Future of Infrastructure:

Commonwealth

Perspective

Beginning to prepare for cloud transformation …

Well tested the vendor landscape and conducted multiple

proofs-of-concept

Vendors are known / emerged and footprints deployed with

early stage app migration

Initial efforts focused with relatively lower organizational impact

and level of effort

Stakeholder commitments - internal and external stakeholders

Significant run-rate reductions have been identified but cost-

savings are loaded on the back-end

Staff is multi-hatting to run the operation, the operating model

needs to catch-up

… but face substantial challenges in completing the journey

Application

Migration

1000’s of applications, global scope, zero business disruption

Many applications requiring modification, re-platforming or

refactoring

Operating

Model

Refresh

Staffing constraints in bandwidth and skills

New operating model requirements – greenfield vs. brownfield,

updated org structure, new roles and responsibilities, new

processes, skill gaps

Commitment to service and business continuity

Process and

Financials

Extensive tool selection and deployment requirements for tech

ops, code and configuration management, ITSM, ITFM, ITBM

etc.

Development Demand for rapid deployment of Agile / Dev Ops capabilities

1990’s

Ris

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f D

ata

Cente

rs

Bla

des / S

erv

er

Virtu

aliz

ation

PaaS

Em

erg

ence

Clo

ud

Tra

nsfo

rmation

?

2000’s 2010’s 2015 2020

Infrastructure is no longer an IT domain – it will transform as a series of “bundled

services” provided through a services catalog.

Commonwealth’s Journey

Clients

Today

Regulation &

Risk Mitigation

Increasing

Competition

Shifts in

consumer

behavior

Threat from substitute

product providers (e.g. P2P)

Regulatory drivers

Competitive drivers

Consumer drivers

Basel III / CRD IV

Consumer protection /

conduct agenda

Affordable care act

Structural reform

measures

Increasing customer expectations

due to technological advancements

in consumer products (e.g. Mobile)

Rise of the digital consumer

Price sensitivity and rise of

independent aggregators

Increasing social engagement

Price competition from

aggregators

Platform stability / Reduction

in Severity-1 outages

Faster time to market for products

User oriented service catalogs /

anywhere / anytime access

New business models / rapid

inorganic growth

Continuity of Business /

Proximity risk

Cost

Pressures

Shrinking Budgets / Cost

Pressures

Shift to variable Costs/pay-

per-use;/subscription models

Greater Financial

Transparency

Increasing Cost Pressures

Show back/Chargeback

What hasn’t changed….

Consumer

Behavior

Client

Shift

Industry

Trends

Tech

Trends

Embark on multi-year Global IT

Transformation to modernize IT

infrastructure and application portfolio in

a broader effort to cut $$$ from the

budget

Outsourcing core infrastructure to multi-

million/billion dollar services agreement

Moving all non-production services to

cloud as a first pass

Creating Automated Private Clouds with

key tenant centered around Scale,

Speed, and economics

30% of Cloud spend goes to “no name”

provider / infrastructure

Gartner predicts IoT to include nearly 26

billion devices, with global economic value-

add of $1.9 trillion by 2020

Growth in the number of intelligent edge

devices over the next 5 years (IDC, 2014)

There will be a 10X explosion of new cloud

apps between 2013-2017 and a 3X

expansion of the cloud developer

community (IDC, 2014)

Consumer grade experience is the new

gold standard to IT Delivery

The number of mobile connections will

reach 8.5 billion in 2018 (Gartner, 2014)

Wearables will be a huge market, worth

$25 billion in 2016, the market will

quadruple to over $100 billion by 2024

(Gartner, 2014)

The average consumer will routinely carry

around an average of 25 connected

electromechanical sensors by 2024

(Gartner, 2014)

Private Cloud Infrastructure spending grew

by 18.3% year over year

Gartner predicts that infrastructure-as-a

Service market revenue will grow at a

CAGR of 31.7% through 2018 as

companies continue to grow and expand

existing data center infrastructure services

($50B addressable market)

More than 70% companies understand the

importance of infrastructure services, but

only 22% claim to have a well-defined IT

Infrastructure in place

… and what has?

Cost

Effectiveness

Service Quality

Improvement

Risk

Management

Business Agility

Shrinking budgets / cost pressures

Greater financial transparency

Shift to variable cost / ‘pay-per-use’

subscription models

Platform stability / Reduction in

Severity-1 outages

Faster time to market for products

User oriented service catalogs /

anywhere / anytime access

Continuity of Business / Proximity risk

Cyber Security

Increased regulatory and legislative

scrutiny / pressures

New business models / rapid inorganic

growth

Exponentially higher transaction

volumes / unstructured data

Ability to dynamically scale capacity up

or down

Business Imperatives Technology Infrastructure Levers

1

2

3

4

5

Data Center Transformation

Facilities Consolidation

Software Defined Data Centers

Hybrid Cloud Models

Automation – Workflow and Infrastructure

Disaster Recovery Strategy

Asset Optimization

Server Virtualization / Standard Platforms

Storage Optimization / Reclamation

Network Convergence

Workplace Transformation

Mobility / Unified Communication

Desktop Virtualization

Bring Your Own Device (BYOD)

Labor Reengineering

Global Operating Models

Right-sourcing / Shoring

Labor less IT

COO / CTO Transformation

IT Service Management / ITIL

IT Finance & Performance Management

Business Engagement / Portfolio Management

Key business imperatives are influencing how we respond - realign the technology

infrastructure operating model

Market forces, business pressures, and technology innovation are forcing CIOs and CTOs to transform technology infrastructure –

primarily to reduce costs, improve service quality, and minimize risk

New development on software-defined storage and network has resolved infrastructure constraints and given rise to the Software-

Defined data center (SDDC), allowing most components of the application layer to be independent of hardware layer.

Mix of Manual and Automated

Management / Allocation of Resources

Mix of Virtual and Non-Virtual

Network, Storage, Compute

Se

mi-M

an

ua

l Ad

min

an

d

Ma

na

ge

Typical Data Center

Software Driven – Dynamic (Automated)

Management / Allocation of Resources

Fully Virtualized Data Center

Fu

lly A

uto

ma

ted

Software-Defined Data Center

Impact and Considerations

Compute, storage, networking, security, and availability services

are pooled, aggregated, and delivered as needed

Managed by intelligence-driven software for configuration,

monitoring, provisioning and decommissioning

API-Driven Cloud management capability

Application layer abstracted and independent of hardware layer

Workflow will be simplified by implementing a new service that

reduces infrastructure silos

Increased demand for commodity hardware and automation will

lower CapEx and OpEx

Software defined Networking supports VXLANs improving flexibility

over VLANs

Open API interaction helps application development become

independent of physical architecture

The Software Defined Data Center

What Our Peers Are Facing

What Our Peers Are Facing

What Our Peers Are Facing

The Future – Autonomic Platforms

• “Build once, deploy anywhere” approach in which new architectures utilize containers, provisioning, and advanced management and monitoring tools to seamlessly move workloads between traditional on-premises stacks, private cloud platforms, and public cloud services.

• As cloud meets the ground, end-users can focus exclusively on outcomes, rather than where resources are located and how services are provided.

“PA Autonomics” - Concept

OA Service Catalog

L

E

G

A

C

Y

Agency

Customization

C

o

P

A

Challenges• ITSM

• Network

• Risk Management / Security

• Investment – move applications across platforms

• Business & IT Continuity with higher availability12

20% 40% 30% 10%

C

L

O

U

D

IaaS

PaaS

SaaS

Application

Driven

The Future Vision