The document discusses the state of IT in enterprises prior to cloud adoption, challenges faced, and drivers for cloud adoption. It defines cloud computing and outlines principles and risks. The document provides a 10 step process for moving to the cloud, including determining the appropriate cloud model, assessing applications, selecting vendors, and defining a cloud strategy. Finally, it emphasizes communicating the benefits and risks of cloud to stakeholders.

1. Cloud musings
Chaganti ‘RK’ Radhakrishna

2. Topics
 State of IT
 In an Enterprise setting
 Challenges prior to Cloud
 Cloud defined
 Principles, Risks
 Cloud adoption
 Drivers, barriers
 How to move to Cloud
 Assessment, Best practices
Cloud:Musings Page #2

3. State of IT*
 Exists primarily to support the business and it’s operations
 Is de-centralized, centralized or hybrid
 Supports sites where business has a presence
 Has budget as a % of revenue. Often benchmarked w/like
organizations in the same/different industries
 1.xy% in manufacturing sector; x & y interchange depending on
bad or good quarter
 Asked to do more with less. Show me the value
 Constantly asked to justify it’s existence
 Includes many functions. VPs responsible for one or more
functions
 Applications (ERP, Web, SC, HR), Infrastructure (Directories,
Application Servers), Domain specific and general workforce
productivity, Operations(Data Centers), Architecture, PMO(Program,
Budget, Vendor management), eSecurity, Support (HelpDesk),
Network, Telephony, Development, SWQA, etc.
 Supports hundreds of Mission/Business Critical applications
*In a typical F500 Enterprise setting
Cloud:Musings Page #3

4. State of IT
 Strategic sourcing of one or more functions/sub-functions
 Outsource, in-source, off-shore/on-shore
 Uses one or more methodologies, frameworks to
understand and improve how it provides services to
customers
 SDLC, Agile, SixSigma, Lean, ITIL/ITSM/BSM, Balanced
Scorecard, Portfolio/Program prioritization, K-T
 Launches Big5/10 initiatives every year and undergoes a
refresh cycle in 2-3 areas
(ERP/Infrastructure/Operations/Network)
 Representative of the Standish Group’s chaos report on
project execution
 Successful: 32%, Challenged:44%, Failed:24%
 Mix of functional, projectized, weak matrix environments
 Never ending backlog of “High” priority requests from
various constituents
Cloud:Musings Page #4

5. State of IT
 Has little time to innovate
 New paradigm shifts force drastic action: Web 1.0/2.0,
Enterprise 2.0, Social Networks
 Undergoes re-set/self-transformation once every 5 years
 Unless lucky, handicapped w/dysfunctional teams
 Doesn’t guarantee an SLA for it’s services, but expects it’s
vendors to provide one
 Using ITIL/ITSM frameworks establishing a price point for
it’s services and how it compares against it’s competitors
 Under increasing pressure to get it’s arms around a
heterogeneous environment and adherence to compliance
and controls
 Business requirement of 5 9’s availability and millisecond
response time of MC/BC Apps
 Haphazard cloud adoption
 A SaaS here, a SaaS there, some virtualization/workload
migration
 Lack of a well thought out policy
Cloud:Musings Page #5

6. Impact
Low
Med
High
Time to Market
Time
Security
Fixed costs
Servers
Complexity
Capacity Utilization
Dedicated
Time to Market
√
Security
Server
Fixed costs
Complexity
Capacity Utilization
Consolidation
Cloud:Musings
Time to Market
√
Security
IT Data Center evolution
Fixed costs
Complexity
Capacity Utilization
Time to Market
Security
Fixed costs
Cloud
Complexity
Virtualization In-House
Capacity Utilization
or
Way to go
Debate on which
Time to Market
Security
Cloud
Public
Fixed costs Var costs
Complexity
Capacity Utilization
Page #6

7. Pre-cursor to Cloud: Challenges
 Experimentation w/Web and need to have a Web front-
end for business processes, saw the adoption of numerous,
heterogeneous “stacks” and point solutions
 Boutique shops specializing in running business processes
on web (“Service providers”) that circumvented IT
departments started to grow
 Hosting - various flavors (ASP, MSP, xSP)
 Enabled capacity growth outside of the enterprise
environment
 Hosting, coupled with outsourcing of services, enabled the
development, deployment and orchestration of business
processes in a totally new way
 New business models emerged
Cloud:Musings Page #7

8. Pre-cursor to Cloud: Challenges
 Growth of heterogeneous environments required
 Army of IT staff to sustain it
 Refresh cycle for the “stack”
 22% annual maintenance fees
 80% of the IT budgets for “lights-on”
 Focus on compliance and security
 Managing complexity
 Multi-year effort to execute any initiative
 Yet,
 Users were unhappy with the service
 Led to the growth of siloed environments
 Weren’t able to spend time on “Innovation”
 Structured and un-structured data began to grow
 Compliance and Control challenges
Cloud:Musings Page #8

9. Pre-cursor to Cloud: Silver lining
 Success of ASP model attributed to the following,
increased the comfort level of enterprises for an on-
demand model that enabled capacity to grow
 "per-use" basis or on a monthly/annual fee
 Key software systems are kept up to date, available, and
managed for performance by experts
 Reduction of internal IT costs to a predictable monthly fee
 Redeploying IT staff and tools to focus on strategic
technology projects that impact the enterprise's bottom line
 Increasing availability and access of applications over a
network connection
 Mail, calendar, collaboration software
 Users were increasingly comfortable accessing Software
over the web, as a “service” and thus “SaaS” was born
Cloud:Musings Page #9

10. Pre-cursor to Cloud: Tangential developments
 Affordable bandwidth
 Network overcapacity during .com boom
 E-commerce
 Web 2.0, newer standards
 Participative, Collaborative, 2-way web
 Ajax, HTTP, HTML enhancements
 Browser UI almost similar to desktop UI
 Virtual collaboration tools
 Willingness to “open-up” yourself online and engage in
online discussions
 Social web, Social Media, Social networking
 Virtualization
 Ubiquitous access of information from anywhere, anyplace,
any device
 Services over the web, Open source movement
Cloud:Musings Page #10

11. Cloud defined
 Moving from delivering capabilities over the
network to delivering capabilities and services
over the Internet
 the dynamic provisioning of IT capabilities
(hardware, software, or services) from third
parties over a network
 Cloud computing is computing model, not a
technology
 The cloud model differs from traditional
outsourcers in that customers don't hand over
their own IT resources to be managed
Cloud:Musings Page #11

12. Principles and Risks
 Principles
 Self-service
 Commodity pricing
 Scalability
 Multi-tenancy
 Risks
 Data mobility
 Privacy
 Service levels
 Interoperability
Cloud:Musings Page #12

13. Cloud adoption: Business drivers
 Improve Business agility; increase TTM
 Capacity w/out capital
 Move from CapEx to OpEx
 Relief on annual maintenance expenses
 CPU cycle optimization
 No idle cycles, maximum possible utilization
 Reduction in infrastructure complexity
 IT Process automation
 We have automated everyone, except ourselves!
 Freeing capacity to advance innovation
 Standardization of systems
 Deliver innovation quickly
 Access to latest functionality (software/hardware)
 Increase in productivity
 Users with the ability to self-provision resources have
improved productivity
 Environment friendly
 Reduce carbon foot-print
Cloud:Musings Page #13

14. Barriers moving to Public Cloud
 Business generates IP
 Security of data and lost control of systems
 Most of the applications might NOT be architected for a
private cloud e.g. some vendors do not support running
their SW on virtual machines
 Availability risk, data security risk, regulatory compliance
and corporate governance
 You have little control over how much audit information is
collected
 while you may maintain ownership of your own data, you do
not likely own all of the access log data
 Moving data and computing cycles away from the user
means increasing the bandwidth between users and data
 May not conform to your standards (security/data format)
 Lack of metrics and few controls inherent in cloud-
computing relationships
 Takes a lot of effort to move apps into cloud and it may
not work at all
Cloud:Musings Page #14

15. Moving to Cloud: Pre-requisites
 Have a baseline/measurement system before you move
anything
 What's your current server utilization level? Is it in single otr
double digits?
 Figure out what workloads you have. Does it make sense
for some to move into Public and some kept in Private?
 Do you have or generate a lot of IP? Then public cloud
might not be an option
 Make decisions not from a security perspective, but from a
risk perspective
 Understand the management complexity, data security,
control in a mixed mode environment
 Do applications need modifications or a complete re-
architecting for use in the cloud
 Can an application running in a fixed-size environment be
able to use the cloud?
 Do you have ITIL/ITSM deployed? If not consider this as a
mechanism to provision self-services, charge-back
 Develop a strategy across all cloud layers.
Reconcile/rationalization past and current efforts
Cloud:Musings Page #15

16. Which Cloud is “Right” for Your Applications?
Cloud:Musings Page #16

17. Moving to Cloud: 10 step process
 Determine the appropriate cloud model to move to
 Understand your current state, drivers, barriers and know the
pre-requisites
 Private, Public or Hybrid?
 Figure out the interplay between SaaS / PaaS (if it exists) /
IaaS
 Assess the potential for moving applications to the cloud
 Commodity, Customized, Complex
 Mission / Business / Department critical
 Test / Development environment
 Understand workloads
 Characteristics and patterns of applications determine
appropriateness for cloud computing
 Select applications
 Determining application candidates that make sense for your
business
 Assess vendors, partners and align w/them
 Do a high level K-T
Cloud:Musings Page #17

18. Moving to Cloud: 10 step process
 Define Cloud strategy. Enlist stakeholders, BU as
advocates. Over communicate
 Launch a portfolio. Get executive sponsorship.
Figure out the costs, ROI and funding model
 Review your policies, architecture, strategies,
processes, methodologies, support structure and
re-draw/re-adjust
 Execute and show measurable results
Cloud:Musings Page #18

19. Summary
 Cloud Computing is an attractive model for IT
 Understand it’s evolutionary and revolutionary aspects
 It promises many benefits, yet as with any new initiative,
understand well how this can be leveraged
 Depending on the path chosen, ROI can be achieved in as
little 1-year in some and many years in others
 Over communicate with stakeholders on potential benefits,
risks, advantages / disadvantages of this model
 Let them know this is not a cure for all ills
 Enlist a strong leader who practices the 5-principles of
leadership and overcomes the 5-dysfunctions of a team to
run the Cloud portfolio
 Make the CIO and IT staff hero's in the eyes of all users by
timely execution of this vision
Cloud:Musings Page #19