Do you know how the cloud is
impacting your IT group today?
Regardless of how much or how little you are using the cloud today, it's having an impact on how your users consume IT and your view your services. Emerging trends in the IT and cloud industry will have profound impacts on how you deliver IT services to your users in 2013.
This presentations covers:
- How to take advantage of shifting IT delivery models
- Detailed real-world examples of organizations like your shifting IT from a cost center to an internal service provider
- How metering IT resource consumption gives you the foundation to massively improve your IT efficiency
- How you can make better decisions about where and how IT workloads are deployed
1. Top 5 Ways the Cloud is Impacting Your IT
Today
William Fellows, VP Research
2. Top 5 Ways the Cloud is Impacting Your IT Today
1 The Rise of Cloud
2 Phase Transition in Cloud Usage
3 Cost Center to Service Provider
4 A Multi-Cloud World
5 The Impact of IT Metering
3. A Perfect Storm Contributing to Cloud
Profound economic uncertainty
Do more with less (again, and again)
Consumerization of IT
Shadow IT
4. Cloud Computing Evolution
Internet of Things
Vertically
Proliferation of integrated Horizontally federated –
monolithic clouds and cloud brokering, marketplaces
ecosystems
5. What is driving adoption?
• Consumerization of IT
• Faster, more flexibility, more devices
• Proxy for IT transformation
• The new normal
• CIO: Chief Innovation Officer
• Virtualization first cloud first?
7. Cloud Market Evolution
Phase 2: Management of Cloud Environments
$12.8
PRODUCTS
Initial Cloud Engagements Cloud-as-a-Service
Focused on Infrastructure Revenue: 44% CAGR
2011-2015
CUSTOMERS
Developers, SMBs
FOCUS
WORKLOADS Greater Traction with
Test & Development PHASE TRANSITION Management Products &
Project Based Investments, product intros & Vertical Offerings
"Public Clouds Dominate" new deals point to: Increase in
private activity,
Higher-end data,
Shift up the stack CUSTOMERS
Enterprise Adoption
(*) usage
WORKLOADS
Production & Mission
$1.7 Critical "Focus shifting to
Private/Hybrid Clouds
Phase 1: On-Demand Infrastructure
2010 2011 2012 2013 2014 2015
8. Phase in Journey to the Cloud
Internal Private Cloud External Public Cloud
47%
38%
35%
21%
16% 15%
4% 6% 4% 6% 4%
3%
Implementation Operational Assessment of IT Audit Identification No Plans
Strategy Cost/Benefit
Planning
Cloud Computing
n=68. Industry Profile - 1H ‘12
9. Current State of Application Deployment
Q: For each of the following, what percentage is deployed on the different service delivery platforms?
ERP 64% 26% 8%
2%
90% of Workloads Remain Financial Management Software 61% 29% 8%
2%
In-House… Structured Data Storage and… 57% 38% 5%
Batch Workload Execution 55% 36% 9%
Online Transaction Processing… 54% 39% 7%
1%
Private
Cloud Unstructured Data and Storage… 52% 44% 5%
40%
Productivity/Collaboration 50% 41% 6%
2%
IT Systems Management 49% 44% 5%
1%
ITO/ Human Capital Management 49% 30% 12%8%
Hosting
Dedicated 8% Business Continuity and/or… 48% 35% 16%1%
Physical
50% Public Custom-built Applications 43% 49% 6%
2%
Cloud
3% CRM 41% 34% 10%14%
Application Servers (Non-… 39% 53% 5%
3%
Development and Test 34% 58% 3%
5%
Dedicated Physical Private Cloud ITO/Hosting Public Cloud
Cloud Computing
Industry Profile - 1H ‘12
10. Top Cloud-related Projects
What are your organization's top two cloud-related projects in the next 12 months?*
Internal Cloud 42%
Public Cloud Assessment 27%
SaaS 15%
Cloud Email 10%
Public Cloud Implementation 8%
Internal Storage 5%
Internal Management 5%
Management 3%
Internal Cloud Migration 3%
Hybrid Cloud 3%
Cloud Storage 3%
New Data Centers 2%
Migration 2%
Internal Hardware Expansion 2%
Disaster Recovery 2%
Other 15%
Cloud Computing
n=62. *Note that due to multiple responses per interview, total may exceed 100%. Industry Profile - 1H ‘12
11. Cost Center to Service Provider
Cost Center to Service Provider
12. Cloud adoption snapshot: drivers
Biggest Motivation for cloud usage
Cost savings on hardware/…
Flexibility in scaling IT up and down
Quicker time to market
Cost Savings on IT Staffing/Admin
Improved Productivity
Disaster recovery/business continuity
Self service delivery
0.0% 20.0% 40.0% 60.0% 80.0%
Source: The 451 Group Cloud End User Survey 2011
13. Unlocking your inner service provider self
What IT organizations can learn from
service providers
Elasticity
Multi-tenancy
Billing and chargeback
Cost discipline
Open source expertise
Customer service
14. Private Cloud Enablement
Imitate Turn your own datacenter
Emulate into a cloud that works like
Replicate Amazon, Rackspace…
Advantages:
Security and compliance
Leveraging existing investment in datacenters
Powers new IT-as-a-service model inside organizations
New IT refresh cycle for suppliers!
But
Private cloud is ring-fenced and finite
Doesn’t reproduce elasticity of hosted cloud
16. A multi-cloud world
Cloud service providers and hosting partners will be required
Hybrid model is dominant:
Virtualized, automated on-premise infrastructure with a
hosted elastic option
Rackspace, Amazon, VMware, Salesforce.com, Microsoft and
others acknowledge this
Managed service providers, co-lo, datacenter operators
Converged infrastructure – big investments e.g. VCE
Community, partner, vertical
17. Energy: Internal service delivery via private cloud
Goals:
The prize: greater agility, save money
Overcome CFO scepticism with business case for cloud
Private cloud for most apps with hybrid for ‘infinite scale’ scale
Manage as one system
Business challenges: Benefits:
Thousands of guerilla AWS users Enfranchise vs outlaw
Public cloud not ready, not cheaper Move to in-house private cloud for
Inappropriate for many apps, insecure most apps
Until DCs are depreciated there’s no Use more SaaS – controlled by IT
driver for change Most savings will come from hybrid
Eco reality: internal budgeting based IaaS over multiple years for ‘infinite
on ‘how much will you use next year scale’
PaaS – some PoCs, no use case
18. Financial Services: service provider to the business
Goals:
Become a service provider to the business
‘Big Four’
Four-year journey - 2,500 servers in 2011
Australian
bank Using cloud orchestration layer to manage hybrid
Security is way behind – “pulling the regulator with us”
Organizational transformation Benefits:
Standard platforms, reusable Time to market
components
40% cost savings
Enterprise services = manufacturer
Roll out across all units, geographies
Flexibility
Sourcing from multiple clouds No new datacenters
Inject and control virtual firewall into No longer rely on one
cloud sourcing partner
19. Life sciences: Amazon IaaS, hybrid cloud
Goal: To become an internal cloud hoster
and service provider using public/private
clouds, featuring self service, best
execution venue
Business challenges: Cloud solution:
Save money. Not build new Multiple apps, users and groups
datacenters for near-term, raw capacity on EC2
More predictable cost model Using VPC tactically for massive
Time to results, market scale
Get benefit of public clouds Testing cloud on-ramps to EC2
internally and others clouds (IT ops)
Testing private cloud (IT ops)
21. What are the characteristics of IT Metering? Propaganda vs Reality
Know where you are before you know how to get
where you’re going
You can’t improve what you can’t measure
Measuring what matters
Comparing across environments
Best Execution Venues
Foundation of an IT utility
22. Cloudonomics
IT cost center to IT as a service
Benchmarking against Amazon
• AMI a de facto standard?
• VMware in the enterprise
Cost allocation - it’s a rate card
Budgeting – run wild/consumption vs allocation
Support Opex vs Capex decisions
Showback and shadow billing
Budgeting reality, depreciation
Is the organization ready?
23. So how do you make it happen?
Rob Bissett
Vice President, Product Management
rbissett@6fusion.com
25. A Utility Requires Normalized Metering
• This applies to all utilities & commodities - example: electricity meters are
calibrated in common billing units, the standard being the kilowatt/hour
• Normalized cloud/IT metering is critical to seamlessly and transparently
quantify & cost capacity and measure individual usage & aggregate demand.
Native in vCenter Fusion of 6
CPU in Mhz
IT metrics
MEM in MB
DISK I/O in KBps
LAN I/O in Kbps
Metering - Billing
mCloud WAN I/O in Kbps Showback - Chargeback
STORAGE in GB Utilization Profiling
Cloud Interoperability
28. Cloud Resource Meter
1. Real-time IT consumption – virtual & physical infrastructure
2. Insightful reporting – capacity & consumption – trending
3. Internal chargeback – export data to excel or current IT cost accounting system
4. External cloud costing – accurate costing of public workload deployment
5. Simple installation – VMware vApp or agent for physical machines
6. Hypervisor agnostic - API-based 6fusion adaptor connects to hypervisor
vCenter Console
View usage
data in either
kWAC
Enables IT to pivot from departmental cost center into an internal line-card
service provider with measurable and predictable business & IT ROI
29. What This Means For You
You are now competing with some
1 The Rise of Cloud of your IT vendors
Where you are in the transition
2 Phase Transition in Cloud Usage will determine your next steps
Get on the path to becoming an
3 Cost Center to Service Provider
internal service provider
You have to have the flexibility to
4 A Multi-Cloud World deliver resources in the best
venue
IT metering gives you a foundation
5 The Impact of IT Metering for under
30. Real World Example of IT Metering
• Challenge
• Couldn’t get clear comparison of efficiencies Major US University
across environments – public and private – System
for IT investment decisions
• Solution
• 6fusion Cloud Resource Meter for IT
metering, cost comparison and usage
showback
• Results
• Accurately managing resources and
comparing competing solutions
“The faculty tends to believe that his on-campus services are expensive. This is partly
because they compare his charges to ‘the basic price of an EC2 instance on the Amazon
website,’ without factoring in additional charges for getting data in and out of Amazon.
The WAC helps make these comparisons more accurate.”
- Metered IT: The Path to Utility Computing
Paul Miller
31. Thank You!
Go to http://www.cloudresourcemeter.com
Sign up today for immediate access to Cloud
Resource Meter. Use the code “451webinar”
and get $100 in free computing!*
*Offer valid through October 31, 2012. No cash value. Eligible only to 6fusion direct customers
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