greenpages aug 2013 customer event gravitant keynote itaas mandate

Copyright © 2013 Gravitant

Delivering on the Mandate of IT-as-a-Service Mohammed Farooq Founder, Chairman, and CEO

8/8/13 2

Texas Ousts IBM, Takes New IT Outsourcing Tack Second-generation IT services deals almost always go better. But after an especially troubled relationship with IBM, Texas is counting on new vendors and an unproven outsourcing model to deliver the second time around. CIO — Over the last decade, public sector IT outsourcing deals have been marked by very public failures—from Indiana suing its vendor over $1.6 billion deal to Virginia firing its CIO for a bad outsourcing relationship to San Diego County's failure to make it work with two providers back-to-back before settling in to a better third contract.

Texas's first IT outsourcing deal was no different, devolving into a very public fight between IBM and the state's Department of Information Resources (DIR) over their $863 million data center consolidation contract.

Last week, Texas DIR announced that it had not only awarded the work to new vendors, but that it was taking a very different tack the second time around. In a deal worth more than $1 billion dollars, Xerox and its IT services division (formerly ACS) will take on the five towers of service delivery while CapGemini will step in as the master service integrator. It's a bold move destined to make a big impact—for better or worse. "It could be a landmark deal or it could be a disaster," says Esteban Herrera, COO of outsourcing analyst firm HfS Research. "So much is unknown."

Source: http://www.cio.com/article/702618/Texas_Ousts_IBM_Takes_New_IT_Outsourcing_Tack


Leveraging cloud to deliver more agile IT

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Commodity Clouds

Enterprise Clouds

Security Services

Managed Backup Services

CIO/ CFO

CTO/ IT Architects

Sourcing/ Procurement

IT Ops/ Sys Admins

IT Suppliers Cloud Broker

IT Organizations

Business Users

•  Server deployment times went from 6 months to days •  Improved agility to onboard to cloud by more than 5X •  Saved 30-50% in infrastructure costs when compared with internal data center costs


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# of

Web

Use

rs

(in

thou

sand

s)

A be!er voting experience for Texans

•  Deployed a new web-based voting application in 2 weeks

•  Provided access to resources to dynamically support public demand with minimum impact to service Normally 450K daily hits

Last day of registration (4.7M hits)

Last day of voting (5M hits)

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User Activity for voteTexas.gov


Delivering ITaaS is a critical priority

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According to an IDG survey, 76 percent of the 650 global respondents indicated that ITaaS was critical or very important for enterprise success.

Reporting on line of business IT usage costing

Enhanced ability to manage compliance and regulatory requirements

Improved customer service

68%

63%

62%

Biggest perceived benefits of IT as a Service:

Source: Cloud Innovation Study: IT as a Service, IDG Research Services, June 2012


Intuit is using ITaaS and cloud to create competitive advantage

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Intuit NASDAQ

•  Good fit to deliver SaaS to its small business customers: PAYGO, scalable, and mobile access

•  Strategic partnership with Microsoft Azure to enable 750K developers

•  Three out of four Intuit users now use one or more of its cloud-based services

5-year return: NASDAQ

57% INTUIT 138%


What is IT-as-a-Service?

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Order Complete

✔

An operational approach where IT is run as an internal service provider business.

A service-oriented approach to IT consumption, organization and delivery where all details are abstracted from the business.

A business-centric approach that focused on outcomes, operational efficiency, competitiveness, and rapid response.


“No Plan Survives Contact with the Enemy” That’s why you need the flexibility ITaaS provides you

CIOs Managed Services

Existing Data Center

Private

IaaS

PaaS

SaaS

Developers & Business Units

ITaaS Overview

Broad Ecosystem of Suppliers

Governance & Business Mgmt

Expedia-like Consumption

•  Easily define, build, & order IT solutions

•  Compare and source from a global approved vendor list

•  Route demand instantly to the best provider option with Pay as You Go

•  Provide flexibility while still maintaining control

•  Rapidly respond to unanticipated biz needs

Key Tenets of ITaaS

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A model for IT-as-a-Service

BU BU BU

Request Mgmt

Req Analysis

IT Operations

Solution

Dev PMO

Infrastructure Test Deploy

•  Long lead times for new solutions (months-years) •  Significant leakage due to lack of control •  Large upfront capital investments

Vendor mgmt Order/Bill Integrate

Infra Apps

Infra Apps

BU BU BU

Solution Store

Order/Bill

Service Monitoring & Testing

Fulfillment Governance

Catalog Factory

Vendor mgmt

Chargeback IaaS

SaaS PaaS SaaS PaaS

IaaS Legacy

Operations

•  80% reduction in time-to-market •  100% improvement in productivity •  50% higher asset utilization

Current IT IT-as-a-Service


An Industry in Transition

Infrastructure

IT Governance + IT Ops + Systems

Management

Applications Development

& Management

Enterprise Packaged

Apps

ITO BPO

Channel Partners

•  Public •  Private

•  Hybrid Cloud Mgmt •  Business of Cloud

Mgmt •  Cloud Governance

•  DevOps •  PaaS •  Cloud App

Middleware

•  Salesforce.com •  Workday •  Office 365 •  Google Docs

•  Cloud Aggregation & Solution as a Service

•  Biz Process as a Service

Hardware Outsourced Data Center

Biz Process Outsourcing

PaaS CMaaS CMaaS SaaS IaaS

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Enabling ITaaS: Solution Factory and Store Requirements

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DevOps Code Factory

Solution Ops Solution Factory

Business Ops Solution Store

•  Scalable applications •  Continuous updates •  Multiple XaaS

components

•  Find best providers •  Build complete

solution: ITSM, networks, security, monitoring, Integration, etc.

•  Publish in catalog with pricing

•  Metering/billing •  Procurement •  Best value & QoS •  Provider management

Business CIO


A practical technology path to ITaaS Key capabilities & technologies

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Code Factory (DevOps/PaaS)

IT Biz App

Solution Factory (SolutionOps) Solution Store

(BusinessOps)

•  Smart Design •  Aggregation engine •  Cloud interop fabric

•  Pricing/metering/billing engines

•  Analytics •  Policy/Compliance

SI CSP MSP

Brokerage & Governance

Copyright © 2013 Gravitant 13

Lower Cost Reduce infrastructure cost by 20-40% and improve staff productivity

Better Choice Match the best providers and services with the right business need

More Control Gain visibility, ensure governance, and reduce risk

Greater Speed Faster path to revenue for the business

Business benefits of ITaaS


Even a modest use of public clouds provides significant benefit

IT Infrastructure Annual Cost Indexed US$, Year 1 Baseline1 = 100 Transition costs are spread over 2 years; retained costs excluded.

• Nearly 30% improvement in cost offered by public cloud-enabled solution • Public cloud only used for ~25% of

workloads • Modest use of public cloud to drive

higher utilization appears to have substantial benefit • Efficiencies do not reflect likely price

declines in public cloud services 50

75

100

125

150

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Costs with Public Cloud component

Projected costs with Traditional Model

A leading power generation company found that public cloud use for a portion of its workloads would drive a 30% reduction in overall infrastructure costs.

Source: Everest Group 14


Using public cloud has hidden cost that will leak away the savings

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$0

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$30

$45

$60

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$90

voteTexas.gov: Projected annual spend (in thousands of dollars)

$0

$15

$30

$45

$60

$75

$90

voteTexas.gov: Actual annual spend (in thousands of dollars)

Leakage reduces

cost savings

57% promised savings

8% actual cost savings 41% actual cost savings

Copyright © 2013 Gravitant 16

Provider Match Description Average Price Location Security SLA Provisioning Time

On demand commodity cloud provider. Enterprise support available at additional cost

Compute: $17,234 Storage: $625 Network: $802 SW: NA Operations: $16,137

US East (VA) US West (OR) US West (N. CA) EU (Ireland) AP (Singapore) AP (Tokyo)

Virtual Perimeter Firewall and Routing between VLANs

99.95% annual uptime only for access to VM in particular region. Service credit up to 10%.

VM provisioning: 10-15 min 1st VDC: Hours Subsequent VDC: Hours 85%

Higher-level security & SLA: optimized for eCommerce & Web Hosting

Compute: $23,623 Storage: $7,489 Network: $500 SW: NA Operations: $12,957

US East (VA) US West (CA) Asia EMEA

Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/IPS

100% infrastructure 99.9% end-to-end availability of customer assets. Service credit up to 30%

VM provisioning: 2-4 hours 1st VDC: 2 days Subsequent VDC: 4 hours 100%

Reserved capacity-based dedicated resources; fixed cost, simpler management, supports bursting

Compute: $45,000 Storage: $5,991 Network: $500 SW: $0 Operations: $11,897

Culpepper, CA Miami, FL Sao Paulo, Brazil Amsterdam, Netherlands

Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/IPS

99.9% end-to-end availability of customer assets. Service credit up to 50%.

VM provisioning: 10-15 min 1st VDC: 10 days Subsequent VDC: 10 days 135%

Private, community cloud with dedicated capacity; fixed costs; physically secure

Compute: $15,000 Storage: $400 Network: $500 SW: $0 Operations: $18,000

Austin, TX Enterprise Grade Virtual Perimeter Firewall Limited outside access

99.9% end-to-end availability of customer assets. Service credit up to 50%.

VM provisioning: 15-30 min 1st VDC: 2-3 day Subsequent VDC: hours 115%

Pricing based on a production environment for a CRM.

30% variance between choosing any provider versus choosing the right one.

Terremark

135%

Monthly cost: $63,388

Arbitrary Selection Savvis 100%

Monthly cost: $44,569

Optimal Selection

Dynamically route IT demand to the right providers


A solution factory accelerates the application deployment lifecycle

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Design 2-3 months

Order 3-6 months

Deploy 4 weeks

Provision 6 weeks

Changes 1-3 weeks

Today’s Enterprise with Virtualization

Enterprise with today’s Hybrid Cloud Management

Design 2-3 months

Order 2 months

Hours to days

Hours to days

Changes 1-3 weeks

CMP can reduce VM deployment & provisioning to hours days

2 weeks Days to weeks

Hours to days

Hours to days

Hours to days

Gravitant-enabled Multi-Cloud Management

Weeks saved = more Revenue earned

An ideal broker compresses the entire lifecycle and automates the management of the cloud supply chain

Eight months

Six months

One month


Case study: A Bridge from Current IT to IT-as-a-Service

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Current IT

Solution Factory (SolutionOps)

Solution Store (BusinessOps) Aggregation

Dev

Test

Perf

Int

Provision

Deploy Order & Access

•  Multiple locations •  Multiple cloud

technologies •  Multiple business

units

Virtual DC


Three key initiatives for ITaaS

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Embracing Shadow IT

Managing Multiple Clouds

Reducing Infrastructure Spend

Provide speed and choice while reducing risk and providing

control and governance

Move beyond workload deployment automation to

complete IT/Biz management

Safely leverage public clouds while retaining the

expected cost savings

20

Thank you Mohammed Farooq 512.659.4339 [email protected] www.gravitant.com

greenpages aug 2013 customer event gravitant keynote itaas mandate

Technology

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customer assets

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solution store