How to Leverage Cloud in your Corporate IT Strategy

How to Utilize Cloud in
your Corporate IT Strategy
Paul Selway
James Smale
Jason Baker
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Redpath Consulting Group confidential and proprietary 2010

Paul brings to Redpath Consulting Group over 25 years of
experience in the consulting industry.
His extensive background and career progression through the
roles IT Management Consultant, Technology Director, and
Principal Partner began from a solid foundation as a Software
Engineer.
His experience was gained from numerous management
consulting engagements for clients in both Europe and North
America; focused on the healthcare, financial, banking,
brokerage, and capital markets industry.
Paul has an International MBA from Henley Business School,
B.S.C Honors Computer Science Degree, Electronics Degree,
and is a Chartered Engineer.
Paul Selway
President
2

James brings to Redpath Consulting Group over 20 years of
experience in business and the IT consulting industry.
His extensive background and career progression through the
roles Sr. Technical Analyst, Technology Director, Business
Entrepreneur and Principal Partner began from a solid
foundation as an IT Infrastructure Engineer.
His experience was gained from numerous management roles
and consulting engagements for clients in both Europe, Asia,
Latin America and North America; focused on software
manufacturing, airline operations, advertising, agriculture,
manufacturing, and health care industries.
James also has extensive experience in operational support
leadership, process improvement, strategic organization planning
and enterprise architecture planning.
James Smale
CEO
3

Jason Baker has over 15 years of experience working with Internet and
telecommunications organizations in Minnesota. As CTO of VISI he
helped architect ReliaCloud, the first public cloud computing platform in
the Upper Midwest. Prior to VISI, he co-founded Digital North and was
the technology leader within the organization. In his capacity as
Director of Operations, Baker helped Digital North expand into multiple
datacenters serving thousands of customers.
During the dot-com era in the late 1990’s, Baker was a key technology
driver and partner at iPares, a multinational dot-com consultancy. Baker
managed the profitable Application Hosting division within the
organization.
Early in his career he joined MEANS Telcom, a regional
telecommunications provider. As a member of their professional
services team he worked closely with businesses during a time when
the Internet was first becoming a useful business tool.
Jason Baker
CTO
4

Our mission is to help our customers leverage enterprise-class cloud
computing technology. We can develop your cloud computing strategy,
technology roadmaps, business value propositions, and cost-benefit analysis.
We can deploy and support your cloud solutions.
We are recognized partners with leading cloud vendors:
-Salesforce.com
-Google
-Visi/Reliacloud
Let us show you how you can leverage the cloud.
www.redpathcg.com
5

ReliaCloud, a product of VISI, is an enterprise-class
cloud designed for businesses and that need dynamic
infrastructure.
- Based in Minneapolis/St. Paul region
- 2 data center locations (SAS 70 Type II)
- 10+ years in data center business
- 24x7x365 live support
www.visi.com
Data Center 1: St. Paul, MN
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 Introduction to IaaS
 What should be considered for an IaaS ROI?
 What makes an IT Infrastructure component a good candidate for IaaS?
 How can an assessment help identify cloud IaaS opportunities?
 What about the organizational change management challenge?
 How do you build a hybrid IT Strategy that includes cloud components?
 How can you create a compelling business case to justify cloud components
in your IT Strategy?
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Cloud Computing is internet based computing, where shared
resources like computer hardware, data, and software packages
are provided on demand as a utility, very much like electricity
is provided from the electricity grid.
Infrastructure as a Service (IaaS) - public cloud
computing customers do not own their hardware
infrastructure, so avoid capital expenditure by renting it
from a cloud provider.
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Characteristics - Cloud users pay for what they use on either a
utility model (like electricity) or a subscription model (like a
newspaper). Low upfront costs to get started.
Economics (ROI) – Low cost to establish, elastic (you can have as
little or as much of it as you want), pay for what you use,
terminate contract therefore avoiding ROI risk and uncertainty.
Architecture - Cloud architectures typically involve multiple
cloud components generally joined together (web services) with
integration points to legacy systems.
10

Standardize
Consolidate
Virtualize
Automate
Self-Service
Centralize
From silos…to Dynamic Data Center and IT as a service
Application
Silos
Zones of
Virtualization
Public
Cloud Services
Apps
Servers
Network
Storage
Private
Cloud Services
Departmental
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Resource Pooling
Broad Network Access Rapid Elasticity
Measured Service
On Demand Self-Service
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Hybrid Clouds
Deployment
Models
Service
Models
Essential
Characteristics
Common
Characteristics
Low Cost Software
Virtualization Service Orientation
Advanced Security
Homogeneity
Massive Scale Resilient Computing
Geographic Distribution

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Private cloud
- Enterprise owned or leased
Community cloud
- Shared by a few organizations
Public cloud
- Shared by the general public
Hybrid cloud
- Shared by several organizations

 Abstraction breaks dependencies
on physical hardware:
 Mobility
 Cloning
 Scalability (up & down)
 Redundancy
 Dynamic provisioning
 Hardened security model
 Utility pricing (“Pay-as-you-go”)
 Formal Service Level Agreements
 Predictable Quality of Service
Horizontal Infrastructure
Applications
Virtualized Dynamic Infrastructure
Service‐Based Holistic Decision
Virtualization‐
Aware Network
Virtualization‐Aware
Unified Fabric
Servers
Virtualized
Storage
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 Cost savings, economic uncertainty, and the CFO
 Security and regulatory requirements
 Accelerated time to delivery
 Elastic resources & scalability
 NEW apps vs. legacy apps
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 11.8 million servers in data centers
 Servers are used at only 15% of their capacity
 800 billion dollars spent yearly on purchasing and maintaining
enterprise software
 80% of enterprise software expenditure is on installation and maintenance of
software
 Data centers typically consume up to 100 times more per square foot than a
typical office building
 Average power consumption per server quadrupled from 2001 to 2006.
 Number of servers doubled from 2001 to 2006

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 Standard 9000 square foot costs $21.3 million to build with
$1 million in electricity costs/year
 Data centers consume 1.5% of our Nation’s electricity,
doubling every 5 years.
 Green technologies can reduce energy costs by 50%
 IT produces 2% of global carbon dioxide emissions

Applications
Upgrade Expense
Large Capital Expense &
High Risk
Automated Upgrades
Value
Time
Cloud Computing
Average 51% ROI
within 12 Months2
53% of software projects cost
189% of original estimate1
Cloud Computing
Value
Value
1 Standish Group, Chaos Report 2006
2 Third‐Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008
Large Operating Expenses
No Capital
Expenses
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Pay-as-you-go
Commodity Hardware Infrastructure
Lower Implementation Costs
Faster provisioning
On demand scalability
Utility pricing
No capital investment
Fast deployment of sandboxes
Improved Service Levels (99.999%)
Simplified billing as expense
Cloud Computing:
40% - 60%
Lower TCO
On Premise = Hidden Costs
Hardware
Consultants
Infrastructure
Dedicated Staff
Upgrades
Licenses
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 Need for on-demand test and development sandboxes
 An application that can be virtualized
 Servers with cyclical demand for scalability
 Email systems
 Storage systems
 Document management systems
 Content management systems
 Archive and redundancy servers
 Training servers
 Demo servers
 “Garage” applications
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 Identify your business architecture
 Identify core business capabilities
 Understand your current technology
architecture
 Build an application inventory
 Build infrastructure inventory
 Identify Total Cost of Ownership (TCO)
 Generate your strategic options:
 Infrastructure lifecycle refreshes?
 Redundant or duplicate infrastructure?
 Infrastructure that can be virtualized?
 Commodity systems that can be moved to the cloud?
 Any quick wins?
 Select your strategies
 Create a hybrid IT strategy roadmap
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23Source: Redpath Consulting Group.

 Should you replace every infrastructure component with the cloud? No
 Use a big bang strategy? No
 Use an incremental phased approach reduce risk? Yes
 Can startups can go directly to the cloud? Yes
 Does “the cloud” have the same meaning for each cloud vendor? No
 Do I have any commodity on premise systems? Probably
 Am I paying for capacity that I am not fully utilizing? Yes
 Can I use cloud components with my on premise IT? Yes
 Can I get similar service levels and quality of service? Yes
 Is the cloud secure? Yes
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 Reduce resistance to change
 Address job security fears
 Provide training and communicate benefits
 Expectation setting
 Address perceived loss of control
 Educate on security model to reduce concerns
 Manage people, process and technology change
 Position better use of IT resources
 Provide communication plan
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 You are probably already using cloud services
 Everyone wants IT to cost less and wants IT when they want IT
 Let your IT staff focus on innovation instead of infrastructure
 Get access to enterprise class systems at a reasonable price
 Are there clouds on your horizon? Yah you betcha….
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Free ½ Day Cloud Strategy Mini-Assessment *
Redpath Consulting Group will provide an experienced cloud strategy
consultant for ½ day to work with your business and IT team to perform an
assessment of your current state and identify cloud computing opportunities.
Free Cloud Server for Mini-Assessment - ReliaCloud
ReliaCloud will provide a $200.00 credit towards creating a cloud server
for you try out one of your apps in the cloud.
* For businesses with 25 employees or more. Contact Redpath about your specific situation
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How to Leverage Cloud in your Corporate IT Strategy

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