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How to Utilize Cloud in  your Corporate IT Strategy Paul Selway James Smale Jason Baker 1 Redpath Consulting Group confidential and proprietary 2010
    Paul Selway 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 Selway President 2 Redpath Consulting Group confidential and proprietary 2010
James Smale 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 Smale CEO 3 Redpath Consulting Group confidential and proprietary 2010
Jason Baker 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 Baker CTO 4 Redpath Consulting Group confidential and proprietary 2010
About Redpath 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: ,[object Object]
Google
Visi/ReliacloudLet us show you how you can leverage the cloud. www.redpathcg.com 5 Redpath Consulting Group confidential and proprietary 2010
About Visi /ReliaCloud 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 6 Redpath Consulting Group confidential and proprietary 2010
Agenda ,[object Object]
 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? 7 Redpath Consulting Group confidential and proprietary 2010
8 Redpath Consulting Group confidential and proprietary 2010
So What Is Cloud Computing and IaaS? 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.  9 Redpath Consulting Group confidential and proprietary 2010
Cloud Computing 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.  10 Redpath Consulting Group confidential and proprietary 2010
Data Centre Evolution ApplicationSilos Zones ofVirtualization PublicCloud Services PrivateCloud Services Apps Servers Network Storage From silos…to Dynamic Data Center and IT as a service Standardize Virtualize Departmental Self-Service Consolidate Automate Centralize 11 Redpath Consulting Group confidential and proprietary 2010
Cloud Framework Hybrid Clouds Deployment Models Service Models Community Cloud Public Cloud Private Cloud On Demand Self-Service Essential Characteristics Broad Network Access Rapid Elasticity Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Resource Pooling Measured Service Massive Scale Resilient Computing Common  Characteristics Homogeneity Geographic Distribution Virtualization Service Orientation Low Cost Software Advanced Security 12 Redpath Consulting Group confidential and proprietary 2010
Business Models in the Cloud VISI / ReliaCloud Amazon EC2 Rackspace Cloud Server Google App Engine Microsoft Azure force.com Google Apps Salesforce.com Intuit 13 Redpath Consulting Group confidential and proprietary 2010
Cloud Deployment Models Private cloud  - Enterprise owned or leased Hybrid cloud  - Shared by several organizations Community cloud  - Shared by a few organizations Public cloud  - Shared by the general public 14 Redpath Consulting Group confidential and proprietary 2010
Business Need Virtualized Storage Servers Virtualization-Aware Unified Fabric Abstraction is the key to IaaS Horizontal Infrastructure ,[object Object],   on physical hardware: ,[object Object]
Cloning
Scalability (up & down)
Redundancy
Dynamic provisioning
Hardened security model

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How to utilize cloud in your corporate IT strategy

  • 1. How to Utilize Cloud in your Corporate IT Strategy Paul Selway James Smale Jason Baker 1 Redpath Consulting Group confidential and proprietary 2010
  • 2. Paul Selway 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 Selway President 2 Redpath Consulting Group confidential and proprietary 2010
  • 3. James Smale 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 Smale CEO 3 Redpath Consulting Group confidential and proprietary 2010
  • 4. Jason Baker 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 Baker CTO 4 Redpath Consulting Group confidential and proprietary 2010
  • 5.
  • 7. Visi/ReliacloudLet us show you how you can leverage the cloud. www.redpathcg.com 5 Redpath Consulting Group confidential and proprietary 2010
  • 8. About Visi /ReliaCloud 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 6 Redpath Consulting Group confidential and proprietary 2010
  • 9.
  • 10. What should be considered for an IaaS ROI?
  • 11. What makes an IT Infrastructure component a good candidate for IaaS?
  • 12. How can an assessment help identify cloud IaaS opportunities?
  • 13. What about the organizational change management challenge?
  • 14. How do you build a hybrid IT Strategy that includes cloud components?
  • 15. How can you create a compelling business case to justify cloud components in your IT Strategy? 7 Redpath Consulting Group confidential and proprietary 2010
  • 16. 8 Redpath Consulting Group confidential and proprietary 2010
  • 17. So What Is Cloud Computing and IaaS? 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. 9 Redpath Consulting Group confidential and proprietary 2010
  • 18. Cloud Computing 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. 10 Redpath Consulting Group confidential and proprietary 2010
  • 19. Data Centre Evolution ApplicationSilos Zones ofVirtualization PublicCloud Services PrivateCloud Services Apps Servers Network Storage From silos…to Dynamic Data Center and IT as a service Standardize Virtualize Departmental Self-Service Consolidate Automate Centralize 11 Redpath Consulting Group confidential and proprietary 2010
  • 20. Cloud Framework Hybrid Clouds Deployment Models Service Models Community Cloud Public Cloud Private Cloud On Demand Self-Service Essential Characteristics Broad Network Access Rapid Elasticity Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Resource Pooling Measured Service Massive Scale Resilient Computing Common Characteristics Homogeneity Geographic Distribution Virtualization Service Orientation Low Cost Software Advanced Security 12 Redpath Consulting Group confidential and proprietary 2010
  • 21. Business Models in the Cloud VISI / ReliaCloud Amazon EC2 Rackspace Cloud Server Google App Engine Microsoft Azure force.com Google Apps Salesforce.com Intuit 13 Redpath Consulting Group confidential and proprietary 2010
  • 22. Cloud Deployment Models Private cloud - Enterprise owned or leased Hybrid cloud - Shared by several organizations Community cloud - Shared by a few organizations Public cloud - Shared by the general public 14 Redpath Consulting Group confidential and proprietary 2010
  • 23.
  • 30. Formal Service Level Agreements
  • 31. Predictable Quality of Service Applications Virtualization-Aware Network Virtualized Dynamic Infrastructure Service-Based Holistic Decision 15 Redpath Consulting Group confidential and proprietary 2010
  • 32.
  • 33. Security and regulatory requirements
  • 34. Accelerated time to delivery
  • 35. Elastic resources & scalability
  • 36. NEW apps vs. legacy apps16 Redpath Consulting Group confidential and proprietary 2010
  • 37.
  • 38. Servers are used at only 15% of their capacity
  • 39.
  • 40. Number of servers doubled from 2001 to 200617 Redpath Consulting Group confidential and proprietary 2010
  • 41.
  • 42. IT produces 2% of global carbon dioxide emissions18 Redpath Consulting Group confidential and proprietary 2010
  • 43. Faster Time to Value Cloud Computing Applications Automated Upgrades Large Operating Expenses Cloud Computing Value Value Value Time No Capital Expenses Upgrade Expense Large Capital Expense & High Risk Average 51% ROI within 12 Months2 53% of software projects cost 189% of original estimate1 1 Standish Group, Chaos Report 2006 2 Third-Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008 19 Redpath Consulting Group confidential and proprietary 2010
  • 44. IaaS ROI On Premise = Hidden Costs Cloud Computing: 40% - 60% Lower TCO Licenses Hardware Consultants Infrastructure Dedicated Staff Upgrades Pay-as-you-go Commodity Hardware Infrastructure Lower Implementation Costs Faster provisioning On demand scalability Utility pricing No capital investment Fast deployment of sandboxes Improved Service Levels (99.999%) Simplified billing as expense 20 Redpath Consulting Group confidential and proprietary 2010
  • 45.
  • 46. An application that can be virtualized
  • 47. Servers with cyclical demand for scalability
  • 52. Archive and redundancy servers
  • 55. “Garage” applications21 Redpath Consulting Group confidential and proprietary 2010
  • 56.
  • 57. Identify core business capabilities
  • 58.
  • 60. Identify Total Cost of Ownership (TCO)
  • 61. Generate your strategic options:
  • 63. Redundant or duplicate infrastructure?
  • 64. Infrastructure that can be virtualized?
  • 65. Commodity systems that can be moved to the cloud?
  • 66. Any quick wins?
  • 67. Select your strategies
  • 68. Create a hybrid IT strategy roadmap22 Redpath Consulting Group confidential and proprietary 2010
  • 69. The Hybrid Cloud Assessment 23 Source: Redpath Consulting Group. Redpath Consulting Group confidential and proprietary 2010
  • 70.
  • 71. Use a big bang strategy? No
  • 72. Use an incremental phased approach reduce risk? Yes
  • 73. Can startups can go directly to the cloud? Yes
  • 74. Does “the cloud” have the same meaning for each cloud vendor? No
  • 75. Do I have any commodity on premise systems? Probably
  • 76. Am I paying for capacity that I am not fully utilizing? Yes
  • 77. Can I use cloud components with my on premise IT? Yes
  • 78. Can I get similar service levels and quality of service? Yes
  • 79. Is the cloud secure? Yes24 Redpath Consulting Group confidential and proprietary 2010
  • 80.
  • 81. Address job security fears
  • 82. Provide training and communicate benefits
  • 84. Address perceived loss of control
  • 85. Educate on security model to reduce concerns
  • 86. Manage people, process and technology change
  • 87. Position better use of IT resources
  • 88. Provide communication plan25 Redpath Consulting Group confidential and proprietary 2010
  • 89.
  • 90. Everyone wants IT to cost less and wants IT when they want IT
  • 91. Let your IT staff focus on innovation instead of infrastructure
  • 92. Get access to enterprise class systems at a reasonable price
  • 93. Are there clouds on your horizon? Yah you betcha….26 Redpath Consulting Group confidential and proprietary 2010
  • 94. Promos 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 an assessment of your current state and identify cloud computing opportunities. * For businesses with 25 employees or more. Contact Redpath about your specific situation Free Cloud Server for Mini-Assessment - ReliaCloud ReliaCloud will provide a $200.00 credit towards creating a cloud server for you try out one of your apps in the cloud. 27 Redpath Consulting Group confidential and proprietary 2010
  • 95. 28 Redpath Consulting Group confidential and proprietary 2010

Notas do Editor

  1. Source : NIST
  2. Source: NIST
  3. Assess your current state business architectureDetermine what applications enable which business architecture domainsMap out the supporting infrastructure for these applicationsDocument preferred business architectureGenerate strategic options (look for cloud opportunities)Perform a cost benefit analysis (CBA)Select and implement best strategies