17 – 19 September 2018 / Cape Town, SA

Is Cloud Computing Building or

Destroying Your Infrastructure
and Operations?
Milind Govekar

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 Don't Just Be a
Custodian
of Legacy
Technologies

#rethink
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 Digital Platforms Need Cloud Computing

1. Engage to become 4. Interact digitally with

transaction oriented the API economy

5. Automate data-driven
decision making

3. Sense things to
2. Build agile and
monitor, manage,
software-defined solutions
measure, secure and alert

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Key Issues

1. What are the major trends and challenges in the cloud affecting the
I&O leader?
2. What building blocks and best practices should an I&O leader
implement to remain relevant in the cloud world?

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Key Issues

1. What are the major trends and challenges in the cloud affecting the
I&O leader?
2. What building blocks and best practices should an I&O leader
implement to remain relevant in the cloud world?

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Cloud Adoption Rates:
Percentage of Organizations Using Cloud Services
90% 85%
81%
80% 77%

70%

60% 58%

50% 46%

40% 35%
30% 26%

20%

10%

0%
2013 2014 2015 2016 2017 2018 2019
(projected) (projected) (projected)

Source: Gartner estimates based on cloud adoption surveys (2014 to 2016)

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IT Spending on Public Cloud Services, 2014 to
2020, Worldwide
Billions of Dollars BPaaS SaaS PaaS IaaS
250 232
Growth Rates
199 (Five-Year CAGR):
200
169
 IaaS: 32.3%
142
150
119  PaaS: 20.6%
99
85
100  SaaS: 19.2%
50  BPaaS: 7.8%
 Overall: 20.4%
0
2014 2015 2016 2017 2018 2019 2020 of IT budget
Source: "Forecast: Public Cloud Services, Worldwide, 2014-2020, 4Q16 Update" (G00320866)
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Major Challenges to Cloud Computing in South Africa

 Infrastructure

 Security

 Skills

 Policy concerns, e.g., regulation

 Cloud confusion
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Cloud: Business Opportunity to Bypass I&O

I&O
Data Center Cloud

Perception:
Perception:
 Agile
 Slow to respond
STOP  Low fixed costs
 High fixed costs
 Service-driven
 Technology-driven

Business

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Key Issues

1. What are the major trends and challenges in the cloud affecting the
I&O leader?
2. What building blocks and best practices should an I&O leader
implement to remain relevant in the cloud world?

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Top 10 Cloud Myths Should Be Addressed First

1. Cloud is always about saving money

2. You have to be cloud to be good
3. Cloud should be used for everything
4. Regulations don't let us use cloud
5. We need a one-cloud solution
6. Cloud is less secure than on-premises
7. Cloud is not for mission-critical use
8. Cloud = Data center outsourcing or hosting
9. Migrating to cloud means you automatically get cloud characteristics
10. Virtualization = Private cloud
2018: Cloud Is No. 3 Technology Investment Priority for CIOs
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 Identify Consumers of I&O Services
Who are the largest consumers of I&O services? (Sum of 1 to 9)

IT Application Development 88%

84%

Line of Business 81%

83%

Digital Workplace (i.e., Service Desk, Mobile and Client Support, etc.) 71%
70%

IT Service Managers 60%

71%

IT Business Relationship Managers 57%

57%

Enterprise Architects 53%

56%

Chief Information Officer 52%

51%

Chief Technology Officer 43% 2017 (n = 91)

38%
2016 (n = 117)
Others 3%
0%

Base: All Respondents. n = 91 Gartner Research Circle Members

Q01. Who are the largest consumers of I&O services?
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Action 1: Empower Your Customers With Services
They Want and Need
Cloud Provider
1 Cloud Provider
2 Public Cloud
E.g., Sales Cloud Provider
Automation 3
E.g., VMI/
IT Service
IT Broker E-Commerce

E.g., Contact Outsourcer

Verification
IT Becomes the Service Broker:
Let Your Policies Determine E.g., HR
Placement and Operations
Service
Consumption

Traditional
On-Premises Customer
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Action 2: Forget Business Aligned, Become
Business Embedded
Product 1 Product 2 Product 3 Product 4 Product n
(Amazon Web (Microsoft Azure) (Google Cloud (VMware) (OpenStack)
25% of I&O Staff

Services) Platform)
Platform Engineering Team
Multiskilled, automation-focused: Chef, CI/CD, Virtualization, Microsoft Windows or Linux. Not
siloed and automate key tasks. Able to provision monitoring, storage, compute, network (including
firewall and load balancer) via software-defined toolset. Aligned to or embedded within business
units so can be approachable and with a can do attitude. Drive continuous improvement.

IT Operations and Service Management Team

75% of I&O Staff

Infrastructure

Infrastructure

Infrastructure
Infrastructure

Infrastructure
Architecture
Automation
Network

Security
Projects
Storage

Central
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Action 3: Categorize Applications and Workloads
in Layers
Time to Cloud
First
Productivity
Email Applications
HR Systems of Innovation (New)
Dev./Test
CRM
Help
Desk Account
Core Mgmt. Systems of Differentiation (Unique)
Web Consumer
Systems Centric
Servers Product
Design
Evaluations
Systems of Record (Common)
Social
Prototyping
Collaboration
Last
Now A Little Later: 1 to 3 Years Much Later: 5 to 7 Years
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Action 4: Develop Guidance for Workloads —
Private vs. Public vs. Hosted

What do I need to build

Why does it have and operate and what
Why does it have can be procured from a
to be private? to be cloud? third-party provider?
Some workloads must remain You can't update, innovate,
private due to regulatory or reduce the costs of Not everything can or
compliance, physical location internal cloud services as should be "cloud"
or other requirements quickly as providers
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Action 5: Identify and Work With Local Partners to
Address Connectivity and Latency Issues
Secondary/
DR Site

Partner 1

Enterprise
Data Center
Partner 2

16
Colocation Hub
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Action 6: Plan for Evolution of Cloud Consumption

Cloud Deployment Use of Cloud Services Cloud Becomes

Begins Increases Mainstream

Single Secondary
Multiprovider
Provider Provider
Net-New Low-Risk Complex
Workloads Workloads Workloads
Basic Expanded Cloud Service
Cloud Skills Cloud Skills Brokerage

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Develop a Framework for Public Cloud Cost Management

Plan Track Reduce Optimize Monitor

Create a Gain visibility Lower Use analytics

Continuou
cloud into monthly to gain
cloud spend sly monitor
budget cloud bill insights

Regional Variation of Service Availability Adds to the Overall Cost

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Evolve Your Cloud Security
Maturing Practices Maturing Practices
Commoditized Products Evolving Products
 CSP security posture  Integrated SaaS policy
management consoles
 Third-party security evaluation
 SaaS use and
 User authentication activity monitoring
 Secure connectivity to  Privilege management
a single cloud and RBAC
 Cloud management and APIs
 VM vulnerability management
 Cloud storage encryption
 Network firewall and
NFV security
 Cloud workload protection
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No Best Practices
Immature Products
 Maintaining code security in
dynamic DevOps
 Assurance of code integrity
of procured services/devices
 Management of supply
chain security
 Security assessment without
third-party evaluation
 Continuous monitoring of CSPs
 Customer control of
cryptokeys
 SaaS contingency planning
Evolve Your Cloud Management

Hybrid Cloud Management

Multicloud Management

Self-Service Portal Specific/Element Cloud Management

Specific/Element Cloud Management

Private Cloud Management

Microsoft
Amazon Azure …
Web Services
On-Premises (AWS) …

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Processes and Tasks in 11 Key Areas of
Cloud Management
Governance and Policy Cloud Migration and DR

Cost Transparency and Optimization

Service Request Management

$
Capacity and Resource Optimization
Provisioning, Automation
and Orchestration
Cloud
Management Security and Identity

Monitoring and Metering

Service-Level Management

Multicloud Brokering Continuous Configuration Automation

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Action 7: Develop Your Cloud Adoption Framework
"A Comprehensive List of Management
"An Emerging IT Role: "How to Budget, Track and Requirements for Organizations Using
The Cloud Architect" Reduce Public Cloud Spending" Public Cloud Services"

1. Build Skills and 2. Select Cloud 3. Architect Cloud 4. Estimate the Bill 5. Provision and 6. Operate Cloud
Assess Providers and Services and and Establish Automate Cloud Environments
Applications Services Mitigate Risks Governance Services at Scale

SaaS

PaaS $
Architect Manage Cloud
Create Your IaaS Cloud Services Create a Order Cloud
Cloud Team Services Deployments
Compare the Forecast
Cloud Layers
? Secure Cloud
Implementations Monitor Cloud
Exit
Consumption
YES NO

Assess Design for Orchestrate

Application Select Cloud Define Policies Become the
Business and Procedures Cloud Workloads
Readiness Providers Continuity Broker

"Decision Point for Application "Evaluation "Devising a Cloud Exit Strategy: "Selecting an Approach
Placement: Cloud, Managed, Criteria for Cloud Proper Planning Prevents Poor for Managing Public
Colocation or Do It Yourself" Infrastructure as a Service" Performance" Cloud Services"

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Action 8: Build Cloud Contract Negotiation Capability

 Critical Clauses:
– Without minimum guarantees,
consider walking away from the deal.
 Important Clauses:
– Bring some risk with low probability;
or can influence the exit.
 "Nice to Have" Clauses:
– Cloud IaaS and PaaS providers'
behavior is not driven by them.

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Action 9: Invest in New Roles and Assess Impact on
Current Roles
New Role Why?
Assess competitiveness, service options, improve service delivery
IT Finance
costs, implement transparency

Cloud Service Broker Assess new cloud services to offer customers

Responsible for end-to-end service delivery (and SLAs) and forecasting

Service Manager
demand for service for input to product managers and ESPs

Capacity Manager Ensure capacity is in place to meet demand

Responsible for designing higher-level processes and policies to enable

Cloud Architect
greater automation through policy/rule encoding
Development skills must be brought into I&O to enable end-to-end
Automation Specialists
service delivery automation

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Action 10: Advice the Business of Hidden Upfront
Cloud Costs
Pilot = Accept Terms

Missing Features, Initial Setup Costs

Purchased Separately
Reoccurring
Training Fees
Maintenance and
Support Fees Customization or
Integration Fees
On-Premises
Price Increases
License Conversions
at Renewal
With No Credit

URL Links Can Be Changed at Any Time

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Best Practices and Recommendations

 There Is No Single  Build a layered strategy for each

Cloud Strategy level of cloud capabilities
 Avoid "lift and shift" where possible
 Redesign, Not Redeploy
 Enterprisewide cloud migrations
 One Workload at a Time usually fail
 Coordinate the Uncontrollable  Become or use brokers
as intermediaries
 Focus on Outcomes  The only "right" service is the one
with business value
 Hybrid Cloud Works
 Expect hybrid to be the norm
for years

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Don't Forget the Edge

Cloud computing is necessary, but not always sufficient for digital business

Connected things! Physics! Hyperinteraction!

 Massive and/or  Speed of light  Between things
local-only data  Data gravity and people
 Real-time reaction
By 2020, edge computing will approach on-premises in compute power
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Plan Ahead — Cloud, the Next 10 Years
IaaS PaaS SaaS

Cost Low Low Increasing

Risk Minimal Moderate Moderate

Data Sensitivity Low Low High

Geography Pervasive Pervasive Pervasive

Adoption Utility Utility Specialty

Hybrid Normal N/A N/A

Strategy Tactical Strategic Strategic

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Action Plan for South African CIOs and Senior IT Leaders

Monday Morning:
 Understand and identify the role of cloud computing in your digital strategy
 Start categorizing your applications and workloads for cloud adoption
Next 90 Days:
 Create a sourcing roadmap for acquiring critical skills
 Invest in new roles
Next 12 Months:
 Plan for hybrid, multicloud evolution
 Invest in cloud management platform tools for governance and
cost management

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Recommended Gartner Research

 Every Organization Needs a Digital Platform Strategy

Betsy Burton, Kristin R. Moyer, Marcus Blosch and Others (G00316151)
 Take These Five Steps to Prepare I&O for Digital Business Platforms
Hank Marquis, Milind Govekar and Arun Chandrasekaran (G00321069)
 Become a Cloud Enabler by Following Our Eight Steps to Hybrid IT
Thomas J. Bittman (G00259266)
 Hybrid IT: How Internal and External Cloud Services Are Transforming IT
Chris Howard, Drue Reeves, Anne Thomas and Others (G00231796)
 Developing Your SaaS Governance Framework
Jay Heiser (G00314389)
 Everything You Know About SaaS Security Is Wrong
Jay Heiser (G00299746)
For information, please contact your Gartner representative.
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Recommended Gartner Research

 Organize to Deliver 'Cloud as a Service' (EMC)

CEB Infrastructure Research Team (G00339658)
 Cloud Champion (Thermo Fisher Scientific)
CEB Infrastructure Research Team (G00339067)
 Service-Oriented Cloud Provisioning (Fidelity)
CEB Infrastructure Research Team (G00339919)

For information, please contact your Gartner representative.

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