Roadmap for Cloud migration

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1 Roadmap for Cloud migration James Threapleton Client Director, Housing & Public Sector Graham Curran Director, Strategic Consulting 2 nd July 2015

2 ABOUT GRAHAM 25+ years experience delivering transformational change both public and private sectors CTO, UN International Computing Centre in Geneva (technical strategy, project delivery and IT services to 150,000 users across 130 countries) Cloud strategy for Department for International Development (DfID) Glasgow Housing Association (now Wheatley Group) server infrastructure strategy Lead consultant, Digital Strategy, Justice for Scotland IT strategy consultant: North Yorkshire Police, Scottish Football Association, Dorset Tri-Council Partnership, Leicester City Council East Dunbartonshire Council IT transformation programme consultant business case, programme governance, knowledge transfer South Oxford and Vale of White Horse DC technology transformation roadmap and design development 2 Trustmarque 2015

3 ABOUT TRUSTMARQUE We are a leading technology provider for both public and private sector organisations in the UK. Empowering our customers by delivering simplified IT services. 3 Trustmarque 2015

4 KEY COMPANY FACTS 160m Turnover (2014) Customers 600 Accredited employees 32 million Saved for customers per year 6 UK offices Leading UK Microsoft partner 27 years Public & private sector experience 100+ Partner & technical accreditations 320 Enterprise agreements 25 Frameworks 4 Trustmarque 2015

5 OUR PARTNERS We are proud to have strong relationships with the best vendors in the market. This allows us to offer our customers a broad range of options, alongside the latest innovation. 5 Trustmarque 2015

6 MICROSOFT ACCREDITATIONS SAM Volume Licensing Cloud Productivity Cloud Platform Datacentre Devices & Deployment Collaboration & Content Hosting Application Integration Communications Messaging Identity & Access Data Platform 6 Trustmarque 2015

7 MICROSOFT ACCREDITATIONS Trustmarque joins an elite group of UK cloud providers (one of only 13 in the UK) in working together with Microsoft to offer customers hybrid cloud and Azure-enabled solutions. 7 Trustmarque 2015

8 WHO CHOOSES TRUSTMARQUE? public and private sector customers 8 Trustmarque 2015

9 TRUSTMARQUE IN HOUSING public and private sector customers 9 Trustmarque 2015

10 THE CHALLENGE We understand the myriad of challenges faced by housing organisations today Availability of affordable housing huge shortfall v demand Increasing range of services to customers - accessed via wider choice of channels Threats to income - further austerity measures, Welfare Reform Relentless cost pressures driving efficiency savings; cost cutting Compliance - with robust governance, regulatory and legislative obligations Proliferation of data - stored in numerous disparate repositories Increasing activity in mergers, acquisitions and corporate restructuring 10 Trustmarque 2015

11 What are the hard financials? When does cloud work? What are the risks? How to start adopting? 11 Trustmarque 2015

12 Cloud Design Principles

13 Consuming Compute as a Commodity Service Evolving Customer Needs Consume vs Construct Move CapEx to OpEx Scale as you grow / Pay as you grow Dynamically scale IT without changing anything

14 Types of Cloud Hybrid Cloud IT consumed as a service

15 Cloud Services

16 Cloud Economics Future demand for data centre space x7, >200 racks, Mission Critical Rack Space in Use Forecast Min (All negative pressure) Max (All positive pressure) 1 FTE per 250 racks racks FTE racks <0.5 FTE

17 Cost Elements for Each Cloud Type On Premise IaaS PaaS SaaS Cloud Server and Storage Costs N/A Bandwidth Usage N/A Internet Connectivity N/A ITIL 2.0% Application Support 42.0% Software Support 6.0% Software License Acquisition 28.0% Infrastructure Support 6.0% Removeable Media 0.1% Backup Infrastructure 1.0% Backup Infrastructure Support 0.1% Hardware Maintenance 2.0% Hardware Acquisition Cost 11.0% Install and Build 2.0% Power 0.1% Data Centre 0.2% Customer Responsibility Provider Responsibility Only SaaS addresses most costs, IaaS covers only 22.5% of total cost of ownership and brings additional costs IaaS and PaaS can help if your organisation doesn t have capability or capacity in data centre and infrastructure management and support

18 Cost of Ownership Comparison - IaaS Comparison between the infrastructure costs for an on premise application server and an IaaS equivalent On Premise Solution IaaS Solution Year 1 Year 2,3 3 Year TCO Year 1 Year 2,3 3 Year TCO Infrastructure Support 8,000 8,000 24,000 0 Removeable Media Backup Infrastructure 1,500 1,500 0 Backup Infrastructure Support Hardware Maintenance 3,000 3,000 9,000 0 Hardware Acquisition Cost 15,000 15,000 0 Power ,200 0 Data Centre ,875 0 Cloud Server and Storage Costs ,400 8,400 25,200 Bandwidth Usage ,400 2,400 7,200 Internet Connectivity ,000 4,000 16,000 Total 29,125 12,625 54,375 18,800 14,800 48,400 The case is sensitive to bandwidth costs and, when instances are running 24x7, you normally need to avoid or reduce in house infrastructure support costs to make savings Typically, Cloud is -20% to +15% in comparison to on premise infrastructure but there can be more dramatic increases or decreases

19 So is IaaS for me? I have existing infrastructure which is not end of life? My infrastructure is mainly virtualised, would cloud help? I need new infrastructure, fast I don t know how long I will need my new infrastructure for? I want to share infrastructure with other partner organisations? I only need the infrastructure at specific times.. The data in my test and dev environments is anonymous I don t have the skills and/or resource capacity in house

20 Compute Patterns Suited to Cloud Compute On and Off Inactivity On & off workloads (e.g. batch job) Over provisioned capacity is wasted Period Time to market can be cumbersome t Compute Compute t t Growing Fast Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Cannot provision hardware fast enough Unpredictable Bursting Unexpected/unplanned peak in demand Sudden spike impacts performance Can t over provision for extreme cases Compute t Predictable Bursting Services with micro seasonality trends Peaks due to periodic increased demand IT complexity and wasted capacity

21 Workloads are Migrating Towards Cloud MANY WORKLOADS ARE MIGRATING TO PUBLIC OR PRIVATE CLOUD PRIVATE CLOUD 1 PUBLIC CLOUD 1 Server Capacity On Demand IT Management Business Apps (CRM, ERP) App Dev. & Test Tech. Computing Apps Data Analysis and Mining IT Helpdesk Collaborative Applications Data backup/archive Services DR Personal Productivity Apps Website Creation & Management Storage Capacity on Demand Custom Applications Applications with sensitive data TRADITIONAL IT Each company has unique needs that must be assessed to determine the right destination for each workload but in all cases, IT must manage across the hybrid environment Notes: (1) Based on the percent of customers indicated they would adopt cloud for a given workload in their organization, rated 4 or 5 on 1-5 scale, IDC May 2010 Source: IDC, EB Strategy Analysis

22 Cost of Ownership Comparison - SaaS Comparison between an on premise enterprise social business application and a SaaS equivalent. 10,000 users over 3 years On Premise solution for 10,000 users over 3 years 1.4M SaaS solution for 10,000 users for 3 years 1.52M but the organisation didn t have the resources to run the project internally and couldn t wait 4 months for the infrastructure to be commissioned benefits case was 800,000 per annum so the time difference was significant

23 When is SaaS right? When agility is important When the data is not confidential When data repatriation isn t a major risk When the software stack is non strategic When scalability is unknown When mobility is important

24 Typical Migration Strategies Dev/Test Packaged Applications Disaster Recovery New Enterprise Applications Next Generation Applications Take a low-risk first step and free up valuable onpremises data center capacity by separating preproduction in cloud and choosing to deploy on- or offprem Use next application upgrade cycle of existing virtualized desktops and applications, e.g., Microsoft Exchange, and now host in hybrid cloud Extend the data center for disaster recovery third-party backup, dev/test, seasonal workloads, and additional geo locations Build and host new applications in traditional 3-tier architectures Evolve from traditional to next generation applications (Spring, Ruby on Rails) and PaaS on Cloud Foundry

25 Where next? Start by baselining your costs and tracking Cloud equivalent Include Cloud as an option for every design and business case from now on As there is no right or wrong answer for cloud, it needs to be considered on a case by case basis For IaaS, consider building your own Cloud Hybrid is a great way to get the best of both

26 1. Maturity Assessment 2. Business Case 5. Cloud Application Migration Operational Maturity Current cost of ownership for infrastructure/applications/infrastr ucture Clearly defined SLAs Clear understanding of business need and demand Metrics for key processes server deployment Config and Inventory management Developed Capacity Management Finance management for chargeback or showback Detailed application and infrastructure designs Detailed understanding of application interaction Business Drivers/direction Cost of ownership comparison Identify candidate systems Risk assessment Development of cloud strategy 3. Application Assessment SaaS alternative? PaaS or IaaS and Infrastructure Options? Code constraints/dependencies Development estimation 6. Service Delivery Model 4. Infrastructure Design 7. Governance AD, DNS, DHCP Network/Firewall Storage Hybrid component design Application Development/Remediation Data migration Business Change Management Technology Change Management Transition to Live/Implementation Config & Capacity Finance, Software Asset Management Security Design and development standards Security and risk management Supplier Management Programme Roadmap Proof of Concept Pilot Exemplars Full adoption

27 What are the risks?

28 Inventory Management Server sprawl still exists in IaaS clouds Configuration Management is key - Remember where all your servers are when you use multiple providers Business Buy In SaaS brings constraints so ensure the business are aware and supportive Legal Service Levels Security Liability Data Volumes Think about the time and cost of copying all of your data back on site (data repatriation) Cost and time to transfer to a new Cloud provider

29

30 Market Sentiment 50% Nearly of large enterprises will likely have hybrid cloud deployments by the end of % 62% 15% 9% 18% SaaS PaaS Hosted IaaS 74% 38% 13% 6% Outsourcing services Colocation 1 Gartner, Inc Press Release: : Transform Your IT Infrastructure And Operations Practice, Forrester Research, Inc., October, Sources: IDC: Successful Cloud Partners: Higher, Faster, Stronger, IDC InfoDoc, July 8, Source: 451 Research, Hosting and Cloud Study 2014 Hosting and Cloud Go Mainstream

31 What are successful organisations doing? Ensure the cost to Run is understood, funded and delivered and the cost to Change is ring fenced Run IT like a business Be good at what you need to do to deliver value not what you have to do Be close to your customers and users understand their world as well as they do Do the basics well and constantly strive for efficiency Have a plan and deliver on it

32 Key messages Cloud pays when you need agility IaaS works when your current estate has low utilisation You won t be able to make a business case unless you understand your current costs.. That should always be the first step DR, Dev and Test environments are the predominant use cases for IaaS Business case for cloud is now compelling for some use cases (but not all)

33

34 THANK YOU Graham Curran / Director of Strategic Consulting M: E: 34 Trustmarque 2015

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