How to Utilize Cloud in Your Corporate IT Strategy

How to Utilize Cloud in your Corporate IT Strategy

Paul Selway

James Smale

Jason Baker

1Redpath Consulting Group confidential and proprietary 2010

Paul brings to Redpath Consulting Group over 25 years of experience in the consulting industry.

His extensive background and career progression through the roles IT Management Consultant, Technology Director, and Principal Partner began from a solid foundation as a Software Engineer.

His experience was gained from numerous management consulting engagements for clients in both Europe and North America; focused on the healthcare, financial, banking, brokerage, and capital markets industry.

Paul has an International MBA from Henley Business School, B.S.C Honors Computer Science Degree, Electronics Degree, and is a Chartered Engineer.

Paul SelwayPresident


James brings to Redpath Consulting Group over 20 years of experience in business and the IT consulting industry.

His extensive background and career progression through the roles Sr. Technical Analyst, Technology Director, Business Entrepreneur and Principal Partner began from a solid foundation as an IT Infrastructure Engineer.

His experience was gained from numerous management roles and consulting engagements for clients in both Europe, Asia, Latin America and North America; focused on software manufacturing, airline operations, advertising, agriculture, manufacturing, and health care industries.

James also has extensive experience in operational support leadership, process improvement, strategic organization planning and enterprise architecture planning.

James SmaleCEO


Jason Baker has over 15 years of experience working with Internet and telecommunications organizations in Minnesota. As CTO of VISI he helped architect ReliaCloud, the first public cloud computing platform in the Upper Midwest. Prior to VISI, he co-founded Digital North and was the technology leader within the organization. In his capacity as Director of Operations, Baker helped Digital North expand into multiple datacenters serving thousands of customers.

During the dot-com era in the late 1990’s, Baker was a key technology driver and partner at iPares, a multinational dot-com consultancy. Baker managed the profitable Application Hosting division within the organization.

Early in his career he joined MEANS Telcom, a regional telecommunications provider. As a member of their professional services team he worked closely with businesses during a time when the Internet was first becoming a useful business tool.

Jason BakerCTO


Our mission is to help our customers leverage enterprise-class cloud computing technology. We can develop your cloud computing strategy, technology roadmaps, business value propositions, and cost-benefit analysis. We can deploy and support your cloud solutions.

We are recognized partners with leading cloud vendors:

-Salesforce.com-Google-Visi/Reliacloud

Let us show you how you can leverage the cloud.

www.redpathcg.com


ReliaCloud, a product of VISI, is an enterprise-class cloud designed for businesses and that need dynamic infrastructure.

- Based in Minneapolis/St. Paul region- 2 data center locations (SAS 70 Type II)- 10+ years in data center business- 24x7x365 live support

www.visi.com

Data Center 1: St. Paul, MN


Introduction to IaaS

What should be considered for an IaaS ROI?

What makes an IT Infrastructure component a good candidate for IaaS?

How can an assessment help identify cloud IaaS opportunities?

What about the organizational change management challenge?

How do you build a hybrid IT Strategy that includes cloud components?

How can you create a compelling business case to justify cloud components in your IT Strategy?



Cloud Computing is internet based computing, where shared resources like computer hardware, data, and software packages are provided on demand as a utility, very much like electricity is provided from the electricity grid.

Infrastructure as a Service (IaaS) - public cloud computing customers do not own their hardware infrastructure, so avoid capital expenditure by renting it from a cloud provider.


Characteristics - Cloud users pay for what they use on either a utility model (like electricity) or a subscription model (like a newspaper). Low upfront costs to get started.

Economics (ROI) – Low cost to establish, elastic (you can have as little or as much of it as you want), pay for what you use, terminate contract therefore avoiding ROI risk and uncertainty.

Architecture - Cloud architectures typically involve multiple cloud components generally joined together (web services) with integration points to legacy systems.


StandardizeConsolidate

VirtualizeAutomate

Self-ServiceCentralize

From silos…to Dynamic Data Center and IT as a service

Application

SilosZones of

VirtualizationPublic

Cloud Services

Apps

Servers

Network

Storage

Private

Cloud Services

Departmental


Resource Pooling

Broad Network Access Rapid Elasticity

Measured Service

On Demand Self-Service

12

Hybrid Clouds

DeploymentModels

ServiceModels

EssentialCharacteristics

Common Characteristics

Low Cost Software

Virtualization Service Orientation

Advanced Security

Homogeneity

Massive Scale Resilient Computing

Geographic Distribution

Redpath Consulting Group confidential and proprietary 2010


14

Private cloud - Enterprise owned or leased

Community cloud

- Shared by a few organizationsPublic cloud

- Shared by the general public

Hybrid cloud - Shared by several organizations


Abstraction breaks dependencies on physical hardware:

Mobility

Cloning

Scalability (up & down)

Redundancy

Dynamic provisioning

Hardened security model

Utility pricing (“Pay-as-you-go”)

Formal Service Level Agreements

Predictable Quality of Service

Horizontal Infrastructure

Applications

Virtualized Dynamic Infrastructure

Service‐Based Holistic Decision

Virtualization‐Aware NetworkVirtualization‐Aware

Unified Fabric

ServersVirtualized

Storage


Cost savings, economic uncertainty, and the CFO Security and regulatory requirements Accelerated time to delivery Elastic resources & scalability NEW apps vs. legacy apps


17

11.8 million servers in data centers

Servers are used at only 15% of their capacity

800 billion dollars spent yearly on purchasing and maintaining enterprise software

80% of enterprise software expenditure is on installation and maintenance ofsoftware

Data centers typically consume up to 100 times more per square foot than atypical office building

Average power consumption per server quadrupled from 2001 to 2006.

Number of servers doubled from 2001 to 2006


18

Standard 9000 square foot costs $21.3 million to build with

$1 million in electricity costs/year

Data centers consume 1.5% of our Nation’s electricity,

doubling every 5 years.

Green technologies can reduce energy costs by 50%

IT produces 2% of global carbon dioxide emissions


Applications

Upgrade Expense

Large Capital Expense &

High Risk

Automated Upgrades

Value

Time

Cloud Computing

Average 51% ROI within 12 Months2

53% of software projects cost 189% of original estimate1

Cloud Computing

ValueVa

lue

1 Standish Group, Chaos Report 20062 Third‐Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008

Large Operating Expenses

No Capital

Expenses


Pay-as-you-goCommodity Hardware Infrastructure

Lower Implementation CostsFaster provisioning

On demand scalabilityUtility pricing

No capital investmentFast deployment of sandboxes

Improved Service Levels (99.999%)Simplified billing as expense

Cloud Computing: 40% - 60% Lower TCO

On Premise = Hidden Costs

HardwareConsultantsInfrastructureDedicated Staff

Upgrades

Licenses


Need for on-demand test and development sandboxes

An application that can be virtualized

Servers with cyclical demand for scalability

Email systems

Storage systems

Document management systems

Content management systems

Archive and redundancy servers

Training servers

Demo servers

“Garage” applications21


Identify your business architecture Identify core business capabilities Understand your current technology

architecture Build an application inventory Build infrastructure inventory Identify Total Cost of Ownership (TCO) Generate your strategic options: Infrastructure lifecycle refreshes?

Redundant or duplicate infrastructure?

Infrastructure that can be virtualized?

Commodity systems that can be moved to the cloud?

Any quick wins?

Select your strategies Create a hybrid IT strategy roadmap


23Source: Redpath Consulting Group.Redpath Consulting Group confidential and proprietary 2010

Should you replace every infrastructure component with the cloud? No

Use a big bang strategy? No

Use an incremental phased approach reduce risk? Yes

Can startups can go directly to the cloud? Yes

Does “the cloud” have the same meaning for each cloud vendor? No

Do I have any commodity on premise systems? Probably

Am I paying for capacity that I am not fully utilizing? Yes

Can I use cloud components with my on premise IT? Yes

Can I get similar service levels and quality of service? Yes

Is the cloud secure? Yes


Reduce resistance to change

Address job security fears

Provide training and communicate benefits

Expectation setting

Address perceived loss of control

Educate on security model to reduce concerns

Manage people, process and technology change

Position better use of IT resources

Provide communication plan


You are probably already using cloud services Everyone wants IT to cost less and wants IT when they want IT Let your IT staff focus on innovation instead of infrastructure Get access to enterprise class systems at a reasonable price Are there clouds on your horizon? Yah you betcha….


Free ½ Day Cloud Strategy Mini-Assessment *Redpath Consulting Group will provide an experienced cloud strategy consultant for ½ day to work with your business and IT team to perform anassessment of your current state and identify cloud computing opportunities.

Free Cloud Server for Mini-Assessment - ReliaCloudReliaCloud will provide a $200.00 credit towards creating a cloud server for you try out one of your apps in the cloud.

* For businesses with 25 employees or more. Contact Redpath about your specific situation

