THE FUTURE BELONGS TO THE FUTURE

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1 HYBRID CLOUD THE FUTURE BELONGS TO THE FUTURE Whitepaper, November 2014 Whitepaper Hybrid Cloud Management 1

2 The Future belongs to Hybrid Cloud Structures 1 CLOUD AS AN ENABLER FOR NEW BUSINESS MODELS Cloud Computing is an innovative form for flexible and demand oriented usage of IT Services all offered in real-time in a simple manner as a service over the internet. The paradigm shift within the IT Industry, away from inflexible usage of IT Infrastructures and toward dynamic sourcing of Information and Communication Technology (ICT) Services from the cloud, leads to a change of the cost structures by introducing on-demand-usage and pay-as-you-use. Even more profound is the introduction of concept of IT as a competitive business advantage. Cloud Computing offers possibilities to improve and to fundamentally re-shape exisiting business processes. Cloud Computing allows the sourcing of IT Services quickly and without significant investment. This is particularly relevant for Corporate CIOs who seek flexibility within their ICT Landscape and seek to avoid long-term investment. In this context, IT becomes a corporate tool to support and optimize business processes, which are being driven by an increasingly digitalized environment. Cloud Computing has a strong influence on the overall performance of an enterprise by positively impacting the agility of accessible IT Infrastructures. Quality improves, capital costs decrease and personnel are able to focus on thier area of highest utility. In a corporate environment of increased digitalization, Cloud Computing offers huge potential for optimization of corporate processes. Whitepaper Hybrid Cloud Management 2

3 Cloud Management Software The key to full integration of Hybrid Clouds Companies have come to appreciate the opportunities offered by the Cloud. Many companies have concluded a theoretical assessment of Cloud Computing and are now deployed in the Cloud or working to get there. In more than 40 % of German companies, Cloud Computing is a given and indisputable part of business operations. The most relevant usage is still Private Cloud Infrastructure. However, independent consultants estimate that Cloud Technologies accessed via Hybrid Cloud Infrastructures will reach wide operational adoption in the next four to eight years. Until recently, corporate environments have been unable to fully leverage the Cloud due to insufficient support at the Cloud Management level. This caused IT-Managers to avoid to moving critical applications and data into a Hybrid Cloud. Management within a sole Private Cloud Environment was possible, but hybrid solutions lacked agility and this significantly reduced the advantages that might be gained. As Hybrid Cloud reaches a level of mass adoption, this situation will change. Multi-Coud Management Software with security-mechanisms and role-based user concepts in combination with security features on enterprise levels will play a key role for such a development. This trend will be further enhanced by the introduction of the first international marketplace for IT-Resources, triggering standardization of IT-Sourcing concepts and ease and transparency for the sourcing of external Cloud Capacities. 1.1 OPERATIONAL MODELS OF THE CLOUD Since the appearance of Cloud Computing in the market, several different operational models have been established. Experts now divide Cloud Computing into three variations, which differ from each other based on usage. Private Cloud In the Private Cloud, both the internal vendor of Cloud Infrastructures and the user are all inside one corporate environment. Private Cloud is often the simplest solution, as it builds a closed-shop environment for the IT Structure. Stored data remain entirely within the organization, avoiding legal compliance issues. Whitepaper Hybrid Cloud Management 3

4 Public Cloud The Public Cloud approach is leveraged by enterprises who want access to additional infrastructures and services. In comparison to a Private Cloud, internal operational efforts are avoided. In this case, the infrastructure is provided by professional Cloud Providers and shared amongst several clients. Access to a Public Cloud is provided to an unlimited amount of users and also to an unlimited number of enterprises. The physical infrastructure consisting of server, storage, network equipment and data centers is the property and responsibility of the Cloud Provider. The advantages are low capital expenditure and maintenance costs for the user. The largest weakness lies in data security concerns. Hybrid Cloud The Hybrid Cloud combines the possibilities of Cloud Service integration into corporate IT and connections between Public Clouds and Private Clouds. In most cases, enterprises use Hybrid Clouds in order to selectively file data according to internal classifications. This effort leads to reduction of internal capacity usage. Less sensitive data such as test data might be located in the Public Cloud whereas more sensitive real-time data is stored in the Private Cloud. Another great use case for a Hybrid Cloud is a corporate Fail-Over-Strategy to ensure access to Cloud Capacities in situations where internal capacities reach their maximum. In general, Hybrid Cloud Solutions offer corporations an efficient way to expand internal capacities and capabilities in manner that is sustainable and cost sensitive. Special Case: Community Cloud From the origin of the Hybrid Cloud, a new operational Cloud Model is emerging. This new model follows industry specific requirements and has come to be referred to as The Community Cloud. In this model, several different companies in a specific industry create a new community model based on their own individual Private Clouds. Specific IT-infrastructure elements such as computing capacities, data storage or network capacities are accessible throughout the Cloud to different user groups within the community. At the center of this type of Cloud Structure is a Community Marketplace for Platform-as-a-Service (PaaS) and Software-asa-Service (SaaS) offering to address industry specific needs. In the context of industry related value chain, Community Clouds support efficiency gains through the collaboration of different companies representative of an industry. Therefore, Community Clouds will be a viable element in the support of a further establishment of Hybrid Cloud Structures. Whitepaper Hybrid Cloud Management 4

5 1.2 VALUE CREATION WITH HYBRID CLOUD STRUCTURES Fundamentally, it can be said that Hybrid Cloud Solutions have two major implications for enterprises. First, they help companies expand and increase their flexibility in terms of Cloud Capacities. Next, they trigger efficiencies through collaboration within the Cloud. The decision to move into the Cloud carries high expectations. These expectations are valid given the fact that the economic advantages are tremendous. Cost Savings Cost reduction through decreased capital expenditure and maintenance costs. Less need for internal infrastructure in combination with an increased automation in accessing infrastructure services. Efficiency Operations management based on rules and standards raises business efficiencies. Fully automated operations management can reduce investment costs by as much as 75 % and maintenance costs by 56 %. Flexibility Applications can be accessed and used within immediately. Maintenance is also significantly reduced. Control Security and access control can be increased via rule-based user administration with defined availability and security levels. Scalability According to a changed demand, user will be easily and fast in a situation to increase or decrease needed capacities. In terms of scalability and flexibility, Hybrid Cloud Solutions do show their strengths. In comparison, Private Clouds do not show the same flexibility and scalability, as they are dependent on fixed on capacities and/or contractual agreed resources from Private Cloud Providers. In consequence Hybrid Cloud Models do not need down capacities for peak periods as the have access to basically external unlimited access to needed capacities and infrastructures. In terms of scalability and flexibility, the advantage of the Hybrid Cloud are becoming obvious. Here Private Cloud Models are significantly disadvantaged, since they depend on own or contracted resources of Private Cloud Provider. Whitepaper Hybrid Cloud Management 5

6 An inevitable Provision of resources during peak loads is not necessary within a Hybrid Cloud Environment, as they do not solely build on their own Cloud Infrastructures. With the increasing integration of the world markets and thus, a higher fluctuation in demand, especially the importance of flexible usage and additional resources grows. Here the Hybrid Cloud comes into play: As an extension of the Private Cloud, Hybrid Clouds are able to trap peak loads quickly and inexpensively. Many companies are about to discover this advantage and make use of it more and more in their daily business. The proportion of Hybrid Cloud Solutions in enterprise environments therefore is continuously growing and increasingly applied. This development has a strong impact on the entire Cloud Market, which is about to align to the increased demand for freely usable Cloud Resources. New Cloud Business Models facilitate the need-based buying and selling of Cloud Capacities and reduced long-term CAPEX. 2 BROKERAGE NEW SOURCING MODELS Changing patterns on the international Cloud Market is allowing the Hybrid Cloud Model to unfold its full potential as an innovation driver for the entire industry. New and specialized resource models are beginning to appear on the market. These new concepts enable enterprises to establish easy access to Whitepaper Hybrid Cloud Management 6

7 available Cloud Resources. In the context of Cloud Brokerage, an additional step is being taking by the cloud marketplace, the Deutsche Börse Cloud Exchange (DBCE). This new market platform enables IT Resources to be marketed and made accessible to other cloud users. As an intermediary between suppliers and customers, the Cloud Marketplace is assuming the handling of Cloud Resources between vendors and purchasers. Such marketplaces contribute to the settlement of binding standards within the Cloud Industry. Cloud Trades and Prices become more transparent and comparable for end users. This automatically leads to long-term reduction of transaction costs and lowers barriers to switching from one provider to another. This kind of standardized market place will also drive its participants to address compliance requirements and create new opportunities to fulfill these requirements. In addition, simplified handling structures due to standardization helps increase data security throughout different data centers. Advantages of Brokerage Simple, vendor-independent sourcing of comparable Cloud Services Establishment of market standards Lower transaction costs Easy change of provider no vendor lock-in Higher efficiency of owned cloud-capacity through resale of excess capacity Ensure data protection basics Better financial metrics exchange CapEx / OpEx Increased data security through simple and transparent handling IT Managers as Brokers The pressure on IT Managers increases, as they are required to fulfil the role of an internal service provider for their company. The growth of digitalization within enterprises further raises the expectation that internal IT will act as a supporter and optimizer for digital business processes. New opportunities due to evolving Cloud Markets provide opportunities for IT Managers to promote themselves as innovators by offering new IT Service Sourcing Concepts. The new paradigm has the IT Department acting as a Cloud Service Broker in accordance with the needs of end users. This is structured as a self-service-oriented model (Pay-per-use), and is familiar to Whitepaper Hybrid Cloud Management 7

8 the IT Professionals experience with the Public Cloud Environment: To provide and offer Cloud Services. This kind of Cloud Service Broker Model makes an important contribution to increased standardization in enterprises and leads to greater efficiency and speed in provision of data or applications. Hybrid Cloud Structures also add an enormous benefit of scalability. This in turn, grants the businesses of today more freedom and flexibility. Therefore as IT-Managers increasingly move toward implementation of Hybrid Cloud Strategies to orchestrate data and workloads between the Private and Public Clouds, they become brokers for internal and external IT Services. Security and Privacy Legal Requirements Some businesses are still skeptical about Cloud Computing. These companies often lapse into a common prejudice that the security of Cloud Services might be less secure than an IT Structure governed by their own employees. However, research shows that the security of public Cloud Services is often higher than within a Private-Cloud Environment. Experts from the National Initiative for Cyber Security (NIFIS) state that internal employees are responsible for at least half of all security incidents at a workplace. If companies eliminate potential risks to Cloud Security up-front, they are able to increase the safety level significantly as compared to a sole Private Cloud Infrastructure. The most important security aspects of Cloud Solutions are: 1. Management of identities with roles, rights and access control 2. Endpoint Security 3. Security of IT Systems, IT Landscape and Administration 4. Secure communication within the Cloud and Service Orchestration 5. Protection of IT Systems on behalf of the Service Provider 6. Service Management, Incident Management and Availability 7. Process Integration and Migration 8. Security and Vulnerability Management 9. Contract design and verification 10. Compliance Management Companies must have a holistic view of IT Security in order to keep the external and internal risks of Cloud Computing to a minimum. All possible sources of security risk should be identified and mitigated by a structured protection approach. This is not only about deploying current technologies, but about Whitepaper Hybrid Cloud Management 8

9 being prepared and be ready for new developments. Cloud Computing risks can be significantly reduced by installing security protections in different technological and procedural areas. Some of these security protection aspects are addressed by professional multi-cloud Management Systems. These multi-cloud Management Systems are built on a service-oriented architecture and are easily embedded into an existing IT Infrastructure. Many IT Departments have already moved toward Hybrid Cloud Structures for non-critical IT Services. These could be temporarily accumulated for high load peaks brought on by complex calculations, application development or the use of CRM and ERP functions. Multi-Cloud Management Systems combine different existing Cloud Models in a Hybrid Cloud, so that a strict separation is no longer necessary. However, they do require new means of data classification and extended role-based Identity Management. Location factors play a vital role in security It is also vital to consider the location of the Cloud Infrastructure. Not all Cloud Enterprise Infrastructures are based within Germany and/ or the EU. Security risk factors based on infrastructure locations are as follows: Legal compliance of data protection and privacy legislation Country-specific deviations for the protection of intellectual property Risks due to government intervention as undetected access or interception Prohibitions or restrictions on the use of security technologies such as encryption Presence or absence of a safety culture Different tax framework for cloud locations with different tax rates and cost structures 3 CONCLUSION Hybrid Clouds are the unifying element or the integrating element between two Clouds. These are usually between an internal and an external Private Cloud. The demand for Hybrid Cloud Structures will increase in the future and create new opportunities and applications for businesses. Coincidentally, the importance of efficient cloud management will increase, especially in situations where different Cloud Structures are used in parallel. Hybrid Clouds are formed by software and hardware appliances that allow applications and data to more easily migrate between connected clouds. Many applications depend on Identity Management Systems for the proper authentication of Whitepaper Hybrid Cloud Management 9

10 users. Such dependencies often prevent the migration into external Clouds. Professional Multi-Cloud Management Systems now offer solutions for these kind of problems. 4 REQUIREMENTS FOR MULTI-CLOUD MANAGEMENT SYSTEMS Making the complexity of a Cloud Environment manageable on an infrastructure level requires administrative and management tools. Specifically, Multi-Cloud Management Software. This software plays a vital role in large-scale acceptance of Hybrid Cloud Solutions in enterprises, as it ensures interoperability, privacy, data security and fulfillment of compliance regulations. Multi-Cloud Management Software manages the complexity of data migration from private to external Clouds and also supports corporate security governance in an efficient and automated manner. Acting as central interfaces between hardware, middleware and software components, this software is an essential part of the intelligence of a cloud environment. It ensures efficient, safe and user-friendly implementation of various kinds of hardware and software components. Implication of ITC control: Automation of IT services for quick adaptation to business needs. Personalized, business-relevant security policies, Enforcing the application deployment Protects investment in current and future technologies with broad multi-vendor and multi-cloud support and scalable design Improved IT services through lower costs Multi-Cloud Management vendors must also meet the demand of cloud app stores. Large companies have already discovered Cloud app stores and leverage them for the deployment of virtualized infrastructure capacity and the development of components or complete Cloud-Services to make their company more agile and user-friendly. Whitepaper Hybrid Cloud Management 10

11 Checklist: Requirements for Multi-Cloud Management Software Automated provisioning of computers, storage, memory and network resources Support for multiple virtualization technologies and cloud stacks (i.e. VMware vsphere/ VCloud Suite, Citrix XenServer, Microsoft SCVMM / Hyper-V, OpenStack) Self-service portal and graphical user interface (Multi-Level) Multi-tenancy architecture Relocation of virtual images on other hypervisors Multi-site data center and infrastructure management Role-based user concept and security features enterprise-class Workflow Engine and policy management to ensure compliance with governance and legal conditions Adaptation and management of various SLAs / SLA classes Pricing and Billing Engine Real-time reporting and dashboard Hybrid Cloud enablement ZIMORY: EVOLUTIONARY APPROACH TO MULTI-CLOUD MANAGEMENT Zimory has chosen to take a new and evolutionary and path due to the significant demand for skills necessary to managing Multi-Cloud Structures. The most important characteristic of the Zimory solution is an open architecture and the creation of a technology eco-system to address companyspecific requirements. The Zimory Software forms the technological backbone of the new Cloud Marketplace created and managed by the Deutsche Börse Cloud Exchange (DBCE). The Zimory Software has been designed to manage Cloud-Computing Infrastructures as a Service (IaaS) for the Marketplace Clients. Based on the requirements and security levels, companies participating in the marketplace will need to have established either a Private Cloud or Public Cloud Infrastructure. Zimory also supports the combination of the Hybrid-Cloud and Virtual Private-Cloud Structure Models. ECO Toolbox Zimory Software has been designed in an open way, making it easier to integrate technology partners into an eco-system (Toolbox). There are a variety of specialized software solutions for individual aspects, each of which allows the adaptation and integration of today's proprietary systems. This allows users to avoid "vendor lock-in" dependency upon specific systems and software providers. Via its Toolbox, Zimory offers interfaces to the most common ERP systems. Zimory ECO addresses all relevant aspects of an efficient Multi Cloud Management software solution, providing tools for Billing, Identity Management, Service Automation, Asset Management, IaaS stack, Analysis, Policy Management and ready for Brokerage on the DBCE Cloud Marketplace. Whitepaper Hybrid Cloud Management 11

12 Billing Open interfaces permit the multi-cloud management software to access the most common ERP systems. It is also open to a wide range of billing applications to allow easy integration into existing enterprise structures. In addition to the adaptation and management of SLAs or SLA classes, individual reports and analysis-tools allow transparent overview of costs and/or utilization of the system, enabling an automated IT Cost allocation for shared IT Resources. IaaS Stack Zimory s innovative Multi-Cloud Management Software is based on a highly flexible and adaptable Software Architecture. It acts as a network layer and allows today's heterogeneous Cloud Technology Landscapes to harmonize and open up to the IaaS stack is in use. IT Managers have the ability to provide all services necessary for their workloads at their fingertips. Virtual data centers and software based data center services significantly reduce complexity in the deployment of IT Infrastructure and helps in consequence the corporate IT Department keep up with the development and changing needs of their business. The heterogeneousness and openness of the Software Architecture, that separates user and provider from each other and in consequences allow a horizontal structure, is a distinguishing characteristic of the software solution. This separation of OSS (Operation Support System) and BSS (Business Support System) has an advantage in that each form of virtualization can easily and safely be connected. The software provides for automated provisioning for computer, storage and network resources and is already prepared for a future connectivity commercially and technological for virtualization technologies (i.e. VMware vsphere, Citrix XenServer, Microsoft SCVMM) and Open Source (i.e. OpenStack, CloudStack, Eucalyptus). Zimory s Software Solution combines and connects an unlimited number of Public Clouds and Private Clouds (i.e. Amazon Web Services etc.). Identity Management The Management Software must allow an authorized, flexible role-based access control. It makes the assignment of different functional accesses and pre-defined user levels possible. Administrators are able to group different users of an organization. For example, this can be done by department or subsidiary. Each group has an isolated virtual resource, independent LDAP-authentication, specific policy controls and their own catalogs. The Identity Management provides enterprises a level rolebased user concept in combination with safety features for proprietary and open source solutions. Whitepaper Hybrid Cloud Management 12

13 Service Automation The Zimory Technology turns virtualized Data Centers into Cloud Self-Service Infrastructures. Users are able to manage and control these Cloud Self Service Infrastructures completely independently. The Zimory software enables the provisioning of servers within minutes via self-management. The software Solution provides all business functionalities to a Service Manager. From the creation of a product catalogue over the entire billing of services to the effective management of user policies- all offered by the software. Zimory Cloud Suite adapts to different customer requirements. It completely manages provision of easy-to-use software-based virtual Data Centers and Data Center Services in a matter of minutes. Virtual Data Centers allow the virtualization of Computing Resources, networks, storage and security. The technology consolidates all related services in pools and abstracts and automates these services. With the Zimory Technology, IT Managers are put into a situation where they easily can deploy a complete operational infrastructure, without having to worry about the physical configuration of the hardware. Zimory is based on the currently available management tools from different manufacturers and integrates those into its own management system. Asset Management Asset Management is the area that describes services for the management of IT Resources, hardware and features. In a multi-cloud management scenario, the system uses a policy-driven approach with an integrated control for software-based resource allocation. Zimory provides for the management of configuration items in a CMDB database. All operational resources within IT are collectively described as Configuration Items (CI).In this context it denotes the existence and interaction of managed objects. The CMDB aids Service Support and Service Delivery. Analysis The Hybrid Cloud Structure of a company is usually a highly complex, heterogeneous environment. The standard here is a mix of older, virtualized, Private and Public Cloud Structures. Naturally, the effective and efficient management of these Data Centers is a challenge for IT Managers. The analysis tools are able to provide the current status of services and evaluate changes in real-time. Likely performance and availability problems can easily be identified in advance by trending forecasts. This leads to a lower MTTR (Mean Time To Repair) and improves service quality. By continuously analyzing performance, predictive capacity planning and optimization of IT Resources is possible. It also allows the creation and collection of user defined reports about cloud workloads. Policy Management Security is now a requirement that goes beyond the pure ICT Infrastructure. Furthermore, integration of business processes, departments and individual employees of a company have become components Whitepaper Hybrid Cloud Management 13

14 of a comprehensive security strategy. A holistic security management system combines basic compliance guidelines with governance and legal requirements as well as technical safety and resource availability. During the deployment of cloud services, the Multi Cloud Management Software uses a policy-driven approach integrated with control of software-based security and resource allocation, thereby automatically enforcing predefined IT Policies. Brokerage To meet the demand for cloud services quickly and easily, Zimory enables a straightforward ordering of IT resources through the Cloud marketplace German Stock Exchange Cloud Exchange (DBCE). Standardized processes increases the processing speed so that companies are able to respond quickly and with flexibility to changing demands. 5 OUTLOOK The construction of Cloud-Marketplaces and app stores offers companies new opportunities to source Cloud Services and to use them strategically for internal business processes. An effective and comprehensive strategy is necessary for the management of various Cloud Services and structures. Professional Multi-Cloud Management Software helps harmonize various Cloud Environments and offers solutions for all key management areas. Zimory Software is designed to be open so that technology partners can easily be integrated in an ecosystem (Toolbox). This allows the adaptation and integration of all today's popular proprietary systems and avoids "vendor lock-in"-dependencies to specific manufacturers or systems. Organizations receive a greater variety of technological offerings and have the opportunity to choose from all necessary management tools. Whitepaper Hybrid Cloud Management 14

15 A simple user interface provides all the relevant information about the cloud-deployed capacities. Multi-Cloud Management Systems have the potential to help the Hybrid Cloud achieve its next great breakthrough. Zimory`s roadmap to initiate and foster a standard by supporting the On-boarding process of the Deutsche Börse Stock Exchange (DBCE) and create an open technology platform is an additional driver behind this breakthrough. 6 ABOUT ZIMORY Founded in 2007, Zimory develops multi-cloud management software for Cloud Service Providers and large enterprise customer and establishes business models for the operation of Cloud Marketplaces such as the Deutsche Börse Cloud Exchange. Zimory also provides services for Hybrid Cloud Solutions. The company s vision is to deliver key technology necessary for a fundamental change in the Cloud Market by creating a new market standard in combination with an open technology approach. Zimory is a leading cloud orchestration technology company with an unparalleled understanding of the market situation and the competency to analyse the brokerage and Hybrid Cloud Market. Zimory s current product suite includes orchestration software solution and services, which help to combine and centrally manage diverse Cloud Infrastructures. Additionally, Zimory is the technology enabler of the Deutsche Börse Cloud Exchange AG (DBCE). The DBCE is a daughter company of Zimory and the German Stock Exchange (Deutsche Börse). Zimory is headquartered in Berlin and has development centers in Erfurt and Prague, Czech Republic and a US subsidiary Zimory Inc. in New York City. Whitepaper Hybrid Cloud Management 15

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