VMworld 2013: VMware Customer Journey - Where Are We with ITaaS and Ops Transformation in the Cloud...

VMware Customer Journey - Where Are We with

ITaaS and Ops Transformation in the Cloud Era

Mike Hulme, VMware

Kurt Milne, VMware

OPT5656

#OPT5656

2 2

Agenda

Significant Industry Movement in 2013

IT as a Service profile

Operations Transformation – Key Success Factors

Journey Recommendations

3 3

VMware’s Customers are on a Journey

Abstract. Pool. Automate. Empower.

CapEx Savings

thru

Consolidation

OpEx Savings

thru

Automation

Game Change

thru

IT as a Service

IT Production Business Production IT as a Service

Phase III

Phase II

Phase I

Infrastructure Focus Application Focus Agility Focus

4 4

Driving a Path to IT as a Service


Phase III

Phase II

Phase I Initiatives

• On-Demand, self-service

• Automated provisioning

• Service profile scaling

Benefits

• CapEx and OpEx

• Agility

• Increased innovation

• Impact Business outcome

Initiatives

• Server consolidation

• Test and development

Benefits

• CapEx

Initiatives

• Business critical applications

• Automated management

• Security and compliance

• Availability

Benefits

• CapEx and OpEx

• Performance

• Service quality

5 5

Continued Progression of Server Virtualization


CapEx Savings

thru

Consolidation

OpEx Saving

thru

Automation

Game Change

thru

IT as a Service


Phase III

Phase II

Phase I

Consistent

Target

80% 2013:

68%*

Source: IDC Research

6 6

Where is the Growth Coming From?

79% Today In 2 Years

30% Decrease

40% Decrease

Virtualized X86

Hybrid Cloud

Legacy Environments

Physical X86

7 7

Continued Progression of Server Virtualization

Abstract. Pool.

CapEx Savings

thru

Consolidation

IT Production

Phase I

Automate. Empower.

OpEx Savings

thru

Automation

Game Change

thru

IT as a Service

Business Production IT as a Service

Phase III

Phase II

75% of the market

8 8

Momentum to IT as a Service

Emerging Value Drivers Traditional Value Drivers

Business Critical App

Virtualization – Now 65% Cloud model for

self-service, on-demand

ROI tied to Journey Stage

181% 192%

229%

Cost savings

and consolidation

Innovation and

revenue growth

Impact on budget

and financial model

9 9

Major Areas for ROI

Major Areas for ROI

55%

54%

51%

44%

41%

33%

27%

27%

23%

Consolidation driven savings

Less time provisioning resources and services

Fewer service outages (better uptime)

Less time managing and maintaining

More standardization

Faster response to service outages

Able to “say yes” to more biz requests

Less time supporting

More use of automation

N = 802

10 10

What are ITaaS Organizations Doing Differently?

11 11

Unique qualities of IT as a Service Orgs

Where have they invested?

• Highly virtualized

• Self-service, on-demand, automation

• Combined technology change with process change

Leveraged the virtual environment for a new, service-oriented IT model

How have they benefitted?

• Universal improvement in IT and business metrics

• Improved relationship with the line of business

• Economic model committed to Innovation

• Greater ability to impact business goals

Evolved from “Budget-minded” to “Investment-minded”

12 12

Infrastructure Services Requested Via Self Service On-demand Service Portal

ITaaS – More Self Service On-Demand via Service Portal

4%

13%

17%


4X

13 13

Deeper Investment in Automation


Degree of Provisioning Automation of Services Requested

Via Self-service, On-demand Service Portal

3X LEVEL OF

AUTOMATION

67%

14 14

ITaaS Translates to Massive Gains in Efficiency



Phase III

Phase II

Phase I

119.8

169.0

362.4

ITaaS organizations managing 3X the VMs of IT

Production organizations

Automation, self-service, on-demand drive gains

15 15

Economic Benefits of ITaaS

72%

23%

26%

47%

16 16

Run Budget vs. Innovation

65%

42%

58%

50%

50%

Goal

(2 years)

Today

Two Years Ago

30%

70%

Gartner: 70% of IT budgets

consumed by “Run the

Business” costs, namely IT

operational and capital

expenses,

30% of IT budgets invested in

new applications or services that

advance business goals for

growth or new revenue.

Industry Average Comparison

35% Budget for innovation

Budget for existing operations

17 17

IT as a Service Advantage: Increased Budget for Innovation

42%

58%

50%

50%

Goal

(2 years)

Today

Two Years Ago

33% ITaaS organizations have already

achieved innovation budget target.

65%

35% Budget for innovation

Budget for existing operations

18 18

5%

8%

IT Production IT as a Service

ITaaS Advantage: Budget as a Percent of Revenue

60%

Difference

ITaaS organizations secure

greater budget as a

percent of revenue

Greater connection

between investment in IT

and return for the business

19 19

Impact of the Software-Defined Datacenter

20 20

Architectural Foundation for IT as a Service

Software-Defined Data Center • All infrastructure virtualized

• Delivered as a service

• Automated through software

21 21

VMware’s Customers are on a Journey


CapEx Savings

thru

Consolidation

OpEx Savings

thru

Automation

Game Change

thru

IT as a Service


Phase III

Phase II

Phase I

Software Defined Datacenter

22 22

How is the market evolving?

77%

Customers extending

virtual environment to

networking and storage

60% Customers with datacenter

strategy based on x86

hardware with control in

software

23 23

Strategic Initiatives Linked to SDDC

N = 1028

How is the market prioritizing

Software-Defined Data Center implementation?

Priority 1

Priority 2

Priority 3

Achieve Compute

Virtualization Target

Virtualize Storage

Resources

Virtualize Network

Resources

24 24

Operations Transformation – Key Success Factors

25 25

Like our customers - VMware IT is on a Journey


CapEx Savings

thru

Consolidation

OpEx Saving

thru

Automation

Game Change

thru

IT as a Service


Phase III


Phase II Phase I

2012 99% Virtual

40% SaaS

Private Cloud SDDC

2006 80% Virtual

Best of breed apps

2008 99% Virtual

Best of breed apps

1st SaaS

2010 99% Virtual

20% SaaS

Virtual+ “Cloud”

26 26

“Project OneCloud” - Explosive Tenant Growth

Corp IT DevOps = Tenant #4

Very low cost per VM

“Cloud first” policy in IT

AppOps

SDLC

provisioning

Hands

On Labs Hol.vmware.com

Services &

Support Customer environment

reproduction

Sales

Engineering

Demo Pods

VMworld 2013

Management

BU Field

Testing

TechSummit

2013

Tech Ops

Mini R&D

Cloud

Training

LiveFire

Private Cloud IaaS Software Defined Data Center

June

2012

Jan.

2013

Today End

2013

2014

Launched

Built on

vCloud Suite

4 tenants

10,000 VMs

9 tenants

38,000 VMs

12 tenants

50,000 VMs

More

services

Timeline

27 27

VMware - Automated SDLC Provisioning on Private Cloud

Service

Definition

Blueprint

Policy POC1 POC2 Catalog

Provision QA Staging Release

40 work weeks effort – Per Release…

20 work weeks effort – Once!

Run Book

36 hours

Service Request

4 weeks

It takes less time/effort to convert the runbook into blueprints…

…than it takes to “run” the runbook...

Virtual Server

Virtual Data Center Service Request

Catalog

VMware@VMware

Provisioning

Oracle ERP

with Portals

28 28

Results

Phase 1 Phase 2

Cycle Time Hours per SDLC instance

172

36

Today

Phase 1 Phase 2

Virtual Machines Transitioned To Private Cloud

Phase 1 Phase 2

AppOps Team # of Engineers

Goal – 4000

2,800

2,200

Goal - 5

27

22

Reduced provision time

95% (4 weeks to 36 hours)

Improved productivity

of 600 developers

20%

Reduced

IT operations costs

$1.5M /year

Able to say

“yes” to developer requests

Reduced the cost of

a VM/month

80% ($133 to $20)

Reduced

infrastructure costs

$4.5M/year

672 hours (4 weeks)

Goal – 24 hours

Today Today

29 29

Results

Phase 1 Phase 2

Cycle Time Hours per SDLC instance

172

36

Today

Phase 1 Phase 2

Virtual Machines Transitioned To Private Cloud

Phase 1 Phase 2

AppOps Team # of Engineers

Goal – 4000

2,800

2,200

Goal - 5

27

22

Reduced provision time

95% (4 weeks to 36 hours)

Improved productivity

of 600 developers

20%

Reduced

IT operations costs

$1.5M /year

Able to say

“yes” to developer requests

Reduced the cost of

a VM/month

80% ($133 to $20)

Reduced

infrastructure costs

$4.5M/year

672 hours (4 weeks)

Goal – 24 hours

Today Today

Bottom Line

Agility is Self-Sustaining

30 30


New Operating Model

IT is now a:

Cloud Provider

Cloud Consumer

Service Broker

Three-tier Ops Model:

Different Tenants

Different Application Ops

Different Cloud Automation

and Management

Application Ops (Provided by Tenant)

Provisioning. Monitoring. Configuring.

Upgrades. Maintenance.

Infrastructure Ops (Provided by OneCloud infrastructure team)

Network, storage, compute availability. Deliver to SLA.

Tenant/Service Ops (Provided by OneCloud service team)

Common service definitions, SLA, tenant onboarding, tenant management


31 31

Operations Transformation in the Cloud Era

What Changes do I Make?

Automation

New App Architectures

Resource Scaling

Service Orientation

Self-Service On-Demand Provisioning

Pe

op

le

Pro

ces

s

Org

an

iza

tio

n

Go

ve

rnan

ce

Fin

an

cia

l M

an

ag

em

en

t

New Capabilities Driving

Ops Transformation

32 32

New Capabilities Driving Ops Transformation

Source - VMware 2013 CloudOps Transformation Benchmark

Q: To what extent has each new cloud capability you have implemented

been the reason you changed your IT operations?

Forcing Functions

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

N = 178

33 33

Most Common Ops Transformation Points


Percentage of Respondents That

Have Made These Changes

53%

43%

38%

38%

35%

34%

33%

33%

33%

32%

Modified existing roles

Combined existing roles into new role

Increased transparency of IT prices

BU's agree to standard services

Standardizing configurations and processes

Proactive mgmt of changing conditions

Certify new service before adding to catalog

Created a single core cloud team

Price to enable comparison w/ external service

Marked up costs on top of per-use service N = 178

Average # of Transformation points = 6.2

Pillar

People

People

Financial Management

Governance

Process

Process

Process

Org Structure



34 34

Role Shift

60% 75%

Server Virtualization

admins will take on

network and storage

admin responsibilities

IT admins will have

to broaden their

expertise to include

computer, storage

and network

Source - VMware 2013 CloudOps Transformation Benchmark Source – Insights from VMware 2013 IT as a Service Journey Survey

9%

28%

29%

43%

53%

Added New Roles

Ops Roles - MoreProgramming Skills

Ops Roles - MoreAbstracted

Combined Exisiting Roles

Modified Existing Roles

Q: What changes to roles and responsibilities

were made with new cloud capabilities?

Server

Storage Network

N = 178

35 35

Org Changes

24%

29%

30%

30%

33%

Group to deploy/manage cloud environment

Pulled resources from functional groups

New customer-facing team

Created multiple new cloud teams

Created single core cloud team


Q: What changes to organizational structure were implemented

when deploying new cloud capabilities?

N = 178

36 36

Return on Operations Transformation Investment

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)

ROI by Number of Ops Transformation Points

Confidential

Total possible = 25.

N = 178


37 37


Key Finding – Ops Transformation Multiplies Technology Investment

Cost: Temporary test/dev workloads, High availability production workloads

Quality: MTBF, MTTR

Control: Number of IT processes that are standardized and predictable

Agility: Time to get from a new idea to a new capability

Agility: Time to provision a new test/dev environment

Number of automated IT processes

Benefit

Requires Ops

Transformation

Requires

Architecture

Transformation

Ops or

Technology

38 38

# VMs with BC/DR

% of SLAs Met by IT

# of Incidents

Time - Provision Additional Capacity

# VMs With Standard Config

Ops effort - Deploy/Maintain VMs

$$ per GP Instance

Business Satisfaction with IT

# IT Processes Automated

84%

78%

67%

Benefits

IT Responsiveness to Requests

Dev effort – Deploy/Maintain VMs

IT Prod

69% Time Dedicated to BC/DR

84%

81%

72%

63%

Biz Prod

% With Improvement Degree of Improvement

38%

41%

41%

43%

Efficiency

86%

82%

63%

78%

$$ per High Trust Instance 68% 73% 34% 79%

$$ Generated by LOB

# Workloads Auto Provisioned

75%

67%

88%

42%

52%

37%

39%

54%

26%

47%

70%

57%

21%

37%

84%

77%

90%

53%

71%

ITaaS

Downtime of Tier 1 apps

38%

71%

69%

55%

52%

72%

62%

76%

63%

60%

54%

75%

72%

83%

73%

79%

65%

74%

32%

56%

61%

42%

35%

41% Control

Agility

85%

39 39

Net Ops Transformation Recommendations


Phase III Phase II Phase I


Shift thinking

– From focus on VM

- To Application

• Provisioning speed

• Service quality

• Ops automation

Shift thinking

- From focus on service

quality

- To business outcomes

• Un-bound process

• Process automation

• Invest in Agility

Shift thinking

– From focus on

custom, work after

service request

- To standard service,

before service request

• Self-service, on

demand ITSM

• Free up resources

for innovation

• Say “Yes” to more

business requests

40 40

IT as a Service - Additional Resources

OPT5489 – Pivot from Public Cloud to Private Cloud with vCloud

and Puppet

Mon 5:00 – 6:00p

OPT5194 – Moving Enterprise Application Dev/Test to VMware’s

Private Cloud - Operations Transformation

REPEAT Wed 3:30 – 4:30p

OPT1002-GD – Group Discussion same topic

Wed 11:00 -12:00p

OPT5705 – Panel - Balancing Agility with Standardization

Tues 2:30 – 3:30p

OPT5315 – Panel - Transform IT to a Service Broker (With VMware

VP Infrastructure and Ops)

Wed 11:30 – 12:30p

41

Other VMware Activities Related to This Session

Group Discussions:

OPT1003-GD

Cloud Lifecycle Services with Rohan Kalra

OPT5656

THANK YOU

VMware Customer Journey - Where Are We with

ITaaS and Ops Transformation in the Cloud Era

Mike Hulme, VMware

Kurt Milne, VMware

OPT5656

#OPT5656

VMworld 2013: VMware Customer Journey - Where Are We with ITaaS and Ops Transformation in the Cloud...

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Transcript of VMworld 2013: VMware Customer Journey - Where Are We with ITaaS and Ops Transformation in the Cloud...