Journey to Cloud. HP Helion Managed Cloud. Christian Verstraete / Chief Technologist Cloud June 2014

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1 Journey to Cloud HP Helion Managed Cloud Christian Verstraete / Chief Technologist Cloud June 2014

2 Compelling issues for your customer s business Technology is transforming the way enterprises and governments work Market Trends Business Issues Technology Trends 2 New cloud enabled IT approaches allow nimble competitors to appear from anywhere around the globe IT consumerization leads to increased demand on IT by the business The digital transformation leads to increasing reliance upon IT across all business functions and services, for o Revenue growth o Customer experience o Partner collaboration o Brand reputation o Employee efficiency o Work quality IT needs to invest more in new business projects. How do we migrate IT spent from operations to innovation without negatively impacting critical capabilities? New business projects need better support for productivity improvements than existing applications and data provide New markets, new products, M&A requires fast access to new IT functionality New products & services require IT support to differentiate from competition Evolving business strategies require the business to become IT-enabled Applications are impacted by increasing technology velocity: o innovation o automation o user centricity Legacy applications and infrastructure are hampering business change in the face of increasing competition and puts company at disadvantage against nimble start-ups. Complex legacy application estates are posing significant business and regulatory risk to businesses. Skills in some legacy technologies are become scarce and hard to find.

3 Cloud improves your business... Workload Advantages Speed-to-Market Financial Impact Flexibility Enable mobile access Realize flexibility with hybrid delivery Connect with partners, suppliers, customers Provision instantly Redeploy IT talent Seamlessly transition to production Convert CapEx to OpEx Lower cost to provision Eliminate maintenance and management costs Scale up/down on demand Increase business agility Gain more efficient capacity utilization 3

4 but needs to address critical issues Which challenges are most important to you? Security 50% of IT executives state that security is their biggest barrier to cloud adoption Compliance Increasing data sovereignty challenges are globally impacting customer cloud journeys Open 71% of IT executives believe open standards are critical The shift to cloud computing is disruptive, but it creates an opportunity to leverage the cloud to drive business innovation. Very large enterprises are the fastest adopters of cloud services. A majority of respondents rely on traditional IT suppliers either vendors or integrators for their cloud computing solutions rather than telecom companies or others. Gartner Vendor lock-in 65% of IT executives are concerned with vendor lock-in $10+ trillion Already invested in legacy IT 4

5 Journey to Cloud

6 Cloud is a Journey Key considerations: What are the business needs? What business benefit am I trying to achieve? What are the implications of my technology choices? What applications do I run where? Do I expose my data? How are services delivered? Standardize and consolidate Configure & manage systems Virtualize and automate Infrastructure focused Optimize hardware and manage workloads Self-service infrastructure Provision infrastructure in minutes with templates and portals Self-service applications with full lifecycle management Automate business and IT practices to SLAs Services focused Become a service broker in a hybrid environment Integrate service providers into a customized, unified environment Integration, management & security 6

7 Four key areas to explore Drivers Cost Reduction Agility/Responsiveness Business Transformation New Business Opportunities Business Service Transformation Application Transformation Technology Transformation Delivery Model Transformation Governance Lifecycle Operation Financials 7

8 Business Service Transformation Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

9 Business Service Transformation SaaS Step 2a Start Step 1 Decision Step 3 End Step 2b Service Definition Appl. Service goals Service contract / policy Service visibility Service description Service interaction Service lifecycle mgmt. 9

10 Application Transformation Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

11 Appetite for Value Application transformation strategies HP has full range of transformation strategies recognizing one-size does not fit all Replace non-core legacy applications with SaaS service SAP, Oracle, Microsoft, Salesforce, Workday Application Migration to a new cloud infrastructure as-is 11 Replace Re-Host Re-Architect Re-Factor Appetite for Risk Retire: Sunset the application while ensuring data migration and archiving Re-architect core applications as loosely coupled, composite applications. This involves use of a modern language and service- based principles to exploit core business IP. Code optimization to improve application run-time efficiency. No changes in business processes or programming language Asses, Plan & Define Transformation Strategy to Accelerate Business Outcomes

12 Deciding where workloads belong Core versus Context A CORE application is an application that sustainably differentiates the enterprise within its market, that makes the company being what it is in the eyes of its customers. Processes that create unique competitive differentiation Source of revenue and profit growth Business Geographic regulatory requirements High availability of apps Compliance requirements Service level requirements Business continuity Security policies Technical Network Latency External dependencies Language of application Physical hardware dependencies Data encryption Operating system requirements Parallel processing A CONTEXT application is an application that does not differentiate the company from the customer s viewpoint in the target market. All other processes No differentiation for doing them well Penalties for doing them poorly 12 Geoffrey Moore Dealing with Darwin 2006 & Interviewing Geoffrey Moore: Core versus Context

13 Technology Transformation Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

14 Find the right deployment model for you Managed by CAPEX/OPEX Facility site Elasticity SLAs Security Order type Minimum unit Workloads Enterprise Apps New Apps Development/Test Burst 14 capacity Traditional Client CAPEX Client location Client funded Internal client Client defined HW/SW PO Product SKU Private cloud Client CAPEX Client location Client funded Internal client Client defined HW/SW PO Product SKU HP Helion Managed cloud Managed Private HP CAP/OPEX/Lease Client/3 rd party/ HP Client funded Negotiated Client defined HW/SW PO Product SKU/month Managed Virtual Private HP OPEX Client option Base and burst Standard & tiered Standard with options Managed service PO Base commit/monthly Public cloud HP OPEX HP selected Full Published Standard Credit card, internet, PO Hourly

15 ECS Virtual Private Cloud: Offering Overview Managed Private Cloud key characteristics Managed Private Cloud Services Enterprise Cloud Services Self service user Services catalog Infrastructure Platform Applications Industry Security Level Availability KPI Server Types Storage BUR Operating Systems Virtualization System Management Characteristics Antivirus, compliance logging and vulnerability scanning 99.9% availability Virtual machine or physical server SAN storage can be provisioned in blocks from 25GB to 250GB Backup to disk for file system and optional data base (SQL, Oracle) Multiple OS options (Windows, RHEL, SuSE) VMWare HP-Managed Orchestrate O/S License High Availability HP-Supplied, Customer-Supplied System and component redundancy Secure Broker Connectivity Options: Leveraged Internet, Secured VPN, Dedicated Client Circuits Private cloud Bridge private and industry clouds Bridge Public cloud Internet Protocol Portal Internal IP Address, Public IP Address Client portal including catalog access, billing information and reports 15

16 Managed Virtual Private Cloud key characteristics Managed Virtual Private Cloud Services Characteristics Enterprise Cloud Services Self service Portal Services catalog Infrastructure Platform Applications Industry Orchestrate Security Level Service Levels Server Types Storage BUR Operating Systems Virtualization System Management O/S License Disaster Recovery Compliance for HIPPA, PCI, ISO27001, SOC2, IL3, FedRAMP 99.0% to % availability Virtual machine or physical server SAN storage can be provisioned in blocks from 5GB to 2TB Backup options including encryption and off site Multiple OS options (Windows, RHEL, SuSE) VMWare, Hyper-V HP-Managed, Customer-Managed HP-Supplied, Customer-Supplied options Multiple options to provide business continuity and resiliency Secure Broker Connectivity Leveraged Internet, Secured VPN, Dedicated Client Circuits Bridge Bridge Database Management Internet Protocol SQL, Oracle, Sybase Internal IP Address, Public IP Address, Host Name Changes Private cloud Virtual private and industry clouds Public cloud Portal Client portal including catalog access, billing and reports 16

17 A broad set of cloud solutions to solve business needs Applications End-User/ Workplace Cloud IaaS Microsoft Dynamics CRM SAP Oracle Messaging Collaboration Unified Communications Mobility Private Cloud Virtual Private Cloud Continuity Application Transformation Infrastructure Transformation Application Development for Cloud Enterprise-class, managed, highly secure cloud solutions 17

18 Delivery Model Transformation Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

19 Understand where you are and where you want to be Define the cloud maturity of your IT team Level Technical Infrastructure & Architecture Service Management Framework Governance, Finance & Security Culture & Staff Best Practices Processes Service Portfolio Management 5. Cloud Service Provider Cloud services optimized infrastructure Continuous value management organization Value-based pricing Business/commerce centric Value Chain optimized processes Commercial service portfolio management 4. Differentiated service sourcing Automated infrastructure pooling Value-chain based service management Variable IT costing Optimized policy management Customer-centric behavior Service strategy processes Service brokering 3. Service enabled Shared & virtualized infrastructure Integrated information & service management Service-driven policy principles Service focused Process optimization Service portfolio with Operational-Level Agreements and specifications 2. Optimized Consolidated negotiated functionality Enterprise IT information management Negotiated budget/resource management Expert teams Planning processes SLA based technology servic 1. Standardized Enterprise infrastructure architecture Management control by function/element Joint, agreed, budgetdriven hierarchical management Departmental silos & competency heroes Operational processes Defined technology services 19

20 Increasing business-model sophistication How does IT reports its added value? Billing True, formal billing to external parties for a hosted model or public cloud Usually handle payment process (eg, managing credit cards) Chargeback Cost allocation to business units or users via cost transfer Show-back Report of services provided, with or without associated costs, without cost transfer Basic Performance Management Internal planning, for IT only, could include utilization 20 Increasing focus from internal to external

21 Sourcing and Control Sourcing Options INTERNAL CO-LOCATED OUTSOURCED CLOUD IAAS CLOUD PAAS CLOUD SAAS Data Consumer Consumer Consumer Consumer Provider Mixed Applications Consumer Consumer Consumer Consumer Provider Mixed Infrastructure Consumer Consumer Consumer Provider Provider Provider Operations Consumer Consumer Provider Provider Provider Provider Facilities Consumer Provider Provider Provider Provider Provider 21

22 Conclusion Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

23 The HP approach Advise Determine the best cloud choice for each workload Understand how to get best return on your current infrastructure and applications investment Build a business case and high-level plan Define a step-by-step plan for the journey Transform Move from the current state to the future state Transform application workloads (design, build, and test) Design and implement cloud environments Transition workloads and infrastructure into production Manage Provide monitoring and support for hybrid environments with the confidence it is all managed consistently and securely Build on-premises cloud services Traditional Future = Converged Private Managed Interoperable Services, Unified Management via OpenStack Hybrid Delivery Cloud OS OpenStack Architecture Consume off-premises cloud services Public 23

24 Why HP for mission critical workloads? Physical Footprint Needed for running heavy workloads. 80+ data centers for workloads requiring a private cloud, which is ranked #1 by Forrester. 18 VPC sites for workloads requiring elasticity; of which (7) are dual pairs for High Availability. People Footprint Needed to deliver on the necessary cloud services including: advising, transforming, and managing these workloads. We have over 45,000 application resources & 12,000+ ERP professionals. High Availability Active/active cloud sites for up to % SLA uptime needed for mission critical workloads. This means extremely low RTO and RPOs. Data Sovereignty, Data Privacy and Low Latency Regionalized clouds (Private and Virtual Private Cloud ) that clients can chose from to run in-country applications for data sovereignty and data privacy with low latency Compliance 10 Compliance is needed for most key mission critical workloads and include: HIPPA, SOC2, IL3, PCI, FED Ramp, ISO Advisory Services to drive a cloud strategy and roadmap based on client outcomes. This includes ROI analysis and workshops as part of our service offerings. Workload Transformation Depending on workloads, these options include: re-hosting, refactoring, re-engineering, replacing with SaaS applications, and retiring applications. Managed Cloud Services Our clients have the choice of having HP managed some or all of the cloud stack including tasks like: server load balancing, backup and recovery, OS, firewall, network, etc. Cloud OS OpenStack We offer both traditional (Hyper V, VMware) and Cloud OS that enables our clients to run their business on an open platform. Our Cloud OS will enable our clients to move workloads amongst various IaaS platforms (e.g. Private, Virtual Private, Public). SaaS for Tier-2 ISVs We enable ISVs to run their cloud business on HP s cloud(s) including a Storefront and set of SaaS Accelerator services to move, optimize, and managed their workloads. These SaaS applications come into play when clients want to replace legacy applications with SaaS applications

25 Did you know Workload and Cloud Solutions HP Leveraged Data Centers 22 running HP Helion Managed VPC 5 continents with 7 dual pairs Expanding to 24 VPC cloud data centers in next 12 months Total space = 27 US football fields 972,429 sqft used end of program 599,895 sqft available end of program 160 PB (Petabytes) online storage 700 PB of backed-up data 45,000 #1 $Billions 45,000 application resources with 12,000+ ERP professionals private cloud provider largest single HP incremental investment in cloud 1, % Private cloud clients Managed cloud customers 40% of Fortune 100 companies run HP Cloud HP Cloud Journey workshops with 5,600+ attendees Americas HP Helion Managed VPC Commercial HP Helion Managed VPC Public Sector Dual/HA DC Colorado Springs Tulsa HP Helion Managed Continuity Montreal Toronto Orlando Alpharetta Alphaville, Brazil Littleton EMEA Wynyard Doxford (UKPS Q3) Reading Isle d Abeau Grenoble Spain Roosendal, NL Muizen, Belgium Frankfurt Russelsheim Milan Inverno Asia-Pacific Bangalore Keppel DigiHub Sydney (4Q14) Shinsuna Eastern Creek 25

26 Why partner with HP Putting your business first Hybrid Cloud Delivery Models Knowledge of Old Style & New Style of IT Next Steps? Current State Assessment Strategy/Roadmap Advisory & Transformation High Availability, Compliance, Security, Localized Clouds for Data Privacy and Sovereignty Business Case 26

27 Thank You Blog:

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