Enterprise Open Cloud Forum: Restructuring IT For Profit in a Cloud World

Enterprise Cloud Forum:

“Restructuring Your IT Organization to Become a Profit Center in a Cloud World”

Presented By:

Rackspace Advisory Services

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Your Hosts

2

Matt Monteleone

Sr. IT Strategist

Enterprise Cloud Solutions

Rackspace Hosting

[email protected]

Rich Murr

Vice President

Rackspace IT Operations

Rackspace Hosting

[email protected]

mailto:[email protected]

mailto:[email protected]


What We Will Cover Today

3

Current State of IT Organizations

Identification of Necessary Skills in a Cloud

World

Emerging IT Roles

How IT Drives Value for the Greater Organization


A New Way of Thinking

4

Virtualization is a TECHNOLOGY …

Cloud Computing is a

BUSINESS MODEL

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ERVICE Provider Mentality

LLOCATE Resources

OI Maximization

ANDATE for DEV/OPS

AKE Control

The S.M.A.R.T. Cloud Approach

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Rackspace IT: Drive to the Open Cloud

TEACHING IT HOW TO BECOME A SERVICE PROVIDER

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

IT is juggling Legacy and New

App Development


IT

We are Learning to Become a Service Provider to Our Business

7

Overwhelmed by

demand

Struggling to meet

business needs

80% of time dedicated

to keeping lights on

Create a service catalog by

partnering w/ a Service Provider

Empower a self-service

organization

Create an army of innovators

Free IT Resources to focus on

providing value

CIO becomes an Advisor

to the Business

IT is working on game-

changing, strategic

initiatives

Demands of the Business

are met

IT Dept. Partner to the

Business

Adopting a Service

Provider Mentality


Focus on Core Competencies

8

A+

COLA

GAS

OIL

MAINTENANCE

VS.

DELIVERY


Focus on Your Core Business

9

Where Does IT Provide True Business Value?

IT’S ALL IN THE APPS

Service Provider

Off Load CAPEX

Investment Risk

Ongoing Power,

Labor & Cooling

With 1000s of deployments …

every matters!

Building,

Operating &

Maintaining

Your Data Center

http://en.wikipedia.org/wiki/File:2010_cent_obverse.png


Early Identification

10

“Identify what skills your

organization will need to

foster in a Cloud World…”


1

1

Sys.

Admins

Network

Admins

Deployment

Engineers

Back-up

Admins

Storage

Engineers

Security

Admins

Today’s IT Operations

Procurement

NOC

Asset

Management

Compliance

Help Desk Database

Support

DR/BC

App

Monitoring

Team

Virtualization Team

Physical Data Center Facility

Maintenance


What Does this Mean for the Structure of the Rackspace IT Department?

12

NEW WORLD IT OLD WORLD IT VS.

DEEP

TECHNOLOGY

SPECIALISTS

BUSINESS SAVVY

SPECIALISTS

LEANER LAYER OF

TECHNOLOGISTS

http://www.google.com/url?sa=i&rct=j&q=factory&source=images&cd=&cad=rja&docid=YV6MVAQDOq3SpM&tbnid=9KBiYV_ngYlJrM:&ved=0CAUQjRw&url=http://smokles.wordpress.com/2010/10/05/stanford-raises-the-bar-on-useless-tobacco-research/&ei=P700UaysIePw2QWm3YGoBA&bvm=bv.43148975,d.aWc&psig=AFQjCNGFnGMwnY0si-o608ZoH4qxs35zTg&ust=1362497197761166

http://www.google.com/url?sa=i&rct=j&q=cloud&source=images&cd=&cad=rja&docid=G65fg-wf1QF8MM&tbnid=-yEm9sbIjcGX3M:&ved=0CAUQjRw&url=http://www.urgentfiles.com/2013/01/km-player-download.html&ei=eL00UafoDcLQ2wXRuYGQDQ&bvm=bv.43148975,d.aWc&psig=AFQjCNEj__ZSO41KC4IGZi-CzAUZqPDdcQ&ust=1362497239775904


IT Organization: Pre-Cloud

13

DC Facilities

Storage

Server

Network Security

Business Analyst

Developers

Leadership


IT Organization: In a Cloud World

14

DC Facilities

Storage

Server

Network Security

Business Analyst

Developers

Leadership

Moves to

Cloud

http://www.google.com/url?sa=i&rct=j&q=cloud&source=images&cd=&cad=rja&docid=ysbwugzMNl4B7M&tbnid=1KFWt7wWUu1t7M:&ved=0CAUQjRw&url=http://www.gsx.com/blog/bid/74207/The-Cloud-for-Messaging-Administrators&ei=QfQ0UYaGAsWg2QWX4YD4Cg&bvm=bv.43148975,d.b2I&psig=AFQjCNGfxrPiSdkoW17GP5RWNlQU0hpbMQ&ust=1362511286079431



15

DC Facilities

Storage

Server

Network Security

Business Analyst: Bigger Role

DevOps Model: Developers & Operations

Leadership

Cloud

SaaS

Vendor

Management

Major Areas of Change




16

DC Facilities

Storage

Server

Network Security

Business Analyst

Developers

Leadership

Build a

DevOps

Model

• Scripting

• Configuration

Management

• Automation

…still relevant

in the cloud


Tools for Success

17

http://www.google.com/url?sa=i&rct=j&q=toolbox&source=images&cd=&cad=rja&docid=Z4lpC1OQi0TXVM&tbnid=pNnwDOhqhw86sM:&ved=0CAUQjRw&url=http://blog.e1evation.com/2012/07/05/65-key-resources-for-running-and-growing-your-business/toolbox-primary/&ei=Swg1UYvpO8fg2QWDvIGABw&bvm=bv.43148975,d.b2I&psig=AFQjCNEjL2ielRGcC2jaWfyDK8JPKRoh8w&ust=1362516422657047

http://www.google.com/url?sa=i&rct=j&q=git+logo&source=images&cd=&cad=rja&docid=260DxbtXCIZquM&tbnid=HpLlWU_xL2KaWM:&ved=0CAUQjRw&url=http://git-scm.com/downloads/logos&ei=jww1UcOeD6PI2AWQ8IC4CA&bvm=bv.43148975,d.b2I&psig=AFQjCNHHtviRheN9fxIbhmgGUI0N8WwD_w&ust=1362517504757996

http://www.google.com/url?sa=i&rct=j&q=new+relic+logo&source=images&cd=&cad=rja&docid=q-C0RZYJSNLAfM&tbnid=VifPDEduPm_hKM:&ved=0CAUQjRw&url=http://www.burnsidedigital.com/partners&ei=AQ01Uf6WEISv2QXQtoDABw&bvm=bv.43148975,d.b2I&psig=AFQjCNEz2RyYAXlcjuk9EStE2J32xkRMug&ust=1362517619107682

http://www.google.com/url?sa=i&rct=j&q=Netcat+logo&source=images&cd=&cad=rja&docid=OH9qx5TOVcaSsM&tbnid=uRP3qBPFjeTRmM:&ved=0CAUQjRw&url=http://netcatcms.ru/netcat-4-6/&ei=0yI1Ue6vGOyA2QXUg4HoDA&bvm=bv.43148975,d.aWM&psig=AFQjCNGOfGTB8HBzjPfaKIRr5qJq0_Oa1g&ust=1362523209410141

http://www.google.com/url?sa=i&rct=j&q=Stunnel+logo&source=images&cd=&cad=rja&docid=iBisXT4N68zwhM&tbnid=GCilaPVAekEzQM:&ved=0CAUQjRw&url=http://www.gaztronics.net/rc/stunnel.php&ei=RCQ1UYz0KKeO2AXZ3oCwDA&bvm=bv.43148975,d.aWM&psig=AFQjCNH_GwmGZbf1sqynYMBsPMug7R3j9Q&ust=1362523581142344

http://www.google.com/url?sa=i&rct=j&q=Tcpdump+logo&source=images&cd=&cad=rja&docid=0SQK_fWhS-9klM&tbnid=8HyLIYmLjvF9JM:&ved=0CAUQjRw&url=http://www.qosient.com/argus/filters.shtml&ei=eSQ1UZKUHsji2QW0hoHoBQ&bvm=bv.43148975,d.aWM&psig=AFQjCNG5PQMCXSOUp8uiCQJupeM59dPIyA&ust=1362523635793393

http://www.google.com/url?sa=i&rct=j&q=Enstratus+logo&source=images&cd=&cad=rja&docid=VK8r8uUAtTAubM&tbnid=b_zZvie_HPeMCM:&ved=0CAUQjRw&url=http://www.prweb.com/releases/2010/10/prweb4607374.htm&ei=vSQ1UaCwHaKi2wW1m4CIDQ&bvm=bv.43148975,d.aWc&psig=AFQjCNGDVS-gmUMyoLXnudkea5G6L3oUkQ&ust=1362523704910132

http://www.google.com/url?sa=i&rct=j&q=Nagios+logo&source=images&cd=&cad=rja&docid=VGqEf7uhpTbPgM&tbnid=RH_Bz7KYl5-htM:&ved=0CAUQjRw&url=http://www.telnet2005.hu/rendszerfelugyelet.php&ei=8iQ1UZPgHsjs2AW0uYDQDA&bvm=bv.43148975,d.aWc&psig=AFQjCNEr_w4kCJHV8c18wd7e_nTC2p_g4g&ust=1362523758492839

http://www.google.com/url?sa=i&rct=j&q=hudson+logo&source=images&cd=&cad=rja&docid=2u8MSXTLtWoWBM&tbnid=2WRp8oZbJGITrM:&ved=0CAUQjRw&url=http://wiki.hudson-ci.org/display/HUDSON/Logo&ei=hzc2UaSIBKKW2QWD-YHgDw&psig=AFQjCNGcHPPh5vES1aupanurfDAwb3iQcw&ust=1362594041201666



18

DC Facilities

Storage

Server

Network Security

Business Analyst: Bigger Role

DevOps Model: Developers & Operations

Leadership

Cloud

SaaS

THE BUSINESS

ANALYST:

Leaders of the New

Cross-Functional Team

• Embedded with biz units

• Translating business

requirements to IT speak

• Consultants to the business

Ability to articulate true

business need




19

DC Facilities

Storage

Server

Network Security

Business Analyst

Developers

Vendor Managers Leadership


The Role of the Vendor Manager

20

• Two Main Types of Vendors:

– SaaS Providers

• Application focused expertise required

– Cloud Providers

• Infrastructure focused expertise required

• SLA analysis and negotiation

• Multi-vendor management

• Will need to be able to vet vendors against the needs of the business:

– Performance & Availability

– Security

– Cost

– Features

– Support

Who will evolve into your

vendor managers?

Previous IT Infrastructure Managers

“This experience gives them the

technology context necessary to build

effective vendor management skills.”

http://www.google.com/url?sa=i&rct=j&q=negotiation&source=images&cd=&cad=rja&docid=Q_pjoAMSOd8blM&tbnid=GghAWW7W2cfsQM:&ved=0CAUQjRw&url=http://booksinbalance.net/2009/09/the-art-of-negotiation/&ei=7cA0UcfQDurk2QXMqYG4DQ&bvm=bv.43148975,d.aWc&psig=AFQjCNGsTn4Dzkd-4tKOZQLRT3214MipAA&ust=1362498107049385


New Roles Emerge in a Cloud World

21

“We aren’t just repurposing

talent…

Cloud adoption brings new

capabilities to IT.”

http://www.google.com/url?sa=i&rct=j&q=emerging&source=images&cd=&cad=rja&docid=393p9wsPgKS8gM&tbnid=I1hinCixLS9FWM:&ved=0CAUQjRw&url=http://www.moodysanalytics.com/emergingmarkets2011&ei=q0E2UfDsDanE2gWu0YFI&bvm=bv.43148975,d.b2I&psig=AFQjCNETMBVr8v7__yzdWi1-7d95-C5mbw&ust=1362596637996805


BIG DATA Skill Requirements

22


The Data Scientist “The Sexiest Job of the 21

st Century”

1

Skill set:

Data Acquisition

Analysis

Visualization

23

Delivering key customer insights from Big Data:

Who are our customers?

Why do they buy from us?

How can we get greater share of wallet?

How can we increase purchase frequency?

Source: Thomas H. Davenport and D. J. Patil, “Data Scientist: The Sexiest

Job of the 21st Century,” Harvard Business Review, October 2012

“A hybrid of Analyst, Communicator & Trusted Advisor”1


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

A Decade of Digital Universe Growth

2005 2010 2015

130

1227

7910

Source: IDC/EMC Digital Universe Infographic, 2011

EXABYTES

544%

growth

4.4 M needed

1.4 Million

Jobs Filled

Competition for the Data Scientist is FIERCE

3 Million short by

2015


Matt’s Top Predictions

25

Most Sought After Hire in IT….

The Future

of IT

Cloud-Biz-Ologist

• Gets your business

• Understands how to apply cloud to

meet business needs

• Can articulate technical & business

requirements

• Can recommend “Best Fit” Solutions


Successful Evolution

26

“How to make your

organization aware that IT is

their most valuable

resource…”


IT Becomes Marketers

27

Building Brand Equity is

Essential for IT

• Organizational Awareness

• Reporting on Value

http://www.google.com/url?sa=i&rct=j&q=brand+equity+&source=images&cd=&cad=rja&docid=yhtAy2A7OlbRvM&tbnid=r6IVIi0uVMvCZM:&ved=0CAUQjRw&url=http://branddrishti.blogspot.com/2012/11/beyond-figures-brand-equity.html&ei=59k0Ud2TNIfY2QX7g4C4Cg&bvm=bv.43148975,d.b2I&psig=AFQjCNGSCcZmKrgvom6OELiIGZglw-dlnQ&ust=1362504538310951


Putting It All Together Path to IT Department Success in a Cloud World

28

YEAR 1 YEAR 2 YEAR 3

EDUCATE Get SMART on Cloud

IMPLEMENT Cloud Business Model

REFINE Strategy

Cloud is Now Default

Platform

BUILD Your Strategic Plan • Cloud goals of the company

(business case)

• Identify skills needed to support

goals

• Organizational alignment to plan

BUILD New Teams • Vendor Management

• Pilot teams become Pros

(internal consultants)

• Cross-functional teams across

business

BUILD Additional Metrics • Team efficiency

• Continuous Delivery

• Continued skill refinement

• ROI models – IT input

TEST PROVIDERS SELECT PROVIDERS STRATEGIC PARTNERS

EXPERIMENT • Pilot Program: compile best talent

on medium size project

• Document & communicate key

learnings

LAUNCH • Create a definitive list of “cloud

projects” (more complex than

pilot)

• Pre-defined success metrics

REVIEW • Continuous feedback loop

• Strategy refinement


Cloud Application Transformation Framework

IT

Evolution

Workshop

Application

Profiling

Workshop

Cloud

Readiness

Assessment

Design

Migration

Services

Solution

Online

Customer

Data Center

Strategize & Assess Design Migrate Implement

Support & Optimize

Step by step approach to adopting cloud as a

business model

Ongoing Customer Cloud Maturity

Governance Planning & Customer Maturity Evolution

is an Ongoing Process

POC

Pilot

Architecture


Get SMART on Cloud

30

“Our goal is to create the most

CLOUD SAVVY customers in the industry”

Recommended Rackspace Resources: • Cloud: Vision to Reality whitepaper

• Cloud: Economics whitepaper

• Take the Cloud Readiness Self Assessment

• Use cases: – Hybrid Hosting: Dominos Pizza and watch the video

– RackConnect™: VEVO and watch the video

– Private Cloud: Lighthouse1

– Advisory Services: Acquity Group

Recommended Industry Resources:

• The Big Switch, Nicholas Carr

• Cloudonomics: The Business Value of Cloud Computing, Joe Weinman

• Rackspace Cloud Tools Marketplace

• http://gigaom.com/

• www.gartner.com

• www.forrester.com

• www.idc.com

Rackspace Knowledge Center

JOIN US!

http://www.rackspace.com/knowledge_center/cloudu/

http://www.linkedin.com/groups/Enterprise-Cloud-Forum-4167570?gid=4167570&trk=hb_side_g

http://c1776742.cdn.cloudfiles.rackspacecloud.com/downloads/pdfs/CloudVisionToReality.pdf

http://c1776742.cdn.cloudfiles.rackspacecloud.com/downloads/pdfs/CloudVisionToReality.pdf

http://c1776742.cdn.cloudfiles.rackspacecloud.com/downloads/pdfs/WhitePaper_CloudEconomics.pdf

http://www.rackspace.com/cloud/self_assessment/

http://www.rackspace.com/knowledge_center/dominos_casestudy

http://play.buto.tv/FB7HJ

http://www.rackspace.com/knowledge_center/search/site/vevo

http://www.youtube.com/watch?v=KhX6XqzCIqQ

http://www.rackspace.com/knowledge_center/search/site/lighthouse

http://c1776742.cdn.cloudfiles.rackspacecloud.com/downloads/pdfs/Rackspace_Acquity_CaseStudy_web.pdf

http://www.nicholasgcarr.com/bigswitch/

http://www.cloudonomics.com/

http://www.cloudonomics.com/

https://cloudtools.rackspace.com/home

http://gigaom.com/

http://gigaom.com/

http://www.gartner.com/

http://www.forrester.com/

http://www.idc.com/

http://www.rackspace.com/blog/rackspace-named-2012-microsoft-hosting-partner-of-the-year/

http://www.rackspace.com/knowledge_center/

https://community.rackspace.com/


What We Covered Today

31

Current State of IT Organizations

Identification of Necessary Skills in a Cloud

World

Emerging IT Roles

How IT Drives Value for the Greater Organization

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US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM

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RACKSPACE® HOSTING | 5000 WALZEM ROAD | SAN ANTONIO, TX 78218

US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM

RACKSPACE® HOSTING | © RACKSPACE US, INC. | RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN THE UNITED STATES AND OTHER COUNTRIES. | WWW.RACKSPACE.COM 32

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Enterprise Open Cloud Forum: Restructuring IT For Profit in a Cloud World