Data center insights summit 2015 disruptive force of clouds

The Disruptive Force of Clouds

Cal Braunstein, CEO and Executive Director of Research

DataCenter Insights Summit 2015 © Robert Frances Group, Inc.

Robert Frances Group – About Us

•  Robert Frances Group provides concierge advisory, consulting and research services to assist in:

•  integrating IT with business to improve business outcomes.

•  enhancing the business and financial impacts of cloud and IT infrastructure investments and

•  transforming Business Technology operations.

•  Serving Fortune 1000 firms and others since 1997

2

Business Advisors to IT Executives

SPORT Model ü  Strategies, SLAs, Sustainability ü  Processes, Procedures, Policies, Best Practices, Procurement and Politics ü  Organizational, Operational Issues ü  Resources, Regulations, ROI/ROV, Risk, and Requirements ü  Technology, TCO, and Ts & Cs

DataCenter Insights Summit 2015

IT vendors

IT execu.ves

CFOs

CMOs

© Robert Frances Group, Inc.

60 – 70% of Operations Budget Wasted •  A typical IT organization can increase capacity by 2x while cutting overall costs by 50% and

reducing power consumption by 80% •  2.5x – 3x improvement possible •  In a $1,000,000 budget $600,000 – $700,000 is wasted

•  Cloud providers are optimized, less expensive, & expose the waste –  Commoditized, standardized, and virtualized –  Continuously optimized and technically current

•  Good news: the correction can be self-funded

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Source: RFG studies, surveys and DC Optimizer


Where do the gains come from?


Top Resource Optimization Opportunities

Area of Opportunity Potential Savings

1.  Application/OS < 20 %

2. Networking > 70%

3. Process – including automation, consolidation, DevOps, virtualization

> 20% of the devt & operational budgets

4. PUE Up to 80%

5. Servers > 40%

6. Server virtualization > 60%

7. Servers/administrator > 50%

8. Storage > 50% up to 90%

9. Technology currency Up to 80%

10. VMO/strategic procurement > 20% savings on procuring goods, including process savings

11. Clouds – public/private/hybrid 20 - 40%

Applica'on/OS – versions ≥ 2 1

Networking -‐ virtual ≤ 20 % ≥ 50 %

Process – provisioning Days – weeks Minutes

PUE ≥ 1.90 ≤ 1.40

Servers ≤ 10 % u'liza'on

≥ 40 % u'liza'on

Server virtualiza'on ≤ 8:1 ≥ 20:1

Servers/administrator ≤ 100 ≥ 200

Storage – SSD/'ered/thin/virtual

Standard HDD

Most

Technology Currency ≤ 60% < 3 yrs ≥ 75% < 3 yrs

Source: RFG studies, surveys and DC Optimizer


Cause: Flawed Business Model


•  Aging Technology •  Failure to Keep Technically Current •  No strategic acquisition strategy •  Poor Procurement Processes •  Flawed asset management •  No overarching architecture •  Lack of Standardization, Virtualization •  Inefficient Processes •  Unnecessary Redundancies •  Under Utilization


Current IT Operations Model •  Islands

–  Development driven

–  Line of business driven

•  Vertical stack view

•  Aged & inefficient

•  Not optimized

•  Not least cost

•  Lacking cohesive

architecture

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Cloud Operations Model

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Hybrid Cloud / Multi-Cloud Infrastructure

Enterprise Platform

Unified Management Core

Integration QA Test Prod.Staging

Runtime Environment 1 Runtime Environment 2 Runtime Environment 3

N Logical Lifecycle Stages(configurable)

N Runtime Environments (configurable) DMZ

SEC

DB

DMZ

SEC

DB

dev/DMZ

dev/SEC

dev/DB

Workflow Governance and Automation

Configuration AutomationPackage Repository

test/DMZ

test/SEC

test/DB

Local Dev

Local Runtime Environment

DMZ,SEC,DB

SCM

External Build / CI System

Cloud 1 Cloud 3Cloud 2

N Internal or External IaaS / InfrastructureProviders

Deployment AutomationInternal Build System

Application Developers

Policy Admins, IT Managers QA Testers Approval Roles Production Operators

1

2

4

5

6

7

8

9

3

10 13 14

15

16

11

12

Enterprise Platform Reference Architecture - Lifecycle Flow

v 2015.01.19 [email protected]

End Users

Single Management/Governance Plane

MultipleApplication

Components Cloud N

shared services shared services

shared services

17

18 External apps/

services19

Agile Lifecycle Iteration

•  Horizontal stack view •  Agile •  Composable •  Controlled •  Efficient •  Current tech •  Metered service

catalogue •  Scalable


Staffing Impacts/Considerations


Physical

Middleware

OS

Applica'on

Comman

d an

d Co

ntrol

Security an

d Co

mpliance

Supp

ort

Stack skill set Layer skill set

•  Business service management

•  Relationship management

•  Compliance •  Provider management •  Brokering •  Orchestration •  Single layer skills •  Oral / written

communications

Comman

d an

d Co

ntrol

Security an

d Co

mpliance

Supp

ort

Applica'on

Infrastructure as a Service

Database & Network

Abstrac'on

Abstrac'on

Physical Loc 1

Physical Loc 2

Physical Loc N

Consump'on Layer

Applica'on Pla\orm as a Service Infrastructure Pla\orm as a Service

Platform as a Service

Managem

ent Service

Physical

User

Abstrac'on


Future State: Hybrid Operations Model


Enterprise Platform Reference Architecture -Current and Future State Interaction Patterns

v 2015.01.19 [email protected]

Future State Architecture

Current State Architecture

End UserApplications

External Services/Apps

Externally Exposed Application/Service Components

Internal Services/Components

Externally Exposed Application/Service Components

Internal Services/Components

Service Gateway/Bridge

1

2

34

1 : Business solution completely based on Current State Architecture.

2 : Business solution completely based based on Future State Architecture.

3 : Business solution delivered by components on Future State Architecture consuming services hosted on Current State Architecture.

4 : Business solution delivered by components on Current State Architecture consuming services hosted on Future State Architecture.


•Copyright © 2014 Robert Frances Group 46 Kent Hills Lane, Wilton, CT 06897 Ph: +1 203.429.8951 www.rfgonline.com

IT Transformation is a 3 Phase Process

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Phase 1 Phase 2 Phase 3

IT Production

Lower costs • Reduce CapEx • Reduce OpEx • 30% more efficient • 30% virtualized apps • 25% better storage utilization • Cut GHG & energy usage

Business Production

Improve QoS

• Reduce CapEx/OpEx • 50% effectiveness • 60% virtualized apps • 60% better storage utilization • Add’l GHG & energy savings

IT as a Service

Drive Agility • Reduce CapEx/OpEx • > 75% effectiveness • > 80% virtualized apps • > 75% better storage utilization • Add’l GHG & energy savings

A Journey, not a Destination


Steps Required to Transform DC ü  Perform an audit and baseline analysis

ü  Clean up low hanging fruit

ü  Develop a strategy, plan, and initiatives

ü  Including career planning and counselling

ü  Create a (self-funding) business case

ü  Measure, monitor and report progress


Q&A

Cal Braunstein CEO/Executive Director of Research Robert Frances Group Business Advisors to IT Executives www.rfgonline.com phone: 203-429-8951 (US Eastern Time) [email protected]

DataCenter Insights Summit 2015 © Robert Frances Group, Inc.