IT Strategy, Cloud Benefit Realization

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Is just moving IT from CapEX to OpEx a huge benefit? Does IT as a cloud commodity services changes IT Role and Responsibility? How do you get a real overall lower TCO?

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<ul><li> 1. 1. Cloud Organizational Functions PlanningRole and responsibilities chart, gap analysis, orchestration model in the new world.2. Cloud Chart of AccountHow do you monitors economics, include the new costs and areas generated by the cloud. i.e. shouldnetworking bandwidth charges be included in the evaluation or not?3. Service TCO Modelling ToolsTo help customer do what-if scenarios not only from a cost and risk point of view but also form technologies and policiesevolution point of view. Preparation of a sustainable chargeback.4. Charge Back of the ValueThe fair allocation of the work of embedding of the cloud services in the internal business process and rules according to business model,certifications and rules. (i.e. internal legal compliance policies, lifecycle of document retirement and compliance to company endorsed ISO 9002,Sarbanes Oxly.Cloud Benefits RealizationFor more info contact: Giuseppe@ValueAmplify.com Is just moving from CapEX to OpEx a huge benefit? Does IT as a cloud commodity services changes IT Role and Responsibility? How do you get a real overall lower TCO?THE ROADMAP TO FIND SOME OF THE ANSWERS: </li> <li> 2. Why Do You Need a New IT Strategy and Organization?CUSTOMERS CHALLENGESLeveraging cloud computing will have a bigorganizational impact on the infrastructureand operations functional organization.IT organization will have to implement newfunctions, think in the context of the ITsupply chain in making decisions, as well asidentify and assess the impact on existingroles in terms of training, as a result ofimplementing this new environment.Reskilling or upskilling some of thecurrent IT roles is key to realize value.Service transition and serviceoperation areas needs to have animpact assessment and implementprocesses in support of the newenvironment.- How does it look like an organization that has role and responsibilitiesready to capitalize on Cloud?- How do we assess the gap?- What happens if the organization is not ready?- Now that more IT is expensed, how do you package and charge back?by Giuseppe Mascarella </li> <li> 3. 3Microsoft Confidential1. Cloud Organizational FunctionsFunction 1: Cloud Service ArchitectureAbility to weave together various infrastructure components and standards. ROI of onpremise vs cloud.Function 2: Cloud OrchestrationPolicies, rights and automation of workflows.Function 3: Cloud Service ManagementPackage the service, chargeback modeling, retire, monitor TCO.Function 4 : Cloud Infrastructure AdministrationEnd-to-end performance management, monitor and troubleshooting of network, IPmanagement. </li> <li> 4. Function 1 Readiness: Cloud Service ArchitectureThe idea of a cloud is to use standardized infrastructure components that can be sharedand scaled in response to changing business dynamics. This implies that the design musthave the ability to weave together various infrastructure components, such as storage,networks, servers etc., to a service or application. This function needs to be able toarchitect various layers in a cloud context and leverage virtualization, interfaces andprotocols. This is part of the Strategy and Planning, therefore it also involves puttingtogether a business case for the architecture, evaluation and selection of vendors andproducts.Areas of coordination GAP Current Skill ReadinessCloud integrated Biz and ITarchitecture planning.1-5 Office ofCTO1-5Governance of cloud standards,virtualization, interfaces andprotocols for infrastructurecomponents use.Definition and review of longterm cloud partners andsuppliers in the cloudCloud biz case developmentIT Supply chain Governanceby Giuseppe Mascarella </li> <li> 5. Function 2 Readiness: Cloud OrchestrationThis function is responsible for defining and maintaining high-level workflows thatare needed for the automation of cloud services. The entire service life cycle from service provisioning, service activation, service assurance, service billing andservice retirement has to be automated. Thus, automation will span serverplatforms, network devices, portal applications, storage systems and other areas.-During service provisioning, there is a need to provision the right infrastructurecomponents, configurations, dependencies and monitoring software needed forthe service.-During service assurance, there is a need to manage the allocation andallocation of resources, to automate processes for patching and versionmanagement, fault-to-remediation processes, etc.Areas of coordination GAP Current Skill ReadinessCould integrated workflow designAutomation and self-servicesPolicies and rights of cloudservices administratorCoordination of patching and newfunctionalitiesFault-to-remediation processmanagement by Giuseppe Mascarella </li> <li> 6. Function 3 Readiness: Cloud Service ManagementEnsuring the development of service and service classes with the service consumer inmind, including the pricing, service levels, policies and rules associated with each ofthe cloud services. This role is also responsible for ensuring that the service consumerunderstands the ordering and request procedures, support requirements, serviceversions, escalations and exception handling, and service reporting, including servicemetrics. The cloud service manager works closely with the relationship managementfunction, and the sourcing and vendor relationship management function, to make theright choice of services for the service consumers. This role needs to show goodattention to the ROI and total cost of ownership of cloud services, to ensure betterdecision making in areas such as service retirement and renewal.Areas of coordination GAP Current Skill ReadinessPackage and definition ofservices for the consumerPricing and charge backProcessing for departments toorder servicesService retirement or renewalCloud TCO and scorecardsby Giuseppe Mascarella </li> <li> 7. Packaging of Cloud ServicesCommercialization is the process of introducing a new product to end-customers or distributors/re-sellers. The Commercialization process is typically a stage-wise process (each stage has its own key goalsand milestones) and it is vital to involve key stakeholders early, including potential or actual customersKey questions related to commercialization include: What? What is the product or service description, components, value, etc When? Timing of product introduction Where? where to launch a product/service, ie, single location, one or several regions; national orinternational?(Questions about when and where are strongly influenced by goals, capital requirements, andoperational capacities. ) Who? Initially, products are typically introduced to high affinity pilot customers identified throughresearch and test marketing. These high affinity groups should consist of innovators, early adopters,heavy users and/or opinion leaders. This will ensure adoption by other buyers in the market place duringthe product growth period. How? Create a commercialization plan including product descriptions, marketing plans, revenuemodels, sales collateralCommercialization to LOB of IT initiatives: like products sold to consumers or businesses by 3rd parties,IT products may require traditional commercialization (on release) and ongoing product management.This may include pricing/charge-back implementation, marketing communications, cost/revenueaccounting, etc.by Giuseppe Mascarella </li> <li> 8. Function 4 Readiness: Cloud Infrastructure AdministrationResponsible for daily operational support for end-to-end service (i.e. theuser-to-user traversing time of an email), monitoring managing InternetProtocol (IP) address allocation/deallocation; monitoring managing routersports, assigning and deassigning server/mailbox quotas; conducting systemhealth checks; configuring, provisioning, and troubleshooting various storageservices; and overseeing automation workflow maintenance, checks andreporting, disaster recovery planning, etc.Areas of coordination GAP Current Skill ReadinessCoordination of end-to-endperformancesMonitoring IP and NetworkManaging and forecasting needsfor quotasAutomation of maintenanceworkloadCloud integrated disaster recoveryplanningby Giuseppe Mascarella </li> <li> 9. Sample Questions for the CHECK-UP1. [Function 1,2] For xx (email, lynch) do you have a process to review implications andreadiness of externally proposed FSC (Forwards Scheduled Changes)?2. [Function 4] Does the process include an escalation procedure for validation fromnetworking, security, identity, application stakeholders?3. [Function 2] Do you have a process to share It configuration required for MS totroubleshoot problems?4. [Function 2] What authorizations does MS needs to obtain to run a diagnostic to verifyservice depending.5. Who decided and coordinate with vendor Internal change freezes (i.e. financialprocessing, global deployments, etc.)6. In case of internal emergency do you have a plan for stabilizing and securing the MSonline service?7. Public and internal DNS records for Microsoft Online Services (i.e. for Communicator,email, SharePoint, etc.)8. IP address or server name changes of your organizations internal DNS servers orDomain Controllers9. Collocated Domain Controllers in the Microsoft data centers (i.e. patching, upgrading,etc.)10. Upgrade of your organizations AD or Schema11. Firewall Rules for connecting to Microsoft Online Servicesby Giuseppe Mascarella </li> <li> 10. 2. Cloud Chart of Accountby Giuseppe Mascarella </li> <li> 11. 3. Service TCO Modelling Tools </li> <li> 12. Modellingby Giuseppe Mascarella </li> <li> 13. 1. Cloud Organizational Functions PlanningRole and responsibilities chart, gap analysis, orchestration model in the new world.2. Cloud Chart of AccountHow do you monitors economics, include the new costs and areas generated by the cloud. i.e. shouldnetworking bandwidth charges be included in the evaluation or not?3. Cloud TCO Modeling ToolsTo help customer do what-if scenarios not only from a cost and risk point of view but also form technologies and policiesevolution point of view. Preparation of a sustainable chargeback.4. Charge Back of the ValueThe fair allocation of the work of embedding of the cloud services in the internal business process and rules according to businessmodel, certifications and rules. (i.e. internal legal compliance policies, lifecycle of document retirement and compliance to companyendorsed ISO 9002, Sarbanes Oxly.Cloud Benefits RealizationFor more info contact: Giuseppe@ValueAmplify.com Is moving from CapEX to OpEx a huge benefit? Does IT as a cloud services lower barriers to enter for you or your competition? How do you get a real overall a lower TCO? </li> <li> 14. How to Frame the Cloud Chargeback Needs Source: Gartner, 12 December 2006/ID Number: G00144853by Giuseppe Mascarella </li> <li> 15. Direct Charge vs. Shared Services Costs Direct: Direct charges are those that can be solely attributed to a specific IT service orbusiness unit with no allocation formula employed.These types of charges are often associated with final services such as SaaSwhile in the past this method was used for charge back of hardware andsoftware acquired to support specific projects, dedicated devices (such asthose in single application servers) or outsourced services charged directly toa business unit. The notion is that the costs in these cases are equal to therecovery charge, because the costs have been isolated and are not sharedamong business units Shared: Shared service costs are those that are allocated in a proportional manner(formula) to multiple business units, such that the total costs are "shared" byall users of the service. Many IT organizations are looking for a simple andinexpensive way to fairly allocate shared costs. To accomplish this objective, asolid understanding of how costs vary in relation to use is necessary.by Giuseppe Mascarella </li> <li> 16. Fixed vs. Variable Cost Components Fixed: remain fairly constant (vary less than 10%) despitesignificant change in workloads E.g. costs associated with capacity-specd resources (e.g. storage) or contractual obligations (e.g.software licenses) For the majority of IT shared services, a high percentage of the costs are typically fixed by thisdefinition. Variable: vary directly with short-term changes in workload E.g. Additional WAN or bandwith associated with Lync usage, printing costs, which vary according touse (paper, toner, etc), and application development, which varies widely. There is a general misconception by the IT organization and business unitsthat most IT service costs are more variable than reality dictates. Thismisconception can lead to applying the wrong cost recovery model to aspecific service.by Giuseppe Mascarella </li> <li> 17. Factoring the Use Component An analysis of fixed and variable costs for each service should yield a ratio that can beapplied to the cos...</li></ul>