The document discusses restructuring IT organizations to function as profit centers in a cloud-driven environment, emphasizing the importance of adopting a service provider mentality and identifying necessary skills for cloud operations. It highlights the transition from traditional IT roles to new emerging positions that drive business value, including the integration of DevOps and vendor management. Additionally, it outlines a strategic framework for cloud application transformation and the need for continuous adaptation and educating employees on cloud technologies.

1. Enterprise Cloud Forum:
“Restructuring Your IT Organization to Become a
Profit Center in a Cloud World”
Presented By:
Rackspace Advisory Services

2. Your Hosts
Matt Monteleone Rich Murr
Sr. IT Strategist Vice President
Enterprise Cloud Solutions Rackspace IT Operations
Rackspace Hosting Rackspace Hosting
Matt.Monteleone@rackspace.com Rich.Murr@rackspace.com
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3. What We Will Cover Today
 Current State of IT Organizations
 Identification of Necessary Skills in a Cloud
World
 Emerging IT Roles
 How IT Drives Value for the Greater Organization
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4. A New Way of Thinking
Virtualization is a TECHNOLOGY …
Cloud Computing is a
BUSINESS MODEL
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5. The S.M.A.R.T. Cloud Approach
ERVICE Provider Mentality
ANDATE for DEV/OPS
LLOCATE Resources
OI Maximization
AKE Control
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6. Rackspace IT: Drive to the Open Cloud
TEACHING IT HOW TO BECOME A SERVICE PROVIDER
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 IT is juggling
services exceeds Legacy and New
supply App
Development
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7. We are Learning to Become a Service
IT
Provider to Our Business
IT Dept. Adopting a Service Partner to the
Provider Mentality Business
 Overwhelmed by  Create a service catalog by  CIO becomes an Advisor
demand partnering w/ a Service Provider to the Business
 Struggling to meet  Empower a self-service  IT is 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
providing value are met
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8. Focus on Core Competencies
DELIVERY
A+
COLA
VS.
GAS
OIL
MAINTENANCE
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9. Focus on Your Core Business
Your Data Center Service Provider
Building,
Operating &
Maintaining
Ongoing Power,
Labor & Cooling
Off Load CAPEX
Investment Risk
With 1000s of deployments …
every matters!
Where Does IT Provide True Business Value?
IT’S ALL IN THE APPS RACKSPACE® HOSTING | W W W.RACKSPACE.COM
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10. Early Identification
“Identify what skills your
organization will need to
foster in a Cloud World…”
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11. Today’s IT Operations
Back-up Sys.
Admins Admins
Storage Asset
Engineers Management
Database
Help Desk
Support
Network
Procurement
Admins App
DR/BC Monitoring
Team
Deployment
NOC
Engineers
Virtualization Team
Security
Physical Data Center Facility Compliance
Admins
Maintenance
1
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12. What Does this Mean for the Structure of the
Rackspace IT Department?
OLD WORLD IT VS. NEW WORLD IT
DEEP BUSINESS SAVVY
TECHNOLOGY SPECIALISTS
SPECIALISTS
LEANER LAYER OF
TECHNOLOGISTS
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13. IT Organization: Pre-Cloud
Leadership
Business Analyst
Developers
Network Security
Server
Storage
DC Facilities
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14. IT Organization: In a Cloud World
Leadership
Business Analyst
Developers
Network Security
Server
Storage Moves to
Cloud
DC Facilities
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15. IT Organization: In a Cloud World
Vendor
Leadership Management
Business Analyst: Bigger Role
DevOps Model: Developers & Operations
Network Security
Server Major Areas of Change
Storage Cloud
SaaS
DC Facilities
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16. IT Organization: In a Cloud World
Build a
DevOps
Leadership Model
Business Analyst • Scripting
• Configuration
Developers Management
• Automation
Network Security
…still relevant
Server in the cloud
Storage
DC Facilities
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17. Tools for Success
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18. IT Organization: In a Cloud World
THE BUSINESS
Leadership
ANALYST:
Leaders of the New
Business Analyst: Bigger Role Cross-Functional Team
DevOps Model: Developers & Operations • Embedded with biz units
Network Security • Translating business
requirements to IT speak
Server • Consultants to the business
Storage Cloud
Ability to articulate true
SaaS
business need
DC Facilities
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19. IT Organization: In a Cloud World
Leadership Vendor Managers
Business Analyst
Developers
Network Security
Server
Storage
DC Facilities
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20. The Role of the Vendor Manager
• Two Main Types of Vendors: • Will need to be able to vet vendors
– SaaS Providers against the needs of the business:
• Application focused expertise required – Performance & Availability
– Cloud Providers – Security
• Infrastructure focused expertise required – Cost
• SLA analysis and negotiation – Features
• Multi-vendor management – Support
Who will evolve into your
vendor managers?
Previous IT Infrastructure Managers
“This experience gives them the
technology context necessary to build
effective vendor management skills.” RACKSPACE® HOSTING | W W W.RACKSPACE.COM
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21. New Roles Emerge in a Cloud World
“We aren’t just repurposing
talent…
Cloud adoption brings new
capabilities to IT.”
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22. BIG DATA Skill
Requirements
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23. The Data Scientist
“The Sexiest Job of the 21st Century”1
Delivering key customer insights from Big Data:
Who are our customers?
Why do they buy from us?
How can we get greater share of wallet?
How can we increase purchase frequency?
Skill set: “A hybrid of Analyst,
 Data Acquisition
Communicator &
 Analysis
Trusted Advisor” 1
 Visualization
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Source: Thomas H. Davenport and D. J. Patil, “Data Scientist: The Sexiest
Job of the 21st Century,” Harvard Business Review, October 2012

24. Competition for the Data Scientist is FIERCE
A Decade of Digital Universe Growth
9000
7910
8000 4.4 M needed
7000
6000 3 Million
5000
544% short by
growth 2015
4000
3000 1.4 Million
Jobs Filled
2000
1227
1000
130
0
2005 2010 2015
EXABYTES
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Source: IDC/EMC Digital Universe Infographic, 2011

25. Matt’s Top Predictions
Most Sought After Hire in IT….
Cloud-Biz-Ologist
• Gets your business
• Understands how to apply cloud to
meet business needs
• Can articulate technical & business
requirements
The
• Can recommend “Best Fit” Solutions
Future
of IT
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26. Successful Evolution
“How to make your
organization aware that IT is
their most valuable
resource…”
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27. IT Becomes Marketers
Building Brand Equity is
Essential for IT
• Organizational Awareness
• Reporting on Value
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28. Putting It All Together
Path to IT Department Success in a Cloud World
YEAR 1 YEAR 2 YEAR 3
EDUCATE IMPLEMENT REFINE Strategy
Get SMART on Cloud Cloud Business Model Cloud is Now Default
Platform
BUILD Your Strategic Plan BUILD New Teams BUILD Additional Metrics
• Cloud goals of the company • Vendor Management • Team efficiency
(business case) • Pilot teams become Pros • Continuous Delivery
• Identify skills needed to support (internal consultants) • Continued skill refinement
goals • Cross-functional teams across • ROI models – IT input
• Organizational alignment to plan business
TEST PROVIDERS SELECT PROVIDERS STRATEGIC PARTNERS
EXPERIMENT LAUNCH REVIEW
• Pilot Program: compile best talent • Create a definitive list of “cloud • Continuous feedback loop
on medium size project projects” (more complex than • Strategy refinement
• Document & communicate key pilot)
learnings • Pre-defined success metrics
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29. Cloud Application
Transformation Framework
Ongoing Customer Cloud Maturity
Step by step approach to adopting cloud as a
Customer business model
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
is an Ongoing Process
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30. 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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31. What We Covered Today
 Current State of IT Organizations
 Identification of Necessary Skills in a Cloud
World
 Emerging IT Roles
 How IT Drives Value for the Greater Organization
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