presented By: Lisa Larson
VP of Enterprise Cloud Solutions
About Me…




                              lisa.larson@rackspace.com
                              www.rackspace.com




 Lisa Larson
 Vice President
 Enterprise Cloud Solutions
 Rackspace Hosting

                                                  RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                 2
The 3 Must Do Steps For IT

  EMPOWER


  INNOVATE


  TRANSFORM




                             RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                            3
Meet Steve Mills…


                    • Rackspace CIO
                    • He serves 5,000 Technically Savvy
                      Rackers
                    • He is facing Exponential Company
                     Growth
                     – Acquisitions

                     – On-boarding new employees




                                       RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                      4
Steve’s Chief IT Challenges


                 Recruiting and
                                    IT is capital
                 retaining talent
                                     intensive
                 is problematic
 The business                                               Managing
 expects near                                              increasingly
instantaneous                                                complex
   delivery                                              environments is
                                                             difficult


 Demand for IT                                         Juggling Legacy
   services                                             and New App
exceeds supply                                          Development



                                                    RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                   5
Rackers Provide Fanatical Support…
And, EXPECT Fanatical Support


           CONSUMERIZATION of IT
Instant CPU… Instant Storage… Instant Provisioning…
               Instant Gratification!
                                 “I DON’T CARE HOW…
  • BYOD                            I WANT IT NOW!”


  • Mobility

  • DIY Cloud
                                        RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
Rackers Began to Find Their Own Solutions
            We need… SPEED,
               AGILITY &
              FLEXIBILITY




                                     Service Provider
 Business
   Unit                       WE CAN’T HELP YOU
                               80% of our IT spend &
                              resources are devoted to
                               “keeping the lights on”



            Internal IT Department
                                      RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                     7
Like Many IT Leaders…
Steve Knew He had Shadow IT


     43% of IT Decision Makers know they
     have Shadow IT in their organization.

     Business units are leveraging cloud
     computing to help with work projects.


               38% of IT Decision Makers said
               the main reason is to save time


               One in three said it was because internal
               solutions were not available or because they did not
               want to deal with the IT department.
                                                                                  RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM

                                  Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012),
                            conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud computing.
Steve Knew the Dangers of Shadow IT…

    Unsanctioned Use                 Weakened Spending
        of Cloud                          Control
    • Loss of Control/Governance   • Lack of Negotiated Terms
    • Security Breaches            • Diminished Liabilities Control
    • Compliance Penalties         • Misclassification of Spend




    • Lost Revenue                 • Profit Erosion
    • Brand Deterioration          • Spend Ignorance
    • Loss of Business IP          • Vendor Contract Lock-in
                                                 RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
Steve Had a Choice…




        IT Dept.
 Overwhelmed by demand       BUs follow the shortest
                                                               IT
                                                          CMO takes over IT
                               and easiest path            budget
 Struggling to meet
  business needs              BUs leverage Service       IT no longer brings
                               Provider to solve           value to the org
 80% of time dedicated to
                               business needs
  keeping lights on                                       Organizational
                                                           downsizing ensues
   The role of IT is no longer just project/architecture based.
     IT Strategy must be built on adding business value!  RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                         10
Steve Needed to Adopt a New Way of Thinking



 Virtualization is a TECHNOLOGY …



               Cloud Computing is a
               BUSINESS MODEL


                               RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                              11
Steve Needed to Find a Safe Way to
Leverage Shadow IT


  Create New Procedures

  BUILD A SERVICE CATALOG




        Set guardrails for the business.




                                    RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
Now Steve is Fueling the Innovation Engine


                                                   Cloud
                                                   First
                                                  Mindset




                                  RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
Steve is on the Path of Transforming




                                                                 IT
     the Business of IT




     IT Dept.                 Adopting a Service                     Partner to the
                              Provider Mentality                       Business
 Overwhelmed by         Enable a service catalog through    CIO becomes an Advisor to
  demand                  a Service Provider                   the Business
 Struggling to meet     Empower a self-service              IT working on game-
  business needs          organization                         changing, strategic
 80% of time dedicated  Create an army of innovators         initiatives
  to keeping lights on   Free IT resources to focus on       Demands of the Business
                          business value                       are met

                                                                 RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                                14
Shadow IT is Now Steve’s Best Friend

• Empowers a self-service organization
• Spurs Innovation more projects into idea funnel
• Provides strong POC environments to vet CAPEX spend
• Frees IT Resources…



  IT is now focused on where they provide
         business value … in the APPS

                                              RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                             15
The 3 Must Do Steps For IT

  EMPOWER: IT AS A SERVICE


  INNOVATE: CLOUD FIRST MINDSET


  TRANSFORM: IT AS BUSINESS
   ADVISORS



                              RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                             16
IT Transformation Framework



                               Step by step approach to adopting cloud
Customer
Data Center
                                                          Design
                 IT          Application      Cloud        POC         Migration    Solution
              Evolution       Profiling     Readiness
                                                           Pilot       Services      Online
              Workshop       Workshop      Assessment
                                                        Architecture

                                                                        Migrate
                     Strategize & Assess                 Design                          Support & Optimize
                                                                       Implement




                          Governance Planning & Customer Maturity Evolution
                                                                                   RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
Get SMART on Cloud
Recommended Industry Resources:               Recommended Rackspace Resources:
• The Big Switch, Nicholas Carr               • Cloud: Vision to Reality whitepaper
                                              • Cloud: Economics whitepaper
• Cloudonomics: The Business Value of Cloud   • Take the Cloud Readiness Self Assessment
  Computing, Joe Weinman
• Rackspace Cloud Tools Marketplace           • Use cases:
• http://gigaom.com/                            –   Hybrid Hosting: Dominos Pizza and watch the video
                                                –   RackConnect™: VEVO and watch the video
• www.gartner.com
                                                –   Private Cloud: Lighthouse1
• www.forrester.com                             –   Advisory Services: Acquity Group
• www.idc.com

                                                                 Rackspace
                                                                 Knowledge                           JOIN US!
                                                                 Center

                                      “Our goal is to create the most
                                        CLOUD SAVVY
                                        customers in the industry”
                                                                         RACKSPACE® HOSTING   |   W W W.RACKSPACE.COM
                                                                                                                        18
RACKSPACE® HOSTING               |    5000 WALZEM ROAD              |    SAN ANTONIO, TX 78218
                                        US SALES: 1-800-961-2888                 |    US SUPPORT: 1-800-961-4454               |    WWW.RACKSPACE.COM




RACKSPACE® HOSTING   |   © RACKSPACE US, INC.   |   RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN TH E UNITED STATES AND OTHER COUNTRIES.   |   W W W.RACKSPACE.COM
                                                                                                                                                                                                                19

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3 Must Have Steps for IT to Maintain Relevancy in a Cloud World

  • 1. EMPOWER INNOVATE… TRANSFORM… 3 Must-Do Steps for IT to Maintain Relevancy in a Cloud World Presented By: Lisa Larson VP of Enterprise Cloud Solutions
  • 2. About Me… lisa.larson@rackspace.com www.rackspace.com Lisa Larson Vice President Enterprise Cloud Solutions Rackspace Hosting RACKSPACE® HOSTING | W W W.RACKSPACE.COM 2
  • 3. The 3 Must Do Steps For IT  EMPOWER  INNOVATE  TRANSFORM RACKSPACE® HOSTING | W W W.RACKSPACE.COM 3
  • 4. Meet Steve Mills… • Rackspace CIO • He serves 5,000 Technically Savvy Rackers • He is facing Exponential Company Growth – Acquisitions – On-boarding new employees RACKSPACE® HOSTING | W W W.RACKSPACE.COM 4
  • 5. Steve’s Chief IT Challenges Recruiting and IT is capital retaining talent intensive is problematic The business Managing expects near increasingly instantaneous complex delivery environments is difficult Demand for IT Juggling Legacy services and New App exceeds supply Development RACKSPACE® HOSTING | W W W.RACKSPACE.COM 5
  • 6. Rackers Provide Fanatical Support… And, EXPECT Fanatical Support CONSUMERIZATION of IT Instant CPU… Instant Storage… Instant Provisioning… Instant Gratification! “I DON’T CARE HOW… • BYOD I WANT IT NOW!” • Mobility • DIY Cloud RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 7. Rackers Began to Find Their Own Solutions We need… SPEED, AGILITY & FLEXIBILITY Service Provider Business Unit WE CAN’T HELP YOU 80% of our IT spend & resources are devoted to “keeping the lights on” Internal IT Department RACKSPACE® HOSTING | W W W.RACKSPACE.COM 7
  • 8. Like Many IT Leaders… Steve Knew He had Shadow IT 43% of IT Decision Makers know they have Shadow IT in their organization. Business units are leveraging cloud computing to help with work projects. 38% of IT Decision Makers said the main reason is to save time One in three said it was because internal solutions were not available or because they did not want to deal with the IT department. RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012), conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud computing.
  • 9. Steve Knew the Dangers of Shadow IT… Unsanctioned Use Weakened Spending of Cloud Control • Loss of Control/Governance • Lack of Negotiated Terms • Security Breaches • Diminished Liabilities Control • Compliance Penalties • Misclassification of Spend • Lost Revenue • Profit Erosion • Brand Deterioration • Spend Ignorance • Loss of Business IP • Vendor Contract Lock-in RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 10. Steve Had a Choice… IT Dept.  Overwhelmed by demand  BUs follow the shortest IT  CMO takes over IT and easiest path budget  Struggling to meet business needs  BUs leverage Service  IT no longer brings Provider to solve value to the org  80% of time dedicated to business needs keeping lights on  Organizational downsizing ensues The role of IT is no longer just project/architecture based. IT Strategy must be built on adding business value! RACKSPACE® HOSTING | W W W.RACKSPACE.COM 10
  • 11. Steve Needed to Adopt a New Way of Thinking Virtualization is a TECHNOLOGY … Cloud Computing is a BUSINESS MODEL RACKSPACE® HOSTING | W W W.RACKSPACE.COM 11
  • 12. Steve Needed to Find a Safe Way to Leverage Shadow IT Create New Procedures BUILD A SERVICE CATALOG Set guardrails for the business. RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 13. Now Steve is Fueling the Innovation Engine Cloud First Mindset RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 14. Steve is on the Path of Transforming IT the Business of IT IT Dept. Adopting a Service Partner to the Provider Mentality Business  Overwhelmed by  Enable a service catalog through  CIO becomes an Advisor to demand a Service Provider the Business  Struggling to meet  Empower a self-service  IT working on game- business needs organization changing, strategic  80% of time dedicated  Create an army of innovators initiatives to keeping lights on  Free IT resources to focus on  Demands of the Business business value are met RACKSPACE® HOSTING | W W W.RACKSPACE.COM 14
  • 15. Shadow IT is Now Steve’s Best Friend • Empowers a self-service organization • Spurs Innovation more projects into idea funnel • Provides strong POC environments to vet CAPEX spend • Frees IT Resources… IT is now focused on where they provide business value … in the APPS RACKSPACE® HOSTING | W W W.RACKSPACE.COM 15
  • 16. The 3 Must Do Steps For IT  EMPOWER: IT AS A SERVICE  INNOVATE: CLOUD FIRST MINDSET  TRANSFORM: IT AS BUSINESS ADVISORS RACKSPACE® HOSTING | W W W.RACKSPACE.COM 16
  • 17. IT Transformation Framework Step by step approach to adopting cloud Customer Data Center Design IT Application Cloud POC Migration Solution Evolution Profiling Readiness Pilot Services Online Workshop Workshop Assessment Architecture Migrate Strategize & Assess Design Support & Optimize Implement Governance Planning & Customer Maturity Evolution RACKSPACE® HOSTING | W W W.RACKSPACE.COM
  • 18. Get SMART on Cloud Recommended Industry Resources: Recommended Rackspace Resources: • The Big Switch, Nicholas Carr • Cloud: Vision to Reality whitepaper • Cloud: Economics whitepaper • Cloudonomics: The Business Value of Cloud • Take the Cloud Readiness Self Assessment Computing, Joe Weinman • Rackspace Cloud Tools Marketplace • Use cases: • http://gigaom.com/ – Hybrid Hosting: Dominos Pizza and watch the video – RackConnect™: VEVO and watch the video • www.gartner.com – Private Cloud: Lighthouse1 • www.forrester.com – Advisory Services: Acquity Group • www.idc.com Rackspace Knowledge JOIN US! Center “Our goal is to create the most CLOUD SAVVY customers in the industry” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 18
  • 19. RACKSPACE® HOSTING | 5000 WALZEM ROAD | SAN ANTONIO, TX 78218 US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM RACKSPACE® HOSTING | © RACKSPACE US, INC. | RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN TH E UNITED STATES AND OTHER COUNTRIES. | W W W.RACKSPACE.COM 19