Five Tactics to Kick Start Your Hybrid Cloud Strategy

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1 March 2016

2 Five Tactics to Kick Start Your Table of Contents High-Performance IT Environments Drive Revenue and Agility 3 What is Hybrid Cloud? 4 Five Keys for Hybrid Cloud Success: 1. Start with a Business Problem: 6 n Business and IT Need to Work Together 2. Set a Baseline and Reassess Often 8 3. Plan for Hybrid Cloud Success: 10 n Orchestrate, Automate, Monitor, and Manage n Deploy Workloads Strategically n Secure Your Cloud n Prepare for Change 4. Keep Data in Canada for the Right Reasons Select the Right Provider 17 n Managed Services, Quality, and Ease of Use Are Critical Provider Attributes Hybrid Cloud Will Become the Dominant Cloud Model 19 pg 2

3 High-Performance IT Environments Drive Revenue and Agility Cloud is fundamentally changing the way organizations run their business. Entire industries are already being reshaped as cloud computing disrupts traditional thinking. Headline makers such as Airbnb, Uber, and Indiegogo rely on multiple types of cloud to support their core business. They take advantage of scalability, flexibility, and rapid deployment in ways that best suit their objectives. Leading Canadian organizations are using cloud to modernize their approach and are creating agile, high-performance IT environments that adapt to changing requirements. Canada IT budget spent on cloud 22% Today 35% 2017 IDC s IT operations maturity research shows that organizations with high-performance IT environments are 36% more likely to have double-digit annual revenue growth and can deploy applications 38% faster. pg 3

4 What is Hybrid Cloud? Cloud has evolved immensely over the past few years from simple SaaS subscriptions to a robust set of offerings that include IaaS, PaaS, and private hosted cloud. Put succinctly, hybrid cloud is the orchestration of applications or data across two or more of public cloud, private hosted cloud, private on-premise cloud, or traditional IT to fulfill a given set of requirements. This InfoDocument explores five keys to hybrid cloud success. 55% of Canadian adopters report that hybrid cloud freed up budgets for strategic projects Hybrid Cloud Traditional IT On-Premise Cloud Hosted Private Cloud Public Cloud Outsourced/ Hosted Orchestration Management Automation Monitoring pg 4

5 Activity around all forms of cloud is experiencing steep growth as Canadian organizations spend surpassed $2.8 billion in 2015 and is projected to reach $4.6 billion by Spending on traditional IT will decrease by 20% between 2015 and The rapid shift to cloud is spurred by organizations realizing the benefits of: 4 Fast deployment times 4 Better security 4 Lower costs 4 Instant access to new features to quickly support business change pg 5

6 1. Start with a Business Problem Successful implementations start with solving a business problem the starting point is with sales, marketing, HR, finance, product management, and the business of IT itself. Business leaders have sought out cloud, on their own in some cases, to avoid a traditional IT response that didn t fully meet their needs or time horizon. Next to security, the top 2016 IT challenge for Canadian executives is the ability to adapt and change quickly. In fact, business managers control over technology decisions is growing. Nearly three-quarters of business executives report to IDC that they have more budget and influence over technology purchases than a year ago. 4.5% 47% of LOB budgets are spent on IT of this is allocated to infrastructure systems pg 6

7 Business and IT Need to Work Together IDC s research shows that evaluating and selecting cloud and other 3rd Platform technologies such as IoT is a shared responsibility between IT and the lines of business (LOBs). For most deployments, including hybrid cloud, it is critical for IT to work with the business to ensure good governance, appropriate security risk posture, compliance, and proper budgeting, and to ensure that SLAs are met and that feature sets satisfy end users. IT should gather requirements from across the business as early as possible to help ensure successful deployments. In so doing, IT can prevent shadow usage and the potential problems it can cause with data security, limited features, and costs. But IT shouldn t get mired for too long gathering requirements, and should consider an agile approach to cloud. Release features fast and find out what works and what fails. Do this within a multiyear plan to ensure that tactical deployments align with your larger strategy. 64% Almost two-thirds of IT professionals view cloud use outside of their knowledge as a problem pg 7

8 2. Set a Baseline and Reassess Often The best way for IT and business to work together is to have a common understanding of the current state and a clear vision of future objectives. IDC has found that Canadian organizations that take the time to make a multiyear plan with specific stages in mind outperform their peers in revenue, speed of application deployment, staff efficiency, and quality of service. Ad Hoc Opportunistic Repeatable Managed Optimized pg 8

9 The IDC Hybrid Cloud maturity model provides a basic framework for this discussion. Firms should review each stage from level 1 to level 5 to assess their current approach and how to advance to a more mature hybrid cloud strategy. of firms were at level 76% 1 or 2 in 2015 Managed Optimized Ad Hoc Level 1 Exploration of cloud options. Beginning pilots for specific use cases. Opportunistic Level 2 Gathering input from across the business. Starting cloudenabled IT resources. Still reactive. Repeatable Level 3 Repeatable change, portfolio, financial and other management process across cloud delivery options. Level 4 Measurable effectiveness of processes against baseline for visibility across cloud selection. Level 5 Able to extend cloud success to support new service offerings or approaches to the business. of firms believe they ll be at 70% level 3 or higher by 2018 pg 9

10 3. Plan for Hybrid Cloud Success Because of the various cloud deployment models and the need for orchestration, security, and other options, firms must plan their way to hybrid cloud and not merely take an ad hoc approach. Regardless of industry or size of business, a plan will help ensure success. While the majority of medium and large organizations agree that a plan is good, only 25% of medium and 35% of larger organizations have either a formal or an informal hybrid cloud plan. 60% of organizations want a hybrid cloud architecture and not simply to adopt cloud in an ad hoc way pg 10

11 Hybrid cloud impacts all of IT, including the network, servers, storage, databases, applications, management tools, security, and even end-user PCs and devices. Each layer of the IT stack is built on and interrelated to the other. So, the wrong architecture will create issues, limitations, and cost challenges. Security Role/Access, Ingress/Egress, Encryption System Management Performance, Configuration, Incident Management Apps Vendor, Version Web/DB/Tools Vendor, Version Storage Vendor, Version Server Vendor, Version Network Layer, Segment/VLAN Hybrid Cloud Traditional IT On-Premise Cloud Hosted Private Cloud Public Cloud Outsourced/ Hosted Orchestration Management Automation Monitoring pg 11

12 Quick access to new capabilities is the #1 reason for organizations migrating or replatforming workloads to the cloud Orchestrate, Automate, Monitor, and Manage Legacy IT (and business) operations are mainly conducted manually today with little automation and less orchestration. Use cloud as an opportunity to further the discussion. Orchestrate workflow, capacity, performance, costs, time, and security within and between cloud deployments and/or on-premise. Consider connection points into mobility and other technologies to see where business workflows can likewise be automated or improved. Monitor and manage network, server, storage, database, and application resources against established metrics as much as possible. Start thinking about performance and other metrics for quality of service, change requests, security, and other critical aspects of hybrid cloud. Success will stem from visibility and knowing what is going on across deployments. pg 12

13 Deploy Workloads Strategically Hybrid cloud provides the opportunity to rethink how applications are delivered. Instead of running the full application stack on-premise or in a SaaS environment the stack can be split across PaaS, IaaS, hosted private cloud, and on-premise. Organizations are increasingly using database as a service (DBaaS) run in a PaaS while keeping other application logic on-premise to reduce the challenges of managing, updating, and securing databases. Decide which workload/data goes where, and when. Data classification and application inventory will occur as a key input into making architectural decisions with lasting impact. Classifying data and inventorying applications, although tedious, informs security requirements as well. Business leaders should help with these processes by describing what they do and what they require. Organizations are increasingly using database as a service (DBaaS) run in a PaaS while keeping other application logic on-premise pg 13

14 Cloud Type Comparison Deployment Models Traditional IT Private On-premise Cloud Hosted Private Cloud Public Cloud Hybrid Cloud Appropriate Workloads Workloads that require extreme performance such as low latency trading, OLTP, etc. Workloads on the opposite end that are very slow and/ or steady and tied to on-premise hardware such as print, PC security, and SAN controllers. Workloads that are suited to IaaS and PaaS are typically suited to private on-premise cloud such as test/dev or access to raw storage/server capacity. Workloads that are core to the business and/or have higher security/ compliance requirements such as ERP, dev, backup, raw server/storage capacity. Workloads that aren t core to the business/ differentiated. Workloads with spiky demand. Workloads where 80%+ of features have become commonplace such as , aspects of CRM, accounting applications, and increasingly human resource applications. Most workloads are appropriate for hybrid cloud, other than those that are suited mainly for traditional IT (e.g., OLTP or print), particularly if spikes in demand occur. Architecturally, workloads are able to be split across multiple deployment models creating efficiencies and offering flexibility such as test/dev, database as a service (DBaaS), and recovery (which are essential to most workloads and therefore prime candidates for hybrid cloud). Application modernization by definition is hybrid cloud insofar as it is (partially or completely) moved from on-premise to cloud. Key Questions Are scalability, self-service not an issue? Do you want the cost/challenges of deploying and maintaining onpremise? Does IT need an extended team and/ or good control over workload deployments? Is the ease of use and ease of integration appropriate for IT/ business capabilities? Is there enough finetuning to features/etc. available? What dependencies might there be across deployment models e.g., identities, connectivity, recovery point and recovery time objectives (RTO/RPO, etc.)? Benefits Total control Highly secure data and access through self-service deployment. Access to skillsets/ resources that aren t available internally but with usage-based pricing. Rapid deployment, scalable, pay per use. Flexibility, better alignment of workloads to resources, user satisfaction with more options/choice. pg 14

15 Secure Your Cloud Security underlies all that IT and business do. Security of the cloud is shared by the provider and the customer. In a SaaS environment, most aspects of security are conducted by the provider. For tasks such as user account/credential management, the customer will most likely take on portions related to HR records such as employee termination. For PaaS and IaaS there are more layers that the IT department will need to focus on. Maintaining patches/configuration of an application sitting on top of a database in PaaS will be taken on by the customer. In IaaS, typically the provider secures up to the hypervisor, where the rest of the stack still requires securing. In a SaaS environment, most aspects of security are conducted by the provider For PaaS and IaaS, there are more layers that the IT department will need to focus on pg 15

16 As hybrid cloud truly sets in and becomes an architecture spanning clouds and onpremise the need for a broader security strategy increases. Point solutions and a tactical approach may work, but scaling to more users, more applications, more devices, and so forth will be much easier with a plan in place. To that end, at a high level, consider identity management (e.g., federation, password management, etc.), vulnerability management (e.g., patching, updating, compliance), traditional ingress/egress filtering (e.g., firewall settings), DLP (e.g., limiting export of specific data such as financials, etc.), and encryption. Do this across hybrid cloud. For example, manage user credentials for easy access wherever data and applications may run. Know what traffic is leaving and entering your IaaS, PaaS, and other deployments at all times to avoid data and other loss. Prepare for Change Change management for IT staff is a top priority. 58% of IT professionals in small firms don t know how their jobs will look because of cloud. Two out of five of midsize and large firms IT professionals are being redeployed, but what exactly will their job functions be? Plans made at earlier stages will inform how tasks and careers will change in the future. Business roles and responsibilities may alter too as cloud analytics, use of mobility, and other tasks become a component of what IT is delivering. 58% of IT professionals in small firms don t know how their jobs will look because of cloud pg 16

17 4. Keep Data in Canada for the Right Reasons Decisions regarding the many hybrid cloud options are still heavily swayed by data residency concerns only security ranks as a higher priority. Canadian cloud providers are growing rapidly and are able to store data domestically. Having someone to speak to in-country is invaluable, but data residency in Canada has taken on more attention than it should have. After classifying data, it is likely that 80%+ of it is not subject to U.S. or other compliance rules. Keep data in Canada, but for the right reasons. 47% of IT managers of 42% business managers want their data to reside in Canada in whichever hybrid cloud options they choose pg 17

18 5. Select the Right Provider Organizations want a trusted advisor to help plan for and assure predictable results from hybrid cloud. Over two-fifths of Canadian organizations want a provider that has hybrid options across both private and public cloud. It is critical that the provider offers a balance between provider managed/operated services and customer self-service options. Also, expertise and breadth of professional service become more significant for hybrid cloud decisions. This is because, despite greater flexibility, there are more deployment decisions, capacity balancing options, migration opportunities, financial, and other processes to plan for. Consequently, upfront consulting engagements for business/ strategic planning, governance, architecture (e.g., enterprise and information), and design take on greater importance. 63% of Canadian organizations want one single provider to handle their cloud needs pg 18

19 Managed Services, Quality, and Ease of Use Are Critical Provider Attributes IDC believes that as hybrid cloud evolves we ll see growth in the use of managed services as IT seeks to offload performance, security, and other monitoring or management activities in order to focus on new initiatives as opposed to tasks related to keeping the lights on. 22% of IT In addition to professional services for hybrid cloud, the quality of the underlying cloud services themselves is make or break for any relationship. Initially, quality was associated mainly with performance metrics (e.g., how many 9s of availability), successful compliance audits (e.g., SAS 70, ISO 27002, PCI), and breadth of features. These factors remain baseline must-haves. Organizations are adding to this list of hybrid cloud musthaves and are now looking for simplicity/ease of use, ease of configuration, ease of integration with existing IT/ other services, and orchestration capabilities. 38% of LOB managers want a managed service provider to help offload monitoring, security, and other management duties across hybrid cloud pg 19

20 Hybrid Cloud Will Become the Dominant Cloud Model IDC predicts that hybrid cloud will become the dominant cloud operating model in Canadian enterprises over the next two to three years. Canadian organizations need to develop hybrid cloud strategies and plans, invest in training and change management, and partner with credible providers that have the depth of skills required for success. For more cloud insights and market trends, please visit telus.com/cloudinsights For more information on TELUS Hybrid Cloud, please visit telus.com/hybridcloud pg 20

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