How to utilize cloud in your corporate it strategy

How to Utilize Cloud in

your Corporate IT Strategy

Paul Selway

James Smale

Jason Baker

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Redpath 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 Selway

President

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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

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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

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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

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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

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http://blogs.computerworld.com/data_center_utilization_15_of_11_8_million_is_a_big_number

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?

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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.

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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.

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Standardize

Consolidate

Virtualize

Automate

Self-Service

Centralize

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

Application Silos

Zones of Virtualization

Public Cloud Services

Apps

Servers

Network

Storage

Private Cloud Services

Departmental

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Resource Pooling

Broad Network Access Rapid Elasticity

Measured Service

On Demand Self-Service

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Community

Cloud Private

Cloud Public Cloud

Hybrid Clouds

Deployment

Models

Service

Models

Essential

Characteristics

Common

Characteristics

Software as a

Service (SaaS)

Platform as a

Service (PaaS)

Infrastructure as a

Service (IaaS)

Low Cost Software

Virtualization Service Orientation

Advanced Security

Homogeneity

Massive Scale Resilient Computing

Geographic Distribution


Infrastructure as a Service (IaaS)

• Operating system and storage exposed to user

• Mimics traditional systems architecture

• Supports legacy applications

Platform as a Service (PaaS)

• APIs exposed to user

• Requires porting applications or re-writing from the ground up

• Allows for scaling applications without infrastructure knowledge

Software as a Service (SaaS)

• Web application exposed to user

• Requires uploading of data into application

• No need to code or manage

VISI / ReliaCloud

Amazon EC2

Rackspace Cloud Server

Google App Engine

Microsoft Azure

force.com

Google Apps

Salesforce.com

Intuit

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Private cloud

- Enterprise owned or leased

Community cloud

- Shared by a few organizations

Public 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

Business Need

Virtualization-Aware Network Virtualization-Aware

Unified Fabric

Servers Virtualized

Storage

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Cost savings, economic uncertainty, and the CFO

Security and regulatory requirements

Accelerated time to delivery

Elastic resources & scalability

NEW apps vs. legacy apps

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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 of

software

Data centers typically consume up to 100 times more per square foot than a

typical office building

Average power consumption per server quadrupled from 2001 to 2006.

Number of servers doubled from 2001 to 2006


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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

Val

ue

Time

Cloud Computing

Average 51% ROI within 12 Months2

53% of software projects cost 189% of original estimate1

Cloud Computing Value

Val

ue

1 Standish Group, Chaos Report 2006 2 Third-Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008

Large Operating Expenses

No Capital Expenses

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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

Cloud Computing:

40% - 60%

Lower TCO

On Premise = Hidden Costs

Hardware

Consultants

Infrastructure

Dedicated Staff

Upgrades

Licenses

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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” applications

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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

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23 Source: Redpath Consulting Group.

Capture business

architecture

and business

capabilities

Map technology architecture, application,

infrastructure inventories to

business architecture

Generate and evaluate strategic options and select optimal strategies

Align business strategy with IT

strategy, generate cloud

strategy roadmap


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

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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

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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….

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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.

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.

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

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