Red Hat Summit 2018 - 3 pitfalls everyone should avoid with hybrid multicloud

1. 3 PITFALLS EVERYONE SHOULD AVOID WITH HYBRID MULTICLOUD Roel Hodzelmans Senior Solution Architect, Benelux Eric D. Schabell Global Technology Evangelist Director May 2018
2. Cost not obvious motivator Technology in cloud Data… Data...
3. What’s Multicloud Multicloud is literally using multiple clouds from multiple providers for multiple tasks. Typically, multicloud refers to the use of several different public clouds with the goal of achieving greater flexibility, lowering costs, avoiding vendor lock-in, or using specific regional cloud providers. One of the challenges of multicloud is achieving consistent policies, compliance, and management. Multicloud is more of a strategy.
4. MULTICLOUD AN IT ENVIRONMENT WITH MULTIPLE CLOUD ENVIRONMENTS, MANAGED SEPARATELY, WITH APPLICATIONS ISOLATED BY ENVIRONMENT PUBLIC CLOUD CONTAINER PLATFORM PRIVATE CLOUD PUBLIC CLOUD PUBLIC CLOUD
5. Hybrid cloud is a combination of one or more public and private clouds with at least a degree of workload portability, integration, orchestration, and unified management. The key here is that there is an element of interoperability, migration potential, and a connection between tasks running in public clouds and on-premise infrastructure, even if it’s not always “seamless” or otherwise fully implemented. (Otherwise, it’s just a bunch of clouds)
6. HYBRID CLOUD PUBLIC CLOUD CONTAINER PLATFORM PRIVATE CLOUD PUBLIC CLOUD AT LEAST ONE PUBLIC AND PRIVATE CLOUD (OFF & ON PREMISES) THAT HAVE A DEGREE OF INTEROPERABILITY, APPLICATION OR DATA PORTABILITY OR COMMON MANAGEMENT
7. HYBRID & MULTICLOUD IN ACTION AWSOPENSTACK AZURE OPENSHIFT CLOUDFORMS VMs ON PREMISES GLUSTER FUSE 3SCALE A customer implemented a hybrid development platform based on Red Hat OpenShift Container Platform deployed across a multicloud environment with Microsoft Azure and AWS plus on-premises virtualization and private cloud with Gluster Storage, CloudForms, Fuse and 3Scale helping make it all work together.
8. 1. Cost: not always the obvious motivator
9. Is cost a factor in your company’s journey to the Cloud? http://bit.ly/rh3pitfalls Poll question #1 Audience participation requested
10. Migrating to cloud? “Labor costs can make up 50% of public cloud migration, is it worth it?” “As Forrester notes, "customer-facing apps for systems of engagement...typically employ lots of new code rather than migrating existing code to cloud platforms." https://www.techrepublic.com/article/labor-costs-can-make-up-50-of-public-cloud-migration-is-it-worth-it/
11. “More than 80% of in-house data centers have way more server capacity than is necessary.” “Companies don't do routine checks to see how much capacity they are using… (electricity, cooling, licensing).” 80% overcapacity In house rolls over to cloud providers http://www.businessinsider.com/companies-waste-62-billion-on-the-cloud-by-paying-for-storage-they-dont-need-according-to-a-report-2017-11
12. “Extra cost rolls over when companies move onto the cloud” “Companies paying an average of 36% more for cloud services than they actually need to.” http://www.businessinsider.com/companies-waste-62-billion-on-the-cloud- by-paying-for-storage-they-dont-need-according-to-a-report-2017-11 36% overpaying In house rolls over to cloud providers
13. 2. Technology: Everything in the cloud?
14. Will your organization move everything to the cloud? http://bit.ly/rh3pitfalls Poll question #2 Audience participation requested
15. “Not all business applications should migrate to the cloud, and enterprises must determine which apps are best suited to a cloud environment.” “When businesses migrate their most essential applications to the cloud, they often fail to check how those apps will perform in their new environment.” https://www.informationweek.com/cloud/10-cloud-migration-mistakes-to-avoid Maybe it’s not viable?
16. De Persgroep (Based on audience question from ‘Power to Innovate talk) “Why don’t you go 100% to cloud for hosting your news group assets?” The Amazon quoted price for hosting was OK, but the bandwidth quotes were off the charts. Shortly thereafter, during the Paris attacks (Charlie Hebdo) the French people crashed all local news sites. The Walloon (FR Belgium) sites hosted by De Persgroep received an extra 1.2 million unique visitors…. (810K BE, 450K NL). What would that have meant to your bandwidth costs in the cloud?
17. 17
18. Does your organization have a baseline of your application landscape? http://bit.ly/rh3pitfalls Poll question #3 Audience participation requested
19. 1. Determine your goals of migrating to the cloud 2. Assess your current situation 3. Select the right cloud migration partner 4. Create your business case for the cloud 5. Select the type of cloud environment needed – public, private, hybrid or hybrid-multi? 6. Determine the specific cloud components necessary 7. Choose the right cloud provider 8. Plan the migration approach 9. Execute the migration 10. Monitor the production environment Don’t forget the baseline!
20. Do you need a container to be successful? http://bit.ly/rh3pitfalls Poll question #4 Audience participation requested
21. 21 CONFIDENTIAL - FOR INTERNAL USE ONLY https://www.slideshare.net/dbryant_uk/devoxx-2017-continuous-delivery-with-containers-the-good-the-bad-and-the-ugly
22. “Using containers does not get rid of the need for good architectural & organisational practices” https://www.slideshare.net/dbryant_uk/devoxx-2017-continuous-delivery-with-containers-the-good-the-bad-and-the-ugly Truth might be more complex...
23. 23 CONFIDENTIAL - FOR INTERNAL USE ONLY Cloud DIY anyone????
24. 3. Data… Data… Data….
25. Does your company know their bandwidth and storage needs? http://bit.ly/rh3pitfalls Poll question #5 Audience participation requested
26. $62 billion savings Data to the cloud “Based on Gartner's projection that data storage will be a $173 billion business in 2018.” “Companies globally could save $62 billion in IT costs just by optimizing their workloads.” “Only 25% of companies would save money if they transferred their server data directly onto the cloud.”
27. Bonus question: Does your company have a exit-strategy for the cloud? http://bit.ly/rh3pitfalls Poll question #6 Audience participation requested
28. Survey results…. http://bit.ly/rh3pitfalls
29. plus.google.com/+RedHat linkedin.com/company/red-hat youtube.com/user/RedHatVideos facebook.com/redhatinc twitter.com/RedHat THANK YOU
30. CONFIDENTIAL - FOR INTERNAL USE ONLY PHYSICAL INFRASTRUCTURE RED HAT HYBRID CLOUD PORTFOLIO Red Hat Cloud Access
31. RED HAT HYBRID CLOUD PORTFOLIO AMAZON WEB SERVICES GOOGLE CLOUD PLATFORM MICROSOFT AZURE PHYSICAL INFRASTRUCTURE

Notas del editor

The daily hype is all around you. From cloud, hybrid cloud, to hybrid multicloud, you’re told this is the way to ensure a digital future for your business. These choices you’ve got to make don’t preclude the daily work of enhancing your customer's experience and agile delivery of those applications. Let us take you on a journey, looking closely at what hybrid multicloud means for your business, the decisions being made about delivering applications, and dealing with legacy applications, likely the most important resources to your business. Join us for an hour of power, where real customer experiences are used to highlight the three top lessons learned as they transitioned into hybrid multicloud environments.

Note: The speakers have spent the last three years working with customers making their digital journeys a reality and speak first hand about the top lessons learned deploying new and existing applications.
3 pitfalls you should understand when dealing with customers and prospects looking for your strategic insights into hybrid multicloud.

Cost is not always the obvious motivator
Move everything in to the cloud?
Data, data, data

The rest of this session will cover these three pitfalls after first setting the stage with definitions and positioning for multicloud, hybrid cloud, and hybrid multicloud. This ensures everyone has the same understanding of our playing field.
That leads into the next level, which is the view of multicloud from Red Hat’s point of view (https://www.redhat.com/en/topics/cloud-computing/what-is-multicloud).
The Red Hat official slide for Multicloud.
That leads into the next level, which is the view of hybrid cloud from Red Hat’s point of view (https://www.redhat.com/en/topics/cloud-computing/what-is-hybrid-cloud).
The Red Hat official slide for Hybrid Cloud.
The Red Hat official slide for Hybrid & Multicloud.
The first pitfall that everyone should know about is that cost is not the obvious motivator for organizations to move towards the hybrid or multicloud strategies.
Asking the audience to give their accounts, customers and personal experiences as feedback. http://bit.ly/sko3pitfalls
Labor is always the ‘invisible costs’ that nobody talks about…. It’s not just the cost of hosting in some cloud, but the work to migrate and the work to understand the cloud usage. Multicloud makes these ‘costs’ grow even faster.

A utilities company wants full business operations in the Cloud by 2020… issues so far; moving all is not cost and effort effective. Looked at what is customer essential, these go into the cloud, everything else is going toward COTS. By limiting apps to build for cloud-native (ones that add business value), rest bought, means costs to migrate to cloud are manageable.
Many customers will tell you (if honest) that they’re unable to get a handle on the capacity usage / costs on-prem let alone in their cloud or multicloud usage. Pat Healey (Deutsche Bank, Summit 2017) talks about over ordering HW for data center on-prem, finding out later that usage numbers were in the single digits…. Ouch.
If you have full control over your on-prem costs and customers are unable to stop overpaying, this spirals out of control as they roll into the cloud, hybrid cloud and multicloud usage. This is general numbers, but when you zoom into storage, api usage, bandwidth usage, etc it just adds up to more and more overpaying.

An insurance company we know went nice and agnostic into the cloud, after 3 months started to leverage more and more cloud native functionality. They found out between $1 to $10 million dollars they got a lot of attention from the public cloud provider, after that all attention, flexibility and support drops off dramatically. They figure you’re locked in….
The second pitfall is putting putting everything into the cloud.
Remember the the utilities company targeting 2020 into the cloud, everything…. That’s the customer planning….. But apps not used much, or data ownership / compliance issues, or solutions not certified to run in the cloud…. So not everything is viable (financially or physically) to run in the cloud.

An online travel company we know has 40k servers running on-prem (buying data centers), not viable cost model for them in the cloud. Research and high performance computing often needs special hardware, not just cloud resource that you can buy.
Example of company in NL that decided to not go 100% in to the cloud, actually hosting their own sites in data centers due to the story here which would mean bankruptcy based on the pricing models.

http://powertoinnovate.nl/presentaties-powertoinnovate/customer-case-de-persgroep.pdf
From the presentation, the numbers that showcase extra load running on BE sites, with cloud pricing it would have meant bankruptcy. Note, nothing is running in containers…. wow.

http://powertoinnovate.nl/presentaties-powertoinnovate/customer-case-de-persgroep.pdf
A thorough assessment of your current situation is imperative, as it will lay the foundation for many important decisions you’ll need to make. A deep understanding of what applications you need to migrate to the cloud, your current IT environment, and the present level of resources and costs will help you make informed choices.

A Banking customer asked RH for piloting business case public cloud, OCP and OSP. Looking at cost running container vs running VM’s. Without a baseline you can’t scope anything…. Justice Dept running containers on OCP so also have not baseline when asked. All decisions based on this! BTW: That Banking customer now decided that they go full cloud, just leaving the lights on for the traditional DC. Their own team say its a bad idea, but they are going anyway.

What are critical apps? What needs clustering? What can run in cloud (certified) and what not?

https://www.thorntech.com/2016/07/10-steps-cloud-computing-migration/#execute
Don’t be phased by the competitor in this slide (competitors sometimes have interesting things to say too), but this is the truth out there today. So many are trying to cram applications in to containers, which for them means that they are cloud ready. Not quite.

https://speakerdeck.com/caseywest/containercon-north-america-cloud-anti-patterns
Expectations vs reality is that one expects architectural decisions to solve organizational problems, one will be severely disappointed in the results. If you take containers and a pile of burning garbage to put in them…. The results is a full blown container ship fire with DevOps trying to save the business!
Great example of DIY solutions where your customers think that anything they want themselves by putting their apps into containers in the cloud. They underestimate the complexity that platforms like OpenShift can help simplify.

Red Hat has +300-400 working in the communities and on products…. For 5 years now….. You think you can do better?
The third pitfall is what to do with data and how it’s used in the cloud.
Refer to https://en.wikipedia.org/wiki/CAP_theorem (Consistency, Availability, Partitioning). Putting data in the cloud is a rare occurrence:

Single cloud with storage and apps
Apps in cloud and storage on-prem
Apps in cloud and data cached in cloud, storage on-prem (Schiphol)

Schiphol tackling multi-cloud vendors (dedicated RH-AWS & Azure) with failover of cloud and trying to ensure caches are synced across these failover clouds.

Your data is your proprietary advantage in your market, so what do you do if this happens: You’re a retailer, one of the top 10 worldwide, you are planning your cloud strategy and all of a sudden Amazon buys Whole Foods moving into your market. Overnight Amazon is now grown to 50% of your retail size. Do you trust their cloud with your retail data? What do you do if you already have your data in their cloud….. Exit-strategy?
http://www.businessinsider.com/companies-waste-62-billion-on-the-cloud-by-paying-for-storage-they-dont-need-according-to-a-report-2017-11
Initial portfolio slide, see next slide for professional version.
Portfolio slide, pro version of previous.

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