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1 The reality of cloud Go beyond the hype and make a better choice www.

2 The meaning of cloud 1. Cloud means different things to different people, something that s reflected in the many definitions of what cloud is and what it offers to business. Gartner defines cloud computing as a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using Internet technologies. Cisco describes cloud as a powerful combination of cloud computing, networking, storage, management solutions, and business applications that facilitate a new generation of IT and consumer services. These services are available on demand and are delivered economically without compromising security or functionality. IBM says cloud computing, often referred to as simply the cloud, is the delivery of on-demand computing resources everything from applications to data centers over the Internet and on a pay-for-use basis. In it s simplest form, the cloud delivers applications and services over the Internet. But there is a bigger question than What is cloud?, and that question is What does cloud mean for my business?. Depending on the type of business, position in the market, and the attitude to risk, cloud presents very different opportunities to businesses. Every business can take advantage of a full cloud deployment, made easier with the availability of bandwidth and made attractive by a changing landscape that is forcing businesses to look at new ways of doing things. But the reality is, depending on the factors outlined above, businesses will implement cloud solutions in different ways and for different reasons. Step changers These businesses will adopt cloud solutions to make step improvements in customer service and business efficiency. Leapers Cloud presents an opportunity to these businesses to change business processes and the delivery of core services to clients. Flyers These businesses use cloud technology to change the fundamentals of their industry by introducing new products in new ways to existing and new customers. These businesses lead in their market, with exceptional vision. Every business needs to consider their own goals and objectives in line with the industry trends, and then determine the role that cloud technology will play to support those goals and objectives. Cloud 365iT Cloud365iT is a managed, shared private cloud. Built on IBM PureSystems, it delivers assured security, confidentiality, integrity and availability of data, with a guarantee that data remains in the UK. Cloud365iT supports the delivery of complete and hybrid cloud solutions for corporate, channel and ISV clients. Cloud is the future Industry surveys suggest that cloud adoption will happen at an aggressive pace over the next few years. When compared with other technology trends, it seems that the pace of cloud adoption could be even quicker than that of other new technologies, including IP Telephony and mobile working. 2. Cloud has a place in the future and overtime it will achieve the levels of deployment suggested by industry analysts, but not in the timescales expected. If we consider the points in Section One about the step changers, leapers and flyers the pace of adoption will vary hugely between these different profiles of business. The flyers will already have deployed a large percentage of their cloud solutions as by the very nature of their culture and position in the market, they must innovate and drive change in their industry by delivering new services in new ways. Just because the flyers adopt it at such a quick pace, doesn t set the trend for others to follow in the same way. When we consider the adoption rate of IP Telephony, mobile working and collaboration solutions, and compare it to actual implementations, it is clear that the pace at which they were forecast to be adopted did not happen. We believe that this will be the same with cloud. Mass adoption of full cloud deployments among step changers and leapers will not occur for sometime yet. It may never occur. What will happen among these groups is a partial deployment of cloud solutions to enable the level of change that matches the business and market requirements. While this reduces the value that cloud can bring to these businesses, it also reduces the risk and provides these businesses with the opportunity to combine the best of cloud solutions alongside hybrid and on-premise solutions. Given this choice, the step changers and leapers can advance at a pace that makes technical, commercial and financial sense for the particular market environment within which they operate. The default position on cloud for many medium and large businesses is to migrate to cloud solutions for areas that are already proven. CRM and Financial applications have been available in the cloud for many years and the uptake of these is accelerating because the industry is driving this change, not the end-user. Drivers for cloud Cloud is a question of when and not if, and the following scenarios are all natural points in a business where the PureSpace journey can begin: Business growth Business consolidation Technology refresh New application requirements Contingency planning Business continuity Cost and efficiency review Compliance requirements

3 Migrating to cloud 3. The marketing materials available in the industry, portray full cloud deployment as a simple, effective and efficient solution. Cloud is positioned as the answer to many of the challenges facing businesses today and tomorrow. Cloud promises: Cost reduction Flexibility Reduced complexity Enhanced performance Quicker time to market Business transformation There are also many intangible benefits associated with cloud deployment, and adding them all together makes for a very compelling case. Cloud solutions reduce 4. the cost of ICT Cost reduction is one of the more talked about benefits of the cloud. Depending on the type of deployment, costs can be reduced in a number of ways: Support and maintenance Hardware and license purchase Staff and resource Cost reduction should never be the main driver for cloud deployment. While an attractive benefit and one that is high on everyone s agenda, it isn t always achievable in the timescales suggested by many of the marketing brochures in the industry. The only certainty about cost in a cloud deployment is that it changes the cost model, it doesn t necessarily reduce it. We agree that the benefits of cloud are significant, attractive to business and totally achievable. We also recognise that many businesses are reaping the rewards of full cloud deployment and many more will follow. However, we also believe that the journey to cloud deployment is more complex than many in the industry admit. The cloud industry has started to believe it s own hype and many cloud providers are positioning ICT as a utility. While it is true that the cost model changes the accounting procedures for ICT, and therefore it can be accounted for as a utility, that s where the similarity ends. ICT is too important to become a utility, yes it can be simplified and streamlined but it should never become a utility. ICT needs regular strategic review to support business strategy, and that s where the difference lies. In line with positioning ICT as a utility, the marketing messages portray a simple migration journey to cloud. With expert help to explore, analyse, design and migrate, the process is simplified, however, it s not a case of simply swapping one environment to another. It is a complex process that should not be underestimated. A poorly implemented solution will fail to deliver the promises and cause serious, potentially damaging issues for the business. Following the explore, analyse, design and migrate process ensures that the migration to a cloud environment, either in full or part, is smooth and successful. PureAssess PureAssess is a cloud readiness assessment and it is the start of every PureSpace journey. PureAssess explores and analyses requirements, designs a cloud solution and develops a migration plan to get you there. Fitting within the 365iT methodology, PureAssess delivers the Scope phase for cloud solutions. We think that the cost argument should be examined very closely, for both full deployment and part cloud deployment. Many of the advertised prices for cloud are not realistic for serious business requirements. Price per gigabit is not the way to evaluate a business requirement when ICT is such a critical part of business operations. This utility style pricing does not allow for any customisation, additional services or intelligent analysis of the cloud requirements. It simply allocates space at a price. There are many more considerations to any ICT environment, other than space, so building a case for cloud migration based on price and cost reduction is fundamentally flawed. Working with the right pricing model that accounts for levels of customisation, a cost reduction can be seen in some areas. However, consideration must be given to the cost of redeploying in-house skills and developing new skills. In our experience, the costs saved in one area can be incurred in others. Perhaps the major consideration in cloud deployment, as with any outsourcing agreement, is the cost of leaving the agreement. Because there are so many technical, commercial and cultural aspects to cloud deployment, there is a lot to get right but also a lot to go wrong. Some businesses find that agreements are entered into based on the current requirements, but as technology moves and changes quickly, new working practices emerge and the business needs to change, it can be the case that businesses begin to feel constrained by contracts and processes that do not allow the level of flexibility that they need. Business are more likely to reduce costs by ensuring that they carefully explore, analyse, design and migrate to an environment that will provide the best mix of on-premise, hybrid and cloud services, to suit their exact requirements. Strategic solution Cloud is not a commodity solution, it is a strategic business tool that should not be evaluated purely on a volume and value basis. Getting cloud right is easy, getting it wrong is even easier.

4 Simplifying ICT The industry presents cloud solutions as the answer to all ICT challenges. The picture painted by the industry is of a trouble-free, seamless environment that works all the time and never fails the users or the business. This simplicity is brought about through: Expert advice and guidance Managed solutions Broad skill base to support environments Proactive approach to ICT maintenance Quick problem resolution 5. As with all the other benefits of a cloud deployment, simplicity is only realised if the cloud solution is aligned to meet business objectives. If this is done for either a full or part cloud deployment, ICT will be simplified and the environment will deliver the benefits that it promised. But this is often not the case. The most important part of cloud deployment is the exploration and analysis phase. Without this rigorous process, there is no way of knowing what the business needs and wants from a cloud solution. Many businesses find that once they begin a migration to the cloud, issues and challenges emerge, where applications and systems being migrated affect the performance of others, sometimes leaving the business with a bigger project than they had foreseen. This can be avoided by taking the right amount of time and resource to conclude an exploration and analysis of the current ICT environment before a migration even begins. Further considerations when looking at the simplicity that cloud brings are the users and the ability of the business to implement changes to the ICT environment to support changing business requirements. Ideally, users shouldn t notice any difference in system performance and ICT support, in fact both should improve. If they do suffer with poor performance and slow to respond support, this reduces productivity and user confidence, both of which will affect business output. The contract in place for full or part cloud deployment will determine how easy or difficult it will be to make changes to the environment. A contract that is too rigid will not allow the business to develop its environment without additional cost. Care needs to be taken to ensure that a contract both supports and protects the business. 365iT solution 365iT offers cloud, hybrid and on-premise solutions providing you with choice, flexibility and the migration opportunities to ensure you get the best solution for your business. Cloud culture 6. Cloud not only changes the ICT environment, but it also introduces a requirement to change the culture in the business. The biggest culture change will happen in ICT department as it s role moves away from tactical challenges towards strategic input in the business. The other changes that occur in the business include: Changing the way technology partners are engaged with the business Changing the dynamic between department heads and the ICT Team Delivery of ICT services to users with a possible change of devices being used New ways of working for all users There is a human factor to be considered for cloud and the importance of addressing this shouldn t be underestimated. A full cloud deployment will fundamentally change the way that a business works, and it can have an impact on all departments. The main impact is on the ICT department, while the impact is less obvious in other departments if the solution works as it is supposed to. For all departments, there will be a new way of working and everyone has to engage in the process for the solution to succeed. For the ICT department, the change is significant for a full cloud deployment and less so for a hybrid deployment. Skills on the team need to be analysed and aligned to the new ICT environment. Some skills will no longer be required while new skills will need to be developed. Cloud is an opportunity for the ICT department. It is the only technology to emerge that will give ICT professionals the time and space they need to take their role away from being a reactive, problem solving role to being truly strategic at a level that helps the business to enable change through the use of technology. It gives professionals the opportunity to look at the bigger ICT picture and map new technologies to business objectives. It is inevitable in a cloud environment that some people will not be able to make the change from old to new, and those that do make the change, will have a steep learning curve. The cloud journey The cloud journey is unique for every business, because every business is different. The applications being used, legacy systems in place and financial circumstances make each business different and these dictate the starting point on each cloud journey. The end point of the journey is PureSpace, a unique tailored environment that can include cloud, hybrid and on-premise solutions.

5 The cloud journey The cloud journey is different for each client and our methodology reflects that. Scope With PureAssess, our cloud readiness assessment, we consider business, technical and financial requirements and we scope and design a solution that meets short, medium and long term objectives. Supply We deliver a solution that has an optimised configuration to meet application, location, user and data management requirements. We migrate data and create processes to manage the storage, replication and back-up of stored data. Support We support the solution and the client with defined contractual Service Level Agreements, that include rigorous monitoring and management tools to allow the client to reap the benefits of the solution that we have scoped and supplied Cloud365iT solutions Why Cloud365iT? Built on IBM PureSystems UK based, Tier 3 data centres IL2 and IL3 accredited 99.98% service availability 100% data assurance ISO27001 accredited Why 365iT? Cloud, hybrid and on-premise expertise Independent, consultative approach Proven methodology IBM Cloud Club Member On completion of PureAssess, the cloud readiness assessment, 365iT will scope, supply and support a full or part cloud deployment using some or all of the following cloud solutions: PureCompute Provides a managed Infrastructure-as-a-Service (IaaS) solution that delivers high performance, secure, reliable and scalable infrastructure services. PureServe Provides a managed Platform-as-a-Service (PaaS) solution that builds on PureCompute by delivering Microsoft Exchange and Microsoft SQL Server to users. PureRecover Provides a managed data solution that builds on PureCompute and delivers replicated storage within Cloud365iT. PureStore Provides a managed storage solution that delivers robust data storage while building on and complementing PureCompute. PureBackup Provides a managed Backup-as-a-Service (BaaS) solution that delivers reliable and effective backup with bank level encryption and up to 96 points of recovery each day. PureSecure Provides managed protection for the business, systems and users from known and unknown threats, taking action before security is compromised. PureCom Provides managed communications services for inbound, outbound and internal communications. About 365iT 365iT is the direct solutions division of 365 ITMS Limited. 365iT provides lifecycle services to scope, supply and support networks, data centre, collaboration and security solutions. Delivered on-premise, hybrid or in the cloud, solutions are supported by 365iT UNIFY an integrated suite of support services that optimises performance and enables better business and smarter working.

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