Operations Transformation –

Expanding the Value of Cloud Computing

Ed Hoppitt, VMware

Phil Richards, British Telecom Plc

OPT4689

#OPT4689

2

Presenters

Ed Hoppitt - VMware

Business Solution Architect

Email: ehoppitt@vmware.com

Blog: www.gatheringclouds.co.uk

Twitter - @edhoppitt

Phil Richards – BT Global Services

Customer CTO

Email: phil.2.richards@bt.com

Twitter - @philmrichards

3

Agenda

Cloud Ops Introduction

Overview of the Challenges of Cloud Operations

Customer Example – BT Global Services

BT’s end-customer experience as an IT outsourcer

VMware Customer Examples of today and tomorrow

Business value of making the changes

Moving your business forward

4

This Is Not a Technology Discussion

5

Operations Transformation in the Cloud Era

IT Ops in cloud era – is different than IT Operations in Client/Server era

6

Organizations Now Expect IT to Change at Pace of Business…

New Economics of IT = GROWTH…

… IT Must Become Value Creators

New opportunities, new market, new business models

Increase/Retain customers, market share, opening new markets Enabling

CEOs

Must maintain cost pressure and help drive additional revenue CIOs

Drive revenue growth and differentiation

Increase competitiveness Uniqueness

Lower the cost of failure, reduce the price of success Agile Infrastructure

7

A Cloud Ops Example – Provisioning Automation

Q What Percentage of your environments are provisioned in the

following ways ?

26%

19% 18% 18%

11% 9%

Total

Manual Custom

Manual Routing

Partly Automated

Mostly Automated

One Click

Don't Know

Provisioning Automation Environment

19% 19%

27%

15%

10%

4% 6%

Total

Mainframe

x86 Physical Server

Virtualized x86 server

Private Cloud

Public Cloud

SaaS

Don't Know

16%

54%

28%

Total

Highly Dynamic

ModeratelyDynamic

Mostly Static

Workload Stability

Source - VMware 2013 CloudOps Transformation Benchmark

8

About British Telecommunications (BT) Plc

• Global Networking and IT Company headquartered in London

• Annual Turnover of $25 billion, Market cap of $24 billion

• Global customer base of 8,500 customers in 170 countries

• 2008 – BT Launches Automated Private Cloud

• 2011 – BT Launches ‘BT Cloud’ Amazon type cloud

• 2012 – BT Deploys VMware vCloud Suite for Enterprise IT

• > 30,000 servers under management

London 2012 Official Communications Partner

• 55,000 page views per second

• 6Gb/second sustained on games-network

• 4,000 routers, 80,000 voice and data outlets

• 500,000 WiFi Hotspots

9

What Is Driving Our Customers to Make this Change ?

51%

56%

42%

36%

45%

42%

39%

40%

35%

28%

37%

30%

41%

43%

34%

37%

39%

37%

36%

35%

"Cloud native" applications

Automation

Horizontal scaling

Hybrid environments

Vertical resource scaling

Service orientation

On-demand provisioning

Self service

Policy driven

Service broker

Substantial Impact Some Impact

Source - VMware 2013 CloudOps Transformation Benchmark

10

Our Customers’ Challenge with the status quo

Fear

• Innovate today whilst keeping yesterday’s lights on

• Operating model not keeping pace with customer demands

• Unable to keep pace with competitors

Uncertainty

• How do we transform

• Where do we start – ‘we wouldn’t want to start from here’

• How do we justify/quantify the business value of options

Doubt

• How does this all fit in to our world

• Is this just all hype – is there really a risk of doing nothing (safe !)

• Who should we turn to for leadership and guidance

11

Deploying SDDC Internally – The MI Programme

Launch of services like BT Sport ($2 billion

investment in sports media coverage)

Driving a new way of thinking, and a new level

of agility

Current solutions were process-bound

Silos risked being barriers to speed

Too focussed around infrastructure

vCloud Suite deployed onto vBlock

Transformation of operational processes

Organisation transformation where design and

operations functions merge (TSO)

12

The Challenges with the Past

Development cycle times were too long and complex

Traditional markets placed less stress on IT vs today

Traditional IT models aren’t designed with agile in mind

Too silo focused, built around the infrastructure not tenants

Lack of clear end to end ownership

Desire to standardise everything

13

BT’s Customers are Feeling this Challenge

Platform managing Air Cargo Logistics through UK airports

What:

• Ageing infrastructure, applications and support model

• End of life risk for service support and infrastructure

• Disproportionate FTE requirement vs market value of service

• Silo environment not leveraging economies of scale

• Need to provide an operational model that meets the customers needs

How:

• VMware Advisory Services lead engagement including PSO to drive both

Cloud Ops and Platform Architecture change

14

BT’s Customers are Feeling this Challenge

Public Sector Organisation

What:

• Years of managing and collecting infrastructure (keeping lights on)

• A true museum of IT decisions past

• Data centre estate has grown organically

• Flow of information and data is restricted and slow

• Wants to move to private and public cloud…..but how?

• Security standards high internally – authentication of data

How

• Creating a strategy around the Software-Defined Datacentre. Building an ROI

model around that transformation that allows the value of technical and

operations management transformation to be quantified and then realised.

15

VMware Advisory Services Customer Example

Great investment in VMware

One IT Organisation – Done ?

Reality still silos for teams

Tactical tooling, no dashboard

Automation means scripts

All staff ITIL focused

Self Serve = Anarchy ?

Want benefits of Cloud

Continued single platform model

Continued integration work

Cross functional teams

CIO dashboard capability

vCloud Suite vCAC Automation

Focus on Cloud Ops Functions

Self Serve = Control

Achieving the benefits of cloud

EMEA Insurance Company

TODAY

EMEA Insurance Company

TOMORROW

16

VMware Advisory Services Customer Example

• 20% virtualized

• Now building Cloud Strategy

• Significant compliance issue

• 90% of changes non-standard

• Service Catalogue of ‘everything’

• Manual Processes everywhere

• High failure rate for deployment

• Infosec rules hampering agility

• 80% virtualized

• Now building Cloud Strategy

• Automated Compliance

• Move to a templated standard

change model

• Consolidated Service Catalogue

• Automation of key processes

• Increased ‘Right First Time’

• Infosec supported policy changes

Global Financial Services

TODAY

Global Financial Services

TOMORROW

17

Why Tackle This – the Numbers Speak for Themselves !

1.2

1.5

2.2

3.1

1.00

1.50

2.00

2.50

3.00

3.50

4.00

5 or Less 6 to 10 11 to 15 16 or more

Overa

ll R

OI

(Avg

1.6

2)

Number transformation Areas (Avg 6.2)

Source - VMware 2013 CloudOps Transformation Benchmark

18

History Is Littered with Those Who Ignored a Trend….

Thanks - Simon Wardley

19

Key Takeaways

There is a huge space here for focus

• Multiple use cases, multiple transformation points

Use case matters

• Required transformation highly variable, dependent on context

IT Ops Transformation

• Necessary – cloud technology/tool value unlocked by Ops Transformation

• Valuable – more transformation highly correlated with greater ROI

• Heuristic - views change after transformation. We can learn from success.

Transformation drives value in multiple areas – agility, cost, quality

But “keeping the lights on is still job #1 in cloud era

No single prescription – like with server consolidation

via virtualization

20

Questions?

21

Other VMware Activities Related to This Session

HOL:

HOL-SDC-1301

Applied Cloud Operations

Group Discussions:

OPT1004-GD

IT Financial Management for the Cloud with Khalid Hakim

OPT4689

THANK YOU

Operations Transformation –

Expanding the Value of Cloud Computing

Ed Hoppitt, VMware

Phil Richards, British Telecom Plc

OPT4689

#OPT4689