Many people think Private Cloud is all about technology. At Harbour MSP, we have been delivering Private Cloud solutions in our Data Centres in Sydney, Melbourne, Singapore and Shanghai for years - and we beg to differ. Its about people, process, systems and security [amongst other things!].
1. Private Cloud
Forum
22nd November 2011
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2. The Harbour MSP
definition of Private Cloud Computing
Its NOT just about technology.
“ … series of sharing technologies,
designs and operational processes
that enable organisations to
reduce cost, enhance reliability
react to business change faster
than traditional IT ever could …“
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3. Today is about sharing 4 years experiences in Private Cloud
Introductions and definitions
Case Study One
Australian engineering firm - needing a Private Cloud that is reliable and
flexible
Case Study Two
SaaS provider – looking for a Private Cloud on which to place its own
customers – so the Private Cloud must be agile, affordable and secure
Case Study Three
One of the world’s leading software and technology services companies,
looking to design and sign off business case for private cloud in just 23 days!
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4. Cloud take up Expected cloud
TODAY take up
43% 80+%
in 2011 in 2016
Australian IT departments that Australian IT departments
use a cloud service today that expect to use a cloud service
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5. Cloud models Cloud examples
Software Rent the
as a software
service
“SaaS”
Platform Rent the
as a middleware
service
“PaaS”
Infrastructure Rent the Public Hybrid Private
as a service IT infrastructure
Completely Mix of shared Completely
“IaaS” shared & dedicated dedicated
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6. Its not just about the technology
Enablers Delivering
Technologies Reliability
Design techniques Security
Operational processes Agility
Governance Affordability
Commercial practices Flexibility
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7. What’s the right type of Cloud for your organisation?
Reliability Private
Public Least Most
Security Private
Least Most
Public
Agility Private
Least Most
Public
Affordability Private
Public
Least Most
Flexibility Private
Least Most
Public
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8. What’s the right type
of Cloud for you?
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9. case study 1
CASE STUDY ONE -
A Private Cloud for a major engineering firm
CLIENT: a major engineering firm
SITUATION:
Rollout of Oracle eBusiness
SOLUTION:
Private Cloud environment from
Harbour MSP
BENEFITS:
Private Cloud: Reliability and Flexibility
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10. case study 1
Reliability is everything on a 6-figure per day at-risk project
Project drivers Internal team ? Managed Service/Outsource ?
Design Highly capable generalists Specialists
Build Best efforts SLA - backed
Operate
• Incident resolution Best efforts 60 minute
• Indian operating hrs Bus. hrs: 8am – 6pm 24 hrs x 365
• SLA Best efforts SLA - backed
Development costs Cost drivers Cost drivers
•$10’s of mill • Incremental FTE 24x7 • Fixed cost <$1.0m p.a.
•$6-figures per day • Uncapped • Capped incident costs
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11. case study 1
Flexibility is vital in a complex business environment
151 151 151 151
Future
Virtual machine capacity
101
77 77 77 77 77
59 Original plan 61
43
28
Actual
16
Jan April June Oct Jan April June Oct
2011 2011 2011 2011 2012 2012 2012 2012
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12. case study 2
CASE STUDY TWO
CLIENT: Global SaaS provider
SITUATION:
First deployment of on-demand private
cloud outside the its USA operations.
SOLUTION:
Harbour MSP Private Cloud
BENEFITS:
Private Cloud: Reliability and Flexibility
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13. A common services architecture to minimise cost
and shorten delivery
Tenant 1 Tenant 2 Tenant N
Connectivity
resources
Network
resources
Compute
resources
Storage
resources
Back-up
resources
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14. case study 2
Minimising cost and speeding up delivery for multiple tenants
Tenant 1 Tenant 2 Tenant 3 Tenant N
1
Connectivity Multi-carrier DR WAN
resources internet
Network 2 Firewall VPN head end Load-balancing SSL
resources
3 Configure Dedicated compute per tenant
Compute
resources Patching
Anti-virus
4
Storage High IO Replication Online back up
resources disk
5
Back-up Tape De-dupe Encryption Off-site Recover
resources
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15. case study 2
Managing complexity drives standards and governance
2008 2011
First time a Data Centre/Cloud Design standards
provision was outsourced
Significant changes for all teams
ITIL process standards and
governance service interface
Controlling change when its easy
to change Specialisation, expertise and role
Increasing complexity of trouble standards
shooting
Security standards
Mission critical customer
environments
Capacity: New tenant per 6 – 9 months Capacity: New tenant per months
Delivery: 3 month per tenant Delivery: 2 to 3 week run up
Availability: > 99.999% to date
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16. case study 2
Managing the security and compliance monster
Key learnings
Application Be very clear on what you are compliant to and to what extent
Database
Focus on your core capabilities – avoid the temptation to push
resources where they are not specialists
Operating
system
Invest the time in understanding the required controls and how they
Network apply to your business … they look harder than they are
WAN Invest in systems and processes that are not reliant on individuals
retaining information
Internet
Remember your auditor is human … make it easy for them to pass
your environment
Physical
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17. case study 3
CASE STUDY THREE
CLIENT: One of the world’s leading
software and technology services
companies,
SITUATION:
Asian product launch
SOLUTION:
Design and business case sign off in just
23 days!
PRIVATE CLOUD BENEFITS:
Agility and Affordability
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18. case study 3
Get YOUR Private Cloud environment up and
running in just 4 steps …
STEP STEP STEP STEP
1 2 3 4
Define the Define the What sort Migration
starting service of Private plan
point levels Cloud
inventory am I ?
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19. How do you want to charge your STEP
business units ? 1
Traditional inventory Resource based pricing …. and a forward price
Sum of Virtual machine profiles PRICE TODAY
• Internet capacity • Virtual 1 4GB – 1vCore $opex/machine
CHARGABLE to
• Telecoms links • Virtual 2 8GB – 1vCore $opex/machine Business UNITS
• Ethernet switches • Virtual 3 8GB – 2vCore $opex/machine
• Firewalls • Virtual 4 16GB – 1vCore $opex/machine
• Load-balancers • Virtual 5 16GB – 1vCore $opex/machine
• Intrusion prevention • Virtual 6 32GB – 12vCore $opex/machine
• Web servers Physical machine profile
• Application servers • Physical 1 8GB – 8Core $opex/machine
• Data base servers • Physical 2 48GB – 12Core $opex/machine
• Hypervisors • Physical 3 128GB – 32Core $opex/machine FUTURE PRICE
• Fibre switches
• Storage appliance Locked in volume
Storage and back up
• Tape back-ups discount price
• Storage 1 fast disk $/TB
• Colocation racks
• Backup 1 tape $/TB
• Backup 2 disk $/TB
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20. What does your business expect STEP
from you? 2
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21. How do you want to operate ? STEP
Bring your own? or lease from us ? 3
Where needed help.
Own your own equipment Lease a utility service
Fully Partial Partial Fully
Break fix Break fix
managed managed managed managed
Connectivity
resources
Network
resources
Middleware
resources
Compute
resources
Storage
resources
Back up
resources
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22. How do you want to operate ? STEP
Bring your own? or lease from us ? 3
Where needed help.
Own your own equipment Lease a utility service
Fully Partial Partial Fully
Break fix Break fix
managed managed managed managed
Connectivity
resources
Network
resources
Middleware
resources
Compute
resources
Storage
resources
Back up
resources
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23. How do you want to operate ? STEP
Bring your own? or lease from us ? 3
Where needed help.
Own your own equipment Lease a utility service
Fully Partial Partial Fully
Break fix Break fix
managed managed managed managed
Connectivity
resources
Network
resources
Middleware
resources
Compute
resources
Storage
resources
Back up
resources
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24. How do you want to operate ? STEP
Bring your own? or lease from us ? 3
Where another example needed help.
Own your own equipment Lease a utility service
Fully Partial Partial Fully
Break fix Break fix
managed managed managed managed
Connectivity
resources
Network
resources
Middleware
resources
Compute
resources
Storage
resources
Back up
resources
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25. How do you want to migrate? STEP
4
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26. Conclusion STEP
5
STEP 5 is to get to the detail.
Harbour MSP can help.
In our experience the very best way to do this is for us to run a 2-
hour workshop.
Get your best people and our best people in a room with a
whiteboard and our planning templates.
The key deliverable being a roadmap document
defining, specifying and pricing your optimal Private Cloud
infrastructure.
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We agree on the models but, we’re not so convinced with Industry focus on just the technology. We believe that Private cloud is a combination of technologies, design and operational processes, governance and commercial practicesthat when used togetherEnable organisations to enhance reliability and security, reduce cost and be more agile so they can react to business change faster than traditional IT ever couldThe rational for this is that while server virtualisation as a technology has attribute improve reliability, reliability is only improved if you have the operational procedures and governance to go with the infrastructure.Similarly, server virtualisation enables fast provisioning which is only useful if you have a contract and operational processes that let you take advantage of that function … and in fact can negatively impact reliability if an environment is allowed to be changed without sensible processes and governance.
We also believe that all organisations are different.Some organisation suite PRIVATE … some suit PUBLIC. By the way, we don’t have any religious beliefs that Public clouds are bad … its just something that we don’t do as a business.However, in discussions with enterprise customers, we find that organisations that go down the Private Cloud tend to want the highest levels of reliability and security … from a security perspective they have often have compliance requirementswith improved agility and affordability and theConversely organisations that go down the Public path are looking for good levels of reliability and security but cost reduction or agility requirement over-ride reliability and security.But the most important factor is that PRIVATE TYPE organisations want FLEXIBILITY to design, build and operate the environment to their requirements in their own way.
CASE STUDY ONE)- “The Client” is a leading engineering projects firm, with global capability in strategic consulting, engineering and project delivery. - Operates in 3 major regions - Asia Pacific, the Americas and EMEA - 6,500 people in 40 offices - The project was to consolidate 100+ disparate applications under the Oracle E-business suite of applications. The platform comprising some 100 Virtual machines and 30 plus Terra Bytes of storage was required to take them through 15 months of development and into a globally available production ready platform. - The challenge was to create an environment which was available 24x7, could easily scale up and down to meet varying demands of a complex development project and met approved budgets.
Environment uptime was paramount. Downtime would result in substantial losses - up to 6 figures per day in lost productivity and would compromise the timelines for project completion. The entire development cost on a project like this was estimated at over $30million. If we step back for a moment, there is a decision point here for “The Client” – and they need to decide: “Do we execute in-house ? or do we oustource??”. It’s a good question …. Enterprise IT departments are very good [pretty much anybody can build and operate these things] but when it comes to an in-house team compared to outsourced – our experience shows that: In-house team’s suffer a lack of focus: The risk of delay and/or failure with an in house team is high. They simply cannot build the infrastructure as quickly due to a lack of focus. In this example, Harbour had just a 5-week build time for “The Client”; which got us up and running very quickly.Limited hours for implementation: The in-house team will provide limited hours of coverage; its “best efforts” and it is difficult to impose SLA’s – the in-house team will try their hardest, but can seldom guarantee an outcome. In an outsourced environment, you are “guaranteeing an outcome”. Limited hours for Incident management: business hours vs. 24/7 coverage. High risk of budget blow outs: Cap your risk; the hosting bill is such a small portion of the whole project – don’t risk the cost of delay or cost of downtime.
This slide demonstrates the flexibility of the private cloud infrastructure over time.“The Client” requested a varying capacity over the term of the project – at any point they could “go on hold” [or indeed scale up ...!] They did not want to spend at a high burn rate, especially at the beginning. Indeed, large environments were switched on and off as the project ebbed and flowed.We clearly understood the need for FLEXIBILITY and they only wanted to pay for only what they used …Over time, we found that we could actually predict what “The Client”’s capacity requirements would be .. which helped understand the ebbs and flows better too.Affordability:Near-second response times at a fixed monthly cost ? If something went wrong, “The Client” is guaranteed that someone will be attending to the issue. 3 people were pinged on their phone – all for a fixed monthly price; no effect on the payroll, no need to hire an expert in routers, unix to fix a problem etc. The cost of failure to “The Client” was $100k per day.They outsourced the ITIL setup and governance. Reliability: The Harbour Service Delivery Team were pegged with delivering near second response times. “The Client” couldn’t get that level of responsiveness by doing it internally.
They needed to put multiple tenants on … First thing we did was consider the design of the services – to create common serves where we could.Telecoms services Networking services Dedicated compute layerCommon storageCommon backupWe’re trying to leverage technical elements within the architecture n order to keep the costs down as much as possibleAt the same time meeting compliance and regulatory obligationsEconomies of scale. The COMMON Services Architecture supports multiple apps – Its all done through a cookie cutter approach – with consideration given to each application during the build cycle.WE have built – for The Client – a platform onto which they can quickly get a new client into existence.To do this without the existence of the platform would take 5-6 months .. we can do these things now in 4weeks – sometimes less. We now understand the The Client’s configuration governance and security issues better than they do !
As a potted history, in 2008 we started with The Client - working through what was essentially a chaotic environment. There was so much complexity, we were drowning in it – much as the customer themselves were in their other DCs. Our only way to survive this was to create standards and procedures. Everything from standardising on hardware and software platforms; the tools and processes we re-use. There was no “blueprint” for us to follow. We needed to get the client to re-think what they had forgotten. We’ve created our own design standards and disciplines. From carnage to professionally documented, well managed modular and structured architecture. Can’t do both –building and managing infrastructure AND maintaining applications as well. We’ve stopped clients wrecking their own environs because we’ve seen others do it .. [we have experience and grey hair] Develop operational scripts … as much automation as possible Professional Release Management – it’s all about managing RISK. Governance and the service interface does give us a common view. Typically – there’s a lot of protectionism – lots of conflicts of interests internally. But what polarises us is that we have a contract with SLAs. We’ve come from chaos to specialism Generalist vs Specialist – we have the experience due to the economies of scale. Controlling change when it’s too easy to make changes – the SAN database and project governance Managing security and compliance – managing the locking down of systems and processesSTATS:In 2008 - New client every4-5 monthsIn 2011 – Our forecast shows that we can cope with two per month. DELIVERY TIME:In 2008 – took 12 weeksIn 2011 – takes 2 weeks UPTIME:100%
Case Study Three)CASE STUDY 3 is transaction processing provider for the Financial services, Insurance and Government sectorsCASE STUDY 3 is in the process of launching in the Asian market and needed to get a design, price-point and performance that would meet their business case needs and they needed to do it quickly.What’s interesting about this case is that the design and costing process took 23 day from receipt of RFP to a price being agreed.
What we want to do is take you a 4 prof practical design steps including some of the things that CASE STUDY 3 and other organisations If you’re interested in Private Cloud, you can follow these design steps Step 1 - Define your starting point – what is your presentinventoryStep 2 - Traditional system design – what are your availability, recovery, capacity requirementsStep 3 - what sort of private cloud How much sharing do you want – what assets can be shared How much do you want to do yourself … how much do you want to outsource – leads in to our selective outsource story How do you want to consume services – leads in to our flexible pricing and billing on a per resource basis and opex vs. capexStep 4 - How do you want to migrate?
BUSINESS FRIENDLY PRICING - CASE STUDY 3 wanted pricing that could be understood by the rest of the business and charged back to the business and in CASE STUDY 3 case their customers.Traditionally, design and costing is undertaken as a inventory or bill of materials which doesn’t really mean much to anyone outside of the design team.RESOURCE INVENTORY - The approach CASE STUDY 3 and many organisations that we meet are taking is to develop an inventory of requirements at a resource level … or what does the application need?In the CASE STUDY 3 example, they had 6 standard virtual machine profiles, 3 physical machine profiles, 1 storage and 2 back up options. We provided a price per unit includes all of the inputs – for example in virtual machine 1 includes an allocation of power, space, hardware, support for all of the networking and servers resources consumed by the virtual machine.FAST DESIGN - And because we use standard models to translate demand into a design … so that the design and cost phase is significantly quicker.FAST PRICING - So every time they deployed a new customer … or grew a customer, they don’t have to do a redesign … and pricing their service becomes very easy … similarly billing their customers is easy.FORWARD PRICING - Also, they can model what their future cost will be as they expand their platform … and can make forward pricing decisions to reach an economy of scale.
CASE STUDY 3 was also very good at describing theirrequirements at a high level in terms off what were their business outcomes … and avoided defining This made it much faster to decode requirements and design solution using best practice.
One thing that many of the customers comment of is that there is now more choice in terms of the financial structure and and support model you can get from CloudTraditionally, outsourcing was an all of nothing situation which really put a lot of organisation off. We find many organisations like to selectively outsource where it gives them an economic advantage or helps them to offer better support.Some of the options are:Financial – lease a cloud service … or own your own equipmentSupport – pick the support you want on a case by case basis from hardware break fix to partial management to full managementMix and match – can I mix a combination of ownership model and supportIf you look at case study 3 … they wanted:Financially – ability to onward charge their customersSupport – they need in theatre support so went for the fully managed support model
Finally … that old bear of migrationThere are a number of very good tools available for migration subject to your circumstances …. If organisations have a good view on their requirements, we can usually find a migration approach that will work.