How Cloud Brokerage Enables a Practical Path to Cloud IT

Stefan Ried, Ph.D. Principal Analyst Forrester Research

Praveen Asthana Chief Marketing Officer Gravitant, Inc.

Kevin L. Jackson Vice President & General Manager NJVC Cloud Services

Today’s Discussion

•  Welcome and Opening Comments –  Praveen Asthana, CMO, Gravitant, Inc.

•  What cloud brokerage means for IT organizations –  Stefan Ried, Ph.D., Principal Analyst, Forrester Research

•  Real world examples of cloud brokerage –  Kevin Jackson, VP & GM, NJVC Cloud Services

•  Q&A

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70% of IT organizations believe cloud lowers costs1 but leakage eats away at promised savings

3

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Ann

ual C

osts

($k)

Leakage

reduces cost savings

8% actual cost savings

57% promised savings

Sources of Cloud Leakage Other Key Challenges

1.  The cloud takes shape - Global cloud survey: the implementation challenge, KPMG, January 2013.

•  Technical complexity •  “Phonebooks” of APIs •  Uncertain availability and performance •  Short cut design and approval cycles

because cloud is “too” fast and easy increases risk

•  Sourcing complexity •  Apples to oranges sourcing choices •  Constantly changing pricing/packaging •  Different and complex bills

•  Financial complexity •  Identifying pricing arbitrage •  Financial “leaking faucets” from sprawl •  Hard to view actual costs and predict

future costs

What cloud brokerage means for IT organizations Stefan Ried, Principal Analyst April 17, 2012

Please tweet us your questions:

@StefanRied

The Cloud Broker Delivers Value From Three Branches Pure

ISV software model

Pure consulting

model

Hosting Provider

Cloud VAR Cloud

builder Cloud

enabler

Cloud integrator

Cloud infrastructure

provider

SaaS provider

Cloud broker

Forrester: August 10, 2011 “Cloud Broker — A New Business Model Paradigm”

Bus

ines

s Tr

ansf

orm

atio

n

5

Emerging Cloud Broker Offerings All Cloud Offerings

§  Large Enterprises demand more a Simple Cloud Broker or a Full Infrastructure Broker

§ SMBs ask more for a SaaS Broker

Forrester: June 4, 2012 “Cloud Brokers Become Change Agents”

© 2012 Forrester Research, Inc. Reproduction Prohibited Source: August 10, 2011, “Cloud Broker — A New Business Model Paradigm” Forrester report

CIO is the broker

Service provider

is the broker

Service Providers And CIOs Could Become Cloud Broker

Selecting a service provider – cloud broker is the most practical way to consume various cloud services today

© 2012 Forrester Research, Inc. Reproduction Prohibited

Statically mapped workloads stack up.

Cloud bursting enables efficient dynamic sourcing.

Workloads can represent business applications, processes, or infrastructure components.

Full infrastructure brokers will use cloud bursting to adopt to cloud economics

Source: August 10, 2011, “Cloud Broker — A New Business Model Paradigm” Forrester report

© 2012 Forrester Research, Inc. Reproduction Prohibited

Technical And Business Transformation Of IT Departments

Source: Cloud Brokers Become Change Agents, June 14, 2012

© 2012 Forrester Research, Inc. Reproduction Prohibited

Cloud Broker Trends

•  In 2015 infrastructure of US$ 6+ billion will be managed by Cloud Brokers •  Corresponding pure cloud broker fees will be above 300 million,

complemented by VAR and cloud builder business models.

•  The Enterprise cloud adoption becomes hybrid! •  Cloud Broker complement traditional service catalogs and ITIL based tools. •  The Cloud economics will be understood by more enterprises in this year. •  SMBs will mainly adopt SaaS-Broker; enterprises full infrastructure broker

The Market Gets Richer, Bigger, Broader

Source: Forrester, June 2012 “Cloud Brokers Become Change Agents”

© 2012 Forrester Research, Inc. Reproduction Prohibited

Already 34% of enterprises consider hybrid apps

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57%

24%

10%

keep business processes clearly either on-premises or in the cloud

combine business steps located in the cloud and on premises into one

process

Combine multiple cloud applications into a multi-cloud business

processes.

“How do you currently implement (or plan to implement) your business processes between on-premises and/or cloud applications?” (Select one)

Base: 1631 Software Decision makers implementing or plan to implement business process apps

8% don’t know

Thank you

12 Entire contents © 2009 Forrester Research, Inc. All rights reserved.

Stefan Ried +49 69 959 29856 +1 650-581-3844 sried@forrester.com twitter.com/StefanRied blogs.forrester.com/stefan_ried www.forrester.com

Real world examples of cloud brokerage

Kevin  L.  Jackson  Vice  President  &  General  Manager  NJVC  Cloud  Services  

U.S. Federal Agencies are leading the drive towards cloud brokerage but enterprises are right behind

ë  What? §  Focus on mission or business, not technology

§  U.S. agencies and business will use multiple clouds

ë  Why? §  Normalized comparison of cloud services provider offerings

§  Holistic view for managing and monitoring cloud services providers

ë  Benefits? §  Avoidance of vendor lock in

§  Realization of full economic and operational value of cloud computing

§  Eliminate hidden costs associated with cloud

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Adopting Cloud: problems for government and commercial enterprises

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Public Clouds

Managed Services

Private Clouds

ITO

A

D

B

C

Fortune 500 Enterprises

Agency, Business and IT Users

CFO

Cloud Admin

CIO

Secure Cloud Services and Ops Integration

No one way to manage Financial Transactions for Cloud B2B Contracts

Multiple Providers

Control and Alignment

Access, Solution & Consumption § 

The State of Texas has been using a cloud brokerage since September 2011

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Ancillary Services

Application Workload Portfolio

State Agencies

Cloud Services Broker

CTO/IT Architects

Cloud design (app arch, service agg &

capacity model)

Sourcing & Procurement Managers

Spend Analysis & Order Mgmt

Cloud Ecosystem Operator

State of Texas

CIO Command & Control

IT Ops Mgrs & Sys Admins

Dashboards Resource Mgt

Cloud Onboarding, Managed Services Market Management

Managed Service

Providers

VAR/ System

Integrator

•  Four agencies currently operating in this model •  Saved 30-50% in infrastructure costs when compared with

internal data center costs •  Improved agility to onboard to cloud by more than 5X

Gravitant cloudMatrix platform

Commodity Cloud

AWS

Enterprise Cloud

Savvis Terremark

Security Services

Gazaang Security Certificate VPN

Managed Services

Backup monitoring with 3rd providers

Cloud brokerage helps IT organizations realize the promise of the cloud

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$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Physical Unused Capacity Savings

Ops Savings

Utility Savings

CSB Cost

Cloud with CSB

Ann

ual C

osts

($k)

Source: Secretary of State, Texas, VoteTexas website app

41% actual cost savings

• Speed: voteTexas.gov stood up in two weeks

• Availability: solution can be provisioned using multiple providers across geographies

• Cost visibility: design and determine ROI of cloud solution before purchase and provisioning

• Ease of purchase: consolidated electronic commerce catalog and standardized units of purchase

• Command & control: capacity and cost monitoring, spend analysis, order management, single button provisioning – all from a single console

Eliminated Cloud Leakage Other Benefits

Source: Lessons Learned, Pilot Texas Cloud Offering, DIR, August 2012.

Why Gravitant cloudMatrix™ for the Cloudcuity™ Broker?

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Public  Clouds  

Managed  Services  

Private  Clouds  

ITO  

A

D

B

C

Fortune 500 Enterprises

Advanced Cloud Analytics (Big Data) Engine

Solution & Commerce Platform

Cloud Supply Chain Management

Cloud brokerage complements cloud management platforms

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Commerce Broker Catalog and Pricing Engine

Sourcing and Procurement Engine

Solution Design and Matching Cloud Services Broker

CIO and CFO Command and Control

External Service Provisioning Engine

IT Architects

Public Iaas

Paas

Public Providers

VMWARE

Cloud Foundry GreenPlum

AWS, TerreMark, Savvis

vBlock

VMWARE

Cloud Automation Hybrid Cloud Management

Self-Service Catalog

ITSM Service Request Catalog

Open Stack

Enterprise (Private Cloud)

Typical Enterprise Platform

Workflow Mgmt.

CIO/CFO Sourcing/Procurement Mgrs

Systems Integrator

Cloudcuity™ delivers integrated ITaaS

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Infra Perf Management

App Perf Management

Backup Management

Security Monitoring

Managed Updates

Disaster Recovery

Man

aged

Ser

vice

s C

loud

s C

onsu

lting

/Ope

ratio

ns

Public IaaS

Private PaaS

SI Private Cloud

Secure, Enterprise Cloud

Savvis Public Cloud

DR Cloud

Amazon Public Cloud

Test/Dev Cloud

Private IaaS

For the Broker: •  Enhance the

merchandizing and ordering experience

•  Improve your customer satisfaction

•  Make it easier to do business with cloud and managed services providers

ITaaS Products

For Agencies/Biz: •  Fast IT •  Easy to use •  Cost visibility •  Choice •  Flexibility •  Control

Clo

ud a

nd IT

Ser

vice

s Pr

ovid

er E

cosy

stem

Cloudcuity™ provides capabilities across the entire Cloud IT lifecycle

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• Compare applications

•  Identify target infrastructure

• Estimate readiness and value of cloud

• Select candidate application

Screen

• Define capacity

• Estimate migration ROI

• Build migration business case

• Project migration roadmap

Plan

• Define environments

• Design arch layers

• Simulate application architecture

• Estimate monthly bill of materials

Configure

• Approve bill of materials

• Approve Ts & Cs

• Submit aggregated order

•  Instantiate and deploy resources

Source

• Monitor resource use

• Monitor periodic spend

• Ensure provider compliance

• Execute recalibration when needed

Govern

Recalibrate and Optimize

Geospatial Community Cloud Demonstrations

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Thank You

Kevin L. Jackson Vice President & General Manager NJVC Cloud Services 001.703.429.9073 kevin.jackson@njvc.com www.njvc.com

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For Government and Commercial Enterprise customers: Do Cloud Right

Shine the Light on Shadow IT

Design My Cloud Infrastructure Solution

Enterprise IT Transformation

Manage My Hybrid Cloud

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Gain control, cost consolidation, and visibility to spend outside of the IT budget as well as introducing alternative sourcing

Provide application developers seeking to increase their flexibility and costs with solution design and matching for public cloud

Start a broad transformation of IT infrastructure that fully leverages the benefit of cloud services to improve the ability of the business to outpace its competition

Determine the “best fit” cloud for your application using screening,, design, and matching capabilities

Extend your initial use of private and public clouds and provide a unified management and sourcing platform for a true hybrid implementation

Find My Cloud

Achieving a practical path to the cloud Seamless leveraging multiple private and public clouds

•  Easy to use and manage

•  Solution design and matching

•  Automated sourcing and billing

•  Pricing arbitrage and optimization

•  Closed-loop decision support

•  Risk reduction

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