SERVICE PROVIDER IT TRANSFORMATION

Transcription

1 SERVICE PROVIDER IT TRANSFORMATION Christopher Croupe

2 AGENDA Drivers Options Discussion 2

3 AGENDA Drivers Options Discussion 3

4 MARKET FORECAST 2016 Source Gartner 10/2013 4

5 CLOUD MARKET FORECAST Source Gartner 2/2013 North American firms are driving cloud adoption. 5

6 DRIVERS MACRO TRENDS 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 - U.S. Data Centers and Rack Unit Forecast* DC CAGR = -4.4% Rack CAGR = 1.8% Sum of Sites Sum of Racks Shift to large-scale multi-tenant data centers (MTDC) underway. Convergence between telco and IT networks accelerating with NFV movement. *Source Gartner Data Center Forecast 2Q13 6

7 DRIVERS - MOBILITY > U.S. Population grew 1.5%, Full-time work-at-home population grew 3.8% Since many people can work from anywhere, why don t they? Source globalworkplaceanalytics.com 7

8 DRIVERS SMBS 69% of SMB with < 20 employees use cloud-based applications 55% of SMB with employees use cloud-based applications Source spiceworks State of SMB IT 1H 2013 Semi-Annual Report on Small and Midsize Business Technology Plans & Purchase Intent 8

9 DRIVERS A QUICK NOTE ON GLOBALIZATION 90% of commercial sellers on ebay export to other countries (micro-mulitnationals) Over 50% of SMEs are expected to have at least one customer outside their domestic country Globalization trends continue with SMEs taking advantage of open trade opportunities and cross-border communications. 9

10 DRIVERS DEMOCRATIZATION OF TECH INNOVATION HR/Marketing Idea THEN IT NO YES Happy HR/ Marketing Unhappy HR/ Marketing NOW IT Unhappy IT Happy HR/ Marketing Toddler Rules HR/Marketing Idea CLOUD 10

11 AGENDA Drivers Options Discussion 11

12 OPTIONS - OVERVIEW On Premise Data Center Hybrid Solutions Public Cloud Full Outsourcing AKA Private Cloud 12

13 OPTIONS ON PREM PROS AND CONS Full Control security and performance Differentiated/Custom applications Talent development Capex/Opex - real estate/personnel etc. Development costs Time to market for new applications No disruption to BAU, but demands from consumers and employees for rapid deployment of new applications may not be met. Capex/Opex can be reduced by leveraging MTDC hosting options. 13

14 OPTIONS PUBLIC CLOUD PROS AND CONS No Capex Pay as you grow only pay for resources consumed Security questions Performance/Reliability questions Possibilities for lock-in Significantly reduced barriers on time to market but security and performance issues persist. 14

15 OPTIONS HYBRID CLOUD PROS AND CONS Reduced Capex Pay as you grow for new applications only pay for resources consumed Mission-critical applications and sensitive data can be controlled in-house Integration issues Lock-in still a consideration Some security and performance issues remain Best of both worlds if integration issues can be controlled. 15

16 OPTIONS FULL OUTSOURCING No Capex Significantly reduced Opex Possibilities for lock-in talent issues Differentiation questions Agency issues profit of managing company prioritized over your needs Integration/Alignment Be careful the marriage is usually happy, but the divorce can be very messy structured pre-nups are required. If a vendor says they can do exactly what you do now only cheaper, be wary. 16

17 OPTIONS - WHICH ONE TO SELECT? What is the business driver for the IT transformation? Cost cutting / simplification of operations Improved time to market for new offers Improved customer experience retention Maximizing revenue via customized offers Will the end state fit in with the overall corporate strategy? Operational efficiency Product centric Customer intimacy Cost cutting is typically the driving force behind an IT transformation process, but don t let that be the only factor much more is possible with additional foresight. 17

18 AGENDA Drivers and Inhibitors Market Forecasts Discussion 18

19 DISCUSSION One area of concern regarding the convergence of the telco and IT networks (via NFV and similar technologies): Is the network a differentiator for your business? If so, then that should be a consideration when deciding how much control of your IT systems you wish to give up. 19