enterprise cloud strategy: 7 areas you need to re-think

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ENTERPRISE CLOUD STRATEGY: 7 AREAS YOU NEED TO RE-THINK

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Page 1: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

ENTERPRISE CLOUD STRATEGY:

7 AREAS YOU NEED TO RE-THINK

Page 2: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

•Kim Weins •VP Marketing, RightScale

• Bailey Caldwell •VP Customer Success, RightScale

Presenters

Page 3: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

POLLS

Page 4: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Optima

Cost management and collaborative optimization

RightScale CMP Solution

VIRTUAL SERVERS

PUBLIC CLOUDS

IAAS+/PAAS SERVICES

PRIVATE CLOUDS

BARE METAL

SERVERS

CONTAINER CLUSTERS

RightScale Cloud Management Platform

User access controls and governance

Governance

Cloud Management

Multi-cloud visibility, automation, and operations

Self-Service

Catalog of templates and automated provisioning

MULTI-CLOUD ORCHESTRATION

Page 5: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• A Multi-Cloud Mindset

• 7 Areas to Re-Think • People & Organization

• Culture

• Financial

• Governance

• Purchasing

• DevOps

• Operations

Agenda

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Page 6: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Multi-Cloud is the Strategy of Choice

Multi-Cloud 85%

Page 7: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

# of Clouds Used Public Clouds

All public cloud users

Private Clouds All private cloud

users

Running applications 1.8 2.3

Experimenting 1.8 2.1

Total 3.6 4.4

Organizations Already Use Multiple Clouds

Source: RightScale 2017 State of the Cloud Report

Page 8: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Enterprises Often Use AWS + Azure

Source: RightScale 2017 State of the Cloud Report

Page 9: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK PEOPLE & ORGANIZATION

Page 10: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Lack of Expertise is a Key Challenge

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Page 11: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Build a separate Cloud Team or Center of Excellence

• Strong Exec sponsorship is a must

• Combine Architects, IT Ops from the get go

• Treat App Dev and Business Units as your customers

• Break down traditional compute/storage/network silos

• Include some “net new” resources with cloud expertise

6 Tips for Building Your Cloud Team

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Page 12: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Fully Dedicated • Exec Sponsor • Cloud Architect(s) • DevOps Engineers • Cost Management & Governance

• Partially Dedicated • I&O • Application Development • Integration/Network • Security • Finance • Purchasing

Cloud Team Members/Roles

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Page 13: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Define and advance cloud processes and architectures. Act

as a focal point to coordinate and collaborate on cloud

decisions • Select cloud providers and define relationships

• Define cloud architectures

• Foster DevOps processes

• Cost management and governance processes

• Coordinate with infrastructure and operations

• Create security, compliance and access management processes

• ...and more

The Role of Cloud Architect(s)

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Page 14: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK CULTURE

Page 15: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• From “building infrastructure” to “enabling business value”

• From “gatekeeper” to “guardrails + governance”

• From “capacity management” to “optimization”

• Brokering and instant access

• Everything “as code” (infrastructure, policies, processes)

5 Ways Cloud Changes Your IT Culture

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Page 16: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK FINANCIAL

Page 17: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Large Amounts of Wasted Cloud Spend

Multi-Cloud 85%

Page 18: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Cost Optimization Is Top Initiative in 2017

Source: RightScale 2017 State of the Cloud Report

Page 19: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

30-45% Savings

How do I execute on an ongoing basis?

Page 20: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• It’s complicated -- millions of line items!! • Try opening that in your spreadsheet!

• Each cloud provider bills differently • Different services from the same cloud provider bill differently

• Ex: One cloud provider has inconsistent region naming

• Frequent updates • Multiple times a day

• Constant change • Cloud providers are adding new items and changing how they bill

• Think multi-cloud cost management

The Challenge of Cloud Billing

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Page 21: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Tagging is a Critical Foundation for Reporting

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Priority Tags Accounts

1 env=test

2 env=prod

3 dept=qa

4 12456

Allocation Rules Billing Centers

A

B

C

Page 22: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

1. Reporting: “measure to manage” • Tagging & cost allocation • Monthly reporting on allocated costs • Daily or weekly reporting to monitor • Alert when exceeding budget

2. Optimization • Find waste • Report on waste • Collaborate to fix waste

3. Automation • Automated alerting on waste • Semi or fully-automated action

3 Steps to Control Cloud Costs

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Page 23: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Cloud can be a mix of “CapEx” and “OpEx”

• Some companies may be able to capitalize parts of cloud spend

(Reserved Instance purchases, contractual commitments)

• OpEx requires a new approach

• From “approval and ROI” to “continuous optimization”

• Optimize now, saves me money immediately

• Finance/accounting teams need to shift their mindset

• Will GAAP rules evolve?

A Shift from CapEx to OpEx

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Page 24: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Cloud pricing models

• Pricing comparisons

• Areas for waste

• Discounting options • RIs, committed use, negotiated discounts, etc.

• Maximizing discounts • Coverage levels, utilization against commitments

• Billing

Develop Cloud Expertise in Your Finance Team

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Page 25: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK PURCHASING

Page 26: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Don’t Overcommit to Variable Usage

Usage commitments for discounts x% coverage of steady state

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On-demand usage

Page 27: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Get comfortable with cloud provider contracts • Joint responsibility for SLAs & Security

• Less room for negotiating key terms

• Multi-cloud provides negotiating leverage • Make sure IT/Dev are architected for portability

• Don’t overbuy for larger discounts • Purchase discounts only based on go-forward steady state levels

• Hold IT and cloud consumers accountable for efficiencies • Optimize today for lower cloud bill next month

To Dos for the Purchasing Team

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Page 28: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK GOVERNANCE

Page 29: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Cost

• Access control

• Network security

• Configuration management/patching

• Data security

• Business continuity (HA/DR)

• Performance

• Compliance

• Audit

• Standards

Governance: Do the same things, differently

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Page 30: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Multi-Cloud IAM

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User B User A User E User D User C

Enterprise Account

Cloud Account

Cloud Account

Cloud Account

Cloud Account

Cloud Account

Cloud Account

Account 2 Account 1

RightScale Access Control

Authorization

Authenticate with cloud credentials

ADFS

Active Directory

Authentication

Page 31: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Implement Automated Policies Across Clouds

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Page 32: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK DEVOPS

Page 33: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• You need automation to gain benefits of cloud:

• Accelerate time to market

• Shut instances down when not in use (nights, weekends)

• Auto-scale up or down

• Adjust instances sizes when underutilized

• Expand/move to other regions

• Move to other clouds

• You need automation to manage applications in cloud:

• Respond to instances that die

• Avoid or recover from failures/outages

• Address security vulnerabilities.

• ...and more

The Cloud is “About” Automation

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Page 34: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

DevOps Spans Resource Pools

VIRTUAL SERVERS

PUBLIC CLOUDS

DESKTOPS/ LAPTOPS

PRIVATE CLOUDS

BARE METAL

SERVERS

CONTAINER CLUSTERS

MULTI-CLOUD ORCHESTRATION

Page 35: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Some Key Elements of DevOps

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Processes Tools

Self-Service access to infrastructure CMP (RightScale), ITSM

Continuous integration/delivery Github, Jenkins, Travis

Configuration management Chef, Puppet, Ansible, Terraform

Containerization Docker, Swarm, Kubernetes

Continuous monitoring NewRelic, Datadog

Page 36: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

CI/CD

Communications

ITSM / CMDB / Tcketing

Alerts & Monitoring

Reporting / Dashboards

Collaboration

A CMP Ties it All Together

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Page 37: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

RE-THINK OPERATIONS

Page 38: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

NoOps: Defined

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The goal of completely automating the deployment, monitoring, and management

of applications and the infrastructure on which they run.

Source: Forrester

Page 39: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

NoOps: The Role of Operations Changes

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Adhoc

Action

Repeatable Automation

Old Ops NoOps

Page 40: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

NoOps: The Role of Operations Changes

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Situation Old Ops NoOps

Request for a new server Fulfill request once

approved

Automated self-service for

requester within guardrails

Server overloaded Add a server Autoscaling array

Server failed Reboot Detect and auto-reboot

New code ready Push code to production Trigger automated push once

tests are completed

Need a backup on dev Take a snapshot Push button snapshots on dev

Page 41: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

• Cloud Account Provisioning

• Dev/Test Environment Provisioning

• Infrastructure Provisioning

• Code Deployment

• Application Operations

• Self-Healing

• Automated Policies

• ...and more

Automation: More than App Provisioning

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Page 42: Enterprise Cloud Strategy: 7 Areas You Need to Re-Think

Contact [email protected] for more info

Q&A

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