http://www.hcltech.com/it-infrastructure-management/overview-More on Infrastructure Management http://www.hcltech.com/ - More on HCL Technologies There is no doubt that all IT decision makers will have to confront Cloud sooner or later. - Optimizing your own Infrastructure: Cloud is a natural next step in the optimization of the infrastructure. After consolidation, virtualization and automation of IT systems, cloud becomes a natural next step to take in the process by increasing scalability, offering self-provisioning, and increased transparency of the IT resource for each individual department. - Provide necessary services: Employees today expect to be able to work independently of time and place, and on different devices, cloud computing allows just that. - Select, manage, integrate and secure cloud services: Users expect to have the same opportunities at work as they have at home. If the company's own systems aren't flexible enough or don't have the right "look and feel" employees often tend to use other solutions. This is for several reasons not desirable, why it is important that the company selects a number of approved solutions which can be integrated safely without locking the feature that the employees wish for.

1. WHITE P APER
Cloud, Offshoring and S AP on Demand
Sponsored by: HCL, EMC
Annsofie Petersson
januari 2012
Where are we today?
There is no doubt that all IT decision makers will have to confront Cloud sooner or
later.
- Optimizing your own Infrastructure: Cloud is a natural next step in the
optimization of the infrastructure. After consolidation, virtualization and automation of
IT systems, cloud becomes a natural next step to take in the process by increasing
scalability, offering self-provisioning, and increased transparency of the IT resource
for each individual department.
- Provide necessary services: Employees today expect to be able to work
independently of time and place, and on different devices, cloud computing allows
just that.
- Select, manage, integrate and secure cloud services: Users expect to have the
same opportunities at work as they have at home. If the company's own systems
aren't flexible enough or don't have the right "look and feel" employees often tend to
P.46.8.751.0415
use other solutions. This is for several reasons not desirable, why it is important that
the company selects a number of approved solutions which can be integrated safely
without locking the feature that the employees wish for.
IDC research shows that Nordic companies see improved productivity/efficiency as
well as improved service quality as their most important organizational priorities.
Box 1096 Kistagangen 21 S-164 25 Kista, Sweden
When it comes to IT priorities, quality of services and implementation of new systems
top the list. And even though Cloud Computing in general, still isn't a primary
investment area, Infrastructure Optimization is; in other words, private cloud. The
research also shows that 50% of the Nordic market doesn't have enough knowledge
about cloud and what it represents. We also see that this comes down to the fact that
IT vendors tend to use their own definitions and sometimes call an old solution cloud,
which doesn't really classify as such. This of course, causes confusion. Looking at
challenges seen with cloud, we learn that security is an inhibitor of relevance.
Questions arise such as has there been unauthorized intervention with my data?
What if I lose my data, am I guaranteed to get it back and in what kind of format?
Public cloud spending is forecasted to increase with a CAGR of around 27% in the
next five years, and we do believe that private cloud spending will increase even
more. Research also shows that even though more companies are using public cloud
solutions today, we see an even larger increase in private cloud solutions looking
forward. Especially the IT department is looking at private cloud solutions, possible
reasons to this could be that public clouds are seen as a threat. We also see that
there is somewhat of a war going on between the IT organization and line of
business, where it is essential that the CIO remains in control over which cloud

2. systems that are bought into the various business lines. The lack of doing so could
result in a situation where many different solutions exist which makes a future
integration of systems difficult to manage. Furthermore, IDC believes that cloud
computing will change the IT organization by giving the CIO more of a strategic role in
the company with less focus on operation and development and at the same time,
more of a purchasing role where things like legal aspects, contract management and
security and risk will be important factors.
Trends within Offshore
IDC believes offshoring is a natural progression in outsourcing and fundamental to
sustaining the financial benefits it provides. Further, Nordic companies are currently
experiencing challenges resourcing not only key technology roles but also more
common positions such as operations and systems management. Global sourcing
provides Nordic businesses better access to skilled resources and choices
concerning the vendors and delivery models to meet their requirements.
Virtually all Nordic companies is impacted by offshoring, whether it is the raw
materials needed to manufacture products or it is the additional distribution channels
to expand sales. IDC's research has found that leading companies approach
offshoring as a strategic component of their overall business plan. Among other
things, offshoring strategies include ongoing evaluation of new markets and their
importance to the company. Leading companies also learn from their offshore
experience, both positive and negative, and invest in broadening their markets,
reshaping the buyer. These changes need to be accounted for in the business case,
transition plan, and ongoing management of the relationship.
As shown in figure 1 below, what we have seen since 2008 is an increased
acceptance for offshoring in the Nordics. The economic downturn forced many
companies to look at ways to cut down on costs and as a consequence, the amount
of respondents using offshoring went from 10% in 2008 to a whopping 27% in 2009
and has since then continued to increase. This indicates that customers who has tried
offshoring, has had a satisfactory experience.
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3. FIGURE 1
Offshore Acceptance
Source: IDC, 2012
The case of Danfoss
Danfoss is a global company based in Denmark with 78 years experience within
energy efficient technologies and with over 23 000 employees. Danfoss has been
using SAP since 1987, but with every division having their own SAP landscape, and
in some cases, even some business units having their own landscape, there was a
need for integration of the systems.
The economic downturn in 2009 hit the company hard with a negative growth for the
first time ever and halted investments as a result. This forced the management to
implement a so called "Core & Clear" strategy to decide on what the core business
was and what to outsource. The IT department recognized that its model of fixed
costs was not suitable for a more flexible operating model hence a reorganization of
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4. how IT Hardware and Services are sourced was kicked off. The strategy led to a
partnership with HCL where the IT vendor gradually takes over Danfoss' current
internal data center in Nordborg by leveraging the IaaS services of HCL from its cloud
data center in Stockholm. Indeed, Danfoss will rent space as required from HCL. The
agreement means that Danfoss has an on demand IT infrastructure, which is payable
only for the servers and storage being used. This way, Danfoss avoids investment in
expensive hardware and can instead concentrate on its core business. And so a
process started of deciding what in Danfoss' IT infrastructure was ready for the cloud
and what wasn't. For example, the mail system will move into the cloud by 2015 as
the current SaaS offerings like Microsoft and Google are too rigid to customize to the
needs of Danfoss – however and the entire SAP on Demand is being bought from
HCL. The first wave of the SAP implementation has now been completed and the
rd
second wave is currently being built by HCL. The 3 wave will be built in June and
then the move to the data center in Stockholm. Danfoss has already started to see
benefits associated with the SAP on demand implementation.
Do's and don'ts for the CIO
Cloud computing as a part of the IT service delivery is here to stay and to simply
ignore it is not an option.
CIO Advice
Organizations need to consider several important factors when moving to a public or
a private cloud:
 Make sure to have a clear strategy when it comes to cloud computing and step
forward as the authority in the area. The failure of doing so could result in various
business units going out shopping for their own cloud solution, making it difficult
for the IT department to integrate in the end.
 With the growth of cloud computing, the role of the CIO will become more of a
strategic business role with an increasing need of competences such as
negotiators, lawyers, contract managers, security specialists and risk managers,
and at the same time less skills within competences such as operations and
application development.
 Consider the costs of today and tomorrow. Deciding which cloud solution to
manage or deploy your environment is a large decision. It is vital to think about
not just the up-front hardware costs but the ongoing costs of powering, cooling,
and managing this infrastructure. Try to think of the value of offloading some of
the more mundane everyday tasks to the cloud (public or private) and freeing up
that manpower to focus on adding value to the business
 Think beyond virtualization and convergence. Cloud's true potential is unleashed
only when the infrastructure is self-serviced and automatically provisioned. Many
IT organizations are at least partially virtualized, but it's these last few steps of
automation and self-service portals that will save on soft costs like management
time, downtime risk, and increase flexibility.
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5.  Choose cloud offerings based on workload. Different cloud offerings fit best with
specific workloads. Increasingly, hardware and middleware are being tailored to
fit specific workloads, such as database, email, or collaboration. Thinking in
these terms instead of general computing capacity may help ensure a best-fit
scenario for an IT organization.
HCL and EMC's point of view
HCL sees that the real value for enterprises is to find out how cloud service options
can be used to impact business problems for customers beyond the hype of the
public cloud. They see cloud adoption in four different waves: Wave 1 is infrastructure
applications; Wave 2 is Test & Dev; Wave 3 horizontal applications like SAP and
Wave 4 include vertical/custom applications. HCL works with its customers to identify
– what aspects of a cloud solution can be made to impact enterprise IT including what
all workloads would fit into a public cloud type offering – while disaggregating the
services across different clouds – HCL takes end to end responsibility for managing
the user experience for customers thru a Web based interface called the MyCloud
which essentially helps in provisioning, de provisioning, service management,
metering and billing across a heterogeneous services environment.
HCL's strategy focuses on being not only a system or service integrator but also
participate as a cloud service provider which provides an enterprise Class Cloud
offering where Data Security, Regulation aspects are more deterministic and
auditable – at the same time HCL is also clear that Amazon, Rackspace and the like
are complimentary to its offerings and finds a way to integrate these in its solutions for
customer’s where it would make sense in a customer environment.
HCL's value proposition for cloud is about connecting its competencies in applications
and infrastructure to its skills and expertise in engineering services. HCL stresses that
it can integrate multiple viewpoints within its clients' organizations — a valuable role
for an external service provider.
HCL strives to collaborate with customers, offering a flexible approach at a strategic
level in contrast with vendors that typically want an all or nothing locked in solution.
The strategic flexibility should not be misunderstood to be complete flexibility wrt
solutions and offerings – where typically because of the shared nature of the services
the offering is best practice and certified architecture based.
For example HCL has chosen EMC as its strategic partner for the shared storage and
backup environment in Sweden - EMC's automation makes the back-up and storage
of data more efficient and the continuous data protection (CDP), records all
transactions in order to be able to go back and manage data in the best possible way.
It also decrease the recovery time and efficiently move data between datacenters to
maximize the data usage and storage. The solution is customized to run and operate
large complex SAP environments in a multi-tenant environment and decrease the
overall cost of SAP storage while still providing the advanced features needed for
SAP environments.
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