Companies that rely on enforcing Service Level Agreements (SLAs) from their Cloud Service Providers to manage the performance of their cloud applications are increasingly discovering that they are failing to meet their business objectives. The reality is that by the time an SLA has been missed, your end users and customers have already been severely impacted, resulting in poor adoption and missed revenue opportunities. Successful cloud deployments require real-time visibility of application performance and service level trends across the entire delivery chain – from first mile (your data center) to last mile (your users). This insures that companies are able to detect problems anywhere in the delivery chain, before end users, customers, and your business are impacted. This webinar will provide evidence of the revenue impact of poor cloud application performance and service level management, and will present an integrated cross-domain services and application performance management strategy that will dramatically improve the business results that you achieve with Cloud Computing. The information will be of use to anyone who is responsible for the successful execution of their company’s cloud strategy, both in the line-of-business and IT. Dennis Drogseth, Vice President, Enterprise Management Associates, Inc and Richard Stone, Compuware’s Cloud Solutions Manager talk about: • Research results showing how and where companies are benefitting most, and conversely where they’ve had issues, or had to rethink and redirect their cloud initiatives • Best practices to adopt – and pitfalls to avoid – that will enable you to get cloud deployments right the first time from both a process and an APM perspective

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3. Best Practices in Optimizing the
Cloud Ecosystem
Dennis Drogseth
Vice President
Enterprise Management Associates
April 28, 2011
© 2011 Enterprise Management Associates, Inc.

4. Agenda
• Patterns of Cloud adoption
• Gains, benefits and issues
• Best Practice Number One
• Changes, changes, changes
• Cloud as a catalyst
• SLM in Cloud adoptions (internal and external)
• Best Practice Number Two
• Best Practice Number Three
• Why SLM and UEM is good for you anyway
• A Brave New World?
• Best Practice Number Four
• Best Practice Number Five
• Conclusion
Slide 4 © 2011 Enterprise Management Associates, Inc.

5. Demographics for “Operationalizing Cloud”
• 250 employees and above with 50%
at 10,000 or more and 26% at
20,000 or more
• But 27% had fewer than 2,500
• 26% C-level, 57% director-level and
above
• Leading verticals: Financial Services,
Healthcare, Manufacturing, and
Government
• 66% U.S., 17% EMEA, 16% APAC
• IT budgets range from 7% less than
$1 million to 16% more than $100
million
• 60% of IT budgets rose and only
17% decreased compared with a
45% decrease in 2009.
Source: Enterprise Management Associates
Slide 5 © 2011 Enterprise Management Associates, Inc.

6. Patterns of Cloud Adoption: 2009-
2011
Slide 6 © 2011 Enterprise Management Associates, Inc.

7. A Few Meteorological Trends
• 33% viewed Cloud as essential – up
5% from last year.
• 32% as important up 12% from last
year
• SaaS grew to be present in 77% of
environments, up 10%
• PaaS and IaaS were relatively flat at
39% penetration
• Completely satisfied is up 8% to 37%
and
• Somewhat satisfied is flat at 54%
• Only 1% is somewhat dissatisfied
Slide 7 © 2011 Enterprise Management Associates, Inc.

8. Hybrid Environments Still Dominate with Private
Cloud Leading Public Significantly
In terms of your organization’s Cloud deployments, which
statement best describes what stage your organization is at today?
Mostly internal / private cloud 36%
About half and half internal / external 27%
Mostly external / public or community cloud 17%
Completely internal / private cloud 15%
Completely external / public or community cloud 5%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Sample Size = 155 Column %
Slide 8 © 2011 Enterprise Management Associates, Inc.

9. BEST PRACTICE 1: KNOW why you’re going to Cloud in
the first place and get agreement on your top objectives
• Capital expense savings
• Faster time to deploy existing services
• Operational expense savings
• Faster time to create new services
• Reduced complexity of IT
management
• Enable disaster recovery/
business continuity
• Improved service resilience/ performance
• Resources freed for strategic work
• Business model enhancements and revenue generation
Slide 9 © 2011 Enterprise Management Associates, Inc.

10. 7 Barriers to Cloud Adoption
1. Difficulty or cost of implementation, migration, or integration
2. Human/political issues (no management support, difficulty with
provider, unclear responsibilities, etc.)
3. Lack of flexibility and agility (e.g. fixed offerings, vendor lock-in,
no API standards, etc.)
4. Degraded or uncertain regulatory
compliance posture
5. Degraded security and/or risk
outcomes
6. Increased operational costs of
IT management
7. Inadequate tools or processes
for effective IT management
Slide 10 © 2011 Enterprise Management Associates, Inc.

11. Changes, Changes, Changes…
Slide 11 © 2011 Enterprise Management Associates, Inc.

12. 70% of Respondents have had to RETHINK or
REDIRECT Initial Deployments
Q32_1 Do you believe, or did you discover, that once begun, Cloud
initiatives required rethinking and/or redirection before the...
Yes 70%
No 21%
Don’t know 8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sample Size = 155 Column %
Slide 12 © 2011 Enterprise Management Associates, Inc.

13. Business Dialog and X Domain Emerge as
Most Dominant Change-related Trends
In the past 2 years, which organizational or process change is
the single most dominant impact your organization experien...
IT became more engaged with its business clients 27%
Moved towards a more cross-domain
20%
management focus
Re-evaluated how we work with service providers 15%
We have not experienced any organizational or
13%
process changes
Operations took back control of initial cloud
7%
service deployments
Adapted ITIL disciplines and best practices 7%
IT became less engaged with its business clients 6%
Moved away from ITIL disciplines and best
3%
practices
Other (Please specify) 1%
0% 5% 10% 15% 20% 25% 30%
Sample Size = 155
Column %
Slide 13 © 2011 Enterprise Management Associates, Inc.

14. IT Organizations Without SLM are More than 1.6
Times More Likely to Show Flat/Declining Budgets
What was the percentage increase or decrease of your organization’s annual
IT budget from last year to this year? Grouped by Service level management
With Service level Management Without Service level Management
Title
29.73%
48.53%
51.47%
70.27%
Increased Flat/Decreased Increased Flat/Decreased
Sample Size = 142
Slide 14 © 2011 Enterprise Management Associates, Inc.

15. But SP SLAs May not Always Smell Like a Rose
• Written by and for LAWYERS
• Designed to protect the Service Provider first and foremost (Cloud
is no exception)
• SLAs are too often defined but what’s easily measureable and
controlled and internal to the SP (not what’s business-relevant)
• The MYTH of INVISIBILITY and why it’s bad for YOU
• Cloud is supposed to be about flexibility- but contracts impose
rigidity
• Is your Cloud SP a Partner?
• Or are they really just a
Commodity?
Slide 15 © 2011 Enterprise Management Associates, Inc.

16. BEST PRACTICE 2: Manage ACTUAL service
levels, not just the SLAs the SP finds convenient
Server Network
• CPU utilization • Buffer miss ratio
• CPU imbalance • Buffer utilization
• Disk I/ O faults • CPU utilization
• File cache miss rate • Line utilization
• Paging • Faults
• Swapping • Discard
• Virtual memory utilization • Latency
• Physical memory utilization • Network errors
• Allocation failures • Error rate
• System partition utilization • Packet loss
• User partition utilization • Percent of frames delivered (frame
relay network)
*Metrics taken from actual SLAs between service providers and end users.
Slide 16 © 2011 Enterprise Management Associates, Inc.

17. Some Key Metrics for Assessing the Performance
and Impact of Cloud Services
Which metrics is your org using/plans to use to monitor the
performance of Cloud services? Select all that apply.
Cloud service utilization 50%
System or application availability (i.e. uptime) 49%
Overall application response time 48%
Network infrastructure performance 43%
Security, risk, compliance, and data integrity
43%
measurement
Client-based transaction response time 37%
Server-based transaction response time 35%
Storage system I/O or response time 31%
Service response time across multiple
29%
transactions
0% 10% 20% 30% 40% 50% 60%
Sample Size = 155
% Valid Cases (Mentions / Valid Cases)
Slide 17 © 2011 Enterprise Management Associates, Inc.

18. Service Level Management can Nevertheless
Accelerate the Values Achieved from Cloud
SLM best in most areas but especially:
• 1.3 times more likely to reduce operational costs via Cloud
• 1.4 times more likely to improve service resilience via Cloud
• 1.5 times more likely to accelerate deployment of new services via
Cloud
• 1.5 times more likely to increase infrastructure flexibility via Cloud
• 1.8 times more likely to expand revenue channels via Cloud
Slide 18 © 2011 Enterprise Management Associates, Inc.

19. BEST PRACTICE 3: User Experience Management
even more strongly accelerates values from Cloud
• UEM best in ALL areas but especially:
• 1.5 times more likely to reduce complexity of management via Cloud
• 1.4 times more likely to reduce operational costs via Cloud
• 1.4 times more likely to accelerate deployment of existing services via
Cloud
• 1.5 times more likely to increase infrastructure flexibility via Cloud
• 1.8 times more likely to expand revenue channels via Cloud
Slide 19 © 2011 Enterprise Management Associates, Inc.

20. 84% of Business Respondents and 77% of IT
Respondents saw UEM becoming MORE important
Business All Other
11%
5% 21%
2%
77%
84%
more important to our organization.
more important to our organization.
less important to our organization.
less important to our organization.
neither more nor less important to our
neither more nor less important to our organization; organization; it is staying about the same.
it is staying about the same.
Sample Size = 207
Slide 20 © 2011 Enterprise Management Associates, Inc.

21. The Brave New World?
Slide 21 © 2011 Enterprise Management Associates, Inc.

22. BEST PRACTICE 4: Cloud doesn’t nullify
geography (or Pangaea was a long long time ago)
Slide 22 © 2011 Enterprise Management Associates, Inc.

23. BEST PRACTICE 5: Understand the unique
challenges of optimizing your ecosystem
ECOSYSTEMS are:
• Not new with Cloud
• Include partners, service providers,
supply chains, often with distinctive
vertical flavors
• Reshaping “best practices”
• ITIL v.7
• Challenging traditional approaches
for siloed management
Slide 23 © 2011 Enterprise Management Associates, Inc.

24. Conclusion
• Cloud hype and Cloud realities are different
• But Cloud services can nevertheless deliver many core values – so
understand and get agreement on WHY you’re going to Cloud.
• Cloud Service Providers – are still fundamentally Service Providers
and so their SLAs are designed to be SELF PROTECTIVE
• But strong Service Management capabilities – such as SLM and
UEM can pay strong dividends anyway
• Cloud may be revolutionary in some respects, but it can’t to nullify
geography
• Recognize the challenges of participating in an ecosystem – Cloud
or otherwise – in order to optimize your options
Slide 24 © 2011 Enterprise Management Associates, Inc.

25. Questions?
Slide 25 © 2011 Enterprise Management Associates, Inc.

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Simulate hundreds of thousands of concurrent users, or
millions of page views per hour by leveraging Gomez’
network of public Cloud data centers
Run load tests with real IE and FF
browsers or choose from over 500
mobile devices

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45. © 2011 Compuware Corporation — All Rights Reserved