Managing Hybrid IT through Cloud Service Brokerage

Kevin L. JacksonVice President and General Manager, NJVC

Cloud Services

TechGate 2013September 21,

2013

A New Approach For IT: Cloud Service Integration

Build your new cloud ecosystem Embrace hybrid IT and recognize

various stakeholder needs Use a IT supply chain management

paradigm Complement and extend current IT

infrastructure Expect change and plan for it

NJVC, LLC Proprietary Data. Do Not Distribute

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CloudVAR

Cloudbuilder

Cloudenabler

Cloudintegrator

Cloudinfrastructure

provider

SaaSprovider

CloudBroker

Modified from Forrester: August 10, 2011 “Cloud

Broker — A New Business Model Paradigm”

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Cloud Services Ecosystem

Hosting Provider

Pure ISV software

Pureconsulting

Transitioning to Cloud Requires a New IT Ecosystem and Operational Model–Hybrid IT

Adopting Cloud and Hybrid IT: Problems for Government and Commercial Enterprises

4

Public Clouds

Managed Services

Private Clouds

ITO

A

D

B

C

Fortune 500Enterprises

Agency, Business and ITUsers

CFO

CloudAdmin

CIO

Secure Cloud Servicesand Ops Integration

No One Way to ManageFinancial Transactions for Cloud B2B Contracts

Multiple Providers

Control and Alignment

Access, Solution & Consumption

Cloud Services Brokerage Provides IT Supply Chain Management

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Infra PerfManagement

App PerfManagement

Backup Management

Security Monitoring

Managed Updates

Disaster Recovery

Man

aged

Ser

vice

sCl

ouds

Cons

ultin

g/O

pera

tions

PublicIaaS

PrivatePaaS

SI Private Cloud

Secure, Enterprise Cloud

SavvisPublic Cloud

DR Cloud

AmazonPublic Cloud

Test/Dev Cloud

PrivateIaaS

For the Broker:• Enhance the

merchandizing and ordering experience

• Improve customer satisfaction

• Make it easier to do business with cloud and managed services providers

ITaaS Products

For Agencies/Biz:• Fast IT • Easy to use• Cost visibility• Choice• Flexibility• ControlCl

oud

and

IT S

ervi

ces

Prov

ider

Eco

syst

em

Cloud Services Brokerage Complements Cloud Management Platforms

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Commerce Broker Catalog and Pricing Engine

Sourcing and Procurement Engine

Solution Design and MatchingCloud Services Broker

CIO and CFO Command and Control

External Service Provisioning Engine

IT Architects

PublicIaas

Paas

Public Providers

VMWARE

Cloud Foundry GreenPlum

AWS, Terremark, Savvis

vBlock

VMWARE

Cloud AutomationHybrid Cloud Management

Self-Service Catalog

ITSM Service Request Catalog

OpenStack

Enterprise(Private Cloud)

Typical Enterprise Platform

Workflow Mgmt.

CIO/CFO Sourcing/Procurement Mgrs Systems Integrator

Cloud Services Brokerage Supports Entire Cloud IT Lifecycle and drives Operational Excellence

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• Compare applications

• Identify target infrastructure

• Estimate readiness and value of cloud

• Select candidate application

Screen

• Define capacity

• Estimate migration ROI

• Build migration business case

• Project migration roadmap

Plan

• Define environments

• Design arch layers

• Simulate application architecture

• Estimate monthly bill of materials

Configure

• Approve bill of materials

• Approve Ts & Cs

• Submit aggregated order

• Instantiate and deploy resources

Source

• Monitor resource use

• Monitor periodic spend

• Ensure provider compliance

• Execute recalibration when needed

Govern

Recalibrate and Optimize

Transition Challenges: Learn from Uncle Sam!!

Focus on mission or business, not technology

Organizations of any size will use multiple clouds

Normalize technical capabilities and prices when comparing cloud services provider offerings

Holistically managing and monitor cloud services providers

Avoid vendor lock in Realize the full economic and

operational value of cloud computing

Understand and eliminate hidden costs associated with cloud

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Use Case: The State of Texas

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AncillaryServices

ApplicationWorkload Portfolio

State Agencies

Cloud Services Broker

CTO/ITArchitects

Cloud design (app arch, service agg &

capacity model)

Sourcing &Procurement Managers

Spend Analysis &Order Mgmt

CloudEcosystemOperator

State of Texas

CIOCommand &Control

IT Ops Mgrs& Sys Admins

DashboardsResource Mgt

Cloud Onboarding, Managed ServicesMarket Management

ManagedService

Providers

VAR/System

Integrator

Four agencies currently operating in this model

Saved 30 – 50% in infrastructure costs when compared with internal data center costs

Improved agility to onboard to cloud by more than 5X

Gravitant cloudMatrix platform

CommodityCloud

AWS

EnterpriseCloud

SavvisTerremark

SecurityServices

Gazaang Security Certificate VPN

ManagedServices

Backup monitoring with 3rd providers

Use Case: NCOIC Geospatial Community Cloud Demonstration

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70% of IT Organizations Believe Cloud Lowers Costs1, but Leakage Eats Away at Promised Savings

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Physical

Unused Cap

acity

Savin

gs

Ops Sav

ings

Utility Sa

vings

Archite

cture

Inefficie

ncies

Vendor L

ock-in

Billing C

omplexity

VM Spraw

l

Cloud with

out CSB

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Annual C

osts

($k)

Leakage reduces cost

savings

8% actual cost savings

57% promised savings

Sources of Cloud Leakage Other Key Challenges

1. The cloud takes shape - Global cloud survey: the implementation challenge, KPMG, January 2013.

• Technical complexity• “Phonebooks” of APIs• Uncertain availability and performance• Shortcut design and approval cycles

because cloud is “too” fast and easy increases risk

• Sourcing complexity• Apples to oranges sourcing choices • Constantly changing pricing/packaging• Different and complex bills

•Financial complexity• Identifying pricing arbitrage• Financial “leaking faucets” from sprawl• Hard to view actual costs and predict future

costs

Cloud Service Brokerage: A Practical Path to Cloud Computing

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Easy to Use and Manage Solution Design and Matching Automated Sourcing and Billing Pricing Arbitrage and Optimization Closed-Loop Decision Support Risk Reduction

When adopting the cloud computing model or hybrid IT, large enterprises also need to consider cloud services brokerage ad integration

Cloud services brokerage is the step key step towards IT supply chain management and operational excellence

Cloud services brokerage is a proven model that delivers real value

Cloud services brokerage is practical and can reduce the risk of transitioning to the cloud

Lessons Learned:

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Questions and Answers

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Thank You

Kevin L. JacksonVice President & General Manager NJVC Cloud Services703.429.9073kevin.jackson@njvc.com

www.njvc.com

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