With the advent of the public cloud, central IT has a mandate to not be left behind. Having an organization-wide cloud strategy is imperative for maximizing IT agility, while maintaining centralized control and mitigating “shadow IT”. Your cloud strategy should be aligned to maximize your business value. The question is how? In this webinar we show our our five-step framework, based on helping over 1,000 organizations achieve cloud success. You'll learn how to: 1. Identify your cloud motivations 2. Assess your current cloud maturity 3. Overcome the four common cloud challenges 4. Plan your cloud portfolio 5. Choose your cloud adoption pattern - Cloud First, Targeted, or Grass Roots

1. THE FIVE CRITICAL STEPS TO
DEVELOP A CLOUD STRATEGY

2. • Kim Weins
• VP Marketing, RightScale
• Vijay Tolani
• Senior Cloud Solutions Engineer, RightScale
Please use the “Questions” window to ask questions at any time
Your Panel Today

3. • Introduction
• Why Cloud Strategy Matters
• The Five Steps to a Cloud Strategy
• Step 1: Identify your cloud motivations
• Step 2: Assess your current cloud maturity
• Step 3: Overcome the four common cloud challenges
• Step 4: Plan your cloud portfolio
• Step 5: Choose your cloud adoption pattern
• Wrap-Up
• Q&A
Agenda
22

4. RightScale: Cloud-Enable Your Enterprise
Your Cloud Portfolio
Self-Service Cloud AnalyticsCloud Management
Manage Govern Optimize
RightScale Cloud Portfolio Management
Public
Clouds
Private
Clouds
Virtualized
Environments

5. 7 years
10 public and private clouds
50K+ users
6M+ servers
10K+ servers per app
A Trusted Partner
4
“Cloud management tools
bring order to the chaos of
multi-cloud management
without limiting developer
productivity.”
-Dave Bartoletti

6. WHY CLOUD STRATEGY
MATTERS

7. Cloud Adoption Reaches Ubiquity
Public Cloud
Only
Private Cloud
Only
94% of Respondents are Using Cloud
58% 7%29%
Public
and Private
Source: RightScale 2014 State of the Cloud Report

8. 24%
29%
31%
31%
32%
36%
42%
48%
53%
57%
Which private clouds can or can't be used
Cost policies for cloud
Approval policies for cloud
Which public clouds can or can't be used
Availability or disaster recovery policies for cloud
When to choose public or private clouds
Which applications should or should not go to cloud
A timeline for implementing a cloud strategy
Security policies for cloud
The benefit or value the company wants to achieve
Enterprises with Key Elements of Cloud Strategy Defined
Cloud Governance Lags Adoption
Source: RightScale 2014 State of the Cloud Report

9. Without a Strategy, Shadow IT Creeps In
18%
42%
39%
35%
34%
42%
38%
41%
50%
56%
50%
60%
60%
67%
Broker cloud services
Manage all cloud deployments
Build private cloud
Decide when BUs should use cloud
Set policies for how cloud can be used
Select public clouds
Select private clouds
Works in Central IT
Works in Business Unit
Enterprise Views of Role of IT in Cloud
Source: RightScale 2014 State of the Cloud Report

10. STEP 1: IDENTIFY YOUR CLOUD
MOTIVATIONS

11. Step 1: Identify your Cloud Motivations
to gain competitive advantageAccelerate Application Delivery
of staff and infrastructureImprove IT Efficiency
with new geographies and capabilitiesExpand Markets
to optimize for best returnIncrease Investment Flexibility
with continuity of critical applicationsReduce Risk

12. STEP 2: ASSESS YOUR CLOUD
MATURITY

13. Step 2: Assess Your Cloud Maturity
6% 18% 29% 25% 22%
Cloud Maturity of Respondents
Cloud
Watchers
Cloud
Beginners
Cloud
Explorers
Cloud
Focused
No
Plans
Planning First project Apps running Heavy use
Source: RightScale 2014 State of the Cloud Report

14. 0%
20%
40%
60%
80%
100%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Benefits Grow with Cloud Maturity
% of Respondents Reporting these Benefits
CapEx to OpEx
Business continuity
IT staff efficiency
Geographic reach
Higher performance
Cost savings
Faster time-to-market
Higher availability
Faster access to infrastructure
Greater scalability
Benefits Grow with Cloud Maturity
Source: RightScale 2014 State of the Cloud Report

15. 0%
20%
40%
60%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Challenges Decrease with Cloud Maturity
% of Respondents Reporting these as Significant Challenges
Security
Compliance
Managing multiple cloud services
Integration to internal systems
Governance/Control
Performance
Lack of resources/Expertise
Cost
Integration to private cloud
Lack of support from IT
Challenges Decrease with Cloud Maturity
Source: RightScale 2014 State of the Cloud Report

16. Place Cloud Beginners Cloud Focused
#1 Security (31%) Compliance (18%)
#2 Compliance (30%) Cost (17%)
#3 Managing multiple cloud
services (28%)
Performance (15%)
#4 Integration to internal
systems (28%)
Managing multiple cloud
services (13%)
#5 Governance/Control (26%) Security (13%)
Top 5 Challenges Change with Maturity
Top 5 Challenges Change with Cloud Maturity
Source: RightScale 2014 State of the Cloud Report

17. Identifying Next Steps for Your Cloud Journey
16
• Define cloud strategy
• Inventory apps
• Identify shadow use
• First POCs
CLOUD WATCHERS
• Design multi-cloud
architecture
• Prioritize application
portfolio
• Automate operations
CLOUD BEGINNERS
• Offer self-service
portal
• Expand app portfolio
• HA/DR architectures
• Manage costs
CLOUD EXPLORERS
• Cloud First strategy
• Broker cloud services
• Implement DevOps
• Optimize cloud costs
CLOUD FOCUSED

18. STEP 3: PLAN YOUR CLOUD
PORTFOLIO

19. Hybrid Cloud is the Strategy of Choice
Single private
9%
Single public
13%
No plans
4% Multiple private
11%
Multiple public
15%
Hybrid cloud
48%
74%
Enterprise Cloud Strategy
1000+ employees
Multi-Cloud
74%
Source: RightScale 2014 State of the Cloud Report

20. 1. Operate anywhere
2. Maintain vendor leverage
3. Leverage existing investments
4. Optimize costs
5. Future-proof your cloud strategy
6. Access unique capabilities
7. Create resilient architectures
8. Support future business needs
8 Reasons for a Cloud Portfolio
19

21. STEP 4: OVERCOME THE FOUR
COMMON CLOUD CHALLENGES

22. CHALLENGE 1:
CLOUD SECURITY

23. 31%
27%
13%
38%
27%
18%
0%
20%
40%
60%
Cloud Beginners Cloud Explorers Cloud Focused
Respondents that see Cloud Security
as a Significant Challenge
2014
2013
How Big a Challenge is Cloud Security?
Source: RightScale 2014 State of the Cloud Report

24. 23
Cloud
Security
Ecosystem
Cloud
Provider
Enterprise
RightScale
3rd Party
Vendors
Plan for a Cloud Security Ecosystem

25. Capability Who?
Encrypt data in transit Vendor, Enterprise
Encrypt data at rest Vendor, Cloud, Enterprise
Secure communications RightScale, Cloud, Enterprise, Vendor
Systems Configuration /Network segmentation Cloud, Enterprise, RightScale
Integrate with IAM RightScale, Cloud, Enterprise, Vendors
Privileged identity management RightScale, Cloud, Enterprise
Backup/Replicate data RightScale, Cloud, Enterprise, Vendor
Coordinate BC & DR RightScale, Cloud, Enterprise, Vendor
Log cloud activity RightScale, Cloud, Enterprise, Vendor
Shared Responsibility for Cloud Security
24

26. CHALLENGE 2:
DELIVERING RELIABILITY

27. Architect for SLAs
• HA/DR reference
architectures
• Cross-region and cross-
cloud
• Auto-scale to meet
demand
• Hybrid cloudbursting
• Monitor and automate
failover
• Hot, warm, and cold DR
scenarios
Implement DR Architectures
26
Load Balancers
App Servers
Slave DB Master DB
App Servers
Slave DB
< Replicate Replicate >
Load Balancers
PRIMARY WARM DR
DNS

28. Ensure availability
• Separate management
plane from cloud and
cloud applications
• RightScale platform is fully
redundant
• Automate failover
processes for hot, warm or
cold DR
Outage-Proof with Independent Control Plane

29. CHALLENGE 3:
OPTIMIZING COSTS

30. A New Way to Manage Capacity
29
InfrastructureUsage
Time
Traditional On-Prem Capacity
Waste of
overprovisioning

31. A New Way to Manage Spend
On-premises model
Upfront spending decisions
On-demand model
Continuous spending decisions
1. Project maximum demand
2. Define infrastructure required
3. Negotiate prices
4. Get internal approvals
5. Manage to capacity
1. Forecast ranges of potential use
2. Allocate budgets
3. Monitor spend
4. Allocate costs
5. Continually optimize spend

32. CHALLENGE 4:
DEVELOPING A CLOUD
CULTURE

33. Culture is Critical
32
“Shifting to a hybrid or public cloud model
is a cultural shift, not a technology or security shift.”
Niel Nickolaisen, Cloud 101: the Right Strategy for CIOs
“Given the increasing number and quality of cloud offerings,
we CIOs had better be the ones driving this cultural shift -- otherwise, we
are on the path to obsolescence”
Niel Nickolaisen, Cloud 101: the Right Strategy for CIOs
“If your I&O team members aren’t building a true cloud because they can’t
see the benefit in doing so or are threatened by it, show them a new
career path that makes cloud a no-brainer.”
James Staten/Lauren E. Nelson, Forrester Research, Rise of the New Cloud Admin

34. 4 Critical Requirements for a Cloud Culture
33
CIO as
Cloud Champion
Benchmark Against
Public Cloud
Do the Same Things,
But Differently
Embrace DevOps
and Self-Service

35. STEP 5: CHOOSE YOUR CLOUD
ADOPTION PATTERN

36. Three Cloud Adoption Patterns
35
Targeted
Grass
roots
Cloud
First
Cloud is default
choice whenever
feasible
Specific apps or
types of apps go
to cloud
Entice developers
to use cloud for
their apps

37. Where to Start: Segment Your App Portfolio
• Web architecture
• Elastic design
• Monolithic
• Legacy
• Traditional vendors
Cloud-Ready
• Greenfield
• Designed for cloud
Elastic Web
Traditional

38. • Business impact
• Should we put this app on the cloud?
• What benefits will we get?
• Technical requirements
• Can we put this app on the cloud?
• How much will migration or build out cost?
• Choose the best ROI
• High business impact
• Appropriate technical requirements
Evaluating Applications for the Cloud

39. App 1 App 2 App 3 App 4 App 5
Business Impact
Fast time to market     
Experimental     
Demand fluctuation     
Transitory/Time limited     
Many instances     
Many changes     
DevOps/CI     
New geographies     
New capabilities     
OpEX is desirable     
Business Impact: Framework Sample

40. App 1 App 2 App 3 App 4 App 5
Governance Factors
Data Residency     
Regulatory (PCI, HIPAA)     
Security Requirements     
Technical Requirements
Load Balancer: Session Affinity     
Application: Licensing     
Cache: Persistent     
Database: Working set size     
Security: Egress filtering     
…
Technical Fit: Framework Sample

41. Assess Apps for Cloud Readiness
40
REFACTOR
DON’T MIGRATE HOLD OFF
QUICK WINS
Technical Fit
BusinessImpact
App 1
App 7
App 3
App 12
App 4
App 6
App 2
App 5
App 8
App 11
App 10
App 9

42. Attract Developers with a Self-Service Portal
41

43. STRATEGY DESIGN DEPLOY OPERATE OPTIMIZE
How RightScale Can Help
42
CloudSight
Implementation
Support
Managed Services
Expert Advisor
Training

44. 43
Next Steps and Q&A
Sign up for a 30 minute Cloud Strategy consultation:
www.rightscale.com/contact
Get the RightScale 2014 State of the Cloud Report:
www.rightscale.com/2014-cloud-report

45. THANK YOU.