Jeff Aden, EVP of Business Development and Marketing at 2nd Watch, recently contributed this article on top business issues when moving to the cloud to Data Center Knowledge. Enjoy!
When planning a move to the cloud, CIOs often worry about if and how legacy applications will migrate successfully, what level of security and archiving they need, whether they have the right internal skills and which cloud providers and toolsets are the best match for business goals.
There are also a number of business issues to consider, such as the changing nature of contracts and new considerations for budgeting and financial planning. For instance, transitioning from large upfront capital purchases, such as data center investments and software agreements to monthly service fees can help lower costs related to the management and maintenance of technology, much of which is underutilized. There’s also no need to deploy capital on unutilized resources — all positive changes. Yet pay-as-you-go pricing also brings a change in how IT is purchased: the CFO will need processes for monitoring usage and spending, to prevent so-called cloud sprawl. Here’s our take on the top considerations beyond technology planning for making a smooth move to the cloud.
- Working with existing IT outsourcers. A recent survey by Gartner noted that approximately 70% of CIOs surveyed will be changing IT vendor and sourcing relationships over the next two years. The primary reason for this shift is that most traditional IT service providers aren’t delivering public cloud-related services or products that are suited for the transition to a digital business. Dissolving or changing relationships with longtime IT partners will take some thought around how to structure the right business terms. For instance, when renewing contracts with current vendors, companies may seek to add a clause allowing them to bifurcate between current services (hardware/colocation) and emerging services such as cloud. This will allow the right provider with the right skill sets to manage the cloud workloads. If your company is within an existing contract that’s not up for renewal soon, look for another legal out, such as “default” or “negligent” clauses in the contract, which would also allow you to hire a reputable cloud IaaS firm because your current provider does not have the skill set, process for expertise in a new technology. Reputable vendors shouldn’t lock their customers into purchasing services which aren’t competitive in the marketplace. Yet, the contract rules everything, so do whatever you can to ensure flexibility to work with cloud vendors when renewing IT contracts.
- Limits of liability. This contractual requirement gives assurances to the customer that the vendor will protect your company, if something goes wrong. Limits of liability are typically calculated on the number of staff people assigned to an account and/or technology investments. For instance, when a company would purchase a data center or enter into a colocation agreement, it required a large CAPEX investment and a large ongoing OPEX cost. For these reasons, the limits of liability would be a factor above this investment and the ongoing maintenance costs. With the cloud, you only pay for what you use which is significantly less but grows overtime. Companies can manage this risk by ensuring escalating limits of liability which are pegged to the level of usage. As your cloud usage grows, so does your protection.
- Financial oversight. As mentioned earlier, one advantage of on-premise infrastructure is that the costs are largely stable and predictable. The cloud, which gives companies far more agility to provision IT resources in minutes with a credit card, can run up the bill quickly without somebody keeping a close watch of all the self-service users in your organization. It’s more difficult to predict costs and usage in the cloud, given frequent changes in pricing along with shifts in business strategy that depend upon easy access to cloud infrastructure. Monitoring systems that track activity and usage in real time, across cloud and internal or hosted environments are critical in this regard. As well, finance tools that allow IT and finance to map cloud spending to business units and projects will help analyze spend, measure business return and assist with budget planning for the next quarter or year. Cloud expense management tools should integrate with other IT cost management and asset management tools to deliver a quick view of IT investments at any moment. Another way to control spend is to work with a reseller. An authorized reseller will be able to eliminate credit card usage, providing your company with invoicing and billing services, the ability to track spend and flexible payment terms. This approach can save companies time and money when moving to the cloud.
- Service catalogue: A way to manage control while remaining agile is to implement a service catalogue, allowing a company’s security and network teams to sign off on a design that can be leveraged across the organization multiple times with the same consistency every time. Service catalogues control which users have access to which applications or services to enable compliance with business policies while giving employees an easy way to browse available resources. For instance, IT can create a SAP Reference Implementation for a environment. Once this is created, signed off by all groups, and stored in your service catalogue it can be leveraged the same way, every time and by all approved users. This provides financial control and governance over how the cloud is being deployed in your organization. It can also move your timelines up considerably, saving you weeks and months from ideation to deployment.
- Staffing/organizational changes: With any shift in technology, there is a required shift in staffing and organizational changes. With the cloud, this involves both skills and perspective. Current technologists whom are subject matter experts, such as SAN engineers, will need to understand business drivers, adopt strategic thinking and have a focus on business-centered innovation. The cloud brings tools and services that change the paradigm on where and how time is being spent. Instead of spending 40% of your time planning the next rack of hardware to install, IT professional should focus their energies responding to business needs and providing valuable solutions that were previously cost prohibitive, such as spinning up a data warehouse for less than a $1,000 per year.
To set up a private appointment with a 2nd Watch migration expert, Contact Us.
Gartner defines Digital Business as the creation of new business designs by blurring the digital and physical worlds. What does this mean? It means that business demand is out pacing the ability physical IT data centers have to accommodate. Companies are being challenged by competitors using newer technology or startups reinventing how business problems are solved.
Digital Business has changed how business executives think about IT and technology. The ability to innovate quickly and at very low cost is key to being competitive in today’s digital economy – no matter what business, from retail to manufacturing to financial to gaming. Great examples are companies like NetFlix and Instagram, which have changed our culture with their ability to innovate.
I mention these companies specifically because they use the public cloud to create innovation. In the past, companies required huge investment and time to build out data centers for a global presence. Now, with the public cloud like AWS, companies can go from concept to global roll out in months with very little upfront costs.
Digital Business is changing the way companies think about IT. Much of the excitement of public cloud has been focused on small companies that innovate and grow large. But in the past year or so, large enterprise companies have become serious about adopting this same type of innovation. For those of us old enough to know – Enterprise IT hasn’t seen this dramatic of a change since the personal computer changed the mainframe industry.
So why does the public cloud make sense for Digital Business? As you know from our previous post, the cloud enables innovation. First, public cloud is elastic and pay-as-you-use, which enables IT organizations to innovate with very small upfront costs and with the ability to scale globally. Next, public cloud provides a robust platform of services besides just computing, which enables software development teams to focus on business differentiation and to do so much quicker than with traditional IT. Instead of spending time figuring out how to setup a message queue system, developers can use something like the AWS service SQS. Again this speeds up innovation.
In future articles – we will describe in more detail why public cloud is an ideal platform for the new world of Digital Business.
-Joel Rosenberger, EVP Software, Executive
With every new year comes a new beginning. The holidays give us a chance to reflect on our achievements from the previous year, as well as give us a benchmark for what we want to accomplish in the following year. For most individuals, weight loss, quitting a bad habit, or even saving money top the list for resolutions. For companies, the goals are a little bit more straight forward and quantitative. Revenue goals are set, quotas are established, and business objectives are defined. The success of a company is entrenched in these goals and will determine; positively or negatively, how a company should be valued.
Today’s businesses are becoming even more complex than ever, and we can thank new technologies, emerging markets, and the ease of globalization for helping drive these new trends. One of the most impactful and fast adopting technologies that is helping businesses in 2015 is the public cloud.
What’s amazing, though, is that how businesses are planning for the adoption of public cloud is still unknown to most. Common questions such as “Is my team staffed accordingly to handle this technology change?” or “How do I know if I’m architecting correctly for my business?” are coming up often. These questions are extremely common with new technologies, but it doesn’t have to be difficult if you take these simple steps.
- Plan Ahead: Guide your leadership to see that now is the time to review the current technology inventory being utilized by the company and strategically outline what it will take to help the company become more agile, cost effective, and leverage the most robust technologies in the New Year.
- Over communicate: By talking with all the necessary parties, you will turn an unknown topic into water cooler conversation. Involve as many people as possible and ask for feedback constantly. This way, if there is anyone that is not on-board with this technology shift, you will have advocates across the organization helping your cause.
- Track your progress: Keep an active log of your adoption process, pitfalls, to-dos, and active contributors. Establish a weekly cadence to review past success and upcoming agendas. Focus on small wins, and after a while you will see amazing results for your achievements.
- Handle problems with positivity: Technology changes are never easy for an organization, but take each problem as an opportunity to learn. If something isn’t working, it’s probably for good reason. Review what went wrong, learn from the mistakes, and make sure they don’t repeat themselves. Each problem should be welcomed, addressed and reviewed accordingly.
- Stay diligent: Rome wasn’t built in a day, and neither will your new public-cloud datacenter be. Review your plan, do constant check points against your cloud strategy, follow your roadmap and address problems as soon as they come up. By staying focused and tenacious you will be successful in your endeavors.
Happy 2015, and let’s make it a great year.
-Blake Diers, Alliance Manager
Momentum continues to build for companies who are migrating their workloads to the cloud, across all industries, even highly regulated industries such as Financial Services, Health Care, and Government. And it’s not just for small companies and startups. Most of the largest companies in the world – we’re talking Fortune 500 here – are adopting rapid and aggressive strategies for migrating and managing their workloads in the cloud. While the benefits of migrating workloads to the cloud are seemingly obvious (cost savings, of course), the “hidden” benefits exist in the fact that the cloud allows businesses to be more nimble, enabling business users with faster, more powerful, and more scalable business capabilities than they’ve ever had before.
So what do enterprises care about when managing workloads in the cloud? More importantly, what should you care about? Let’s assume, for the sake of argument, that your workloads are already in the cloud – that you’ve adopted a sound methodology for migrating your workloads to the cloud.
Raise your expectations I would submit that enterprises should raise their expectations from “standard” workload management. Why? Because the cloud provides a more flexible, powerful, and scalable paradigm than the typical application-running-in-a-data-center-on-a-bunch-of-servers model. Once your workloads are in the cloud, the basic requirements for managing them are not dissimilar to what you’d expect today for managing workloads on-premise or in a data center.
The basics include:
- Service Levels: Basic service levels are still just that – basic service levels – Availability, response time, capacity, support, monitoring, etc. So what’s different in the cloud world? You should pay particular attention to ensuring your personal data is protected in your hosted cloud service.
- Support: Like any hosting capability, support is very important to consider. Does your provider provide online, call center, dedicated, and/or a combo platter of all of these?
- Security: Ensure that your provider has robust security measures in place and mechanisms to preserve your applications and data
- Compliance: You should ensure your cloud provider is in compliance with the standards for your specific industry. Privacy, security and quality are principal compliance areas to evaluate and ensure are being provided.
Now what should enterprises expect on top of the “basics?”
- Visibility: When your workloads are in the cloud, you can’t see them anymore. No longer will you be able to walk through the data center and see your racks of servers with blinking lights, but there’s a certain comfort in that, right? So when you move to the cloud, you need to be able to see (ideally in a visual paradigm) the services that you’re using to run your critical workloads
- Be Proactive: It used to be that enterprises only cared if their data center providers/data center guys were just good at being “reactive” (responding to tickets, monitoring apps and servers, escalating issues, etc). But now the cloud allows us to be proactive. How can you optimize your infrastructure so you actually use less, rather than more? Wouldn’t it be great if your IT operations guy came to you and said “Hey, we can decrease our footprint and lessen our spend,” rather than the other way around?
- Partner with the business: Now that your workloads are running in the cloud, your IT ops team can focus more on working with the business/applications teams to understand better how the infrastructure can work for them, again rather than the other way around, and they can educate the business/applications teams on how some of the newest cloud services, like elasticity, big data, unstructured data, auto-scaling, etc., can cause the business to think differently and innovate faster.
Enterprises should – and are – raising their expectations as they relate to managing their workloads in the cloud. Why? Because the cloud provides a more flexible, powerful, and scalable paradigm than the typical hardware-centric, data center-focused approach.
-Keith Carlson, EVP of Professional and Managed Workload Services
If you missed this breakout session at AWS re:Invent 2014, don’t miss this session recording. Learn how Yamaha and 2nd Watch migrated Yamaha’s data center to Amazon Web Services in this AWS re:Invent 2014 breakout session recording.
When Yamaha Corporation needed to reduce infrastructure cost, AWS was the solution. The following video talks about how Yamaha and 2nd Watch migrated mission-critical applications, configured Availability Zones for data replication, configured disaster recovery for Oracle E-Business Suite, and designed file system backups for Yamaha’s environment on AWS.
Information on AWS re:Invent
AWS re:Invent is a learning conference that offers 3 days of technical content so attendees can dive deeper into the AWS cloud computing platform. The event is ideal for developers, architects, and technical decision makers – as well as AWS partners, press, and analysts interested in cloud computing. The majority of the conference content is focused on technical deep dives for existing AWS customers, but there is also content covering new service announcements, overviews of existing services, and content for executive decision makers.
The next AWS re:Invent will be held October 5-9, 2015 at the Venetian Hotel in Las Vegas, NV. For more information click here: AWS re:Invent 2015