THE ROLE OF CLOUD IN IT MODERNISATION The DevOps Challenge Ovum
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1 ROY ILLSLEY THE ROLE OF CLOUD IN IT MODERNISATION The DevOps Challenge Ovum
2 Agenda Introduction How cloud computing is establishing its self market view The role of managed services customer view Understand DevOps and where managed services converge Summary
3 The best way to predict the future is to define it Abraham Lincoln
4 IT Supply & Demand Management of fixed infrastructure components Evolve Delivery of dynamic business services IT is moving from a supply-side approach to a demand-led approach, and this is forcing a change in how IT interacts with the infrastructure and its customers Provision of an infrastructure platform IT Supply Delivery of fixed IT services Influence Delivery of fixed business services (with chargeback) IT Demand Source Ovum
5 Moving from a supply-led to a demand-led IT delivery approach Virtualized Client Access Allocated Physical Mobile Mobile Device Management User Persona Management Standard IT Processes - ITSM Asset Management Personal Use Management - Policies and Governance Business Service Management Virtual Machine Management Infrastructure Flexibility Business Technology Service Assurance Service Orchestration and Contract Management Dedicated Physical Virtualized Cloud Computing
6 This is changing how enterprises are focusing on the strategic objectives Initial Position Non-Differentiating Differentiating Target Internal Specialisation Support Strategic Support Strategic External Specialisation Utility Partner Utility Partner Process focus shifts to encompass specialisation Mirrored by IT spending? Internal External Source: IBM Institute for Business Value
7 What does this shift mean Jevon s Law In his 1865 book The Coal Question: An Inquiry Concerning the Progress of the Nation, and the Probable Exhaustion of our Coal-Mines, English economist William Stanley Jevons made the observation Of the Economy of Fuel that when improvements in technology make it possible to use a fuel more efficiently, the consumption of the fuel tends to go up, not down. In other words the use of IT will increase and therefore IT must modernize its processes to maximize the potential benefits
8 Agenda Introduction How cloud computing is establishing its self market view The role of managed services customer view Understand DevOps and where managed services converge Summary
9 Cloud Computing is just becoming a troublesome teenager
10 Limited resources are the biggest challenge for CIOs to greater use of cloud Delivering increased performance Unable to modernise systems Technology complexity Limited IT budget to modernise systems Too many different technologies to manage Maintaining high performance levels with limited IT resources Top 3 responses Most Important Second Third Ovum Enterprise survey Nov 2013 Jan 2014 n=700 Number of respondents
11 % respondents Degree of increased burden on IT due to lack of management capability SMBs report the most increase in burden 35% report considerable or significant Nearly 30% of all respondents report a high degree of burden Latin America reported 37% experience considerable or significant degree of burden compared to Australia with only 22% Large Enterprise Mid-Sized Company SMB Average for all None Minor Moderate Considerable Significant Degree of increased burden Ovum Enterprise survey Nov 2013 Jan 2014 n=700
12 Cloud adoption forecast EMEA Global By % of enterprises will using IaaS Split between Public, Private, and Managed fairly even By 2016 over 80% of enterprises will using IaaS Private cloud showing greater growth
13 How enterprises select cloud vendors Not all about price Global Pricing is #1 reason for most important Data sovereignty relatively unimportant In Germany this was #1 for most and moderate Dedicated account managers #2 high importance
14 Agenda Introduction How cloud computing is establishing its self market view The role of managed services customer view Understand DevOps and where managed services converge Summary
15 The picture is mixed on the use of external service providers Spending on external providers is showing a small increase But this varies by size and geography SMB in Latin America and Australasia only slight decline But in mid-sized both these regions show a bigger increase Mid-sized organizations external services spend +1% +2% +1% +2% Ovum ICT Enterprise insights 2013 n=6700
16 Number of respondents Being proactive is number 1 reason for application monitoring Tactical reasons are the most common use Localization of problems Solve the silo IT structure problems Mission critical applications are nearly twice as likely to be monitored as non-critical DevOps is the biggest plan to use reason for application monitoring How do use/plan to use application level monitoring? Ovum Enterprise survey Nov 2013 Jan 2014 n=700
17 Most important reasons to use a managed service provider Let me re-skill my team Take away the current maintenance % of respondents Ovum Enterprise survey Nov 2013 Jan 2014 n=700
18 Most important reason why a service provider is used Shortage of skills Top for SMBs and mid-sized Poor application performance Top for large enterprises Reduce costs least important Lowest for SMB Fifth overall so not significant Improve SLAs Lowest for mid-sized Second lowest for large enterprises % of respondents Ovum Enterprise survey Nov 2013 Jan 2014 n=700
19 Key benefits obtained from using an MSP It is not about TCO and shifting from capital to revenue More efficient use of resources #2 Being proactive is the #1 benefit derived from MSPs Least important #2 #1 Ovum Enterprise survey Nov 2013 Jan 2014 n=700
20 Agenda Introduction How cloud computing is establishing its self market view The role of managed services customer view Understand DevOps and where managed services converge Summary
21 The way we have grown has created the problem How do we break down the walls we have created over years of separate development?
22 DevOps is simple then Remove the walls and everything is fine
23 Well its not that simple Without walls things tend to collapse, so we need something to replace the walls.
24 For Operations hell is a typical Java or.net web application build process that involves multiple steps pulling in the various application files ensuring that the right virtual machine is in place stopping the application server for configuration setup and ensuring that the right files are located in the right folders restarting the service setting up the database and its configuration files ensuring that the service is running correctly, as there may be administration privileges to set up and various SQL queries to run checking that the application is running as expected.
25 To a developer if you are a hammer everything is a nail
26 The value of a managed cloud to DevOps Designed Single management tool set that controls and manages the entire system lifecycle from a single console Simplification of complex operation involved in deploying apps Integrated governance layer to ensure security and compliance are not compromised Optimized The complete stack is optimized for the platform and ensures the system delivers on all critical metrics Processes can be developed to match and be used by all parties involved in DevOps Supported Single support contract so that any issue or fault will not suffer from finger pointing. Integrated with other tools for fault and defect tracking providing a single support view on the entire lifecycle
27 Agenda Introduction How cloud computing is establishing its self market view The role of managed services customer view Understand DevOps and where managed services converge Summary
28 What all this means for IT Design for manufacture. Treat software not as project, but as a durable good. Projects typically have specified start and end dates. Once projects end, attention shifts to the next items on what is otherwise a seemingly endless software development backlog. Change the mindset software developers should embrace the SLAs that are a core concept of IT service delivery. software warranty that the software will deliver on the original promises. It provides a mechanism for continuous improvement that is triggered not only by trouble tickets, Prevention is cheaper than fighting fires.
29 Thank you for listening Roy Illsley, Principal Analyst, Infrastructure Solutions
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