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Managing Hybrid IT through Cloud Service Brokerage

Managing Hybrid IT through Cloud Service Brokerage. Kevin L. Jackson Vice President and General Manager, NJVC Cloud Services. TechGate 2013 September 21, 2013. A New Approach For IT: Cloud Service Integration. Build your new cloud ecosystem

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Managing Hybrid IT through Cloud Service Brokerage

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  1. Managing Hybrid IT through Cloud Service Brokerage • Kevin L. Jackson • Vice President and General Manager, NJVC Cloud Services TechGate2013 September 21, 2013

  2. 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

  3. Transitioning to Cloud Requires a New IT Ecosystem and Operational Model–Hybrid IT CloudVAR Cloudenabler Cloudbuilder Pureconsulting Pure ISV software CloudBroker SaaSprovider Cloudintegrator Cloudinfrastructureprovider Cloud Services Ecosystem Modified from Forrester: August 10, 2011 “Cloud Broker — A New Business Model Paradigm” Hosting Provider 3

  4. Adopting Cloud and Hybrid IT: Problems for Government and Commercial Enterprises No One Way to Manage Financial Transactions for Cloud B2B Contracts Control and Alignment CFO CIO A Private Clouds Agency, Business and ITUsers B Public Clouds Access, Solution & Consumption C Managed Services D Cloud Admin Fortune 500 Enterprises ITO Multiple Providers Secure Cloud Services and Ops Integration

  5. Cloud Services Brokerage Provides IT Supply Chain Management ITaaS Products Infra Perf Management Managed Updates Managed Services • For the Broker: • Enhance the merchandizing and ordering experience • Improve customer satisfaction • Make it easier to do business with cloud and managed services providers Cloud and IT Services Provider Ecosystem Clouds Private PaaS Private IaaS PublicIaaS App PerfManagement • For Agencies/Biz: • Fast IT • Easy to use • Cost visibility • Choice • Flexibility • Control Backup Management Test/Dev Cloud DR Cloud SI Private Cloud SavvisPublic Cloud AmazonPublic Cloud Consulting/Operations Security Monitoring Secure, Enterprise Cloud Disaster Recovery

  6. Cloud Services Brokerage Complements Cloud Management Platforms CIO/CFO IT Architects Systems Integrator Sourcing/Procurement Mgrs CIO and CFO Command and Control Cloud Services Broker Solution Design and Matching Sourcing and Procurement Engine Commerce Broker Catalog and Pricing Engine Self-Service Catalog ITSM Service Request Catalog Workflow Mgmt. Typical Enterprise Platform Cloud Automation External Service Provisioning Engine Hybrid Cloud Management VMWARE Open Stack Cloud Foundry GreenPlum VMWARE Public Iaas vBlock Paas AWS, Terremark, Savvis Enterprise (Private Cloud) Public Providers

  7. Cloud Services Brokerage Supports Entire Cloud IT Lifecycle and drives Operational Excellence Recalibrate and Optimize Screen Plan Configure Source Govern • Compare applications • Identify target infrastructure • Estimate readiness and value of cloud • Select candidate application • Define capacity • Estimate migration ROI • Build migration business case • Project migration roadmap • Define environments • Design arch layers • Simulate application architecture • Estimate monthly bill of materials • Approve bill of materials • Approve Ts & Cs • Submit aggregated order • Instantiate and deploy resources • Monitor resource use • Monitor periodic spend • Ensure provider compliance • Execute recalibration when needed

  8. 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

  9. Use Case: The State of Texas • 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 ApplicationWorkload Portfolio State of Texas Cloud Ecosystem Operator State Agencies Commodity Cloud AWS Command &Control CIO Enterprise Cloud Savvis Terremark Cloud design (app arch, service agg &capacity model) CTO/ITArchitects Cloud Services Broker Sourcing &Procurement Managers Spend Analysis &Order Mgmt Gravitant cloudMatrix platform Gazaang Security Certificate VPN Security Services IT Ops Mgrs& Sys Admins Dashboards Resource Mgt VAR/ System Integrator Managed Service Providers Managed Services Backup monitoring with 3rd providers Ancillary Services Cloud Onboarding, Managed Services Market Management

  10. Use Case: NCOIC Geospatial Community Cloud Demonstration

  11. 70% of IT Organizations Believe Cloud Lowers Costs1, but Leakage Eats Away at Promised Savings Sources of Cloud Leakage Other Key Challenges • 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 8% actual cost savings Leakage reduces cost savings 57% promised savings The cloud takes shape - Global cloud survey: the implementation challenge, KPMG, January 2013.

  12. Cloud Service Brokerage: A Practical Path to Cloud Computing • Easy to Use and Manage • Solution Design and Matching • Automated Sourcing and Billing • Pricing Arbitrage and Optimization • Closed-Loop Decision Support • Risk Reduction

  13. Lessons Learned: • 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

  14. Questions and Answers

  15. Thank You Kevin L. Jackson Vice President & General Manager NJVC Cloud Services 703.429.9073 kevin.jackson@njvc.com www.njvc.com

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