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Page 1: Bridging the c suite gap

Bridging The C‐Suite Gap

How To Build The Business Case For 

Data Center Transformation

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Defining Data Center Transformation

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Delivering the data center needed for your future successDATA CENTER TRANSFORMATION

The DCT opportunity» Reduce overall IT costs.

» Shift spending to business priorities.

» Improve business continuity.

» Support new initiatives and promote growth.

» Allow for modular data centers.

» Increase environmental sustainability.

Dedicated infrastructure and applications

Shared infrastructure and services

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Simplify, standardize, and reduce the number of data

centers, applications, servers, storage, and

network resources.

Automate the entire data center operations

lifecycle.

Protect business with resilient operations.

Optimize the use of energy, floor space, and

cooling infrastructure.

DATA CENTER TRANSFORMATIONFour Integrated Initiatives

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Bridging the C‐Suite Gap

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Does it feel like you and your CIO are from separate planets?VULCAN VS. KLINGON

vs.

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Acceleratebusiness growth

• Maintain customer relationships

• Target new opportunities and markets

• Improve business decision making

Lower costs

• Reduce IT cost and drive down business cost

• Enhance operational efficiency

• Improve return on IT investments

• Improve workforce productivity

Mitigate risks

• Improve compliance• Protect critical assets• Ensure continuity of

business operations

How is he/she being measured? – By business outcomesUNDERSTANDING YOUR CIO

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8

Priorities

Business

Management

Technology

Metrics

Business

IT Strategic & Operational

Desired Business Outcomes

Costs

Growth

Risks

DESIRED BUSINESS OUTCOMES DRIVE THE CIO AGENDA

HP CIO Agenda framework

Business: How CIOs help meet key business objectives and measure their business contributionManagement: How CIOs manage the IT organization and resourcesTechnology: Which technologies meet these needs

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CIO AGENDA PRIORITIES (2009)

1. Business Intelligence applications

2. Enterprise applications (ERP, SCM, CRM, etc)

3. Real time infrastructure; servers and storage technologies

4. Legacy application modernization, upgrade or replacement

5. Collaboration technologies

6. Networking, voice, data and mobile technologies

7. Technical infrastructure management and automation

8. Security technologies 9. Service oriented

applications and architecture

10. Document and workflow management

Technology Priorities1. Improve business

operations and processes2. Control enterprise wide

business costs3. Improve the effectiveness

of the enterprise workforce4. Attract, retain & develop

customer relationships5. Expand the use of

information / analytics in the business

6. Create new products & services (innovation)

7. Support change initiatives, mergers/acquisitions

8. Expand into new markets, geographies and capabilities

9. Support regulation and compliance requirements

10. Manage environmental impacts (Green IT, Carbon Footprint)

Business Priorities1. Link business and IT

strategies and plans2. Reduce the cost of IT

operations3. Deliver projects that

enable business growth4. Improve IT governance5. Improve IT processes

and service delivery quality

6. Improve the business & IT relationship

7. Attract, retain and develop IT personnel

8. Consolidate IT (shared services)

9. Enable the use of information in operations, products or services

10. Manage IT risk

Mgmt Priorities

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So How do you build a Business Case?

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BUSINESS CASE IN 3 SIMPLE STEPS

Tie it to the 3 objectives. Does this project help:» Reduce overall IT costs?

» Shift spending to business priorities?

» Mitigate risk and improve business continuity?

1. Current State 2. Future State3. What does it take to get there

Represent everything in financial terms

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• Revenues generated

• Solution cost

• Internal costs– including customercare and marketing expenses

• Return on Investment

• Cash flow and Payback

• Net Present Value

• Internal Rate of Return

MORE ADVANCED TERMS

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Business Case in Action –Breaking it down for DCT

Example: Data Center Consolidation

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» Escalating costs» Inefficient and manually intensive

processes

» Inconsistent or poor quality of service» Slow to respond to business needs

» Isolated applications and data» Aging facilities and infrastructure» Too many data centers» Inefficient use of technology assets

Current data center facilities and infrastructure is a barrier to business growth, and expensive to maintain and manage

1. CURRENT STATEComplexity continues to grow.

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» Fewer applications» HP’s own transformation: 8000 -> 1500

applications

» Fewer data centers» HP’s own transformation: 85 -> 3 pairs

» Fewer infrastructure components» Virtualize and converge servers,

networking, storage etc

2. FUTURE STATEReduced complexity = reduced cost, improved service levels, less downtime

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3. GETTING THERELower complexity.

Increase use of shared infrastructure.

Lower application life cycle costs.

Lower costs through reduced space, 

energy, and cooling requirements; 

simplified management; and improved 

asset utilization.

Significantly reduce costs.

Mitigate energy and space costs and issues.

Improved asset utilization.

Improve quality of service.

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Lower costs.»Lower energy and maintenance costs.»Enhance productivity, utilization.»Achieve 20–50% costs improvements.

Manage risks.»Reduce complexity.»Build in continuity and security.

Improve elasticity and enable innovation.»Shift resources to innovation.»Rapidly deliver new business services.»Deploy new resources in minutes/hours instead of days/months.

TYING CONSOLIDATION TO THE 3 GOALS

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GETTING THE BALL ROLLINGTwo helpful tools

Experience DCT Workshop

Workshop Focus» Determine benefits, scope, scale, 

and critical success factors.

» Identify quick wins.

» Gain stakeholder buy‐in and project traction.

» Build a next‐steps roadmap.

CIO Agenda Workshop

Workshop Focus» Best practice model based on 

annual Gartner CIO survey

» Clarify and align business, IT management and technological priorities 

» Half day session