The Role of Cloud Computing In Your Data Center Strategy

Data Center Decisions
“Cloud Computing”

Jeff Gilmer
Senior Partner
612.978.4493
jgilmer@excipio.net 1
© 2011 Excipio Consulting, LLC. All Rights Reserved. This document is proprietary and confidential and may not be duplicated,
redistributed, or displayed to any other party without the expressed written permission of Excipio.

Cloud Computing Introduction
Agenda
1) Cloud Computing Today
o Trends

2) What is Cloud Computing

3) Public versus Private Cloud

4) Can we move our entire Data Center to the Cloud?

5) What can we move to the Cloud?

6) Where do we need to be prior to migrating?

7) When is our current situation better than the Cloud?

2

Cloud Computing Trends
Trend 1: Industry Acceptance
“ According to a recent report from
Gartner Group, public cloud services
spending is expected to grow four times
faster than overall IT spending, reaching
nearly $177 billion by 2015.”

“The global market for “cloud computing”
….for services delivered over the Internet…..
is going to increase from about $41 billion in
2011 to $241 billion in 2020, according to
new estimates from research firm Forrester.”

“IDC said the most significant driver of storage
consumption over the past three years has
been the emergence of public cloud-based
application and infrastructure providers.
(iTunes, Netflix, YouTube, Facebook)”….
3

Cloud Computing Trends
Trend 2: New Technologies

Business and Enterprise data center services are always changing with the
adoption of new technologies. The technologies with the highest levels of
adoption in today’s corporate data centers are:

1) Virtual Processing (72.9%)
2) Web Applications (70.4%)
3) Automation (54.8%)
4) Cluster Computing (50.0%)
5) Cloud Computing (14.9%)

Surprisingly, there is a significant rejection of Cloud Computing at this point
(only 14.9% of all data centers have adopted), yet this technology has been
considered by an additional 46.3%, but never implemented.

These are very interesting figures as Cloud Computing gets all the press and
hype but the reality is the adoption rate among corporate companies still lags
more traditional and proven technologies.

4

Survey Question

Have you looked at any potential cloud solutions for
your Organization?

1) Yes
2) No
3) In Process

5

Data Center Services Maturity Model

As the Data Center Services mature, the ability to provide services on
an “As Needed” basis to the end user client maximizes efficiencies
and is typically more cost effective.

Collocation Managed Outsource Cloud

Basic Services Advanced Services

6

Data Center Services

“Services are Sourced”

Solutions are
deployed
as a type of
service.

Cultural Aspects are commonly one of the more difficult objections
7

What is Cloud Computing?
“Services are Sourced via the Internet”

Solutions are deployed “On Demand” with “Pay as you go” type of service via the Internet
NOTE: There are no standard industry common components to “Cloud Computing” 8

What is a Public Cloud?

A service provider makes resources, such as applications
and storage, available to the general public over the Internet.
Public cloud services may be free or offered on a pay-per-
usage model.

Primary Benefits:

• Easy and efficient set-up because hardware, application
and bandwidth costs are covered by the provider.

• Scalability to meet needs.

• No wasted resources because you pay for what you use.

9

Public Cloud Options

Open Public Cloud:

A highly-scalable, cost-effective solution with an easy-to-use
Client interface which provides capacity needs on demand.
The Clients use the service providers virtual infrastructure and
platforms as their cloud computing solutions.

Custom (Dedicated) Public Cloud:

Customers can use provider previously developed cloud services
for other customers and then leverage this for their cloud
environment. However, the Cloud components are dedicated to
the Client and provide a higher level of security.

10

What is a Private Cloud?

A private cloud, which is a
proprietary network for the Client
and/or data center which provides
cloud computing technologies.

• On Demand Capabilities ABC Company
• Virtualization
• Shared Resources
• Dedicated Cloud Solution
• Allows for specific requirements
• Must still invest in capital
• Management of infrastructure
• Not an optimized use of assets

“A private cloud is specifically for the
organization it serves.”

11

Can we move our entire
Data Center to the Cloud?
Chances of Success: Yes Sometimes: (Case by Case)
• Technically • Cost Reduction
• Automated Product Updates • Interoperability
• Maintaining Current • Internal to the organization
Technology • External organizations and client base
• Flexibility

Not Likely:
• Security
• Data Handling
• Regulatory
• Latency

It is really secure?

12

What are the Key Business Criteria?

Why do we like Cloud services?
• End User Transparency
• Flexibility and Mobility
• Accessibility to Documents
• Integration both Internally and Externally
• On Demand Services ability to add and subtract users quickly
• Cost Effective, ease of use and maturity
• Disaster Recovery

13

What are the Key Assessment Components?

Some key metrics include the “User Profile”, Data Center,
Network, Electronic Mail and potentially Telecom.

Items removed due to Client Confidentiality

NOTE: This example is based upon a Messaging Cloud Assessment 14

What are the Key Assessment Components?


“Additional Key components
are the server environment,
data repository, storage and
support/service desk metrics.”

15

What can we move to the Cloud?

Supportability Features Functions Security

User password Synchronization

Document Management Sites
IT Staff Training Required

Spreadsheet functionality
Offline Synchronization
Management Interface

Staffing Requirements

Calendar Functionailty
Customer Familiarity

Shared Documents

SSL Requirements
Web Conferencing

Instant Messaging
Mobile Messaging
Options

Shared Calendars

Unified Messaging
Word Processing
Tranistion Time

Single Sign On

Data Security
Accessibility

Email Client
Uptime SLA
Support

Spam

Voice
Email
Option 1 - On Premise MS Product
Option 2A - Office 365 with Web Office
Option 2B - Office 365 with Office Pro
Option 3 - Google Apps

Services which typically fit the cloud environment are:
• Standardized
• Commoditized
• Mature

16

Where do we need to be prior to
migrating to the Cloud?

A complete understanding of the current Components, Applications
and Costs to deliver the specific Business Service.


“The final costs need to be in a common metric for
comparison purposes and in business terms.”
17

When is our current situation
better than the Cloud?

Internet Access
• Must have connectivity

Applications
• Latency is an issue
• Virtualization requirements

Data Handling
• Compliancy
• Security
• Regulatory

18

Sample Client Results
“Cloud computing has been producing Client savings.”

On Premise
Office 365 Office 365
Description Current State Microsoft
&Web Office & Office Pro
Solution
General End User Applications Baseline Option 1 Option 2A Option 2B
Average Annual Savings -$21,244 $164,274 $125,299
Annual Cost Per User (2000 users) $463 $474 $381 $401
Monthly Cost Per User (2000 users) $38.60 $39.49 $31.76 $33.38
Percentage Savings 2% -18% -14%

On Premise
Office 365 Office 365
Description Current State Microsoft Google Apps
&Web Office & Office Pro
Solution
General End User Applications Baseline Option 1 Option 2A Option 2B Option 3
Average Annual Savings $164,222 $349,740 $310,764 $662,763
Annual Cost Per User (2000 users) $684 $602 $509 $528 $352
Monthly Cost Per User (2000 users) $56.98 $50.14 $42.41 $44.03 $29.36
Percentage Savings -12% -26% -23% -48%

19

Thank You
Questions & Answers

20

Excipio Consulting Organization
Who We Are – Overview
Excipio Consulting has experts with many years of IT experience. They
perform a wide variety of IT/IS assessments for organizations. This includes,
Desktop, Network and Service Desk Management, Data Center operations
and facilities, Application evaluation and integration, Shared Services Catalogs
and Cost Models along with client RFP creation and vendor analysis.

Specific to Data Centers, Excipio has completed over 400 Data Center
assessments in the last 30 months, for both public and private organizations
ranging in size from 350 to over 100,000 employees.

This includes organizations such as the States of Minnesota, Washington,
Michigan and Pennsylvania, private companies of US Bank, Carlson
Companies, MD Anderson, Baxter Labs, Lowes and others.

Excipio helps clients focus on assessing growth, capacity, consolidation, risk
and financial benefits related to operating your own data center or location of
your equipment with an external partner. Key evaluation topics focus on the
most effective and efficient ways to understand and determine your future
Data Center strategic “Road Map”.
21

The Role of Cloud Computing In Your Data Center Strategy

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