I D C T E C H N O L O G Y S P O T L I G H T

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1 I D C T E C H N O L O G Y S P O T L I G H T Leveraging the Benefits of Private Cloud Services in a Converged Infrastructure March 2011 Adapted from Worldwide Enterprise Server Cloud Computing Forecast by Katherine Broderick, Michelle Bailey, and Matthew Eastwood, IDC # Sponsored by HP Organizations mired in the increasing complexities of IT want to create a different, more dynamic environment where infrastructure can automatically and cost-effectively respond to changing business conditions. The vision is to eliminate most of the integration and manual tasks performed by IT staff and find a solution that ensures a predictable, scalable, and secure operating environment one that's easier and faster to deploy, simpler to manage, and quicker to generate measurable business value. Until recently, various attempts to achieve these goals have fallen short. However, virtualization and converged infrastructure are providing initial success in reducing hardware and operational costs while creating a more agile and responsive infrastructure. IDC defines "converged infrastructure" as the development of a datacenter (or closet) infrastructure based on a set of factory-integrated IT components (e.g., compute, storage, networking, virtualization, and automation) as the standard operating environment for the virtual datacenter. The goal is no longer to deploy and discretely manage each element but to build an optimal simple-to-manage datacenter environment. IDC believes that there are benefits to organizations that can adopt converged infrastructure and also offer cloud computing type services within the walls of their own datacenters. Private cloud solutions most valuable to businesses are those that provide a simplified way to help organizations move from existing infrastructure to a service-oriented model by a private cloud. This paper examines the major forces driving the need for converged systems utilizing private cloud based solutions. It also looks at the role HP plays in this strategically important market. Introduction: Taming IT Complexity with More Manageable and Responsive Infrastructure IT complexity has reached an all-time high after more than a decade of increases in the size of IT environments due to the proliferation of systems, devices, storage, and management tools. As IT organizations grapple with making each new technology acquisition work within their existing environment, they often find the process is too complex, requiring sophisticated staffing expertise and significant lead time for deployment and testing. Furthermore, traditional server, storage, and network systems are created as separate business processes or sometimes installed in their own "silos," further complicating interoperability, efficiency, and problem resolution. Overprovisioning server resources has been a prevailing tactic to ensure application performance and service levels. Server virtualization became the "killer app" for the datacenter by allowing IT organizations to run multiple applications per physical server. Virtualization has not only improved the utilization rates of existing server hardware but also lowered spending requirements for new server hardware. The real dilemma is that as the growth in physical infrastructure flattens out, the number of virtual machines explodes. Although virtualization can help alleviate some of the IT complexity issues by reducing hardware costs and creating a more dynamic and mobile infrastructure, the ability to IDC 1088

2 successfully implement and manage virtualization is increasingly complicated. Consequently, IT's challenges only increase as virtualization becomes the default standard for the datacenter. Complex and inflexible infrastructures limit an organization's ability to respond to changes in the business and make it difficult to innovate or launch new revenue-generating projects. As IT organizations struggle with systems integration challenges, the management costs associated with systems deployment, integration, and maintenance drain IT budgets and staffing resources almost as fast as they drain investment capability in business expansion. A lack of automation results in IT personnel being mired in repetitive, lower-level work that leaves them little time to innovate or perform more business-critical tasks. Complicating matters further, many large organizations are conglomerations of smaller independent business units or companies, so the services provided to them are often not completely understood, itemized, or predictable. Also, many systems are disconnected from business processes, hampering the organization's ability to implement, monitor, and enforce governance or adapt to change. Given that creating a governance model is essential for integrating cloud resources into IT strategies, organizations require a more comprehensive and holistic approach that will work in their infrastructure. Because virtualization alone cannot resolve these situations, providing agile technology solutions such as "IT as a service" or the ability to take advantage of the numerous benefits of cloud computing has remained elusive. Converged Infrastructures and Cloud Services Usher in a New Business Cycle Accordingly, a number of organizations are reinventing their IT infrastructure to create more efficient and business-ready platforms. IDC believes that we have entered a new business cycle, where multiple technologies are converging into a single, tightly integrated system that is application aware as well as automated and, with proper process and governance components, can take full advantage of the cloud. Converged infrastructures are rapidly becoming an attractive option over standalone solutions. Convergence not only lowers complexity but also is an enabling vehicle for a shared service model of computing one that maximizes hardware utilization, improves availability, contains management costs, and reduces time to deployment. Single, tightly integrated systems allow organizations to create a dynamic environment where infrastructure can automatically grow, shrink, and redeploy at an optimized price point or monthly fee, as business demands change. Converged infrastructures can be deployed faster than standalone hardware. They provide improved availability with preset service-level agreements (SLAs) and can lower management costs through the use of automation tools. Converged infrastructures are more adept at supporting governance, which enables an organization to align business and IT. Governance also facilitates improved resource allocation, strategic planning, decision making, communication, and performance between business units and across IT functional silos. Moreover, automating governance within a converged infrastructure facilitates stringent standardization of components and processes, making compliance and enforcement easier to achieve. Converged systems and automated processes create a more agile environment while eliminating or minimizing the need to perform manual tasks. They ensure a predictable operating environment, enabling business value to be achieved more quickly. Tightly integrated systems also allow an organization to build an infrastructure that supports cloud services within the walls of its own datacenters as any of the following models: Private cloud, where converged systems arrive preintegrated and ready to use or the final integration is done onsite Public cloud, where systems are hosted entirely offsite Hybrid cloud, which combines both public and private cloud services IDC

3 Increasing Importance of Converged Infrastructure and Cloud Computing Converged infrastructure and cloud computing are considered viable ways to let IT managers spend less time and budget on maintaining current infrastructure and more time on new initiatives to improve business value. In lieu of dedicated IT stacks for each application or system, converged systems convert inflexible and expensive technology silos into sharable virtual resources. They support numerous applications and enable on-demand delivery of resources, allowing organizations to meet evolving business demands. Cloud computing delivers the benefits of converged systems along with greater agility, less complexity, and faster innovation. It combines efficient use of multitenant (shared) resources, radically simplified packaging, self-service provisioning, highly elastic and granular scaling, flexible pricing, and broad leverage of Internet standard technologies to make offerings dramatically easier and cheaper to consume. Totally flexible and highly tailored to real-time demand, public cloud computing dismantles the traditional model of IT, where hardware, software, operating system, and data reside in a fixed, secure geography. By distributing IT computing power in a broad landscape, cloud infrastructures rapidly open up the environment's operating systems, applications, and data to the business. Although this distribution is highly disruptive compared with traditional fixed and geographically stable IT, it is also a high-flexibility model, where per use is the rule and the metrics of IT are reshaped. Cost of ownership and the ratio of unused resources vanish. Flexibility up and down the IT stack becomes a real opportunity to accurately tailor IT strength at any moment. In addition, pay per use can often reshape user behavior by introducing a market discipline into the process of planning and consuming IT resources. Key Trends: IT Solutions Moving into Private, Public, and Hybrid Clouds Cloud services represent an emerging model for online delivery of many different business and consumer offerings. Favorable economics (e.g., resource sharing, high utilization through virtualization, pay-per-use pricing) is one of the cloud's most appealing characteristics. In addition, recent IDC survey results indicate that time to value and "elastic scaling" being able to quickly get access to more resources, such as storage, compute cycles, or application services, as needed were attractive characteristics of the cloud model. Faster solution and application implementations as well as quicker access to new functionality were also important to survey respondents. Public, private, and hybrid cloud models are still in their early adoption stages and in flux. Today, many enterprises' services portfolios include both private and public cloud services. Some specific services are delivered through a combination of public and private models. For instance, partial or controlled aspects of public cloud computing are implemented in , and various collaboration tools are heavily "clouded." In addition, enterprises are considering public cloud deployment for select customer-facing applications, for IT departments, and for storing and managing data. Meanwhile, the more nascent private cloud model is continuing to evolve as infrastructure, software, and service providers collaborate on a range of new offerings and solutions. It's important to note that the notion of private clouds didn't just arise suddenly from public clouds, Private clouds are an evolutionary next step in CIOs' decadelong efforts to transform their organizations into serviceoriented IT delivery providers what IDC has referred to for almost 10 years as the journey toward "dynamic IT." Private clouds (and public clouds for that matter) are built on the key elements of that transformational road map consolidation, standardization, virtualization, automation, process, and governance. They add important new functions: security (especially around identity management), turnkey packaging, self-service provisioning and administration, more granular and elastic scaling, granular usage metering, and leverage of Internet standards and technologies. Currently, public clouds are less enterprise focused than private clouds. Furthermore, 44% of respondents to a recent IDC survey are considering private cloud because customers see private cloud technology more as a driver for improved response to the business than as a cost-saving mechanism IDC 3

4 For the past 10 years, many CIOs have found the journey to dynamic IT, based on conventional infrastructures, difficult but worth the effort. Dynamic IT has been a stepping-stone to virtualization, which in turn has enabled private clouds. New tools and recently introduced products and services can now help CIOs move much faster down the dynamic IT path toward private cloud solutions. Considering HP's Cloud Solutions HP's view is that tomorrow's leaders will run IT as a multisourced, hybrid service delivery organization one that provides the right outcomes, in the right time frame, at the right price. Cloud services are a key delivery mechanism to do just that. But it's not as easy as just flipping a switch. The CIO must be able to understand the performance, security, and availability requirements of each service and then select the best method of service delivery. HP provides cloud consulting services, infrastructure, software, solution integration, customization, and support services, allowing organizations to create a comprehensive cloud ecosystem. HP Technology Consulting services provide solutions including a portfolio of products and services that deliver end-to-end private cloud compute service. HP Cloud Consulting services provide rapid, one-touch provisioning across infrastructure, applications, and business services. HP Cloud Solutions give CIOs a simplified starting point to move from a technology-focused supply model to a serviceoriented model by implementing a private cloud. Using the private cloud, companies can request a compute service from a catalog of predefined services that are provisioned immediately, improving the time to market. Companies can choose between different pricing models and easily scale or cancel a service without worrying about management or upgrade issues as well as security and other challenges. Service users receive regular reports on consumption or chargeback and can adjust a service based on usage requirements and cost associated with the service. All the work is done from a central management console, a self-service portal that provides role-based access to use tools and templates that automate infrastructure and application provisioning. By utilizing the private cloud, organizations get the numerous advantages and services-on-demand flexibility of the public cloud, with the speed, security, transparency, and scalability of a datacenter that is under their control. HP CloudSystem is the most complete, integrated and open platform that enables enterprises and service providers to build and manage services across private, public and hybrid cloud environments. In addition, HP has created a comprehensive service-based approach that includes hybrid sourcing options such as private cloud and public cloud for companies that want to use both models. HP has partnered with Microsoft and created HP VirtualSystem, a Converged infrastructure solution designed to take the complexity out of virtualizing server environments. It helps to maximize performance for virtual workloads, scale resources predictably, and simplify configuration and ongoing management. This lays the foundation for creating a private cloud using HP VirtualSystem, Microsoft System Center, and other key management and governance solutions that can be added to complement the hardware and networking platforms. HP includes security, monitoring, reporting, remote access, and other tools to help companies migrate easily from physical machines to the cloud platform. HP claims provisioning times are reduced up to 80% and compliance management by 75% with one-touch provisioning across infrastructure, applications, and business services. Additional Cloud Solution benefits include the following: Considerable reduction in compliance management time through advanced automation and governance functionality Improved business response time to changing demands with technology services on an as-needed basis rather than through a dedicated system IDC

5 Simplified addition and management of pools of network, storage, and server resources, including enhanced data services (e.g., unified provisioning, disaster recovery on HP storage) Ease and speed of deploying new services Measurable reduction in power consumption HP Services for Microsoft Private Cloud provide the consulting and integration resources needed for effective implementation of a private cloud solution using HP and Microsoft technology building on HP VirtualSystem. The cloud services can extend HP VirtualSystem to deliver a private cloud "compute" system. Using this system, organizations can build a catalog of cloud services, one service at a time, while maintaining the security and reliability of the enterprise data center. HP Services for Microsoft Private Cloud Starter system can be extended and customized for building a comprehensive enterprise private cloud solution. Choose from options that include the following: Additional compute services for Windows templates, storage tiers, backup policies, workflow customizations, security integration and high availability SLA management Software lifecycle management Disaster recovery and data replication The HP Transformation Experience Workshop for Microsoft Private Cloud discusses the following: Current-state obstacles The future HP and Microsoft cloud infrastructure Benefits and implications of the future solution Definition of the solution infrastructure initiative HP Cloud Roadmap Service delivers a practical step-by-step process for cloud adoption without a large capital outlay. Companies get a full understanding of the program, projects, and main activities to transform their IT into a private cloud consumer. It helps identify areas where businesses can benefit from cloud computing as well as future state definition and both program plan and business case development. It provides guidance on finding suitable delivery and deployment models and the most appropriate governance and program model for incorporating cloud capabilities. Additional support and advisory services include best-practice guidance from HP experts for workload analysis, appropriate service strategies, customization, legacy integration, and service management. HP Cloud Design Service takes a structured, proven approach to designing and deploying scalable, cloud-based infrastructures that smoothly evolve from an organization's virtualization, automation, and datacenter designs. In addition, by using HP Reference Model for Cloud, HP's design principles enable an organization's cloud infrastructure to support a hybrid sourcing model that includes private and public cloud options. In summary, the Cloud Consulting solutions solidify HP's commitment to converged infrastructure, services, and cloud strategies. HP will continue to innovate for the foreseeable future to deliver additional capability and value. IDC believes that this strategy shows a significant collaborative effort inside HP across its software, services, and hardware groups. Additionally, it shows some of the 2011 IDC 5

6 results of the year-old Infrastructure to Application alliance between HP and Microsoft. The unified aspects of HP's strategy are the options and services for the customer and its commitment to efficient datacenters beyond the IT hardware. Challenges Although this paper describes the advantages of deploying a converged private cloud infrastructure, HP has to recognize that this may not be the choice for all customers and workloads today. Control for some enterprise applications may reside inside the business (and outside IT), and this situation can create internal political obstacles for converged infrastructures. Conclusion As businesses around the world are under great pressure to rapidly reshape their physical and virtual IT infrastructure, IT organizations have long sought a panacea where their infrastructure flexes and shrinks as business demands change. This goal remains elusive and will be impossible without the ability to match hardware capacity and application performance against business objectives and the integration of both IT best practices and more sophisticated infrastructures and tools. One way to achieve these goals is the right combination of virtualization, converged infrastructure, and cloud solutions that change the way organizations share and deliver technology resources and services. When converged infrastructure components are virtualized to increase utilization and flexibility, they are better able to respond to and support mission-critical applications. IDC believes that with the right combination of technologies and services, it is possible to evolve an organization's infrastructure so that it can rapidly and automatically adjust to constantly changing business conditions. By leveraging the benefits of cloud services in addition to making the necessary changes in their infrastructures, organizations can build, consume, and manage the type of cloud services that can ensure that their business processes and services are secure, scalable, agile, and effective. IDC believes that to the extent HP can simplify and speed up the process of helping IT organizations leverage the benefits and advantages of converged systems and cloud services while addressing the challenges described in this paper, the company has a significant opportunity for success. A B O U T T H I S P U B L I C A T I O N This publication was produced by IDC Go-to-Market Services. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific vendor sponsorship is noted. IDC Go-to-Market Services makes IDC content available in a wide range of formats for distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about the licensee. C O P Y R I G H T A N D R E S T R I C T I O N S Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For permission requests, contact the GMS information line at or Translation and/or localization of this document requires an additional license from IDC. For more information on IDC, visit For more information on IDC GMS, visit Global Headquarters: 5 Speen Street Framingham, MA USA P F IDC

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