Cloud Computing: Transforming the Enterprise

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1 Cloud Computing: Transforming the Enterprise Cloud computing is not just a trend. It is changing the way IT organizations drive business value. THINK SMART. ACT FAST. FLEX YOUR BUSINESS.

2 EXECUTIVE SUMMARY Organizations of all sizes are increasingly adopting cloud technology to drive business value. That s because the benefits of the cloud are many, including accelerated time-to-market, enhanced organizational flexibility and scalability, rapid resource provisioning, and lower total cost of ownership. While everyone has heard of the cloud, not everyone can clearly define it or understands how best to take advantage of its benefits. Before moving to the cloud it is important to understand the different service models, technologies, and infrastructure options available, as well as the rewards and tradeoffs. Cloud computing provides organizations with convenient, on-demand network access to a shared pool of computer resources. There are four primary cloud-based service models: Infrastructure as a Service (IaaS), Software as a Service (SaaS), Platform as a Service (PaaS), and Integration Platform as a Service (ipaas). These services are usually offered on either an enterprise private, public, or virtual private cloud (owned and operated by a service provider) or a combination of cloud types. Each service model and platform has its own set of advantages and business challenges. Adopting the optimal cloud service model and platform alternative will enable an enterprise to transform to a faster, smarter, more flexible business. Cloud technology enables organizations to limit the large capital expenditures previously associated with building and maintaining costly data centers and custom applications. By enabling companies to pay for technology resources only as needed, the cloud transforms these costs into operating expenditures. In addition, using the cloud allows end users to accelerate time-to-market since it allows for global, on-demand access to a pre-existing platform and business processes as well as virtual technology and infrastructure. Organizations desire to focus on core competencies while transferring services to external providers has also boosted the demand for cloud computing. As a result, the cloud has changed the way that IT services are sourced, delivered, and are driving business value. This is a dramatic change of focus as the cloud gives new power and flexibility to the IT manager to help drive and execute business strategy. A trusted cloud partner can help an enterprise successfully derive business value from the cloud. Businesses should select a partner with a holistic cloud approach that can advise and support the enterprise from strategy to a fully optimized and managed cloud environment. In addition, it is advantageous to select a partner that supports a full lifecycle of cloud needs, including strategy and roadmap development, implementation, integration, migration, custom development, and ongoing management, support, and hosting services. Such a partner can ensure cloud adoption, migration, and integration is smooth and seamless. Confidential The concepts and methodologies contained herein are proprietary to NTT DATA. Duplication, reproduction or disclosure of information in this document without the express written permission of NTT DATA is prohibited. About NTT DATA NTT DATA is your Innovation Partner anywhere around the world, with operations in more than 40 countries. NTT DATA emphasizes long-term commitment and combines global reach and local intimacy to provide premier professional services, from consulting, application services, business process and IT outsourcing to cloud-based solutions. Visit to learn how our consultants, projects, managed services, and outsourcing engagements deliver value for a range of businesses and government agencies. 2

3 TABLE OF CONTENTS The Growing Consensus for Modernization 4 Benefits of Cloud Services 5 Cloud Computing Service Models 6 Impediments to Cloud Adoption 8 Cloud Deployment Models 10 The Need for Integrated Cloud Application and Infrastructure Services 13 Selecting a Cloud Partner 15 Conclusion 16 TABLE OF FIGURES The Typical Stages of Cloud-Related Service Engagement 14 3

4 The Growing Consensus for Modernization The market for cloud technology and integrated services has transitioned from early adopters and successful pilots to mainstream use by enterprises. In fact, according to Gartner, Survey results show that 80% of organizations will be using cloud services in some form within 12 months. 1 The benefits that continue to draw organizations to the cloud remain the same: the need for organizational flexibility, dynamic scalability of applications and infrastructure, faster time-to-market, and cost efficiency. Cloud computing is not just a trend. It is changing the way IT organizations drive business value. As the cloud goes mainstream, it is important for organizations to understand the different options available, as well as their advantages and tradeoffs. This whitepaper provides readers with clear definitions of cloud services and deployment models, and how each may benefit or put at risk aspects of your business. In addition, we explain the importance of taking a holistic approach to ensure your cloud adoption, migration, and integration is smooth and seamless. Cloud computing is not just a trend. It is changing the way IT organizations drive business value. Characteristics of Cloud Computing While the term cloud is everywhere, few can pin down what it really means. The reason is that there are many flavors and components of cloud computing. According to the National Institute of Standards and Technology Information Technology (NIST) Laboratory, Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computer resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. 2 Another way to think about it is that the cloud enables a user to expand and contract capacity and capabilities easily through self-service portals where catalogs enable simple configuration of the end service. NIST identifies five essential characteristics of the cloud 3, summarized here: On-demand self-service A user can provision computing capabilities, such as server time and storage, as needed without requiring human interaction. Broad network access Capabilities are available over a network and typically accessed by the users mobile phones, tablets, laptops, and workstations. Resource pooling The provider s computing resources are pooled to serve multiple users using a multi-tenant model, with different physical and virtual resources dynamically assigned and 1 Gartner, Inc., Survey Analysis: As the Cloud Services Market Grows for Segments of Buyers, Opportunities Await Service Providers, Igou, Anderson and Bell. June 24, Final Version of NIST Cloud Computing Definition Published, NIST Tech Beat. October 25, Grance, Peter and Mell, Timothy. The NIST Definition of Cloud Computing, Special Publication Gaithersburg, MD. U.S. Department of Commerce, Computer Security Division, Information Technology Laboratory,

5 reassigned according to consumer demand. Examples of resources include storage, processing, memory, and network bandwidth. Rapid elasticity Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward as needed. For the user, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time. Measured service Cloud systems automatically control and optimize resource use by leveraging a metering capability appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and user of the service. This cloud characteristic enables a cloud user to consume the service in a pay as you grow model or for internal IT departments to provide IT chargeback capabilities. Benefits of Cloud Services The characteristics of cloud computing help us understand the many ways that enterprises can benefit from cloud services and why the cloud is changing IT organizations ability to drive business value, including: Access to New Technology By leveraging the cloud, enterprises are no longer hindered by infrastructure costs and limitations in supporting rapid global expansion and the ability to quickly adopt the latest technology. When an enterprise has its infrastructure or software delivered through the cloud, it doesn t have to worry about refreshing About NIST The National Institute of Standards and Technology promotes the US economy and public welfare by providing technical leadership for the nation s measurement and standards infrastructure. the underlying components that keep it current. The cloud will always stay up-to-date, allowing the enterprise easy access to new technologies quickly and conveniently. Dynamic Scalability Many organizations have simply run out of existing capacity due to limitations on power consumption, storage, or space. With the cloud, companies can scale quickly and efficiently without added investment, and enterprises have access to virtually limitless computer and storage resources. Many cloud providers even offer burstable infrastructure that automatically expands and contracts to meet peak performance periods. Faster Time-to-Market Time to market is accelerated by empowering departments to deliver speedy proofs of concept and product demos via the cloud. Shared sites can be easily set up, replicated, and torn down as needed to meet the collaboration requirements of a given project. The cloud also uses service-oriented-architecture (SOA) which has a shorter development lifecycle.»» Cost Efficiency By eliminating the need to purchase and depreciate costly hardware and software, companies can save the considerable costs associated with building, maintaining, and 5

6 operating a data center, especially facility-, power-, and cooling-related expenditures. Additionally, the model allows firms to possibly lower expenditures on support staff, particularly those providing infrastructure support, systems management, and help desk services. Lastly, cloud computing enables companies to change what has historically been capital expenditures to operating expenditures. Focus The cloud can help transform IT into a proactive and more innovative function that focuses less on keeping the lights on and more and more on improving the user experience. By delegating the operation and maintenance of commodity infrastructure and services to cloud service providers, IT organizations can focus on their core competencies and further develop capabilities that can differentiate their businesses in their respective markets. Cloud Computing Service Models There are many ways to take advantage of the cloud s capabilities. The four service models currently associated with cloud computing are Infrastructure as a Service (IaaS), Software as a Service (SaaS), Platform as a Service (PaaS), and Integration Platform as a Service (ipaas). The following sections summarize the key concepts and advantages and disadvantages of each of these service models. The cloud can help transform IT into a proactive and more innovative function that focuses less on keeping the lights on and more and more on improving the user experience. Infrastructure as a Service (IaaS) IaaS allows organizations to avoid the large capital expenditures associated with infrastructure and data centers. IaaS enables an organization or user to use the equipment of a service provider to support operations, including the provision of processing, storage, hardware, servers, and networking components. The service provider owns the equipment and is responsible for hosting and maintaining it. The client does not manage or control the underlying cloud infrastructure, but has control over operating systems, storage, and deployed applications. Users typically pay on a per-use basis. Customers usually use an IT operations management console via a Web-based graphical user interface (GUI) to manage the environment. Customers are able to self-provision this virtual infrastructure using the GUI. A major advantage of IaaS is the capability to transfer work to the cloud during periods of peak demand for on-premise systems. That means that organizations will not have to invest capital resources to cover the cost of additional servers that may be needed only several times per year. This concept is known as cloud bursting. In terms of disadvantages, the IaaS model brings with it dependence on a specific provider. As a result, it is critical that the service provider remain an ongoing concern. Complex resource allocation software is also required to ensure that cloud-based resources are there when needed. It is important to consider what data is sent to the cloud in order to mitigate any security-related risk. Another concern with IaaS is that virtual on-demand infrastructure capability coupled with the increasing usage of mobile devices bring with it the challenges associated with the disbursement of resources. 6

7 These challenges include the difficulty of preventing employees from circumventing enterprise policies and procedures to use or develop software outside the view of an organization s official governance programs. Software as a Service (SaaS) Perhaps the most commonly understood cloud platform is SaaS. SaaS enables the user to use the provider s commercially available applications running on a cloud infrastructure. Think: sales and marketing automation software from Salesforce.com. SaaS transforms software costs from a capital expenditure to an operating expenditure, eliminating the need to purchase software licenses, given its monthly fee. SaaS applications are accessible from various client devices through a thin client interface (such as a Web browser) and increasingly through mobile applications. SaaS applications have a distributed architecture, so they remain available to end users when needed via the Web, even during an event that could have disrupted service to a non-saas application. Small to mid-size enterprises typically use SaaS products for commercial software suites such as customer relationship management (CRM), enterprise resource planning (ERP), supply chain management (SCM), human capital management (HCM), IT service management (ITSM), and office productivity. SaaS enables enterprises to obtain the use of such commercially available software on demand in return for a monthly fee, typically based on the number of users. Validating the market for SaaS products is the rapid pace at which large enterprise companies and public sector agencies have been embracing SaaS offerings in recent years. SaaS products can save costs in several ways. For example, rather than purchase expensive software, some of which remain idle at any given time, and depreciate the cost of the licenses over time, organizations can pay for the use of software on demand. Also, savings can come from the need for less hardware and, in some instances, in-house personnel because service, support, and upgrades are usually part of the agreement. Existing IT personnel can concentrate on other mission-critical areas. SaaS enhances both speed and flexibility since deploying software becomes instantaneous. The biggest challenge associated with SaaS is that one problem can impact all users and that the enterprise is dependent on a third party. That means that the service provider is now a significant part of any disaster recovery plan and that a service disruption can cripple an organization in the delivery of its product or service. It is critical that companies carefully scrutinize a provider s service levels. Moreover, the disruption or loss of service as a result of the provider may create legal liabilities for an organization. Platform as a Service (PaaS) PaaS allows application developers to develop and manage applications without the need to purchase additional hardware or to hire resources to manage the added infrastructure. Developers can build applications and services over the Internet using tools supplied by the provider. Organizations can customize the features of PaaS so it can deliver a simple framework or a complete infrastructure for sophisticated development. The infrastructure and application platforms are managed by the provider in return for a subscription fee. Features that might be included in a PaaS package 7

8 are operating system, database management system (DBMS), server-side scripting environment, server software, network access, and support and tools for design and development, as well as operations to provision these development services. Some PaaS configurations even make it possible for non-it users to develop software for themselves by using the web browser. The platform can be customized and the subscription altered as required to fit the changing needs of the enterprise. Consequently, it provides a more flexible and adaptable infrastructure. Security and backup and recovery are also provided as part of the service. Most importantly, since the interface is typically a web browser, PaaS facilitates global collaboration since development teams in different parts of the world can work together by simply using an internet connection. PaaS does not represent a complete solution. Unlike with SaaS, the client must still design, build, and test applications. In addition, organizations remain dependent on a third party and the service provider s adherence to a service level agreement. Changing providers may also prove difficult. Lastly, the integration of on-premise data contained within in-house legacy systems and PaaS-based applications is often challenging. Integration Platform as a Service (ipaas) Some enterprises are now solving the integration problem between applications in the cloud and ipaas holds the promise of seamless integration across multiple clouds and between clouds and legacy applications. on-premise data and between different cloud applications by using a cloud integration platform. ipaas is an emerging, next-generation integration platform that includes tools and technologies to manage integration data flows. The platform delivers a virtual computer or middleware in the cloud and uses a set of service connectors to link application components much like a directory function. The services also include management and orchestration functions and a full set of middleware features. ipaas holds the promise of seamless integration across multiple clouds and between clouds and legacy applications. ipaas offers robust features to integrate popular SaaS applications, such as Salesforce and ServiceNow, with social media and enterprise applications. Its strengh is in lightweight integrations that are quick to develop and deploy. ipaas may not be suitable for acting as an enterprise-level integration platform yet because it lacks guaranteed delivery, publish-subscribe, and other features supported by enterprise platforms. Impediments to Cloud Adoption In addition to being aware of the limitations related to specific cloud service models, enterprises should carefully consider the major impediments to the successful adoption of cloud computing, including: Provider Dependence. Changing providers is always a challenge. However, the lack of standards for data formats and application programming interfaces (API) make transitioning cloud providers particularly difficult and expensive. Open standards are emerging and are being more widely adopted, 8

9 but proprietary technology is still very common. You should be aware of the underlying technology used to deliver the service and prepare procedures to move cloud workloads elsewhere as a precautionary measure in case you become unsatisfied. Shadow IT. Because the cloud is available anytime, anywhere and is easy to use, a large number of non-it users are attracted to subscribing to cloud services, which may not be accounted for by the IT department, particularly IT Risk, Security, Compliance, and Governance organizations. IT departments should partner with their business and jointly evaluate and agree upon which cloud services will be used. Risk Mitigation. It is difficult to determine how well a cloud provider manages a service disruption or supports its clients requirements for data location disclosure and security measures and protocols. Consequently, requirements for data protection and service availability should be strictly governed through the use of contractual service level agreements (SLAs), and customers must understand exactly how SLA metrics are calculated. In addition, customers should evaluate the stability the provider s business, and measure the risk associated with an unsustainable provider of cloud services as some providers have simply gone out of business. Legacy Applications. Core business applications are often highly customized, complex, and entangled. Some applications may not be well suited for the cloud, while other applications are ripe for a migration. As a result, prior to moving any application to the cloud, a readiness assessment should be performed to determine cloud suitability and identification of the target cloud model. In many cases it makes sense to use an experienced third party to perform this analysis who has access to mapping and modeling tools, ROI calculators, and other artifacts to assist in the assessing legacy applications.»» Security, Privacy, and Compliance. With cloud computing, a high concentration of data may be hosted with a single provider. Such a provider is an enticing target for hackers who would have access to a wealth of information if they successfully breach the security measures in place. Enterprises who are moving to the cloud should have a deep understanding of the security technologies and procedures that their service providers put in place, including a review of what is included and what is not included. Never assume that basic security services are included as part of a base cloud service, especially for self-managed clouds where the customer, not the provider, manages the infrastructure. Although not new to the IT industry, issues related to privacy include jurisdiction of information (where and under what set of laws the data resides), access and controls, the availability of audit trails, and compliance with industry and legal standards and regulations, such as the Statement on Standards for Attestation Engagements (SSAE) 16 and the International Standard on Assurance Engagements (ISAE) Be sure to select a cloud service provider that meets your particular regional, industry, and regulatory requirements. 9

10 Cloud Deployment Models The cloud can be deployed in different ways. It is important to understand the differences among cloud deployment models and how they align with your requirements and goals. For most businesses, organizations, or governmental agencies, there are four relevant types of clouds: private (internal or provider-hosted), public (external), virtual private (provider-hosted), and hybrid. The four models are summarized below. Enterprise Private Cloud This cloud deployment model is ideal for organizations under strict privacy restrictions (such as financial institutions and government agencies) or that need to support high performance applications in the cloud. 4 A private cloud is a single-tenant platform that allows an enterprise to implement cloud technologies behind a firewall on-premise or off-premise at a provider s data center (internally managed or provider-managed). With a private cloud, data residency or where the data and infrastructure physically resides is determined by the enterprise and therefore private clouds are common with government agencies and regulated private sector companies that have a requirement to guarantee data residency. Private clouds generally have higher transfer rates. A private cloud provides many of the benefits of cloud computing without the loss of control and other risks associated with alternative cloud infrastructure models. A private cloud includes virtualization technology to enhance scalability, resource management, and hardware utilization. In addition, it incorporates data center automation for resource provisioning and consumption metering technologies for chargeback and services-based billing. It also includes a standardized service catalog for administrators to deploy new resources through an administrator GUI or through a command-line interface (CLI). Identity-based security protocols ensure that only authorized personnel have access to appropriate applications and infrastructure. Advantages and Disadvantages A private cloud permits organizations to leverage many of the benefits of cloud computing; however, a private cloud will provide little to no immediate cost savings due to the capital expenditures required. Yet, this option can be financed so that part of its costs qualify as an operating expenditure. A provider-hosted private cloud helps organizations take advantage of cloud computing, as well as service provider tools, techniques, and experience, while limiting security risks. Furthermore, a provider-hosted private cloud frees in-house resources and can provide a reduction in IT support costs by enabling consumptionbased billing. It also eliminates future infrastructure capital expenditures while freeing up internal capacity. In short, this cloud model permits users to leverage provider cloud methodologies, tools, and lower costs. However, it does not provide the optimal promise of cloud computing such as the lowest cost and unlimited elasticity to ramp resources. 4 Amini, Safavi, Khavidaki, Abdollahzadegan. Type of Cloud Computing (Public and Private) That Transform the Organization More Effectively. International Journal of Engineering Research & Technology,

11 Public Cloud A public cloud provides an ideal platform for rapid proofs of concept, pilots, demos, and an environment for straightforward development and/or for on-demand performance testing. It is a multi-tenant platform that allows organizations to use infrastructure and applications via the Internet. This shared pool of networks, servers, storage, applications, and services are available to multiple people or enterprises. End users, without actually possessing these resources, can gain access to them easily on demand via a Web browser from a workstation, laptop, and/or mobile device wherever and whenever they are needed and with minimal management or service provider effort. Examples include Verio s Cloudn and Dimension Data s Managed Cloud Platform (MCP). Advantages and Disadvantages Since it is a shared capability, a public cloud can be a very cost-effective cloud computing option. The major downside of this cloud computing model is the location and security of proprietary information. The location of data is also of great consequence since it determines under which laws the information resides. In addition, most public clouds are not built for high availability because they are cost-driven platforms. Most public cloud servers do not automatically failover in the event of an outage. As a result, enterprises may be forced to spend additional monies for backup or failover environments. Service levels are typically designed to support only development and test environments in a best effort mode, not production systems for enterprise-class workloads such as ERP, CRM, HR, or financial applications. Lastly, public clouds are built for a consumer-class marketplace whereby customers are typically individual users or small businesses with relatively simple applications. As such, public clouds will always accept credit card payment, which encourages shadow IT growth and remains problematic for enterprise IT departments to discover, monitor, report, and enforce compliance with formal purchasing processes, legal reviews, security evaluations, and company policies. Virtual Private Cloud Virtual private clouds (VPCs) have all of the advantages associated with a private cloud together with financial benefits. This model of cloud computing enables a private cloud solution to be provided within a public cloud provider s infrastructure. In other words, a virtual private cloud has all of the characteristics of a private cloud with dedicated VLANs, providing network isolation, virtual private networks, and dedicated firewalls, except it is hosted within a multi-tenant environment. Advantages and Disadvantages VPC customers gain a higher level of security and regulatory compliance, which is appropriate for critical data such as patient health records or customer financial transactions. In addition, VPCs offer higher performance because the virtual servers do not have to share processor time or data buses. Providers can customize the service and VPCs offer cost savings versus a traditional data center. In addition, a VPC permits enterprises to retain complete control of all data. On the other hand, VPCs may be costlier than a public cloud if the workload is small, infrequently used, or does not require enterprise-class service levels for 11

12 availability, performance, or security. Moreover, they are multi-tenant since a service provider shares some physical hardware with multiple customers even though separated by virtual security. Hybrid Cloud Infrastructure A hybrid or mixed cloud environment provides the best of both worlds combining one or more cloud deployment models. Typically, with this model, a public cloud is leveraged to extend or supplement a private cloud or on-premise system. According to the National Institute of Standards and Technology, a hybrid cloud infrastructure is a composition of two or more distinct cloud infrastructures (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load balancing between clouds). Community Cloud Computing According to Gartner, community cloud computing refers to a shared cloud computing service environment that is targeted to a limited set of organizations or employees (such as banks or heads of trading firms). The organizing principle for the community will vary, but the members of the community generally share similar security, privacy, performance, and compliance requirements. 5 Implementing a hybrid cloud allows enterprises to pick and choose which applications within the portfolio reside on a public versus private cloud. For example, this model permits financial applications with the most proprietary information to remain behind a firewall, while other software with which the financial application may communicate, such as customer service, HR, or supply chain, can reside on a public cloud. Another case in point is an organization which employs a private cloud for its mission-critical production application and a public cloud for its development and testing workload. In addition, the public cloud can be used to support peak demand needs, which is often referred to as cloud bursting, where workloads are moved from private environments to public clouds and vice versa. 6 Advantages and Disadvantages A hybrid cloud enables enterprises to balance flexibility, scalability, performance, and total cost of ownership. A hybrid cloud infrastructure supports high capacity time periods and mitigates security risks on mission-critical applications. It permits enterprises to leverage the advantages of a public cloud for more portable and appropriate applications while maintaining control over legacy and mission critical systems with greater compliance, performance, and security requirements. By keeping the most sensitive data out of a public cloud, companies can add an extra layer of security to selected business processes. By placing the right applications on the right cloud, this infrastructure also can help to optimize overall performance. 5 Gartner, Inc., IT Glossary, 6 Reid, Stefan. Cloud Bursting Stimulates New Cloud Business Models. August 8,

13 The hybrid model facilitates an optimal approach for architecture since organizations can combine on-premise infrastructure with infrastructure that is scalable and provisioned on demand. Accordingly, a hybrid cloud offers substantial cost savings at the same time as enabling almost unlimited flexibility. It is important to note, ho wever, by using this model, enterprises are trading additional cost savings for other benefits. Because of its considerable advantages, the hybrid cloud model is likely to be the most widely adopted infrastructure for global enterprises. Because of its considerable advantages, the hybrid cloud model is likely to be the most widely adopted infrastructure for global enterprises. The Need for Integrated Cloud Application and Infrastructure Services Obtaining and implementing a cloud infrastructure is not enough to optimize the benefits and mitigate risks of cloud computing. Realizing the benefits of the cloud requires a partner that can assist with a cloud adoption strategy as well as offer proven cloud application and infrastructure services, a cloud methodology or framework, and an integrated set of tools. A provider that offers advisory services can help you answer key questions when considering the cloud and develop a cloud adoption strategy that enables you to understand where the cloud can benefit your business and the architecture best suited for your environment. Most of the drawbacks with a hybrid cloud are associated with the public cloud. However, a hybrid cloud brings with it some unique challenges. One of the most significant is the complexity of monitoring and managing all portions of the hybrid cloud from a common portal or service desk. This requires considerable engineering on the part of the IT organization or the acquisition of third-party orchestration tools or the services of a cloud services broker. Such a broker can also assist in the construction and implementation of complex service level agreements for both the private and public clouds. Additionally, to ensure the smooth transfer of data, complex networking is needed. Key Questions When Considering the Cloud How do I integrate my cloud services? What services make sense to be in the cloud? How can I use PaaS to improve time-to-market? What specific cloud technologies are my competitors leveraging?»» How do I optimize my organization around my cloud services? 13

14 Applications services are also necessary to assess the cloud readiness of targeted applications or to integrate pre-existing applications resident on a cloud within an existing infrastructure and applications portfolio. Services such as applications rationalization and modernization are also desirable to ensure success prior to any migration. Most importantly, enterprise application services and applications management services under a detailed SLA are a necessity to outline how well a cloud provider is mitigating risks. Finally, multi-shore delivery allows for a cost-effective solution and helps you realize material, short-term cost savings with ongoing long-term returns. In addition to application services, you ll want to seek out providers with integrated infrastructure services since the availability, speed, seamlessness, and end-user satisfaction with any cloud-based solution are vendor dependent. Success entails a provider that can evolve, operate, and maintain the systems that support your mission-critical applications in an optimal manner. Offered services and vendor competencies must include: remote infrastructure management, ITIL-based service desk operations, and state-of the-art data center services. Another important ingredient for leveraging cloud computing technology is a cloud suitability, target model analysis, and migration framework and an integrated suite of supporting tools. Such a framework will provide organizations with a systematic approach for the adoption of cloud technology with a holistic cloud strategy and roadmap. According to industry analysts, successful cloud engagements progress in stages, beginning with baseline assessments and strategy sessions through implementation and management (see figure.) The Typical Stages of Cloud-Related Service Engagement Cloud Workshop Cloud Assessment Cloud Strategy Design Implementation Management Source: Gartner, Inc., Competitive Landscape: Cloud-Related Consulting, Implementation and Management Services, Ed Anderson, August 13,

15 Selecting a Cloud Partner One of the most important decisions enterprises will make as part of a cloud strategy is the selection of a cloud partner. Such a partner can ensure your cloud adoption, migration, and integration is smooth and seamless. We recommend you select a partner who supports a full lifecycle of cloud needs. Look for a partner with a holistic cloud approach and significant cloud expertise, which can advise and support businesses from strategy to a fully optimized and managed cloud environment. An appropriate selection process necessitates comprehensive due diligence and the investigation of service provider characteristics and potential risk factors. The following factors should be carefully evaluated: Demonstrated Expertise Can the potential partner show a track record of success in helping global organizations leverage the cloud? Do they have expertise in your industry working with similar enterprises? Can the service provider validate their experience managing both applications and infrastructure on an outsourcing basis and in end-to-end continuous support and transition services? Holistic Approach Does the potential partner provide advisory, modernization, operations, and management services? Can the service provider assist you in developing a cloud vision, strategy, architecture, and road map? Can the provider offer readiness services such as application rationalization, virtualization, modernization, infrastructure consolidation, and data center rationalization? Does the potential partner understand legacy applications and the impact of the infrastucture on your applications? Security and Enterprise Readiness Does the provider have comprehensive security and governance policies and procedures including intrusion and virus detection? Do they have high availability data centers with redundant infrastructure and backup and restore capabilities and disaster recovery services? Comprehensive Cloud Lifecycle Services Can the potential partner deliver proven cloud lifecycle services, including strategy and roadmap development, implementation, integration, migration, custom development, and ongoing management, support, and hosting services? Cloud Service Flexibility Does the potential provider have a breadth of cloud services and service models (Iaas, SaaS, PaaS, ipaas)? Can the provider support private, public, virtual private, and hybrid clouds? Financial Health and Global Footprint Does the service provider have sufficient size and financial resources to ensure its existence as an ongoing concern? Can it support enterprises across the globe with local resources as required?»» Service Level Agreements and Track Record Does the service provider use detailed SLAs tied to meaningful metrics? Has the potential partner established a reputation for success in meeting SLAs based on past performance? 15

16 Conclusion The market for cloud technology and integrated services has transitioned from early adopters and successful pilots to mainstream use by enterprises of all kinds, as a result of the maturing of cloud vendors and related services. If your organization is considering moving to the cloud for the first time or expanding cloud operations, it is important to work with a cloud services provider who can help you understand the differences of cloud service models and the advantages and disadvantages they present to your organization. An experienced cloud partner can also help you optimize the benefits and mitigate the risks from cloud computing by working with you to develop a cloud adoption strategy as well as to offer proven cloud application and infrastructure services, a cloud methodology or framework, and an integrated set of tools. An appropriate selection process necessitates comprehensive due diligence and the investigation of potential vendor characteristics and risk factors. In short, trust, but verify. THINK SMART. ACT FAST. FLEX YOUR BUSINESS _07-WHP-Cloud_Computing 16

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