Realize the private cloud potential. Business white paper

Realize the private cloud potential Business white paper

Table of Contents Executive summary... 3 The antidote to rigid infrastructures... 3 Paradigm shift: IT as a service broker... 4 The private cloud journey... 5 Private cloud best practices... 6 Private clouds in action... 6 GS1 Canada: Product Recall service... 6 Carnegie Mellon: HP CloudStart for infrastructure flexibility... 6 Financial institution: Self-service data center... 7 Telecom: Shared infrastructure services... 7 Conclusion... 8

Executive summary Cloud computing, which initially developed around consumer-based services for sharing and collaboration, has the potential to transform the way IT delivers services internally. Organizations concerned about data control, security, and compliance issues sometimes associated with public clouds are considering a data center strategy that incorporates a computing model known as private clouds. Private clouds share many of the same attributes as public clouds including elasticity, efficiency, and economies but are implemented under the control of the IT department. Private clouds enable IT organizations to shift their focus away from infrastructure management and toward providing technology as a service to meet business needs. In effect, the IT organization becomes a strategic service broker, rather than technology provider. As a result, the transition to this new model is more than a matter of having the right technology. Private clouds redefine IT s relationship with users, requiring a clear understanding of how technology is consumed in support of business goals. While virtualization is a core element, a private cloud does more than virtualize hardware and software. To realize the potential of a private cloud, organizations need a roadmap that takes into account both technical and business implications. This paper looks at how private clouds differ from traditional IT architectures, their benefits, and best practices for avoiding pitfalls that can slow or derail implementation initiatives. The antidote to rigid infrastructures Private clouds represent a dramatic departure from a conventional enterprise IT architecture in which every application, piece of middleware, and business process exists as a silo. Typically, applications in a traditional environment have nothing in common in terms of the way they are built and the foundation upon which they re constructed. Build-to-order applications and infrastructures are both time- and resource-intensive. The resulting rigidity hampers flexibility and prevents IT from moving quickly to meet changing business needs. A private cloud, by contrast, starts with a common platform upon which services are built. Within a cloud, each service leverages other building-block services. For example, a messaging service has unique functionality but ideally would be layered on storage-as-a-service, compute-as-a-service, and database-as-a-service. This approach simplifies service creation, speeding time-to-delivery by making use of repeatable service building blocks for standard cloud services offered through the service catalog, as well as for businesses custom project requests. Error-prone manual processes are automated. Cloud resources are utilized across business, technical, and operational boundaries, eliminating the rigidity associated with traditional architectures. The benefits of this approach are many: Cost-efficiency: As standardization and automation are central to a private cloud, IT is able to realize significant economies and fast ROI. Enhanced capacity utilization: Private clouds eliminate over- and under-provisioning of IT services for more efficient resource usage. Agility: With a private cloud, end users gain the ability to order quickly and efficiently the services required to address a changing business environment. Elasticity: On-the-fly provisioning means that IT can readily scale resources up or down as needed in support of expanding or redirected business activities or to address temporary spikes in demand for an application or compute power. Transparency: A service catalog makes clear precisely what the IT organization is providing to the business. Fairness: Metering and consumption monitoring enable a pay-for-service charge-back system that makes sure business units are billed for actual usage, rather than a rate based on the number of employees. Departments that consume more resources pay more. Higher availability: Standardization facilitates disaster recovery, enabling private clouds to deliver enhanced application availability. Policy improvements: Private clouds make it easier to apply policies based on security or compliance across the entire infrastructure or even to specific virtual machines. The value of each benefit will vary from company to company. For example, a manufacturing firm with similar resource usage throughout the company may be less concerned about the fairness of charge-backs than a multi-business unit global corporation that has widely diverse computing requirements. For virtually all IT organizations, however, a private cloud enables reduced maintenance, which frees staff to spend more time and resources creating business value. Private clouds help address two key CIO goals: achieve quality, offer cost-effective delivery of services while exploiting technology to enable an organization s strategy. 3

Public clouds as shadow IT There is no question that public clouds have proven themselves in the marketplace and are here to stay. IDC forecasts a 27.4% compound annual growth rate by 2014 for public cloud services. 1 The immediacy of public cloud services makes them particularly attractive to business users. They view public clouds as a fast, flexible way to get the services they need when they need them and from any device. As a result, line-of-business developers and other users are increasingly bypassing their own IT organizations and subscribing to public cloud services on their own. If problems arise, however, these same users typically turn to their IT department for support. The growing use of public clouds as shadow IT creates more complexity for organizations already spending the bulk of their budgets for operations. The use of public clouds by business users also raises issues of data control, security, and compliance. Paradigm shift: IT as a service broker Perhaps the most powerful private cloud advantage is its transformative nature for enterprise IT operations. Private clouds enable IT organizations to shift their focus from infrastructure management to providing technology as a service. According to an IDC white paper sponsored by HP, Cloud computing transforms enterprise IT operations and infrastructure by service enabling both application resources and infrastructure resources, changing them from dedicated silos of technology into shared resource pools that are available to be configured and consumed as needed to meet IT needs and business goals. 2 This transformation represents another step in the evolution of an enterprise s IT department as a business-centric service provider. With a private cloud, IT delivers services application services, information services, infrastructure services that consumers, that is, employees, business units, and application developers within the company, order from a service catalog. The IT organization serves as a service broker, enabling users or business units to request and receive resources without staff intervention. Changing the way IT delivers services and the way business users consume them has the potential to impact just about everything related to IT: staff capabilities, the way processes are implemented, even the basis for selecting technology. As independent research firm Forrester Research, Inc. notes, one of the market forces that enables cloud computing and drives its adoption is that IT becomes embedded in the business, and buyers are more likely to measure technology investments in business terms, measuring technology value in terms of improved business outcomes, not traditional measures like the scope or speed or size of technology infrastructure. 3 The metering and chargeback capabilities of private clouds reinforce the concept of IT as a service. In addition to enabling pay per use for a fairer charge-back system, metering serves as a feedback mechanism. If users are requesting and willing to pay for specific services, such as a larger Exchange mailbox, IT can use this information for capacity planning. By the same token, services with low utilization can be pulled from the service catalog. Offering IT-as-a-service puts the focus squarely on business outcomes: increased agility, lower costs, and improved quality. For most organizations, This approach to IT configuration, deployment, and operations enables IT organizations to more costeffectively and flexibly satisfy business requirements. 4 1 IDC, Through 2014 Public IT Cloud Services Will Grow at More Than Five Times the Rate of Traditional IT Products, New IDC Research Finds, #prus2239321, June 2010. 2 IDC White Paper sponsored by HP, HP Cloud Infrastructure Services Jump Start Enterprise Decisions and Deployments, #222319, March 2010. 3 Forrester Research, Inc., The Evolution of Cloud Computing Markets, July 6, 2010. 4 IDC White Paper sponsored by HP, HP Cloud Infrastructure Services Jump Start Enterprise Decisions and Deployments, #222319, March 2010. 4

Architecture principles and capabilities Shifting from the classic enterprise architecture siloed approach to a shared services cloud changes the emphasis from technology to services. Business Process Business Process IT-as-a-Service Cloud-Driven Processes Apps MW Server Storage Apps MW Server Storage Apps MW Server Storage Software as a Service (SaaS) Platform as a Service (PaaS) Network Network Network Facility Facility Facility Facility Traditional Enterprise Architecture Technology Centric Project Siloes All business processes Infrastructure as a Service (IaaS) Cloud Platform Cloud Services Architecture Service Centric Composable, Modular One service or selective portfolio The private cloud journey The private cloud changes the way technology providers engage with business customers and individual users, so traditional design principles and operational processes cannot be used. That is why strategic counsel on the cloud infrastructure design that best meets an enterprise s business goals is important. To realize the business value of a private cloud, the design must start with an understanding of end-user needs and how technology is consumed in support of the business. The role of IT changes from choosing an application and implementing it to creating services based on how employees use technology in day-to-day activities. Most end-users need to access functions from multiple applications to effectively perform their jobs. For example, in addition to traditional CRM functions, an enterprise sales team relies on collaboration for creating proposals and requires efficient workflows for contract approvals. A private cloud can integrate those functions into a single orderable service. End users in an insurance company may require easy integration of their messaging service with photographs to facilitate building a file around an accident claim, another orderable service the private cloud can facilitate. Knowing user priorities what users require to effectively perform their jobs defines the way IT functions are packaged as a service. As IDC puts it, cloud services are fundamental business processes and workflows that are executed by applications, transactions, and workloads running on dynamically shared and pooled infrastructure resources. 5 This focus on the consumer enables IT to determine the optimal end-state and drives the private cloud design. Based on a thorough assessment of existing applications and workloads, an organization may learn that it s not practical or feasible to move everything to a cloud. Proprietary applications lacking standard interfaces and sitting on legacy hardware may need to stay where they are, at least initially. As a result, most enterprises will not implement a wholesale replacement of their existing enterprise IT architecture. Moving to a private cloud will likely occur in phases, with the private cloud co-existing alongside traditional models. 5 IDC White Paper Sponsored by HP, HP Cloud Infrastructure Services Jump Start Enterprise Decisions and Deployments, #222319, March 2010. 5

HP CloudStart: Fasttracking a private cloud solution Organizations can take advantage of the cost savings and flexibility of a private cloud with a packaged solution from HP that lets them cloud-enable select applications. HP CloudStart simplifies and speeds private cloud deployments. This modular cloud platform includes hardware, software, and solution integration services delivered by skilled HP consultants. Using this packaged solution. IT builds a catalog of cloud services, one service at a time, while maintaining the security and reliability of the enterprise data center. Within 30 days of hardware and software installation, HP CloudStart offers all the benefits of a private cloud, enabling users to: Order a compute service from a set of pre-defined choices Scale or cancel the service as needed Receive regular reports on consumption and/or chargeback HP CloudStart is built on the HP Converged Infrastructure, a blueprint for creating elasticity in technology environments and the foundation for creating a private cloud. A packaged solution, such as HP CloudStart (see sidebar), allows organizations to build a private cloud one application at a time. An experienced cloud consultant can help enterprises assess their needs and develop a plan for addressing them in the most efficient, cost-effective manner. Regardless of the starting point or desired endstate the journey to a private cloud requires: A structured, service lifecycle approach An assessment of capabilities to identify the gap between the current and desired state A roadmap for closing the gap that addresses people, processes, and technology A flexible design that can evolve to address changing needs Solution architecture blueprint customized to protect current investments A solid implementation plan The key questions to ask are: What is the desired end-state? What are the current capabilities across major domains such as service management, technical architecture, staff, and governance? What is the most effective plan for closing the gaps? The answers to these questions help determine the appropriate roadmap. Private cloud best practices Organizations that have consolidated, rationalized, and virtualized their server environment can build on that foundation for their transition to a private cloud. However, while virtualization is a key enabler, it is only one of the building blocks of a successful private cloud. Automation and self-service functionality are core elements, as are service management, metering, and usage-based pricing. Private clouds also require sound governance policies regarding financial elements, business rules, standards, SLAs, and decision-making processes. Best practices for ensuring the success of a private cloud initiative include: Set your strategy: Identify where you want to be both in the short- and long-term. Laying out a vision of the end goal, along with measurable interim goals, gives everyone a target to work toward. Know what you have: Unless you have a clear picture of current applications and who owns them, it s hard to accurately assess what can be moved to a private cloud and when. Devote adequate time to the design: You want your cloud solution to be an improvement on the current way IT operates. Designing a quality solution takes time. Thoroughly review your options and consider the potential risks and benefits. Plan every step of the transition: The goal is to migrate applications in such a way that it reduces the impact on the business. This requires careful planning. Invest in your people: You want to be sure your operations team is ready to handle the new environment. Education and training go a long way toward ensuring that they truly understand the environment they have to operate. Private clouds in action HP has executed cloud implementations for a wide variety of organizations in the public and private sector. Following is a select set of examples: GS1 Canada: Product Recall service GS1 is the leading global, non-profit, industryled association dedicated to the design and implementation of global standards and services to improve the efficiency and visibility of supply chains across industries. The Canadian arm of GS1 was looking to create a comprehensive, easy-to-access tool to standardize the communication of product recall information between businesses ultimately speeding the removal of potentially harmful products from the supply chain. HP worked with the organization to design and implement a cloud-based communication portal that responded to the industry needs. Developed in conjunction with HP Labs, the GS1 Canada Product Recall program consists of global GS1 supply chain standards; HP software, services, and infrastructure; and the Microsoft.NET Framework. Businesses can use this industry-driven tool to communicate clear handling, disposal, and reimbursement instructions to their trading partners and obtain real-time report-backs on action taken, expediting the recall process. Carnegie Mellon: HP CloudStart for infrastructure flexibility HP teamed with Intel, Samsung, VMware, and Carnegie Mellon, a Pittsburgh-based global research university to implement a private cloud 6

environment based on HP Converged Infrastructure. Using HP CloudStart, the university will replace multiple dedicated clusters with a single cloud environment for performing simulations and data analyses, as well as supporting data storage and data-intensive applications. Carnegie Mellon deployed the cloud environment for two reasons: to help the university better meet an increased need for infrastructure flexibility and to have a production state-of-the-art installation to serve as a test bed for research on cloud computing. Phase 1 of the automated private cloud environment was integrated into the university s existing infrastructure in less than 30 days, providing compute power and storage to several departments, as well as a standards-based environment for research. Phase 2 will expand the project to serve a larger user population. Financial institution: Self-service data center An international investment bank with a presence in major markets around the world was under pressure to use external clouds for agility and cost savings. Analysis and workload characterization determined that building an internal cloud would give the company all the advantages of an external cloud and more. Designed and implemented by HP consultants, the private cloud solution is built on HP Business Service Automation, Service Management, and third-party software. Thanks to the HP Converged Infrastructure architecture, deployment time from design was just three months. The private cloud offers self-service data center capabilities. Telecom: Shared infrastructure services Faced with increasing operating, maintenance, and energy costs, a large telecommunications company worked with HP to analyze server expenses and build a business case for its next-generation data center. Based on this analysis, the company launched a threeyear server virtualization program. Wide adoption of virtualization required changes in the company s infrastructure provisioning model. To optimize its server utilization rate, the company decided to move to a cloud-based infrastructure-sharing model. No longer simply a cost center, the IT department is now run as a business. As an internal infrastructureas-a-service cloud provider, the IT organization offers infrastructure components server, storage, and network on a pay-per-use basis. Application engineers are the consumers, choosing virtual servers, storage capacity, and networks from the service catalog and creating their own configurations. They develop, customize, and test enterprise applications directly on the virtual servers. Choosing a strategic partner for your private cloud journey Development of the right private cloud design is a highly complex undertaking. Working with an experienced vendor can streamline the process and help you realize the full potential of this new strategy. Attributes that spell success include: Experience: HP was involved with cloud computing well before the terminology was widely used. We ve developed deep shared services and service management expertise, and we understand every phase of the servicecentric model strategy, design, transition, and operations. HP delivers the infrastructure and software that powers public cloud services providers and can bring the same capabilities to enterprises. Proven framework: Rather than focus on discrete pieces of cloud computing, we provide a comprehensive framework that enables enterprises to work toward a cloud future that encompasses people, process, and technology. Transformational approach: HP offers a model for achieving your desired target state, helping you identify where you are now and where you want to be, creating a roadmap for getting there, and developing a solid, facts-based business case. Architecture for creating elasticity: HP Converged Infrastructure provides the foundation for private clouds by delivering a blueprint for building a data center that matches the supply of IT resources with the demand for business applications. The five features of the HP Converged Infrastructure virtualized, resilient, open, orchestrated, and modular enable tight integration and synergy among previously siloed servers, storage, networks, and management software. 7

Conclusion Enterprises are considering cloud computing as a more efficient and more cost-effective alternative because of the time and resources required for buildto-order applications and infrastructures. Private clouds allow for fast provisioning and de-provisioning, reduce operating costs, and provide the flexibility and agility that today s businesses demand. Scale-up capabilities enable IT to meet computing demands without acquiring new hardware and software, thereby cutting time-to-market for new products. Additionally, automating the management and delivery of traditional applications yields more time and resources for developing strategic solutions. Realizing the full potential of a private cloud requires creating a vision and setting a strategy for delivering IT-as-a-service that meets the needs of the business. Working with a strategic partner to design the right solution, build a business case, and identify transformational risks is crucial to the success of private cloud initiatives. HP Cloud Services HP cloud consulting and support services include: HP Cloud Discovery Workshop: A half-day or full-day engagement for C-level business decision makers, CTOs, and chief architects to facilitate an understanding of cloud opportunities, benefits, and business implications, and to build a consensus on cloud vision and concepts. HP Cloud Roadmap Service: To develop a strategic cloud architecture, conduct gap analysis and program planning, assess ROI, and build a multi-year roadmap for cloud adoption. HP Cloud Design Service: A detailed architectural analysis to identify specific technology, tools, and standards recommendations for deploying a cloud solution. HP Cloud Security Service: An analysis of 15 domains of cloud security to create a cloud computing security and compliance remediation roadmap. HP Cloud Implementation Service: Factory pre-integration services, onsite installation expertise, proven and scalable methodologies, and flexible customization capabilities to accelerate cloud adoption. HP Support Services for Cloud: Advice, analysis, multi-vendor support, remote support, and technology services for continuous improvement across the integrated cloud environment. HP Education Services: Flexible options for addressing change management and training needs including instructor-led classrooms, remote classrooms, and self-paced courses on topics such as ITIL, virtualization, data center, system management, networking, and storage. To learn more about private clouds and how HP Converged Infrastructure provides the foundation for private clouds, visit www.hp.com/services/cloud and www.hp.com/go/convergedinfrastructure Get connected www.hp.com/go/getconnected Get the insider view on tech trends, alerts, and HP solutions for better business outcomes Share with colleagues Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. 4AA3-2214ENW, Created January 2011