1 Implementing a Strategy Towards a Cloud Environment IDEAS FOR SMART BUSINESS TRANSFORMATION Cloud services provide opportunities for customers and small companies to adopt new services as reliable, easy-to-use capabilities. They also provide the ability for world Posts to use their economies of scale to provide current and new services to their customers, especially in the area where security and regulatory control of cloud services are critical. This paper provides insights into how Posts can leverage Accretive s predictive analytics and business modelling capabilities to make smart Cloud decisions and ultimately become more agile and cost efficient.
3 WH ITE P APE R Im plem ent ing a St rat egy Towa rd s a C loud En viron m ent From the current marketplace analysis cloud economics look compelling. OVERVIEW Cloud services provide the opportunity for customers and small companies to adopt new services as reliable, easy-to-use capabilities. They also provide the ability for world Posts to use their economies of scale to provide current and new services to their customers, especially in the area where security and regulatory control of cloud services are critical. With a level of security and trust, delivered through current services today, world Posts can expanded their reach or develop into new marketplaces for example (pervasive analytics, user services, or micro/macro payments). It is becoming clear the cloud is a disruptive change to the way services and workload are delivered to a user base; there is a great amount of market hype, with suppliers delivering services today as cloud based services enhanced application and/or infrastructure hosting. What is apparent though is that companies need to develop a strategy for cloud that integrates business and IT. COOs and CIOs need to have an integrated strategy to determine how these cloud based services that bridge between business and IT need to be utilized; to ensure the current business and IT operations are not disinter mediated by third parties. These third parties are today delivering business and IT services due to the perceived cost gap between a cloud based services and traditional IT. COOs and CIOs need to refocus on determining for each critical business and IT workload the optimal service commitments quality, quantity, continuity and balancing this against cost. With an agreed strategy cloud based services are a huge opportunity for COOs and CIOs as they provide the potential of: Optimizing delivery to traditional, private cloud, public cloud Developing more responsive IT aligned business service Improving the visibility in billing /chargeback to LOBs Lowering the cost of delivery for the right workloads Developing new services utilize core investment to sell services develop public cloud based services ESTABLISHING A CLOUD STRATEGY There are a number of cloud environments that can be implemented derivatives can be developed from the primary models of Private or Public (see Figure 1 for example off site private or hybrid cloud). The first step though in moving towards a cloud environment though is determining the overall business strategy towards Cloud. Accretive Technologies 3
4 WHITE PAPER Implementing a Strategy Towards a Cloud Environment Does your Postal Services organization want to Supply cloud services Develop a hybrid model Consume cloud services from a 3 rd party Figure 1 Analysis of the customer/business services provided today and the future plans is required to categorised these from a business perspective determining if Posts see these services as: Critical to the business operations and or regulated for example customer information/data Able to be supplied by Postal Services providers to a wider customer base Able to be out tasked to a Cloud supplier, where Postal Services providers become a consumers of the cloud service This analysis will develop a target-operating model for cloud services with a variation breakdown by business line and service of the approach required. Once the analysis of business and IT service has been completed then more detailed investigation of the workload (see Figure 2) is required to determine: The current service quality, quantity, continuity and cost for a business service/workload The service quality, quantity, continuity and cost metrics that can be provide by a proposed cloud service Which parts of the delivery of service can be out tasked for a given workload to the cloud based service Operations, Development, maintenance Accretive Technologies 4
5 WHITE PAPER Implementing a Strategy Towards a Cloud Environment The enterprise architecture reference model, a component based model that details the in scope workloads and their supporting technical environments (application, middleware/ database and infrastructure) The actions required to engineer the business service/workload, so that it can be might be migrated into a cloud based service This determination of the approach to cloud implementation has to be agreed between the business and IT the COO and the CIO. Figure 2 BUSINESS MODELLING This analysis that provides the target operating model and the enterprise architecture reference model would be built up alongside the development of the Accretive X-Act model using the Model Based Architecture (MBA) TM method. The X-Act model will accurately represent the full stack: the business services/workload, systems and applications, and the underlying server and network infrastructure for all components within the end-to-end service. This X-Act model would be used to emulate the workload in its current state and to determine how the core characteristics of the service quality, quantity, continuity and cost for a business service/ workload adjust as they are migrated into the cloud based service. The primary approach proposed by Accretive for Postal Services is the top down approach, business driven, where the standardised workloads are developed building the service catalogue based on business goals and KPI s: Standards and portability of workload Security, trust, privacy and compliance Management system and governance Data ownership recovery service level Accretive Technologies 5
6 WHITE PAPER Implementing a Strategy Towards a Cloud Environment There may be case examples driven by the current installed IT where Posts might use the bottom up approach. Any business IT strategy will be a mix of both approaches, whichever approach throughout the workload analysis there also needs to be parallel analysis to determine the target service integration layer. This service integration layer needs to be contiguous across all provision for all services delivering the services to meet the key characteristics of a cloud service: Simplified & standard Rapidly elastic scalability Secure/private On-demand self-service Pay per use Geographically independent, available anywhere, network access Contiguous service Figure 3 Figure 3 Details how the service integration layer needs to span across all levels of delivery of the cloud service. As stated a strategy is required across the business and IT of target Post that address the challenges of cloud-based services. This strategy needs to consider which services/workload need to be kept in house, which can be provided by a 3 rd party and which services can be supplied to customers and users by Postal services provider. This strategy and the implementation/ transformation is built on workload analysis to determine how the quality, quantity, continuity and cost for a business service/workload adjusts and needs to be changed if it is moved to a cloud based service. Accretive s MBA TM method would be used to construct the X-Act model alongside and feeding into the target operating model and enterprise architecture reference model. Accretive Technologies 6
7 WHITE PAPER Implementing a Strategy Towards a Cloud Environment X-ACT TECHNOLOGY AND MANAGEMENT FRAMEWORK Accretive has developed the X-Act Technology and Management Framework into the industry leading solution to analyse and predict the impact of change and complexity in a business or IT service; it has been used within multiple client engagements to: Build a mathematical model of the business or IT environment, which predicts the current state of complexity, and key business metrics; business throughput, service quality, cost and risk Analyse under which circumstances/conditions and where complexity can be observed as a change in the business metrics; determine when the business or IT service will become unstable and fail to deliver the required service» Where there are limits and bottlenecks within a current and proposed service» Mathematically prove that the remediation, recommended by X-Act Technology and Management Framework, will deliver business benefit. Accretive s X-Act Technology and Management Framework is unique, in enabling clients to the exploit the dynamics within a business and or IT environment. It provides the capability to predict the impact of change on the key business metrics. Accretive Technologies 7
8 WH ITE P APE R Im plem ent ing a St rat egy Towa rd s a C loud En viron m ent ABOUT ACCRETIVE Accretive Technologies Inc. offers highly accurate predictive and prescriptive business analytic capabilities to help organizations thrive in the face of increasing pressures to innovate, contain costs and grow. By leveraging the power of Accretive s smart analytics platform and advisory services, global leaders in financial, telecommunications, retail, entertainment, services and government markets gain the foresight they need to make smart transformation decisions and maximize the performance of organizations, processes and infrastructure. Founded in 2002 with headquarters in New York, NY and offices in Omaha, NE and Paris, France, Accretive is a privately owned company with hundreds of customers worldwide. Accretive Technologies 330 Madison Avenue, 6th Floor New York, NY (212) (US) +44 (0) (UK) +33 (0) (France) Accretive Technologies 2012 Accretive Technologies. All rights reserved. 8