Putting a Price Tag on Cloud Agility. Series: Because IT Means Business
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1 Putting a Price Tag on Cloud Agility Series: Because IT Means Business
2 Meet our Speakers Penny Collen Financial Solutions Architect Cloud David Linthicum Cloud Computing Visionary, CTO Cloud Technology Partners, Deirdre Mahon Chief Marketing Officer Cloud 2
3 Key Topics for Today The value of Agility How to balance business agility with IT control An approach for immediate insights Q&A 3
4 Signs that Business Loves Agility Shadow IT Bi-modal IT is a Reality Cloud Spend is $161B (2015) 4
5 Putting a Price Tag on Cloud Agility Because IT Means Business 2015 Cloud Technology Partners, Inc. / Confidential 5 v
6 Value of Agile IT Cost Savings Strategic Value Calculating the Value of Agility 2015 Cloud Technology Partners, Inc. / Confidential 6
7 Cloud significantly improves services delivery Agility Cost Efficiency Quality Increased velocity of innovation Supports faster time to market High elasticity Faster and easier migration from data center Faster and easier integration of new acquisitions Increased overall IT efficiency Reduced unit cost Increased development productivity Key improvement levers Standardization Highly automated Simplified procedures and self service Increased utilization through resource sharing High degree of component re-use Higher resiliency and availability Improved maintainability of infrastructure and applications Consistency among applications Increased levels of Security as bar is raised to support Publicly hosted applications 2015 Cloud Technology Partners, Inc. / Confidential 7
8 Define a Number of Measurable Targets for the Cloud Criteria for Metrics Measurable for both Cloud and non-cloud environments to enable comparisons and document benefits Cover Infrastructure-as-a-Service (IaaS) as well as Platform-as-a-Service (PaaS) Exemplary metrics Enable us to set targets for the Cloud program Current (non-cloud) 2015 Target (Cloud) Scope Percentage of logical servers allocated to Cloud (Iaas and PaaS) 0% 50% Percentage of storage (Terabyte) allocated to Cloud 0% 50% Agility Provisioning time for standard IaaS ~5 days 1 hour Provisioning time for standard PaaS ~ 5 days 1 day Cost efficiency Average CPU utilization ~25-30% ~50% Average storage utilization TBD 70% Percentage of servers that are self-provisioned 0% 40% Percentage of idle servers TBD 5% Application component re-use (PaaS) TBD TBD Quality Application availability ~98-100% 99.9% IaaS and PaaS Right first Time provisioning (Standard environments) 75% 99%
9 Business Benefit / Cost (USD) Business Case ROI Moderately Complex Data Processing Application Migration Production Implementation Planning 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 ROI COST 500,000 0 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Time * Assume current benefit = $3M and cost to migration = $3.6.M on top of current operating cost over 18 months 2015 Cloud Technology Partners, Inc. / Confidential 9
10 Life without Agility Time to Value / Business impact Higher speed/higher value Self-servicing / Shadow IT Centralize the value decisions Sprawl / Anarchy / Waste IT becomes a hindrance 2015 Cloud Technology Partners, Inc. / Confidential 10
11 Business Agility is the Objective 2015 Cloud Technology Partners, Inc. / Confidential 11
12 Balancing Agility and Control Moving to Instant Feedback Instant Budgeting & Forecasting Information when and where needed Instant Value Assessment Value metrics calculated on-demand Instant Cost Estimation/Forecasting Making predictions based on the best data 2015 Cloud Technology Partners, Inc. / Confidential 12
13 Continuous Agility Adding Control Points Data points are key Metrics are key Distributing across all stakeholders Accountability Who does what? How effective is it? 2015 Cloud Technology Partners, Inc. / Confidential 13
14 Putting Agility into Practice
15 Meet Cloud Cruiser Founded in 2010 Focus on hybrid cloud metering & management Customers: large enterprises & cloud service providers 15
16 Top pains we hear from customers Our demand and supply is consistently out of balance Our finance, business and IT teams are not aligned I have no clue of the level of shadow IT but it's growing Budget reviews are always a fire-drill IT Finance Business 16
17 Agility leads to 49% Of aggressive adopters 49% of cloud enthusiasts Entered a New Market Part of Acquisition / Merger 35% of Moderates 29% of Moderates Harvard Bus Review 575 Respondents
18 The Pace of Agility BIZ IT FIN Request for Dev Services (ecommerce site for new product) Research Resources Budget Software licenses Bandwidth / skills Reviews, meetings, reports Review Budget Proposal Contracts Negotiation No Shared Visibility No knowledge on which services? Budget status unknown Timeframe? Get in line... 18
19 Barriers to Agile IT Multiple cloud providers Multiple service offerings Disparate pricing structures Chaos Agility Different service levels Gap between IT Business & Finance 19
20 Business + IT Agile Together Budget status known Known cloud providers Historic spend on prior projects Spend by provider accessible Comparative pricing by provider Forecasts visible Agility 20
21 Cloud Cruiser s Solution ANALYTICS FOUNDATION IT Business SELF-SERVICE REPORTING COST TRANSPARENCY AUTOMATED CHARGEBACK BUDGETS & ALERTS AUTOMATED BILLING DECISION ANALYTICS TRENDS & FORECASTS PROFIT ANALYSIS MULTI-SOURCE COLLECTORS FLEXIBLE DATA TRANSFORMATION FLEXIBLE PRICING CUSTOM DASHBOARDS 21
22 In a Hybrid Cloud Environment CHALLENGES multi cloud platforms (private/public) add complexity no standard units of measure data integrity and security at risk with mix of spreadsheets and bills no way to determine best workload placement SOLUTIONS Service Provider Cost Breakdown report shows where you re spending data normalization based on common bundling of services secure, centralized repository of all cloud usage data Potential Savings report identifies areas for optimization 22
23 CloudSmart-Now Packaged offering of core product Predefined quick-start templates Support for Big 5 clouds Automated organizational mapping Pass-through / Benchmark Rates Top requested reports 23
24 Most Requested Reports Department Cost Breakdown Service Provider Cost Breakdown Top Spenders Potential Savings Standard Invoice RI analysis by department 24
25 CloudSmart-Now gives you the answers Where do I start? & What resources should I be collecting? How should I map my data? How do I track capacity and usage trends across multiple providers? How can I see both my private and public usage and costs together? 25
26 CloudSmart-Now - Trial Offer See what your data is trying to tell you for FREE! 26
27 Key Takeaways Alignment across all functions is key Cloud Adoption without Usage Metering is narrow & short-term Visibility is Critical to Fast Decision-making Data Accuracy rules the day Start measuring with new cloud projects 27
28 Q & A 28
29 Thanks for joining! Let s connect soon! info@cloudcruiser.com Look for Part 2 in our Series: Cost Transparency: I can see clearly now November 5 10:00am PST nine Software Inc.
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