the role of cloud computing in your data center strategy

11© 2011 Excipio Consulting, LLC. All Rights Reserved. This document is proprietary and confidential and may not be duplicated,

redistributed, or displayed to any other party without the expressed written permission of Excipio.

Data Center Decisions“Cloud Computing”

Jeff GilmerSenior Partner612.978.4493

[email protected]



Cloud Computing IntroductionAgenda

1) Cloud Computing Todayo Trends

2) What is Cloud Computing

3) Public versus Private Cloud

4) Can we move our entire Data Center to the Cloud?

5) What can we move to the Cloud?

6) Where do we need to be prior to migrating?

7) When is our current situation better than the Cloud?



Cloud Computing TrendsTrend 1: Industry Acceptance

“ According to a recent report from Gartner Group, public cloud services spending is expected to grow four times faster than overall IT spending, reaching nearly $177 billion by 2015.”

“The global market for “cloud computing” ….for services delivered over the Internet….. is going to increase from about $41 billion in 2011 to $241 billion in 2020, according to new estimates from research firm Forrester.”

“IDC said the most significant driver of storage consumption over the past three years has been the emergence of public cloud-based application and infrastructure providers. (iTunes, Netflix, YouTube, Facebook)”….



Cloud Computing TrendsTrend 2: New Technologies

Business and Enterprise data center services are always changing with the adoption of new technologies. The technologies with the highest levels of adoption in today’s corporate data centers are:

1) Virtual Processing (72.9%)2) Web Applications (70.4%)3) Automation (54.8%)4) Cluster Computing (50.0%)5) Cloud Computing (14.9%)

Surprisingly, there is a significant rejection of Cloud Computing at this point (only 14.9% of all data centers have adopted), yet this technology has been considered by an additional 46.3%, but never implemented.

These are very interesting figures as Cloud Computing gets all the press and hype but the reality is the adoption rate among corporate companies still lags more traditional and proven technologies.



Survey Question

Have you looked at any potential cloud solutions for your Organization?

1) Yes2) No3) In Process



Data Center Services Maturity Model

Collocation

Basic Services Advanced Services

Managed Outsource Cloud

As the Data Center Services mature, the ability to provide services on an “As Needed” basis to the end user client maximizes efficiencies and is typically more cost effective.



Data Center Services

Solutions are deployed

as a type of service.

“Services are Sourced”

Cultural Aspects are commonly one of the more difficult objections



What is Cloud Computing?

Solutions are deployed “On Demand” with “Pay as you go” type of service via the InternetNOTE: There are no standard industry common components to “Cloud Computing”

“Services are Sourced via the Internet”



What is a Public Cloud?

A service provider makes resources, such as applications and storage, available to the general public over the Internet. Public cloud services may be free or offered on a pay-per-usage model.

Primary Benefits:

• Easy and efficient set-up because hardware, application and bandwidth costs are covered by the provider.

• Scalability to meet needs.

• No wasted resources because you pay for what you use.



Open Public Cloud:

A highly-scalable, cost-effective solution with an easy-to-use Client interface which provides capacity needs on demand.The Clients use the service providers virtual infrastructure and platforms as their cloud computing solutions.

Custom (Dedicated) Public Cloud:

Customers can use provider previously developed cloud services for other customers and then leverage this for their cloud environment. However, the Cloud components are dedicated to the Client and provide a higher level of security.

Public Cloud Options



What is a Private Cloud?

“A private cloud is specifically for the organization it serves.”

ABC Company

A private cloud, which is a proprietary network for the Client and/or data center which provides cloud computing technologies.

• On Demand Capabilities• Virtualization• Shared Resources• Dedicated Cloud Solution• Allows for specific requirements• Must still invest in capital• Management of infrastructure• Not an optimized use of assets



Can we move our entire Data Center to the Cloud?

Chances of Success: Yes

• Technically• Automated Product Updates• Maintaining Current

Technology• Flexibility

Not Likely:• Security• Data Handling • Regulatory• Latency

Sometimes: (Case by Case)• Cost Reduction• Interoperability

• Internal to the organization• External organizations and client base

It is really secure?



What are the Key Business Criteria?

Why do we like Cloud services?

• End User Transparency• Flexibility and Mobility• Accessibility to Documents• Integration both Internally and Externally• On Demand Services ability to add and subtract users quickly • Cost Effective, ease of use and maturity• Disaster Recovery



What are the Key Assessment Components?

Some key metrics include the “User Profile”, Data Center, Network, Electronic Mail and potentially Telecom.

NOTE: This example is based upon a Messaging Cloud Assessment

Items removed due to Client Confidentiality



What are the Key Assessment Components?

“Additional Key components are the server environment, data repository, storage and support/service desk metrics.”




What can we move to the Cloud?

Options

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Option 1 - On Premise MS ProductOption 2A - Office 365 with Web OfficeOption 2B - Office 365 with Office ProOption 3 - Google Apps

Supportability Features Functions Security

Services which typically fit the cloud environment are:

• Standardized• Commoditized• Mature



Where do we need to be prior to migrating to the Cloud?

A complete understanding of the current Components, Applications and Costs to deliver the specific Business Service.

“The final costs need to be in a common metric for comparison purposes and in business terms.”




When is our current situation better than the Cloud?

Internet Access• Must have connectivity

Applications• Latency is an issue• Virtualization requirements

Data Handling • Compliancy• Security• Regulatory



Sample Client Results

“Cloud computing has been producing Client savings.”

Description Current State On Premise Microsoft Solution

Office 365 &Web Office

Office 365 & Office Pro

General End User Applications Baseline Option 1 Option 2A Option 2BAverage Annual Savings -$21,244 $164,274 $125,299Annual Cost Per User (2000 users) $463 $474 $381 $401Monthly Cost Per User (2000 users) $38.60 $39.49 $31.76 $33.38Percentage Savings 2% -18% -14%

Description Current State On Premise Microsoft Solution

Office 365 &Web Office

Office 365 & Office Pro Google Apps

General End User Applications Baseline Option 1 Option 2A Option 2B Option 3Average Annual Savings $164,222 $349,740 $310,764 $662,763Annual Cost Per User (2000 users) $684 $602 $509 $528 $352Monthly Cost Per User (2000 users) $56.98 $50.14 $42.41 $44.03 $29.36

Percentage Savings -12% -26% -23% -48%



Thank You

Questions & Answers



Excipio Consulting Organization

Who We Are – OverviewExcipio Consulting has experts with many years of IT experience. They perform a wide variety of IT/IS assessments for organizations. This includes, Desktop, Network and Service Desk Management, Data Center operations and facilities, Application evaluation and integration, Shared Services Catalogs and Cost Models along with client RFP creation and vendor analysis.

Specific to Data Centers, Excipio has completed over 400 Data Center assessments in the last 30 months, for both public and private organizations ranging in size from 350 to over 100,000 employees.

This includes organizations such as the States of Minnesota, Washington, Michigan and Pennsylvania, private companies of US Bank, Carlson Companies, MD Anderson, Baxter Labs, Lowes and others.

Excipio helps clients focus on assessing growth, capacity, consolidation, risk and financial benefits related to operating your own data center or location of your equipment with an external partner. Key evaluation topics focus on the most effective and efficient ways to understand and determine your future Data Center strategic “Road Map”.

the role of cloud computing in your data center strategy

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