Get your house on order

Clean Before You MoveWhy you should have your house on order before you source your IT?

Ewout Dekkinga, IT architect Cloud & DC Services

© 2013 Unisys Corporation. All rights reserved. 2

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Topics and content

Context / trends

Multi sourcing Workloads Governance Conclusions


The Industry PerspectiveTrends and Technology Drivers

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The Disruptive Technology ParadoxSimplicity for End Users drives Complexity for IT

• Cloud Computing is resulting in multiple deployment models for data centers including public and private clouds

• Mobile Computing is resulting in multiple device types for end users from smartphones, to tablets and laptops

• Cloud, mobile and social computing increasingly part of application design

• Big Data is driving storage rationalization to control costs and information infrastructure transformation to gain business insights

• These trends are creating an increasingly porous CyberSecurity perimeter

Creating New Forms of Complexity for Enterprise CIOs…

Technology Shifts…

Infrastructural shift to Cloud Computing

Shift to mobility as the “new desktop”

Collaborative shift to social computing

Informational shift to unstructured data and

real time analytics

Continued IT Innovation is driving commoditization and simplicity for end-users, but masks an internal complexity that creates new management challenges for Enterprise IT

Cyber-security shift towards “zero trust” security models

5Exchange Forum | © 2012 Unisys Corporation. All rights reserved.

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What is Multi-sourcing?A Selective usage of different sourcing methods

• Outsourcing– Hand-over operations– All or nothing

• Sourcing (in/out)– On-premise– Co-location– Managed hosting– Managed service– Hybride IT

Question of IT sourcing is not IF but What, Why, How & Where


Traditional outsourcingOne size fits all?


Service Provider’s viewpoint:

The Industry PerspectiveThe paradox of interests in outsourcing

Once the contract has been signed, the goals of both parties take on their more natural business characteristics

. . .

Source: TPI Governance Insights; 11/2011

Client’s viewpoint:The client wants to get:

Everything the Service Provider can offer . . .

At the highest levels of quality, with the fast possible response

times . . .

With as many additional and value added services included

(at no charge) – provided at the lowest possible cost

Service Provider wants to deliver:

The things that have to be delivered by contract

While doing everything possible to increase revenue and

profit

At the lowest cost possible

And enjoy Immediate reductions in charges if volumes drop or there is a need to scale back

And receive Notice for all changes and Payment for exceptions

And ! The Client will reward their staff for making the above take place

And ! The Service Provider will reward its staff for making the above take place


Today’s IT environmentTransformed with multiple users, devices, applications and data sources

Multiple Data sources:CorporateSocial networkCommunity dataUnstructured data

Multiple user realities: • Private user• Corporate user• e-Citizen

OutsourcedInformation

systemInternal

Information system

PublicClouds

HostedPrivate Clouds Internal

Private Clouds

Multiple application sources :Corporate ApplicationsPublic Software as a service/Various App stores

Multiple user devices: Mobile devicesCorporate devicesBYOD

Hybrid

Enterprise


New sourcing models?Fog is a cloud around your head!

• Alternative methods to have external parties deliver (parts of) the IT of your organization.

• Service Level Agreements (managed Services)

• IT Outsourcing

• BPO

• Cloud…


Value

IT Efficiency

Busi

ness

Effe

ctive

ness

Chaos

IT Waste And Overspending

Missed Business Expectations

Silo Delivery

Point Solution Delivery

Cloud Delivery

Balance Efficiency and EffectivenessThe Performance Zone

Perform

ance Zone


Today’s hybrid IT environmentManaged freedom of sourcing

Applications

Processes

Governance Integration

Policies

HostedPrivate Clouds

InternalPrivate Clouds

PublicClouds

Outsourced Data

Centers

InternalData

Centers

Architecture

Security

Hybrid Enterprise A Hybrid Enterprise is a composition of cloud, non-cloud, internal and external IT service delivery models that remain unique entities but are bound together by an integrated management environment, and common technology, processes and policies to optimize agility, enable data and application portability, and reduce risk.

Borderless, Virtual, Automated, Visible and Secure


Overcoming the ChallengesWith Application, Infrastructure and Management.

• High fixed costs

• Low resource utilization

• Inflexible environment

• Labor costs high

CurrentEnvironment:

• Low fixed costs

• High resource utilization

• Flexible environment

• Labor costs optimized

TargetEnvironment:

Multi-Sourcing approach towards the Hybrid Enterprise:

Goal Setting

WorkloadFeasibility

Roadmap


Application AssessmentWorkload Analysis

Applications

Business Goals

Intelligent Application Alignment Service

Migration Strategy Roadmap

Non-Cloud

Internal IT

Cloud

Outsourced IT

Assess applications, maps its interdependency, provides blue print of environment and determines the best fit by leveraging automation (tools) and reducing migration time by up to 60% compared to manual based methods.

Business-As-Usual Mission Critical Innovation

Public Clouds

PrivateClouds

ISB

N:

97

8-0

-12

-37

49

56

-7


New sourcing models provide a lot more choicesImproving efficiency and flexibility


Infrastructure is a utility, applications are stickyApplications are the large part of the service


Finding the best fit for all workloadsNot everything is utility!


Why is Governance so important?The Realities of Managing Multi-Sourcing

Multi-Sourcing is often underestimated and market observations show that expected benefits are often not realized due to ineffective management.

Source: TPI – Trends in Multi-sourcing 2010

• “Lack of management is central to the problems with multiple sourcing. 84% of companies do not have what they regard as a mature governance model.”

Survey by PA Consulting, Financial Times

Central To All Problems

• “63% of companies surveyed believe they lose an average of 25% of contract value due to poor governance.”

International Association of Outsourcing Professionals

Lost Contract Value

• “Companies report between 5% and 30% of the expected value of their transaction is lost through ineffective governance.”

TPI Research Study

Lost Value of Transaction

Impact of Poor Governance


Core Components of the Governance Approach“Get your house on order”

Simplified Multi-Sourcing Environments

Improves Productivity & Performance

Control IT Costs

improves Business Value

• Enhance and simplifies multi-vendor management

• Enables strategic partnering in a multi source environment

• Clarifies accountability across the IT environment

• Strengthens relationships and improves communication

• Increases collaboration and visibility

• Increases understanding of expectations and means to accomplish them

• Effective problem management with faster resolution

• Identifies scope for automation and enables it

• Consistent Service Delivery with Improved Quality

• Improves cost savings

• Reduces operational complexities

• Enhances resource utilization

• Supports business goals strategically through IT

• Enhances Business Continuity

• Fosters proactive improvement and innovation

• Improves focus, prioritization to provide insights into opportunities


Concluding statements

Today’s business challenges and IT capabilities demand a different, more flexible, sourcing model

Multi-Sourcing offers a fit for purpose delivery model based on mixing all available sourcing structures

The optimal sourcing unit is the workload

Without a proper governance structure, multi sourcing is not achievable

With mapped workloads and proper governance your IT-house is on order, and your organization is ready

to benefit of the opportunities of modern IT sourcing.


Thank you!