Enterprise Cloud Forum: Adopting a Service Provider Mentality
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Enterprise Cloud Forum: Adopting a Service Provider Mentality
- 1. Enterprise Cloud Forum: “Adopting a Service Provider Mentality & Empowering a Self-Service Organization” Presented By: Rackspace Advisory Services Enterprise Cloud Solutions Group
- 2. Your Hosts Lisa Larson Anand Bhadouria Steve Mills Vice President Sr. IT Strategist CIO Enterprise Cloud Solutions Enterprise Cloud Solutions Rackspace Hosting Rackspace Hosting Rackspace Hosting Lisa.Larson@rackspace.com Anand.Bhadouria@rackspace.com Smills@rackspace.com RACKSPACE® HOSTING | WWW.RACKSPACE.COM 2
- 3. What We Will Cover Today Current State of Enterprise IT Dangers of the Status Quo Importance of embracing a Service Provider Mentality Empowering a Self-Service Organization Transforming the Business of IT RACKSPACE® HOSTING | WWW.RACKSPACE.COM 3
- 4. IT Today: The Challenge Demand for IT services exceeds supply The business expects near instantaneous delivery Recruiting and retaining talent is problematic IT is capital intensive Managing increasingly complex environments is difficult Need for flexibility to accommodate high speed, changing business conditions RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 5. The CONSUMERIZATION of IT Instant CPU… Instant Storage… Instant Provisioning… Instant Gratification! • BYOD “I DON’T CARE HOW… I WANT IT NOW!” • Mobile • DIY Cloud RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 6. 43% of IT Decision Makers know they have Shadow IT in their organization. Business units are leveraging cloud computing to help with work projects. 38% of IT Decision Makers said the main reason is to save time One in three said it was because internal solutions were not available or because they did not want to deal with the IT department. RACKSPACE® HOSTING | WWW.RACKSPACE.COM Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012), conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud
- 7. What is Shadow IT? We need… SPEED, AGILITY & FLEXIBILITY Service Provider Business Unit WE CAN’T HELP YOU 80% of our IT spend & resources are devoted to “keeping the lights on” Internal IT Department RACKSPACE® HOSTING | WWW.RACKSPACE.COM 7
- 8. Polling Question: Do you have SHADOW IT in your ORGANIZATION? •YES •NO •I Don’t Know 8
- 9. The Dangers of Shadow IT Unofficial Use of Weakened Spending Cloud Control • Loss of Control/Governance • Lack of Negotiated Terms • Security Breaches • Diminished Liabilities Control • Compliance Penalties • Misclassification of Spend • Lost Revenue • Profit Erosion • Brand Deterioration • Spend Ignorance • Loss of Business IP • Vendor Lock-in RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 10. IT Management Response to Shadow IT BAN the Cloud Use Existing Approval Procedures for Spending Control Keeping the Status Quo RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 11. The Path of Status Quo IT Dept. Overwhelmed by demand IT BUs follow path of least CMO takes over IT resistance spend Struggling to meet business needs BUs Leverage Service IT no longer brings Providers to solve value to the org 80% of time dedicated to business needs keeping lights on Downsizing ensues IT Strategy is no longer just project/architecture based. Strategy must be built around providing RACKSPACE® HOSTING | WWW.RACKSPACE.COM 11 value to the biz!
- 12. Polling Question: How do you address Shadow IT in your org? • Ban the Cloud: Stamp out Shadow IT • Use current controls for all cloud spending • Embrace Shadow IT as a tool for innovation 12
- 13. To Adopt Cloud the RIGHT WAY, the Business of IT needs to TRANSFORM 13
- 14. A New Way of Thinking Virtualization is a TECHNOLOGY … Cloud Computing is a BUSINESS MODEL RACKSPACE® HOSTING | WWW.RACKSPACE.COM 14
- 15. Shadow IT can be IT’s Best Friend • Empowers a self-service organization • Spurs Innovation & adds more projects to the Project Funnel • Provides strong POC environments to vet viability for potential CAPEX spend • Frees IT Resources… Allowing IT to focus efforts where they provide value … in the APPS RACKSPACE® HOSTING | WWW.RACKSPACE.COM 15
- 16. Filling the Innovation Funnel Experiment More by Removing the CAPEX Blockade • Lower Approval Threshold • Eliminate Missed Opportunity • Lower Barrier to Entry How Many Projects Have You Killed Because You Couldn’t Justify CAPEX Spend? RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 17. Creating a Safe Self-Service Organization To leverage the benefits of Shadow IT…. It is imperative to establish appropriate guardrails for your business. Embrace Shadow IT & Create New Procedures for Spending Control BUILD A SERVICE CATALOG RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 18. What is a Services Catalog? Simple Approved Robust User Portal Vendor List COMPLEXITY RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 19. How Does a Service Catalog Work? Internal IT Service Provider Business Unit Department TOGETHER, WE CAN Service HELP YOU! Catalog RACKSPACE® HOSTING | WWW.RACKSPACE.COM 19
- 20. How do you build a Service Catalog? • Catalog Business • Design & Build Workloads/Needs Standard Cloud – BYOD Configurations – Corporate websites – Set governance – Marketing campaigns – Control security & compliance – E-commerce sites – Data Protection – SaaS – Application Integration – Rich Media – Other “… empower a self-service organization!” RACKSPACE® HOSTING | WWW.RACKSPACE.COM 20
- 21. IT The Path of Transforming the Business of IT IT Dept. Adopting a Service Partner to the Provider Mentality Business Overwhelmed by Create a service catalog by CIO becomes an Advisor to demand partnering w/ a Service Provider the Business Struggling to meet Empower a self-service IT is working on game- business needs organization changing, strategic 80% of time dedicated Create an army of innovators initiatives to keeping lights on Free IT Resources to focus on Demands of the Business providing value are met RACKSPACE® HOSTING | WWW.RACKSPACE.COM 21
- 22. Are you Prepared to Transform the Business of IT? RACKSPACE® HOSTING | WWW.RACKSPACE.COM 22
- 23. What Covered Today Current State of Enterprise IT Dangers of the Status Quo Importance of embracing a Service Provider Mentality Empowering a Self-Service Organization Transforming the Business of IT RACKSPACE® HOSTING | WWW.RACKSPACE.COM 23
- 24. Cloud Application Transformation Framework Creating Your Seamless Journey to the Cloud “Cloud HOW?” Taking Enterprises from… “Cloud NOW” Customer Data Center IT Application Cloud Solution Migration Environment Evolution Profiling Readiness Design Execution Realization Workshop Workshop Assessment Strategize & Migrate Support Design Assess Implement Optimize RACKSPACE® HOSTING | WWW.RACKSPACE.COM 24
- 25. Get SMART on Cloud Rackspace Advisory Services: Recommended Rackspace Resources: • Cloud: Vision to Reality whitepaper (right side of page) Phone: 1-800-440-1249 • Cloud: Economics whitepaper (right side of page) Email: advisory_services@rackspace.com • Take the Cloud Readiness Self Assessment Website: rackspace.com/Advisory Services • Use cases: – Hybrid Hosting: Dominos Pizza and watch the video Recommended Industry Resources: – RackConnect™: VEVO and watch the video – Private Cloud: Lighthouse1 • The Big Switch, Nicholas Carr • Cloudonomics: The Business Value of Cloud Computing, Joe Weinman Rackspace • www.Cloudability.com Knowledge • http://gigaom.com/ Center • www.gartner.com “Our goal is to create the • www.forrester.com most CLOUD SAVVY • www.idc.com customers in the industry” RACKSPACE® HOSTING | WWW.RACKSPACE.COM 25
- 26. Q&A RACKSPACE® HOSTING | WWW.RACKSPACE.COM
- 27. THANK YOU Rackspace Advisory Services Phone: 1-800-440-1249 Email : advisory_services@rackspace.com Website: rackspace.com/AdvisoryServices 27
Editor's Notes
- This is what we are going to cover today. Please feel free to ask questions throughout – we would like to ensure that this session is valuable for all participants.
- Here are the main challenges that Enterprise IT deals with today.Steve Mills to validate
- Your end users want technology fast and they want it now. Their expectations for speed of delivery of applications have been altered due to the proliferation of mobile devices and applications. Not only that, but the way your company does business in the digital age has changed. Your customers are browsing your website, place an order via a mobile app, and check status all via technology, this is putting an extra burden on you to deliver IT.Your end users have easy access to cloud. They are free to spin up their own service – because they can! All it takes is a credit card and they are up and running in the cloud.
- What does this lead your users to do? Create shadow IT.Not all shadow IT is a bad thing. Having your end users find SaaS solutions such as Salesforce, Workday or Qlikview to meet their increasing demands on IT helps the CIO focus IT resources on the business of IT. At Rackspace, our own CIO, Steve Mills has encouraged Shadow IT within reason. As long as the apps meet compliance and security requirements – Steve says GO FOR IT! Now, instead of having an IT team of 15 people supporting these apps, he has an army of 4500 Rackers supporting themselves.Let’s define shadow ITNote: Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012), conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud computing
- IT struggles with meeting the increasing demands of business units – speed, flexibility, agility. Business units are circumventing IT completely and are going rogue.From our experience working with 60% of the F100, I know this because many of them are customers of Rackspace
- Unsanctioned use of the cloud can lead to a few dangers.Some of the potential dangers of shadow IT:Governance, security, controls which could lead to revenue loss, loss of business IP, and brand deteriorationFrom a cost standpoint:Lack of negotiated terms and feesHigher costs to the company overall
- IT can panic and BAN the Cloud which is impracticalUse Existing and likely outdated Approval Processesfor Spending Control – but that takes away the speed, agility and flexibility of the cloud
- Fear of change and restricted resources keeps IT drawn to the path of least resistance – “the known”. “Let’s keep doing what we’ve always done …. It has worked for us so far”
- Enterprise Misstep #1: treating cloud computing like a technology. When adopting cloud, enterprises need to be prepared to shift their thinking and understand that CLOUD is a new business model. To truly take advantage of cloud computing, your IT organization has to transform… and most importantly, the way you deliver IT services to your end users must change. Yes, believe it or not …there is a right and wrong way to adopt cloud. Adopting a Service Provider Mentality and Empowering a Self-Service OrganizationThe importance of IT meeting the demands of the businessHow to protect from the dangers of Shadow IT and leverage its benefits How to create an army of empowered employees How to approach Service Catalog Development How IT can drive business value back into the organization through the apps Be prepared to change the way you think of the business of IT!
- The first shift in thinking is that the leap from virtualization to cloud computing is a shift not only in technology but in a wholesale shift in IT as a business model.To truly take advantage of the cloud, your IT organization has to transform. Everything from how you provision, procure, manage and run the business of IT will need to be revamped. And most importantly the way you deliver IT services to your end users will change.
- Early phases of creating an application is the uncertainty associated with it. Will it be successful at all? Will it grow gradually? Might it experience skyrocketing adoption? Traditionally, the time to obtain all approvals a capital expenditure requires a forecast in a period of uncertainty. Your organization is making a bet on the success of that product or service before knowing what the payoff might be. There are only so many capex dollars available leading to an above/below the line decision making processIf you remove the CAPEX investment barrier, your developers and business units can experiment more freely with ideas and kill them if they don’t turn out to be viableOpportunity Cost: Time spent provisioning no longer causes missed opportunity. Everyone gets what they need when they need it. No trade offs 1 project for another.SecuringCAPEX dollars and approvals is no longer a barrier to entryHow Many Viable Projects Have You Killed Because You Couldn’t Validate CAPEX Spend?
- The last option is to embrace the change, adapt to the new business of IT and create new procedures for Spending Control You are CREATING A SERVICE CATALOG
- What is a service catalog. This is derived from ITIL service management. Be as simple as an approved vendor list where Central IT has negotiated pricing terms and the vendor or Service Provider understands your companies security & compliance requirementsOr it could be as sophisticated as a portal where users in your organization can immediately spin up pre-defined/approved configurations. This would bill directly to their cost center and is the self-service automated tool!
- Building a service catalog starts with working with a service provider who can provide IT resources FAST!You create preconfigured cloud solutions meeting the security and governance requirements of your business.When the business unit comes to IT for services – you have a solution for them via the selected service provider and service catalog.
- Step 1:Catalog common workloads and use cases for utilizing cloud technology?Step 2: work with the service provider to design and build standard cloud configurations.Everyone’s happy!