win and fail factors for hybrid infrastructure in the ... · • cloud native hybrid cloud concept:...

Digital infrastructure platformWin and fail factors for hybrid infrastructure in the cloud native age

About the companies 21

About the author 23

#01 The digital economy is redefining IT use cases 4

#02 The bridge to the digital world –

is a hybrid cloud the savior? 9

#03 Digital infrastructure platforms:

win factors and fail factors 14

#04 Outlook and recommendations 17

Contents/

Contact & Copyright 24

Executive Summary 3

www.crisp-research.com

Digital infrastructure platform

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Executive Summary/• Welcome to the digital economy – Digital workplaces, platforms,

and products are seriously testing the boundaries of conventional IT

infrastructure and operations. Companies that want to digitize their

processes and business models are making new demands on IT performance,

flexibility, and functionality.

• Long road to heaven – The path from legacy IT to a digital infrastructure

platform looks long and complicated. Whereas many applications have the

continuity and architecture of conventional IT environments, innovative

digital workloads have quite diverse requirements, which the latest cloud

and microservices architectures cover efficiently.

• Hybrid is the new normal – In practice, legacy IT and digital infrastructure

have much to “learn” from each other. Legacy IT can be run on cloud native

standards, while the digital infrastructure platform can be tweaked to

achieve the stability levels of traditional IT architecture. That makes the

hybrid cloud the most important standard for IT operations – at least for

the time being.

• CIO, watch out! – In the public cloud, plug & play is regrettably still a

pipe dream. For decision-makers, an integrated digital infrastructure

platform means tackling a number of challenges both at the technology

and the business level. These include ensuring stability and mastering

the overarching management of public clouds (some of which have been

launched without fully developed tools), and, most importantly, expanding

companies’ existing skill sets and operations models for cloud and cloud

native.

• Future mode of operations – The main thing that companies transitioning

to a hybrid digital infrastructure platform need is a clear structure. The

transition can be frictionless if applications are assigned to the various

infrastructure variants, and if responsibilities and tasks are clearly allocated.

• Scenario roundup with the promise of success – When it comes to practical

deployment, decision-makers should think in scenarios. That is the best

way to record and plan the change requirements for IT architecture, and

to define the skill gaps and new operational concepts.



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The digital economy is redefining IT use cases

#01



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“Digital” is the buzzword that has already cast a spell over both the economy

and the political sphere. Companies are searching for their place between

quite specific application areas – such as the automation and digitization of

workplaces and production chains – and the big visions of the future, like

blockchains, general artificial intelligence, and quantum computing. They are

scrambling to keep pace with the innovation rates of the digital elite – making

acquisitions, launching major investment programs and, at times, simply relying

on the principle of hope.

The more that people talk about the digital transformation, digital processes,

business models, or platforms, the more relaxed the tense relationship between

business and IT becomes. The two are increasingly cooperating because IT now

has an opportunity to transform itself from a cost center into a value-adding

asset. Ultimately, it is business that defines the application requirements,

which in turn imply new demands on the IT infrastructure and platforms.

This interaction is important: on the one hand, to allocate budgets properly;

on the other, to dovetail the value creation logic of digital products with the

underlying business model.

There are numerous application areas for digital platforms and solutions. They

can help tap new markets, enhance existing products and services through

the addition of digital revenue and value streams, and revolutionize corporate

processes – or at least make them more efficient.

That’s why the right choice for many enterprises is to push forward with the

digital modernization and expansion of their products and processes. In this

environment, it is much easier for companies to estimate value and optimization

requirements; and they are in a position to continue leveraging the expertise

they have amassed over many years and to expand it with digital components.

The next step requires them to be more adventurous, developing entirely new

digital products and platforms that serve to diversify their core business even

further. The Internet of Things (IoT) – the interconnection of products, data,

and machines – is emblematic of this. In a recent study conducted by Crisp

Research, the decision-makers surveyed confirmed this chain of action and

said that, when it comes to the IoT, they would start by digitizing existing assets

before embarking on a journey into the unknown.

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// What strategy are you pursuing when implementing IoT-based products for your customers?

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The implementation of new digital solutions and platforms is frequently

subject to a number of constraints. In addition to many regulatory, logical, and

structural requirements – such as continuation of the original (analog) business

logic, compliance with the highest data privacy and security standards, and

the integration of the necessary external digital components – it is above all

IT infrastructure that is a headache.

Conventional IT architecture is designed for stability, reliability, and security.

It was developed as centralized infrastructure so that companies could ensure

the long-term availability of their traditional enterprise applications. Over the

years, numerous hardware and virtualization components were installed in this

infrastructure that are not only already outmoded, but also no longer meet

current requirements as regards flexibility, performance, and agility.

It is difficult to simply deactivate these or redevelop them from the ground up –

because business operations cannot just come to a standstill for an indefinite

period, dependence on the systems is too acute, and companies often have no

clear understanding of their integration and interaction.

The new generation of digital IT and platform operations calls for infrastructure

that is innovative, flexible, and based on the latest cloud architecture standards.

Microservices, agile DevOps concepts, and automation tools for real-time

monitoring and management are the key requirements when providing

enterprises and customers with digital platforms.



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#01

// Dynamic IT vs. Static IT

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learn. build. grow.


Dynamic ITDynamic IT environments are the preferredchoice for digital business models and novel applications to benefit e.g. from scalability, flexibility and global reach.

Static ITStatic IT environments host enterprise applications that underline specific constraints due to e.g. legal, compliance and data privacy issues or techincal limitations.

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OperationalReliability

HighlyComplex

TraditionalEnterprise

Rapid Delivery

Highly Innovative

Modern Services

novel

In numerous companies across the globe, the two worlds – dynamic IT and static

IT – have remained almost completely separated, with only essential interfaces

left between the two. But this approach is now outdated and is not considered

the right way forward in practice. Though certain legacy components are still

needed to operate the traditional monoliths, the latter too are increasingly

being designed for agile operations. That is why the design criteria of digital

infrastructure should, as far as possible, be transposed to the former static IT

infrastructure. For example, the latter should also satisfy the requirements as

regards flexibility, performance, and continuous maintenance (CI/CD pipelines).

Given the high access rates of some applications on traditional platforms –

like the ERP system, for instance – ease of administration, high-performance

infrastructures, and an enhanced user experience are crucial.

In practice, this extension means more work with implementation and migration,

and also harbors some risks in the transition phase. But it pays off in later

operations, because the bigger the gap between the digital infrastructure

platform and corporate IT, the more difficult it is to harmonize the two in

everyday operations. That starts with technology and maintenance, which

should be as uniform as possible. But users too have to get to grips with IT that

is based, from end to end, on the latest standards – ultimately, that’s only logical.

The digital infrastructure platform is thus microservices architecture that

is software-defined and code-controlled (infrastructure as code). It is highly

connected, either via several cloud platforms or on-premises, and is based on

the latest standards of digital and cloud native tools.

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As already stated, the applications that individual divisions develop and expand

in the course of the digitization strategy also determine the IT infrastructure

requirements. As a result, this infrastructure too can be developed in line

with the transformation process of the applications – from monolith to agile

architecture. Depending on the degree of abstraction, it is not necessary to

jump from one extreme to the other; the process can be managed at moderate

expense. Transformation partners and service providers can offer optimal

support throughout the gradual transition to a digital business platform.

Depending on what your current application landscape looks like, it is advisable

to obtain more – or less – support during each step.

// Steps along the path to a digital business platform

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#02The bridge to the digital world – is a hybrid cloud the savior?



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For a long time, coordination between applications and IT infrastructure was

awkward, complex, and not necessarily fast; but it was stable and, thanks to

the expertise of the in-house IT unit, also easy to manage. It is comparable

to an old diesel engine: it needs a lot of energy to start running but, once in

motion, it runs reliably for a long time.

But we need to find state-of-the-art solutions to replace our old diesel

engines – not just in the interests of the environment, but also for enhanced

efficiency and performance – solutions that suit today’s drivers (i.e. users)

and are more sophisticated, faster, and more efficient.

This is also true of applications, which change more and more over time.

From classical legacy IT and cloud-enabled software through to cloud native

stacks, their structure, management, and operating concepts have been

almost entirely redesigned. The latest cloud (native) applications have as their

underpinnings a modular, replaceable microservices stack that is increasingly

managed via containers.


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The role of the companies is twofold: first, they are operators of conventional

infrastructure that has to be gradually migrated to the cloud native world –

at least for a certain period until the changeover from legacy IT has been

accomplished; second, they are already users of the cloud-enabled and cloud

native applications needed to operate the new digital workloads.

Consequently, companies have numerous applications and workloads in place

that are at different stages in the transition to cloud native operations. As a

result, this architecture requires an answer to all questions and a basis for

every operating paradigm.

The promising option here is the hybrid cloud. The hybrid cloud enables us

to reconcile diverse infrastructure and operating concepts. The corporate

data center (or co-location data center) remains at the core of the IT strategy,

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with large parts of the company’s IT continuing to be operated from there.

Within the data center, however, the benchmarks change, with monolithic

on-premises architecture gradually being replaced by private clouds with a

high level of cloud native components.

The hybrid cloud architecture is flanked, and increasingly defined to a large

extent, by the available public cloud offerings. The key innovation leaders

in this area are Amazon Web Services, Microsoft Azure, and the Google

cloud platform. All three providers already offer a diverse range of available

(platform) services that are well suited to the agile operation of new digital

applications as well as existing modified legacy applications.

These key cloud services and infrastructures, in particular, should be directly

integrated into a hybrid cloud scenario – and with the lowest possible latency

– so that data can be shared directly with the applications located in the

company’s own data center.

MULTI-CLOUD: A multi-cloud environment comprises an indefinite number of the most diverse cloud providers

(IaaS, PaaS, SaaS) and deployment models (public, private, managed). The individual cloud environments do not

necessarily have to be completely integrated if integration does not add value; instead, they can be operated

independently of each other.

HYBRID CLOUD: A hybrid cloud combines a private cloud with the resources of public cloud. In this case, an enterprise operates its own cloud infrastructure and leverages the scalability and economies of scale of a public cloud provider so as to make use – either ad hoc or continuously – of additional resources such as computing power, storage capacity, and other services.

Beyond that, it may make sense to utilize other cloud offerings, like open-

stack-based clouds, which can neatly complement the services of the three

hyperscalers in certain niches or application areas, or to meet special

requirements. If it is not possible to connect directly to these cloud services,

what are known as “cross connections” can also be used to link different

infrastructure and manage it at low latencies, even where not connected

directly in the same network. Hybrid clouds thus have many facets, and can

be defined to suit each company’s specific needs.



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// Digital infrastructure – direct and cross connect with public clouds for a successful hybrid cloud architecture

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The hybrid cloud has a key role to play in corporate planning. Many companies

already rely on this bridge between legacy or corporate IT and the world of

digital cloud infrastructure.

This is a trend that is set to continue over the next few years – because the

pace of transformation to a genuine multi-cloud environment without legacy

overheads is undeniably slow. As a result, many decision-makers now seem

to have a clear preference for using the hybrid-cloud bridge and gradually

shifting to cloud native in their own data centers, too.

This makes good sense – not just from a technological standpoint – and

enables companies to overcome the biggest IT hurdles on the road to the

digital economy; it also justifies the existence of an in-house IT unit, provided

the latter continues to hone its skills and mindset accordingly. In this context,

companies and those in charge often also seek external support, calling on

the services of one or more partners.

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// What is your preferred cloud deployment model now and in the future (2020)?

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#03Digital infrastructure platforms: win and fail factors



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The key characteristic of a digital infrastructure platform is its hybrid nature.

It can form the foundation for all of a company’s workloads and, at the same

time, can be managed mainly using the standards and paradigms of the cloud

native world. It thus significantly reduces the share of legacy IT and can replace

outdated solutions.

Nevertheless, it is no less complex than legacy IT. The numerous microservices

and infrastructure platforms that have to interact without a hitch are sometimes

complex to manage, maintain, and extend.

Then there are external factors and dependencies on (service) providers

because the technology is no longer solely in the company’s hands. But, as this

also offers advantages, companies should be prepared to take this risk, should

orient themselves to the following win factors, and should try to avoid – or be

ready to overcome – the fail factors described later in this paper.

Win factor #1 – hybrid cloud platform:

As a digital infrastructure platform, a hybrid cloud

requires solid foundations. Even the infrastructure

must be designed in such a way that shared tools and

solutions can be operated locally in an optimal manner.

That is why it would not be enough to establish a hybrid

cloud at the management level alone. Even at the lowest

levels of the infrastructure stack, then, a successful

hybrid cloud is thus designed in accordance with the

latest expectations and technologies, and can operate

cloud native tools and digital applications everywhere.

Win factor #2 – cloud skills:

Cloud technologies determine the digital infrastructure

platform. Companies have a chance of mastering this

only if they themselves have a sound knowledge of

their tasks and obligations, how these can be deployed

optimally, and how exactly the cloud functions. Amassing

the required cloud skills – or better: setting up their

own cloud academy, in which trained experts share

their knowledge – thus becomes a win factor.

Win factor #3 – partners:

While in-house skills are crucial for a company, they

can also be enhanced and expanded by the knowledge

and know-how of service partners. These certified

partners of cloud providers have many years’ experience

in providing support for conventional IT and are the

“long arm” of digital infrastructure in all areas. In some

cases they have their own infrastructure and networks,

which can play a crucial role in the digital infrastructure

platform and hybrid cloud architecture.

Win factor #4 – technology scouting:

The digital infrastructure platform entails a journey to

a new, agile IT world. The latter is constantly changing

– and at breakneck speed. Every day, new tools and

products are being launched and old ones discontinued,

especially in the cloud native and open source segment,

but also with all leading providers. Keeping abreast of

these developments means constantly scouting the

main providers and consortia, and rapidly assessing

whether the new technologies can be quickly integrated

into your own stack.



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Fail factor #1 – public cloud:

A big opportunity offered by the digital infrastructure

platform is simultaneously one of its biggest threats. Using

the public cloud has already granted many companies

numerous advantages in terms of performance,

innovation, and digital business. But almost as frequently

– but not always as obviously – the public cloud has

caused huge damage to companies. A little knowledge is

a dangerous thing, especially when it comes to the public

cloud, where it can quickly lead companies to make errors

and cause lasting damage to their live systems. What

is more, the use of public cloud solutions and platform

services that are often immature and unstable when

brought to market can lead to chaos on the platforms and

quickly have financial consequences for the companies

concerned. For this reason, management of the public

cloud should be entrusted mainly to experts; small

doses and, sometimes even, a wait-and-see approach

are recommended to keep risks to a minimum.

Fail factor #2 – integration:

The dovetailing of different architectures within the

hybrid cloud landscape is an essential factor in the success

of the solutions: frictionless interaction between the

technologies must be ensured as well as general data

availability. However, integration can fail if, for example,

systems that are technologically too diverse are linked up

without prior adaptation and harmonization. A uniform

API strategy within one’s own solutions landscape is

thus especially important; otherwise the integration of

mission-critical systems could be at risk. When it comes

to digital platforms with a customer interface, this API

strategy will later become one of the key win factors.

Fail factor #3 – innovation overkill:

Both at the technological level and the business level,

an excessive urge to innovate can quickly have negative

consequences. At the technological level, companies

should absolutely avoid the trend to always go with

the latest technologies – to the exclusion of other

options. At the present time, cloud native and container

applications do not always make good sense. Companies

must in any case assess the expense involved and the

expected system stability. That includes the manner

in which the application is to be migrated (lift & shift,

re-build/re-factor, build new). At the business level,

companies should also take care not to assume digital

business beckons where in fact there isn’t any as yet.

In some cases, step-by-step innovation of a company’s

core business can be more successful than insisting per

se on a disruptive business model.

Fail factor #4 – security:

At the end of the day, it’s all about security. Again and

again, companies and decision-makers underscore the

necessity of compliance with regulatory provisions, and

with data privacy and data security regulations. But it is

often hard to reconcile this with their often ambitious

innovation goals. There are two possible approaches:

1. To rule out or temporarily block innovation until a

harmonious compromise can be found.

2. To put security and data privacy at the chronological

end of the process.

Whereas the first option seems relatively easy to

evaluate, the second option harbors the biggest fail

factor. Treating security, data protection, etc. as a mere

innovation “add-on” is likely to spell the end of many an

attempt at innovation. Companies are seldom able to

first innovate and develop business logic and products

and then to reduce their functionality by 30 percent

due to these constraints. Rather, priority should be

given to “security by design” and “privacy by design”

paradigms, according to which these key aspects are

included from the very outset, continuously and on

an equal footing with other requirements. In this way,

innovation and (alleged) constraints can be advanced

at the same pace without allowing some insuperable

separation of the two to arise.



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#04Outlook and recommendations



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The hybrid cloud – an integral design factor in digital infrastructure platforms –

is only now coming into its own. Companies will make a massive effort to

migrate their applications to an agile, digital environment and create the

basis for digital business.

A hybrid cloud functions as a bridge between legacy IT and new digital

workloads, and provides a basis that will increasingly blur the boundaries

between these ostensibly discrete worlds. In this regard, companies will

experience pronounced maturity phases that will differ markedly depending

on their legacy IT architecture.

The hybrid cloud is the platform of the future, and the one the majority of

companies will rely on going forward – each in its own highly individual way.

Depending on a company’s starting point, multiple scenarios are conceivable,

each of which has different implications for a company’s actions.

Scenario 1: The slow road from legacy IT to the hybrid cloud

Up to now, almost all companies have relied on conventional operating

concepts. The first step along the path toward digital infrastructure involves

transforming corporate IT. Digital business models are still a long way off:

• Cloud readiness assessment / enterprise cloud assessment: A specific

analysis of the existing application landscape forms the starting point.

It is necessary to clarify which applications are already capable of being

migrated to the cloud, what modifications are necessary, and what

interfaces and dependencies are involved.

• Consult with a transformation partner from the word go: Your company’s

skills and experience as regards digital infrastructure and the cloud is

presumably still rather limited. That’s why it’s worthwhile calling on an

experienced service provider right from the planning phase, one who

is very familiar with the technologies and has already been down the

transformation path several times – with success.

• Migration and application upgrading: The workloads running on the

digital infrastructure platform will be those that have been part of your

day-to-day business for many years. Migrating these can prolong the

life cycle, improve performance, and enhance user satisfaction. Simply

upgrading your applications and ensuring stable operations can have a

big positive impact.



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Scenario 2: The fast road to the hybrid cloud

Scenario 3: The well-engineered road to the hybrid cloud

Companies are already operating initial applications on their own infrastructure

or in the public cloud, and are able to manage microservices-based solutions on

their own. Nevertheless, they still have a large portfolio of legacy applications.

• Cloud architecture and API concept: The focus here is on dovetailing

and interconnecting infrastructure components and applications. It

makes sense to think about the best way of doing this and about where

quick wins are possible when implementing hybrid cloud architecture.

• Expand cloud skills and integrate service providers: Individual teams and

departments in your company may already have gained initial experience

with the cloud. This experience should be shared within the company and,

at the same time, supplemented with experience from outside of it. An

impartial view can be particularly helpful when integrating components

into a hybrid cloud.

• From upgrading to the cloud native world: There are bound to be

numerous applications across the company that still need to be migrated

to the new digital infrastructure platform. However, this can be carried

out in parallel with the build-up of the digital assets for process and

business model innovations that are to be rolled out in the agile sections

of the hybrid cloud.

Companies have been investing in application upgrading for some time

and can already operate many of their applications on the basis of the new

standards without major legacy overheads. This makes it easier to integrate

digital applications.

• Cloud native hybrid cloud concept: The hybrid cloud will form the

decisive operating basis for the company. However, all the infrastructure

in question is able to utilize the tool set and standards of the cloud native

environment. The concept has to ensure that microservices, containers,

the cloud, etc. can be set as standard.

• Divide up cloud operations: If the company has already gained some

experience with the hybrid cloud – either on its own or in partnership

with a service provider – it is worthwhile building on and diversifying that

partnership. Expert knowledge may be needed in particular for special

cloud architectures and workloads, and a focus on this is just as important

as on knowledge of the latest technology and cloud native trends.



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• Microservices and container landscapes: The design of the architecture

enables the next level to be reached quickly. In company-own test areas,

the latest cloud native trends and containers can be put through their

paces. Alongside that, a stable, high-performance infrastructure is in place

where both conventional and new digital applications can be integrated

and operated.

Scenario 4: The cloud native path – supplemented by the hybrid cloud

The advantage for companies is that they have to migrate only very few legacy

systems to the new operations environment. However, it is still worthwhile

retaining conventional operating models for some test scenarios and the

IT system basis, even though the metrics are clearly geared to agility and

digital business.

• Cloud native digital infrastructure platform: Those planning the

IT architecture should focus clearly on establishing digital and agile

standards. From the IT process chain through to the value creation chain

at the business end, the technology used must be highly connected and

replaceable (and thus fail-safe).

• Cloud native – a selection criterion for service providers: The lower the

legacy overheads, the more emphatically cloud native standards can be

defined as win factors. That is why the service provider accompanying

the enterprise on this journey should, where possible, have experience

with conventional IT operations (so as to be able to pick up and utilize

old assets where necessary), but also have a clear focus on cloud native

as the future paradigm.

• Infrastructure as code on autopilot: This scenario has the highest

number of workloads with strong sales and/or business relevance. New

requirements and technologies are constantly being added and have to

be integrated into the connected architecture. Enormous potential arises

here through the automation and standardization of basic components, in

order to manage the infrastructure and application landscape as quickly

and agilely as possible on a uniform management stack.

Regardless of where the individual company currently stands as regards

hybrid cloud and cloud native, a clear strategy can emerge in this way. The

important thing is that all the components of the digital infrastructure –

from business through to technology – must be factored in. That includes

drawing up a clear road map that is geared to growth and ensuring the digital

infrastructure platform is implemented in a well-thought-out, step-by-step

manner – so that maximum success can be achieved.



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About TSystems/

With a footprint in more than 20 countries, 37,500

employees, and external revenue of 6.9 billion euros

(2018), T-Systems is one of the world‘s leading vendor

independent providers of digital services headquartered

in Europe.

T-Systems is partnering its customers as they address the

digital transformation. The company offers integrated

solutions for business customers. The Deutsche Telekom

subsidiary offers one-stop shopping: from the secure

operation of legacy systems and classical ICT services, the

transition to cloud-based services (including international

networks, tailored infrastructure, platforms and software)

as well as new business models and innovation projects

in the Internet of Things. T-Systems can

provide all this thanks to its global reach in fixed-network

and mobile communications, its highly secure data centers, a

comprehensive cloud ecosystem built around standardized

platforms and global partnerships, and the ability to offer

top levels of security.

For more information, please visit our website www.t-

systems.com, or follow us on Twitter.

Contact:

Hahnstraße 43d

60528 Frankfurt am Main, Germany

Telefon: +49 69 20 060 0

Email: [email protected]



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https://twitter.com/tsystemscom

About Crisp Research/

Crisp Research GmbH is an independent IT research

and analyst house. With a team of experienced analysts,

consultants and software developers, Crisp Research

assesses, evaluates and rates current and upcoming

technology and market trends. Besides their focus on

research, Crisp Research also offers consulting services

for companies to guide and support along the entire

digital transformation journey and the changing IT and

business processes.

Analyses and comments from Crisp Research are widely

spread and discussed on a multitude of economy and IT

magazines and across social media platforms. Actively

engaged in today’s and tomorrow’s topics, Crisp’s team

can show credits as contributing editors in leading IT

publications, as BITKOM members and as high demanded

keynote speakers. Always on the go and in the loop

on technologies, standards and market trends, Crisp

Research’s team is rated amongst the most relevant

influencers of their industry.

Crisp Research was founded in 2013 by Steve Janata and

Dr. Carlo Velten with their area of business in research and

consulting services. The focus of Crisp Research’s work is

on ‘emerging technologies’ such as cloud, analytics, digital

marketing and the strategic and operational implications

on CIOs and business decision makers of companies.

https://www.crisp-research.com



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About the author/

Max Hille Senior Analyst & Cloud Practice Lead

Maximilian Hille is a Senior Analyst and Practice Lead at

Crisp Research. As Cloud Practice Lead, he is in charge of

all research and consulting activities in connection with

cloud architecture, cloud native technologies, managed

cloud services, the digital workplace, and mobility. He was

previously research manager in the Cloud Computing &

Innovation Practice unit of Experton Group AG.

Maximilian Hille studied economics, majoring in business

information systems. His focus topics are cloud platforms,

cloud architecture design, hybrid and multi-cloud

computing, cloud native architecture, the digital workplace,

collaboration, enterprise mobility, and mobile business.

In 2016, 2017, 2018, and 2019, he was a member of the

jury for the Global Mobile Awards.

[email protected]



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Copyright/

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