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

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About Me…

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Lisa Larson

Vice President

Enterprise Cloud Solutions

Rackspace Hosting

lisa.larson@rackspace.com www.rackspace.com

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The 3 Must Do Steps For IT

EMPOWER

INNOVATE

TRANSFORM

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Meet Steve Mills…

• Rackspace CIO

• He serves 5,000 Technically Savvy Rackers

• He is facing Exponential Company Growth

– Acquisitions

– On-boarding new employees

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Steve’s Chief IT Challenges

Demand for IT services

exceeds supply

The business expects near

instantaneous delivery

Recruiting and retaining talent is problematic

IT is capital intensive

Managing increasingly

complex environments is

difficult

Juggling Legacy and New App Development

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• BYOD

• Mobility

• DIY Cloud

“I DON’T CARE HOW…

I WANT IT NOW!”

CONSUMERIZATION of IT

Instant CPU… Instant Storage… Instant Provisioning…

Instant Gratification!

Rackers Provide Fanatical Support…

And, EXPECT Fanatical Support

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Rackers Began to Find Their Own Solutions

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Internal IT Department

Business

Unit

We need… SPEED,

AGILITY &

FLEXIBILITY

80% of our IT spend &

resources are devoted to

“keeping the lights on”

WE CAN’T HELP YOU

Service Provider

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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.

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.

Like Many IT Leaders… Steve Knew He had Shadow IT

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Steve Knew the Dangers of Shadow IT…

Unsanctioned Use

of Cloud

• Loss of Control/Governance

• Security Breaches

• Compliance Penalties

• Lost Revenue

• Brand Deterioration

• Loss of Business IP

Weakened Spending

Control

• Lack of Negotiated Terms

• Diminished Liabilities Control

• Misclassification of Spend

• Profit Erosion

• Spend Ignorance

• Vendor Contract Lock-in

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IT

Steve Had a Choice…

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Overwhelmed by demand

Struggling to meet

business needs

80% of time dedicated to

keeping lights on

BUs follow the shortest

and easiest path

BUs leverage Service

Provider to solve

business needs

CMO takes over IT

budget

IT no longer brings

value to the org

Organizational

downsizing ensues

The role of IT is no longer just project/architecture based.

IT Strategy must be built on adding business value!

IT Dept.

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Steve Needed to Adopt a New Way of Thinking

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Virtualization is a TECHNOLOGY …

Cloud Computing is a

BUSINESS MODEL

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Steve Needed to Find a Safe Way to

Leverage Shadow IT

Create New Procedures

BUILD A SERVICE CATALOG

Set guardrails for the business.

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Now Steve is Fueling the Innovation Engine

Cloud

First

Mindset

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IT

Steve is on the Path of Transforming

the Business of IT

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Overwhelmed by

demand

Struggling to meet

business needs

80% of time dedicated

to keeping lights on

Enable a service catalog through

a Service Provider

Empower a self-service

organization

Create an army of innovators

Free IT resources to focus on

business value

CIO becomes an Advisor to

the Business

IT working on game-

changing, strategic

initiatives

Demands of the Business

are met

IT Dept. Partner to the

Business

Adopting a Service

Provider Mentality

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• 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

Shadow IT is Now Steve’s Best Friend

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The 3 Must Do Steps For IT

EMPOWER: IT AS A SERVICE

INNOVATE: CLOUD FIRST MINDSET

TRANSFORM: IT AS BUSINESS

ADVISORS

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IT Transformation Framework

IT

Evolution

Workshop

Application

Profiling

Workshop

Cloud

Readiness

Assessment

Design

Migration

Services

Solution

Online

Customer

Data Center

Strategize & Assess Design Migrate Implement

Support & Optimize

Step by step approach to adopting cloud

Governance Planning & Customer Maturity Evolution

POC

Pilot

Architecture

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Get SMART on Cloud

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“Our goal is to create the most

CLOUD SAVVY customers in the industry”

Recommended Rackspace Resources: • Cloud: Vision to Reality whitepaper

• Cloud: Economics whitepaper

• Take the Cloud Readiness Self Assessment

• Use cases: – Hybrid Hosting: Dominos Pizza and watch the video

– RackConnect™: VEVO and watch the video

– Private Cloud: Lighthouse1

– Advisory Services: Acquity Group

Recommended Industry Resources:

• The Big Switch, Nicholas Carr

• Cloudonomics: The Business Value of Cloud Computing, Joe Weinman

• Rackspace Cloud Tools Marketplace

• http://gigaom.com/

• www.gartner.com

• www.forrester.com

• www.idc.com

Rackspace Knowledge Center

JOIN US!

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RACKSPACE® HOSTING | 5000 WALZEM ROAD | SAN ANTONIO, TX 78218

US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM

RACKSPACE® HOSTING | © RACKSPACE US, INC. | RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN THE UNITED STATES AND OTHER COUNTRIES. | WWW.RACKSPACE.COM 19