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www.hitachiconsulting.com Cloud Application Rationalization The Cloud the Enterprise and Making the Right Decisions for your BusinessGartner Symposium ITXPO, October 24, 2011 Chad M. Lawler, Ph.D.http://www.gartner.com/technology/symposium/orlando/ Director of Consulting Services, Cloud Computing chad.lawler@hitachiconsulting.com © 2011 Hitachi Consulting Corporation Proprietary & Confidential, All Rights Reserved www.hitachiconsulting.com/cloud © Copyright 2011 Hitachi Consulting

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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 © Copyright 2011 Hitachi Consulting 1

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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 © Copyright 2011 Hitachi Consulting 2

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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 © Copyright 2011 Hitachi Consulting 3

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Areas of Concern & Barriers to Cloud Adoption  Security, Availability & Integration  Migration  The top three barriers to cloud adoption and  Application and service transition, integration and migration management  Ability to provide security services in the cloud top concern  Private disparate environments with application fragmentation which require transition  Disruptive & Threatening  Disruption to traditional IT service delivery model  Management  Threatening to existing IT organizations  The cloud is currently mostly self-service where OS and applications are not managed  Engagement  Working with the right level of management and decision makers  Service Levels & Availability  Ability to deploy highly available IT application  Uncertainty services  Imagined insecurity of the cloud  Regulatory Compliance  Service Capability  Regulatory Compliance – Governance processes that  Leverage of the new cloud service delivery model and capabilities enable compliance with regulatory requirements © Copyright 2011 Hitachi Consulting 4

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Cloud Application Rationalization Which Applications? Ideal Candidate Applications Which Cloud? Applications with uncertain demand or inconsistent demand benefit from Public Cloud How Do I Get There? elasticity. Applications that need to be Great for rapid provisioning, massive rapidly provisioned benefit from cloud scale, greater elasticity, and tightly Content Migration technologies. controlled costs Workloads can be moved quickly with Private Cloud / Hosted Cloud minimal business disruption with cloud Ideal Workloads services Best for security concerns, tighter Service likes email, collaboration, and controls, and greatest number of Optimize Your Infrastructure CRM can be the easiest to move to the applications Optimize infrastructure with management, cloud and can provide immediate processes, automation, and virtualization savings Hybrid Cloud Best of both Public and Private though Create Your Cloud Optimized the potential scale could place a burden Applications on the Private Cloud 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 © Copyright 2011 Hitachi Consulting 5

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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? © Copyright 2011 Hitachi Consulting 6

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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 © Copyright 2011 Hitachi Consulting 7

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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 © Copyright 2011 Hitachi Consulting 8

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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 © Copyright 2011 Hitachi Consulting 9

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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 © Copyright 2011 Hitachi Consulting 10

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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 © Copyright 2011 Hitachi Consulting 11

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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 © Copyright 2011 Hitachi Consulting 12

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Cloud Application Assessment & Roadmap Assess & Plan Cloud Use BlueprintGoals: • Cloud Business Use Blueprint• Evaluate Business Cloud Use Options • Cloud Readiness Report• Analyze Cloud Application Potential • Targeted Cloud Applications Plan• Review Business & Financial Impact • Cloud Architecture DesignActivities • Cloud Security Requirements Review• Cloud Readiness Assessment • Cloud Platform Selection & Sourcing Plan• Architecture & Infrastructure Analysis • Business Case with TCO & ROI Reduce Costs, Increase Capabilities•Application, Security & Compliance Analysis Realize the benefits of leveraging cloud• Application Portfolio Rationalization infrastructure within your business for overall cost• Portfolio End-State Architecture Cloud Portfolio Roadmap savings, increased agility and rapid deployment• Platform Selection & Sourcing • Leverage Cloud Infrastructure capabilities.• Business Use Case, Economic Analysis • Cloud use for cost reduction Build Low-Cost, Flexible Cloud Apps • Cloud use for capability improvement Deploy new pay-per-use cloud applications that Cloud Application Starter • Application & infrastructure migration lower TCO and are available any time, anywhere, • Cloud platform integration with rapid scalability to ramp up or down based on • New Cloud Application Development your business demand. • Lower cost cloud service capability • New cloud applications Expand via the Cloud • Cloud re-platform and transition Eable low-cost cloud services by Cloud-enabling • Retirement of legacy systems your software and converting applications to Software as a Services (SaaS). • 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 © Copyright 2011 Hitachi Consulting

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Cloud Consulting ServicesCloud Strategic Advisory Cloud Application 14 Cloud Transition Services Services Development ServicesStrategize Design Design• Goals - Explore & Inform • Goals - Develop New Cloud Apps • Goals – Architect, Pilot & Migrate• Understand cloud services & impacts • New Application Definition • Cloud Architecture Design • New Application Development • Utilization & Performance Benchmark• Discuss potential cloud opportunities • New Application Deployment Transition • Cloud Application & Data Transition• Identify potential business benefits • New Application Testing & Validation • Cloud App & Environment Testing• Review cloud risks • Cloud Application Pilot Cloud Workshop Cloud-Ready Application Cloud Application DeploymentStrategize Implement• Goals - Assess & Plan • Goals -Automate Cloud Control• Readiness, Infra. & App. Assessment • Sourcing Comparison & Automation• Application Portfolio Rationalization • Procurement & Order Management• Portfolio End-State Architecture • Billing, Vendor & Contract Management• Platform Selection & Sourcing • Policy-Based QoS & IaaS Cost Control• Business Use Case, Economic Analysis • Performance Management & Trending Cloud Application Starter Cloud Sourcing & Governance Cloud Assessment & Roadmap © Copyright 2011 Hitachi Consulting

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Cloud Brokerage Services Cloud Integration, Cloud Vendor 15 Cloud Governance & Sourcing, Procurement Management Control Implement Manage Govern• Goals - Source & Implement • Goals - Manage & Simplify • Goals - Govern & Control• Improved Cloud Sourcing Options • Cloud Single Point of Ownership • Improved, Governance & Management• Simplified Procurement & Deployment • Multiple cloud IaaS, PaaS, SaaS solutions • Audit, Request & Approval System• On-Boarding Orchestration • Aggregated single point of ownership • Cloud Resource Planning & Cost Control• Cloud Service Provider Comparison • Single relationship across providers • Infrastructure Performance Management• Procurement, BOM & Order Automation • Contract Management • Cloud Service Demand Trending• Automated Cloud Solution Execution • Single Source Billing Management • Growth Planning & Projection Cloud Sourcing Cloud Management Cloud Governance © Copyright 2011 Hitachi Consulting

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Cloud Service Capabilities Cloud Services Cloud TechnologiesHitachi Consulting provides cloud strategic Hitachi builds and develops technologiesadvisory, management and technology that power the Cloud including servers,consulting, cloud solution architecture, storage, Cloud appliances, automation withapplication development & migration and integration capabilities for existingmanaged services with teams delivering datacenter environments. Hitachi isindustry-focused Cloud solutions in the delivering the technologies supporting thePublic, Private, and Hosted Clouds. next generation of cloud-enabled, virtualized, automated datacenters. Technologies Industry Focused Solutions ServicesHitachi Consulting technologies and services cover Infrastructure, Platform, & Software as a Service solutions across cloud types. © Copyright 2011 Hitachi Consulting

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Benefits of Our Customized Cloud Services for the Enterprise 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  Cut Through the Hype  Accelerate Cloud Migration  Circumvent the marketing hype to leverage real  Simplify and automate processes for cloud capabilities and benefits cloud services deliver with service/platform selection, application development realistic and measurable goals and migration  Reduce Capital Investment  Develop, Transition & Implement Successfully  Assess current applications, infrastructure and sourcing costs to identify potential savings  Redesign and redeploy applications to the cloud with the proven expertise of our Cloud Application Foundry  Enable Strategic Cloud Adoption  With a complete solution, proven engagement  Develop a strategic plan linked to business goals with a methodology and project management expertise prioritized road map to guide cloud migration  Ensure Service Capability  Meet Transformation Requirements  Analyze the current IT environment, identify  With services that are modular, allowing your business capability/innovation needs and integrate these into a to focus on precise areas of need complete cloud solution © Copyright 2011 Hitachi Consulting 17

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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: chad.lawler@hitachiconsulting.com www.hitachiconsulting.com www.cardcloud.com/chadlawler Sign up for a free trial to explore our Cloud Ecosystem Management Platform. Learn More About the Benefits of Hitachi Consulting Cloud Services at www.hitachiconsulting.com/cloud © Copyright 2011 Hitachi Consulting

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© Copyright 2011 Hitachi Consulting