Consumerization of IT - Perfect Storm - For The Transformation

Building Cloud Ready DatacentersBuilding Cloud Ready Datacenters

September 2012

MayankMayank KapoorKapoorIndustry Analyst Industry Analyst –– Datacenter and Cloud Datacenter and Cloud

ComputingComputingFrost & SullivanFrost & Sullivan@@Cloud_AnalystCloud_Analyst

1 Business Drivers for Datacenter Transformation

Agenda

2 Frost & Sullivan Datacenter Transformation Roadmap

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3 The Telco Advantage

4 Gazing at the Crystal Ball

What is Cloud Computing?

A pool of compute, memory and i/o resources, applications or operating environments with seemingly infinite scalability, delivered as a service over a network, be it private or public.

Deployment Models

EnterprisePublicCloud

Private

PUBLIC

PRIVATE

Characteristics

On Demand, Self-Service

Pay As You Use, Metered Consumption

Service Types

Software as a Service

Software delivered through the public or private network

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EnterprisePrivateCloud

EnterprisePrivateCloud

HYBRID

PublicCloud

COMMUNITY

Enterprise2

Enterprise3

Enterprise1

CommunityCloud

Consumption

Rapid Elasticity, Scale Up/Down

Shared Pools, Illusion of Infinite Resources

Broad Network Access using Standard Internet Protocols

Platform as a Service

Development platform as a service

Infrastructure as a Service

Compute, storage as a service

How many of you own a “Smart Device”?

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How many of you use Social Media and/or Video?

5

How many of you have used a Cloud-based Service?

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Would you like to use these at work?

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Business Drivers for Datacenter Transformation

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Source: Frost & Sullivan Analysis


Agenda


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Increasing levels of virtualization across the region

Although early adopters used server virtualization primarily for test and development environments, more customers today are moving production workloads to a virtual

machine.

Have you virtualized your server infrastructure?

At what stage are you in server virtualization journey?

33%

15%13%

10

67%

33%

Yes No

Survey done with IT

decision makers >500

employees and at least

5000sq ft. of RFS

N = 328

Source: Frost & Sullivan analysis.

24%

15%

33%

Running Pilot Projects (Pilot)Running a few Test / Dev environments (Nascent)Running most Test / Dev environments (Evolving)Running a few production environments ( Extensive)Running most production environments (Advanced)

N = 221

Operational challenges in running datacenters today

What are the key challenges you face in datacenter operations?

Security, network latency, data deluge, implementing virtualization and managing the virtual infrastructure are some of the leading challenges

17%

25%

26%

27%

29%

33%

56%

46%

41%

Securing applications & data

Network latency

High energy consumption

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N=600 ; Source: Frost & SullivanSurvey done with IT Managers and CIOs in Australia, Hong Kong, China, India, Singapore and Malaysia

in Q2 2011. 64% with >500 employees and 36% with 200 to 499 employees.

26%

27%

20%

25%

23%

33%

34%

42%

37%

41%

41%

39%

38%

38%

36%

High energy consumption

Running out of storage

Implementing virtualization

Managing virtual infrastructure

Visibility into datacenter assets & performance

Less critical Neutral Critical

Almost a third of businesses in APAC today use IT as a Service

Adoption of Cloud Computing by Delivery Model

71%

3%

16%

29%

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N = 600

� Adoption level has increased by 6 percentage points from Aug/Sep 2010.� Hybrid clouds offering a blend of Cost Savings and Security witnessed

highest adoption.

10%

Not adopted Public cloud Private cloud Hybrid cloud

Frost & Sullivan Datacenter Transformation Roadmap

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USERSUSERS

BillingService

ManagementReporting

Service Catalogue

Self-service Portal

Business Support System

A Sample End-state

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Compute Network Storage

Resource Provisioning

OrchestrationLifecycle

Management

MonitoringCapacityPlanning

AnalyticsOperation Support System

System

Virtual Fabric


Why is the transformation important?

SpeedSpeedEndEnd--toto--end end

ManagementManagement

• End-to-end Performance Monitoring

• SLA Measurement

• Service Catalogs• Provisioning Templates• Reduced Human

Intervention & Error

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AlignmentAlignmentEnhancementEnhancement

• Increased Agility• Self-service

Capability• Enhanced Resource

Utilization and Performance

• Consumption-based Metering

• Charge Back and Allocation of IT Costs

• Capacity Planning

Transformation – need to find the right balance

Technology Business

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Transformation: The Seven Ingredients

This flexibility helps maintain quality of service by avoiding resource contention.

Moving from 3-tier to a 2-tier switch architecture reduces latency in server-server communications.

Reduces i/o connections per server, number of switches and routers, and power and cooling costs.

Flexibility

Simplification

Convergence

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Creating a data center architecture that is simple, secure, flat and virtualized is critical

Direct links between all devices and change to TRILL and SBP protocol helps eliminate looping in STP.

Virtualizing security environment will help ensure VM level security measures are in place.

Network Virtualization

Eliminate Looping

Hybrid Clouds

Security

The IT architecture should be able to support a hybrid cloud model

Source: Frost & Sullivan analysis.


Agenda


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The Telco Advantage – A compelling value proposition

Network Ownership

Breadth of

Partners and

Support

GlocalCharacter

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The Telco Advantage

Support

Scalability and Cost Savings

Bundled Solutions

Financial Stability


Agenda


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• Explosive growth ahead

• Low barriers to entry

• SaaS vendors need to move beyond “pure SaaS” to “PaaS”

• Lock-in model

SaaS

• A segment headed for rapid commoditization

Cloud Prediction 1: PaaS will emerge as key battleground

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Source: Frost & Sullivan

• A segment headed for rapid commoditization

• Robust service delivery platforms and flexi-pricing models crucial

• SaaS is a path of natural progression

IaaS

• The key battleground in the future of cloud

• PaaS market participants are expected to venture aggressively into the SaaS, IaaS turf

• Openness and integration with other platforms, mobile devices crucial

PaaS

Banking

Utilities Smart Grids

Branchless Banking

Industry Cloud Driven Transformation

Cloud Prediction 2: Businesses will be transformed by Cloud Computing

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IT

Media

Retail

Healthcare

Post PC Era

EMR and Point of Care Solutions

Virtual Stores and more eCommerce

Content Streaming, eBooks

• Business skills such as project, relationship management will take front-seat

• Cloud will run on Commoditized, open source platforms with stringent SLA’s

It is all about Business

• IT automation will render several “dull” IT jobs obsolete

• Skills in demand will include technical architects, vendor relationship managers, risk management professionals

IT departments will evolve

SMB’s will have access

Cloud Prediction 3: There will be a shift in how IT functions

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• SMB’s have an unique ability to scale quickly and obtain access to enterprise class infrastructure

• Advent of start-ups that live in the “Cloud” with no infrastructure

SMB’s will have access to Enterprise class ICT

resources

• MNC’s and Conglomerates will offer “IT as a Service” both internally and potentially to external customers as well

• Drastic improvements in efficiency, effectiveness and measurability of IT

Conglomerates will become “Service

Providers”

• “Browser” is the software and “Internet” is the network

• Ubiquitous access from any device, anytime, anywhere, any networkBrowser is the software

These are three critical areas where we expect considerable industry efforts in the future and in a recursive sense are essential for Cloud computing to become mainstream

Standards Development • Use cases • Reference implementations• Publishing of test results

Risk Management Frameworks

Cloud Prediction 4: Significant efforts will be devoted to Standards, Security and SLA’s

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Risk Management Frameworks • Adequate security controls• Vendor assessment standards• Stringent privacy laws on data integrity• Third-party audits and review

Improvement of SLA’s • More heterogeneity in SLA’s• SLA’s with clear response time • Financial liability • Robust privacy standards

Cloud Prediction 5: Clouds will change how business use IT

IT departments will be under pressure to deliver “ITaaS”. IT

departments will have to contend with and compete against the external service providers with better SLA’s,

agile provisioning and resource allocation models

For private cloud to succeed in the enterprise IT needs to be

underpinned by three important characteristics – Self-service automation, Measurability

and Chargeback and Service assurance

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Cloud computing adoption will be the primary driver for data center consolidation in the

large enterprises

Cloud will enable governments to provide better public

access to applications and data in a cost effective manner

In Asia Pacific, there will be several start-ups that will

eschew the traditional IT model and build their IT infrastructure on the cloud in a OPEX model

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Donna Jeremiah

Corporate Communications

Frost & Sullivan Asia Pacific

[email protected]

Tel: 61 (02) 8247 8927

For Additional Information:

Mayank Kapoor

Information & Communication Technologies

Frost & Sullivan Asia Pacific

603 62071011

[email protected]

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Jessie Loh

ManagerCorporate Communications, Asia [email protected]. (65) 6890 0942

Carrie Low

ExecutiveCorporate Communications, Asia [email protected]. (603) 6204 5910

Consumerization of IT - Perfect Storm - For The Transformation

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