Hybrid Cloud Mini Roundtable. April 17, Expect Excellence.

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1 Hybrid Cloud Mini Roundtable April 17, 2013 Expect Excellence

2 Today s Agenda What to expect today Introductions Plus, why are you here this evening? What is Hybrid Cloud? Why Hybrid Cloud? Some benefits Quantifiable Economics Demand Graph Indications Hybrid Cloud Enablement 5 Factors Overall Architectural Framework Simplified (and familiar) Transformation Methodology DivIHN s Approach & Value Hybrid Cloud Considerations General Risk Factors Architecture Finance Appendix Additional Cloud Definitions 5 Enablement Factors a further breakdown About DivIHN 2

3 What is Hybrid Cloud? 3

4 What is Hybrid Cloud? 4

5 Another Way To Look At It.. 5

6 Hybrid Cloud Definition Hybrid Cloud is an environment that spans one or more public clouds as well as one or more private clouds and/or other internal environments 6

7 Why Hybrid Cloud some benefits (Gartner). Hybrid cloud computing extends the benefits that can be gained by using cloud computing: Internal private cloud computing can help maximize asset utilization. Hybrid cloud computing can maximize the value and balance the use of internal assets and external services (e.g., deploying services internally that could also be deployed to public cloud services when the internal capacity is available) while enabling better scalability. Cloud computing can help with cost efficiency. Hybrid cloud computing can maximize cost efficiency through competition and automated arbitrage (perhaps not as fluid as a financial market, but more fluid than manually choosing one provider over another). Private cloud computing ensures isolation. Hybrid cloud computing allows an enterprise to balance isolation, cost and scaling requirements. Cloud computing can enable high availability and resiliency. Hybrid cloud computing can improve resilience and disaster recovery by leveraging multiple providers. Cloud computing can introduce new functionality quickly. Hybrid cloud computing makes it easier to leverage new functionality quickly, with better agility. Cloud computing ensures a low barrier to entry. Hybrid cloud computing can help an enterprise build-in an exit strategy. 7

8 Quantifiable Economics of Hybrid Cloud Life Cycle Costs (LCC) and Economic Summary Booz Allen Hamilton Exhibit 1 LCCs and Economic Summary Costs/Economic Metrics Investment Phase Costs FY1-3 (FY-1 M$) Status Quo: 1,000 Server (Non-Virtualized) Environment Scenario 1: Public Cloud Scenario 2: Hybrid Cloud $0 $3.0 $6.1 $7.0 O&S Phase Costs FY1 13 (FY-1 M$) $77.3 $22.5 $28.9 $31.1 Total LCCs (FY-01 M$) $77.3 $25.5 $35.0 $38.1 Economic Metrics: NPV (FY-1 M$) N/A $41.8 $33.7 $31.1 BCR N/A DPP (Years) N/A Scenario 3: Private Cloud Net present value (NPV) is calculated as each cloud scenario s discounted net benefits (reduced O&S costs relative to the status quo (SQ) environment s O&S costs). A positive dollar figure indicates a positive economic benefit versus the SQ environment. NPV is an absolute economic metric. Benefit-to-cost ratio (BCR) is calculated as each cloud scenarios discounted net benefits divided by it s discounted investment costs. A number greater than 1.0 indicates a positive economic benefit versus the SQ environment. BCR is a relative economic metric. Discounted payback period (DPP) reflects the number of years (from FY1) it takes for each scenario s accumulated annual benefits to equal it s total investment costs. Note: This model assumes hybrid cloud scenarios closer those for private cloud, assuming 75% migration to private cloud and 25% to public cloud. If assuming the opposite mix, hybrid cloud results will be closer to public cloud results. Two most influential factors: Reduction in hardware due to virtualization The length of the hybrid cloud migration schedule 8

9 Quantifiable Economics of Hybrid Cloud Booz Allen Hamilton Hybrid Cloud Hybrid Cloud BCR vs. No. of Servers BCR 6.0 BCR 3 YR Migration 4.0 BCR 2 YR Migration BCR 1 YR Migration ,000 1,500 2,000 3,000 4,000 No. of Status Quo Servers Migrated 9

10 Demand Graph Shapes PERIODIC FAST GROWTH BURSTING CYCLICAL 10

11 Hybrid Cloud Enablement Factors Things to think about. Architecture Design Intended Workload and Use Cases Location of Physical Hardware Availability & Redundancy Configuration Hardware Compute Networking Storage Software Cloud Infrastructure Software Cloud Management Software Implementation Process Hardware Procurement Cloud Infrastructure Software Cloud Topology Build or Buy or Both Management Process Compatibility with leading vendor solutions Single view of control and security On-Demand, Self-Service Provisioning Remember to focus on your applications Shift with demand Shift with failure 11

12 Enabling Hybrid Cloud An Architectural Framework.. 12

13 Discovery To simplify it.. Hybrid Cloud Transformation Methodology A Familiar Approach Understand business drivers, goals and constraints Understand current technology challenges Output: Tailored agenda to address during strategy phase Strategy IT evolution facilitated sessions Output: Unified and strategic IT roadmap with action plans Assessment Hybrid Cloud readiness assessment Output: Concrete recommendations for hybrid cloud adoption Architecture Design, Planning & Implementation Implementation guidance and timeline Risk Mitigation Output: Detailed architecture and plan for migration Output: Implementation and/or implementation guidance 13

14 DivIHN s Cloud Approach & Value Discovery, Assessment, Architecture Design Projects and Initiatives Business Value 1. Understand business drivers, goals and constraints 2. Understand current technology 3. Analysis & Business Case / Value Planning 1. Economics - Cost, Financial Value, TCO 2. Etc. 4. Best fit for business Cloud/Enterprise Architecture 5. Prioritization based on business requirements 6. Risk & Issues 7. Design To-Be Architecture 8. Provide Standardized Guidance to Business Community, Solution Designers, Developers, and Implementers 9. Build/Modify Management Processes 10. Support Training 11. Implement 1. Reduce Costs 2. Improve Efficiency 3. Mitigate Risk 4. Preserve Capabilities 5. Increase Revenue 12. Maximize the Return on Investment in Architectural Components and Solutions 14

15 Hybrid Cloud Considerations follow a familiar pattern.. RISK PROCESS/GOVERNANCE PEOPLE TECHNICAL FINANCIAL 15

16 Some General Risk Considerations what others exist? HOW CRITICAL IS THE APPLICATION TO THE BUSINESS? HOW SENSITIVE IS THE DATA? WHERE IS THE APP SUBJECT TO REGULATORY COMPLIANCE? 16

17 Architecture Considerations Also Include. HOW HEAVILY CUSTOMIZED IS THE APPLICATION? HOW TIGHTLY INTEGRATED IS THE APPLICATION? DOES THE APP HAVE ANY SHARED PHYSICAL COMPONENTS? WHAT DEGREE OF FUNCTIONAL SEPARATION IS THERE WITHIN THE APPLICATION? 17

18 Cloud and Hybrid Cloud is cheaper than dedicated infrastructure, right? 18

19 Not Necessarily A UNIT OF PUBLIC CLOUD CAN BE MORE EXPENSIVE THAN A UNIT OF DEDICATED HOSTING HOW CAN WE REDUCE COSTS BY LEVERAGING CLOUD? ANSWER: EXPLOIT VARIATION IN DEMAND 19

20 Thank You! 20

21 APPENDIX 21

22 Additional Cloud Definitions Public Cloud: A collection of compute, storage, and network resources which is multi-tenant and is provided by a cloud vendor with access via an API endpoint. Private Cloud: A similar set of resources for a single tenant that are accessed via an API endpoint. Multi-Cloud: An environment that spans two or more separate clouds, be they both public, both private, or one (or more) of each. 22

23 Hybrid Cloud Considerations Architecture Design Intended Workload and Use Cases High Availability Eliminate SPOF CPU Intensity Bandwidth Latency Automation of deployment resources What else? Location of Physical Hardware On premises Private Cloud Public Cloud Multiple Cloud Availability and Redundancy Configuration Zones Regions API Endpoints What else? 23

24 Hybrid Cloud Considerations Hardware Compute Commodity or high end/specialized Use cases drive hardware selection Reuse/repurpose existing hardware? If so, be mindful of maintenance and upgrades to the hardware Networking Use cases drive network considerations Create network model based upon internal and external needs Different cloud infrastructure software models support various networking models Some cloud infrastructure software allows for integration of network hardware components What else? Storage Various cloud infrastructure offerings allow different storage requirements and capabilities Beware of options to physically implement your chosen storage strategy What else? 24

25 Hybrid Cloud Considerations Software Cloud Infrastructure Software Selecting an appropriate cloud infrastructure software solution for your hybrid cloud environment will influence most, if not all, decisions regarding hybrid cloud design and implementation. Commercial versus Open Source Topology considerations and constraints and impact on network configurations API Access What else? Cloud Management Software Cloud Management software is systems management software for public, private and hybrid cloud infrastructures. It enables rapid server provisioning and automated governance. Abstraction Organization Configuration Management Monitoring Automation Governance 25

26 Hybrid Cloud Considerations Implementation Process The design and implementation of a hybrid cloud involves a series of implementation decisions. Hardware Procurement Constraints Tailor to workload requirements Commodity High performance Cloud Infrastructure Software Ensure specific design requirements of hybrid cloud is supported by vendor Be sure to perform third party research Consider hiring vendor who has been there and done that Cloud Topology Hybrid cloud topology may be dictated or limited by your hardware and cloud infrastructure software choices Build or Buy or Both DIY or outsource the implementation work? Or some combination thereof? 26

27 Hybrid Cloud Considerations Management Process Will a cloud management solution effectively reduce the complexity of managing the implementation and reduce ongoing operational costs while preserving your ability to work with your preferred vendors? Considerations include: Compatibility with leading vendor solutions, such as: Citrix Microsoft Vmware CloudStack Eucalyptus Openstack Amazon Web Services Rackspace Single view of control and security UA Network security Credentials Etc. On-Demand, Self-Service Provisioning Try as much as possible to focus on your applications Shift with demand Shift upon failure 27

28 Who is DivIHN Solutions DivIHN Solutions is the solutions and project division of DivIHN Integration, a Chicago-based technology consulting firm founded in 2002 DivIHN s mission is to provide technology services exemplified by client trust, employee care, and operational excellence Honesty in all of our transactions Commitment to serving our clients and employees Relationships with our clients, employees, and vendors are tantamount We serve organizations in many verticals, including but not limited to: Financial Services, Distribution, Logistics, Insurance, Manufacturing, Publishing/Media and Hospitality 28

29 DivIHN Solutions Service Offering IT Transformation Services IT Transition Services utilizing Enterprise Architecture Assessment, Recommendations, Roadmap IT Organization, Process, Technical, Project Product Selection Program Management Design IT Stabilization Services Design Services Application Design Data Design Infrastructure/Data Center Design Network Design Systems Architecture Consulting Application Architecture Data Architecture Network Architecture Server Architecture Security Architecture Cloud & Hybrid Cloud Strategy and Architecture Design Mobility Strategy & Execution Design 29

30 DivIHN Solutions Service Offering Systems Implementation Services Microsoft/Java Architecture Development & Deployment Implementation Support Data Architecture Development & Deployment Integration Architecture Development & Deployment Network Implementation &/or Consolidation Infrastructure Implementation &/or Consolidation Project Management Mobility Application Development & Deployment Pure Native Application Development Hybrid Application Development Pure HTML Application Development Cloud & Hybrid Cloud Implementation Services CBS SaaS PaaS IaaS 30

31 DivIHN Contact Information Office: 2500 W. Higgins Road Suite 870 Hoffman Estates, IL P: (847) F: (847) On The Web: John Sinkus P. (847) , X202 31

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