CHANGING

CHANGING FAST

Minimal Time to Market with Fast IT

Patrick Fischer

Next-Generation IT Practice, Cisco Consulting Services08 May 2014

Source: comScore Mobilens, U.S.; IDC Worldwide Mobile Phone Tracker

2005 2007 2009 20122006 2008 2010 2011

79%

13%

4%

3%

.2%

Smart Phones – From Incumbents to Also Ran

Illustrating the Pace of Change

5

DatabaseMain-frame

Terminal

Database Server Client

Web ISPs PC

Apps / Content

Cloud Mobile

Services Platform Devices

Everything As A Service

Distant Past

Feels like not so long ago

Here now

Still strong

Data

Voice

Video

Search

Social

Big Data

IoE

IBM

Microsoft

Oracle

Cisco

Amazon

AppleFacebook

Twitter

NCR

Nortel

Compaq

Nokia

Kodak

Black-berry

New Model of IT Simple. Smart. Secure.

Business Implications

Growth & Productivity

Opportunities

User Experience & Expectations

New BusinessModels

GlobalizationSecurity & Regulatory Compliance

Technology Transitions

New Breed of AppsMobility/Video Cloud Internet of Things Big Data & Analytics

The Only Constant is Change

Things

Internet ofEverything

People Process

Data

In 2012, more datawas created than in the previous

5000

39 %of the world is connected

billion

connectedthings

13

90 %of business processes

Technology powers

Internet of Everything is here now.

Cisco Confidential 8© 2014 Cisco and/or its affiliates. All rights reserved.

Smart Water (-)

$58MParking Revenue (+)

$50MSmart Lighting (-)

$37M

New Model of IT Simple. Smart. Secure.

Business Implications

Growth & Productivity

Opportunities

User Experience & Expectations

New BusinessModels

GlobalizationSecurity & Regulatory Compliance

Technology Transitions

New Breed of AppsMobility/Video Cloud Internet of Things Big Data & Analytics

The Only Constant is Change

CIOs must drive a step change in efficiency and agility

to shift spend from run to change/grow

10

Accelerate Time to Business Capability (Speed)

Change

Grow

Run

“Becoming a Digital Disruptor”

Grow theBusiness

Run the Business Operations

13%

20%

67%

“Keeping the Lights On” “Reshaping the pyramid” requires a step change in efficiency & agility to:

Drive down RTB cost and free up budget

Accelerate the pace of change/ grow innovation

This must happen in an environment of increasing IT volume, distribution and complexity

Changethe Business

Source: Gartner IT Key Metrics Data for CY2013 (December 2013)

80–90% 10–20% IT Operations Enabling Innovation

1,000s100s10s0s IoE Scale10,000s

Today’s IT Model – Heavy on Operations

No Time or Investment in Anything Else

Simple Difficult Complex & Tedious Impossible

BusinessOpportunity

CEOObjectives

New Business Models Growth Simplicity & Speed

Business conversation Technology conversation

CIOImperative

Innovative

Enterprise

Internet of

EverythingFast IT

The Next Generation of IT

Fast IT can deliver a step-change in agility and efficiency,

enabled by three core IT capabilities

APPLICATION CENTRIC INFRASTRUCTURE

ENABLEMENT

PREDICTIVE

ANALYTICS

DYNAMIC SECURITY &

POLICY MANAGEMENT

Strategy

Actio

n

Inte

lligen

ce

Harvest Business Intelligence

Provide Software-Driven

Agility

Security & Policy

Analytics

Application Centric Resources

Converged Network Data, Voice & Video

Predictive Analytics on

Operations & Security

SOFTWARE DEFINED NETWORK

Architectures, Platforms and

Devices

Fast IT requires foundational architectures that deliver

abstraction, programmability and intelligence

Dynamic Operational & Security Policy Management

Mobile & Social Collaboration

Hybrid Cloud

Data Virtualization

MOBILE & SOCIAL CLOUD

BYODResources

AnalyticsPolicy

1 2

3

ApplicationsApplications

Converged Network

Business Applications

Fog Computing

Architectures, Platforms and

Devices

Sensors & Collectors

Service Integration

Remote Expert

End User Interactions

Private Cloud Public Cloud

Application Centric Infrastructure

Video

Unified Communications Mobile Advisor

Contact Center

Foundational architectures – which touch over half of typical IT

budget areas – can deliver immediate cost and agility benefits

Source: Gartner IT Key Metrics Data (February 2013)

Typical IT spend breakdown

Network

End User &Service Desk

Data Center

App Support

App Dev

Mgt & Admin

15%

19%

18%

22%

16%

11%

Cloud

Mobile & Social

Software Defined Network

Cost reduction Agility/enablement

~15-35% total budget impact to be applied to shift spend mix to innovation, absorb volume growth, reduce cost and self-fund fast IT

Significant benefits in end user productivity, application development & operation, and time to market for new innovations

• 20-40% TCO reduction with each generation of cloud

• Reduced dev/test time on platform provisioning

• Faster TTM for new applications• New capabilities through data

virtualization / fog

• 10-15% TCO reduction through contact center and collaboration optimization and modernization

• Improved user productivity through collaboration (voice, video, messaging)

• Accelerated issue resolution in multi-vendor environments

• 20-40% TCO reduction through network consolidation and lifecycle management

• Enhanced support and enablement of new services (e.g., video)

1

2

3

Doing both to accelerate time to market

Foundational Architecture Acceleration Core Capability Development

Cloud Elastic, Application Centric Infrastructure Enablement

Mobile & Social

Software Defined Network

Pervasive Analytics

Dynamic Security and Policy

• Accelerate transition to hybrid cloud infrastructure

• Modernize collaboration and contact center platforms

• Manage the ongoing lifecycle and roadmap of the network foundation

Cross Architec-ture

• Execute an integrated transformation

• Accelerate the transition of IT to support standardized, programmable services

• Improve business and IT architecture alignment

• Accelerate and increase benefits from collaboration, contact center and IT management via analytics

• Reduce risks through a comprehensive policy-based security strategy

In Summary. Roadmap to Fast IT

17

Create Programmability

Automate &Orchestrate

AutomateThreat Detection

Simple Smart Secure

Bridge Virtual& Physical

Increase Visibility

Build ApplicationCentricity

Profitability/ Efficiency InnovationEmployee

Engagement

46% Morerevenue goals met

47% More on-time launches

Source: The Innovator's Toolbox:Empowering the Next Wave of Difference Makers,

Aberdeen Group, 2009

15X Moresales revenue

6X More effective than homogenous

teams

Source: Research Links Diversity with Increased Sales, Revenues and Profits, Diversity Executive, April 2009

29% Increasewith committed leader

41% Less retention risk

Source: Edward Hubbard, The Business Case for Diversity

Minimal Time to Market Inclusion & Diversity

1