Optimizing Cloud and Multi-Cloud Once You’re There: Solutions to the Toughest Challenges

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Dennis Nils Drogseth
Vice President of Research
Enterprise Management Associates
Optimizing Cloud and
Multi-Cloud Once
You’re There
Will Degener
Director Product Management,
Scalable Software, Ltd

INDUSTRY ANALYSIS & CONSULTING2 © 2019 Enterprise Management Associates
Watch the On-Demand Webinar
• Optimizing Cloud and Multi-Cloud Once You’re
There: Solutions to the Toughest Challenges
On-Demand webinar is available here:
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Dennis Nils Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998 and brings several years of
experience in various aspects of marketing and business planning for service
management solutions. He supports EMA through leadership in IT service
management (ITSM), CMDB systems, and megatrends like advanced operations
analytics, cross-domain automation systems, IT-to-business alignment, and service-
centric financial optimization. Dennis also works over several practice areas to
promote dialogue across critical areas of technology and market interdependencies.
Will Degener, Director Product Management, Scalable
Software, Ltd
Will joined Scalable Software in January 2014 as a Senior Solutions Consultant and it
quickly became apparent that his background and experience were very suited to
assisting with product direction, alongside his normal activities. 2018 brought an
opportunity to spend more time in the product management role. Will brings decades of
experience across various aspects of enterprise software solution delivery, specifically
in the ITSM and ITAM spaces. His roles have included consultancy, product
management, and even a little development, too. Often acting as the bridge between
the business needs and the software developers, his skills lay in understanding needs
and translating them into a provisioned solution.
Featured Speakers

Dennis Nils Drogseth
Vice President of Research
Enterprise Management Associates
Optimizing Cloud and
Multi-Cloud Once
You’re There

Agenda
• Demographics
• What are the predominant challenges in optimizing
cloud and multi-cloud?
• How do you keep track of cloud sprawl and maximize
value?
• Effective discovery
• Effective dependency mapping
• Why usage insights are critical
• What organizational priorities will bring best results?
• What metrics and benefits should you look for in
optimizing cloud?
5 © 2019 Enterprise Management Associates

Demographics

Market-Based Intelligence
• “Optimizing DevOps Initiatives: The View from Both Sides” June 2019
• “Automation, AI, and Analytics: Reinventing ITSM” April 2019
• “Unifying IT Decision-Making for Digital War Rooms” April 2018
• “Next-Generation IT Service Management: Changing the Future of IT”
June 2017
• “Optimizing IT for Financial Performance 2016”
• “Integrating SecOps with Operations, Development, and ITSM in the Age
of Cloud and Agile” 2017
• CMDB Systems: Making Change Work in the Age of Cloud and Agile
Drogseth, Twing, and Sturm, Elsevier: 2016.
• “User, Customer, and Digital Experience: Where Service and Business
Performance Come Together” February 2017
• “Casualties of Cloud Wars: Customers are Paying the Price” webinar with
EMA and iLand, 2014
• EMA consulting

What are the predominant
challenges in optimizing
cloud and multi-cloud?

The Move to Public Cloud Isn’t One-Way
• The move isn’t one-way
• 57% are staying with their current cloud
provider and/or adding public cloud providers
• 25% are switching
• 17% are eliminating their current provider
without switching
• Reasons for leaving
• Security
• High cost
• Compliance
• Complexity
• Difficulty moving applications
• Lack of support

INDUSTRY ANALYSIS & CONSULTING10 © 2019 Enterprise Management Associates, Inc.
Which of the following unexpected challenges have you experienced with your
organization's public cloud?
38%
38%
36%
35%
33%
33%
24%
11%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Pricing
Performance
Support
Downtime
Management of my cloud services
Scalability
Onboarding
None
Sample Size = 357, Valid Cases = 357
Unexpected Challenges From Public Cloud:
A Different Slant

Asset/Audit Challenges in Multi-Cloud can be
Especially Strong
How has public cloud impacted your asset/audit processes and capabilities?
20%
41%
25%
8%
6%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Radically impacted - public cloud dramatically
changed our asset/audit requirements
Significantly impacted
Impacted
Somewhat impacted
Not at all impacted
© 2019 Enterprise Management Associates11

…and Being Radically Impacted Strongly
Aligns with Success edit Master title
style
12 © 2019 Enterprise Management Associates, Inc.
How has public cloud impacted your asset/audit processes and capabilities? By: How successful do you
feel you've been to date in optimizing IT for financial performance?
51%
34%
7%
4%
4%
9%
48%
32%
8%
3%
0%
12%
33%
25%
29%
0% 10% 20% 30% 40% 50% 60%
Radically impacted - public cloud dramatically changed our
asset/audit requirements
Significantly impacted
Impacted
Somewhat impacted
Not at all impacted
Extremely successful Very successful/ successful Somewhat successful/generally unsuccessful

Accountability Challenges Continue
• Those who are responsible for expenditure have huge challenges in
identifying where costs are being used
Inventory bedrock has changed
• Need for multiple tools is growing
• Analysis of multi/hybrid/disparate environments
• Physical
• Virtual
• On-premise/in data center/in cloud – AWS/Azure
Beginning to make the intangible tangible
• Quantifying use of web-based/zero footprint IT
Customer Experience with Asset Vision®
Providing a Diverse Range of Intelligence

Other Challenges
• Consistent data across hybrid environments
• Consistent and current inventory and discovery
• Application-to-infrastructure insights current when
things change
• VM sprawl. Many VMs, hosts, devices = too much
data
• Siloed versus cross-domain tools and insights
• Organizational and process
changes

Other Challenges
• The need for speed/automation
• Understanding consumer behavior in the brave,
new cloud world
• Shadow IT disruptions
• 70% find it “somewhat” or “significantly” disruptive

More Than Two-Thirds of IT Organizations are
Experiencing Shadow IT
16
Is your organization moving to support cloud via Shadow IT?
38%
32%
29%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Yes, somewhat
Yes, significantly
No
Sample Size = 151
© 2019 Enterprise Management Associates

Perspectives on Central IT versus LOB IT
Further Color the Issue
• Central IT was more likely to…
• Be overseen by the IT executive suite
• 2x more likely to be slated for growth
• More likely to pursue analytics and big data
• More likely to have a CMDB/CMS already in place
• More likely to have integrated cloud-related services in its
catalogs/portals
• More likely to be engaged with agile/DevOps and create a fast
track for certain applications
• More likely to be involved in enterprise workflows

How do you keep track of public,
private, and multi-cloud, minimize
cloud sprawl, and optimize value?
Discovery | Dependency Mapping | Usage

Discovery and Dependency Mapping are Key
• Effective Discovery:
• Unified insights across the entire application
infrastructure for software and hardware
• Across cloud and non-cloud environments
• Dynamic currency
• Compliance/risk awareness
• Effective Dependency Mapping
• When you make a change to your application
services, what happens?
• Ongoing insight
• No server left behind (ever!)

INDUSTRY ANALYSIS & CONSULTING20 © 2019 Enterprise Management Associates, Inc.
Most Spend Nearly 30 Hours Preparing for Asset
Inventory Data for a Major SW License Audit title style
On average, how much time does your organization spend collecting asset inventory
data for a major SW license or compliance audit,
including public/private cloud assets?
12%
18%
24%
23%
13%
4%
3%
4%
0% 5% 10% 15% 20% 25% 30%
Less than 10 hours
Between 11-20 hours
Between 21-30 hours
Between 31-40 hours
Between 41-50 hours
Between 51-75 hours
Between 76-100 hours
More than 100 hours

Keeping Dynamically Current in Inventory and
Discovery Remains a Serious Challenge style
21 © 2019 Enterprise Management Associates, Inc.
What is the most frequent interval with which inventory or discovery is updated?
21%
24%
21%
17%
11%
2%
3%
1%
0%
0% 5% 10% 15% 20% 25% 30%
Real time
Multiple times per day
Daily
Multiple times per week, but not daily
Weekly
Multiple times per month, but not weekly
Monthly
Less than monthly
Other

How Dependency Mapping can
Empower Cloud Optimization
• Understanding service impact—if you’re making a change,
what happens?
• Continual insight—understanding what’s true across your
public, private, and legacy environments on an ongoing
basis
• Compliance and risk assessment – Security is one of the top
concerns for cloud adoption
• Software license management – Both private and public cloud
can make software license management a challenge

Customer Experiences with Asset Vision®
Flashlight in the Cloud
Provides near-real time source of truth
• Superior to a manually managed spreadsheet depicting what
servers “should” be doing
• Better than just blindly paying the bill
Intelligently analyze compute assets
• Assess communications across network or vendors
• Identify cross-business unit communications
• Calculate the correct fit for over/underutilized assets
• Retire redundant compute resource
Analysis over time provides greater insight
• Measuring trends

Top Technology Challenges for Cloud:
Why Usage is Key!
1. Security/compliance issues for audits
2. Understanding software and application usage across lines of
business
3. Understanding performance issues with cloud services
4. Optimizing mixed SaaS and on-premise application usage
5. Software license audits
6. Optimizing public cloud for cost/value
7. Using lifecycle asset and change management (private and public
cloud)
8. Gaining insights into spending and usage across public and
private cloud environments

Understanding Usage
• Usage means…
• Knowing how much cloud-resident
(SaaS) applications are being used
(across all devices) and by whom
• Knowing how much data center-
delivered applications are being used
(and by whom) across all devices
• Knowing how much applications are
being used (and by whom) resident on
end-user computers
• Knowing the impact of usage for
portfolio planning
INDUSTRY ANALYSIS & CONSULTING© 2019 Enterprise Management Associates25

Understanding Usage
• Usage means…
• Knowing the impact of usage on SW
license requirements
• Knowing the impact of usage on HW
lifecycle management
• Knowing the impact of usage for
IT/business effectiveness
INDUSTRY ANALYSIS & CONSULTING© 2019 Enterprise Management Associates26

A Single Source of Truth
Inventory across
multiple technologies
in one place
Utilization Usage
Physical, virtual, multi-
cloud infrastructure
Installed software, SaaS
Server communication
“cobweb” maintains truth
Resource consumption
identifies savings
Forensic usage of
applications installed or
SaaS
Continual intelligence for
right sizing/right
licensing

What organizational
priorities will bring best
results?

Who Cares About Managing Costs and Hence
Needs Usage Data: Top Seven IT Affiliations
1. IT executive suite
2. IT operations planning and design
3. IT financial management
4. ITAM
5. Project and program management
6. Operations—network
7. IT architecture

Is There a Single Organization Leading IT
Financial Optimization?
•68% claimed a single IT financial planning organization
across all areas.
• Which correlated strongly with success
•23% said that domains (network, systems, applications,
etc.) were managed separately.
•8% claimed that some domains were managed
together, but not all were.

The IT Executive Suite is Most Likely to Lead in
Financial Optimization and Usage Planning
17%
14%
13%
12%
7%
7%
5%
5%
5%
4%
3%
2%
2%
2%
1%
1%
0%
IT executive suite
IT operations
IT service management (ITSM)
IT asset management
Financial planning
Mixed IT and business team for IT financial optimization
Procurement/enterprise and IT
Procurement specifically within IT
Cloud planning/optimization for cost/resource (public/private or hybrid)
Software license management
Vendor cost management (service providers, suppliers, other costs)
GRC - financial risk management
Project Management Office (PMO)
No single organization is coordinating
Enterprise procurement
Endpoint/mobile management
Other
IF THERE IS A SINGLE ORGANIZATION COORDINATING A STRATEGIC APPROACH TO IT
FINANCIAL OPTIMIZATION, WHICH OF THE FOLLOWING BEST DESCRIBES IT?

• Layering business
structure data
(LOB/cost center)
• Provides insight into
service usage across
the business
• Allows for targeted
service analysis
Technology Supporting Business Value
• Cloud product list
prices are clear
• However, actual costs
are based on
consumption
• Bills are “all or
nothing”
• Aggregating itemized
bills into actionable
information
• Applying business
data to cost provides
visibility
• Outcome based
dashboards
Augmented Data Billing Analysis Putting it Together

What metrics and benefits
should you pursue for
optimizing cloud?

Top Financial Planning Metrics
1. IT CapEx costs
2. Internal and external costs for delivering IT services
3. IT OpEx costs
4. The costs of delivering services internally
5. Cost of delivering IT services externally (SaaS)
6. ROI and TCO
7. Executive-level metrics on IT asset performance and
costs

Key Business Perspectives in Optimizing Cloud
• Metrics on underutilized or superfluous servers—costs,
location, and service relevance
• Metrics for hybrid cloud audits, HW, and SW usage
• Metrics to show SaaS application usage from a cost/value
perspective
• Metrics to show data center and endpoint application usage
• Metrics to show end-user application preferences
• Business process impacts associated with usage and portfolio
insights

International Shipping Company,
a VP of Technology Speaks
“Our on-premises software is moving into the cloud. But
with the right tools, we realize that it doesn’t have to be
a substantial leap to move from VMs to AWS. We are
gathering the same metrics and analyzing them in the
same way. I feel confident that we can optimize the
cloud costs at the same fidelity that we optimize VMs
today.”

Some Key Benefits From Usage Alone
• Optimizing IT process efficiencies
• Improving overall IT to business alignment from a
cost/value perspective
• Becoming more proactive in dealing with audits
• Lifecycle planning of IT application services from a
cost/value perspective
• Managing and optimizing IT HW and SW across
their full lifecycles
• Optimizing the move to public/private cloud

Challenges with Outcome Based Dashboards
• Cost Optimization
• Reclamation of unused services & software
• Identifying Underutilized resources
• Identifying Dorman Services
• Downgrade Opportunities
• Digital Transformation
• Service Consolidation through analysis of usage
• Cloud Environment Usage
• Migration Readiness
• Analysis of cloud costs
Focusing on Outcomes

Look for Progress in all of These Areas:
• More relevant and cost-optimized usage of external cloud
services
• More relevant and cost-optimized usage of internal cloud
services
• More effective overall service utilization
• Improved service availability/response SLAs
• Improved security/compliance-related outcomes
• Running IT as a business in conjunction with business
needs

Learn More About Scalable Software
https://www.scalable.com

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