The Cloud Management Scenario
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1 The Cloud Management Scenario Donna Scott Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
2 We Have Seen This Picture Before but Cloud Computing Is Different How Will You Manage and Govern Cloud Services? Analytics Digital Business IoT Mobile Social Limited IT Supply
3 Key Issues 1. What is the state of cloud management in the enterprise? 2. How are the key cloud management technologies and their benefits? 3. What best practices should enterprises pursue to increase chance of success in cloud management across public, private and hybrid services?
4 Key Issues 1. What is the state of cloud management in the enterprise? 2. How are the key cloud management technologies and their benefits? 3. What best practices should enterprises pursue to increase chance of success in cloud management across public, private and hybrid services?
5 Two Views of Cloud: Consumer and Provider Cloud Consumer Drivers Fast and Frictionless Programmability Repeatability Speed of Service Save time and money Cloud Provider Drivers Make money Gain market share Improve margins Speed access Free up time and resources
6 But There Is Another View: The IT Service Broker Public Governance Hybrid Private Anticipate Customer Needs Source Suppliers (Internal/External) Map demand for IT to Supply Develop and Enforce Policies Develop and Maintain Service Catalog Manage Risk and Compliance Manage Suppliers Optimize Business Outcomes Manage Costs
7 Cloud Service Broker Is an Emerging Enterprise Role Customer Quotes "AWS is not cost-effective for applications running 24/7." Large grocery chain "We found that unless there is a culture change to scale down or turn off applications or VMs when they are not used then you don't get the realized cost benefits of cloud." Healthcare provider "Cloud service brokers perform cost and SLA comparisons across providers. They make IaaS acquisitions easier and smarter by having cost visibility." Defense contractor
8 You Will Not Be Able to Reign in the Public Cloud But You Can Manage and Govern Cloud Service Usage and Budgets Both Private and Public Key Workloads Already in the Public Cloud: Web/Mobile/Analytics (Systems of Innovation and Differentiation) HPC Dev./Test/Prod.
9 Private, Public and Hybrid Cloud Computing Requires Management Hybrid Public Hybrid Private Public Service design Service deployment Service migration/mobility Service management/optimization Workload management Policy enforcement and orchestration Cost optimization Service provider optimization
10 The State of Cloud Management: Inadequate Function Grade Role-service broker D+ Visibility of external cloud services B- Governance over external cloud services D+ Implementing private clouds for internal service delivery Financial management and benchmarking service delivery internal versus external Service management over cloud services C- Service optimization/mobility Cloud Strategy upon which management is built (sourcing, data centers, locations) Standardization of software stacks for reuse Management of cloud provider risks C- D+ F C- C C
11 Key Issues 1. What is the state of cloud management in the enterprise? 2. How are the key cloud management technologies and their benefits? 3. What best practices should enterprises pursue to increase chance of success in cloud management across public, private and hybrid services?
12 Key Cloud Management Solutions and Technologies Software Defined Data Center Cloud Management Platform Cloud Service Brokerage Marketplace Aggregation Financial Management
13 Software Defined Data Center Key Goal Is Programmability Across Public & Private Management and Policy Software-Defined Security App 1 App 2 App X Software-Defined Application Services Software-Defined Data Center SD Compute SD Storage SD Network SD Facilities SDC SDS SDN SDF Removes Software Dependence on Infrastructure Public Hybrid Enables Real-Time Infrastructure Reconfiguration or Reallocation Private Enables Less Complex Service (and Data) Mobility
14 Will You Require Both CMP and CSB Technologies? Strategic Planning Assumption: By 2016, users of CMP technology will shift brokered services from 95% internal and 5% external to 75% internal and 25% external. Cloud Mgmt. Platforms Used by enterprises and ESPs primarily to deliver internally developed cloud services to customers Strengths: Technical cloud services Service governance Service management Service optimization Overlap: Catalog IAM Provisioning Workflow Policy Governance Chargeback CSB Marketplace Enabling Technologies Used by ESPs and some enterprises primarily to deliver externally developed cloud services to customers Strengths: Public cloud services Marketplace and clearing house primarily for service providers and resellers Financial management Comparison shopping
15 Cloud Management Platform Virtualization and Physical Layer CMP Enables Policy Enforcement and Multi-Cloud Management Access Management Self-Service Service Management Manage to SLAs Service Optimization Policy and Orchestration Virtual and Physical Resource Layers Internal IN/OUT OUT Mission-Critical Not Mission-Critical Test/Lab Multi-Cloud Management External Management APIs (Incident/Change/Release, Analytics) Public Hybrid Private
16 Manage Vendor Risk: CMP Market Is VERY Fragmented Vendor Category Example Vendors Strength Challenge Infrastructure Software Large ITOM Open Source Integrated Infrastructure Systems Emerging CSB Vendors Adding CMP Microsoft, Oracle, Red Hat, VMware, BMC Software, CA Technologies, HP, IBM OpenStack, CloudStack/Citrix, Eucalyptus*, Scalr Cisco, Dell, HP, IBM, VCE Adaptive Computing, CloudBolt Software, Egenera, RightScale CliQr, Gravitant Degree of Platform Integration Breadth of Functionality, Including Service Management Momentum Hardware and Software Integration Best-of-Breed Functionality in One or More Areas Decision Analytics on Multi-Cloud Sourcing Degree of Heterogeneity Degree of Complexity Depth of Functionality Lock-In to Hardware Infrastructure Size, Exit Strategy, Longevity Risk Size, Exit Strategy, Longevity Risk We Estimate No Vendor to Have More Than 10% Market Share *On 9/11/2014 HP announced an agreement to acquire Eucalyptus
17 OpenStack: Momentum but Still Very Early and Immature Adoption is low; but momentum is high. As of 1H-2014, there were 209 production implementations of OpenStack (based on survey data of 1780 responses not comprehensive count).* OpenStack is in its 9th release (Icehouse). It is considerably behind AWS but is ramping up. Question is whether it will be fast enough. Key drivers are: Commodity hardware, systems of innovation/differentiation and ability to use private and/or public cloud. OpenStack is a project/framework, not a product. OpenStack lacks enterprise features such as resiliency, and rolling upgrades. OpenStack does not deal with the underlying infrastructure. Sample Vendors: HP Metacloud* Mirantis Piston Cloud Red Hat *Source: ** on Sept. 17, 2014 Cisco announced its intent to acquire Metacloud
18 CSB Marketplace Enablement Vendors Aggregated and federated service catalog with integration to providers' cloud services Cost and SLA comparisons of public cloud providers Decision analytics Rightsizing and cost optimization Single sign-on Value Proposition Aggregated billing and chargeback Sample Vendors 2 nd Watch AppDirect CloudHealth Technologies ComputeNext Gravitant Jamcracker Parallels Most CMP vendors
19 IT Financial Management Tools Adjacent Markets: Chargeback Service Costing Budgeting Project Financials Service Catalog Enterprise Billing Regional Vendors Like: PPM and Service Management Business Operations Planning Infrastructure Billing IT Spend Management Telecom Billing Software Metering DC Metering
20 CMP Futures Workload Mobility Private Cloud Public Cloud Better Service Design and Deployment Across Cloud Providers More Intelligence and Policy Enforcement
21 Key Issues 1. What is the state of cloud management in the enterprise? 2. How are the key cloud management technologies and their benefits? 3. What best practices should enterprises pursue to increase chance of success in cloud management across public, private and hybrid services?
22 Strategy Should Come First Inventory of Current Assets Justification Vision Goals Impact on DC Strategy Impact on Applications Criteria for "What to Run Where" Management and Governance Architecture Prioritization and Execution
23 Pace Layering Can Help IT With Cloud Strategy and Brokering Requirements HW/SW Infrastructure Emerging Technology Pace-Layered Application Strategy Systems of Innovation Cloud-First (Public or Private) IT Operations Agile Ops. Proven, Supported Infrastructure Systems of Differentiation Systems of Record Controlled Ops. Less Mission-Critical SaaS More Mission-Critical Fit for Purpose, Dedicated or Cloud Architecture
24 Control Implications of Different Models: Make Sure You Compare Apples to Apples Dedicated IT Data App VM Server Storage Network Organization Has Control Hosting Provider Data App VM Server Storage Network Public IaaS Data App VM Server Storage Network Organization Shares Control With Service Provider Public PaaS Data App Services Server Storage Network Public SaaS Data App Services Server Storage Network Service Provider Has Control Accountability Cannot Be Outsourced.
25 New Roles Think Supply Chain Cloud Consumers IT Finance (Costing, Charging) Service Managers Cloud Architects Automation Specialists Cloud Platform Services (Plan, Optimize) Service Catalog Automated Service Delivery Products, Resources, Components External Services Cloud Service Brokers Supplier Management
26 Major Decision Point: Should You Build a Private Cloud to Offer Cloud Services? Drivers Transformational to deliver on business value, agility, cost. Security, compliance. Cost of service delivery. IT is IP. Desire for IT to go beyond run-thebusiness to systems of innovation and differentiation (bi-modal IT). Inhibitors Lack of skills and roles (architecture, engineering, automation, financial management, service definition). Desire to focus on higher level business value. Keeping up with technology innovations and customer requirements (it is not a one-time investment). Public cloud keeps dropping in price. Enterprise vendors not stepping up to the plate with private cloud: too complex, not prescriptive, takes time, etc.
27 Decision Framework: Is Private Cloud Right for You? Attribute Build Private Cloud Use Managed Virtual Private Cloud Use Public Cloud >5% of revenue spent on IT (IT is IP) Significant IT skills in integration, development, architecture Don't want to focus on infrastructure Have workloads with significant variations in usage
28 The Real Benefit Comes With Cloud Application Attributes Migrating to the Cloud Does Not Magically Give Your Applications Cloud Attributes Data Center Location Cloudbursting Compliance Time It Takes to Move Software Licensing Multisite Operation Migration Across Providers Latency Conflict Resolution Data Synchronization Assess Which Existing Applications Would Benefit With Rearchitecture
29 Action Plan for CIOs Monday Morning: - Assess your data center, business management of IT and cloud computing strategies. Document your hybrid IT vision and how your strategies will change. - Use Gartner's pace layered strategy as input into your cloud computing strategy. Next 90 Days: - Decide whether you want to offer private cloud services. - Invest in roles to assure success with cloud computing management and governance. Next 12 Months: - Execute on your cloud computing strategy. - Optimize cloud architecture and services.
30 Recommended Gartner Research Organize the Right Teams for Successful DevOps John Rivard and others (G ) How IT Operations Can Set Up an Effective, Centralized Release Management Process George Spafford and Ronni J. Colville (G ) Cool Vendors in Cloud Management, 2014 Donna Scott and others (G ) Manage Your Cloud Services With the Right Roles and Technologies Donna Scott and others (G ) Market Guide for Open-Source Software Cloud Management Platforms Milind Govekar and others (G ) Market Guide for Integrated Infrastructure Systems Cloud Management Platforms Donna Scott and Milind Govekar (G ) For more information, stop by Gartner Research Zone.
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