Accelerating The Journey to IT as a Service (ITaaS) by leveraging Cloud Services Brokerage

© 2015 International Business Machines Corporation

Accelerating The Journey to IT as a Service (ITaaS) by leveraging Cloud Services Brokerage

In this session you will learn how leveraging a Cloud Services Broker within a Hybrid IT environment, will be key to balancing the speed and

flexibility that the Lines of Business (LOB)s require while maintaining

compliance, security and control for Central IT and position CIO as leader to accelerate innovation for their Enterprise.

Presented by: John M. Kundtz

Associate Partner / Global Business Development Executive

Brokerage Services Global Center of Competency

[email protected] / 216-370-6945

Denver, Colorado – 16 March 2016

Follow John on Twitter @jmkundtz or connect on LinkedIn http://www.linkedin.com/in/jkundtz

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Abstract:

� Our world is changing at the fastest speed we’ve ever seen.

� We are observing shortened time-to-market of products and services, lower cost

of computing and new market entrants that are growing at the highest speed.

� The most important effect is that we all, as consumers, as citizens, as everyday users of technology are expecting products and services to make our lives more convenient.

� This is putting great pressure on IT organizations to optimize the IT supply chain.

� We are all seeking our experiences to be:

– Easy to Use - Simple, intuitive, at our fingertips

– Personalized - Customizable, constantly learning about us, able to recognize who we are as individuals

– Empowering - Enabling us to get our tasks done with the fastest speed and accuracy

– Always on - time-dependent, geo-dependent, device-dependent

Accelerating The Journey to IT as a Service by Leveraging Cloud Services Brokerage | The IT Summit – Denver | 16 March 2016 | John M. Kundtz

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Cloud gives business, IT, and development leaders the speed and flexibility to match the pace of business with affordable economics. Cloud lets businesses:

82% of enterprises don’t get enough out of the cloud…

why oh why?

Pacesetters adopting cloud now have already gained almost 2x the

revenue growth and nearly 2.5x higher gross profit growth.(*) Under Cloud Clover: How leaders are accelerating competitive differentiation, page 3. IBM Center for Applied Insights. October 2013. Ibm.com/ibmca/globalcloudstudy

Reinvent customer relationships

Build new business models

Innovate products and services


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This Multi-Cloud world has a number of challenges

• Lack of Visibility & Control across growing numbers of service providers

• Shadow IT with LOBs leveraging the Cloud for speed and agility, bypassing Central IT

• Integration of an explosion of IaaS, PaaS, and SaaS Cloud Providers

• Supporting and managing business processes that span a multi-sourced IT Infrastructure

• Diminished relevance of the CIO and Enterprise IT

• Business Units (LOB) tend to select cloud providers based on word of mouth or ease of access, frequently paying more and potentially exposing the organization to a compliance or audit risk.

• Applications that started “small” evolve into critical digital connections. When this “cloud sprawl” goes down, has performance problems, or unexpected behavior the LOB often doesn’t have the expertise or tools to resolve infrastructure issues.


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Now that LOBs are procuring more cloud services than IT… what to do?

Ignore

Be Reactive

Be Proactive

IT can…. Which means…. Leading to….

IT is not involved with

cloud use

IT becomes irrelevant

IT competes with cloud

providers relegated to a

private cloud provider

Budget is cut as more

moved to public cloud

IT provides choice in

services through a

dynamic sourcing model

IT becomes a valued

partner and broker of all

IT services

Source: Hybrid Clouds and Hybrid IT: The Next Frontier, Thomas Bittman


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Possibilities: What happens if you do nothing?

What if?What if?What if?What if?


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You could…

• Issue an RFP for “strategic cloud services”

• Select a vendor (or a small handful of vendors)

• Issue a “mandate” to use only the selected vendor(s)

• Create a migration plan, and

• Set up a governing body to make sure nobody steps out of line

Does this sound familiar?

Does this really accomplish your objectives?

Does this approach work for cloud?


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FlexibilityControl

Cloud Service Broker

cloudMatrix

We believe Brokerage balances the needs of Central IT with the Lines of Business and is key to enabling IT-as-a-Service.

Many platforms do not address all aspects of service delivery, falling short of an ITaaS operational model

LOB needs:• Agility & Speed• Limit Roadblocks• Provide more

services

Central IT needs:• Visibility • Compliance• Governance• Cost Management

Choose the right mix for your business

Traditional approach is not sufficient• Processes are built for static business model

• Structure tied to infrastructure

• Can’t scale management of many vendors

• Pace of change, traditional models just won’t keep up

To do this IT must be• Provider agnostic

• Dynamic

• Interconnected

• Design Experts

• In an “as-a-Service” Model

• Move from technology builder to

solution broker of a Hybrid

technologies


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Becoming a cloud broker requires a shift in focus to Business Operations and requires news skill and capabilities.

Traditional IT

Operations

Business

OperationsTraditional IT

Operations

Business

Operations

Traditional IT Enterprise IT

Order management

across many vendors

Dynamic pricing and

catalog management

Sourcing and provider

management

Billing and cost

management


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Consider Brokerage Services the transformation of the IT Supply chain.

…to a more modern, distributor-logistics model

ScaleReach

Selection

Speed

Efficiency

Price Optimization

ElasticityResilience

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

From direct-to-consumer…


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We believe that a Services Broker should deliver from a Single Consumption Platform for Enterprise IT as a Service.

Public Private PublicCloud

InternalCloud

InternalData Center

Hosted byService Provider Hybrid Cloud

Brokerage Services Platform

Business Users Developers Architects I&O Operators CIO/CFO

Any Platform. Any Provider. Any Location.

PLAN BUY MANAGE A Single ConsumptionPlatform for

Enterprise IT as a Service

Management Services

Consumers

A Supply chain approach to delivering IT

services


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Brokerage services provide visibility to the end-to-end IT-as-a-Service supply chain and buying behavior of consumers.

Public Private PublicCloud

InternalCloud

InternalData Center

Hosted byService Provider Hybrid Cloud

Brokerage Services Platform

Business Users Developers Architects I&O Operators CIO/CFO

Any Platform. Any Provider. Any Location.

PLAN BUY MANAGE

Management Services

A Single ConsumptionPlatform for

Enterprise IT as a Service

A Supply chain approach to delivering IT

services

Consumers


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Brokerage has positive impacts on the entire solution lifecycle.

Screenmonths

Designmonths

Ordermonths

Deploymonth

Changemonth

Provisionmonths

months months monthsDays to

WeeksMonth

Days to

Weeks

~ Year

~ Months

weeks weeksDays to

Weeks

Days to

Weeks

Days to

Weeks

Days to

Weeks

Brokerage Services accelerates

the entire lifecycle

~ Weeks

The complete lifecycle to move apps to the cloud is months

The impact of traditional CMPs (Cloud Management Platforms) is limited

Months saved = more Revenue earned

An ideal broker compresses the entire

lifecycle and automates the

management of the cloud supply chain


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Research suggests that 70% of enterprises are actively consuming cloud delivered IT services, often outside the control of Enterprise IT.

The Solution: become the broker for

all technology choices and strategy• Strategic sourcing and placement of assets through

ecosystem, based on need and value

• Centralized management of all assets

• Cost and usage optimization across providers

Business Unit

Enterprise IT

Today’s Problem: IT is now one of

many service providers• Limited control over decentralized assets

• Business demands exceed IT capability

• Business makes decision on new apps and risk

• Increased speed to market justification

• Responsibilities for governance in silos

Business Unit

Today there are challenges to getting value from Enterprise IT:

Integration and operation of internal IT with the dynamic Cloud ecosystem

New operational

models, processes & skills to support

Enterprise IT

Regaining control of costs, assets and

compliance in a virtual IT landscape

Navigating the

complexity of many cloud offerings for easy consumption

Reliably manage IT while enabling agility

Traditionally: IT has been the only

service• Traditional approach

• Avoid potential business risk

• Control of spend and vendor management

• Best-in-class technology selection process

• Focus on efficiency in current IT processes

Business Unit


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Cloud Services Brokerage (CSB) solution are gaining traction in the market place because they make it easy to do business, enable best pricing, & speed to value.

Makes it Easy to do Business

Best Pricing

Speed to Value

Source: Graphic from a client’s Board-of-Director session in November 2014Accelerating The Journey to IT as a Service by Leveraging Cloud Services Brokerage | The IT Summit – Denver | 16 March 2016 | John M. Kundtz

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Cloud Services Brokerage balances the flexibility and control.

Business Unit needs:

• Flexibility / Easy to Use

• Choice

• Speed

• Lower cost

• Options for managed services

Enterprise IT needs:

• Visibility and control

• Cost effectiveness

• Scale with consistency

• Security compliance

• Governance

FlexibilityControl


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Some things to think about ?

1

What is your current

level of visibility into

your public cloud usage,

bills and assets?

Is it enough?

2

What areas of your

infrastructure would

benefit the most

from robust DevOps?

4

What are the main

challenges that your

organization is facing to

fully embrace Hybrid?

3

What workloads are

you planning to move

to the Cloud in the

short term? What

determines your

decision?


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JOHN M. KUNDTZ

Mr. Kundtz is an Associate Partner and Nationally Published Speaker with over three decades of experience as a Management Consultant and Business Development Executive with a focus on complex Enterprise Solutions within multiple industries including finance, healthcare, manufacturing, education, government, and not-for-profit.

As a member of IBM’s Global Brokerage Services Center of Competency, John is works with clients on large complex initiatives across the globe. His team of experienced Consultants, Architects, and Project Managers assist our clients with complex IT Transformation and Data Center Optimization engagements. We lead the development and creation of the methodologies and techniques required for successful Cloud Services Brokerage, IT Transformation, and Data Center Optimization, including the transformation activities and the tools to develop the best solution at the lowest cost.

Before joining IBM’s Global Broker Center of Competency, John lead a team of United States based Data Center Specialists. John and his team were responsible for helping clients identify requirements, assess current capabilities, and review best options for their data centers. This included consulting and implementation services to provide assessments and strategy input, updating and optimizing data center facilities, and consolidating and relocating I/T equipment and overall IT and data centers infrastructure optimization resulting in a reduction in costs and improved operations.

In 2010, John was honored by Northeast Ohio Inside Business Magazine as one of the region’s most influential technology people.

As a past member of the Faculty of IBM’s Executive Consulting Institute as a Methodology Instructor, during his tenure as an instructor and consultant , John worked in Asia, Africa, Europe, South America, and North America and as a result is well versed in cultural orientation and cognitive styles required to conduct business in today’s global marketplace.

Mr. Kundtz has spoken and published on a variety of topics relating to Cloud Services Brokerage, Data Center Optimization, Smarter Data Center, Analytics as well as Systems Management and Networking. He is well versed in the business and technical issues impacting today’s organizations as they seek to leverage their IT assets for competitive advantage.

Follow John on Twitter @jmkundtz or connect on LinkedIn http://www.linkedin.com/in/jkundtz

Accelerating The Journey to IT as a Service (ITaaS) by leveraging Cloud Services Brokerage

Leadership & Management

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