Wisdom Shifts for Enterprise by Kerry Bailey, SVP, HP

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.1

Cloud Factory 2014: Cloud Conventional Wisdom Shifts for Enterprise


Born on the Cloud Businesses

Enterprise IT Follows and Makes Market

After 8 Years of Cloud – Enterprise Adoption 5%, but on the Move

Cloud Market AdoptionAs seen in the shift of IT spend from

Traditional IT purchases to Cloud

Innovators2.5%

100%

75%

50%

25%

0%

Early Adopters

13.5%

Early Majority

34%

Late Majority

34%

Laggards16%

Mark

et

Share

5yr Adoption

Curve

20135%

201840%

• Original cloud conventional wisdom was built on AWS (and others) principles to achieve the “New style of IT”

• Enterprise IT is now “redefining” conventional wisdom based on enterprise needs

• Enterprise IT will make the cloud market as adoption increases materially over next 3 years

• Business Outcomes becomes the driver over the next three years


Enterprise and Commodity Becomes Redefining Cloud Wisdom

• Easily Accessible

• New IT monetization model

• Rapid scalability

• Dictates Sizing & Configuration

• Unpredictable (performance and availability)

• Enterprise Contracts & Defined SLA

• Security & Compliance

• Enterprise Class Customer Care

• Predictable Performance

• Planned Scalability

Cloud Natives Enterprise IT

EnterpriseCommodity


Customer’s perspective after 8 years of “Cloud Computing”

ConsumeBuild

1.

Applications

New

2.

ApplicationsIt’s about application strategies – Business Outcomes

1. Hybrid

Existing

Reality is Enterprise IT lives in a hybrid world

Internal Service Providers

3. 4. “G” Clouds

• Citizen

Engagement

• Trust in

Government

• Costs, Speed,

Agility

• Data sovereignty

• New Private

Cloud• Speed• Agility• Cost effective

• Governance to the public cloud• Skills & maturity

Open Now Matters – Speed to Innovation, Transparency, Standards, Flexibility


Hybrid has emerged as the enterprise model

Cloud Native Enterprise IT

Public Cloud Private Cloud

Hybrid

Gave us speed, agility and new consumption models

Enterprise requirements go beyond the ability of a single delivery model

Navigating the customer cloud journey with theRight

Destination for theRight Application

& Business Outcome


Business Outcomes Define Cloud – The Business Unit and CIO diverge

Business Owners

Markets are Fast

Public Cloud

It’s a Simple Equation

Have business problems

Require fast solutions

Business owners will trade-off almost

anything to move at market speed


Cloud adoption: a new tension between Business & ITBusiness is adopting cloud 2.5x faster than IT1

While CIO’s are concerned about cloud risk79% concerned about vendor lock-in3

75% worried about cloud performance and availability3

70% have security top of mind2

63% prefer integration of cloud services and on-premise services3

Held captive

2.5x faster

CIO’s: Doing nothing is NOT an option anymore. IT organizations are at risk to become less relevant


Internal Service Provider Drives Enterprise – The CIO and Business Unit

Hybrid

Public Cloud

Commodity IT

Variable Workloads

Cloud LandscapeBusiness OwnersHave

business problems

Markets are Fast

Internal Service Provider

Private Cloud

Differentiating IT

Core IT

The Business and IT landscape is more complex than a “Simple Equation”

• Data sovereignty• Budget

constraints• IP protection• Compliance• Governance• Competence• Culture• Agility• Speed

Considerations

Transforming IT organization to agile trusted partner by increasing the velocity of IT


Journey to the new style of IT

20th Century Fox

• Positions IT as they key internal service provider and trusted partner for all LOBs

• IT Delivers agile, scalable, cost-effective, multi-supplier hybrid cloud services environment

• Enables Fox to focus on R&D of applications that drive the business forward

Client outcome

“Our partnership with HP has allowed Fox to better control and manage all traditional and new IT services while driving the company forward by embracing and leveraging new cloud technologies. This is not the death of IT, but rather the emergence of IT as a service broker which is critical for survival and growth in today’s hybrid world. ”

John Herbert, CIO, 20th Century Fox


HP-Singtel G-Cloud Solution for Government of Singapore

Business Need:• Offer fast and secure access to critical IT

functions and resources required to respond to business and citizen demands, delivered as

IaaS and PaaS services in a common G-cloud service catalog

• Connect with citizens to provide superior user experience

Solution Objective:• Standardization of Platform for Govt e-services

• Reduce capex in software Licenses and hardware

Outcome:• Private government cloud for whole-of-

government use where security and governance requirements could not be met by

public clouds.• Pay Per Use, Quick to deploy, no

depreciation of assets

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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Wisdom Shifts for Enterprise by Kerry Bailey, SVP, HP