Cloud Application Rationalization- The Cloud, the Enterprise, and Making the Right Decisions for your Business – Gartner Symposium ITXPO 2011

© Copyright 2011 Hitachi Consulting

www.hitachiconsulting.com

Chad M. Lawler, Ph.D. Director of Consulting Services, Cloud Computing [email protected]

www.hitachiconsulting.com/cloud

Cloud Application Rationalization

© 2011 Hitachi Consulting Corporation

Proprietary & Confidential, All Rights Reserved

Gartner Symposium ITXPO, October 24, 2011

http://www.gartner.com/technology/symposium/orlando/

The Cloud the Enterprise and Making the

Right Decisions for your Business

mailto:[email protected]

http://www.hitachiconsulting.com/cloud




Commoditization of the Cloud - Focus on Applications

Commoditization of Cloud Infrastructure

Increasing value-add cloud services, need for integration and application focus

Increasing the need for ease of application migration between clouds and private environments

Similar Services Between Clouds

Leading to increased focus on applications to differentiate and compete in the cloud space

Shift away from infrastructure towards defining solutions to solve business challenges

Value of IT is in the application and the service IT delivers

How the are integrated and delivered

New Applications Increasingly Available on Cloud Platforms

At lower cost with rapid deployment timeframes

Existing Application Architectures

Not designed to take advantage of the cloud

Transformation techniques are required to enable cloud migrations for legacy applications

1


Application Performance and Quality of Service

Applications Performance Critical to the end user and overall service quality

If an application does not perform well, end users will be frustrated and seek alternatives

Alternatives are increasingly becoming other cloud applications and services

Applications that Run Well in a Private Datacenter Environment May not function as well in virtualized, remote cloud environments

Poor performance can negate potential gains if end users cannot use cloud applications effectively

Traditional Private Datacenter Infrastructure Require high amounts of communications between tiers, as well as with the end user client

Creates a high degree of network bandwidth utilization and results in applications that are “chatty”

In Cloud Environments Network is vitualized and servers may not be optimally located on the network for best performance

Often not many options for network performance optimization

HTTPS/SSL for security and encrypted communication also slow performance

2


Challenges with Cloud Application Migration

Application Forklift from Private Datacenter to Cloud

Not a simple task and likely to have performance impacts

Often requires application redesign for optimal cloud functionality

For Apps to Perform Well in the Cloud, they Must be Designed & Optimized to:

Function over the Internet as web applications

Perform in virtualized environments and multi-tenant cloud infrastructures

Reduce bandwidth utilization, end user interaction, server communications

Minimize interaction between tiers and communication with private datacenter environments

Integrate security and authentication controls

Leverage the inherent scalability of the cloud and ecstatic flexibility of on-demand cloud resources

Businesses Leveraging Cloud Services Need to Ensure

Applications and services identified for cloud migration will perform well in the cloud environments

Applications meet both end user expectations and business requirements for quality of service

Requires Application Assessment and Rationalization

Not all applications are an ideal fit for the cloud

Applications can be re-platformed and migrated to the cloud with application development changes

3


Areas of Concern & Barriers to Cloud Adoption

Security, Availability & Integration The top three barriers to cloud adoption and

migration

Ability to provide security services in the cloud top concern

Disruptive & Threatening Disruption to traditional IT service delivery model

Threatening to existing IT organizations

Engagement Working with the right level of management and

decision makers

Uncertainty Imagined insecurity of the cloud

Service Capability Leverage of the new cloud service delivery model

and capabilities

Migration

Application and service transition, integration and

management

Private disparate environments with application

fragmentation which require transition

Management

The cloud is currently mostly self-service where OS

and applications are not managed

Service Levels & Availability

Ability to deploy highly available IT application

services

Regulatory Compliance

Regulatory Compliance – Governance processes that

enable compliance with regulatory requirements

4

© Copyright 2011 Hitachi Consulting 5

Which Applications?

Ideal Candidate Applications Applications with uncertain demand or inconsistent demand benefit from elasticity. Applications that need to be rapidly provisioned benefit from cloud technologies.

Ideal Workloads Service likes email, collaboration, and CRM can be the easiest to move to the cloud and can provide immediate savings

Which Cloud?

Public Cloud Great for rapid provisioning, massive scale, greater elasticity, and tightly controlled costs

Private Cloud / Hosted Cloud Best for security concerns, tighter controls, and greatest number of applications

Hybrid Cloud Best of both Public and Private though the potential scale could place a burden on the Private Cloud

How Do I Get There?

Content Migration Workloads can be moved quickly with minimal business disruption with cloud services

Optimize Your Infrastructure Optimize infrastructure with management, processes, automation, and virtualization

Create Your Cloud Optimized Applications Create cloud optimized apps for greatest benefit and performance running in private/hosted environments, or a hybrid combination

Making the Right Cloud Decisions for Your Business

Cloud Application Rationalization


Key Questions for Cloud Application Rationalization & Migration

How can I meet enterprise needs for security, performance and service availability in the cloud?

What applications should be migrated to which public or private clouds?

Which migrations will be most beneficial – what are the opportunities and risks?

How do I conduct an ‘application cloud readiness’ assessment?

What are the benefits, business case and ROI – are there cost savings?

How can I build a road map for target cloud applications for the near term and 3-5 years out?

Are the existing applications ready for migration to the cloud?

How are applications migrated to the target cloud environments?

6


Application Performance and Quality of Service

Applications Performance Critical to the end user and overall service quality

If an application does not perform well, end users will be frustrated and will seek alternatives

Alternatives are increasingly becoming other cloud applications and services

Applications that run Well in a Private Datacenter Environment May not function as well in virtualized, remote cloud environments

Poor performance can negate potential gains if end users cannot use cloud applications effectively

Traditional Private Datacenter Infrastructure Require high amounts of communications between tiers, as well as with the end user client

Creates a high degree of network bandwidth utilization and results in applications that are “chatty”

In Cloud Environments Network is vitualized and servers may not be optimally located on the network for best performance

Often not many options for network performance optimization

HTTPS/SSL for security and encrypted communication also slow performance

7


Challenges with Cloud Application Migration

Application Forklift from Private Datacenter to Cloud

Not a simple task and likely to have performance impacts

Often requires application redesign for optimal cloud functionality

For Apps to Perform Well in the Cloud, they Must be Designed & Optimized to:

Function over the Internet as web applications

Perform in virtualized environments and multi-tenant cloud infrastructures

Reduce bandwidth utilization, end user interaction, server communications

Minimize interaction between tiers and communication with private datacenter environments

Integrate security and authentication controls

Leverage the inherent scalability of the cloud and ecstatic flexibility of on-demand cloud resources

Businesses Leveraging Cloud Services Need to Ensure

Applications and services identified for cloud migration will perform well in the cloud environments

Applications meet both end user expectations and business requirements for quality of service

Requires Application Assessment and Rationalization

Not all applications are an ideal fit for the cloud

Applications can be re-platformed and migrated to the cloud with application development changes

8


Key Considerations for Application Assessment

Regulation and Compliance Location and type of cloud matters and appropriate governance and compliance requirements must be assessed and

addressed

Application Configuration and Installation Configuration state and installation steps must be capture, and automated for full leverage of cloud scalability

Application Hardware Dependencies The application must be able to run on cloud platform with no special or specific hardware needs

Content Consider the types of data, information and content and what information may need to be secured and protected, for

example Privately Identifiable Information (PII)

Security Consider the security requirements of both data servers and applications

Antivirus, AntiMalware, Security Event and Incident management, Intrusion Detection and prevention, server OS and application patching

9


Key Considerations for Application Assessment

Application State Application State must be replicated by the application directly or in a replicated store

Application Scale The Application must scale horizontally (scale out) and be able to leverage load balanced server farms to take

advantage of cloud scalability

Data Sensitivity Public clouds may not be able to host all sensitive data; encryption may be needed

Connectivity & Integration Intranet and Internet application connectivity and integration needs must be clear

Application Portability Is the application easily virtualized or portable to other technologies or environments?

Latency Between Components Shared cloud systems may not guarantee uniform/low latency among app components

10


Need for Application Assessment and Rationalization

Legacy Applications Not Currently Virtualized in your Datacenter Often high associated costs and represent the most challenging candidates for cloud migration

Need for Cloud Expertise Required in-house expertise to effectively and efficiently drive cloud adoption and migration

Need experience to avoided critical mistakes - Cloud migration mistakes can result in costly failures

Botched implementations compromise the value and business appeal of the cloud

Need for Application Assessment And Rationalization Assess how to leverage current business capabilities while moving away from fixed costs and limited technical

infrastructure

Reap the most from cloud’s cost reduction and speed-to-market benefits by converting applications

Leverage Our expertise in Cloud, ERP, BI and CRM To help evaluate potential cloud services that provide these key enterprise applications

Enabling services to perform efficiently on the right cloud platform and capitalize on inherent scalability

Our Cloud Application Foundry provides cloud application development services and redesign services to transition applications

11


Our Cloud Application Portfolio Rationalization Assessment

Path to the Cloud

Provide a fast, predictable and economical path to the cloud

Enable current business capabilities on new cloud platforms

Answer key questions cloud migration & business benefits

Rationalization & Assessment Activities

Perform requirements analysis to identify which cloud platforms provide the application best fit

Review application portfolios and explore opportunities for migrating applications to the cloud

Review plans for new applications and identify those that would be a good fit for the cloud

Assess the level of effort required to either develop or migrate those applications

Strategy & Road Map

Alignment of current state and future state vision

Build a 3-5 years Cloud Strategy with integrated application road-mapping services

Build a tactical roadmap for target near term cloud applications Execute cloud application re-platform and redesign process

Develop a business case to support their cloud initiatives

Delivery

Builds and maintain applications in the cloud and delivers rapid development speed and security

12


Cloud Application Assessment & Roadmap

Goals:

• Evaluate Business Cloud Use Options

• Analyze Cloud Application Potential

• Review Business & Financial Impact

Activities

• Cloud Readiness Assessment

• Architecture & Infrastructure Analysis

•Application, Security & Compliance Analysis

• Application Portfolio Rationalization

• Portfolio End-State Architecture

• Platform Selection & Sourcing

• Business Use Case, Economic Analysis

• Cloud Business Use Blueprint

• Cloud Readiness Report

• Targeted Cloud Applications Plan

• Cloud Architecture Design

• Cloud Security Requirements Review

• Cloud Platform Selection & Sourcing Plan

• Business Case with TCO & ROI

Cloud Use Blueprint

• Leverage Cloud Infrastructure

• Cloud use for cost reduction

• Cloud use for capability improvement

• Application & infrastructure migration

• Cloud platform integration

• New Cloud Application Development

• Lower cost cloud service capability

• New cloud applications

• Cloud re-platform and transition

• Retirement of legacy systems

• Cloud Application SaaS-Enablement

• Enable new market share growth

• Lower initial application cost barriers

• Convert software into cloud services

• SaaS business application conversion

• Pay-per-use, subscription consumption

Reduce Costs, Increase Capabilities Realize the benefits of leveraging cloud

infrastructure within your business for overall cost

savings, increased agility and rapid deployment

capabilities.

Build Low-Cost, Flexible Cloud Apps Deploy new pay-per-use cloud applications that

lower TCO and are available any time, anywhere,

with rapid scalability to ramp up or down based on

your business demand.

Expand via the Cloud Eable low-cost cloud services by Cloud-enabling

your software and converting applications to

Software as a Services (SaaS).

Assess & Plan

Cloud Application Starter

Cloud Portfolio Roadmap


Cloud Consulting Services

• Goals - Explore & Inform

• Understand cloud services & impacts

• Discuss potential cloud opportunities

• Identify potential business benefits

• Review cloud risks

Cloud Workshop

Strategize

14 Cloud Strategic Advisory

Services Cloud Application

Development Services

• Goals - Assess & Plan

• Readiness, Infra. & App. Assessment

• Application Portfolio Rationalization

• Portfolio End-State Architecture

• Platform Selection & Sourcing

• Business Use Case, Economic Analysis

Cloud Assessment & Roadmap

Strategize

• Goals - Develop New Cloud Apps

• New Application Definition

• New Application Development

• New Application Deployment Transition

• New Application Testing & Validation

Cloud-Ready Application

Design

Cloud Transition Services

• Goals – Architect, Pilot & Migrate

• Cloud Architecture Design

• Utilization & Performance Benchmark

• Cloud Application & Data Transition

• Cloud App & Environment Testing

• Cloud Application Pilot

Cloud Application Deployment

Design

• Goals -Automate Cloud Control

• Sourcing Comparison & Automation

• Procurement & Order Management

• Billing, Vendor & Contract Management

• Policy-Based QoS & IaaS Cost Control

• Performance Management & Trending

Cloud Sourcing & Governance

Implement

Cloud Application Starter


Cloud Brokerage Services

• Goals - Source & Implement

• Improved Cloud Sourcing Options

• Simplified Procurement & Deployment

• On-Boarding Orchestration

• Cloud Service Provider Comparison

• Procurement, BOM & Order Automation

• Automated Cloud Solution Execution

Cloud Sourcing

Implement

15 Cloud Integration,

Sourcing, Procurement Cloud Vendor

Management

• Goals - Manage & Simplify

• Cloud Single Point of Ownership

• Multiple cloud IaaS, PaaS, SaaS solutions

• Aggregated single point of ownership

• Single relationship across providers

• Contract Management

• Single Source Billing Management

Cloud Management

Manage

Cloud Governance &

Control

• Goals - Govern & Control

• Improved, Governance & Management

• Audit, Request & Approval System

• Cloud Resource Planning & Cost Control

• Infrastructure Performance Management

• Cloud Service Demand Trending

• Growth Planning & Projection

Cloud Governance

Govern


Cloud Service Capabilities

Technologies

Services

Industry

Focused

Solutions

Cloud Technologies

Hitachi builds and develops technologies

that power the Cloud including servers,

storage, Cloud appliances, automation with

integration capabilities for existing

datacenter environments. Hitachi is

delivering the technologies supporting the

next generation of cloud-enabled, virtualized,

automated datacenters.

Cloud Services

Hitachi Consulting provides cloud strategic

advisory, management and technology

consulting, cloud solution architecture,

application development & migration and

managed services with teams delivering

industry-focused Cloud solutions in the

Public, Private, and Hosted Clouds.

Hitachi Consulting technologies and services cover Infrastructure, Platform, & Software as a Service solutions across cloud types.


Benefits of Our Customized Cloud Services for the Enterprise

Cut Through the Hype

Circumvent the marketing hype to leverage real capabilities and benefits cloud services deliver with realistic and measurable goals

Reduce Capital Investment

Assess current applications, infrastructure and sourcing costs to identify potential savings

Enable Strategic Cloud Adoption

Develop a strategic plan linked to business goals with a prioritized road map to guide cloud migration

Ensure Service Capability

Analyze the current IT environment, identify capability/innovation needs and integrate these into a complete cloud solution

17

Accelerate Cloud Migration

Simplify and automate processes for cloud

service/platform selection, application development

and migration

Develop, Transition & Implement Successfully

Redesign and redeploy applications to the cloud with

the proven expertise of our Cloud Application Foundry

With a complete solution, proven engagement

methodology and project management expertise

Meet Transformation Requirements

With services that are modular, allowing your business

to focus on precise areas of need

Talk with us Today to Learn More About Hitachi Consulting’s Cloud Services Cloud Application Foundry for Cloud Application Development & Migration

Cloud Services for the Enterprise for Cloud Strategic Advisory and Consulting Services


Contact us to Learn More about our Cloud Solutions Today

Chad M. Lawler, Ph.D. Director of Consulting Services

Cloud Computing

14643 Dallas Parkway, Suite 800, Dallas, Texas 75254

Office: 469.221.2894

Email: [email protected]

www.hitachiconsulting.com

www.cardcloud.com/chadlawler

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Technology

Cloud Application Rationalization- The Cloud, the Enterprise, and Making the Right Decisions for your Business – Gartner Symposium ITXPO 2011