The cloud and your IT infrastructure: 9 considerations for your cloud application strategy

Transcription

1 The cloud and your IT infrastructure: 9 considerations for your cloud application strategy

2 The cloud and your IT infrastructure: 9 considerations for your cloud application strategy The hype around cloud computing has been tremendous. It s also proven to be justified. In fact, most organisations are already operating with some element of a cloud service as part of their IT infrastructure. While onpremise software becomes obsolete and hybrid solutions fall short, cloud applications enable new ways of delivering innovative solutions. These solutions are practical, and they are easy to use and manage. The cloud now provides the fundamental infrastructure on which innovative organisations can run their businesses. THE CLOUD VENDOR A cloud environment is a functional foundation for IT and business operations, with the cloud vendor handling application availability, security mitigation, and upgrades using technology that s delivered according to strict service-level agreements (SLAs). To be a viable and trusted software partner, a cloud vendor must demonstrate that it can support a business through updates and innovations within the vendor s own product. With cloud computing, the vendor delivers the software, but only the customer can see, manage, and manipulate the company data that the software works with. A quality cloud vendor provides a single solution with an intuitive user experience, strong security, and insightful analytics. And that solution should improve the customer experience through regular, cloud-optimised software updates. MINIMISE RISK Minimising business risk is a core function for every IT organisation. With a cloud platform, the ownership life cycle and the actions required to ensure uptime and interoperability are removed from the customer. The responsibility falls on the cloud vendor. An effective cloud vendor should be able to minimise risk in the following ways. Availability An application isn t worth much if it isn t accessible by users. An IT organisation operates under a set of SLAs that dictate application uptime and availability. An SLA mandates that every cloud application be usable when it s needed, and must operate in conjunction with the other applications in the IT environment without interruption. Meeting SLA requirements is time-consuming and requires the oversight and management of internal IT teams, which must always be present with on-premise and hybrid applications. Knowing how any particular application is operating across the entire IT landscape requires visibility into current operations and some predictive ability to discern where and when potential issues might arise. When data from mobile devices and Internet of Things instances is included, more users are added to the mix. This can translate into deeper business insight, but only if the enterprise has the resources to maintain regular and accurate performance and availability. A cloud application relieves an IT team of management tasks, but the SLAs remain. For a cloud application to be considered a viable option, the customer needs assurance that the application works according to the vendorcustomer agreement. So, the job of a cloud vendor is to ensure that its application will be available according to defined performance goals. An application isn t worth much if it isn t accessible by users, says David Clarke, Vice President of Technology Development at Workday. IT is always concerned about data and applications being available it s one 2

3 of the most important things they re responsible for. Workday customers experienced 99 per cent uptime in 2014, and our product team is dedicated to continuous improvement of that. Configurability A CIO wants balance between what the application s functionality is and the business s specific needs. The strength of the cloud is a single code line in which all application development, features, and innovation are directed by the vendor. Users operate in their own cloud instance (or tenant) while their cloud vendor focuses on development, management, support, and maintenance of a single product. On-premise and hybrid applications require this type of effort for each version that they deliver, but most vendors are unable to dedicate the level of attention that each customer needs. This lag can create support and compatibility issues. With cloud applications, an organisation can customise and configure an application to meet end-user needs and successfully integrate the application into a specific working environment. A CIO wants balance between what the application s functionality is and the business s specific needs, says Stan Swete, CTO at Workday. It gets down to freedom versus order. Configurability is all about freedom, but if you go too far down that road, you lose order. I have found that configurable software lets an organisation balance freedom and order. A configurable cloud application should include a catalogue of industry-standard choices that are designed to meet the needs of any organisation. One of the myths of the cloud is that, since it s in the cloud, it s one-sizefits-all. But that couldn t be further from the truth, says Annrai O Toole, CTO Europe, Workday. Real cloud solutions should not only be configurable for the company, but in different ways for different parts of a company. Security Reputable cloud providers are proving that cloud can be done at least as securely as most enterprise implementations, and in some cases more securely. A cloud provider must offer security and data-privacy levels that are better than its customers can achieve on their own, and at no additional cost. Processes and policies have to encompass physical, network, application, and data-level security, as well as full backup and disaster recovery. The provider must be compliant with security-orientated laws and auditing programs, such as Safe Harbor, ISO 27001, SOC 1 and SOC 2. Access to data is among the most scrutinised factors when evaluating cloud applications. Within an organisation, only authorised users should be able to view and manipulate the data in cloud applications. A typical on-premise ERP implementation grants such access to a much wider group, which creates a security challenge. Cloud providers must take a holistic approach to security, ranging from technical safety guards such as encryption to understanding data-privacy laws and compliance, and building those safety guards into every product and process, says Swete. CIOs are responsible for due diligence on cloud providers. Go in and see what they re doing around data security and privacy, O Toole says. No one should enter a relationship without thoroughly vetting the provider s capabilities. Providers that won t allow you a thorough examination, claiming all kinds of reasons, are the ones to avoid. 3

4 BUSINESS VALUE The software that runs a business is more than just a processing and output tool. To be integrated into the way a business works, software needs to provide deep insight into business activities, make work more convenient for users, and allow all members of the organisation to be more successful in their everyday tasks. An effective cloud application has been built with broad capabilities that address not just business issues, but also how a business works. Continuous improvement and development/deployment life cycles provide incremental benefits through regular updates. Accessible across the business The user interface is critical in getting users to engage and recognise value in an application. Traditional ERP applications generally adhere to the legacy model in which users can interact with the client to input and receive data, but anything beyond that requires IT involvement. Conversely, cloud applications allow non-it users to perform certain tasks that they cannot accomplish in traditional on-premise ERP solutions. Cloud applications must give organisations complete control of their data, even though the data is located off-site. Authorised individuals should be able to import, export, purge, and archive data to and from the application without having to contact the vendor. The user interface is critical in getting users to engage and recognise value in an application, says Swete. A younger workforce expects simple but robust interfaces, and cloud vendors must deliver an experience that doesn t require a deep learning curve. This is especially true for users who need to engage on mobile devices. They want data and functionality available to them at all times and at any physical location. The ease (or difficulty) of the user experience dramatically impacts use and adoption of an application. Users of cloud applications become more integrally involved in the business when they can be more active, have more control, and gain insight into business operations and outcomes. Exceptional user experiences translate to higher engagement from end users who adopt the application functionality quickly. User experience is one of the most important determining factors in gaining value from an IT investment. Mobile accessibility is a major factor of the enterprise experience. Cloud applications should be optimised for a mobile experience. Anyone in the organisation who makes decisions or has to understand data analytics has to be able to carry out their job regardless of where they are working. The mobile experience is not just about delivering data; the data must be consumable and usable in a mobile interface. Analytics When analytics are built into the application, it means that users across the business have an actual, real-time dashboard for how their business is performing. Finding and reviewing meaningful data in some systems can be challenging and time-consuming. A good cloud application comes with analytics tools and capabilities that efficiently deliver insight into the organisation. In other words, a cloud application should offer an elegant way to consume data in a contextual, data-relevant way. It should not require a data scientist to interpret the results. The legacy approach to analytics requires manual extraction and analysis of data. Usually such systems require third-party tools that have to be integrated with other applications to implement, manage, and secure data. 4

5 In a cloud application, analytics are embedded directly into business processes. The application collects and analyses data in real time. Organisations don t need third-party tools for data interpretation. Users of cloud applications with embedded analytics can configure their analytics to deliver meaningful data based on their needs. Embedded analytics allow users to understand their business and adapt to what they learn. From its first product release, Workday applications have included native-insight capabilities that deliver rich, usable analytics and are available to end users as well as to IT. Data parameters are flexible: they can be identified and created, based on user needs and application specifics. Searches can be created by and for specific groups, teams, and departments. Too often enterprise-application users have to run reports through third-party tools or with the help of a power user, says Clarke. These cumbersome processes prevent the user from actively engaging with the data about their business. When analytics are built into the application, it means that users across the business have an actual, real-time dashboard for how their business is performing. Traditional ERP applications generally adhere to the legacy model in which users can interact with the client to input and receive data, but anything beyond that requires IT involvement. Conversely, cloud applications allow non-it users to perform certain tasks that they cannot accomplish in traditional on-premise ERP solutions. Community support A developer community is most effective when everyone is looking at the same application. Every software vendor has a community that offers support and collaboration opportunities for users. These communities are all relatively similar, but the needs of the users in these communities are wildly different because they are using different products and, in the case of on-premise applications, different versions. It s difficult to speak the same language and provide value unless the conversation is consistent. Members of the Workday Community all operate from a single software version. When they communicate and collaborate, they are speaking the same language. This creates a sense of community where customers and partners share knowledge, resources, and learning. APIs, services documentation, best practices, and implementation examples are all available in the Workday Community, and vibrant online discussions include real-time support and assistance. Swete says, At most software companies user-group meetings, you have to seek out others who are on the same version. At a Workday conference and in our online Workday Community, sharing is limitless. Your time is spent talking about new functionality that can drive business productivity and innovation, rather than sharing tips on how to avoid a high-cost upgrade. CONTINUOUS INNOVATION In the sprawling landscape of ERP applications, an application that operates as a flexible, but singular, instance can: Transact data across all types of applications Employ a single-user interface Operate with different business processes Use embedded analytics Workday s approach is The Power of One. We leverage a single-data model, with one UI, one businessprocess framework, and one analytics solution in a single architecture. Developing and supporting a single version of Workday enables us to concentrate greater development firepower on that single version and avoid the dilution of effort inherent in supporting multiple versions. 5

6 Single platform The best platform is one that has carefully considered all elements of both the IT and user life cycle, and then built into the product so it can be used for the future. A solid cloud architecture is built for the future. On-premise and traditional applications are generally developed for a specific purpose and timeframe; they cannot easily adapt to rapid business change. Every customer on cloud applications is on the same version of the software. The vendor can maintain a sustainable IT environment while developing and deploying new technology and innovative solutions that are based on evolving customer needs. These changes have to be invisible to the customer, but available and functional at their desk, remotely or on a mobile device. IT has typically been responsible for maintaining applications and ensuring a secure, stable, and available infrastructure for internal and external activities. However, this approach is costly in terms of resources and leaves little time to drive progress and innovation through technology. Yet, with a single platform managed by a cloud vendor, an IT organisation can direct internal technology activity while implementing more innovative ways to generate value from the enterprise s technology environment. 1. A deeper view into the business s operations and how it functions 2. Greater insight and ability to analyse application effectiveness 3. The ability to offer end users a consolidated view of enterprise data in a single point of access 4. A more efficient way for processes to interact with data from multiple software applications Integrating applications in a traditional environment requires a heavy investment of time and resources. Disparate technologies and systems, growing costs, constant maintenance, and support headaches are among the challenges of maintaining an integrated environment for an enterprise. Traditional application vendors are focused on specific functionality. As a result, legacy vendors have enabled integration almost as an afterthought. Although integration is never easy or fast, cloud applications provide a streamlined and effective way to integrate applications and provide a comprehensive view of available data. Using packaged integrations and available APIs allows organisations to focus on extracting and transacting with integrated data without the overhead of application management. At the same time, integration efforts give end users more access to data, which supports productivity and alleviates ongoing IT maintenance. Integration Integration can be complex. You need a platform that has been created with widespread integrations in mind. One of IT s most important functions is to provide a comprehensive view of available data across all enterprise applications. The benefits of integration to the enterprise are huge: Workday s approach to application connectivity is that it be simple to build, deploy, and manage, and that it evolve over time. This significant change decreases the cost, complexity, and rigidity of connecting to traditional enterprise systems. Workday delivers integrations for financial settlements, expenses, customer accounts, payroll, HR management, and other HCM and financials solutions. For additional integration, Workday uses an enterprise service bus (ESB) and connector tools to integrate with other applications. 6

7 When a vendor equips a customer with integration readiness, it is committed to ensuring customer success. A trusted vendor uses the cloud to make its application valuable to users. Applications and tools must include the following. Workday, you will see, has already made these things a major priority: Open, standards-based web services APIs. Comprehensive standards-based web services APIs that support all integrations to and from the vendor application. Packaged integration. To ease data integration and leverage the cloud, a vendor should provide complete packaged integration solutions that connect via standards-based APIs. Workday currently includes more than 160 benefits carriers for HCM users. Almost any integration can be created without additional costs to core IT budget. Integration platform. Workday offers an enterpriseclass Integration Platform-as a-service (ipaas) for building, deploying, and managing integrations to and from Workday. All integrations are deployed to the Workday cloud and run in the Workday cloud without the need for any on-premise middleware. Workday also embeds management and monitoring services in the Workday user interface. A vendor needs to have a comprehensive platform for building, deploying, and managing integrations to and from their application. These applications should then function without interruption in the vendor s cloud without the need for middleware. In Workday s case, this platform includes embedded management and monitoring services. Update process The update-versus-upgrade approach benefits both the vendor and the customer the customer is relieved from IT-upgrade projects, while the vendor can focus on maintaining its own software. A cloud application is a single version of software that is regularly updated, often several times a year, for all customers. The process is invisible to the customer and causes no disruption. A cloud development team performs continuous development and then rolls out updated versions to all customers at the same time. Cloud vendors are able to identify and target specific user needs based on customer and user-community feedback. This happens when the vendor develops meaningful relationships with customers and listens to user feedback so that updates to products benefit all customers. Those updates appear in products much more quickly than in a traditional, on-premise application model. Eliminating most of the arduous and complex tasks associated with typical deployed applications helps the customer s IT department. Software that has to be upgraded at the customer s expense, even if the vendor hosts it, does not meet the requirements for a cloud application. Part of the vendor-customer agreement is that the vendor manages updates at no additional charge. Customers must be able to adopt the latest capabilities and features in the updates when they are ready. The update-versus-upgrade approach benefits both the vendor and the customer, Swete says. The customer is relieved from IT-upgrade projects, while the vendor can focus on maintaining its own software. Vendors have a strong technical understanding of the software they have developed, but the on-premise world requires vendors to share this knowledge with customers, which is not an easy feat. Ultimately, vendor-managed updates deliver continuous improvement and allow companies to stay compliant with new laws and regulations. Around 2005, the cloud came into its own as a platform for enterprise applications. Since then, the cloud has changed dramatically. It s no longer considered just a 7

8 storage-and-delivery platform. The cloud now provides the fundamental infrastructure where organisations run their businesses. Many organisations operate and manage IT assets by implementing a smart cloud strategy that meets their current needs and also adapt as the organisation grows. Workday difference Ultimately, cloud applications like those offered by Workday offer huge advantages for IT infrastructure and for business operations. The application is a single piece of software with embedded security, analytics, and integration capabilities. Users have a powerful tool for financial management, HCM, insight applications, talent management, payroll, and spend management. With the right level of attention to application selection, an enterprise can prepare for inevitable changes without disruption to the business or IT infrastructure. Enterprises must examine the business and technology benefits of any cloud application they are considering: reliable security, maximum usability, exceptional user experience, and deep flexibility are critical. This paper is intended to help those tasked with evaluating technology options identify these key things in the vendors they are considering. Most enterprises will have some experience with on-premise solutions, and some will already have dipped a toe into the cloud waters. We want readers to understand, however, that there are differences among different cloud offerings, and a thoughtful approach must be taken when choosing a vendor that is the best fit for their business goals and ability to work with their existing IT infrastructure. Three experienced cloud pioneers contributed to this paper to help businesses examine a potential cloud platform. Stan Swete, Chief Technology Officer, Workday Stan is responsible for Workday s overall technology strategy, direction, and execution. Before he joined Workday, he spent more than 10 years in technology and product executive roles for a large, traditional enterprise software vendor. Stan has led the development of Workday s cloud computing architecture since 2006 and he helped launch one of the world s first real cloud applications. Annrai O Toole, Chief Technology Officer Europe, Workday Annrai is responsible for technology strategy in Europe and he helps to drive innovation globally. He was CEO at Cape Clear Software, which was acquired by Workday in Cape Clear developed the industry s leading enterprise service bus, a technology for integrating applications using web services, which is the foundation for the Workday Integration Cloud. David Clarke, Senior Vice President of Technology Development, Workday David joined Workday in 2008 through the acquisition of Cape Clear Software, where he was co-founder and Senior Vice President of Products. Earlier in his career, he worked in product management leadership at Iona Technologies. Workday Phone: +44 (0) Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders CONSCLOUDAPPSTRATEGY-ENUK