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

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
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The 3 Must Do Steps For IT

 EMPOWER

 INNOVATE

 TRANSFORM

3

Meet Steve Mills…

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

– On-boarding new employees

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

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

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
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.

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

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

11

Steve Needed to Find a Safe Way to
Leverage Shadow IT

Create New Procedures

BUILD A SERVICE CATALOG

Set guardrails for the business.


Now Steve is Fueling the Innovation Engine

Cloud
First
Mindset


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

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

15

The 3 Must Do Steps For IT

 EMPOWER: IT AS A SERVICE

 INNOVATE: CLOUD FIRST MINDSET

 TRANSFORM: IT AS BUSINESS
ADVISORS

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

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

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